LORD Willie Haughey has revealed he believes Scotland’s ferry network can best be improved for the long term only through privatisation. His statement follows reports first revealed in The Herald that the global consultancy firm Ernst & Young have been tasked to look into the potential “unbundling” of sailing routes into smaller groups.

Speaking on the Go Radio Business Show with Hunter & Haughey, Lord Willie said: “There’s no doubt the future of Scotland’s ferries is going to be choppy.

“In the past most governments have tried to hive things off or nationalise them: it doesn’t work.

“There’s no doubt for me that the ferry operations would be better run in private hands – but that’s not viable, if you do not also have a government subsidy. Certainly, the proof will be in the pudding.”

Lord Willie was speaking after First Minister Nicola Sturgeon told the Scottish Parliament she had ruled out the prospect of privatisation, adding: “We have no plans whatsoever. We will not privatise our public service ferries and equally we have no plans to split up the CalMac network.

“That is the position of the Scottish Government.”

Ms Sturgeon went on to tell MSPs that during its time in government the SNP had “invested over £2 billion” in ferry services and their associated infrastructure, with further spending of around £580 million having been earmarked by the SNP for the next five years.

With the Scottish Government having been under immense pressure to improve the nation’s ferry services after years of problems with the fleet, Sir Tom Hunter admitted that any viable plans put forward for the future of the nation’s ferry infrastructure would prove to be anything but “plain sailing”.

Also speaking on the popular Go Radio show, he told listeners: “Like Willie, I believe that in private hands things are run better. We should remember the ferries are a lifeline for the islands of Scotland. This is why they need to be run.

“That said, maybe there isn’t private profit in it.

“So there needs to be some form of government subsidy. However having the Government running businesses is a recipe for disaster.

“We need to find a better way for the islanders of Scotland.”

Picking up on this theme, Lord Willie told the show’s host, Donald Martin, editor of The Herald and Herald on Sunday: “I’ve got an idea! Bring in a consultant, a really good one, and absolutely get to the bottom of the cost of each of Scotland’s ferry services.

“Once you have determined what is the actual cost, the straight deal with the private supplier is: you will operate the service while we will then make up the difference in a subsidy because you will run at a loss.

“We need this service so we will make up the shortfall and there is a small amount for you . . . . so it’s actually on a cost-plus basis.

“Here’s a small amount for your profit rather than being told by someone: ‘Here’s how much it is, here’s how much you owe us’. That’s the whole fiasco that we’ve had with the trains.

“I believe, if we have a scientific approach to get to the costings of each individual service to the islands, then work with that private supplier about how we make up the shortfall subsidy, we can say: ‘Here is your net profit on top: a small margin.’.”

Sir Tom agreed, adding: “Willie really knows what he’s talking about here. He works in a cost-plus industry, after all. He’s built Scotland’s biggest private employer on a cost-plus basis.

“So he’s willing to help the Government sit down and work it out. I’m sure they could work it out in an afternoon. So let’s get on with it!”