The first stage of the controversial process of putting Caledonian MacBrayne’s ferry routes out to tender was "fair, open and transparent", according to a panel set up by the Scottish Government to scrutinise it.

The publicly owned CalMac is bidding to continue to run its 26 Clyde and Hebrides services for another eight years from October next year.

But it faces competition from a private sector rival for the £1billion contract. Serco Caledonian Ferries Limited is an offshoot of the multinational Serco, which already has a company running the publicly subsidised lifeline services to Orkney and Shetland.

Ministers established the Clyde and Hebrides Ferry Services (CHFS) Procurement Reference Panel to provide assurance that nothing was being done that could be perceived as discriminating against either of the bidders.

The panel comprises representatives of island communities, local authorities, the unions, tourism interests, disabled groups and NFU Scotland. It has now examined the invitations to tender (ITT).

Minister for Transport and Islands Derek Mackay said:

“From the outset, we have pledged to make this a fair, open and transparent procurement process. The publication of both the first report from the Independent Procurement Reference Panel and the Interim ITT underlines that commitment."

He said the report concluded that the terms of the Initial ITT process were fair, open and transparent to both bidders. The Panel has held two meetings, and further meetings are scheduled to take place to review and provide comment on both the Interim ITT and Final ITT documents.

“The Interim ITT, and beyond that the Final ITT, have a slightly revised timeline, which will ensure both CalMac Ferries Ltd and Serco Caledonian Ferries Ltd are provided with all the information they require to compile their respective submissions. However, this will have no impact on the final award of the contract, which remains on schedule for the end of May 2016. The revised timetable is a consequence of the detailed and extensive consultation undertaken to date,” Mr Mackay said.