Islanders support debate over ferry network break up as the FM rules it out

But Nicola Sturgeon yesterday insisted there are no plans to privatise lifeline ferry services to Scotland’s island communities.

The First Minister also ruled out breaking up the CalMac ferry network amidst concerns about a possible “unbundling” of routes into smaller groups. It raised concerns that the most lucrative routes will be sold off to private firms.

Ms Sturgeon spoke out after the Herald revealed that global consultants Ernst and Young had been tasked by ministers to look into the "unbundling of routes into smaller packages" as part of options for "decentralisation".

This led to concerns over the future for state-controlled ferry operator CalMac.

The details emerged in a brief given to Ernst and Young for Project Neptune - which is examining the Scottish Government-controlled structure that underpins Scotland's ferry service.

Transport Scotland 'consultancy requirements' documents revealed that Ernst and Young are looking beyond whether the structure is "fit for purpose".

It asks the consultants to make a recommendation of a "potential route/structure for direct award of ferry services contract that Scottish ministers could consider as part of a future strategy".

It also ask the consultants to "include an analysis of the challenges and opportunities associated with options for decentralisation (unbundling of routes into smaller packages)."

It goes on: "Views are sought on whether corporate structures would allow direct award of contracts in future. However, no advice is sought on the merits of otherwise of that approach."

But the Western Isles council said that there should be a debate on the way forward saying that times had changed in the light of recent experiences with the ferry company.

Islanders have been concerns about the state of Scotland's ageing ferry services and a series of breakdowns and cancellations over the busy summer period.

The state-owned ferry operator CalMac is still awaiting a new lifeline vessels MV Glen Sannox and Hull 802 which are still languishing in the now state-owned Ferguson Marine shipyard, with costs of their construction more than doubling from the original £97m contract and delivery over four years late.

"Where in the past, sections of our community have been extremely concerned at any suggestion to break up the Clyde and Hebrides network, it has been of equal concern in recent years that the views of island communities are not listened to by any of the central belt headquartered bodies which are responsible for our ferry service provision," said the council, which represents communities on Lewis, Harris, North Uist, Benbecula, South Uist and Barra.

"With this in mind a healthy discussion on options for delivering a better ferry service to our islands and ensuring that island needs are placed front and centre with economic benefits maximised for islands would be a welcome step in the right direction.

"While the case will be made for retention of the existing Clyde and Hebrides ferry service bundle with a proper consideration of the strengths and benefits that brings, this should not preclude other options being looked at and the merits of these being tested against the large single bundle."

It indicated that the advantages of a Western Isles bundle would be that the operations and management would be based within the islands "and there would be an increased focus on recruiting crew locally".

"The Board of Directors could be made up of people who live and work in the Western Isles. This already happens for the board of Orkney Ferries which operates the internal ferries within Orkney and there is the same competence and experience present in the Western Isles to do the same," the authority said.

The Mull and Iona ferry committee added that it was "firmly of the view that the potential merits of de-bundling the Clyde and Hebrides ferry contract need to be explored".

"Like Comhairle nan Eilean Siar, we are not convinced that the current set-up always serves islanders or taxpayers best. Also like those in the Western Isles, we feel that far too often decisions are made far away in Edinburgh, Gourock and Port Glasgow by agencies that have little understanding of island life, and little incentive to make things better," the committee said.

"As well as removing the bizarre split of vessel owning and vessel operating companies, there is an argument that a single huge contract does not deliver the best results for either the taxpayer or islanders. Putting individual routes (or small parcels of routes) out to tender would make it easier for smaller operators to pitch," it said.

"Not only would a community-controlled ferry company have much greater accountability to the communities served, but it could also return significant operating profit to the islands."

The First Minister ruled out privatisation after West Scotland MSP Katy Clark asked Sturgeon for the government to “make a commitment to keep ferry services in public ownership”.

The SNP leader told said: “We have no plans whatsoever to privatise public service ferries."

Ms Sturgeon said that ensuring ferry services are delivered through public contracts gave them “control over service levels, timetables and fares” on the routes operated by CalMac on the Clyde and Hebrides routes and by Serco NorthLink to the Northern Isles of Orkney and Shetland.

The Scottish Labour representative, who who raised the issue at First Minister’s Questions, said she was pleased the Scottish Government “seems to have ruled out privatisation”, as she claimed a lack of investment in ferry services since the SNP came to power in 2007 had resulted in more than 1000 sailings being delayed because of mechanical issues in the past five years.

Ms Sturgeon replied: “I didn’t seem to rule out privatisation, I did rule out privatisation.

“Let me say it again. 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.”

Ten years ago transport minister Keith Brown said "no compelling case" had been made that "tendering individual routes or unbundling the current contract" would lead to greater benefits.

This was repeated by then First Minister Alex Salmond who told MSPs in 2012 that the "case for unbundling, in our estimation, has not been made".

At that time, there was concern that it would hive off CalMac’s four busiest routes, as suggested in a 2010 consultation on future ferry services.

The concerns were that the Ardrossan to Brodick on Arran, Wemyss Bay to Rothesay on Bute, Oban to Craignure on Mull and Largs to Cumbrae were to be split off as CalMac's contract expired the following year.