The transport minister said there are no plans to break up Scotland's ferry network despite ministers commissioning a report to look into the possibility.

Jenny Gilruth insisted there were no privatisation plans as concerns surfaced in a Scottish Parliamentary motion which express "alarm" that the Project Neptune analysis by global consultants Ernst & Young was looking into the possibility.

It comes after the Herald revealed that Ernst & Young had been tasked by ministers to look into the "unbundling of routes into smaller packages" as part of options for "decentralisation" leading to concerns over the future for state-controlled ferry operator CalMac.

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.

The Competition and Markets Authority has previously expressed concern about the "potential risks" of state control over the way ferries are operated, run and paid for.

There has been concern that the service is "cocooned" inside four levels of Scottish Government control with the Transport Scotland agency as funders, the procuring and vessel owning company, Caledonian Maritime Assets Ltd (CMAL), Calmac and the nationalised shipbuilders Ferguson Marine (Port Glasgow).

Transport Scotland 'consultancy requirements' documents revealed that Ernst & Young were 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".

The Herald:

It also asked 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."

It came ten years after 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.

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.

Ms Gilruth said: "This government has no plans to privatise or unbundle and to date this has ensured control over service levels, timetables, and fares and contracts. But I am acutely aware of the need to deliver a service for our island communities which works and I'm not clear that that is what is currently being delivered."

And she pledged that the Operation Neptune report woujld be published after the local government elections and while she could not commit to a precised date said she "recognised the need for transparency on this".

The Herald:

She added: "There are things we need to improve. I give an undertaking to all members that I'm keen to work with every political party in here to ensure that we deliver a service that best meets the needs of our island communities."

The concerns emerge in a motion debate secured by Scottish Labour West Scotland MSP Katy Clark who has called on the Scottish Government to “honour its commitment” to ensure the ferry services services are permanently run in the public sector.

She said: "I am arguing against the fragmentation of the current structure, that the ferries, CalMac, CMAL and the ports should all be in public ownership. That would enable better decision making."

But Graham Simpson, the Scottish Tories' shadow transport minister insisted you could introduce other operators, like Western Ferries "who run a very good service already".

"We need to put islanders first, and be open to new ideas," he said.

It comes as the state-owned ferry operator CalMac is having to handle an ageing ferry fleet with new lifeline vessels MV Glen Sannox and Hull 802 still languishing in the now state-owned Ferguson Marine shipyard, with costs of their construction rising from the original £97m contract to at least £250m and delivery over five years late.