GOVERNMENT-owned ferry operator David MacBrayne has said it can now press ahead with building a new ticketing system after winning £1.2 million in damages from the IT company that had originally been tasked with the job.

The firm, which operates CalMac Ferries, had hoped to have a new ticketing system in place for winter 2015 as part of a business modernisation project put in place to help it retain the contract for the Clyde and Hebrides service.

In August 2014 it hired London firm Atos IT Services to implement the new ticketing system, but the project was suspended a year later after a number of “milestones” were missed.

Although the two sides attempted to resolve the issue through mediation the ticketing project was abandoned completely in the middle of 2016 and David MacBrayne launched proceedings in the Court of Session to recover the money it had already spent on it.

In a ruling handed down yesterday Court of Session judge Lord Doherty said that as Atos had breached the terms of its contract with David MacBrayne the ferry operator was entitled to be repaid the £1.2m it had “wasted” on the project.

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A spokesman for David MacBrayne said the ruling vindicated its decision to abandon the ticketing project part way through.

“We are delighted that the court agreed with our view that Atos IT failed to deliver on the contract we entered into with them, and the £1.2m compensation awarded plus costs is vindication of the course of action we chose to take,” he said.

Lord Doherty rejected a counterclaim that Atos filed against David MacBrayne in a bid to recover the £3.3 million it said it would have earned had the project completed.

While Atos had alleged that David MacBrayne was to blame for the delays to the project, Lord Doherty said that argument “smacked very much of being a retrospective attempt to deflect blame for its failures to achieve [agreed] milestones”.

As the case was heard in the Outer House of the Court of Session it is possible that Atos could appeal it to the Inner House, although it is not clear whether it intends to do that. A further hearing has been scheduled for the next few weeks to establish costs and Atos will have 21 days after that in which to lodge an appeal.

An Atos spokesman said: “We are disappointed by the judgement, but as this is still a commercial matter that is under due legal process, we cannot comment further.”

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Despite the fact the case could be appealed by Atos, the David MacBrayne spokesman said the firm is now focused on finally replacing the Compass ticketing system it has been using for the past 25 years.

“Putting in place a modern, fit for purpose ticketing system is a priority for us and while this unfortunate experience has been a setback, we can now get our plans to improve our ticketing services for customers firmly back on track,” he said.

According to the court judgment David MacBrayne was in 2015 “required to negotiate, and pay a very substantial fee for, a temporary extension of Compass".

That came after the business had slumped to a pre-tax loss of £2.6m in the 2014/15 financial year, with the firm at the time saying that investment in technology had had a major impact on its bottom line.

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When announcing the results in 2015 chairman David McGibbon said that “increased investment in developing new technology to improve the customer experience, through more flexible online ticketing and digital platforms” had contributed to the loss.

Despite not having the new ticketing system in place, David MacBrayne, which had faced stiff competition from private company Serco, won the £1 billion tender for the Clyde and Hebrides service, with its new eight-year contract beginning in October last year.