LIFELINE ferry services to the Orkney and Shetland islands will be taken over by private firm Ser-co after ministers announced it had won a six-year contract from state-owned rival Northlink.

Transport Minister Keith Brown said the award of the £243 million contract would avoid ferries being out of service for long periods of time, ensure goods were delivered on time and improve passenger service.

Serco, which was formally named as preferred bidder yesterday, is expected to take over the service from Aberdeen to the islands and the shorter crossing between Scrabster to Stromness in summer.

Mr Brown said the contract would deliver "value for money" for the taxpayer, adding: "Passengers will see improvements to the journey experience with improved ticketing arrangements, premium reclining seats added on board overnight services, and improved catering, hospitality and customer care."

However, the move was attacked by Rail Maritime and Transport union general secretary Bob Crow, who said: "This privatisation of key ferry ser-vices in the name of greed and profit is a bitter kick in the teeth for both the Scottish people and the ferry staff."