'Give communities a say': Firms call for privatisation of Scotland's ferry network to be considered

Private ferry operators stand potentially to gain from any privatisation of services.

The First Minister has previously insisted there are no plans to unbundle routes - which would raise concerns that the most lucrative routes would be sold off to private firms.

The Herald revealed earlier this year 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 seen by the Herald - which is examining the Scottish Government-controlled structure that underpins Scotland's ferry service.

Asked if privatisation would give better value to taxpayers, Helen Inkster, managing director of Pentland Ferries, which has been operating for 20 years on a route to Orkney said: "I absolutely agree with unbundling of routes."

She told the Scottish Parliament’s net zero, energy and transport committee: "It would dramatically improve the service provision looking at you know, smaller pockets and smaller areas."

Gordon Ross, managing director of Western Ferries, which operates services between Dunoon and Gourock said that a break-up should be considered and that island communities should have a say.

He also said that other services could be provided on top of what already existed.

"Unbundling has been ruled out," he said. "I think it should be considered."

"I think unbundling would provide opportunities.

"And there are some communities out there that would even want to run their own services.

"The clear steer from the authorities is that the CalMac bundle will remain in place, but I think that going forward, that's it is a community input and the communities should have some say into how best they want their community served."

Consultants had been asked to make 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)."

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.

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 more than soaring from £97m to nearly £340m and delivery over five years late.

A Transport Scotland spokesman said: “Ministers have been clear on multiple occasions, including transport minister’s recent update to Parliament on Project Neptune, that we will not consider unbundling or privatisation of any of the Clyde and Hebrides ferry services routes.”