This item was published during the term of a previous administration that ended in April 2007
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New ferry services for Clyde and Hebrides
27/06/2002
New Clyde and Hebrides ferry services were announced today as part of consultation on tendering the services currently operated by Caledonian MacBrayne (CalMac).
The Executive consultation is accompanied by the draft Invitation to Tender and includes the Service Specification. Together they outline the Executive's plans to ensure modern and reliable lifeline ferry services at affordable fares.
CalMac currently operates a fleet of 29 ferry vessels providing passenger, vehicle and shipping services to the islands off the West Coast of Scotland and in the Firth of Clyde. The services they provide are to be put out to competitive tender to comply with European law. All approved services currently operated by CalMac will be maintained and CalMac's fares are to be taken as the maximum future fares, subject to increases in line with inflation.
New approved services will include Mallaig-Armadale winter vehicle service, Tarbert-Portavadie winter service, Sound of Barra service, Kilchoan-Tobermory winter passenger service and enhanced services from Oban and across the Sound of Harris.
The Scottish Executive will create a publicly owned vessel owning company (VesCo) to ensure efficient use of the existing fleet and to procure new vessels. VesCo will also own CalMac's piers and harbours and the operator will act as VesCo's agent by managing certain harbour functions in return for management fees.
Launching the consultation Mr Macdonald said:
"The Scottish Executive is committed to maintaining and enhancing our lifeline ferry links. The services currently provided by CalMac in the Hebrides and the Firth of Clyde are vital to the economic and social well being of island and remote mainland communities.
"Our commitment is backed with record levels of public investment and we have already commissioned new vessels to allow for new and enhanced services on the Sound of Barra, Sound of Harris and islands served from Oban.
"To ensure that best value for public support is achieved and to comply with EU rules we are today publishing draft proposals for tendering. Following our discussions with the European Commission the current network will be tendered as a whole. CalMac will be allowed to compete to operate the routes and the bid will be evaluated transparently and equally with bids from other potential operators.
"I am pleased that the European Commission accepted our arguments for mainland to mainland routes originally ruled out by EC rules, and for continuing the approved passenger-only service for Gourock-Dunoon.
"However, it is clear that we must comply with EC rules that prevent subsidies for a vehicle service on this route, as there is an unsubsidised commercial operator running a vehicle service. By connecting Dunoon town centre and the Gourock railhead the approved passenger-only service will provide an integrated network of public transport solutions.
"The new approved services I am announcing today help to fulfil the commitment we made in our Transport Delivery Report to address missing links in Scotland's transport network."
Copies of the documents will be sent to relevant local authorities, SPT, transport organisations, harbour authorities, relevant Chambers of Commerce, Scottish Enterprise and Highlands and Islands Enterprise, MSPs, MPs, MEPs, Caledonian MacBrayne, Shipping Services Advisory Committees and a number of other operators and organisations.
The consultation period will close on 27 September 2002. It is planned that the tendering process will be completed in early 2004, with contract handover later that year although this will depend on progress with restructuring CalMac.
A Prior Information Notice will be published in the Official Journal of the European Commission to alert operators to proposals and to ensure that they can participate in the consultative process.
All the services included in the tendering proposals are deemed to be of a lifeline nature and require Government support to keep them in operation.
EC guidelines (97/C205/05) define a Public Service Obligation as "any obligation imposed upon a carrier to ensure the provision of a service satisfying fixed standards of continuity, regularity, capacity and pricing, which standards the carrier would not assume if it were solely considering its economic interest".
On 27 April 2000 Scottish Ministers announced the publication of the consultation paper 'Delivering Lifeline Ferry Services - Meeting European Union Requirements'. This explained that the Scottish Executive would be amending the current arrangements in the light of EC requirements and sought views on options for tendering ferry services in line with EU rules. After considering the responses the Executive submitted, the Commission cleared the way last Novemebr for the ferry network to be put out to tender as one single bundle.