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The Herald Scotland

Users aghast as CalMac gets uncontested ferries contract 'by default'

But Angus Campbell, chairman of Cumbrae Ferry Users Group said there was concern over the award and that it should have gone to competitive tender. He said he was not convinced that changes that need to be made within CalMac had been made. He gave the example of the Cumbrae Ferry Users Group which has currently lodged a protest with the transport secretary Fiona Hyslop about a sudden 20% reduction in services to and from Great Cumbrae brought in by CalMac. He said of the move: "We urge decision-makers to listen to the views of islanders before irreparable harm is done.' The Ferries Community Board - formed as part of CalMac's previous franchise bid for the contract to be the voice of the communities - told ministers before the award was made that the "majority" view was that the contract should go out to tender to "test the market for best value and encourage innovation and best practice". It said that the response was "very much in the context of real anger and disappointment at how the existing contract was managed and also the decision making at senior management level both at CalMac and Transport Scotland". READ MORE by Martin Williams: And Mr Campbell said he believed the position had not changed. The Community Board raised concerns in December that it "feels very much like business as usual" and that "work has stalled on the accountability to communities, both in the measuring of 'success' for a lifeline service but also in how communities can contribute to and influence decision making. John Daniel Peteranna, of the South Uist Business Impact Group which began a major public protest, in June, 2023, after years of frustration at the islands being impacted by major ferry cancellations said it was time the Scottish Government delivered on making CalMac more accountable. John Daniel Peteranna (Image: NQ) "We believed that the direct award would be made by Fiona Hyslop. What was said that there would also be greater accountability to the people that they are serving. And we are yet to see that. "So how can she do one part without the other part." The group had said a complete root and branch revamp of the services was required with islanders served by CalMac and the ferry operator's staff driving the standards. It has been estimated that the subsidy for the running of over 30 lifeline ferry routes over a new ten-year period would soar to £370m-a-year from just over £120m a year in the last eight-year contract period. CalMac's £975m eight-year contract expired in September 2024 but it was given an extension last year while ministers consider the legal implications over the direction in which it wants to go over the running of lifeline services. The Scottish Government had said that a direct award with no contest from other potential bidders is the preferred option – closing the door on opening routes up to private operators. A final decision after a due diligence process was expected by the summer of last year with an aim to have the new arrangement in place by the following October. The Scottish Government which has been carrying out due diligence over whether it can go ahead with awarding a long term contract to the under-fire ferry operator says that considerable work has been involved in putting arrangements in place for the direct award of the new Clyde and Hebrides Ferry Service contract to CalMac. Another ferry user group official said: "There is a wide belief that the contract for ferry services should be put out to competitive tender, but there has been a fear gathering that the future of lifeline services could be plunged into limbo if firm decisions were not made now. That doesn't mean just giving the contract to CalMac by default. (Image: Newsquest) "Right now we continue to see complaints about service cuts, particularly on South Uist and higher standards have to be reached." CallMac had said it was "confident" that the contract will be extended or renewed under a direct award from October this year. On direct award, a source from the Scottish Government's Transport Scotland agency said: "Such a significant decision requires an appropriate level of governance to allow ministers to be in a position to make that decision formally. As we have made clear with stakeholders during recent engagements - none of the due diligence has highlighted any issue that would prevent a direct award from proceeding." Now Ms Hyslop has said: 'I am pleased to announce that Scottish ministers have confirmed that a direct award of the Clyde and Hebrides Ferry Services contract should be made to CalMac Ferries Limited. This direct award fundamentally changes the ethos of the service by shifting from a commercial arrangement to a model more focused on the delivery of a public service engaged on the particular needs of the communities it serves. 'I fully expect the direct award to be a catalyst for positive change across the Clyde and Hebrides network, based on a more efficient, flexible model of delivery that fully reflects community interests. Discussions will continue with staff, island residents, businesses and communities and trade unions on the arrangements to ensure the services can best meet local needs and wants." Ministers have been contemplating the feasibility of the direct award approach from a financial, operational and legal perspective, and it has been confirmed that the due diligence has not highlighted any issue that would prevent the direct award happening. That's despite the UK government business regulator telling Scots ministers to clearly explain how its refusal to privatise lifeline ferry routes would not result in cheaper costs to the taxpayer as it emerged costs are set to treble. One advantage cited for a direct contract is a saving on the tender process. The Scottish Government has estimated that the costs of tendering the 2016 to 2024 contract was £1.1m. But that included a £439,000 bill for consultancy support. Ms Hyslop added: "The CHFS3 arrangements include improvements, such as a new Benefits Realisation Plan, new and revised Key Performance Indicators, enhanced monitoring and reporting, greater regionalisation through dedicated Area Managers and increased stakeholder engagement. Ongoing collaboration with key stakeholders will be essential in supporting us to achieve a more reliable and robust service. 'Alongside our ongoing investment in infrastructure and an additional twelve new vessels for the network this will improve the overall resilience and capacity of these services, as set out in the recently published Islands Connectivity Plan. 'Transport Scotland is now working closely with CalMac Ferries Limited on the necessary arrangements for the commencement of the new contract on 1 October 2025. I will ensure that Parliament is kept up to date on progress with those new arrangements.' Former First Minister Humza Yousaf, when he was transport minister, indicated in 2017, the year after CalMac was last awarded the Clyde and Hebrides Ferry Services contract that CalMac should get a direct award. Duncan Mackison, CalMac's chief executive said: "Everyone at CalMac is committed to delivering a resilient, flexible ferry service which is tailored to the needs of the diverse and vibrant island communities we serve. We will play a leading role in contributing to the prosperity of islands on Scotland's west coast, with the approach of delivering a public service rather than a commercial contract. 'During the extension period for the current contract, we recognised the need for change and are already driving change through the expansion of local teams, enhanced community engagement and improved responsiveness to local requirements. 'This work will allow us to hit the ground running when the new contract starts and, with six major and seven small vessels joining the fleet between 2025 and 2029, our capability to deliver a resilient, reliable service for all across the Clyde and Hebrides will grow.'