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STV News
26-05-2025
- Business
- STV News
Island businesses say 'no sign' of promised £4.4m amid ferry crisis
Businesses on South Uist are calling on the Scottish Government to come good on their promise of £4.4m of resilience funds for those worst affected by the ongoing ferry crisis. The Government's original announcement came one month ago, the day before transport minister Fiona Hyslop travelled to the island to attend South Uist Business Impact Group's (SUBIG) crisis meeting, where over 50 businesses presented testimony on how the ferry crisis has affected them in the hopes of discussing a way forward. However, since the meeting, the business group has heard no further mention of the fund. John Daniel Peteranna, director of local community landowner Storas Uist, said: 'Uist has suffered a severely reduced ferry service all this year. 'Island businesses stand ready to work with the government on how the fund might work, but are disappointed at the government's slow approach. 'This fund is urgently needed to ensure island businesses can survive until the ferry service improves.' The call comes after South Uist's ferry, the Lord of the Isles, returned to its home port of Lochboisdale for the first time since Hogmanay. Saturday saw the first service between South Uist and its 'usual' mainland port of Mallaig for almost six months. Loti is the only 'large' ferry in CalMac's fleet capable of entering Mallaig harbour while also able to travel out to South Uist. At 37 years old, it is one of the oldest in the fleet and prone to breakdowns. Last September, a fire in the engine room during the crossing led to its removal from service for weeks, further disrupting the island's economy. The return of the island's ferry also means the island's full summer timetable can finally commence, albeit two months later than planned. This shorter route to Mallaig, only three and a half hours instead of the five and a half hours to Oban that businesses, families and other travellers have endured for the past six months, also means South Uist will benefit from two sailings a day on Mondays, Thursdays and Saturdays in the full summer timetable. But, as the MV Lord of the Isles slunk into her berth on Friday evening, shrouded by squalls of long absent rain, islanders know that this full summer timetable will last for only two weeks. For most of June and July, CalMac is cutting one service a week to the island and redirecting two others to distant Oban instead of Mallaig. 'Island businesses and families need a timetable they can rely on', Mr Peteranna added. 'We shouldn't live in fear of our service being cut every time there's a problem somewhere else in CalMac's fleet. We call on the government to present the details of the resilience fund.' With its regular ferry returning from helping out on routes to islands CalMac prioritises above South Uist, there is cautious optimism from hospitality and other businesses that something might yet be made of the summer season. A Scottish Government spokesperson said: 'Scotland's island communities and businesses face many challenges, we recognise the need to provide additional targeted support and that is why we have allocated an initial £4.4m to establish a resilience fund to support island businesses. 'People and businesses need to have confidence in ferry services running reliably and frequently to support their livelihoods, among many other factors and it is clear that any delays or maintenance to vessels can create real difficulties and we are determined to do everything we can to support islands, local businesses and employers through these challenging times. 'We are currently working at pace with partners to refine eligibility criteria and so that we can open for applications as soon as possible.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
09-05-2025
- Business
- 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.'
The Herald Scotland
30-04-2025
- Politics
- The Herald Scotland
CalMac under fire from 'sack board' island protest group over ferries
South Uist has been particularly badly hit by a shortage of vessels on lifeline ferry routes and has been served by 37-year-old veteran MV Isle of Mull which is restricted to just 45 passengers since the start of the year ,while its regular ship - MV Lord of the Isles covers elsewhere. But despite a "crisis summit" called by an island business group attended by transport secretary Fiona Hyslop over two weeks ago and in advance of the May Day bank holiday, they say there has been no movement in dealing with an immediate lack of service. For several years South Uist has regularly been the victim of cuts due to ferry breakdowns and delays in annual maintenance which climaxed in losing their service completely for nearly the whole of June, 2023. It drew the short straw because it is felt according to the way CalMac runs its lifeline service disruption management, that the least number of people will be affected if their allocated vessel, MV Lord of the Isles, is withdrawn to help out elsewhere. And John Daniel Peteranna of the South Uist Business Impact Group (SUBIG) which started the protest said: "We are still penalised for living in Uist. " Video: Flashback to the South Uist ferry protest of the summer of 2023. CalMac said that they are investigating options for improvement to the service. Concerns had previously emerged that there has been a failure to conduct island communities' impact assessments or consult over the method used to decide how services are axed due to breakdowns of Scotland's ageing ferry fleet in breach of the Scottish Government's ground-breaking Islands (Scotland) Act made law in 2018. The catalyst for action over the management system came when an estimated 500 residents, 200 cars, 40 vans and 20 lorries converged on Lochboisdale – the port which links South Uist to the mainland – two years ago to protest about the cancellations. Then CalMac chief executive Robbie Drummond then made a series of what some called "PR visits" to the island where apologies were made and actions explained. One South Uist public meeting attended by some 250 "unanimously" lodged a vote of no confidence in the ferry company angry at the island's treatment. Islanders were told by the former transport minister Kevin Stewart, three days before he resigned his position the same summer that he had ordered a review into the 'matrix' methodology used to deal with ferry shortages to ensure that it takes into account "the actual economic impacts to the islands". It was expected to ensure that South Uist did not become the default option for cuts. But the South Uist Business Impact Group which started the protest and called for the summit do not believe that it has made any difference. The MV Lord of the Isles continues to be used as a relief vessel for other islands while the 32-year-old MV Caledonian Isles has been out of service since the start of January last year, the MV Hebridean Isles had to be retired and other vessels have had problems identified during winter overhauls. While concerns continue about a lack of spare capacity for emergencies, it was suggested that South Uist swap boats so that it gets the regular Colonsay ship MV Clansman for just one day to help make up for the losses. But the group say that so far there has been no response from CalMac. Mr Peteranna of the impact group, who previously called for boardroom heads to roll at CalMac over the way services were being handled said: "The visits back then have changed nothing. "Now, the minister has told CalMac that they need to find a solution. We have been told yes, yes and yes. But again nothing has changed. "We are not asking for anything that isn't reasonable." He said that MV Clansman, which can carry 638 passengers and 90 cars, has at least a once-a-day services to Colonsay, which, according to the 202 Scottish Island Survey has a population of 104. The resident population of South Uist is over ten times that at1442. The current timetable for services to Colonsay shows there is a daily return service to and from the mainland on Monday, Tuesday, Thursday, Friday and Sunday and two return journeys service on a Wednesday and Saturday. "They are ignoring us," said Mr Peteranna. "We don't see that there is any disruption from doing this. But they don't appear to be listening to options while May and June are the busiest months. MV Finlaggan (Image: CalMac) Meanwhile, the group say that while MV Finlaggan has been delayed in dry dock, it means that the reduced capacity service provided by MV Isle of Mull will be extended well into the peak holiday season at a vital time for island businesses. Read more from Martin Williams: They have now written to CalMac asking again that they now put in place an increase in capacity between Lochboisdale and Oban, pointing out that it "should not be one island that suffers all the time". Ms Hyslop had said there was a longer-term solution with funding earmarked for another new large ferry to serve the Western Isles. She said money was allocated in the 2025/26 budget to replace the ageing MV Lord of the Isles, which serves South Uist, within "about three years". MV Lord of the Isles, which normally sails from Lochboisdale on South Uist to the mainland port of Mallaig, is currently serving other routes and will not return until mid-May. MV Isle of Mull is instead sailing from the island to Oban, but a fault with its emergency evacuation chutes means it is only permitted to carry 45 passengers instead of the 900 it can normally accommodate. The Scottish government also announced a £4.4m "resilience fund" targeted" at island communities worst affected by disruption but that South Uist would "definitely benefit". During the 1980s and 90s CalMac would typically purchase a new ship every few years but since 2007 the procurement role has been taken on by a separate state-owned company, Caledonian Maritime Assets Limited, which owns the ferries, ports, harbours and infrastructure. MV Glen Sannox (Image: Jane Barlow) Problems over the construction of two new gas-powered ferries Glen Sannox and Glen Rosa ordered in 2015 contributed to a slowdown in ferry replacement - and much of CalMac's large ship fleet is now beyond its expected operational life. A CalMac spokeswoman said: 'At the summit on South Uist, we made a commitment to review what we could to improve the current service, and we stand by that. We've been investigating options, some of which were made at the summit, in the context of wider network deployments and dependent on vessel moves,as major units departed and entered their overhaul period. 'This means considering things like vessel and port interface and displaced traffic on other routes, and it takes time to work through possible options. We expect to provide a formal update on what's possible later this week. 'The delay to the delivery of MV Isle of Islay, whilst due to events outside of anyone's control, is having a real knock-on effect on our vessel deployment. Were she in service, one of MV Isle of Arran or MV Lord of the Isles – which usually serves South Uist – would be free to deploy elsewhere. 'We made a commitment to bring SUBIG into the Western Isles Ferry Group and they have already attended the most recent meeting. 'In the meantime, the South Uist community will be updated on our progress, and we hope to offer ways in which we can ease the constraints on their service as soon as possible.' A Transport Scotland spokesman said: 'We understand the impact that delays and disruption have regrettably had on our island communities and this government fully recognises the key role ferry services play in supporting the economic, social and cultural development of island communities. 'Alongside CalMac, we continue to monitor the situation closely, particularly in terms of the impact on those island communities most affected and will continue to constructively engage with islanders to ensure we deliver a sustainable ferry service that is fit for the future. 'Ministers and officials continue to support and impress upon CalMac to ensure all available options are being explored to return the vessels to service and support our island economies. Scotland's island communities face distinct challenges, not least in terms of their economic and social resilience, which is why this Government has identified an initial £4.4 million to establish a resilience fund to support island businesses, with a view to targeting areas and sectors of most acute need.'
Yahoo
14-04-2025
- Business
- Yahoo
Minister to attend 'crisis' meeting on Uist ferries
Scotland's transport secretary, Fiona Hyslop, is to attend a "crisis" meeting later, called by islanders on South Uist over disruption to ferry services. The direct route to the mainland from the second largest island in the Outer Hebrides is currently served by a ship restricted to carrying just 45 passengers. A business group said the island's economy had been suffering from years of unreliable ferry services due to lack of investment. On the eve of the meeting, the Scottish government announced it was creating a £4.4m resilience fund to help islanders during the current difficulties. 'Exceptional' pressures force CalMac fleet reshuffle CalMac cuts passenger numbers over safety failure South Uist has been under particular pressure recently as state-owned ferry operator CalMac struggles with a shortage of ships while it awaits replacements for its ageing fleet. Winter maintenance has uncovered new problems with several vessels, forcing CalMac to rejig its schedules and move ferries onto different routes. MV Lord of the Isles, which normally sails between Lochboisdale on South Uist and the mainland port of Mallaig, is deployed elsewhere until mid-May. A replacement vessel, MV Isle of Mull, although designed to carry 900 passengers is currently restricted to just 45 - the number that can fit in the traditional lifeboats. This is because of a fault with its emergency evacuation chute system. Instead of sailing to Mallaig, it travels to Oban, 85 miles away from the normal scheduled port, which adds more than four hours to the crossing time. John Daniel Peteranna, from the South Uist Business Group which is hosting what it calls a "ferry crisis summit", said the island's economic potential in areas like seafood, distilleries and tourism was being stifled. He said businesses had suffered five years of reputational damage due to unreliable transport links to the mainland. "When we set up the business group three years ago we didn't think things could get any worse but they have surprised us," he told BBC Scotland News. The meeting will be attended by local MSPs as well as representatives from CalMac, although the operator's chief executive and chairman will not be present. The business group will be asking for more details on the resilience funding and whether more can be done to improve services until the return of Lord of the Isles in May. It will be also be seeking an update on plans to replace the 36-year-old vessel and upgrade the harbour facilities at Lochboisdale. The Scottish government said it was working out eligibility criteria for the resilience funding, and this would be discussed at the meeting. Islands Secretary Mairi Gougeon said: "We know that the current situation of delays and ongoing maintenance to some vessels has created real difficulties for some. "We are determined to do everything we can to support islands, their local businesses and employers through these challenging times." CalMac said it had put on extra sailings from South Uist to Barra, which offers an alternative route to Oban on the mainland. The firm's chief operating officer Diane Burke will attend the meeting. A spokesperson said: "We recognise the current challenges with our major vessel fleet has led to disruption on a number or routes, particularly on South Uist. "We've been in regular contact with local representatives throughout this period of disruption to ensure the community is kept informed about the service." Two ageing vessels MV Hebrides and MV Caledonian are currently undergoing repairs, while MV Hebridean Isles was retired from service late last year. Ferries procurement body CMAL is awaiting the arrival of the first of four new CalMac ferries being built in Turkey, but these are delayed and the first vessel MV Isle of Islay is not expected until later this summer. The long-delayed MV Glen Sannox, built by the Ferguson Marine shipyard, is now in service on the Arran route but its sister ship MV Glen Rosa is still under construction and a new update on its delivery is awaited. CMAL said the redevelopment of Lochboisdale and the replacement of MV Lord of the Isles were both dependent on funding approval by Transport Scotland. 'Island ferry problems meant my child could not travel' 'Exceptional' pressures force CalMac fleet reshuffle CalMac cuts passenger numbers over safety failure
BBC News
14-04-2025
- Business
- BBC News
Minister to attend meeting over South Uist ferry 'crisis'
Scotland's transport secretary, Fiona Hyslop, is to attend a "crisis" meeting later, called by islanders on South Uist over disruption to ferry direct route to the mainland from the second largest island in the Outer Hebrides is currently served by a ship restricted to carrying just 45 passengers. A business group said the island's economy had been suffering from years of unreliable ferry services due to lack of investment. On the eve of the meeting, the Scottish government announced it was creating a £4.4m resilience fund to help islanders during the current difficulties. South Uist has been under particular pressure recently as state-owned ferry operator CalMac struggles with a shortage of ships while it awaits replacements for its ageing fleet. Winter maintenance has uncovered new problems with several vessels, forcing CalMac to rejig its schedules and move ferries onto different routes. MV Lord of the Isles, which normally sails between Lochboisdale on South Uist and the mainland port of Mallaig, is deployed elsewhere until mid-May. A replacement vessel, MV Isle of Mull, although designed to carry 900 passengers is currently restricted to just 45 - the number that can fit in the traditional lifeboats. This is because of a fault with its emergency evacuation chute system. Instead of sailing to Mallaig, it travels to Oban, 85 miles away from the normal scheduled port, which adds more than four hours to the crossing time. John Daniel Peteranna, from the South Uist Business Group which is hosting what it calls a "ferry crisis summit", said the island's economic potential in areas like seafood, distilleries and tourism was being stifled. He said businesses had suffered five years of reputational damage due to unreliable transport links to the mainland. "When we set up the business group three years ago we didn't think things could get any worse but they have surprised us," he told BBC Scotland News. The meeting will be attended by local MSPs as well as representatives from CalMac, although the operator's chief executive and chairman will not be business group will be asking for more details on the resilience funding and whether more can be done to improve services until the return of Lord of the Isles in will be also be seeking an update on plans to replace the 36-year-old vessel and upgrade the harbour facilities at Lochboisdale. The Scottish government said it was working out eligibility criteria for the resilience funding, and this would be discussed at the Secretary Mairi Gougeon said: "We know that the current situation of delays and ongoing maintenance to some vessels has created real difficulties for some. "We are determined to do everything we can to support islands, their local businesses and employers through these challenging times." Vessel shortage CalMac said it had put on extra sailings from South Uist to Barra, which offers an alternative route to Oban on the mainland. The firm's chief operating officer Diane Burke will attend the meeting. A spokesperson said: "We recognise the current challenges with our major vessel fleet has led to disruption on a number or routes, particularly on South Uist. "We've been in regular contact with local representatives throughout this period of disruption to ensure the community is kept informed about the service."Two ageing vessels MV Hebrides and MV Caledonian are currently undergoing repairs, while MV Hebridean Isles was retired from service late last year. Ferries procurement body CMAL is awaiting the arrival of the first of four new CalMac ferries being built in Turkey, but these are delayed and the first vessel MV Isle of Islay is not expected until later this summer. The long-delayed MV Glen Sannox, built by the Ferguson Marine shipyard, is now in service on the Arran route but its sister ship MV Glen Rosa is still under construction and a new update on its delivery is said the redevelopment of Lochboisdale and the replacement of MV Lord of the Isles were both dependent on funding approval by Transport Scotland.
