News / Ferry contract faces legal challenge
THE FUTURE of the northern isles ferry service has been thrown into doubt after one of the companies bidding for the six year contract has challenged the decision in the Court of Session.
The Scottish government is now considering the impact on its plans to sign the six year deal to operate passenger and freight vessels between Shetland, Orkney and Scotland next week.
Meanwhile Shetland Islands Council has written to Transport Scotland seeking assurances urgently that the freight service will not be reduced.
On Friday Streamline Shipping Group alerted Transport Scotland that they had submitted a legal challenge the £243 million contract that was to be sealed with multinational service company Serco on Tuesday.
Mr Crichton said that information they had received since the successful bid was announced last week showed the service their company Shetland Line was offering was far better.
“The feedback we have received demonstrates that the Shetland Line bid was judged to have been of much higher quality than that considered most economically advantageous by ministers,” Mr Crichton said.
“The Shetland Line has bid a service which will meet expectations and demand. It is our understanding that the bid which the Scottish government is planning to accept will not meet such needs or expectations.
“In essence, the Scottish government is not comparing like with like. We feel that our challenge to the tender process is well founded.”
On Friday evening Transport Scotland were considering their response to the move before making a statement.
Shetland MSP Tavish Scott reacted by saying the increasing uncertainty over the islands’ lifeline service was “extremely worrying”.
“Shetland will be looking for clarity from the government as quickly as possible as to what’s going on,” he said.
Announcing the successful tender on 4 May, the day of the local government elections, Scottish transport minister Keith Brown said: “The Scottish government is absolutely committed to providing the very best ferry services to Orkney and Shetland to meet the needs of residents, business and visitors alike.
“The needs of vital time sensitive freight exports like fish and seasonal livestock and vital imports like supermarket goods will be met, and the services available for passengers will be improved.”
The government also described the tendering process as “open and transparent” despite criticism within the northern isles that everyone participating in the process had signed a gagging order, which meant council officials could not discuss it with local councillors.
On Friday evening Shetland Islands Council’s chief executive Alistair Buchan wrote to Scottish transport minister Keith Brown seeking assurances the freight service to the islands would not be cut.
Mr Buchan said that the council has been approached by businesses and members of the public concerned about the lack of detail in the specification.
“The principal issue is about the detail of the freight service and concern that any reduction in this area would fail to meet the current needs of Shetland’s industries both in terms of exports and imports,” he wrote.
“Further to this, as we look at the opportunities likely to develop in Shetland during the period of this contract, there is even greater concern about the ability to meet future needs if the service is reduced.”
In his letter he asked the minister to give the matter his urgent attention due to the short time period before the Serco was due to be signed on 15 May.
Streamline has been operating a cargo service to the northern isles since 1984.
Serco currently only operates one passenger ferry which gives free passage across the River Thames at Woolwich, London.
However it is a huge company listed on the London Stock Exchange as providing government services, which include responsibility for more than 120 vessels on behalf of the Royal Navy.
It runs train services in the UK and Australia, and operates the Scatsta airport on behalf of the oil industry along with air passenger control in Coventry, the USA, Canada and United Arab Emirates. It also has held a contract to manage airports in Iraq since 2004.
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