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News / Real consultation on ferry contract promised

THE SCOTTISH transport minister Derek Mackay has pledged to carry out a detailed study and consult properly with local communities ahead of the tendering process for the new northern isles ferry contract.

During a two day visit to Shetland, delayed on Wednesday due to flight problems, Mackay announced that for the first time the contract would be put through a detailed process called STAG – Scottish Transport Appraisal Guidance.

The announcement has been welcomed by politicians and transport companies, after concerns were raised about the awarding of the £243 million six year contract to current operators Serco NorthLink back in 2012.

Worries about the way the previous contract were handled began early in the process when council officials were barred from the discussions and a court case is still pending after it was challenged by rival bidder Streamline Shipping Group.

In Shetland on Thursday, Mackay said that this time a comprehensive study would begin this summer ahead of the contract being put out to tender.

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The study will be overseen by a working group led by government agency Transport Scotland, with representatives from Shetland and Orkney island councils, the transport partnerships ZetTrans and HiTrans and Highlands and Islands Enterprise.

It will also involve detailed engagement with key stakeholders, such as the haulage industry and the relevant harbour authorities.

Mackay said he wanted to make sure the government provided the best possible transport links for the communities that depend on the lifeline ferry service.

“This STAG study will help inform the procurement process for the next northern isles ferry service contract, looking at whether we can make improvements to the current set up,” he said.

“Consultation is at the heart of all the Scottish government’s work and this will be no different.

“All our key partners will be involved in the working group that oversees this report, and we will also seek views from stakeholders like hauliers and harbour authorities.

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“Passenger and freight transport to the northern isles are essential to the economies and sustainability of both Shetland and Orkney.

“This work will allow meaningful dialogue and collaboration on the future of these lifeline services, involving all the key stakeholders, to get underway in the very near future.”

ZetTrans chairman Michael Stout welcomed the announcement that a STAG appraisal will be carried out for the first time for the NorthLink service.

He said: “The councils in the highlands and islands and the regional transport partnerships have been working closely with Transport Scotland on this new approach for some time.

“I look forward to the continued joint working to ensure we have the best lifeline ferry services possible for Shetland and Orkney.”

Those involved in the preliminary talks around the ferry contract have said privately they are more confident about the process this time around.

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In 2012 the Serco contract was immediately challenged in the courts by rival bidder Streamline Shipping Group after it was announced on the same day as the council election results.

While the Court of Session granted Serco the right to run with the contract to avoid disruption to the service, the original legal challenge is still in motion and awaiting a court hearing.

Meanwhile this year it emerged that the previous operator, state-owned NorthLink, had their bid returned unopened with the government claiming that it had not met a high enough quality standard, despite the company successfully operating the service for 10 years.

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