News / Ferry contract tendering delay
THE CURRENT Northern Isles ferry contract is likely to be extended into 2019 as a result of the Scottish Government launching a review into the future tendering of ferry contracts.
The review was prompted after correspondence from the European Commission indicated that in certain circumstances public ferry services could be awarded to an “in-house” operator without the need for tendering.
Transport minister Humza Yousaf confirmed in the Scottish Parliament on Thursday that talks were already under way with operator Serco NorthLink to ensure the continuity of the service beyond April 2018.
The retendering process was due to start this spring but will now not commence before the review has been concluded.
Responding to a question from Shetland MSP Tavish Scott, the minister said that while the tendering process for the new lifeline ferry contract was affected by the review, the work to reduce ferry fares on the services was not.
“We are already talking to the provider Serco about a possible extension,” Yousaf said.
“I have always been very clear that the fares reduction is not tied to the next contract, in fact, if we can bring in ferry fares reductions before the new contract then we would seek to do that.
“That position doesn’t change and the work of the working group in that respect hasn’t changed. I will keep the member (Tavish Scott) fully informed on the ferry fares reduction.”
The tendering review would also consider what would happen to European tendering rules after Brexit, the minister confirmed.
Following parliament, both Scott and Orkney MSP Liam McArthur renewed their calls for the Scottish Government to deliver significant fare reductions.
“Islanders have been promised substantial reductions in the ferry fares we pay. The Scottish Government cut west coast fares by 50 per cent,” they said.
“The northern isles want our fares to fall in line with those reductions to boost the islands economy and help local people, families and businesses with the cost of travelling on our lifeline routes.
“We want the transport minister to press ahead with these reductions no matter what happens to the re-tendering of the shipping contract.”
Meanwhile, Serco NorthLink has confirmed that it is are participating in the ferry tendering review.
The company’s managing director Stuart Garrett said: “We have noted the minister’s statement on future tendering for Scottish Government ferry contracts and we are looking forward to participating in the review with Transport Scotland.”
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