Ferry Services (Public Ownership)

Part of the debate – in the Scottish Parliament at on 21 April 2022.

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Photo of Baroness Katy Clark Baroness Katy Clark Labour

I am not saying that at all. If the member listens to the rest of my contribution, that will become self-evident.

In 2017, the Scottish Government’s procurement policy review stated that it was the Scottish Government’s intention to

“build a case for making a direct award to an in-house operator for the Clyde and Hebrides services”.

Last year, I asked the previous transport minister to confirm that that was still the Scottish Government’s policy, but he failed to give that undertaking. I hope that the current transport minister will confirm today that she is committed to a public sector model.

Despite the Scottish Government’s commitment in 2017, it commissioned the private accounting firm Ernst & Young to review the structure. It has paid the firm more than half a million pounds of taxpayers’ money since 2015. Documents that were leaked to the media from the project Neptune review revealed that ministers explicitly asked Ernst & Young to consider the unbundling of routes and privatisation as an option. Despite journalists having written articles quoting sections of the report weeks ago, the report has still not been published. Can the minister confirm today that it will be published?

We need a long-term plan for a publicly owned ferry service, and we need to learn from the mistakes of the past by having a structure that involves communities—particularly island communities—and the workforce in decision making.

We also need to address the problems that have been caused by the fragmentation of the structure. For example, vessels 801 and 802, which were debated yesterday, would not have been commissioned if the Scottish Government had been required to involve the Arran community in decision making and had listened to the representations that were made at that time. The delay of more than four years to the regeneration of Ardrossan harbour would not have happened if the harbour had still been in public ownership, rather than in the ownership of Peel Ports.

There is a widespread view that we need standardisation of the fleet, with smaller vessels. That will cut maintenance costs and ensure that ferries can operate across routes. Can the minister confirm that the Scottish Government is actively looking at that?

Today’s debate follows on from yesterday’s debate on the procurement of vessels 801 and 802, which are being built at Ferguson Marine. They are projected to cost £240 million. They are two and a half times over budget, they are four years late, and they have been described as “a catastrophic failure” by a Scottish Parliament inquiry. Audit Scotland’s report said that ministers chose not to restart the process after CMAL expressed concerns. The First Minister raced to Port Glasgow to launch the 801 all the way back in 2016. The Scottish Government continues to hold responsibility for a catalogue of bad decisions, poor appointments and eye-watering sums being wasted on executives. No minister—and definitely not the First Minister—has been willing to take responsibility.

We need the Scottish Government to come forward with a plan for a ferry service that will deliver for islanders and support the community. We know that the current structure is not working and that change is required, but we will get the best service only if we involve islanders and the workforce in a publicly owned service. I ask the minister to respond in detail to the points that I have made and to the other points that will be made in the debate. I look forward to hearing members’ speeches. I hope that the Government will commit to developing a publicly owned model with a structure that will deliver for communities.