Clyde and Hebrides Ferry Contract (Consultants)

– in the Scottish Parliament at on 25 May 2023.

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Photo of Graham Simpson Graham Simpson Conservative

3. To ask the First Minister for what reason consultants have reportedly been hired to advise on the next Clyde and Hebrides ferry contract. (S6F-02152)

Photo of Humza Yousaf Humza Yousaf Scottish National Party

We are committed to engaging with our various stakeholders in the development of the next generation of the Clyde and Hebrides ferry services contract. That includes engaging with our island communities. As I said at yesterday’s meeting of the Parliament’s Conveners Group, it is routine practice to use specialist advisers for complex, high-value projects such as this one, to ensure that we deliver a service that meets our needs and achieves value for money.

Our external advisers will assist with commercial and programme management of the project. They will provide a level of technical expertise to ensure that the contract reflects industry best practice to deliver a service that will meet both our current and future requirements. We will also seek the views of communities and other stakeholders to inform the approach that is taken.

Photo of Graham Simpson Graham Simpson Conservative

The problem is that the Scottish Government has now spent £5.5 million on consultants to advise it on what to think about how to run the ferry network. We have had project Neptune, which set out a number of options, and Angus Campbell was then tasked with asking islanders what they think. What has been the outcome of that? The current contract with CalMac, which has already been extended, expires in 15 months’ time. There is no time left to start the procurement process for the next round. The Government’s approach has been all about dither, delay and incompetence. Will the First Minister tell us whether CalMac will be awarded another extension? Is he now considering a new operating model for running and procuring our ferries?

The First Minister:

We have known for a long time that the Tories have not liked the Government’s use of experts; they have made that clear over the years. However, it is so important that a contract for a project of this size brings in the technical expertise that is required.

I make no apologies at all for the fact that we are engaging with island communities. Graham Simpson was absolutely right to mention the work that is being undertaken by Angus Campbell, following a key recommendation in the project Neptune report. Mr Campbell has spent the past few months visiting and engaging with island communities and ferry users, and his report should be with ministers soon.

Although there is no specific obligation to inform Parliament of procurement competitions, we will, of course, update Parliament on the decisions that are taken, because we understand just how important this matter is.

We are looking to ensure that our island communities have the best possible service, and we are focused on ensuring that the current service is as resilient and reliable as possible. That is why we made sure that CalMac chartered the MV Alfred.

I will not pre-empt the outcome of the work that is currently taking place, but I restate unequivocally that we have no plans to privatise, nor indeed to split up, the Clyde and Hebrides ferry network.

Photo of Rhoda Grant Rhoda Grant Labour

The problem with the Clyde and Hebrides ferry service is not the contract but the ferry fleet. The First Minister knows that the provision of the fleet is the responsibility of the Scottish Government. A consultants’ report cannot cover up the Government’s dismal failure to provide working ferries. Will the First Minister now apologise for his own, and his Government’s, failure to provide ferries that are up to the job?

The First Minister:

We have invested in our ferry service and our ferry fleet, and we continue to do so by investing in six ferries to add to the resilience of the fleet. In the meantime, however, we are not waiting for those ferries to be built. Where we can charter additional tonnage, we are doing so. CalMac has, rightly, spent a considerable amount of money in order to ensure that it has in place the MV Alfred, which is currently providing additional resilience on the Arran route—a very important route not only for the islanders but for Scotland.

Photo of Donald Cameron Donald Cameron Conservative

The island of Mull is currently at the sharp end of Scotland’s ferry crisis, with many people simply unable to get on or off the island as a result of the Scottish National Party’s catastrophic management of our ferry network. Residents are at their wits’ end, especially given that the alternative route via the Corran ferry is out of service.

Island communities are rightly calling for a compensation scheme. Will the First Minister commit to that? What urgent action will he take to sort out the problems that islanders on Mull are currently suffering?

The First Minister:

I will ensure that the Minister for Transport communicates with Donald Cameron directly on the actions that we are taking in relation to the issues that the community on Mull faces.

Of course, the issues around compensation have understandably and rightly been raised, many a time, with the Government. I have looked into the penalty deductions that are made in relation to failures on the network, and my view is that we should continue to use that money to reinvest in the ferry network. There is a legitimate goal around the use of those deductions, but I think that the best use of that money is to reinvest it back into the network.

To give just one example, I mentioned the MV Alfred, which has been chartered at a cost of £9 million. Between £1 million and £3 million of that is coming from performance deductions and the penalties that Donald Cameron mentioned, so it is right that that money is reinvested for the benefit of the resilience of the entire network.