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Row over extra £16m for Calmac ferries

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Published Date: 07 October 2006
By JOHN ROSS AND ALASTAIR DALTON
MINISTERS were strongly criticised yesterday for giving the state-owned ferry firm Caledonian MacBrayne £16 million for restructuring ahead of its routes being put out to competitive tender.
The award was revealed as CalMac's annual report showed it made an overall loss of £33.3 million in the year to March, which was offset by a deficit grant of £31.4 million.

Rising fuel costs, berthing dues and the company's pension deficit all co
ntributed to the figures, the firm said.

The £16 million was awarded after CalMac was forced to split into separate entities to comply with European rules ahead of a tendering process for its Clyde and Hebridean routes.

A new operating company, CalMac Ferries, based at Gourock, was established last Sunday, covering the 400 pier and support staff. A separate company, Caledonian Maritime Assets, was set up on Tuesday to own the 31 vessels and some 30 terminals. And earlier this year, Caledonian MacBrayne Crewing (Guernsey) was set up for the ferry company's 800 sea-going staff so it could avoid paying National Insurance.

Fergus Ewing, the SNP's transport spokesman, said: "Given the whole point of tendering is to get best value for money, it seems that, if this £16 million is part of the cost of the tendering, then this particular tendering exercise represents worse value for money.

"It seems a colossal price tag for a horrendously complex tendering process which will end up costing the taxpayer a great deal more money without any increase in the quality or frequency of services or reduction in fares."

The Scottish Executive said the cash "provides the company with a sound financial basis to move forward given the change to future trading activities".

The annual report showed CalMac's passenger numbers fell by nearly 40,000 to 5.32 million, but commercial vehicles carried increased by more than nine per cent to 94,000. However, it said fuel costs rose by £3.7 million to £9.5 million, while pension costs increased by £4.1 million and staff costs rose by £2.4 million.

For the first time, the report showed route-by-route losses on services. The biggest loss maker was the Ullapool to Stornoway service, at £4.5 million, while the Oban-Castlebay to Lochboisdale route lost £3.7 million.



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  • Last Updated: 06 October 2006 9:30 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Caledonian MacBrayne
 
1

Dod fae Orkney,

Bearsden 07/10/2006 08:06:25

Simple solution - privatise Cal Mac

2

Mikey,

Carrigaline 07/10/2006 08:43:20

Of course! Then clear all the islands when it's not profitable to sail there!

Why not privatise the air in Bearsden? I'm told you could afford to breathe?

3

Dod fae Orkney,

Bearsden 07/10/2006 08:54:37

We have to stop being sentimental about things like remote communities. If they cannot operate profitably then they should be abandoned. St Kilda couldn't sustain a community so they all left. All you wishy washy lefties have to realise that the world doesn't owe you a living. Get out and do a worthwhile job and you'll feel a lot better than being a sponge.

4

Mike,

Essex 07/10/2006 09:49:28

Rupert,I think you would find it easier to sell the islands,think of the roubles and euros that would roll in!

5

the geezer,

07/10/2006 10:09:10

Rupert in Bearsden

You on the mainland might not be interested in "remote" communities, but Norway might be. The Hebrides were part of Norway until the Treaty of Perth in 1266 and who knows what might happen in the Future. The remote Faeroese are planning independence in a little over 5 years and they have only double the Hebridean population. Hebrides also control a massive sea area.

6

Stewarty,

Stirlingshire 07/10/2006 10:49:56

Fergus Ewing is right to criticise the costs of restructuring. But the £16m is only the tip of the iceberg.

Tavish Scott, Transport Minister, and his predecessor – the equally errant Nicol Stephen - were warned time and time again by politicians, academics and unions that the cost of tendering did not justify it as a course of action. After a brief rebellion by Labour MSP’s against tendering, they repented and bowed to the schoolma’am, Margaret Curran, Chief Whip, when she began to throw her toys around the nursery.

Thus obedience to the whip prevailed over commonsense and now we the taxpayers are going to have to cough up for this major indiscretion. And all because Scott and Stephen failed to display any backbone and resist the diktat from the EU to put the Calmac services out to tender. And who is the culprit in the EU? Why it’s Jacques Barot, Transport Commissioner who was reportedly convicted of embezzlement in 1999/2000 but then promptly pardoned by Chirac who is one of his bosom buddies.

Quite why Scott and Stephen allowed themselves to become so subservient to a convicted criminal is beyond me. Maybe it is a common trait among LibDems to fail to fight for one’s country. We’ve seen Ross Finnie, through his inability to fight Scotland’s corner, all but destroy our fishing industry.

7

Pointboy,

Isle of Lewis 07/10/2006 11:20:33

Rupert of Bearsden
We here in the Isles are entitled to the same life as those on mainland Scotland. What have we done to you? Take away the islands and what will you have. The World visit these islands and a lot history is behind them. I have been to Canada where there are still proud people with Scottish roots. In Scandinavia the ferry runs 24 hrs and is classed as the extention of a road, which should be the same here instead of a £10,000,000 ferry tied up all night.
About the Perth Treaty maybe it should have not been signed we might have been better off today and probibly independent. St Kilda was a reason and a need It is 40 miles away from the Western Isles, well away from supplys. Had it been inhabited today it may have been a different thing. Good god man we are all Scottish where is the support.

8

Duncan,

The Minch 07/10/2006 13:01:27

Donald please do not dignify Rupert's ignorant comments by responding to them, he is quite obviously a very distressed and lonely soul who does not get out.
The Islands of Scotland are very much a part of what makes us the diverse and interesting country it is many thousands of visitors each year are proof of that, if we needed it.
Perhaps an independent Scotland would follow the Scandinavian model where it costs no more to drive to Stornoway from Edinburgh than it would to Wick. Putting a dual carriageway the length of Scotland and upgrading the road network throughout the Highlands would be a start, and give a much needed boost to commerce and enterprise to allow us to compete on a level playing field with the cossetted south of Scotland. It is time that we had our share of the cake.

9

Mike,

Essex 07/10/2006 13:27:40

Angus and Donald, I think your love affair with Scandanavian ways will be short lived when your fellow Scots find their taxes doubled to pay for your ideals.I'm not sayingyour wrong to have ideas and ideals but suspect not enough people will be willing to find the monies from their pockets and the rest of the UK will take even more convincing.

10

the geezer,

07/10/2006 13:59:53

Donald Lewis well done
But we have to remind these mainlanders who constantly suck up to London there are other options in life :-)

11

Dod fae Orkney,

Aberdeen 08/10/2006 12:19:25

Fitlike? These remote communities have to be kept going. We need some place to go to shelter when the weather gets dirty. Have you ever been out of the central belt Rupert?

12

Mike Mackenzie,

Argyll 10/10/2006 07:40:10

In the post industrial economy many people who live in cities do jobs that really don't need doing at all.In any case most of them can be done better and much more cheaply by computers. As we don't make anything any more we don't export much.The only significant foreign currency we earn to meet our balance of trade deficit is from tourism.Last time I was there I didn't see many tourists in Bearsden.Many of our islands are net economic contributors and with decent services almost all of them could be.

13

frederick,

dundee 10/10/2006 14:45:28

i have often wondered why a 20 million pound ferry is berthed overnight and an aging freighter which hit the headlines last year when it was cought in a storm, operates under charter.
How much does it cost to charter the Muerneag(is this the correct spelling)while the isle of lewis scrapes her paint on the pier.
I know there is legislation regarding hours of work, but have ships not sailed round the clock
since noha launched his ark?
maybe a management shakeup is more needed than a tender.


 

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