Question reference: S5W-27316
- Asked by: Maureen Watt, MSP for Aberdeen South and North Kincardine, Scottish National Party
- Date lodged: 5 February 2020
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Current status: Initiated by the Scottish Government. Answered by Paul Wheelhouse on 6 February 2020
Question
To ask the Scottish Government whether it will provide an update on the procurement of the Northern Isles ferry contract.
Answer
CalMac Ferries withdrew its legal action on 31 January, with no financial payment due to either party. Additionally, Transport Scotland has completed its engagement with the European Commission in relation to outstanding State Aid issues, with the Commission having reaffirmed that they do not consider the public subsidy offered in support of the Northern Isles Ferry Service, under the proposed public service contract, constitutes State Aid.
Transport Scotland will now move to conclude the award of contract for the delivery of the ferry services to Serco NorthLink Ferries. We currently anticipate that the contract should be awarded by the end of March, allowing a three-month mobilisation period before the new contract takes effect from the end of June.
To ensure continuity of service during this timeline, the current contract has been extended and will run for a period of up to six months from 31 January.
Following the commencement of the new contract, a non-commercially sensitive copy will be published on Transport Scotland’s website.