Meeting of the Parliament 04 March 2026 [Draft]
This debate is helpfully timed to allow me to build on my statement yesterday to the Parliament. Yesterday, I chaired a meeting of the Ardrossan task force to discuss next steps; this morning, I met CalMac Ferries to discuss its response to the operational challenges, and I met Caledonian Maritime Assets Ltd to discuss the various vessel and port investment projects that I referred to in my statement. Finally, I had the pleasure of visiting the newest addition to the fleet, the MV Isle of Islay.
The motion asks for a 30-year investment plan. In May, we published the islands connectivity vessel and ports plan, which set out our plan until 2045. That is based on an assumed vessel operational life of 30 years and commits that we will
“reduce the average age of the total fleet … to around 15 years by the end of this decade”.
In addition, we have committed that the plan will be
“fully updated every five years so that there is always a 20-25 year forward look.”
That plan is well under way.
In addition to the MV Isle of Islay, her three sister ships are under construction, along with seven small vessels. I had an update on that from CMAL only this morning. When taken together with the addition to the fleet of the MV Glen Rosa, that means that one third of the entire CalMac fleet is being replaced. The plan also commits to providing a major vessel for resilience purposes until at least 2030, to minimise disruption and ensure that services are maintained.
Yesterday, as well as announcing that we will soon move to tender on the replacement for the MV Lord of the Isles, I announced the proposal to directly award the contract for two of the small vessel replacement scheme vessels to Ferguson Marine. We will soon make an announcement on the replacements for the Northern Isles freight vessels. I say to Jamie Greene that all the steps that need to be taken as regards CMA engagement, subsidy control and so on will be taken for the proposed award. We are now far more confident that we will be able procure the vessels in that way, which is why I made yesterday’s announcement.
I also confirmed that I have approved funding for the redevelopment of Port Ellen. I am pleased to confirm that CMAL will award the £107 million contract to completely redevelop Port Ellen this week.
With regard to Ardrossan, the negotiations on purchase and wider legal agreements have now been concluded, and those will be signed shortly to confirm the harbour’s purchase by CMAL this month. That was discussed last night by the task force.
Beyond that, we will continue to invest in new vessels and ports, and our programme of community needs assessments is under way. The outputs will inform future service design and the business cases for the pipeline of vessel and port projects.
The provision of ferry services is not only about new vessels and ports; it is also about how they are run. We are approaching the end of the first period of the new Clyde and Hebrides ferry services contract, following the direct award to CalMac in October. Those arrangements, which represent a step change in how services are delivered, were intended to bring flexibility and a community focus to the heart of operations. As was mentioned when I met CalMac this morning, the company is on a journey that involves a process of constant learning, as part of which key performance indicators are embedded in every part of its business.
For the Northern Isles ferry services, I can confirm that, this morning, we published the prior information notice. That is the initial phase in the procurement process for the next contract, which will be in place from the end of June 2028.
The introduction by the Government of road equivalent tariff has significantly reduced ferry fares on the Clyde and Hebrides network, and it saves ferry travellers around £25 million per year. We will fully retain RET for islanders and non-islanders alike.
Yesterday, Ariane Burgess raised the question of freight fares across the network. She highlighted not just the absolute level of freight fares but their level relative to charges for other vehicles. I can confirm that, starting this summer, Transport Scotland will undertake a review that will encompass those issues. Of course, I cannot prejudge the outcome of that review, but I hope that that confirmation is welcome.
We recognise that island businesses have experienced more than their fair share of disruption. That is why we created the islands business resilience fund and expanded its scope to include Coll, Tiree, the small isles, Mull, Iona, Ulva, Barra, Vatersay, Islay and Jura. It was essential that the fund remained tightly targeted so that the support was credible. I can confirm that the full £4.4 million will be deployed, and I can announce that we have uplifted the rate of awards to strengthen the resilience of small businesses that face the impacts of disruption.
That all sits alongside the vision of the national islands plan, which sets out a refreshed programme of actions to address the broader challenges and opportunities that our islands face.
I recognise the challenges that island communities have faced and the need to provide them with reliable and resilient services, which is why we are taking the range of actions that I have outlined and will continue to invest in those communities.
I move amendment S6M-20957.3, to leave out from first “believes” to end and insert:
“recognises the challenges that island communities have faced with disruptions and the need to give them reliable and resilient services; supports the announcements made by the Scottish Government on 3 March 2026 of the conclusion of the purchase of Ardrossan Harbour, the proposal to directly award two vessels for the Small Vessel Replacement Programme to Ferguson Marine, the competitive tender for the replacement for the MV Lord of the Isles, funding for the Port Ellen redevelopment on Islay, and that peak fares for islanders on NorthLink ferry services will be removed on 24 March 2026; notes that, with 11 vessels currently being built and with the recent arrival of MV Isle of Islay, one third of the entire CalMac fleet is being replaced, and further notes that the Island Connectivity Plan Vessels and Ports Plan sets out a long-term investment programme to 2045, and that community needs assessments, with community engagement at their heart, will shape these investments in ferries and ports for decades to come.”
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