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Chamber

Meeting of the Parliament 25 November 2015

25 Nov 2015 · S4 · Meeting of the Parliament
Item of business
Clyde and Hebrides Ferry Services
Mackay, Derek SNP Renfrewshire North and West Watch on SPTV

As a consequence of our designing the tender process, we will continue to own the vessels and to set fares and timetables. In that sense, the services are still publicly owned. It is not the case that we are potentially selling the services.

Our investment in the road equivalent tariff has delivered significant fare reductions for passengers, cars, coaches and small commercial vehicles. We have frozen ferry fares for 2016-17 and we are in the process of finalising improvements to next year’s summer timetables, delivering community aspirations and meeting the increase in demand due to the road equivalent tariff. No previous Administration has invested as much as this Administration has in support for our lifeline ferry services, and all that investment would be at risk if we were not to tender those services in line with EU rules.

The Administration is 100 per cent committed to developing and supporting Clyde and Hebrides ferry services under public ownership. Claims that the services are up for privatisation are totally untrue. As I confirmed in my statement to the chamber on 24 June,

“no matter the outcome of that process, the Scottish ministers will retain ownership and control of all the vessels and ports that are currently under public ownership. We will set routes, timetables and fares as now and retain full control of the services that the operator provides through the public service contract”—[Official Report, 24 June 2015; c 19.]

as we do now.

I also assure everyone who depends on those vital services that we are undertaking a fair, open and transparent tender process. In my statement to the chamber on 24 June, I announced that we would set up an “independent procurement reference panel” to provide assurance that nothing is being done that could be perceived as discriminating against either bidder. The panel’s first report on the initial tender was published on Transport Scotland’s website on 3 November, and the panel concluded that the tender is fair, open and transparent. The panel further concluded that “appropriate and relevant information” must be made available “to both participants”, and Transport Scotland is doing that. The panel will consider the interim and final invitations to tender, and those documents and the panel’s comments will also be published, emphasising our commitment to a fair, open and transparent tendering process.

The people who rely on these lifeline services can and do have the highest level of confidence that the procurement process is fair and transparent and does not favour one bidder over another. The current tendering exercise is no different from that undertaken by the previous Labour-Liberal Democrat Administration when it decided in 2005 that it was a legal requirement to tender the contract.

In the same item of business

The Deputy Presiding Officer (John Scott) Con
The next item of business is a debate on motion S4M-14942, in the name of David Stewart, on keeping CalMac public. Before we start the debate, I remind membe...
David Stewart (Highlands and Islands) (Lab) Lab
As a lifelong trade unionist, I warmly welcome to the gallery this afternoon officials and members representing CalMac Ferries and beyond. I would ask all me...
Chic Brodie (South Scotland) (SNP) SNP
Will the member take an intervention?
David Stewart Lab
Not now. I will take an intervention from the member later. Let us not forget that CalMac has run the Clyde and Hebrides ferry routes at profit in every yea...
Mike MacKenzie (Highlands and Islands) (SNP) SNP
Will the member take an intervention?
David Stewart Lab
Not now. As the West Highland Free Press said: “Serco is not a shipping company. It is a multi-faceted specialist in outsourcing which exists to exploit th...
Chic Brodie SNP
Will the member take an intervention?
David Stewart Lab
Not now. We know how the model works: the Tories privatise an asset; Serco bids to manage the asset; it then cuts the service to the bone and posts a handso...
Chic Brodie SNP
Will the member take an intervention?
David Stewart Lab
Not at this point. In a parliamentary question in June this year, I asked the transport minister whether he had raised the Teckal exemption with the Europea...
The Minister for Transport and Islands (Derek Mackay) SNP
If David Stewart cared to expand on the answer that I gave him, members would hear that the Teckal exemption is irrelevant because the maritime cabotage regu...
David Stewart Lab
I note what the minister says, and I might have some news for him and the Scottish National Party Government in my speech. Over the summer, I headed to Brus...
The Minister for Transport and Islands (Derek Mackay) SNP
I will begin on a point of consensus. Whatever my disagreement with David Stewart on the legal opinion or on matters of interpretation, and whatever disagree...
Johann Lamont (Glasgow Pollok) (Lab) Lab
The minister says that the Scottish Government wants publicly owned ferry services. Does he think that a private company can deliver a publicly owned service...
Derek Mackay SNP
As a consequence of our designing the tender process, we will continue to own the vessels and to set fares and timetables. In that sense, the services are st...
Sarah Boyack (Lothian) (Lab) Lab
At what point will the minister acknowledge not just Teckal’s existence but the fact that case law and the decisions taken on Teckal have changed the circums...
Derek Mackay SNP
The member knows that it is not practice to share legal advice with others, but a useful exercise over the summer considered the legal advice, and I am afrai...
David Stewart Lab
Will the minister give way?
Derek Mackay SNP
Of course.
David Stewart Lab
I understand the minister’s point, but does he understand that it is in his power today to enforce the 2014 EU procurement directives, which make it easier t...
Derek Mackay SNP
David Stewart keeps on returning to the matter of legal opinion. It is our opinion that we have to undertake the process—there is no escaping it. Within the ...
Alex Johnstone (North East Scotland) (Con) Con
Any student of politics of any duration who looked in on today’s debate would obviously be inspired by the nature of the debate so far—although they might ge...
Johann Lamont Lab
Will the member take an intervention?
Alex Johnstone Con
No, thank you—not at the moment. That affection for CalMac is genuine because so many people who depend on its services know that CalMac is the provider. On...
Sarah Boyack Lab
Will the member take an intervention?
John Finnie (Highlands and Islands) (Ind) Ind
Will the member give way?
Alex Johnstone Con
No, thank you. We must get a handle on the cost of ferry services. We support in principle the notion that the Government advanced of the road equivalent ta...
Derek Mackay SNP
Does the member not accept that that is partly to do with the very aim that I have suggested—that of safeguarding the lifeline services and not having them p...
Alex Johnstone Con
That would have been the effect had the services been completely unbundled but, as the Government and the minister know, the services could have been partly ...
Tavish Scott (Shetland Islands) (LD) LD
I say to Mr Johnstone that the truth is that we lost a vote, as one or two colleagues on the far benches will well remember. Back in 2005, lots of Labour col...