Meeting of the Parliament 06 November 2019
I am pleased to have the opportunity to contribute to the debate. I am disappointed by the Scottish National Party’s failure to acknowledge that there are issues, as evidenced principally by its amendment and the minister’s contribution. The minister says that we cannot be complacent, yet Liam McArthur is absolutely right that there is the usual “Nothing to see here” gloss, with the SNP effectively telling island communities and their inhabitants, businesses and tourism that there is no problem and no scope to improve. However, there are challenges.
In 2018, the Public Audit and Post-legislative Scrutiny Committee took evidence on Audit Scotland’s report on “Transport Scotland’s ferry services”. We discovered that in, 2016-17, Transport Scotland spent £209.7 million on ferry services and assets. That is a sizeable figure that, to be fair, had increased by 115 per cent over 10 years, although that was for an increase in passengers of 0.3 per cent. However, at least there is a strategy, right? Wrong. Audit Scotland said that
“There is no Scotland-wide, long term strategy”,
with the result that,
“In the context of limited public finances, Transport Scotland will find it challenging to continue to provide ferry services that meet the needs of users within its allocated budget.”
In light of that conclusion, perhaps the minister will outline in closing whether his intention is to increase fares, reduce services or cut back on capital spending.
At least we can demonstrate empirically that island communities are getting the benefits. Oh, wait—no we cannot, because, according to Audit Scotland,
“Transport Scotland does not routinely measure the contribution that ferry services make to social and economic outcomes ... which makes it difficult to determine whether its spending is value for money.”
But at least we can be reassured that the tendering process is robust. Well, no. On the Clyde and Hebrides ferry services, Audit Scotland tells us that the two tenderers submitted over 800 queries and that CalMac’s bid has 350 commitments whose achievement cannot be assessed. Of course, right after the contract was awarded, the successful contract increased in price by over £100 million, so that, between 2007 and 2017, the subsidies on the CHFS contract went up by 185 per cent.
Such issues raise serious questions about the SNP’s ability to deliver ferry services and reveal a cavalier attitude to spending taxpayers’ cash with little or no regard to value for money.
Here is why I want to flag the issue. I recall travelling several times on the Gourock to Dunoon route with Western Ferries. The ferries on that route have low cancellation rates, with only six cancellations this year from 27,000 sailings. They are car ferries, which may have contributed to the 17 per cent increase in cars transported since 2007 and the 1 per cent increase in passenger numbers. This year, the ferries have provided crossings for 30 blue-light emergency vehicles. However, the SNP cannot take credit for that record, because that company, which employs predominantly local people and transports local vehicles, did not receive a penny in subsidy. That is unlike the state-owned competitor, Argyll Ferries, which, according to Audit Scotland, had a 148 per cent increase in subsidy and does not carry vehicles.
The minister mentioned Serco NorthLink Ferries. I echo the minister in saying that it is a well-run and efficient service that uses lots of local produce from the north-east and the islands, which is to the benefit of our communities. I think that there has been a 20 per cent passenger increase since 2013. However, although the years between 2011 and 2016 saw massive increases in subsidy to state providers, support to NorthLink reduced by more than a third.
John Finnie is absolutely right that it is not easy to run a ferry service. However, if the state is to run services, we cannot ignore the challenges of the tendering process, the issues that make running those services difficult, the lack of monitoring and defined outcomes or considerations of value for money. The SNP’s constant pretence that all is well does a disservice to passengers, businesses and, as Liam McArthur rightly said, the workers who are doing their best to provide these vital, valuable and iconic lifeline services. The SNP has been in charge for more than 12 years. It is time for it to stand aside and let someone competent take over.
15:10