Background
The previous administration had worked with the European Commission since 2000 to bring the services provided by CalMac Ferries Limited (previously Caledonian MacBrayne) into compliance with European rules on state aids and maritime cabotage. During this time, there was wide consultation on this issue with the local communities served by the ferry services.
In late 2004/early 2005, the previous administration consulted on the final service specification for the Clyde and Hebrides ferry services. This consultation provided an opportunity for individuals and organisations to make their views known prior to the services being tendered and this page provides information on that process.
Requirement to Tender
There had been much discussion about the requirement to tender. The issue had twice been debated in the Scottish Parliament and had been the subject of discussions between the previous administration and European Commission. During the Parliamentary debate on 8 December 2004, the Parliament expressed concerns about the tendering process and asked the then Minister for Transport to challenge the European Commission on the need to tender. See the official record of that debate.
Further discussions subsequently took place during the first part of 2005 and the Minister for Transport returned to Parliament on 14 September 2005 to debate this issue again. To coincide with the debate, the previous administration published two documents on 12 September 2005:
• The Scottish Executive's Consideration of the Requirement to Tender; and
• Research and Advice on Risk Management in relation to subsidy of ferry services in EU Member States
The first document explained the range of alternatives to tendering and summarised the Executive's consideration of the Academic papers that were submitted to the Local Government and Transport Committee. It set out the previous administration's approach to staffing and employment issues. It also includes copies of correspondence between the previous administration and the EC since the Parliamentary debate in December 2004. The other document was the output from work undertaken by consultants who carried out research on the application of the Maritime Cabotage Regulation in other Member States.
During the debate on 14 September 2005, the Parliament recognised the seriousness of subsidies not being compatible with EU rules, and voted to proceed with the tendering process. Read the official record of the debate. The previous administration's priority was to protect these services so they can continue to serve the fragile island and remote communities which depend on them. This ensures the services continue to be delivered to the same high standards and protects the jobs of the CalMac workforce and their terms and conditions.
When the new Scottish Government came to power in May 2007 the tendering process was at an advanced stage with CalMac Ferries Ltd submitting a bid by the closing date of 11 May 2007. The new Government decided to continue with the tender process was the quickest way to put in place a formal contract for the provision of the lifeline services. The tendering process concluded on 20 September 2007 with the award of the contract to CalMac Ferries Ltd to operate the Clyde and Hebrides Ferry Services from 1 October 2007 to 30 September 2013