New fears have been raised in the north of Scotland about the prospect of the ferry company Caledonian MacBrayne being privatised.

The Scottish Executive says there is no move towards privatisation but councillors in the Highlands and Islands are concerned that the impetus may come from the European Commission.

They have made clear their total opposition to any attempt to sell off what they regard as a vital service.

European regulations demand that publicly-owned industries which receive state aid should be opened up to competitive tender every five years.

Government subsidy

Pressure to put ferry services out to tender has been resisted so far and CalMac has remained in the public sector with £15m a year in government subsidy.

The European Commission is said to be pressing hard and could force a change.

Highlands and Islands Minister Alasdair Morrison has described the speculation as "arrant nonsense" and that there was constant dialogue between the executive and Brussels.

Highlands and Islands councillor Michael Foxley said it would be "interesting" to see how hard the new CalMac chairman Harold Mills fought off privatisation.