Ferry companies claim 'squeeze'

Andrew Black
Political reporter, BBC Scotland news website

CalMac said targeting routes could threaten subsidised services

Scotland's two best-known private ferry companies have claimed they are being undermined by state-funded rivals.

Western Ferries and Pentland Ferries have expressed serious concern of being squeezed out by government-owned Caledonian MacBrayne.

Their comments came amid a Scottish Parliament inquiry into the future of the country's ferry services.

CalMac, which runs lifeline Clyde and Hebridean services, warned against the "cherry picking" of specific routes.

The operator, along with Northlink Ferries, is currently under EU investigation, amid complaints that subsidies they received breached competition law.

Western Ferries, which provides a service from Gourock to Dunoon in competition with CalMac, claimed it was now routine for private companies to offer services on routes where subsidised companies operated, only to later fail.

The company has urged Scottish ministers to consider the approach taken in British Columbia - where the Canadian province's public ferry operator is required to look into whether third-party companies could run routes more cheaply.

'Substantial threat'

"Private operators currently competing against subsidised routes in Scotland remain frustrated their commercial interests and ambitions are being undermined by seemingly unlimited amounts of capital and revenue support," stated Western Ferries, in a submission to the parliament's transport committee, which is holding the inquiry.

Pentland Ferries pointed out its un-subsidised Caithness to Orkney service was not classed as "lifeline", yet still transported vital supplies such as livestock and aviation fuel.

The company's Helen Whyte said it faced severe competitive pressure from other subsidised companies.

"We feel very strongly that all ferry companies who have proved themselves to be able to compete and offer a reliable and affordable service should be subsidised to allow a more level playing field for competition," she stated.

But Calmac insisted that maintaining the current situation where the Clyde and Hebridean routes are offered as a package of 24, with the exception of Gourock/Dunoon, best served island communities and the taxpayer.

CalMac Ferries managing director Lawrie Sinclair and Peter Timms, chair of David MacBrayne, also warned MSPs: "The risk posed by cherry pickers, where new competition might be introduced on a route, would have a major impact on CalMac's interests.

"It would inevitably lead to the need for additional subsidy if the existing level of service provision is to be maintained."

CalMac claimed it was widely accepted that the targeting of high-value routes would pose a substantial threat to the future of subsidised lifeline services.