'Time to break up' ferry operator

By Kit Fraser
Political correspondent, BBC Scotland

Private bus companies can provide better services to Clyde and Hebridean communities than state-owned operators, the Scottish Conservative Party has claimed.

McGills will use a private ferry company to cross the Clyde

The Tories believe there is now evidence in place that Caledonian MacBrayne's network of ferry services should be broken up.

Transport spokesman Alex Johnstone said the Scottish Government should let private companies cherry-pick profitable routes within the CalMac ferry network.

The perceived danger of exactly that process has long been the basic defence of keeping the state-owned outfit in its current form - but the Conservatives said there was growing evidence that private companies could also provide services at a lower cost to the taxpayer.

Bert Hendry, managing director of McGills Bus Services, is the latest figure to ask searching questions of CalMac and, in this case, ScotRail.

Later this year, Greenock-based McGills will start to compete for the Dunoon to Glasgow city centre passenger business. Their buses will use privately-run Western Ferries to cross the Clyde.

I'm not convinced that breaking up our lifeline ferry services on Scotland's west coast guarantees the continuity of service Tavish Scott Former transport minister

While CalMac receives a £2.5m subsidy on the route - and ScotRail undisclosed support - the buses will operate commercially.

How can they do it?

Mr Hendry said: "It's really down to the costs for rail and CalMac, and I really don't know much about that.

"Our costs are governed by fuel, the price of vehicles and general wages. There are few opportunities for cutting corners. We're in a highly regulated environment."

Mr Johnstone said there was a bigger picture than this battle on the River Clyde.

It was more proof, he argued, that private companies could offer the taxpayer significant savings without loss of service.

"Caledonian MacBrayne, or its derivatives, may well be the company that provides services in the Clyde and Hebridean area, but these services need to be broken down into bite-size franchises which will allow competitive private businesses to come in and tender and hopefully undercut the current rates," Mr Johnstone said.

Transport ministers past and present are against a Cal Mac break-up

But the architect of the current situation, former transport minister Tavish Scott, rejected the idea.

The Liberal Democrat MSP said: "I'm not convinced that breaking up our lifeline ferry services on Scotland's west coast guarantees the continuity of service to the many, many people who depend on them."

The MSP for Shetland added: "It's all very well to take away one part of the service - but what guarantees are the Conservatives offering to the rest of the west coast of Scotland who desperately need the existing service provision?"

The current Holyrood administration is conducting a review of ferry funding - but Transport Minister Stewart Stevenson said a break-up was out of the question.

He explained: "We lose economies of scale, we lose the ability to transfer vessels as back-up from one part of the network to another, which is a vital part of delivering services to remote island communities.

"That's why the previous administration took the decision to keep CalMac as one entity. That's why this government continues with this policy."

But Mr Stevenson said he would monitor the new coach service between Cowal and Glasgow with interest.