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Wednesday, 18 January 2006, 14:34 GMT

Delay in ferry route announcement

NorthLink ferry Ministers have delayed the announcement of their preferred bidder for ferry services to Orkney and Shetland.

Transport Minister Tavish Scott said it would be February before the contract was awarded and the handover would not happen until early summer.

Caledonian MacBrayne and V Ships are competing to run the lifeline routes.

The Scottish Executive was forced to tender the service early after current operators, NorthLink, got into financial difficulties.

Alternative services

More than £78m of public money has been spent keeping ferry services to the Northern Isles afloat, more than double the originally agreed subsidy.

Earlier this month, MSPs quizzed the public spending watchdog Audit Scotland over a report into the NorthLink services.

Auditor General Robert Black said NorthLink had run into difficulties after two other firms started providing alternative services.

He said the competition, combined with higher than expected costs, led to NorthLink's financial problems.




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Related to this story:
£71m spent to keep ferries afloat (22 Dec 05 |  Scotland )
Ferry firms shortlist published (19 Jul 05 |  Scotland )
Ferry home after storm ordeal (04 Nov 02 |  Scotland )
New ferry sails for the Northern Isles (01 Oct 02 |  Scotland )
End of an era for ferry link (30 Sep 02 |  Scotland )
CalMac wins lifeline ferry contract (05 Oct 00 |  Scotland )

RELATED INTERNET LINKS:
NorthLink
Calmac
V Ships
Scottish Executive
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