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Half a million pounds of taxpayer money paid to private advisors on ferries

CalMac Ferry in Ardrossan
CalMac Ferry in Ardrossan

More than half a million pounds of taxpayer money has been spent on private advisors on ferries since 2015.

Scottish ministers have paid out contracts worth £560,000 to Ernst and Young in the last seven years to look into the future of Scotland’s ferry service structure.

According to The Herald, this includes a payment of £156,000 for the Project Neptune examination.

Project Neptune is looking at whether the current governance arrangement for Scotland’s ferries, which are jointly provided by Transport Scotland, Caledonian Maritime Assets Limited and CalMac Ferries Limited, is fit for purpose.

A further £404,000 was paid out for the consultancy to analyse the financial state of the Clyde and Hebrides ferries, which are operated by state-controlled CalMac Ferries.

Review into future of ferries structure

Documents from Transport Scotland state Ernst and Young has been tasked with looking at whether or not the current structure is fit for purpose.

The consultancy has also been asked to provide a recommendation on a potential structure for ferry service contracts in the future.

This comes as CalMac deals with an ageing fleet, and as its two newest vessels – MV Glen Sannox and MV Hull 802 – are still sitting in Ferguson Marine shipyard.

The construction of these two vessels is now running four years late and is costing more than double the original £97 million contract.

‘Scandalous’ use of public money

Scottish Labour MSP Katy Clark has criticised the payments to Ernst and Young, saying ministers should have used the Scottish Government’s own expertise for free rather than paying a management consultancy which has previously been accused of using private capital to redesign public services.

She said: “It is scandalous that the Scottish Government is taking public money and handing it to unaccountable firms which have a vested interest in private provision of public services.

“There is no reason why the Scottish Government could not use impartial civil service expertise for the purpose of reviewing governance of our ferries network.”

She has also written to First Minister Nicola Sturgeon calling for the government to publish the consultancy’s findings and to officially rule out the sale of any part of the Clyde and Hebrides ferries to any private company.

Ministers ‘ruled out privatisation’

A spokesperson for Transport Scotland said: “Scottish ministers have already ruled out privatisation and have no plans to split up the CalMac Ferries network.

“The independent review of governance arrangements for Scottish Government lifeline ferry services will present a framework consisting of a range of options to the overarching objective of effective, efficient and economic delivery of lifeline ferry services, to enhance passenger experience and support local island economies.

“The final report has been completed very recently and the minister for transport has given assurances in parliament that it will be considered as soon as possible.

“We will then engage with all key stakeholders to ensure the most efficient and best value arrangement to deliver our key lifeline ferry services.”