THE award of a new contract for the Gourock to Dunoon ferry route is to be delayed again.

The latest hold-up is because of a continuing review of ferry tendering policy and while Greenock and Inverclyde’s SNP MSP has welcomed the move, Labour are less pleased.

The government says it wants more time to consider the full impact of European Union ferry tendering rules.

It will focus on whether the direct award of a contract — without going out to tender - would comply with complex regulations governing state aid, while also satisfying a so-called ‘Teckal exemption’.

Previous correspondence from the European Commission, prompted by a joint approach from the Scottish Government and the RMT union, indicated that, in certain circumstances, public ferry services could be awarded to an ‘in-house’ operator without the need for tendering. 

The route is currently operated by Argyll Ferries, using the passenger-only craft Argyll Flyer and Ali Cat. In winter Transport Scotland have supplemented the smaller vessels with the larger MV Coruisk to provide more reliability in bad weather.

The next contract was due to begin last month, and run for 12 years.

MSP Stuart McMillan backs the delay decision.

He said: “CalMac’s HQ is based in Inverclyde, and the company is a major employer in the area. Our ferry services are iconic transport links that play a vital role for our local economy.

“It is vital that they continue to support the communities they serve, as well as delivering best value for taxpayer’s money, and that will always remain at the heart of the Scottish Government’s ferry operations.”

Transport minister Humza Yousaf added: “Since the policy review was launched in February, my officials have carried out extensive engagement with the European Commission and key stakeholders across our ferry networks.

“This work has led to the conclusion that a direct award to a body that is compliant with the Teckal exemption would be allowed under EU legislation. However, before we can consider making a direct award, we also need to make sure it would comply with complex state aid rules.

“This will require further engagement with the Commission, and will almost certainly extend the timeline for the policy review beyond the autumn period. We will publish a report on progress to date in the autumn, and aim to complete the full review process as soon as possible.”

He added: “It is the Scottish Government’s preference to make a direct award to an in-house provider, but it’s important that the outcome of this review is not prejudged.

“This extension means we will have to further consider the implications for the next contracts for the Gourock-Dunoon and Northern Isles ferry services, and we will lay out the way forward for both of these contracts in due course.”

But Labour insist there is no need for a further hold-up.

Their rural economy spokesperson, Rhoda Grant MSP, said the Scottish Government already has the power to deal with the procurement of lifeline ferry services.

She said: “Not only have ministers continued to fail to use this gift, but they are still dragging their heels on it.

“With this update, they have once again kicked the decision into the long grass, while bidders and already vulnerable communities are left in limbo.

“The Scottish Government must act sooner rather than later to ensure these ferry services are accessible and protected for our island communities.”