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A Scottish Government review looking at how ferry services can be directly awarded to state-owned Caledonian Macbrayne has been delayed.

 

The full impact of complex EU state aid rules needs to be “further considered.”

 

A recent European Commission u-turn declared lifeline Scottish ferry services can be exempted from re-tendering rules.

 

It means ferries could be nationalised after the Scottish Government backed a state controlled operation.

 

The changes follow a joint approach to the EU from the Scottish Government and the RMT, making the case for a Teckal exemption for Scottish ferry services.

 

The Teckal exemption allows for public contracts to be awarded to in-house companies under strict conditions relating to the parent authority’s control and the functions performed.

 

Minister for Transport and the Islands Humza Yousaf said: “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.”

 

Mr Yousaf stated: “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.

 

“Our ferry services are iconic transport links that play a vital role for our island economies. Making sure they continue to support the communities they serve, as well as delivering best value for taxpayer’s money, will always remain at the heart of our ferry operations.”

 

 

Delay in ferry “nationalisation” report

20 July 2017