Chamber and committees

Permission from the Scottish Government was not required by Abellio ScotRail to commission Professor Iain Docherty to produce the Scotland’s Railway after the pandemic report.

The clause in the Serco Caledonian Sleepers Ltd franchise that permits the operator, from 1 April 2022, to seek adjustments to the financial terms of the Franchise Agreement, or exit the contract, cannot be instigated by the Scottish Government. As per the Franchise Agreement, this must be requested by Serco Caledonian Sleepers Ltd.

The Scottish Government will provide funding to support the chartering the MV Arrow by CalMac Ferries Ltd to assist the resilience on the Clyde and Hebrides Ferry Services (CHFS) network. The cost of the current time charter negotiated between CalMac Ferries Ltd and the Isle of Man Steam Packet Company is £588,000 excluding fuel and harbour dues.

The Scottish Government has made no assessment of the additional cost to CalMac Ferries Ltd for chartering the MV arrow in line with collective bargaining agreements. The crew of the MV Arrow are employed by Seatruck Ltd, who own the vessel and terms and conditions are a matter for that company.

The crew of the MV Arrow, whilst on a time charter with CalMac Ferries Ltd, will be employed by the vessel owner Seatruck Ferries Ltd.

The Scottish Government were not part of the negotiations regarding the time charter agreement of the MV Arrow. These were undertaken between CalMac Ferries Ltd and the Isle of Man Steam Packet Company.

The Scottish Government agreed with CalMac Ferries Limited (CFL) that the crew of the MV Arrow, though not covered by CFL terms and conditions or collective bargaining agreements, should receive the National Living Wage for the duration of the charter .

The Scottish Government continues to work under the interim Subsidy Control regime introduced by the UK Government on 1 January 2021 and provisions held within the EU-UK Trade and Cooperation Agreement. Alongside this, consideration has to be given to any further UK Subsidy Control obligations such as World Trade Organisation membership and commitments arising from international treaties and Fair Trade Agreements to which the United Kingdom is a party.

The UK Government introduced a Bill on Subsidy Control to Parliament on 30 June 2021 with a view to implementation of a permanent Subsidy Control regime.

Officials will continue to diligently work through the UK Government’s proposals to understand the impact on subsidies, including on ferry services.

Transport Scotland has been monitoring transport trends during the Covid-19 pandemic. This information is regularly published on the Transport Scotland website and can be found using the link: COVID-19 National Transport Trend Data . The Covid-19 Sub-National Reports provides travel trends on ferries.

CMAL are regularly contacted by 7 core shipbrokers who bring to their attention vessels that may be suitable for Scottish routes. This is due to the international standard that the broker takes a fee from the seller should a vessel be purchased.

CMAL have frequent and regular engagement with 7 core shipbrokers who assist with the identification of vessels that may be suitable for Scottish ferry routes.

When considering a vessel, CMAL review a number of elements to assess suitability for Scottish ferry routes including vessel dimensions, speed and displacement, as well as the vehicle deck garage heights, loading system (ramps), shore side interfaces, compliance with the Maritime Coastguard Agency Regulations and the vessel’s suitability for Scottish waters.

CMAL do not disclose the names of either the vessels it assesses or their ownership. This is due to the possible impact upon the market value of the vessel should it become apparent that a government body is considering their purchase, which could result in the price going up and making it harder to achieve Value for Money for the Scottish tax payer.