Chamber and committees

We will work with all key stakeholders, including the trade unions, to ensure the most efficient and best value arrangement to deliver our key lifeline ferry services. An independent review analysing the existing governance structure is already underway and our consultants will be engaging with stakeholders shortly. The provisional outcomes of the review will be published around the end of the year when further engagement on potential options will take place.

Under the Emergency Measures Agreements (EMAs) in place, (a) Abellio ScotRail and (b) Serco Caledonian Sleepers Limited are not entitled to indemnification in the event of industrial action although the net difference between revenue and costs in any EMA period pass through to Scottish Ministers.

To the extent that industrial action increases the net cost to the Scottish Government it increases the need for further efficiencies and cost reductions given that funding, in the context of Covid, is severely constrained.

Under current legislation, a public sector operator could bid to run rail services in Scotland in any future franchise competition.

The Scottish Government has, on a number of occasions, requested the further devolution of rail powers, which has been denied. This includes through our engagement with the UK Rail Review. Further devolution would enable us to consider the widest range of options possible for delivering rail services.

We were not consulted on the detailed proposals within the Williams-Shapps Plan prior to its publication, and we are currently seeking clarity from the UK Government in a range of areas.

In Scotland we are continuing to work under the interim Subsidy Control regime and provisions held within the EU-UK Trade and Cooperation Agreement. Draft legislation was laid in the UK Parliament on 30 June 2021. We will now take time to consider the draft legislation and reflect any new options that may be available for procurement of ferry services and/or impact on ferry fares policy.

The Prior Information Notice (PIN) referred to confirmed Ministers’ intention for Scotrail services to be delivered through a wholly owned company of the Scottish Ministers in terms of the Operator of Last Resort following expiry of the current ScotRail Franchise Agreement.

It is intended that Operator of Last Resort arrangements will provide a period of stability for passengers and staff while we assess the scale and pace of recovery from Covid 19 and future rail reform.

As the PIN was published on 31 March 2021, almost 2 months ahead of the UK Government’s delayed White Paper on Rail, there was considerable uncertainty around reform at the time. Accordingly, through the PIN, Ministers reserved the right to put OLR arrangements in place as appropriate, up to the maximum period of 10 years. It also indicated the envisaged direct award at that point was for a period of 3-5 years with any optional additional period(s) exercisable at the sole discretion of Ministers.

Although the White Paper has now been published, we are pressing the UK Government for further clarity on how their proposals, and timescales for implementation of future rail reform, will impact our aspirations for Scotland’s railways. This will help inform future decisions about the duration of the OLR arrangements, subject to the 10 year maximum referred to in the PIN.

Provision of services by a Scottish Government owned company, called ScotRail Trains Ltd, in line with our Operator of Last Resort duty will ensure the continuity of rail services in Scotland and also provide stability to staff, suppliers and passengers over this period.

Abellio ScotRail staff with their terms and conditions will transfer to the new entity.

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.

The Scottish Government have had no discussions with Seatruck Ferries regarding the time charter of additional tonnage for the Clyde and Hebrides Ferry Services (CHFS) network. All discussions have been undertaken by CalMac Ferries Ltd.