McArthur: ferry contract ‘falls short’ of meeting freight demands

In the wake of the announcement that the new contract for the North Isles ferry routes will go to current operator Serco NorthLink, Orkney MSP Liam McArthur has raised concerns over freight provision in Scottish Parliament.

Mr McArthur raised the issue during Topical Questions, last Tuesday, saying the contract falls short of meeting the increasingly urgent demand in the North isles for additional freight capacity.

However, the Scottish Government’s islands minister Paul Wheelhouse MSP has said the new contract has been designed with more flexibility in mind, to reflect demands.

Speaking in parliament Mr McArthur welcomed an end to the uncertainty over the future provision of the life-line service and the continuity offered by Serco NorthLink, however, he reiterated his view that the new contract failed to provide a commitment to provide the much-needed additional freight capacity for Orkney and Shetland.

Responding, the islands minister said: “I do recognise that concerns about freight. A key factor in meeting the state aid rules is that services outlined in a public services contract are necessary and proportionate to communities’ needs — any additional services could have been interpreted as over-provision of aid and state support, thereby distorting the effect of operating the market.

“However, as Mr McArthur may be aware the contract has been designed with greater flexibility to allow timetabled freight and ferry services to be amended to better reflect changes in demand across the year, from sector to sector.

“We want to support the key areas of the economy of the Orkney and Shetland Islands — such as tourism, fishing, food and drink, aquaculture and farming — and to help Orkney and Shetland’s economies to thrive. These new arrangements will support that. I will look to engage with those key industries and with Mr McArthur and others as we go forward.”

Speaking after the exchange, Mr McArthur said: “Key businesses in Orkney and Shetland have been clear for some time now that current freight capacity is inadequate to meet their needs now and into the future. Addressing this issue has only become more urgent since the First Minister assured me twelve months ago that her government was taking these concerns seriously.

“It was therefore disappointing not to see more of a recognition of this when details of the new contract were announced last week.

“The minister has proposed a meeting of the main stakeholders in Orkney and Shetland to discuss the nature and extent of future freight demand in the islands. I think this would be a useful next step in identifying specific challenges and opportunities, while also helping build the strongest possible case for expanding capacity.

“Much of this information has been made available already, but I look forward to taking part in any such roundtable with a view to ensuring that businesses in Orkney and Shetland have access to the freight services they need”.