| Caledonian MacBrayne response to Gourock-Dunoon consultation | |
| 03 June 2003 Ferry operator Caledonian MacBrayne has responded to the Scottish Executive’s consultation document “Proposals for Tendering Gourock to Dunoon Ferry Services”, issued on
The company’s response has been submitted to the Executive today (Friday, May 30) and will be posted on the Caledonian MacBrayne web-site www.calmac.co.uk. Copies will also be circulated to stakeholders and are available on request from Gourock. A number of general comments are offered and the key points include: * CalMac welcomes the opportunity for bidders to deliver additional passenger sailings. The Company notes that the most recent winter and summer timetables available when the Invitation To Tender (ITT) is finalised will determine the minimum level of service which will not be varied without the approval of the Executive. We welcome the proposals regarding the commencement dates for the summer and winter timetables. * CalMac notes the Executive’s revised intention to tender the subsidy for the Gourock/Dunoon passenger service separately from the rest of the Clyde & Hebrides Ferry Services (CHFS) currently operated by Caledonian MacBrayne. The proposal will allow a bidder to bid on the basis of a passenger-only or a passenger and vehicular service. The contract will be awarded on the basis of the lowest bid, regardless of whether this is for a passenger-only or a passenger and vehicular service. Although not stated explicitly in the consultation paper, CalMac presumes that the main purpose of this approach is to avoid the potential for subsidy leakage between a Gourock/Dunoon passenger service and any other service provided by the operator. CalMac agrees that this approach should minimise the possibility of cross-subsidisation. However, should a combined passenger and vehicle service be proposed, it will be necessary to isolate those operational costs which are attributable solely to the provision of the non-subsidised vehicle service from those which relate to the subsidised passenger service. This would ensure that there is no leakage of subsidy from the passenger service into the vehicle service. Given current traffic volumes on the route and proposed continuation of restrictions on number and frequency of vehicular sailings, it is possible that, in certain circumstances, a passenger and vehicle service will require a higher operating subsidy than a passenger-only service. * CalMac notes the Executive’s intention to maintain the hourly service restriction on any vehicular service proposed by bidders “to ensure the unsubsidised service close-by is not undermined.” To lower the requirement for subsidy, the income generated from vehicles and freight must more than offset the additional operating costs of providing these services compared to a passenger-only service utilising a passenger-only vessel. By restricting any vehicular service to an hourly provision, with no extension to the current timetable, a potentially valuable source of revenue will be denied to the operator. The requirement for bidders to supply their own vessel, rather than be bound to one supplied by VESCO, increases the likelihood of a passenger-only service through a passenger-only vessel(s). * CalMac notes that the use of VESCO vessels has not been entirely ruled out but is dependent on their availability. With this in mind, we believe it may be sensible to structure the tendering processes so that this uncertainty is resolved and the final stages of the bidding process for the Gourock/Dunoon route takes place when it will become apparent if the VESCO has “spare” vessels available. It remains desirable however that all the present Caledonian MacBrayne services should transfer to the new operator(s) on the same date. * The tendering of the Gourock to Dunoon service in isolation could result in increased costs in providing vessel relief and in meeting the requirements to augment the service on special occasions (e.g. Cowal Games Day) should this contract and the contract for the CHFS network be won by different operators. It will be essential that adequate provision is made for annual overhauls and breakdowns otherwise the service could be severely disrupted. * CalMac welcomes the requirement for tenderers to cost bids as if TUPE applies and to implement TUPE if successful in the bid. We welcome that there will be a reduction in subsidy equal to any reduction in operators’ costs if TUPE is subsequently found, in law, not to apply. * Cal Mac notes that if the successful bidder operates a passenger-only service, utilising a smaller vessel with fewer crew, the requirement for staff will be less. Redundancies may be unavoidable. * CalMac notes that the current fare and concessionary regimes will continue over the contract period and that the maximum price increases will be restricted to changes in the retail price index. We welcome the fact that this restriction will not apply to fares for any vehicle or freight service provided in addition to the minimum level of service. * CalMac notes that the draft service specification makes no mention of the role of the Gourock linkspan in providing a safe berth for vessels from the Ardrossan/Brodick and Wemyss Bay/Rothesay services in bad weather. Should the Gourock/Dunoon service become passenger-only there will still be a requirement for the linkspan at Gourock to be available in times of bad weather. Failure to do so could cause cancellations on the other two services. CalMac believes that there should be a requirement to produce a service specification for the VESCO as well as the operator. The current non-availability of the Dunoon linkspan, (owned and maintained by Argyll & Bute Council), has resulted in considerable loss of revenue for CalMac. Given that it is the owner’s responsibility to maintain its piers and linkspans in a condition which enables the operator to provide a service, this situation highlights the need for contractual obligations to be placed on the VESCO and other infrastructure providers. The Caledonian MacBrayne submission concludes that it is important that the proposed performance regime is designed to deliver outcomes which are in the interest of the lifeline services and the passengers. We are particularly concerned to ensure that communication channels between the operator and the Executive are short and direct in order to speed up the decision-making process. The requirement for details to be submitted in writing to the Executive in advance of a decision on whether an occurrence warrants relief event status may place Ship Masters in difficult positions, needing to decide on the spot whether to delay a particular sailing for the late arrival of passengers or exceptional social needs but unable to contact anyone with authority at the Executive. It is not clear that the system, as envisaged, is practical and achievable and great care will be required to ensure a workable solution is found. Ends Background Note On The purpose of the consultation paper is to seek views from interested parties in order to assist the Scottish Executive in making decisions on the way forward in relation to tendering the Gourock to Dunoon ferry service currently operated by Caledonian MacBrayne. The Gourock/Dunoon ferry service currently operated by Caledonian MacBrayne had previously been included in the proposals for the tendering of the Clyde & Hebrides Lifeline Ferry Services (issued on At present, Caledonian MacBrayne not only operates the service but also, following formal and informal consultations with a wide range of interested parties and customers, decides the detail of the service to be provided within a framework determined by Scottish Ministers. The process of consultation takes place in advance of the finalisation and publication of each timetable. In future, it is proposed that the Scottish Ministers will determine the minimum level of service. Ministers have also confirmed that Caledonian MacBrayne Ltd will be permitted to bid to operate the service. The Company’s response, therefore, has been prepared on the basis that its future interest will primarily be in the provision of the service rather than its specification. For further information on the contents of this News Release, please contact Hugh Dan MacLennan, Public Affairs Manager, Caledonian MacBrayne. | |
Text Only Version | Site map | Print this Page
