Ferry operator Caledonian MacBrayne has confirmed that it has not submitted a bid to operate the Gourock to Dunoon ferry route.

Tenders for the route had to be returned to the Scottish Procurement Directorate of the Scottish Executive by 1500, today, November 13, 2006.

CalMac Managing Director Lawrie Sinclair said: “The Company has carefully considered the terms of the Invitation to Tender, and particularly the requirement to offer the service with no subsidy from The Scottish Executive. We are unable to operate the specified service without a subsidy.”

“Our recently published Annual Report and Accounts for 2005-6 clearly shows that we have incurred a loss of £2.5million on this route. The cost of operating the current Streaker vessels, the level of pier and harbour dues, and our assessment of the potential volume of traffic based on our years of experience, has led us to conclude that we cannot offer a bid without a subsidy.”

“As to what happens now, this is a matter for the Scottish Executive. Whatever the outcome of this tender, we have already confirmed to our staff that there will be no redundancies. In the meantime, we will continue to operate the current hourly vehicular and passenger service, supplemented by MV AliCat at peak periods.”

ends

For further information on the contents of this News Release, please contact Susan Paterson, Marketing Manager, Caledonian MacBrayne.   Tel: 07841 737 552; e-mail susan.paterson@calmac.co.uk.

Issued:  Monday, November 13, 2006 : 1505