This item was published during the term of a previous administration that ended in April 2007
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Draft terms for northern ferry service
27/05/2004
A new draft contract which sets out the proposed
conditions for the re-tendering of the lifeline ferry
routes to Orkney and Shetland was published today.
A consultation paper has been issued along with the
draft service specification which sets out the terms and
conditions an operator would be expected to fulfil as part
of the new contract to operate the Northern Isles ferry
services.
The specification proposes:
• The current level of service on routes schedules and
timetables
• Use of the same ports and harbours
• Fares based on the current rates, with Ministerial
approval required for any other changes
• including freight and livestock in the new contract
• A single contract for the routes as in previous
subsidy agreements
Consultation will now take place with local communities,
including both Orkney and Shetland Councils, business
interests and other stakeholders, with responses due by
Friday July 16.
Transport Minister Nicol Stephen said:
"This consultation is important in seeking the views of
everyone in Orkney and Shetland on the future contract
arrangements for these vital lifeline ferry services. I am
very keen to hear from everyone who has an interest. This
is a crucial opportunity for local interests to have an
input in shaping the re-tendering process.
"We want to move this process forward as quickly as
possible so that we can re-let the contract to allow for
new arrangements to be in place next year. It is very
important, however to allow a reasonable period for
consultation, so that I can consider carefully all of the
views raised before we invite tenders. By building on the
terms of the existing contract and by making clear our
intention to include freight and livestock we want to
ensure we get the best possible deal for passengers and for
the local economies."
Ten shipping operators noted an expression of interest
in operating the ferry services following the recent
advertisement in the Official Journal of the European
Union. After the responses are analysed, a shortlist of
those companies will be invited to tender.
On April 8, the Transport Minister announced the early
retendering of the contract for the Northern Isles ferry
routes following financial difficulties faced by the
operator NorthLink. An advert was placed in Official
Journal of the European Union, and elsewhere, seeking
expressions of interest. Ten companies noted their
interest by the deadline.
The final terms of the subsidy arrangement are also
subject to ongoing consultation with the European
Commission and with the UK Government. The outcome of
these discussions and the local consultation exercise will
be taken into account in finalising the terms of the
service specification, which will be issued to short listed
bidders later in the summer.