This item was published during the term of a previous administration that ended in April 2007
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New board for Caledonian Maritime Assets Ltd
06/11/2006
A board of directors was appointed today to run Caledonian Maritime Assets Ltd (CMAL).
Caledonian Maritime Assets Ltd was formed following the recent restructuring of Caledonian MacBrayne Ltd into two separate companies - a new asset owning and leasing company and a new ferry operating company.
Mr Scott confirmed that Grenville Johnston would chair the new board with Erik Østergaard and Kenneth MacLeod being appointed as directors.
The appointments will run from November 1 until October 31, 2009.
Transport Minister Tavish Scott said:
"Caledonian Maritime Assets Ltd will have a crucial role in providing the vessels and much of the shore facilities required to provide lifeline ferry services to island and remote mainland communities in the Clyde and Hebrides.
"These are important appointments, and I am delighted that Grenville, Erik and Kenneth have agreed to join the new board.
"All three bring with them a wealth of experience that will benefit not just the new company, but also importantly the passengers and businesses that rely on the vital ferry services that CalMac currently provides."
Grenville Johnston, a retired CA, lives in Elgin He has been a Board Member of Highlands and Islands Airports (HIAL) since 2001 and chairs the HIAL Highlands Pension Scheme. His remuneration for this position is £6,732. He recently completed an 8 year term as a Trustee of the National Museums of Scotland, where he chaired the audit committee for 6 years. He is also currently serving as Lord- Lieutenant of Moray.
The post of Chair is part-time (4 days per month) and currently attracts a remuneration of £15,961, which is subject to annual review. However, in recognition of the early work required to establish the company and its systems, Mr Johnston will be expected to work 8 days per month during the first 6 months, with a proportionate increase in remuneration.
Erik Østergaard lives in Helsingør, Denmark. He is Chief Executive Officer of Danish Transport and Logistics representing around 3,700 Danish Transport and Logistics Companies. His career has involved various senior management roles in ferries operations including rail links.
Kenneth MacLeod lives in Gourock. He is currently Chief Executive of Northern Marine Management, part of the STENA Group. He is also a Commissioner for the Northern Lighthouse Board (annual remuneration of £9,228) and a keen sailor.
The Director posts are part-time (two days per month) and currently attract a remuneration of £7,034, which is subject to annual review. However, the Directors will be expected to work four days per month over the first six months with a proportionate increase in remuneration.
This Ministerial public appointment was made in accordance with the Commissioner for Public Appointments in Scotland's Code of Practice.
All appointments are made on merit and political activity plays no part in the selection process. However, in accordance with the original Nolan recommendations, there is a requirement for the appointees' political activity (if there is any to be declared) to be made public. Within the last five years, none of the appointees have been involved in any political activity.
Background
Until October 1, 2006, Caledonian MacBrayne Ltd provided the majority of Clyde and Hebrides ferry services and owned the associated vessels and a number of the harbour facilities. That company was wholly owned by Scottish Ministers. These lifeline services require an annual revenue deficit grant from the Scottish Executive to maintain service levels.
In order to comply with European guidelines on State aids in maritime transport, an open public tender is necessary in respect of these ferry services. The Scottish Executive is tendering the Clyde and Hebrides Ferry Services (CHFS) as a single bundle, with the exception of the Gourock-Dunoon service which is being tendered as a single route on a commercial basis.
In recognition of the uniqueness of the CalMac fleet and to ensure a level playing field for all bidders, Caledonian MacBrayne Ltd was restructured, on October 1, 2006, into an asset-owning company, Caledonian Maritime Assets Limited, and a new operating company, CalMac Ferries Limited. Caledonian Maritime Assets Limited now owns the fleet of vessels and the land-based assets (ports, harbours, etc) and leases them to the operator. CalMac Ferries Limited now operates the services and will bid to run the services in the imminent tendering process. The appointed operator will be required to use the vessels owned by Caledonian Maritime Assets Limited.
Caledonian Maritime Assets Limited, like CalMac Ferries Ltd and the predecessor to them both, namely Caledonian MacBrayne Ltd, is a publicly owned company with Scottish Ministers as the single shareholder. The Caledonian Maritime Assets Limited Board will appoint a small executive management team and supporting staff, in the region of 8-10 staff plus professional advisors as required. As announced recently, its headquarters will be in Port Glasgow.