THE Scottish government has published a notice inviting ferry operators to tender for the Gourock-Dunoon service, with a subsidy available only for carrying passengers.
The tender process follows an investigation by the European Commission into the state subsidy of ferry services in Scotland.
Transparent
When the commission announced its decision on October 28 last year, a strict condition was imposed on the Scottish government that the Gourock-Dunoon service would be subject to a “transparent and non-discriminatory” public tender process, to be launched by the end of 2009. The invitation to potential bidders was published on December 31 – the latest possible date on which this could have been done, according to conditions laid down by the  commission.
The contract itself will offer government funding in the region of £9 million to £12 million over six years, and will be awarded on the basis of ‘the most economically advantageous tender in terms of criteria as stated in contract documents’.  
Intimations from interested parties are requested by February 15,   with the contract due to start by June next year.
Vehicles
Within the contract, the Scottish government will allow for a subsidy for passenger traffic, though bidders will be ‘allowed’ to provide an unrestricted commercial vehicle carrying service. Crucially, this is not a requirement.
One of the likely bidders is Cowal-based Western Ferries. Gordon Ross, company managing director, has confirmed that Western Ferries is likely to submit a bid for a passenger-only service.
“Obviously, the form of any tender submission will depend on the minimum specificatiosn, which  have not yet been published.” Mr Ross told the Standard.
Frequency
Ferry campaigner Ronnie Smith was unimpressed by the tender invitation, commenting: “As no vessels are to be provided, the chances of a vehicle and passenger service must be remote. The one last chance, the creation of a two year tender with ships being built in the interval, as proposed by Professor Kay, has been ignored.”
Monopoly
The views of Professor Neil Kay can be read in a letter in this week’s Safety Valve (see page 9). His opening paragraph sets the tone, however: “The government's tender outline for the Gourock-Dunoon ferries would be a sick joke were it not so serious.”
Jim Mather, MSP for Argyll and Bute, when  asked about the prospect of a passenger-only service between Gourock and Dunoon, said: “I prefer to see a positive future, where the substantial sums on offer to subsidise passenger fares town-centre to town-centre attracts an operator that understands the point the Deloitte Touche report made and sees the advantage to their profits and the service it can offer by providing a vehicle ferry service.”
Needs
Mr Mather added: “I believe that it would be really useful to hear more and more voices making it clear to all bidders that the  objective here is to attract the sort of service that will meet local needs, and that means a robust vehicle service.”
“There is a shameful lack of detail in the specification,”  Argyll and Bute MP, Alan Reid commented. “Without even a minimum timetable laid down for the passenger-only service, we look like ending up with a poor passenger-only service with even less journeys than the present CalMac one.”
The Scottish government has re-stated the view expressed by Transport Minister Stewart Stevenson in a recent visit to Dunoon that EU law will only allow a subsidy in respect of the carriage of passengers on the Gourock-Dunoon route.
Tender
When asked about the technical details seemingly lacking in the tender notice, a Scottish government spokesperson replied: “The service specification will be included in the Invitation to Tender (ITT) package, which will be issued to all shortlisted bidders.
“We expect to issue ITT packages in the spring, with a deadline for their return in early summer.
“We therefore expect to be able to award a contract sometime in late summer 2010. However, this initial timetable may be subject to amendments as the process progresses.”

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