Independent panel for CHFS tender

An independent panel is being set up to ensure the procurement of the next Clyde and Hebrides Ferry Services (CHFS) contract is fair, open and transparent, Minister for Transport and Islands Derek Mackay has announced.

The panel will be invited to review and offer comment to Transport Scotland on:

• the Initial Invitation to Tender, due to issue on 10 July 2015.
• the Interim Invitation to Tender, due to issue in autumn 2015.
• the Final Invitation to Tender, due to issue in December 2015.

Transport Scotland will take the views of the panel into account and provide an undertaking to consider all relevant points made by the panel. Any necessary changes arising from the panel’s assessment would be incorporated in the subsequent or final version of the Invitation to Tender.

The panel will be made up of some 6 to 10 members representing local communities, various sectors or interest groups including the trade unions.

Mr Mackay said:

“This is an entirely new initiative in the procurement of ferry services in Scotland – the establishment of an independent Procurement Reference Panel to further reinforce our commitment to fairness, openness and transparency in the procurement process.

“We have already engaged with key stakeholders who have a direct interest in the Clyde and Hebrides Ferry Services, but this panel will give them additional assurances around the procurement process. It will also allow further important input from local communities and interest groups.

“As Minister for Transport and Islands, I am well aware of the crucial role these lifeline links play for families and businesses on the West Coast and the Western Isles and there is no doubt the award of the next CHFS contract is an incredibly important moment for Scotland’s island communities.

“I am convinced this new approach will be welcomed by all of those who live, work and visit communities served by these services.”

Mr Mackay also addressed issues around the tender process:

“The Scottish Government would rather we did not have to tender these services. My party opposed the initial tender of these services in 2004. However, it has been demonstrated that EU law requires the Scottish Government to do so.

“We inherited this situation from the previous Labour-Lib Dem Administration and it was that coalition that initiated the first tendering of the Clyde and Hebrides ferry services contract.

“Some opposition members who supported the tender then appear to be suggesting that we break EU law, the consequences of which would surely result in challenge.

“If we were not to tender this contract we put the services themselves, the subsidy we provide them with, the routes, the vessels and the investment at risk. That is not a risk this Government will take.

“I also want to re-emphasise that the current tender process does not involve the Scottish Government selling any assets or controlling interests to the private sector.

“No matter the outcome, Scottish Ministers will retain ownership and control of all the vessels and ports currently under public ownership.

“We will set routes, timetables and fares – as we do just now – and we will retain full control of the services provided by the operator through the public service contract.”

Notes to editors

- Representatives of the following sectors will be invited to make up the Procurement Reference Panel: Local Authorities; Ferry User Groups; Tourism, Economy and Business; Ports and Harbours; Trade Unions; Health, Social Care and Accessibility.

- The appointments to the Procurement Reference Panel will be made in due course.

- Given procurement rules, the Procurement Reference Panel cannot be involved in evaluating the bids or overseeing the appointment of the successful tenderer. These roles sit solely with Scottish Ministers.

- The contract to operate the Clyde and Hebrides Ferry Services network must be tendered in compliance with European law.

- The requirement to tender stems from Council Regulation (EEC) No 3577/92, applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage), and the relevant provisions of the Treaty on the Functioning of the European Union.

- The position of the Commission in relation to tendering can be seen clearly from Commission Decision C 16/2008 made on 28 October 2009 in relation to state aid in relation to subsidies for maritime transport services in Scotland.

Published 24 Jun 2015