Introduction

Report Structure

As part of our evaluation of the CHFS network, TS has asked us to consider and assess the effectiveness and appropriateness of current corporate structures and governance arrangements, evaluate the design effectiveness of key controls, and consider how these impact on the delivery of VfM. This report is therefore split into the following sections:

Overview of CHFS Operations

This section provides an overview of CHFS Ferry Network and the Tripartite bodies primarily providing the service, namely, TS, CFL and CMAL. We have set out:

  • An overview of Scotland’s current ferry network
  • An overview of the current CHFS network and the background to the current Tripartite Structure

While this section does not set out any findings or recommendations, the contents have informed our observations and suggested actions in the Governance, Project Controls and VfM sections of our report.

Governance

This section assesses the current governance structures and mechanisms in operation across the Tripartite relationship. Key themes considered include:

  • Strategic alignment
  • Governance framework
  • Accountability
  • Decision making
  • Engagement and collaboration
  • Oversight and assurance

Project Controls

This section evaluates the design effectiveness of key project management controls, illustrated by a review of two critical infrastructure projects, selected in consultation with TS:

  • Ardrossan Harbour: the Ardrossan harbour currently  services the Arran ferry route. The project aims to upgrade the harbour facilities and to improve effectiveness alongside the new vessel commissioned for the route (MV Glen Sannox). The project is a collaboration between North Ayrshire Council, the harbour owners Peel Port Group (PPG), TS, CMAL and CFL. 
  • New Islay Vessel: the Islay ferry route runs from Kennacraig in Kintyre to the ports of Ellen and Askaig on Islay. The project aims to replace the HM Hebridean

Value for Money

This section considers whether current governance arrangements and operational controls across the Tripartite as a whole facilitate VfM delivery of the ferry services. We have considered four key themes which the Accountable Officer’s guidance in the Scottish Public Finance Manual (SPFM) identifies as being critical to delivering best value:

  • Vision and Leadership
  • Governance and Accountability
  • Partnership and Collaborative Working / Performance Management
  • Use of Resources

We have assessed the Tripartite against key indicators set out in the Accountable Officer’s guidance, identified gaps, and provided recommendations to address these.

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