With Transport Scotland having confirmed to us that two Pre-Qualifying Questionnaires [PQQs] were received in the ongoing tender process for the Clyde and Hebridean Ferry Services [CHFS] contract, the assumption had to be that one of the two bidders was the current operator, the state owned CalMac.
The logical presumption on the identity of the second bidder was that it had to be a private sector operator, most probably Serco, the giant outsourcer controversially awarded the Northern Isles contract last time out in preference to CalMac’s then sister company, NorthLink Ferries – and known to be interested in the huge west coast ferries contact.
There is now another rumour on the go as to the identity of the second bidder, which we cannot confirm but is circulating in informed circles.
Stagecoach.
Stagecoach does run ferries in locations abroad and in 2012 had expressed an interest in running a new passenger ferry across the Firth of Forth.
The company’s interest in this contract would not be uncharacteristic for an ambitious transport specialist.
If there is substance in this story, it would not be good news for CalMac.
The CHFS contract should have been tendered in 2013 and at that time Transport Scotland were authoritatively known to be interested in handing the west as well as the north coast ferries to Serco.
A multifocus campaign defending against that possibility attracted substantial support and, to protect the independence vote in 2014, Transport Scotland beat a retreat and postponed the tender for three years. It is a point of interest that the announcement of the award of the current contract will not be made until after the 2016 Scottish Election.
Since its winning of the Northern Isles ferry services contract, Serco has shot itself in the foot by being caught defrauding the UK government to a hefty tune on a prisoner tagging contract; and by being suspended from bidding for public sector contracts until the conclusion of a Serious Fraud Office inquiry into that matter.
Serco also failed to implement its contractual obligation to supply a replacement vessel when the MV Hamnavoe went out of service to Orkney for over a month with a technical problem.
The Scottish Government then imposed no penalty on the company for this failure – which saw the private sector’s Pentland Ferries absorbing the additional carryings.
This sequence of events has put under question whether the Orkney route can defensibly be classified as a lifeline service, and therefore legally attract state funding.
The award of a second major ferries contract to Serco would now be certain to attract widespread public opposition – in addition to trades union opposition.
The political dimension would have to come into play here with the SNP Scottish Government dedicated to taking out the Labour party as a force in Scottish politics. They would not wish – yet – though, to confront the trades unions directly, with the unions’ traditional role of support for the people perhaps the next – but not the present – Labour party focused target of usurpation by the SNP.
While a Stagecoach bid would be as likely to attract the attention of the trades unions, it is a Scottish company, also with experience of managing complex transport contracts; also with deep pockets; and its owner and co-founder, Brian Souter, is an SNP supporter and indy sponsor.
It would be naive to neglect the possibility of a pre-arrangement between the Scottish Government and Stagecoach.
For a government with a continuing covert and as yet unfulfilled intent to take the west coast ferry services into private sector responsibility, Stagecoach could be a more palatable partner.
Serco was – and remains – an obvious candidate to be the second bidder, because its scale of operations, its experience of managing complex major public sector contracts and, even with a slab wiped off its share price, the depth of its pockets is sufficient to the challenge.
But if Stagecoach were indeed to be the second bidder, CalMac would have on its hands a survival fight of a different order.
