How Serco will ruin our ferry services – letter

North Street
Sandwick

Sir

I am glad to see that the CalMac strike has been called off; the intervention of the First Minister is welcome. It is a pity that matters had to develop to such an advanced level but perhaps now the Scottish Government will reconsider its decision to go to tender.

“In 2003 there was a ruling by the European Court of justice in a case about German bus company Altmark in respect of subsidy/state aid. In 2004 CalMac received senior legal opinion that the Altmark decision allowed the Scottish Executive to stop tendering without fear of legal consequence.”

I am grateful to David Ross, Highland Correspondent of the Herald, for reminding me of this and the advice offered to the Scottish Executive at the time. The present government appear to found on the Scottish Executive decision rather than on the legal advice given, that is a pity because in doing so they have precipitated the strike action which has just been averted for the time being at least.

I fully understand why CalMac staff are considering strike action. All they are seeking is that their current pay and conditions be agreed going forward. Surely a simple request? So what is the problem? In a nut-shell, an organisation called Serco. CalMac staff are very concerned that Serco might end up running the Western Isles ferries. So too should the people of the Western Isles! Serco do not have a good record:

“They operate public and private transport and traffic control, aviation, military weapons, detention centres, prisons and schools.”

Indeed I am surprised that the Scottish Government have not informed us that Serco also run HMNB Clyde – the home of the SNP’s bete noire- the Trident missile.

Of Serco it is said: “There has been a history of problems, failures, fatal errors and overcharging.” A recent article in the Guardian (27 April 2015) describes Serco as a “scandal-hit outsourcer.” Not too encouraging. An article in the Telegraph (12 March 2015) speaks of a “troubled” Serco having “to launch a £555million rights issue” in an attempt to drag itself out of the mess that it is in.

Yet the Scottish Government deems this company suitable to bid for the west coast ferry services. How ? Why? Also, is it really believable that only two companies in the whole of Europe are judged capable of running our ferry services?

Surely no one in the Outer Hebrides wishes to see Serco run our vital ferry services? And yes, despite the Transport Minister’s protestations to the contrary, it will be privatisation if Serco win the contract. In simple terms what this means is that Serco will wish to make a profit. That will be its number one priority. So from the £1billion pound contract, expect to lose at least 10% ie. £100million gone from the services right from the get-go. Next will surely come tampering with jobs, pay and conditions. Then, of course, cuts in service. Why on earth will Serco wish to run services that do not pay? Will they maintain the ships? Will they replace the ships?

What of the Transport Minister’s offer to set up a Procurement Reference Panel? I would not touch it with a barge pole. This is just the Scottish Government setting up a group of people to blame when the whole fiasco of the tendering process goes horribly wrong. I am happy to have the contract remain with CalMac. For all that we criticise CalMac, the company has years of experience in running our vital ferry services. If the Scottish Government give CalMac the resources, and they in turn listen and respond to the people’s wishes, the ferry service in the future will be secure and improved.

Yours sincerely

Angus McCormack