CMAL of Port Glasgow could be scrapped say government

It has also been stated that there is also a case for the government-owned ferry operator CalMac, which has its headquarters in Gourock, to be abolished and merged as part of such a move.

The Scottish Government is actively considering a move to create a special integrated ferries body in the wake of a recommendation that emerged from a damning community consultation response analysis about the future of the country's beleaguered ferry network.

The responses to the Scottish Government-commissioned consultants' study into the future of ferries says that from a business perspective many felt that issues in the sector were leaving many firms unsustainable.

It calls for a single board to be formed to oversee the function of ferry provision, including the role of Transport Scotland.

Another suggestion was to consider scrapping CMAL to merge with a specialist group within Transport Scotland, to create a Ferries Scotland agency.

There has long been concern over the management of ferries being cocooned inside three levels of Scottish Government-controlled bureaucracy.

This features the Scottish Government agency Transport Scotland as funders, CMAL and service providers CalMac.

Added to that is the Ferguson Marine shipyard in Port Glasgow which came under the control of Scottish ministers in August 2019 when it fell into administration.

Transport secretary Fiona Hyslop has now stated there is "a case to be made" for both routes towards creating an integrated ferries body.

And she said the suggestion of a merger of CMAL and parts of the Scottish Government agency which is linked to ferry provision and services to create a Ferries Scotland agency "has merit".

The minister has moved to deal with the next Clyde and Hebrides Ferry Service contract first, having stated that a preferred option is to give a new long-term uncontested contract directly to CalMac. It is understood that one option is to let CalMac operate the contract 'in perpetuity' as a wing of government.

Mr Hyslop said: "There are a number of key steps that we have to take in in all of the ferry process areas. Clearly, I took the decision to move on the CHFS contract.

"I have been involved over many, many years prior, prior to this, in other portfolios, when you reorganise different bodies, and you bring together that quite clearly, would have a level of disruption, and that's all at a time where you're bringing in six new ferries. So I think there's an issue of timing, and in terms of the process, sorting the CHFS contract is a priority," said Ms Hyslop.

"And that in itself, has governance issues, particularly for CalMac. Even if you wanted to, for example, to do a merger, and I don't want to get hares running that that's happening overnight, or anything like that, there are governance issues that have to be legally put in place to do certain things. So, the order which we do things I think is very important."

The community engagement over the future of ferries came after an investigation carried out by global consultants Ernst and Young issued scathing criticisms of the existing governance structure for the lifeline island ferry services.

It also supported a move to turn the ferry owners CMAL and operators CalMac into one integrated publicly-owned company responsible for the operation and the supply of vessels on the west coast of Scotland.

CalMac's current £975m eight-year Clyde and Hebrides Ferry Services contract expires in September 2024.

Ms Hyslop told MSPs at the Scottish Parliament transport committee that she was aware there were opportunities to 'simplify and rationalise' the ferries set-up.

She added: "I want to reassure you that the options are there for us to consider. But I also want to make sure, you're talking about people's jobs, their careers, so I don't want to unnecessarily worry or perturb anyone."