Douglas Fraser
Scotland business & economy editor

Image source, Mark F Gibson

The building of two innovative CalMac ferries has hit turbulent waters over the lack of advance planning.

The MV Glen Sannox can be seen afloat at the Port Glasgow quayside, where it looks a long way from being shipshape.

Shipyard boss Jim McColl is concerned about getting more state support in the shape of bank guarantees.

On information technology, the problem is how to procure services that don't yet exist. So the Scottish government is asking the innovators to help.

Read more of Douglas Fraser's analysis here.

Image source, bbc

David McGibbon, also from CalMac, explains the decision that was made by the government was to go for the larger vessel rather than having two.

Jim Anderson of Caledonian Maritime Assets says he was responsible for the build and design of the Loch Seaforth, which will lead to great savings.

Does the procurement process lead to good value for money, asks Mr Mountain.

"The simple answer is yes," replies Mr Hobbs.

Mr Anderson agrees saying Ferguson's was the outstanding bid.

Robbie Drummond of CalMac says we need to look at what we want future services to look like and then base investment on that.

Tory MSP Peter Chapman says it seems the views of the travelling public have be disregarded when the decision to lease MV Loch Seaforth was made.

It's not our decision at the end of the day, responds Kevin Hobbs of CMAL.

People on the islands may have preferred two smaller vessels but a decision was made for one larger vessels to run 24 hours a day instead, he says.

It comes down to money Mr Hobbs explains, noting two small vessels would probably have cost more than one large one.

We're living in a world where there is not enough money to do what everyone wants to be done, he states.

Image source, bbc

Mr Stevenson pivots to CalMac timetables.

Mr Drummond explains there are operating protocols to help work with trains and buses when there are delays.

The CalMac managing director points out there is no smart ticketing in place yet.

Kevin Hobbs from Caledonian Maritime Assets reiterates his point that more money would be helpful.

SNP MSP Stewart Stevenson turns discussion to the Road Equivalent Tariff (RET) and how this relates to growth.

RET (Road Equivalent Tariff) is a Scottish Government scheme that links ferry fares to the cost of travelling an equivalent distance by road.

Robbie Drummond says we do not know how much of the passenger growth is due to RET and how much due to economic growth.

But growth rates are "way in excess" of what was predicted back when RET was first introduced, he adds.

Mr Stewart says many of the issues relate to integration of transport and asks about efforts to improve this.

The CalMac MD says a transport integration manager is working with communities, ScotRail and bus companies to ensure timetables are aligned.

On integrated ticketing, he says CalMac's system is "passed the end of life", adding the system is no longer doing what it needs to do.

Mr Drummond explains that in the past CalMac has been able to manage disruption due to weather but now the impact is higher due to all the vessels being full.

Mr Finnie asks why the Caledonian Macbrayne crewing company is registered in Guernsey.

The CalMac managing director replies 1,700 people are employed and it is registered in Guernsey because it saves on national insurance.

Image source, Clyde Blowers

CalMac ferries faces rising costs over design changes to two new "prototype" ferries, the owner of the shipyard that is building them has said.

Jim McColl, of Ferguson Marine, said more work should have been done on the vessel's design before the contract was tendered.

The £97m order was won by Ferguson Marine in 2015.

The Scottish government owns Caledonian Marine Asset Ltd (CMAL) - the body that buys and leases ships for CalMac.

Read more.

Mr Hobbs agrees there has been under-investment.

He tells the committee CMAL has received £150m of investment for vessels in the last ten years, plus a further £50m for harbour investment.

If we were to replace all our 31 vessels today, this would require around £850m he says.

Given the full-life of a vessel is about 30 years, around £30m should be invested in vessels per year - "we've received about half of that" Mr Hobbs states.

The CMAL representatives says that, on average, CMAL has received £23.5m per year for vessels and infrastructure, but adds that he believes we should be receiving about £50m per year.

Image source, bbc

Green MSP John Finnie gets the first question and uses it to ask about whether there is adequate funding for network resilience.

Robbie Drummond from CalMac explains the ability to cope with breakdowns is much harder now due to the huge number of passengers and the extra sailings.

Ther are no spare assets and our staff are working at absolute capacity.

Mr Finnnie asks if Mr Drummond is happy with the level of funding.

Mr Drummond says CalMac is "managing as best we can" with what it has.

He cites delayed investment and the delay in a new ferry, which would have made a significant difference to the resilience of our fleet.

The construction of two new ferries for Caledonian MacBrayne has been affected by further delays.

One of the boats is for the Uig-Lochmaddy-Tarbert Triangle while the other is to operate between Arran and Ardrossan.

Ferguson Marine has notified CalMac's parent company, Caledonian Maritime Assets Ltd, of the new delays.

The first ferry, MV Glenn Sannox - which is destined for the Arran-Ardrossan route - was launched last November and was due to enter service this summer but construction delays meant that was initially put back to the winter of 2018/19.

Ferguson Marine has now confirmed the ship will not be ready until next summer, a full year behind schedule.

Read more.

Kevin Hobbs from Caledonian Maritime Assets Ltd (CMAL) explains his organisation charters vessels to CalMac, some of which are owned by CMAL while others are sub-chartered from other firms.

We are not permitted to borrow money from any organisation apart from the Scottish government without prior permission, he states.

CMAL receives release payments, harbour dues, and Scottish government loans and grants, Mr Hobbs says.

MV Loch Seaforth is the only vessel leased using non-government money, instead coming from the Lloyds Banking Group he adds.

Image source, bbc

Robbie Drummond from CalMac says the fleet is already working to the limit of its capacity.

Mr Drummond points out there has been an increase in passenger numbers of 17% to 5.2m.

The additional volumes is putting more pressure on our vessels and our staff, he explains.

Mr Drummond says the ability to tackle disruption has been diminished.

"We regret every instance of disruption."

The CalMac managing director welcomes the committee's focus on accessibility.

Rural economy committee convener Edward Mountain introduces:

• Robbie Drummond from CalMac, external
• David McGibbon, also from CalMac
• Kevin Hobbs from Caledonian Maritime Assets, external
• Jim Anderson of Caledonian Maritime Assets

Read the session papers here., external

And submissions received on the topic here., external

According to The Herald....

"A Tory MSP has been accused of “ambushing” the committee he chairs over changes to a report that could affect his financial interests.

"Sources said Edward Mountain sprang a list of suggestions on MSPs as they considered a draft report on salmon farming in a private session."

Read more here., external

Image source, bbc

Lib Dem MSP Mike Rumbles raises concerns about the committee when it is in private and says leaks to the press undermine its work.

Mr Rumbles calls for all items to be held in public.

SNP MSP Stewart Stevenson says there are matters in private papers shared with the committee in confidence, and therefore it would not be appropriate to discuss it in public.

Tory MSP Jamie Greene says he has sympathy with Mr Rumbles on this issue, however there are things that must be discussed in private.

Green MSP John Finnie warns that the work of the committee will be affected if it cannot go into private session.

Mr Rumbles says this has happened twice in two weeks and there is no indication from the individual on the committee that it will stop.

Mr Mountain asks those members of the committee who agree to take item 4, discussing the work programme, on the agenda in private to raise their hands.

All but Mr Rumbles do, thus item 4 will be considered in private.

Image source, Colin Smith

The Rural Economy and Connectivity Committee is this morning undertaking some pre-budget scrutiny, focusing on investment to support Clyde and Hebrides ferry services.

It is hearing from two panels this morning, the first comprises the owners of ferries, ports and related infrastructure, and the second include transport and community stakeholders.

However before that the committee is considering a report on salmon farming in Scotland in private.

This is expected to last until 10am.

Read the session papers here. , external

And submissions received on the topic here. , external

Image source, CalMac

Welcome to Holyrood Live on Wednesday 25 September 2018.

The rural economy committee will hear from CalMac, Caledonian Maritime Assets and other stakeholders as it carries out its pre-budget scrutiny. Investment and delays to new vessels will likely be the focus.

Image source, Getty/SPL

After lunch, portfolio questions will see constitutional relations and culture, tourism and external affairs in the spotlight.

Rural Economy Secretary Fergus Ewing will then give ministerial statement on the Common Agricultural Policy.

Another ministerial statement is next, this time entitled “Dignity and Respect in Scotland’s Social Security System”.

Image source, SPL

The debate in the chamber is led by the government and is on supporting and protecting human rights defenders.

Labour MSP David Stewart will lead a member’s debate on the impact of leading Euratom.