Isles of Scilly ferry bidder claims it would cut fares by 25%

The new ferry would take passengers and freight between Penzance and St Mary's

A company bidding to build and run new ferries to the Isles of Scilly claims it would reduce fares by a quarter.

Harland and Wolff (H&W) wants to run the service using £48m of government levelling up funding that has not yet been allocated.

The route is currently served by the Isles of Scilly Steamship Group (IOSSG), but their current passenger and freight vessels need replacing.

H&W boss John Wood has been in Scilly speaking to islanders about the plans.

He said: "We envisage fare reductions in the region of 20 to 25%."

Harland and Wolff released these computer generated images but the final decision on designs has not been made

The plans involve building a single vessel to handle both passengers and freight all year, and a second boat for fast crossings during the busy summer months.

It aims to be operational during 2025.

Mr Wood said: "Instead of building two new vessels we think you only need one new vessel which would be a ropax type of vessel.

"The additional vessel for the fast ferry we believe will be self financing and will not be involved in any application for levelling up funding."

Shipbuilders Piriou will lead the work on the new passenger ferry Scillonian IV and cargo vessel

The Isles of Scilly Council said it was "continuing to work with government to ensure the levelling up funding allocated to improve the Isles of Scilly sea links remains available and supports affordable fares and freight tariffs".

Mr Wood said he had been "amazed" by the response islanders had given to their plans.

"The key messages that have come across are that it needs to be affordable, a year-round service and it needs to be regular," he said.

"We leave the island very encouraged from what we have heard."

The current passenger ferry, the Scillonian III, was purpose-built for the Isles of Scilly Steamship Group by Harland and Wolff in 1977

IOSSG will not apply for government funding, but has instead taken out a private £33.6m loan to pay for three new vessels.

These would be a passenger ferry, a freight vessel and an inter-island boat to take freight between St Mary's and the off-islands.

Earlier this month it announced the company building the ships would be Piriou.

The ships would be built in Vietnam, prepared in Brittany, France and be in service by 2026, the company said.

CEO of IOSSG Stuart Reid said: "We are going to have increased passenger numbers - the new vessel can hold up to 600 passengers, increased cargo capacity, improved access for passengers and most importantly, improved comfort with the stabilisation fins that will mean a much better ride going from Penzance to Scilly and back again."

He said a local rate for the ferry would continue and "there will be a small increase in fares but we have capped that at 5% plus inflation over the next two years".

He added: "And then it will only be inflation going on from there. The rumours about tripling fares are absolute nonsense and shouldn't be believed."

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