CalMac insists its three-way split will be plain sailing for everyone

Published on Thursday 21 September 2006 01:21

THE ferry company Caledonian MacBrayne has assured staff and customers its services will not be affected by a restructuring that will result in the state-owned group being split into three.

The firm has been forced to divide itself to comply with European rules ahead of a tendering process for Clyde and Hebridean routes.

From 1 October, an operating company, CalMac Ferries, based at the present headquarters in Gourock, will be established to cover the 400 pier and support staff. A separate company will be set up on the same day and it will own the 31 vessels. Its name and HQ have yet to be confirmed.

Earlier this year, Caledonian MacBrayne Crewing (Guernsey) was set up in the Channel Islands and employs the company's 800 sea-going staff.

The transfer of crew to an offshore company, first proposed last year, will save an estimated 1.5 million a year by exploiting a loophole that allows it to avoid paying National Insurance contributions to the government.

CalMac, which received a subsidy of 26 million from the Scottish Executive last year, said the move puts it in line with other shipping companies that already use the loophole - effective only for mariners - and allows it to compete better with private operators.

The restructuring is necessary to comply with legal requirements relating to CalMac's routes going out to tender. That exercise recently began with an invitation to tender for the Gourock-Dunoon service, and other routes will follow soon.

Laurie Sinclair, CalMac's managing director, said: "To enable the existing Caledonian MacBrayne business to participate in that tender process, it is a requirement that there be a clear legal separation between, on the one hand, the company that owns the vessels and ports, and, on the other hand, the company that actually operates the ferry services.

"At the present time, Caledonian MacBrayne Ltd both owns the vessels and the ports and runs the ferry service."

He went on: "The transfer will have no impact upon employees' terms and conditions, and continuity of service as far as our customers are concerned. Apart from the change of company, it will be business as usual."

Phil Preston, CalMac's operations director, said: "This move follows a restructure earlier this year when seafaring staff transferred to an off-shore crewing company.

"The entire restructuring process has been planned to provide a seamless transition and to ensure continuity of service to all CalMac's customers."

An Executive spokesman said: "This will have no implications for the terms and conditions of staff and will have no impact on the services delivered to customers."

CalMac has been waiting seven years for the tendering process. In December, MSPs defeated the Executive on the issue and tried to block the exercise. But the European Commission warned ministers they had to go ahead or risk having to pay back million of pounds in subsidies.

Bids for the 26 routes are due over the next few weeks and new operators will run the services from autumn next year.

Ten companies originally expressed an interest in running the Clyde and Hebrides services, but only one - V Ships - is still in the running.