Ferry firm contests islands contract decision

A COMPANY denied the opportunity to run ferries to Shetland and Orkney is challenging a government decision to award the lucrative contract to a multi-national competitor.

Lawyers acting for Streamline claim the Scottish Government acted illegally when it awarded a £243 million contract earlier this month to Serco.

The Hampshire-based firm won in a tendering process to run maritime services between the Scottish mainland and the islands.

The proposed six-year deal begins in July 2012, but Streamline claims its plans are superior to Serco’s.

It says Serco’s proposals would result in fewer boats travelling between Shetland, Orkney and Aberdeen.

At the Court of Session in Edinburgh yesterday, Streamline’s legal team asked Lord Malcolm to stop the deal.