Cal Mac is operating "in a black hole"

In its annual report, CalMac said the exact figure is a private matter, but the 533 employees in the pension scheme should not worry unduly.

CalMac is a limited liability company owned by the government.

It is expected to break even after receiving an annual grant to subsidise essential services.

'Mercy of factors'

A spokesman said: "There is a black hole but that is something that is not unusual for companies across the board at the moment. There is no Robert Maxwell situation here.

"But we are at the mercy of factors beyond our control.

"If everybody wanted their money at the one time there would be a problem but that's like everyone cashing in their mortgage at the same time and won't happen."

CalMac continues to monitor the situation and will take any appropriate action to secure the interests of fund members Dr Harold Mills CalMac chairman

CalMac chairman Dr Harold Mills said the next valuation will be carried out on 31 March, 2004.

In the meantime, the board will review the position on funding and pensionable pay levels in future years based on the current valuation, Dr Mills said.

He added: "CalMac continues to monitor the situation and will take any appropriate action to secure the interests of fund members.

"This may, at some point in the future, involve increased levels of contribution from both employer and employees."

'Executive funding'

The company, which employs 1,100 people in Scotland, recorded a 0.7% increase in passengers, a 1.7% increase in cars and achieved its financial targets, its annual report said.

Dr Mills said CalMac had met performance targets set by Scottish ministers in terms of quality of service, efficiency, finance and staff costs.

"We recorded a surplus of �345,000 after tax and receipt of a deficit grant of �18.9m from the Scottish Executive," he said.

"In early 2002, we secured executive funding of �12.6m to build two new ships. The benefits flowing from the introduction of these two new ships - MV Loch Portain and MV Coruisk - will have impacts across the network."

George Lyon, Liberal Democrat MSP for Argyll and Bute, said he was "deeply alarmed" by the news.

He said: "I will be calling on CalMac to clarify exactly how big this black hole is and urge them to provide answers as to where the missing millions will be found to ensure that employees are guaranteed a full pension when they retire."