Caledonian MacBrayne faced having its routes put out to tender

The executive was defeated by a single vote on a motion asking MSPs to endorse the move.

The proposal would have allowed private operators to bid to take over Caledonian MacBrayne's Clyde and Western Isles routes.

It is only the second defeat for the executive on a parliamentary vote.

The motion was defeated by 54 votes to 53, with 15 MSPs abstaining.

It was opposed by the SNP, the Greens, the Tories and the SSP. No Labour or Lib Dem MSPs voted against it, but 14 Labour members abstained along with independent MSP Margo MacDonald.

'Absolutely clear'

Transport Minister Nicol Stephen told parliament it was "absolutely clear" that European laws required the services to be put out to tender.

But some Labour MSPs questioned the need for tendering during a debate in the chamber.

MSPs WHO ABSTAINED Bill Butler (Labour) Helen Eadie (Labour) Karen Gillon (Labour) Marlyn Glen (Labour) Trish Godman (Labour) Sylvia Jackson (Labour) Paul Martin (Labour) Margo MacDonald (Independent) Michael McMahon (Labour) Duncan McNeil (Labour) Pauline McNeill (Labour) Des McNulty (Labour) Bristow Muldoon (Labour) Cathy Peattie (Labour) Elaine Smith (Labour)

Mr Stephen told MSPs: "It is now absolutely clear that we must proceed with tendering for these routes to comply with European law.

"I'd like to assure CalMac employees that we attach very great importance to their future and the executive will do whatever it can to ensure the protection available to CalMac employees is as robust as possible."

Holyrood Presiding Officer George Reid said it was up to the executive to decide what action to take in the wake of the parliamentary vote.

Cost 'unnecessary'

The Scottish National Party's (SNP) transport spokesman Fergus Ewing challenged the executive to go "back to the drawing board" with its proposals.

He told BBC Radio Scotland: "The executive put forward a proposition that the ferry services must go out to tender and EU law requires it. Quite frankly, a huge number of people simply say that's not true.

I hope the executive will accept they were defeated and do so gracefully and withdraw their proposal back to the drawing board Fergus Ewing SNP

"The whole cost could run to millions of pounds and it could be absolutely unnecessary.

"That's why a significant number of backbenchers in the Labour and Liberal parties sat on their hands and that's why the executive suffered their second ever defeat.

"I hope that the executive will accept that they were defeated and do so gracefully and withdraw their proposal back to the drawing board."

The executive was unable to say what would happen in the wake of the defeat.

A spokesman said: "We are determined to improve these lifeline services, not run them down.

"Members of the parliament have asked us to go back to the European Commission one more time and the minister will do that and report back to parliament as soon as possible."

'Bloody nose'

Conservative Highlands and Islands MSP Jamie McGrigor said the vote was a message to the executive that Holyrood would not be "bossed around".

He added: "Tendering the main bundle of routes on CalMac's Hebridean routes is a waste of money and will not profit either the customer or any islander relying on what are lifeline services."

Socialist MSP Tommy Sheridan said the vote was a "bloody nose" for the executive, accusing them of trying to privatise CalMac and put more than 1,000 jobs at risk.

Mr Stephen also unveiled a �15.3m funding package to provide two new CalMac vessels on the Wemyss Bay to Rothesay and Largs to Cumbrae routes.

He also announced a further �12m investment in piers and harbours grants for CalMac's onshore projects.