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Last Updated: Wednesday, 18 January 2006, 14:34 GMT
Delay in ferry route announcement
NorthLink ferry
NorthLink got into financial difficulties with the service
Ministers have delayed the announcement of their preferred bidder for ferry services to Orkney and Shetland.

Transport Minister Tavish Scott said it would be February before the contract was awarded and the handover would not happen until early summer.

Caledonian MacBrayne and V Ships are competing to run the lifeline routes.

The Scottish Executive was forced to tender the service early after current operators, NorthLink, got into financial difficulties.

Alternative services

More than �78m of public money has been spent keeping ferry services to the Northern Isles afloat, more than double the originally agreed subsidy.

Earlier this month, MSPs quizzed the public spending watchdog Audit Scotland over a report into the NorthLink services.

Auditor General Robert Black said NorthLink had run into difficulties after two other firms started providing alternative services.

He said the competition, combined with higher than expected costs, led to NorthLink's financial problems.




SEE ALSO:
Ferry firms shortlist published
19 Jul 05 |  Scotland
Ferry home after storm ordeal
04 Nov 02 |  Scotland
End of an era for ferry link
30 Sep 02 |  Scotland


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