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10. DirApp - Sustainable Ferry Service - FINAL - 18-08-22

North Ayrshire Council · 23 August 2022
Back to Cabinet — 23 August 2022 and its agenda

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NORTH AYRSHIRE COUNCIL 
23 August 2022 
Cabinet 
Title:    Net Zero Energy and Transport Committee – Inquiry into a
modern and sustainable ferry service for Scotland 
Purpose:  To seek approval for the proposed North Ayrshire Council
submission to the Net Zero Energy and Transport Committee’s
Inquiry into a modern and sustainable ferry service for
Scotland. 
Recommendation:  That Cabinet approves the submission of the proposed
response to the call for views provided at Appendix One. 
1. Executive Summary 
1.1 The Scottish Parliament’s Net Zero, Energy and Transport Committee has launched
an inquiry into a modern and sustainable ferry service for Scotland.  The Committee is
seeking views until 26 August 2022 and engaging with ferry users to examine how
services can best meet local needs.  This report seeks approval for the proposed
submission to the call for views provided at Appendix One. 
2. Background 
2.1 The Net Zero, Energy and Transport Committee scrutinises the Scottish Government’s
policies and progress towards climate change targets across all government
departments.  The Committee has a specific focus on transport, energy, net zero and
circular economy and aspects of environmental policy. 
2.2 The Committee agreed to undertake a comprehensive review of ferry services in
March 2022.  This was informed by a public petition regarding the impact of the
unreliability of ferries on island economies.  The petition outlined the impact of the
unreliability through losses to island economies relying on tourism and travel
restrictions for island residents, who need reliable and regular services.  The
Committee identified that there were also wider issues beyond those covered by the
petition which required to be considered. 
2.3 The inquiry will consider: 
- What island residents, businesses and other ferry users need from Scottish
Government supported ferry services;
- The institutional and funding arrangements that would meet the needs of current
and future ferry users; and

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- What vessel size, type, deployment and crewing arrangements would best satisfy
the needs identified. 
2.4 The Committee is seeking views until 26 August 2022.  It has committed to engaging
with ferry users to understand the impact of problems with ferry services and examine
how services can best meet local needs.  It will pursue the following objectives.  To: 
- Understand what a modern ferry service should look like from different
perspectives including island and mainland residents, individuals and businesses;
- Consider and draw attention to best practice in ferry provision and service
including considering examples from private enterprise or internationally;
- Hold the Scottish Government, operators and asset holders to account and
scrutinise carefully whether their decisions and strategies are in the best interests
of service users and the taxpayer;
- Help inform Scottish Government’s policies and strategies on ferries and island
connectivity as well as the procurement process for future vessels;
- Identify the needs and views of different groups in particular young people and
disabled people;
- Adapt scrutiny to the different needs, experiences and solutions of different islands
and communities;
- Recognise the importance of island impact assessments carried out by relevant
authorities; and
- Incorporate the contribution of transport to net zero goals into scrutiny throughout
the inquiry. 
2.5 The call for views poses a series of questions outlined at Appendix One and which
were considered as part of the proposed submission.  The draft submission has been
informed by the feedback from our island communities through the extensive
engagement carried out during the development of the recently published Local Island
Plans. 
3. Proposals 
3.1 That Cabinet approves the proposed submission to the call for views provided at
Appendix One. 
4. Implications/Socio-economic Duty 
Financial 
4.1 The provision of modern, sustainable services is critical to our islands and the wider
North Ayrshire economy.  The Fraser of Allander report on the Impact of Covid-19 on
the Arran economy identified that on average, each day of ferry operation contributes
just under £170,000 to the island’s economy.   
Human Resources 
4.2 None. 
Legal 
4.3 None.

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Equality/Socio-economic 
4.4 The provision of a modern, sustainable ferry service will support the reversal of
economic, social and physical decline and reduce socio-economic disadvantage.  It
will also contribute to the delivery of the Isle of Cumbrae and Isle of Arran Local Island
Plans, their key themes and priorities. Both plans recognise the multiple impacts of
the unreliability and capacity of the existing ferry services to island residents,
businesses and the local economy.  Reliable ferry provision is identified as a key
priority for the Isle of Cumbrae Plan and ferry provision and infrastructure is identified
as a key priority for the Isle of Arran Plan. 
Climate Change and Carbon 
4.5 The inquiry aims to identify the requirements for a modern, sustainable ferry service. 
It identifies an objective to incorporate the contribution of transport to net zero goals
into scrutiny throughout the inquiry.  This aligns with the Council’s agreed
Environmental Sustainability and Climate Change Strategy workstreams of: Green
Economy; Transport and Travel; and Sustainable Operations. Furthermore, it aligns
with the Council’s commitment to reduce carbon emissions through our declaration of
a Climate Emergency and will contribute to the ambition to achieve net zero by 2030.   
Key Priorities 
4.6 The provision of a modern, sustainable ferry service will contribute to achieving a
number of the Council Plan outcomes.  It will contribute to the ambitions for: an
inclusive, growing and enterprising economy; North Ayrshire to be well-connected with
effective infrastructure; and for a sustainable, vibrant, welcoming and attractive
environment. 
Community Wealth Building 
4.7 The Inclusive Growth Diagnostic identified transport as a barrier to inclusive growth at
a local level. The provision of a modern, sustainable ferry service for our islands is
vital to local communities and delivering inclusive growth and Community Wealth
Building. 
5. Consultation 
5.1 The Net Zero Energy and Transport Committee has committed to engaging with ferry
users to understand the impact of problems with ferry services and examine how
services can best meet local needs.  The proposed Council response was prepared
jointly by officers within the Place Directorate and within the Growth and Investment
team. The draft submission has also been informed by the feedback from our island
communities through the extensive engagement carried out during the development of
the recently published Local Island Plans. 
RUSSELL McCUTCHEON
Executive Director (Place)

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For further information please contact Louise Kirk, Senior Manager Regeneration, on
01294 324766. 
Background Papers
Fraser of Allander Report: Impact of Covid-19 on the Arran economy (2020)
Isle of Arran Local Island Plan (2022)
Isle of Cumbrae Local Island Plan (2022)

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Appendix One: Proposed Submission - Inquiry into a Modern and Sustainable Ferry
Service for Scotland 
Question 1: What do island residents, businesses, and other ferry users need in the short,
medium and long term from Scottish Government-supported ferry services? 
- Meeting the needs and sustainability of island and remote rural communities and
businesses, including secure jobs providing ferry services
- Meeting the needs of mainland communities and businesses, including visitors
- Service needs at different times of the year
- Which needs are better met by other modes, e.g. air travel where available?
- How should the Scottish Government support council-run ferry services?
- How can ferry users and island communities be involved in decision making at strategic
and operational level? 
NAC Response: 
Our islands need reliable services that provide for everyday journeys for rural communities,
tourism, leisure and business needs.    There are no alternative transport modes for
journeys to and from either Arran or Cumbrae therefore vessel and service resilience is
critical.  Reliable ferry services are critical to the supply chain between mainland and island
businesses and the sustainability of island businesses going forward.   
Like most island economies, our islands’ economies are highly dependent on their ferries.
The levels of cancellations and their coverage undermines visitor and business confidence
in our islands as places to either visit, work, live or invest.  Service needs and levels
fluctuate throughout the year due to seasonal demand.  Modern ferry services should be
suitably dynamic to respond to these fluctuations as far as practical. 
A minimum ‘lifeline’ service definition should be developed for winter services.  A
considerable amount of data is available on service requirements but it is important that the
latent demand due to the unreliability of services and capacity issues is also considered.
Due to labour shortages many island businesses are reliant on commuters from North
Ayrshire and further afield therefore a reliable year round service is critical to island
business operation. Our health and social care services rely on the service to transport
staff.  Significant ferry disruption causes humanitarian and welfare concerns and stress for
the people receiving this support and for the staff providing these services. 
There needs to be greater co-ordination between all transport modes including connecting
modes on islands and on the mainland.  On both Arran and Cumbrae, bus services are
largely timed to meet the ferry on arrival. Reliability issues with the ferry can therefore have
a significant knock-on impact for the wider transport network.  If the buses wait for late-
running ferries the timetable is not met which impacts the buses serving the wider
communities on the islands.  On Arran these bus services are also critical to school
transport.  The impact of unreliable ferry services therefore disrupts residents, school pupils
and tourists.  Furthermore, residents and visitors disembarking at Ardrossan being
inconvenienced by relying on rail travel which is similarly synchronised with expected ferry
arrival times.   
Road Equivalent Tariff (RET) has led to substantial increases in vehicles on the islands and
the lack of integration between the ferry and bus services further exacerbates this.  Ferry
services should be suitably flexible to respond to local pressures associated with RET.  For

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example, campervan restrictions are currently applied on some routes on the network but
there is not currently flexibility to extend this to other routes where required. 
There needs to be a clear, transparent process for decision making at both strategic and
operational levels.  The island communities need to be able to understand what they can
influence and how.  There also requires to be clear communication channels for example
through Ferry Committees.  Ferry operations need to be better explained, for example
regarding costs, worker’s hours legislation, safety considerations regarding cancellations
and ferry infrastructure resilience. 
A fit for purpose fleet requires to be provided that can sustain the required level of
provision. It is the current case that there is extremely limited or no capacity to ensure
service provision during routine maintenance and emergency repairs to ferries. Additional
capacity requires to be provided in the fleet to provide adequate cover for down time
associated with routine and emergency maintenance.
There is also a strong need for improved communications regarding the ongoing
procurement process and its delivery programme.  At present much of the information
comes via media channels first rather than directly from the Government.  This is
unacceptable for the community and its businesses who need to be kept fully abreast of the
programme and any issues that arise in a timely manner. 
North Ayrshire Council does not operate ‘Council-run ferries’ and therefore has no
experience or evidence to present on support required.  However, the Council would be
interested to learn and understand the feasibility of alternative operating models.  North
Ayrshire Council is a Community Wealth Building Council and as such supports plural
ownership of the local economy and maximising the return and value of assets to achieve
social, economic and environmental outcomes for the benefit of local communities and
business.  We would seek to maximise Community Wealth Building outcomes as part of
any alternative delivery model that was being considered. 
Ardrossan to Brodick is the busiest route on the CalMac network but has amongst the
highest rate of cancellations on the network.  While these cancellations are partly due to
weather conditions and the dated infrastructure at Ardrossan, the proposed new vessels
with their increased reliability and manoeuvrability should reduce the rate of cancellations. 
Whilst we appreciate the significant investment planned for the harbour will transform the
port, there have been delays and meanwhile the infrastructure combined with the aging
ferry fleet, have had a major effect on the ferry reliability and overall the resilience of the
service. 
The Fraser of Allander report on the Impact of Covid-19 on the Arran economy identified
that on average, each day of ferry operation contributes just under £170,000 to the island’s
economy.  This effect is higher in summer months when tourist and passenger numbers are
high, and consequently lower during the winter months.  All of Cumbrae Primary school
teaching staff live on the mainland.  When the ferry does not operate the school has to
close. All Secondary School provision is on the mainland therefore disruption also affects
access to secondary education and in some cases return travel.   
The current relief vessel arrangements for the Cumbrae route also result in a loss in
sailings due to the available suitable vessels, travel time and the alternative arrangements
required for these to come into service.  In some cases this includes engineering
modifications to vessels and provision of alternative crews due to the vessel’s crew not
having received the necessary training to operate the route.

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This recently resulted in a loss of service overnight from 3pm with circa 60 people being
unable to travel from the island and circa 100 cars on the mainland.  Due to these
cancellations, individuals were unable to access medical and respite services and, in some
cases, return home.  There are no ferry staff on the island therefore passengers are not
provided with support in these circumstances. 
Whilst it is noted that the MV Loch Ridden will be replaced under the Small Vessels
Replacement Plan, this will not provide an immediate solution.  It would be beneficial if
relief vessels and crews could offer flexibility of service across the network to reduce the
timescales required to bring them into service and improve network resilience.   
Question 2: What institutional and funding arrangements would most likely deliver service
patterns, vessels, and crewing arrangements that meet the needs of current and potential
future ferry users? 
- Can the current tri-partite arrangement (Transport Scotland, CMAL, Ferry Operator) for
managing most ferry service provision be improved?
- Can current tendering arrangements be improved, e.g. through service unbundling?
- Can Scottish Government subsidies be better deployed to meet the needs of current
and future ferry users?
- Are current services providing best value for the taxpayer? 
NAC Response: 
More transparency and explanations are required as to why certain decisions are made
regarding operational matters.  This includes decisions in relation to timetables, vessels,
shore infrastructure, demand and weather resilience.  Early engagement would also be
beneficial on factors such as procurement of new vessels, need for new infrastructure and
potential disruption due to any new construction, costs and demand. 
The current tri-partite arrangement is complex and limits transparency of decision making. 
Roles and responsibilities are unclear and there are substantial areas of overlap.  Within
the current arrangement discussions and decision processes are often restricted due to
confidentiality and government limitations.  Some documents can be so complex that they
give little information unless the reader has at least some knowledge of the process. 
Clear mechanisms to provide feedback on service provision would be beneficial.  This
should outline roles and responsibilities for the organisations involved and detail how
feedback will be collated and used.  At present the stakeholder process is broken with no
one organisation having a clear responsibility to respond to issues or address weaknesses
in service provision. 
Ongoing financial commitments, with cross-party support, are required to deliver on service
and vessel plans.  Port infrastructure responsibility and funding is fragmented with
ownership sitting between national government, local authorities, and private port
management.  This needs to be addressed to ensure alignment of vessels and
infrastructure. 
Greater transparency is also required regarding the support per route and costs per route
might better explain the subsidies to users and non-users.  This should be set against the
benefits brought about by serving remote communities.  With regards to ‘best value’,
greater explanation of the costs would better inform opinions on what is best value. The

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current service provided is perhaps regarded as costly in respect of frequency and fares,
however it appears that it compares well with other ferry services to remote communities
elsewhere, issues surrounding the resilience of the current fleet not-with-standing.  Further
clarity and transparency would be welcomed. 
A clear definition as to what constitutes value for money is required.  There is no clearly
defined process to deliver value for money.  The operator delivers to a contract and many
examples have been highlighted that value for money is often prioritised to provide benefit
for operator.  The cost of failure to deliver the services to the communities is often
considered as the loss of income to the operator.  Contingency planning is often influenced
by excessive estimated costs for the operator without recognising the costs of the failures
to the islands’ economies. 
Question 3: What vessel size, type, deployment and crewing arrangements would best
satisfy the needs you have identified? 
- Vessel size and type
- Sustainable propulsion systems (including energy-use and moves to low carbon
systems)
- Compatibility with harbour facilities
- Onboard crew accommodation
- Current procurement criteria and processes: what are their strengths and weaknesses?
Are they “future proofed” to accommodate new technologies and the need for
sustainable low-carbon travel? 
NAC Response 
Further clarity would be welcome on the role of this Committee and how it will align with the
Island Connectivity Plan’s (ICP) development. It is noted that many of the questions set out
here are being considered via the ICP therefore it is important to have a coordinated
approach and avoid duplication of effort. 
It is critical that island communities and the recognised Ferry Committees are fully involved
in these discussions. Their local knowledge and day-to-day experience of the vessels and
services is invaluable. The decision-making process should be fully informed by a robust
Islands Impact Assessment. 
The lack of vehicle capacity has resulted in many services being fully booked in advance on
the Ardrossan to Brodick route or large queues and waiting times on the Largs to Cumbrae
route.  This often resulting in residents being unable to travel to the mainland at relatively
short notice. There is a growing level of frustration within the communities over the
uncertainty of their services, the number of cancellations and the uncertainty of when the
new vessels will finally enter service. The lack of resilience has also resulted in significant
reputational damage to the islands with many visitors reluctant to book trips out of fear of
cancellations.  This is having a substantial impact on island businesses. 
Future ferry procurement needs to fully involve the local community to ensure that the new
vessels will meet their needs. The most consistent view from the Isle of Arran community is
for a reliable two-boat service all year round. On the Isle of Cumbrae there is an aspiration
for a passenger only summer service between Largs and Millport.  The Procurement needs
to be undertaken sufficiently far in advance to allow an adequate lead-in time for delivery
before the reliability of the outgoing vessels becomes an issue and to ensure that the

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harbour infrastructure requirements are in place. The emerging Islands Connectivity Plan
(ICP) as a replacement for the Ferries Plan should explore other options to the traditional
large bespoke vessels.  For example, this could consider the use of smaller, cheaper and
more flexible vessels that could provide a more reliable service. 
We note the intention to introduce hybrid ferries at Ardrossan.  Future procurement should
focus on proven technologies to ensure continuity of service.  Whilst we recognise the
desire and ambition to look at new technology, this should not be at the expense of the
connectivity of our island communities.  Tried and tested technology and engineering
should be used to help ensure that the delivery programme can be achieved. Similarly,
whilst the challenges of designing a ferry fleet to meet the varying needs and
circumstances across the network is recognised, consistency would be beneficial in the
design of these vessels wherever practical.  A more consistent design, rather than bespoke
vessels for each route, would allow also for easier maintenance and flexibility across the
network. This would also help ensure that suitable infrastructure can be built and
maintained at the relevant ports as well as the alternative refuge ports.   
The ICP also needs to consider how to improve the environmental credentials of our ferry
services.  As noted above, trialling new technology such as the dual-fuel hybrid technology,
should not be at the expense of the reliability of lifeline services.  High quality digital
infrastructure is also required, such as robust online ticketing systems for all routes, to
support these lifeline services and their economies. 
Ferry services should promote and support the use of sustainable public transport and
active travel on the islands to reduce the impact of RET and contribute to achieving net
zero.  For example through incentivising the use of sustainable travel for onward journeys. 
This would also assist in ensuring the viability of public transport on the islands for
communities.  All bus services on Arran and a number of services on Cumbrae are
currently subsidised as they are not commercially viable.