A NEW long-term strategy is needed for Scotland’s ferry services which have seen spending more than double in the past ten years, according to the public spending watchdog.

A report today from Audit Scotland said the full extent of future spending on the services by Transport Scotland – the Scottish Government agency in charge of national transport spending – was not known, but “could be substantial”.

The watchdog said Transport Scotland supported 32 ferry routes through three main contracts and, overall, the operators were performing well.

Spending on ferries rose by 115 per cent between 2007/08 and 2016/17, going from £97.3 million to £209.7m – with subsidies to operators doubling to £168.7m.

Audit Scotland said the agency had made significant progress in its current ferries plan, although it was largely focussed on the Clyde and Hebrides routes. Major developments lay ahead, including reducing fares to the Northern Isles from 2018, but the full costs of these were not known. Substantial investment was required in harbours, but its full extent was also unclear.

This was said to underline the need for a new, long-term strategy, covering all of Scotland, to determine and prioritise future investment.

The report recommended that Transport Scotland improves its procurement arrangements for ferry services, after finding weaknesses in provisions for the recent Clyde and Hebrides contract.

As the agency only received one compliant tender, it was not required to analyse the 350 commitments made by CalMac in its successful bid. Audit Scotland said this meant it cannot fully show the added value that the new contract will provide. The contract was awarded from last October at a cost of £868m over eight years, but Transport Scotland expected this to increase to reflect planned timetable and other changes and estimated the current cost at £975m.

Fraser McKinlay, the watchdog’s director of performance audit and best value, said: “As it stands, Transport Scotland does not know the full extent of future spending requirements on ferry services and assets and it will find it difficult to provide these services within its allocated budget.

“With so many developments ahead, Transport Scotland needs to make important spending decisions. Its future investment priorities must be based on ferry users’ needs and good information on the benefits that services provide.”

Transport Minister Humza Yousaf said: “All of our investment is subject to strict financial control and management, and we will continue to support our ferry networks and the communities that depend on them.”