Isles of Scilly ferry project 'needs a rethink'

The government has told the Council of the Isles of Scilly to rethink its approach to a £48m project to replace ships which serve the islands.

The project to replace ferries and vessels has been earmarked for cash from the Levelling Up fund.

However, the government was unhappy with the approach taken with a business case for the project.

The council said it was disappointed, but the government's feedback showed its "commitment" to the islands.

Under the scheme the £48m would be used to buy three new vessels and carry out harbour works which will support the new vessels and accessibility requirements.

The current vessels need to be replaced which would not only safeguard the future of the service but could also provide benefits for residents, businesses and visitors, the Local Democracy Reporting Service said.

Transport minister Robert Courts has told the council that it needs to rethink the approach as the current business case does not comply with public contracts regulations and could also fall foul of rules around competition.

The minister warned that this could result in a legal challenge which could result in a "significant cost" for the council and the Isles of Scilly Steamship Group.

Mr Courts said that the government was committed to the project and said that a development grant would be made available to help complete the work required to draw up a new business case.

In his letter to the council he stated: "As we all recognise, the proposed investment marks an important moment for the Isles of Scilly, as it will put in place a new fleet of vessels to maintain these lifeline link services."

Robert Francis, chairman of the Council of the Isles of Scilly, said: "Whilst this represents a significant change to the approach originally proposed by the council and its partners, it provides further confirmation of the government's commitment to ensure these vessels are delivered and the future of the sea link services secured.

"When I met the minister recently to discuss the project, I took the opportunity to stress the need for government help to ensure the existing sea link services are supported prior to the new vessels being introduced.

"The response has been very positive with a commitment from the government to provide development funding to allow us to continue to work to put in place the plans the minister requires."

There are currently three vessels which provide services to the Islands and operated by the Isles of Scilly Steamship Group.

The vessels - Scillonian III, Gry Maritha, and Lyonnese Lady - are reported to be "nearing the end of their economic lives, and are increasingly out of service causing major disruption to visitors, the community and Scilly's economy".

Three new replacement vessels will cost £44m and then there is the need for £8m of works to be done to the harbours where they dock.

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