A new draft contract setting out the proposed conditions for the re-tendering of the ferry service to Orkney and Shetland was published today by the Scottish Executive.

The draft specification sets out the terms and conditions an operator must fulfil as part of the new contract to operate the Northern Isles ferry services.

Among the proposals is confirmation that a single contract will be issued for all routes to the northern isles - in other words the routes will not be split and issued to separate contractors.

Other proposals are:

• The current level of service on routes schedules and timetables;
• Use of the same ports and harbours;
• Fares based on the current rates, with Ministerial approval required for any other changes;
• including freight and livestock in the new contract;

Consultation will now take place with local communities, including both Orkney and Shetland Councils, business interests and other stakeholders, with responses due by Friday 16th July.

Transport Minister Nicol Stephen said: "This consultation is important in seeking the views of everyone in Orkney and Shetland on the future contract arrangements for these vital lifeline ferry services. I am very keen to hear from everyone who has an interest. This is a crucial opportunity for local interests to have an input in shaping the re-tendering process.

"We want to move this process forward as quickly as possible so that we can re-let the contract to allow for new arrangements to be in place next year. It is very important, however to allow a reasonable period for consultation, so that I can consider carefully all of the views raised before we invite tenders. By building on the terms of the existing contract and by making clear our intention to include freight and livestock we want to ensure we get the best possible deal for passengers and for the local economies."

Ten shipping operators noted an expression of interest in operating the ferry services following the recent advertisement in the Official Journal of the European Union. After the responses are analysed, a shortlist of those companies will be invited to tender.