Controversial private sector giant Serco has been awarded the franchise to run vital ferry links for Shetland and Orkney.
The firm were up against Calmac for the lucrative deal awarded by the SNP Government yesterday.
Serco are already under pressure for a catalogue of problems with their Caledonian Sleeper rail deal. They have also been condemned for their role in asylum seeker evictions in Glasgow.
In July, the firm was fined £19.2million for fraud and false accounting over its electronic tagging service for the UK Government’s Ministry of Justice. Mick Cash, of ferry workers union the RMT, said the decision was a “disgraceful sellout” of passengers and workers.
The Scottish Government said the £345million contract will bring benefits to islanders.
Islands minister Paul Wheelhouse said cabin fares will be reduced by 20 per cent between Aberdeen, Orkney and Shetland.
