Ferry service concerns as financial problems persist

Scilly Ferries' new catamaran vessel has arrived in Cornwall but all of this week's sailings have been cancelled.

Financial problems persist for parent company Harland and Wolff, whose chief executive resigned on Friday.

The government has turned down a request for a loan guarantee of up to £200m by the loss-making shipbuilder due to "a very substantial risk that taxpayer money would be lost".

Leading islands councillor Steve Sims said he was concerned and "the picture looked rosier last week". Harland and Wolff said they anticipated starting the service on 30 July.

Mr Sims, the lead councillor for Tourism and the Economy on the Isles of Scilly Council, said the picture was "confused".

He said: "Friday was quite depressing really because we got the news and we didn't know what was going to happen".

After originally promising to start in early May now the first crossing is scheduled on the 30 of July at 12:45 BST.

Mr Sims said: "It's caused a lot of problems... I don't think it's any secret that Harland and Wolff's communication could have been a lot better."

Michaela Badge works for the Shearings tour company, which, during the summer season, takes about 100 day-trippers to the islands every week.

Using the new service would give her guests a longer stay because the new crossing is due to only take 90 minutes, compared to 160 minutes - two hours and 40 minutes - on the existing ship, the Scillonian III.

She said: "We're all just watching with bated breath.

"We do not know which way it is going. You couldn't make it up but we're all so excited, hoping it does actually happen."

Harland and Wolff said: "We’re delighted to report Atlantic Wolff is ready for passenger operations and the crew are pushing hard with fine tuning to ensure that Scilly Ferries offers the very best service possible – and the fastest by sea - between Penzance and the Isles of Scilly from the anticipated start date of Tuesday 30 July ."

It declined to comment on the current financial situation facing the company.

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