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<p>I can confirm that this is the same project for which the Isles of Scilly submitted
a Levelling Up Fund bid for £48.4 million in June 2021.</p><p> </p><p>DfT recognises
the potential benefits of a hybrid vessel, which can accommodate both passengers and
freights. These benefits will be considered to determine if a more frequent and efficient
service can operate, and potentially be extended to run over the winter months.</p><p>
</p><p>I wrote to the current operator advising that the proposal received from Isles
of Scilly Steamship Company, which sought to use public (levelling up) funding without
the need of competition, did not meet the public procurement requirement in the context
of the Levelling Up Fund. This position remains.</p><p> </p><p>The Council of the
Isles of Scilly are leading on the current survey to seek the islander’s preferences
for value for money, fares and freight costs, and a year-round passenger service as
opposed to a summer only service. DfT and the council have agreed that the results
of this survey will be shared with the public once available.</p><p> </p><p>The DfT
have advised the Council of the Isles of Scilly that it will take the lead on finalising
the ownership and delivery option for the Isles of Scilly Sea Links Project. The Council
of the Isles of Scilly will remain the accountable body and will be required to submit
any subsequent business case. As a levelling up funding project, the intention of
DfT is that that project remains compliant with public procurement regulations. It
also acknowledges the need for competition when procuring new vessels and operation
of services.</p>
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