The future of Scotland’s only emergency tug boat has been secured after the UK Government confirmed it would fund the vessel for the next five years.

Fears were growing the Orkney-based service, which assists ships around the north and north west of the country, would be scrapped when its contract came to an end in September.

The UK Government confirmed on Wednesday it will continue to fund the vessel.

Transport minister Robert Goodwill announced the reprieve after seeking advice from the Maritime and Coastguard Agency (MCA).

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The Department for Transport decided there was a “strong case” for the UK Government to continue to support the “vital service”.

Mr Goodwill said: “The emergency towing vessel in Scotland saves lives and protects the Scottish coast from damaging pollution.

“I am delighted to confirm the UK Government has secured its future by providing funding for the next five years.

“This service is absolutely critical to ensuring emergency services can respond swiftly to incidents off the coast of Scotland.

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“We have taken this decision following extensive consultation by the Maritime and Coastguard Agency. This is an important measure to ensure maritime safety and pollution prevention measures in the waters around Scotland.”

The MCA review found the commercial towage market cannot currently reliably meet the need for a dedicated service to cover the seas around Scotland.

Scottish secretary David Mundell said: “I am very pleased that the UK Government can guarantee the future funding of the emergency towing vessel stationed in the Northern Isles.

“The islands’ councils have impressed upon us how important it is to maritime safety in the area.

“The UK Government has listened to what they have said, and is now able to secure the funding to maintain this vital safety vessel in the north of Scotland.”

The MCA extensively consulted local stakeholders, industry and the Scottish Government.

It will tender for a new five-year contract, which will seek to recover costs of the ETV from the shipping industry wherever possible.

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It is hoped the vessel could also take on low-risk commercial work in the longer term.

The moves have been tabled to cut the overall cost to the taxpayer, while funding additional patrolling and crew training.

Highland Council leader Margaret Davidson said she cautiously welcomed the news.

She said: “I am very pleased that the UK Government has recognised that there is an ongoing need to support a dedicated Emergency Towing Vessel (ETV) beyond 2016.

“We have been working closely with the MCA over the past year to make the case for the continuation and enhancement of the ETV service and I am very grateful to them for the genuinely collaborative approach they have taken.”