Colonsay, Coll and Tiree (Lifeline Flights)
To ask the Scottish Government what action it will take to secure lifeline flights from Oban to the islands of Colonsay, Coll and Tiree, which are to be withdrawn by the operator from 16 May. (S4T-01005)
First, I make it clear that the process that is being carried out by Argyll and Bute Council does not affect our own public service obligation routes. We will be increasing frequency on the Glasgow to Barra, Tiree and Campbeltown routes from October, following discussions with the communities concerned. We will also take delivery of the first of our two new aircraft for those routes this Thursday.
In respect of the services that operate in Argyll and Bute, Transport Scotland officials have spoken with the council and with Hebridean Air Services. We understand that both parties have reached satisfactory compromises on a number of points but have not yet reached a final agreement. I am informed that, in the absence of an agreement, the current operator, Hebridean, has had to suspend ticket sales for flights after the end of the current contract period. Although the council indicated on Saturday that it would run a new tender exercise, I understand that it is still exploring options to avoid that, and to avoid any break in services. I know that both parties recognise the lifeline nature of the services and I hope that they can—and I urge them to—reach an agreement shortly.
The minister will know that the dispute is totally unnecessary. I am reassured by his answer. Hebridean Air Services is keen to continue negotiating, but the council issued what can only be described as an inflammatory press release on Saturday, in which it announced a new tender process. Is the minister aware that, as recently as 7 April, Hebridean Air Services was named as the preferred bidder, with a full-marks score for pricing, and that, on 24 April, the council said that it was looking forward to a mutually agreed solution? How can it be that, on Friday afternoon at 4.45, Argyll and Bute Council issued an email to the company that introduced new conditions and refused to accept the tender, given that the service had to be suspended on 2 May under European law? Was that a reasonable and responsible thing for any council to do, given the lifeline nature of the services?
As in any procurement process, the council must operate within the law. It must also consider any potential state aid implications with subsidies of this nature. Ultimately, the council must decide on a course of action, weighing up the advice and the benefits that the services bring to remote communities. In essence, it is a judgment call for the council taking all the factors into account.
I appreciate Michael Russell’s concern about the matter. He has raised the issue with me and I have had a conversation with the council leader and the chief executive. It would have been wrong of me to interfere with a procurement process, but I think that Mr Russell is absolutely right to urge an urgent and satisfactory resolution so that the communities concerned will not be adversely affected. I understand that we appear to be getting closer to an agreement. That being the case, we would all urge Argyll and Bute Council and Hebridean Air Services to reach that resolution and satisfy the local community.
The gap between the parties is £43,000 on a tender worth £700,000, the price of which has remained unchanged since 2001. There is a solution in place that is not affected by state aid—that is a Harry Potter-type spell that Argyll and Bute Council keeps weaving whenever anybody challenges it. I ask the minister to ensure—if he can—that his officials, particularly those in Transport Scotland, play a positive role in helping Argyll and Bute Council to be where it should be: at the negotiating table, ensuring that the matter is resolved before the withdrawal takes place.
I am more than happy to agree to that. I said to the leader of the council and the chief executive last week that, if our officials in Transport Scotland can assist—not prejudicing any procurement exercise—I would be content for them to do so. Once again, I offer civil servants and officials to support the process as proactively as possible—indeed, to provide brokerage if that is required.
Two members want to ask supplementary questions. I say to both of them that the question is about secure lifeline flights from Oban to the islands of Colonsay, Coll and Tiree. Provided that that is what their supplementary questions are about, I am happy to call them.
I fully share Mr Russell’s concerns. Will the minister confirm that if a public service obligation is not used for 12 months, it lapses? Will he ask his officials and Argyll and Bute Council to investigate the use of the regional air connectivity fund, which has helped routes in the Highlands and Islands previously? Does he share my view that a new European Commission-compliant route development fund will help lifeline services in the future?
I am more than happy to explore all those points and provide more detail for the member. However—to be frank about the matter—I suspect that the current situation is more to do with the negotiating process than with any other technical matter. Do I think that there is a better way in which to handle such a procurement exercise? The Government has learned lessons from the way in which it has handled its own procurement, but the matter is outwith our control and is about the end of negotiations. I will get back to Mr Stewart with more detail on the areas that he has touched on in his question.
Is the minister aware that Hebridean Air Services uses a different kind of fuel for its aircraft from that which is used for almost all other air services in Scotland? Only the Orkney and Shetland services use similar fuel, and only they pay duty on that fuel—no other air service does. That is probably a five-figure sum per year for Hebridean Air Services. Will the minister raise that anomaly with United Kingdom ministers the next time he has the opportunity to talk to them, so that the playing field will be levelled a bit for Hebridean Air Services—and, indeed, for the Orkney and Shetland services?
I can confirm to the chamber that I was not aware of the fuel specification of the aircraft in question. I do not have the information that the member requires to hand, but I am happy to take his question away and supply him with further information.