Chamber and committees

As noted in the Draft Ferries Plan, published on 21 December 2011, we recognise that for services not currently provided under contract to the Scottish Government or another public body, a Ferries Regulator could regulate the pricing and provision of services. The Draft Ferries Plan also indicates however that, regardless of any plans to encourage greater competition, it is unlikely that we would wish to leave any of the lifeline routes to be run without a contract.

Further details on the need for a Ferries Regulator will be made available in the Final Ferries Plan, to be published later in 2012.

Caledonian Maritime Assets Ltd (CMAL) harbour dues were increased in line with inflation in April 2012. Under the terms of their public service contracts with the Scottish Ministers, CalMac Ferries Ltd and Argyll Ferries Ltd can receive increased subsidies in respect of increases in the harbour dues levied by CMAL, local authorities and independent harbour trusts. This is in recognition that these costs are outside the control of the operator.

We are in the process of putting arrangements in place for the road equivalent tariff pilot for the Gigha, Colonsay and Islay services, including specific details of fare levels to be applied. Details of additional annual subsidy levels required are therefore not available at this stage. The road equivalent tariff pilot will include all services between Islay and the Scottish mainland and fares will be the same for all services between Islay and Kennacraig. Information about fare levels will be made available in good time for the pilot to begin in autumn 2012.

Our approach to ferry services will be set out in the final Ferries Plan which will be consistent with EU procurement, competition and State Aid rules.

The Draft Ferries Plan states that we intend to rollout RET to all lifeline ferry services. Where we are not responsible for the delivery of these services we will discuss the appropriate form and timing of any roll-out with those who are, e.g. local authorities or commercial operators. The timing of this action has still to be agreed.

The MV Finlaggan has a much increased carry capacity compared to the MV Isle of Arran so any direct comparison of fuel usage would be misleading. Despite only being some 5m longer, the MV Finlaggan can carry 25% more cars, 19% more passengers and, most significantly, 2.5 times more freight (by weight) than the MV Isle of Arran. The additional power requirements associated with this increased capacity mean that the MV Finlaggan consumes more fuel on the Kennacraig-Islay route than the MV Isle of Arran.

As stated in the Draft Ferries Plan, we will develop this approach further for the Final Ferries Plan.