Chamber and committees

We have no plans for an updatedevaluation, we will of course continue routinely to review the operation of theSmall Business Rates Relief Scheme.

The Executive providedbidders with a clear and thorough Invitation to Tender and a wide range of informationrelevant to the contract. In addition, the Executive responded to specific requestsfor additional information, with this information circulated to all bidders. This was intended to allow bidders to scopethe contract requirements accurately and to avoid the need for them to undertakesignificant data gathering. Much of the information was provided in electronic format,allowing bidders to manipulate or analyse it relatively simply. In addition, the Executive has recently introduced electronic tendering arrangements for procurementexercises such as this and tenderers for the Northern Isles ferry contract had theoption of submitting their bid and other associated information using this mechanism.These arrangements should have reduced tenderers’ staff costs, given the less intensivenature of the arrangements, and their printing and postage costs. The Executive’s improvementsto the quality and accessibilityof information available for tenderers, anticipated the later findings of the AuditorGeneral in his Report on the Northern Isles Ferry Services contract (published on22 December 2005). The Auditor General acknowledged the steps which the Departmenthad taken to provide more detailed information in the tendering exercise for bidssubmitted on 1 December 2005 (Auditor General’s Report paras 22, 27 and 3.22-23). Ministersalso made it clear at that point that they would implement any recommendations bythe Auditor General that had implications for funding of subsidy in future tendercontracts.

The Executive is satisfiedthat it provided bidders for the Northern Isles Ferry Service contract with asmuch information as possible to allow them to construct a fully informed bid. Allthree companies invited to tender for the contract received a full Invitationto Tender document, which included a detailed service specification andbackground information. They were also given equal access to informationprovided by the current operator on the current service levels, contractualarrangements, staffing and benefits, carryings, route revenue, operating costsby route and vessel specifications. In addition, copies of the draft contractdocumentation were made available. Information on the port and terminalfacilities was provided by the harbour authorities.

In addition, in response torequests for further information on specific issues, the Executive issued toall the tenderers a total of 26 Circular Advice Notes containing as much of thefurther information requested as could legally be provided. In addition, thetenderers were given access to the vessels for inspection both at sea and indry-dock, and to the maintenance records of the vessels.

The Executive’s improvementsto the quality and accessibility of information available for tenderersanticipated the later findings of the Auditor General in his Report on theNorthern Isles Ferry Services contract (published on 22 December 2005). The AuditorGeneral acknowledged the steps which the Department had taken to provide moredetailed information in the tendering exercise for bids submitted on 1 December 2005(Auditor General’s Report paras 22, 27 and 3.22-23). Ministers also made itclear at that point that they would implement any recommendations by theAuditor General that had implications for funding of subsidy in future tendercontracts.

The Executive is takingforward proposals for the provision of ferry services on the Tarbert toPortavadie and Gourock to Dunoon routes, and elsewhere on the Clyde and Hebridesnetwork, in a non discriminatory way, in line with the Maritime CabotageRegulation. The Executive is tendering on the basis of Public ServicesContracts (PSCs). The Executive considers that a single PSC for theGourock-Dunoon ferry service and another single PSC for the rest of the networkoffer the certainty and security of a set service specification that will bewelcomed by Cowal residents, residents served by the rest of the network andall other users of the ferry services. Public Service Obligations (PSOs) wouldnot provide that certainty and security of service nor deliver on the Executive’skey policy objectives. Consequently there is no need to consider, nor do weintend to consider, issues arising in relation to PSOs.

The primary objective of theAir Discount Scheme is to facilitate greater social inclusion in the mostperipheral areas of the Highlands and Islands through affordable access to air services to themain economic and administrative centres of Scotland. Arrangements forbooking onward connecting flights are a matter for participating airlines whereof course there is considerable consumer choice both in terms of airline;destination and fares.

The primary objective of theAir Discount Scheme is to facilitate greater social inclusion in the mostperipheral areas of the Highlands and Islands through affordable access to air services to themain economic and administrative centres of Scotland. Passengers travellingfrom the main Scottish airports to other parts of the United Kingdomalready have a great range of fares, destinations and competing airlines.

The Air Discount Scheme (Aidof a Social Character Scheme) notified to the European Commission allows the Scottish Executive to offer a discount of up to 50% on the core air fare oneligible routes. This gives the Scottish Executive the flexibility, within theavailable budget, to raise the discount up to that level at a future date.

Residents of peripheral andremote communities in the Highlands and Islands have had access to discounted air fares under the AirDiscount Scheme since 18 May 2006.

The Scottish Executive willmonitor the effectiveness of the Air Discount Scheme and will in due course decide,within the available funding, whether to re-notify the scheme, or a revised scheme,to the European Commission.

The information requestedcould only be provided at disproportionate cost.