Chamber and committees

The Climate Challenge Fund is due to open for applications in the next few weeks, at that point guidance and the outline of eligibility for communities wishing to apply for the fund will be announced.

To date the Scottish Government has not provided any specific policy advice to Calmac Ferries Ltd in respect of the use of low emission fuel, in light of the forthcoming Climate Change Bill. We will consider that issue as part of our overall response to the recent public consultation on proposals for a Scottish Climate Change Bill.

However, under the terms of the contract between Scottish ministers and Calmac Ferries Ltd, the ferry company is expected to comply with all relevant legislation relating to fuel emissions and to demonstrate good environmental practices. The ferry company will therefore be required to comply with the relevant provisions contained in any subsequent Scottish Climate Change Act.

The contract between the Scottish ministers and CalMac Ferries Ltd for the operation of the Clyde and Hebrides ferry services sets out the procedures for dealing with variations in fuel costs. Under the terms of clause 4.8 of the contract, an annual budget is agreed based on estimated fuel prices and the volume of fuel required to operate the services. If the price of fuel increases beyond the budgeted price set, then the Scottish Government will cover the cost of the difference by making a supplementary payment of grant. If the volume of fuel required increases beyond the budgeted volume set, then the operator bears the risk of any increase. A copy of the contract is available on the Scottish Government website at:

http://www.scotland.gov.uk/Topics/Transport/ferries-ports-canals/14342/Contract.

This is one of the issues that we will be considering as we develop The Scottish Government''s response to the European Commission''s investigation into the Scottish ferry services.

The study into road equivalent tariff (RET) has not yet considered how overnight cabin accommodation fares will be calculated. However, this is one of the areas that will be considered in developing proposals for the possible future roll out of RET across the Clyde and Hebrides and Northern Isles networks.

We aim to provide good quality public transport that is integrated, accessible and affordable and supports all communities, including those in less accessible or remote parts of Scotland.

No. The remit of the study into road equivalent tariff does not include an assessment of the future use of public service obligations. The aim of the study is to consider the impact of a reduction in the cost of ferry travel in Scotland by setting ferry fares at a road equivalent tariff.

The regional transport partnerships (RTP) revenue and capital budgets for (a) 2005-06, (b) 2006-07 and (c) 2007-08 were as follows:

Year	Revenue (£000)	Capital (£000)
2005-06	Nil	26,500
2006-07	5,200	47,900
2007-08	5,200	42,100

 

These figures are shown in the publication Scotland''s Budget Documents for each of the respective years (revenue figures are contained within the wider Modal Shift and Strategy budget line). Statutory RTPs were constituted from December 2005 and began receiving direct funding from 1 April 2006.

Public service contracts (PSCs) are in place for the Clyde and Hebrides and Northern Isles ferry services. The Scottish Government considers that these contracts are compliant with the European Commission''s State Aid rules and maritime law. Provision for PSCs is made in Article 4.1 of the European Commission''s Maritime Cabotage Regulation. These PSCs impose a number of obligations on the ferry operators providing these ferry services. Consequently, the Scottish Government has no plans to introduce public service obligations on these services.

Scottish ministers are currently examining the options available for taking the Gourock to Dunoon route forward. Until such time as a decision has been reached, The Scottish Government has no plans to vary the frequency restrictions on this route.