Thiswill reflect, for example, the type of vessels required, the route distances involved,the service levels required (e.g. in terms of frequency) and the fares to be charged.However, the final level of subsidy is determined through a competitive tenderingprocess, required under European law, in which shipping operators bid for the subsidycontract.In cases where a service couldnot be seen as “lifeline”, in that the communities involved are not wholly or mainlydependent on the service for their transport connections, a different approach maybe taken. In such cases, a cap may...