Ferry tariff scrapping upsets operators
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SCOTTISH road transport operators have expressed disappointment at the Goverment's decision to scrap Its 1979 election commitment to introduce road equivalent tariff subsidies for Western Isles ferry services (CM, February 25).
Last week's announcement by Scottish Secretary George Younger finally killed the commitment to pay subsidies eventually at a rate equivalent to that of running a lorry over the same distance by road.
Instead, subsidies to the various shipping companies are being raised by 9.9 per cent, with the State-owned Caledonian MacBrayne company getting £7.2m for its Clyde and Western Isles routes, P&O Ferries £3.65m for its Orkney and Shetlands routes, the Orkney Islands Shipping Company £900,000, and £1.6m going to bulk shippers.
Mr Younger said RET would not have distributed subsidy to where it was most needed, and as heavy capital spending was soon needed for new new ferries (like Calmac's Oban-Mull vessel), it was vital that money should be available for the necessary work.
But it is thought that the cost was probably the final blow, as full RET — to which the Government had not put a date — would have cost around £24m In support against the 1984/85 commitment of £13.35m subsidy.
Nevertheless, Freight Transport Association Scottish controller Gordon Dougall told CM he was disappointed that the Government had been unable to honour its 1979 pledge.
Mr Dougall said the issue of RET would never be dead, but the short-term aim must be to seek subsidy increases greater than inflation.
Already, Calmac has agreed that its increased charges next year should amount only to about 2.5 per cent for commercial vehicles, against a five per cent increase for other users.