EC approves Scotland’s ferry subsidies
published this on 12:33 pm, Wednesday, 28th October, 2009Business| Community News| European Union| hallowe'en | Comments (rss) | Respond | Ping |
Following an official enquiry the European Commission has ruled that Scottish Government subsidies for lifeline ferry routes on the Clyde, Hebridean and Northern Isles routes are ‘compatible with state=aid rules’.
There had been concerns that the arrangements breached European competition law.
No company is fault-free or mistake-free but. in our view, having CalMac and NorthLink as the companies responsible for delivering the services to Scotland’s west and north coast islands makes the best operational and economic sense.
CalMac has a long history of operational experience on these routes. It also is quick on the draw at emergency reshuffling of the pack when a ship goes down. It takes a great deal of flak, most of it undeserved – and it carries on ferrying. In our book this was the only decision to be made and it is good to see it done.
The company – and the taxpayer – have together been put through a lot of needless and expensive legal hoops to prepare for what could only have been the worst possible outcome for the islands – opening up tenders to private and inexperienced competition and cherry picking.
The European Commission has, though – and not unexpectedly, insisted upon the Gourock-Dunoon route being opened up for competitive tendering.
To pacify the agitators, the Commission has also said that it will, of course, monitor the Scottish ferry situation, to make sure that there is no ‘undue distortion of competition’.
Commenting on the news, Highlands & Islands MSP, Jamie McGrigor said: ‘I welcome the Commission’s ruling that the Gourock to Dunoon route now go to tender. This important route has been in limbo for far too long, and it is vital that the SNP Government come forward immediately with the detailed service specifications for the tendering of the route.
‘The previous Labour-Lib Dem Scottish Executive disgraced itself with its appalling handling of ferry tendering in the west of Scotland, and it’s vital that the SNP now get a long overdue grip of the situation. It is down to Stewart Stevenson to now tell local people what service they can expect in the future, rather than procrastinate as he and previous ministers have done in the past’.
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October 28th, 2009 at 12:42 pm
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October 28th, 2009 at 1:16 pm
Great news – and well worth the wait, particularly the requirement that there is no “undue distortion of competition” That makes the present ridiculous restriction on the Dunoon – Gourock Calmac ferry untenable.
October 28th, 2009 at 8:33 pm
Well done to Alyn Smith MEP for this result. Firstly it protects our lifeline services by securing the route from privateers who would be cherrypicking only the potentially lucrative routes. Secondly it confirms that Scotland is perfectly right to prioritise our Ferry Services by subsidising them and confirms that fair and correct amounts of subsidy have historically been paid.
Argyll and Bute is heavily reliant on our Ferry services so this is great news for our Communities.
As far as the Gourock/Dunoon service is concerned David is quite correct. I too interpret “no undue distortion of competition” as meaning “no restrictions” The way should now be open for the Tripartite group to progress an open and transparant public tender on the route in line with the community aspirations (and mandate). The detail of this will be closely scrutinised but the emphasis will be on who will provide the vessels. If we are to achieve a new service for spring 2011 this question needs nailed now. This will now be the focus of lobbying efforts on Stewart Stevenson to deliver where previous Transport Ministers (both lib dems and labour) have failed.
October 29th, 2009 at 12:29 pm
the snp came to power promising a ferry link from campbeltown to northern ireland . we are still waiting
October 29th, 2009 at 2:44 pm
Not for much longer. The NI officials have just agreed support in principle this week.
Or maybe you think we can run a ferry with a Scottish termonal but just throw the passengers off into the water at Ballycastle because the NI Administration isn’t invoved a the other end.
What a change from the last administration who allowed the operators to waltz off with the boats provided at public expense for this route.
Perhaps you imagine we can just whistle up boats out of thin air.
Just as daft as the rest of your posts
October 29th, 2009 at 4:40 pm
The relentless negativity of kintyre1 is almost an art form. If he is a Scot he must be the original “cannae Scot” -as in you “cannae” do this and you “cannae” do that.
Rev I M Jolly has found his natural successor.
October 29th, 2009 at 7:15 pm
can you put a date on the ferry restarting 2010? 2011? 2012?