HC Deb 15 July 1981 vol 8 cc1166-7
8. Mr. Grimond

asked the Secretary of State for Scotland if he is now in a position to announce a decision on a road equivalent tariff or alternative methods of assistance over freight and transport to islands.

Mr. Younger

My hon. Friend the Member for Edinburgh, Pentlands (Mr. Rifkind), in the Scottish Grand Committee on 18 June 1981, said that we hoped to make an announcement before the Summer Recess.

That remains the position.

Mr. Grimond

I am grateful for the assistance offered to further companies trading with Orkney, but it is becoming urgent that the general policy should be made known so that it can be discussed. May I take it that there will be an opportunity for debate when the Secretary of State makes his announcement?

Mr. Younger

I thank the right hon. Gentleman for what he said. The reason why this matter is taking rather longer to straighten out than we had hoped is that there are varying opinions about whether RET is desirable. I am anxious to take into account all representations before making a decision. I shall pass on to my right hon. Friend the Leader of the House the right hon. Gentleman's view that we must have some time to debate the matter. I support that view.

Mr. Donald Stewart

Before rejecting the RET formula, if that is what is in the right hon. Gentleman's mind, will he bear in mind the suggestions from the Highlands and Islands Development Board that adjustments and variations within the formula are possible? Will he also bear in mind that the main thing is to extend the excellent start on assistance which has been made to ensure an economic transport system for the Scottish islands?

Mr. Younger

I am taking into account all factors, including those which the right hon. Gentleman mentioned. As he suggested, our main contribution in the last two years has been to increase the grant to Caledonian MacBrayne from £3.7 million in 1979 to £5.8 million in 1981. I believe that that is real help for those in the islands.

Mr. John MacKay

When my right hon. Friend announces his decision, will he consider adding some riders about what happens in Norway, where, contrary to the widely held belief, RET does not operate? Will he accept from me that the most important help that he can give is to commercial traffic from the islands? If we cannot have RET because of the various complications that all the bodies have pointed out to him, can we concentrate the help on commercial traffic?

Mr. Younger

I note what my hon. Friend has said. I agree that it appears that there is not, as people thought there was, a uniform and neat system of RET in operation in Norway. We are trying to work out such considerations.