HC Deb 18 January 1984 vol 52 cc312-3
10. Mr. Wallace

asked the Secretary of State for Scotland what measures he proposes to take to reduce transport costs in the Highlands and Islands.

Mr. Ancram

My right hon. Friend has made major increases in subsidy for shipping services and has maintained support for the Highland and Island aerodromes and for certain essential air services. We intend to continue those policies.

Mr. Wallace

The islanders do not begrudge the subsidy provided so far, but does the Minister recall that the Select Committee found an overwhelming desire on the part of the islanders for the introduction of road equivalent tariff? What is the timetable of the Scottish Office to give substance to the commitment made by the Secretary of State in his statement on 28 July 1981 that the Government would stand by their manifesto pledge to move towards road equivalent tariff?

Mr. Ancram

If the hon. Gentleman looks at the level of subsidy over the last four years he will see that we have been fulfilling the commitment that was made in the manifesto in 1979. However, we have been giving further consideration to the system of subsidy, taking into account, among other things, the recent Monopoly Commission report on CaLMac. My right hon. Friend hopes to make an announcement on shipping subsidy levels for 1984–85 soon and to announce his conclusions on the system at the same time.

Mr. Donald Stewart

I acknowledge the substantial assistance that has already been given to shipping services in the west and north, but does the Minister recollect that there was a firm commitment to move towards a system of road equivalent tariff? Since this was given in 1979 and we are now five years on, is it not time that the Government took the next step, closed the gap and introduced RET without further delay?

Mr. Ancram

I should perhaps remind the right hon. Gentleman of the figures. When we came into office in 1979 the subsidy figure for that year was £4.2 million. The equivalent figure for 1983–84 is £12.3 million. That is not only a very large cash increase but a large increase in real terms. I do not see how he can possibly say that that is not a fulfilment of the commitment we made in the 1979 manifesto.

Dr. Godman

On a point of order, Mr. Speaker.

Mr. Eadie

On a point of order, Mr. Speaker.

Mr. Speaker

Points of order take up Question Time, so I will take them after Members' questions to the Solicitor-General for Scotland.