§ 8. Mr. Barry FieldTo ask the Secretary of State for Scotland what progress he is making in the reduction of ferry subsidies.
§ Lord James Douglas-HamiltonShipping subsidies in total are falling. Lower oil prices and higher carryings have reduced the deficit subsidy of Caledonian MacBrayne in recent years. P and O's fare subsidy has been increasing with increasing traffic, but for the current year has been limited in real terms.
§ Mr. FieldMy hon. Friend will be aware that the Isle of Wight has some of the highest unsubsidised ferry fares, if not in the EEC certainly in the United Kingdom. Having visited St. Kilda and read the sad history of that Scottish 169 island, may I ask whether my hon. Friend agrees that the British taxpayer is subsidising the Scottish Highlands and Islands to ensure that that sad history is never repeated? Will he drive home that point to the petty Opposition parties which are intent on destroying the Act of Union?
§ Lord James Douglas-HamiltonI am grateful to my hon. Friend for acknowledging that there are approximately 100,000 persons living on 75 Scottish islands, which is considerably fewer than the number of people who live in his constituency.
The ferries are very much regarded as a lifeline service. We are doing all that we can to ensure that there should be value for money. The new CalMac board will include people with commercial and shipping experience, as well as first-hand knowledge of the islands. The board will be asked to look for more efficient and cost-effective ways of delivering the same standard of service. As I have said, CalMac's subsidies have been falling, but P and O's have been marginally increasing.