§ Mr. Corrieasked the Secretary of State for Scotland what financial assistance he will pay to shipping services to the Scottish islands in 1982–83.
§ Mr. YoungerI propose to offer the following revenue grants in the forthcoming financial year:
Caledonian MacBrayne Limited £6.12 million Orkney Islands Shipping Company Ltd £1.05 million The corresponding sums offered last year were £5.8 million and £0.85 million respectively.
I also propose to increase from £1.9 million to £2.4 million the assistance I give to traffic on the roll-on/roll-off service to Orkney and Shetland operated from Aberdeen and Scrabster by P & 0 Ferries Ltd. Early discussions will take place with Orkney and Shetland islands councils on the application of this level of assistance within the present broad arrangements for reducing freight and passenger charges.
In addition, I intend to offer assistance of up to £1.05 million to the bulk shipping companies to allow them to continue making tariff reductions on their North Isles and West Coast rates and charges. In the case of P0 and the bulk shipping companies, actual grant disbursed wall depend on the level of demand for their services.
In total, I would expect Government revenue support in 1982–83 to amount to just over £10.6 million, an increase of 16.5 pe cent. over the corresponding sum £9.1 million—which I estimate will be disbursed this year. This increase represents further progress in the fulfilment of our commitment to increase in real terms Government assistance to sea transport services to the islands communities.