HC Deb 19 December 1989 vol 164 c148W
Sir Hector Monro

To ask the Secretary of State for Scotland what proposals he has for shipping subsidies for sea transport services in Scotland in 1990–91; and if he will make a statement.

Mr. Rifkind

Subject to parliamentary approval of the estimates I propose to make available in 1990–91 total subsidy provision of £11.628 million. The deficit subsidy for Caledonian MacBrayne will reduce, in line with recent trends in the company's increased carryings and reduced costs, to £5.438 million. The estimated requirement to continue the fares reduction support for P and O services to Orkney and Shetland is increased to £4.6 million. On the basis of budgets submitted by coastal shippers within the tariff rebate subsidy scheme, the funding requirements next year will be £1.59 million.

These proposed levels of subsidy reflect the Government's continuing commitment to assisting the essential sea transport services to the Western and Northern Isles.