§ 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.