§ Mr. Bill WalkerTo ask the Secretary of State for Scotland what decisions he has reached on the location of the company headquarters for Caledonian MacBrayne Ltd. and the future of the company's services on the upper Clyde.
§ Lord James Douglas-HamiltonMy right hon. Friend has accepted the advice of the board of Caledonian MacBrayne Ltd. that, on grounds of cost effectiveness, the headquarters of the company should remain in Gourock. He welcomes, however, the company's commitment to Oban, as indicated by the substantial improvements made to shore facilities for passengers and commercial vehicles in recent years.
My right hon. Friend has also decided, in the light of current demand uncertainties, arising particularly from the proposed closure of the Holy Loch naval base, that arrangements for Caledonian MacBrayne's services in the upper Clyde, between Gourock and Dunoon and between Wemyss bay and Rothesay, should continue unchanged meantime. He will ensure, however, that the board of the company, and the Scottish Office, monitor the position closely over the coming months; and he has not ruled out privatisation of these services in the longer term.