§ Mr. Grimondasked the Secretary of State for Scotland if he will make a statement on the future of the shipping services to the North Isles of Orkney.
§ Mr. MaclayI have asked Colonel H. W. Scarth, the Convener of Orkney County Council, to take the initiative in forming a new company to provide shipping services to the North Isles of Orkney, and he has agreed to do so. The members of the new company will include a strong representation from the North Isles.
When the new company is formed it can enter into an agreement with the Government for assistance under the Highlands and Islands Shipping Services Act to maintain and improve the services. The agreement would provide, among other matters, for the appointment of Government Directors as Chairman and Vice-Chairman of the new company, and I intend to appoint Sir Douglas Thomson of the Ben Line, who has been advising me on the shipping problems involved, and Colonel Scarth to these posts. I am very grateful to these gentlemen for agreeing to undertake this public service for which they have told me that they do not wish to receive any remuneration.
It has already been announced that the Government are prepared to provide vessels for this service and to charter them to a suitable operating company. Designs for suitable ships have been prepared and tenders have been taken and are at present being considered.
27WAny agreement entered into between the Government and the new company under these arrangements will be subject to the approval of Parliament, but it is hoped that the necessary authority will be obtained and the new company assume responsibility for the services as soon as possible after the Summer Recess. Discussions are meantime taking place with the Board of the Orkney Steam Navigation Company, who provide the present services but wish to be relieved of them, about the transfer of responsibility.