HC Deb 30 June 1981 vol 7 cc335-6W
Mr. John MacKay

asked the Secretary of State for Scotland what plans he has for the sea transport services between Gourock and Dunoon.

Mr. Younger

These services are at present operated by Caledonian MacBrayne Ltd., a fully-owned subsidiary of the Scottish Transport Group, and Western Ferries Limited, a private operator. Traffic is not sufficient to sustain two competing operators and a heavy loss on MacBrayne's services, amounting to £800,000 in 1980 alone, is borne by the taxpayer. A heavy loss is expected to continue on an annual basis and after careful examination of the position, I have informed the Scottish Transport Group and Strathclyde regional council of my intention to cease to subsidise MacBrayne's service.

I also intend, subject to the approval of Parliament, to enter into an undertaking with Western Ferries Ltd. under the Highlands and Islands Shipping Services Act 1960. 1 would propose to use these powers to offer Western Ferries a capital grant not exceeding £300,000 towards providing another vehicle ferry to operate between McInroy's Point and Hunters Quay, Dunoon. In order, to cater for the needs of the commuting public, Western Ferries is prepared at my request to provide a high-speed pedestrian passenger service between Gourock pier and Dunoon pier. I hope that it will be possible for this service to begin on 1 October, and if necessary I am prepared to underwrite this service by some financial support, but only for its first full year of operation. Thereafter, if the service is commercially viable, Western Ferries undertakes to continue it. If for any reason Western Ferries is unable to continue the Highland Seabird service, pedestrians will be taken on a through bus between Gourock and Dunoon by way of McInroy's Point and Hunters Quay.

The Scottish Transport Group has indicated its intention to give public notice of the withdrawal of its service. Its decision will, in terms of the legislation, lead to the consideration of this matter by the Transport Users' Consultative Committee for Scotland, which may put forward recommendations to me. It is my intention to consider the recommendations of this committee before any undertaking with Western Ferries is put into effect.

I have no proposals to withdraw subsidies from any other Caledonian MacBrayne service which I am now assisting.