§ Mr. Corrieasked the Secretary of State for Scotland what financial assistance he proposes for shipping services to the Scottish islands in 1987–88; and if he will make a statement.
§ Mr. RifkindI propose to give a deficit grant of £6.9 million to Caledonian MacBrayne. For the second year running the company has performed well and made significant cost savings, particularly on fuel, which it expects to continue next year. Its funding requirement is therefore lower than this year. For P and O services to the Northern Isles, I propose to make available grant of £4.0 million and for the bulk shippers with whom I have undertakings I will make provision for grant of £1.35 million.
Total revenue support next year will be £12.25 million.