HC Deb 30 June 1992 vol 210 cc492-4W
Mrs. Ray Michie

To ask the Secretary of State for Scotland what criteria are applied to those ferry routes operated by Cal-Mac in the highlands and islands which are in receipt of subsidy; and if he will make a statement.

Lord James Douglas-Hamilton

[holding answer 29 June 1992]: Under the terms of the undertaking between my right hon. Friend and Caledonian MacBrayne Ltd. deficit subsidy is paid to the company to support certain approved services considered necessary to maintain or improve economic or social conditions in the highlands and islands area. The Government are committed to continuing to provide financial support for essential lifeline services to the islands.

Mrs. Ray Michie

To ask the Secretary of State for Scotland if he will make it his policy to obtain a breakdown of profits and losses incurred on individual Cal-Mac ferry routes in receipt of subsidy; and if he will make a statement.

Lord James Douglas-Hamilton

[holding answer 29 June 1992]: No. My right hon. Friend does not consider it justified to require the company to make commercially sensitive information about operating surpluses and deficits incurred on individual routes. The company's annual report and accounts for 1991, presented to Parliament on 27 May 1992, identifying the operating deficits and surpluses realised by the company in respect of groups of services defined by area of operation.

Mrs. Ray Michie

To ask the Secretary of State for Scotland if he will tabulate the total subsidy to Cal-Mac ferries for 1991–92 giving administration costs, staff salaries, ferry maintenance and direct passenger fare subsidy; and if he will make a statement.

Lord James Douglas-Hamilton

[holding answer 29 June 1992]: The company's annual report and accounts for the calendar year 1991, which were presented to Parliament on 27 May 1992, contain the information requested in respect of deficit subsidy, staff costs and ferry maintenance costs.

The accounts, prepared in accordance with accounting standards, do not separately identify administration costs. Deficit subsidy is intended to eliminate the overall deficit incurred by the company in operating a network of approved services and is not related to different categories of traffic—for example, passengers.