§ Mr. Raymond S. RobertsonTo ask the Secretary of State for Scotland if he intends to set targets for Caledonian MacBrayne.
§ Lord James Douglas-HamiltonMy right hon. Friend has decided to set the following targets for Caledonian MacBrayne for the year 1993–94. The company will be required to achieve as a financial target that fares income should cover at least 59 per cent. of operating costs, including depreciation on a replacement cost basis and provision for an 8 per cent. forgone rate of return on capital. As an efficiency target, the company will be asked not to exceed a maximum unit cost of £1.04 per passenger car unit capacity kilometre. As a quality of service target, the company will be asked to achieve a figure of 96.5 per cent. of sailings arriving on time, excluding sailings which are delayed or cancelled for safety reasons, for example, adverse weather conditions. My right hon. Friend considers that the setting of these targets will provide a clear framework for the operation of the company, consistent with the objectives of securing continued improvement in operational efficiency and standards of service.