§ Mr. Raymond S. RobertsonTo ask the Secretary of State for Scotland what plans he has to increase subsidies for shipping services to Orkney and Shetland; and if he will make a statement.
§ Mr. LangI announced on 17 December 1992, at column466, subsidy provision for shipping services 587W totalling £15,129 million in 1993–94, of which provision for services to and from Orkney and Shetland amounted to £6.679 million. I now intend to make available a further £1.934 million in the current year to increase the amount of subsidy available for services to Orkney and Shetland in 1993–94 to £8.613 million. The additional assistance will be provided to P and O Scottish Ferries Ltd. to enable it to maintain the present level of roll-on/roll-off services in respect of passengers and cars. The assistance will enable P and O to increase their commercial tariffs for passengers and cars, while keeping net tariffs, after tariff rebate subsidy, to users of the service unchanged. The increases in commercial tariffs are necessary to enable continued provision of the present level of services. No change is being made in subsidies to freight services.
§ Mr. Raymond S. RobertsonTo ask the Secretary of State for Scotland what proposals he intends to make regarding shipping services to the Scottish islands; and if he will make a statement.
§ Mr. LangI have decided to review the present arrangements under which I provide financial assistance to maintain lifeline shipping services to Orkney, Shetland, the Inner and Outer Hebrides and in the Clyde estuary. I also propose to review options for the future organisation and structure of Caledonian MacBrayne including the possible scope for introducing private sector participation in the provision of Caledonian MacBrayne's services.
Options to be studied will include continued public sector ownership of Caledonian MacBrayne as well as privatisation options; in the latter I will wish to explore the scope for greater employee involvement. I believe that the time is ripe for a further study of Caledonian MacBrayne following the transfer of the company's ownership to me in 1990.
The Government remain committed to providing continued financial support for lifeline shipping services to ensure that services can be provided at a cost to users which is consistent with the need to maintain and improve economic and social conditions in the islands.
The primary objective of these reviews is to explore the scope for improving the cost-effectiveness of the present arrangements in ways which are consistent with safeguarding the interests of the users of the services. I see greater efficiency and effectiveness in subsidy and service provision as leading to better services for the consumer, and wish to make it clear that our overall aim is to ensure that services are maintained and improved, and not in any way downgraded.
The Scottish Office Industry Department will shortly be inviting tenders for the necessary studies which will inform these reviews from suitable firms of economic and financial consultants.