§ Mrs. Ray MichieTo ask the Secretary of State for Scotland what tariff rebate subsidy will be applied to the bulk transport of timber; and what plans the Government have to reduce the rate or abolish the scheme.
§ Lord James Douglas-HamiltonThe bulk transport of timber currently attracts a TRS rate of 40 per cent. Arrangements for 1994–95 have not yet been finalised.
§ Mrs. Ray MichieTo ask the Secretary of State for Scotland what estimate he has made as to the number of extra timber loads which will be transported by road in the west highlands following the termination of ship freight services; what assessment he has made of the cost in terms of repair and maintenance of trunk roads resulting from such extra loads; what studies he has made of the economic and environmental effect of such extra traffic on the areas concerned; and if he will make a statement.
§ Lord James Douglas-HamiltonIt is my understanding that Glenlight Shipping Ltd. is continuing to transport timber by sea within the highlands and islands area using the company's timber barge system. Glenlight Shipping Ltd. will continue to receive subsidy on such cargoes. In addition, other bulk shippers operating within the TRS scheme are eligible to receive subsidy for the carriage of timber.
Given the continuing operation of Glenlight's timber barge system as well as the availability of other bulk shipping operators to carry timber, it seems unlikely that there will be any significant transfer of timber transport to road in the west highlands area.
§ Mrs. Ray MichieTo ask the Secretary of State for Scotland (1) which bulk shipping operators will be undertaking the transport of goods which were previously carried out by Glenlight Shipping; when he expects the commencement of the service by alternative operators; what level of subsidy they are receiving; and if he will make a statement.
(2) what discussions his Department has had with freight shipping services following the collapse of the Glenlight Shipping company regarding the provision of life line shipping services to the Isles; if he will list the shipping services which have shown an interest in the routes currently served by Glenlight; and if he will make a statement;
(3) what consultation has been initiated or entered into by his Department with bulk shipping companies in order to operate the routes relinquished by Glenlight Shipping Services Ltd; on what dates these meetings took place; and which ministers or officials were involved.
§ Lord James Douglas-HamiltonGlenlight Shipping Ltd. has not collapsed. The company is still operating but has taken the commercial decision to discontinue bulk shipping operations in the highlands and islands area apart from the carriage of timber. The Scottish Office is continuing to provide tariff rebate subsidy to the company on the basis of eligible cargoes carried. In addition to Glenlight there are four other bulk shipping operators within the TRS scheme operating on the west coast. The 487W relevant companies are: Easdale Island Shipping Line, Gardner Shipping (Scotland) Ltd., Roderick Cunningham (Scalpay) Ltd. and Dennison (Shipping) Ltd. I understand that at least two of these shipping companies are already carrying cargoes for customers who were previously served by Glenlight Shipping Ltd. The Scottish Office maintains regular and frequent contact with shipping operators within the TRS scheme to discuss variations in traffic levels, the redistribution of TRS resources and other matters. In recent months the Scottish Office has had extensive discussions with Glenlight Shipping Ltd. and also with Easdale Shipping Line and Gardner Shipping (Scotland) Ltd., the two west coast bulk shipping operators that are most likely to carry the traffic previously carried by Glenlight.
The general rate of TRS subvention on the west coast is 40 per cent. for cargoes originating from the mainland and 30 per cent. for cargoes originating from the islands. Each company's TRS allocation is based on the company's estimates of traffic to be carried within the specified period and on previous years' actual traffic carried as compared with forecasts. Individual bulk shipping operators' allocations are commercially confidential. In 1993–94 provision of £3.130 million is being made available for bulk shipping services and £6.768 million for P and O Scottish Ferries Ltd., giving a total TRS provision of £9.898 million.