§ Mr. WilsonTo ask the Secretary of State for Scotland what consultation took place with his Department over the proposed arrangements involving British Airways and Loganair on Scottish domestic routes; and if he will make a statement.
§ Lord James Douglas-HamiltonThese proposals are commercial matters for the parties concerned, although they provided advance notice of them to the Scottish Office. The Government welcome the commitment given by Loganair and British Airways to the continuation of air services in the highlands and island which are vital to the communities that they serve.
§ Mr. WilsonTo ask the Secretary of State for Scotland if he will list by route the subsidies currently paid by his Department in respect of domestic air services.
§ Lord James Douglas-HamiltonUnder the provisions of the Highlands and Islands Air Services (Scotland) Act 1980, my right hon. Friend the Secretary of State makes subsidy available for the operation of the lifeline air service678W between Glasgow and Tiree and Barra. Loganair operates the service under contract to the Secretary of State. Under the terms of the contract, which is for the period 1 April 1994 to 31 March 1998, subsidy of up to £115,000 per annum is provided to Loganair.