HC Deb 31 March 1995 vol 257 cc836-7W
Mr. Gallie

To ask the Secretary of State for Scotland if he intends to set targets for Caledonian MacBrayne for 1995–96. [18276]

Mr. Lang

I have decided to set the following targets for Caledonian MacBrayne for the year 1995–96. The company will be required to achieve as a financial target that fares income should meet at least 58 per cent. of operating costs, including depreciation charged 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 84p per passenger car unit capacity kilometre. As a quality of service target, the company will be asked to achieve a figure of 97 per cent. of sailings arriving on time, excluding sailings which are delayed or cancelled for safety reasons, for example, adverse weather conditions. I consider that the setting of these targets will provide a clear framework for the operation of the company in 1995–96, which is consistent with the Government's objectives of securing continued improvement in operational efficiency and standards of service.