§ Mr. WelshTo ask the Secretary of State for Scotland what is the total amount paid in public subsidy to P and O in respect of its services on the northern isles routes; and if he will make a statement. [12721]
§ Lord James Douglas-Hamilton[holding answer 30 January 1996]: Total subsidy provision for the support of roll-on/roll-off passenger ferry services to Orkney and Shetland provided by P and O Scottish Ferries in 1995–96 amounts to £7.9 million.
§ Mr. WelshTo ask the Secretary of State for Scotland what is the Government's policy on the payment of subsidies to ferry companies providing services on the northern isles routes; and if he will make a statement. [12720]
§ Lord James Douglas-Hamilton[holding answer 30 January 1996]: The Government remain committed to providing the support which is necessary to ensure the continuity of essential passenger ferry services to Orkney and Shetland. After a competitive tendering process, the Government will award later this year a contract to operate passenger ferry services to Orkney and Shetland under new block grant arrangements. These new block grant arrangements reflect the Government's concern to ensure the viability of the essential passenger services to the northern isles and to obtain value for money from the substantial financial assistance which is provided to support essential shipping services to the islands.