HC Deb 14 May 1996 vol 277 c433W
Mr. Charles Kennedy

To ask the Secretary of State for Scotland what is the subsidy to be paid to Caledonian MacBrayne Ltd. for the financial year commencing 1 April 1996; what it was for the year ended 31 March; how much of the difference in the figures is attributable to the withdrawal of the Kyle of Lochalsh-Kyleakin service; and if he will make a statement. [29240]

Lord James Douglas-Hamilton

Subject to approval of the estimates, the Government propose to make available to Caledonian MacBrayne Ltd. in 1996–97 revenue deficit grant amounting to £11.7 million. The amount of revenue deficit grant made available to Caledonian MacBrayne in 1995–96 was £8.3 million. The increased requirement for revenue deficit grant in 1996–97 reflects a number of factors, including the loss of the revenue contribution from the Kyle of Lochalsh-Kyleakin service and the cost of compliance with additional safety requirements applying to ro-ro ferries. It is not the Government's practice to disclose information about the profit or loss incurred by Caledonian MacBrayne Ltd. in providing ferry services on individual routes.