Criticism over ferry fare subsidy removal

THE Scottish Government has been criticised for a decision to remove a fare subsidy for ferries.

Opposition MSPs rounded on the SNP administration for allowing some fares to rise after a review of the Road Equivalent Tariff (RET), which sets prices around the equivalent of driving the same distance.

However, Transport Minister Keith Brown said everything possible was being done to make additional funding available for a transition scheme.

North East Labour MSP Richard Baker highlighted a report which found fares had risen. He said: “Now we have had the publication of analysis, by the Scottish Government itself, which shows the removal of RET is having the impact many members warned it would – increasing costs for hauliers and island households, amounting to a tax on island communities.”

The RET pilot scheme was introduced on routes serving the Western Isles, Coll and Tiree in October 2008. It was removed for commercial vehicles in April last year.

RET’s removal had a negative effect on the margins of small hauliers, squeezed the margin of trader-hauliers and reduced economies of scale, the report by MVA consultancy concluded.

Mr Brown said: “We have done everything possible to make additional funding available for a transitional scheme over the last two years of £4.5 million.”