Comhairle nan Eilean Siar

Mr Keith Brown MP
Minister for Transport
Scottish Government
Victoria Quay
EDINBURGH
EH6 6QQ

16 February 2012

Dear Mr Brown,

ROAD EQUIVALENT TARIFF: CHARGING FOR COMMERCIAL VEHICLES

I refer to previous correspondence and our recent meeting in Edinburgh, and would thank you for ensuring the issue of a quick response by Transport Scotland on 13 February 2012, giving details of the amendments to the charging scheme for small commercial vehicles, and of the transitional arrangements for larger commercial vehicles.

Comhairle nan Eilean Siar considered the statement at our full Council meeting on 15 February 2012. Members of the Comhairle also met representatives of the Outer Hebrides Transport Group (OHTG) earlier in the day and, following both these meetings, I would like to make the following points for further consideration and discussion.

First of all, I would wish to emphasise the Comhairle’s total support for the RET Scheme, which the Comhairle believes, from sound local knowledge, has brought significant economic and social benefit to the Outer Hebrides community. The Comhairle remains of the view, however, that the current proposals, taking into account the Transport Scotland announcement of 13 February, in regard to the withdrawal of RET for commercial vehicles will be detrimental to the economy and community.

The Comhairle acknowledges that the proposed scheme represents an improvement from the previous position of total withdrawal of RET from commercial vehicles. Nevertheless, the Comhairle cannot welcome a scheme which includes the possibility of 50% increases in fares for commercial vehicles, in the full knowledge of the impact this will have on the islands’ economy.

Accordingly, the Comhairle requests that Scottish Government re-instate RET for commercial vehicles until the evaluation referred to in the statement of 13 February 2012 has been completed. It is unusual for a study and evaluation to take place during a time of transitional arrangements, and the Comhairle would suggest that it is in all parties’ interests – Scottish Government, the Comhairle, the Outer Hebrides community and commercial operators – that the study is allowed to evaluate the full operation of RET on the basis of objective evidence.

Over the past week, the Comhairle commissioned preliminary assessment of Government’s proposals to help us understand the potential impacts. The results of this preliminary analysis suggest that the impacts, in terms of jobs, will be a loss to the local economy of circa 100 FTE. As you will appreciate this would be a significant and highly damaging impact for a fragile, peripheral economy such as the Outer Hebrides. You will be aware from the meeting that the commercial sector strenuously denies that the benefits of RET were not passed on to local consumers.

In order that appropriate local knowledge and local market intelligence is provided, there may be value in a Comhairle official being part of the Steering Group overseeing the proposed evaluation. This may also assist transparency around the evaluation and we would be happy to release a Comhairle official to assist in this regard.

The Comhairle supports the campaign of the OHTG to seek to reverse Scottish Government’s proposals to remove RET from commercial vehicles, and will continue to work with the group as regards this element of its work.

On a related matter, the Comhairle welcomes the changes to the charging regime for small commercial vehicles and, in the spirit of consistency, would request that this change also be made in respect of small commercial vehicles using the Sounds of Harris and Barra services. The Comhairle would also wish to see RET applied to these services as soon as possible, and in time for the new financial year beginning 1 April 2012.

The Comhairle will consider its further response, as part of our response to the Ferries Review, at our Transportation Committee on 7, and our full Council meeting on 8, March 2012, and looks forward to further discussions with Scottish Government on this vital issue, which is so important to the economy and wellbeing of the Outer Hebrides.

Kind regards.

Yours sincerely,

Angus Campbell
Leader,
Comhairle nan Eilean Siar