Alasdair Allan MSP has welcomed “major progress” on the issue of ferry fares for commercial vehicles after Transport Minister, Keith Brown, announced a package of transitional relief, including £2.5 million this year (see below). Dr Allan says it will halve the rates of increase which hauliers would face this year.
Alasdair Allan said: “The Transport Minister said that he would listen to concerns of businesses on the islands when we met last week, and that he would come back with improvements to his original proposals.
“He has now done this, committing £2.5 million of Scottish Government funding to transitional relief this year, ensuring that the proposed rate of increase on all routes this year is cut by 50% and that all fare increases are capped so no fare increases by more than 50%.
“The Minister has also ensured that vans up to 6m long will also benefit from RET delivering major savings. Importantly all these measures will apply equally to small and large companies addressing one of the major problems of the old discount scheme from which only a small number of companies benefited. The Transport Minister has also agreed to conduct a six month study into the costs faced by hauliers and the economic impact they have including both ferry fares and fuel costs, information which will feed into the setting of the fares in the future.
“Today’s announcement is a major investment by the Government to avoid the sudden and extreme increases about which companies expressed very reasonable concerns and along with the investment in RET for cars is a sign of this government’s continued commitment to the islands.”
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SCOTTISH GOVERNMENT ANNOUNCEMENT
MILLIONS EXTRA FERRY FARES HELP FOR HAULIERS AND BUSINESSES
SUPPORT FOR COMMUNITIES AS PRE-RET REBATE SCHEME REPLACED WITH IMPROVED TRANSITIONAL ARRANGEMENTS
Transport Minister, Keith Brown, has announced extra financial help for all hauliers and businesses using ferry routes to the Western Isles, Coll and Tiree.
Today’s announcement:
• will provide an extra £2.5m next year to support new transitional arrangements for all commercial vehicles, regardless of size, using these routes
• will mean no haulier will see fares rises of more than 50% in any year
• will bring fare parity across all sizes of hauliers
• will see the Scottish Government work closely alongside hauliers and communities to lobby Westminster and other organisations on issues outside its control
• will work with key stakeholders and hauliers on a six month study to consider the broader socio-economic impact of ferry fares policy
This is in addition to extra help announced last week for all vehicles up to six metres qualifying for RET with potential savings of up to 50%. This represents investment of some £5.3m next year, and follows the recent decision to roll out Road Equivalent Tariff to all CalMac routes in Scotland for cars and passengers.
Mr Brown said: “We are determined to support our island and remote communities and underlined this last week with new arrangements for small commercial vehicles qualifying for RET on routes to Western Isles, Coll and Tiree. That announcement means all vehicles up to six metres in length will qualify for RET from April this year on those CalMac services, giving potential savings of up to 50%.
“Today we are providing more evidence of our commitment in support of those communities and all hauliers serving those communities. We are investing £2.5m on these transitional arrangements for larger commercial vehicles next year. This will ensure all hauliers, regardless of size, have access to the same support and that no fare will rise by more than 50% in any year over the transitional period.
“I had a constructive meeting with hauliers last week and one particular concern raised was that previous discount schemes had benefitted some hauliers more than others. By capping the rises all hauliers on any given route will pay the same. Before RET was introduced some large hauliers were able to claim rebates of a maximum of just 15% on their fares. We believe this new transitional arrangement will better support all hauliers with significant discounts available.
“While the meeting also recognised the budget pressures on the Scottish Government it was clear we must also recognise the external factors impacting on hauliers’ day to day business – like increase in fuel prices, VAT and insurance – all circumstances beyond the Scottish Government’s control and beyond the scope of what RET was set up to do. We would be very happy to listen further to hauliers and communities and work with them in lobbying Westminster and relevant organisations to ensure their concerns are heard and acted upon.
“Building on previous monitoring and evaluation of the RET pilot, we have agreed to work with key stakeholders and hauliers on a six month study which will look in detail at the broader socio-economic impact of ferry fares policy. This will bring additional clarity for all communities relying on ferry services to the Western Isles, Coll and Tiree.
“Our ambition is to see greater connectivity right across the Western Isles, Coll and Tiree, and our pilot has shown the scheme to have had a very positive impact on local economies, boosting the local tourist trade. We want to ensure that continues and for RET to be a permanent feature for passengers and cars on the current routes, while extending to include new routes across the West of Scotland.
Mr Brown added: “When we announced the roll out of RET, we pledged to listen, discuss and agree with hauliers a more flexible approach in the application of a transitional arrangement. We believe this arrangement is a more affordable and equitable approach which will help reduce the impact on affected hauliers and businesses, without compromising on the substantial benefits island communities right across the west of Scotland will accrue through an extended RET.”
A full note with illustrative tables can be found at http://www.transportscotland.gov.uk/water/ferries
Today’s announcement is in addition to extra help announced last week for small commercial vehicles qualifying for RET on Western Isles, Coll and Tiree routes, where savings of up to 50% could be realised for those vehicles. The change, which has been brought in early and comes into effect this spring, will see commercial vehicles up to six metres long – up from five metres – no longer be classified as commercial vehicles and qualify for the Road Equivalent Tariff on these CalMac services. See link for more info http://www.transportscotland.gov.uk/news/RET-qualifications-extended.
The Road Equivalent Tariff (RET) scheme involves setting ferry fares on the basis of the cost of travelling an equivalent distance by road. Typically RET would offer substantial fares reductions across almost all ferry routes in Scotland. A pilot has been running in the Western Isles, Coll and Tiree since October 2008 and is due to end in spring 2012
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