Chamber
Meeting of the Parliament 22 May 2013
22 May 2013 · S4 · Meeting of the Parliament
Item of business
Ferry Services
I hope that the debate will give Keith Brown a chance to do rather better on this occasion—we all live in hope. This is the third time in the current parliamentary session that Scottish Labour has initiated a debate on ferry services, and that is for two reasons: first, ferries provide a lifeline service for our island communities; and, secondly, the Scottish Government has been responsible for a series of serious mistakes in its approach to ferry services.
With the publication of the long-awaited ferries review last December, a raft of fare increases was announced that will result in fares to the Western Isles, Coll and Tiree increasing by an average rate of 8.2 per cent and, with the removal of road equivalent tariff funding for commercial vehicles, increases of up to 10 per cent in fares for such journeys. The recently published analysis that was commissioned by the Scottish Government shows that the removal of RET is having exactly the impact that members across the chamber warned ministers about. The increased costs to hauliers and island households amount to a tax on island communities.
Given those findings, and given the debacle of the withdrawal of the NorthLink service from Scrabster to Stromness due to the breakdown of the Hamnavoe, it is no wonder that the minister declined our request two weeks ago that he come to the chamber to make a parliamentary statement on ferries. Today, we bring the issue to him, and we will look for answers on both those issues. We also wish to highlight our concern over the proposal from CalMac Ferries for significant pay cuts for its port staff, although I am more hopeful that we will find a consensus across the parties on that issue.
Let me begin with the removal of RET from commercial vehicles. The consultants’ report that was published in April showed that the decision had resulted in a “significant negative impact” on hauliers. The report’s importance was neatly summed up by Gail Robertson of the Outer Hebrides Transport Group, who said:
“It is an instructive document that clearly shows the devastating, negative impact the removal of cheaper fares are having on island families and businesses. We can appreciate why Keith Brown was reluctant to publish this document - it nails and dispels many assertions that were untrue.”
The consultants’ report highlights that the removal of RET for commercial vehicles has had a negative effect on the margins of small hauliers in particular and has necessitated an increase in prices for network hauliers.
The report also raised the concern that, as many parts of the Western Isles are characterised by relatively high levels of deprivation, if higher fares and transport charges lead to a reduction in income and employment, the outcome could be a worsening of the position.
With the publication of the long-awaited ferries review last December, a raft of fare increases was announced that will result in fares to the Western Isles, Coll and Tiree increasing by an average rate of 8.2 per cent and, with the removal of road equivalent tariff funding for commercial vehicles, increases of up to 10 per cent in fares for such journeys. The recently published analysis that was commissioned by the Scottish Government shows that the removal of RET is having exactly the impact that members across the chamber warned ministers about. The increased costs to hauliers and island households amount to a tax on island communities.
Given those findings, and given the debacle of the withdrawal of the NorthLink service from Scrabster to Stromness due to the breakdown of the Hamnavoe, it is no wonder that the minister declined our request two weeks ago that he come to the chamber to make a parliamentary statement on ferries. Today, we bring the issue to him, and we will look for answers on both those issues. We also wish to highlight our concern over the proposal from CalMac Ferries for significant pay cuts for its port staff, although I am more hopeful that we will find a consensus across the parties on that issue.
Let me begin with the removal of RET from commercial vehicles. The consultants’ report that was published in April showed that the decision had resulted in a “significant negative impact” on hauliers. The report’s importance was neatly summed up by Gail Robertson of the Outer Hebrides Transport Group, who said:
“It is an instructive document that clearly shows the devastating, negative impact the removal of cheaper fares are having on island families and businesses. We can appreciate why Keith Brown was reluctant to publish this document - it nails and dispels many assertions that were untrue.”
The consultants’ report highlights that the removal of RET for commercial vehicles has had a negative effect on the margins of small hauliers in particular and has necessitated an increase in prices for network hauliers.
The report also raised the concern that, as many parts of the Western Isles are characterised by relatively high levels of deprivation, if higher fares and transport charges lead to a reduction in income and employment, the outcome could be a worsening of the position.
In the same item of business
The Deputy Presiding Officer (Elaine Smith)
Lab
The next item of business is a debate on motion S4M-06658, in the name of Richard Baker, on ferry services. I inform members that timing is extremely tight, ...
Richard Baker (North East Scotland) (Lab)
Lab
I hope that the debate will give Keith Brown a chance to do rather better on this occasion—we all live in hope. This is the third time in the current parliam...
Kenneth Gibson (Cunninghame North) (SNP)
SNP
If the measure was so vital, why did the Labour Government not bring it in when it was in power prior to the Scottish National Party coming into office?
Richard Baker
Lab
Our commitment to RET was clear in our most recent manifesto. It is regrettable that the SNP has failed to stick to its commitments on this important issue.T...
Angus MacDonald (Falkirk East) (SNP)
SNP
The general consensus on the island of Lewis is that the hauliers did not pass on the benefits of RET, so perhaps the member should speak to some of those pe...
Richard Baker
Lab
The member should perhaps read the report that was commissioned by his own Government, which found that RET had been passed on by the hauliers. I can tell th...
The Minister for Transport and Veterans (Keith Brown)
SNP
Will the member give way?
Richard Baker
Lab
If I have time, I will take an intervention from the minister later.The second issue on ferries that we bring to the Parliament is one that Mr McArthur has r...
Keith Brown
SNP
I do, but it is on the member’s previous point. I just want to clarify something about RET. Is it the Labour Party’s position that RET should be applied to a...
Richard Baker
Lab
Mr McArthur’s amendment talks about a pilot. It seems to me that researching and studying the potential for the issues before we rule things out is not unrea...
The Minister for Transport and Veterans (Keith Brown)
SNP
We welcome the opportunity to discuss the commercial vehicles study. We commissioned it because we were determined to provide additional clarity for business...
Rhoda Grant (Highlands and Islands) (Lab)
Lab
Given that the minister commissioned the report, what cognisance of it will he take when he sets out the policy? Will he take the economic development of the...
Keith Brown
SNP
I have just mentioned that we have established a working group that will include broad representation from key stakeholders. In looking at the freight fares ...
Rhoda Grant
Lab
Will the minister give way?
Keith Brown
SNP
This will be my second and last intervention.
Rhoda Grant
Lab
I think that I made the suggestion that the minister has referred to. I said that the boat would pay for itself by working the secondary route between Mallai...
Keith Brown
SNP
I would have to check but I think that our estimated cost for the route runs into tens of millions of pounds. We cannot continue to spend money that we do no...
Liam McArthur (Orkney Islands) (LD)
LD
I, too, welcome this afternoon's debate and the opportunity that it provides to consider an issue of pressing importance to Orkney and the constituents whom ...
Kenneth Gibson
SNP
Will the member take an intervention?
Liam McArthur
LD
In a second.That impression was only reinforced by nods and winks from ministers to local councillors in my constituency that Orkney needed to elect an SNP M...
Kenneth Gibson
SNP
Yes. I am sorry, but I have almost lost my train of thought. If RET was introduced for the Western Isles for political purposes, why was it not introduced fo...
Liam McArthur
LD
It is not just me who has made the argument; across Orkney, the anger that people have felt at what they see as a lack of basic fairness on the part of the S...
Dave Thompson (Skye, Lochaber and Badenoch) (SNP)
SNP
Will the member take an intervention?
Liam McArthur
LD
No, I will not.Lessons need to be learned. The minister acknowledges that in his amendment and he accepted that during his visit to Orkney last Friday. Impro...
Mary Scanlon (Highlands and Islands) (Con)
Con
I thank the Labour Party for keeping ferry services on the political agenda.Although the motion is about more than RET, there is no doubt that the CalMac Fer...
The Deputy Presiding Officer
Lab
We now turn to the open debate, with speeches of four minutes at this stage.16:14
Kenneth Gibson (Cunninghame North) (SNP)
SNP
First, let me say how delighted my island constituents are with the improvements to ferry services that the Scottish Government is delivering. Tomorrow, for ...
Rhoda Grant
Lab
Will the member give way?
Kenneth Gibson
SNP
In a moment.The Tories also seem to be converts to RET. As for the Lib Dems, in 2004 the Lib Dem Minister for Transport, Nicol Stephen, said:“A road-equivale...
Rhoda Grant
Lab
I am listening to the nonsense that the member is talking. Does he genuinely expect us to believe that lower fares for all ferry travellers would not be a fa...