Chamber
Meeting of the Parliament 22 May 2013
22 May 2013 · S4 · Meeting of the Parliament
Item of business
Ferry Services
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.
The report found—as we and many others said it would—that the removal of RET for commercial vehicles would lead to higher prices for islanders, with 88 per cent of businesses who participated in the survey noting that the increase in commercial vehicle fares had been passed on to their businesses.
The other key aspect of the findings is that, despite what Alex Neil said in the previous debate on the issue, the report concluded that hauliers had passed on the savings from RET to their customers. That is why Chris MacRae of the Freight Transport Association said that the report showed that the removal of RET from commercial vehicles was a grave mistake that resulted directly in price rises on the islands and the weakening of fragile economies. He also said:
“The logistics industry was incensed last year when the then Cabinet Secretary for Infrastructure and Capital Investment Alex Neil stated that hauliers were not passing on this benefit to islanders.”
He went on to say:
“The Report illustrates that the point made by Alex Neil and other MSPs to be without any foundation and we would ask the current Cabinet Secretary for Infrastructure and Capital Investment to issue an unreserved apology to the hard-working companies that do such work underpinning island economies.”
I am interested to know whether that apology will be forthcoming today and what material action the Scottish Government will take to rectify the mistakes that it has clearly made in removing RET from those commercial vehicles.
The report found—as we and many others said it would—that the removal of RET for commercial vehicles would lead to higher prices for islanders, with 88 per cent of businesses who participated in the survey noting that the increase in commercial vehicle fares had been passed on to their businesses.
The other key aspect of the findings is that, despite what Alex Neil said in the previous debate on the issue, the report concluded that hauliers had passed on the savings from RET to their customers. That is why Chris MacRae of the Freight Transport Association said that the report showed that the removal of RET from commercial vehicles was a grave mistake that resulted directly in price rises on the islands and the weakening of fragile economies. He also said:
“The logistics industry was incensed last year when the then Cabinet Secretary for Infrastructure and Capital Investment Alex Neil stated that hauliers were not passing on this benefit to islanders.”
He went on to say:
“The Report illustrates that the point made by Alex Neil and other MSPs to be without any foundation and we would ask the current Cabinet Secretary for Infrastructure and Capital Investment to issue an unreserved apology to the hard-working companies that do such work underpinning island economies.”
I am interested to know whether that apology will be forthcoming today and what material action the Scottish Government will take to rectify the mistakes that it has clearly made in removing RET from those commercial vehicles.
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...