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Chamber

Meeting of the Parliament 23 February 2012

23 Feb 2012 · S4 · Meeting of the Parliament
Item of business
Road Equivalent Tariff (Commercial Vehicles)
Our position is stated in the motion. We want a proper socioeconomic impact assessment.

Where and when in 2007 did anybody in the Labour Party say that we were against RET? I have looked for that and cannot find it other than in statements from the SNP saying that we were opposed to RET.

Mr MacNeil has commented many times on how essential it is that RET be retained. Indeed, I understand that his Scottish Parliament colleague Dr Alasdair Allan was originally supportive of the campaigns by his constituents and facilitated a meeting between hauliers and the Minister for Housing and Transport on 7 February. Prior to that, he expressed the view that

“businesses will make … a robust case for the retention of RET”.

The meeting duly took place, although invitations were extended only to a select few and some were offended that they were not allowed to come and make their point. Indeed, the Outer Hebrides transport group, which was recently formed to support the hauliers’ case, was disappointed to be offered only a 45-minute meeting with the minister on an issue of such importance to its members after travelling such a long way for the meeting.

I will be fair: the meeting was productive to the extent that the limit for eligibility to receive RET was extended from 5m to 6m, although I do not know whether that is intended to apply to all routes or only the Western Isles routes.

The following day, the Outer Hebrides transport group met Western Isles Council to call for a review of the proposals—something similar to what we are calling for. The council leader, Angus Campbell, commented that there had been an

“overwhelming response from the local business community condemning the proposals to remove RET on commercials as having a serious economic detriment in terms of job losses across a range of sectors.”

To be fair to the minister and Transport Scotland, there was further movement on 13 February, when Transport Scotland announced a transitional relief scheme under which the Scottish Government would subsidise 50 per cent of the increase in year 1 and cap any increase to a maximum of 50 per cent of the RET fare. A similar formula would be applied in years 2 and 3. That would mean that, for example, if the non-RET fare was twice the RET fare, the haulier would pay 50 per cent the increase in year 1, 75 per cent in year 2 and 87.5 per cent in year 3.

However, increases on some routes would still be significant. As of April this year, under the transitional scheme, the fare for a 17m vehicle on the Ullapool to Stornoway route would increase by £95.48 and on the Oban-Coll-Tiree route by £98.72.

Western Isles Council was not convinced. On 15 February, it unanimously passed the following resolution:

“The Comhairle is of the view that the current proposals by Scottish Government in regard to the withdrawal of RET for commercial vehicles will be detrimental to the economy and community of the Outer Hebrides;

The Comhairle requests that Scottish Government withdraw its proposals as regards the withdrawal of RET for commercial vehicles until the evaluation, referred to in the announcement by Transport Scotland on 13 February 2012, has been completed”.

Given that the motion was passed unanimously, I presume that the council’s half-dozen SNP councillors supported it or at any rate did not turn up to vote against it. After the motion was passed, the OHTG wrote to its MSP, Dr Allan, expressing its satisfaction at the council’s position and asking for his

“clear, and equally unambiguous support in conveying this message to Transport Minister Keith Brown.”

I understand that, on Tuesday, the group received a reply from Dr Allan, advising that he had made its views clear to the transport minister.

I also believe that the OHTG wrote directly to Mr Brown observing that

“the Comhairle requests that Scottish Government re-instate RET for commercial vehicles until the evaluation ... 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.”

Our motion seeks the same—that a moratorium is declared on the RET changes

“until a full and proper socioeconomic study has been carried out”.

As for the Government’s amendment, the OHTG says:

“It is riddled with nonsense”.

That is a bit cruel but I think that, as usual, it is self-congratulatory and complacent.

I move,

That the Parliament notes that the road equivalent tariff (RET) scheme has brought significant benefit to the Outer Hebrides, Coll and Tiree; is of the view that the current proposals to withdraw RET from larger commercial vehicles will be detrimental to the social and economic wellbeing of these islands and communities, and calls on the Scottish Government to enforce a moratorium on the fare increases until a full and proper socioeconomic study has been carried out to assess the impact that increased transportation costs will have on households, local employers and island hauliers.

10:31

In the same item of business

The Deputy Presiding Officer (John Scott) Con
The next item of business is a debate on motion S4M-02087, in the name of Elaine Murray, on the withdrawal of the road equivalent tariff from commercial vehi...
Elaine Murray (Dumfriesshire) (Lab) Lab
I feel a bit like the filling in a sandwich—I apologise if some members find it rather unsavoury.The Scottish Government introduced a road equivalent tariff ...
The Minister for Housing and Transport (Keith Brown) SNP
I understand the point that Elaine Murray is making about other peoples’ points of view, but I am anxious to get to the Labour Party’s position. Is the party...
Elaine Murray Lab
Our position is stated in the motion. We want a proper socioeconomic impact assessment. Where and when in 2007 did anybody in the Labour Party say that we we...
The Minister for Housing and Transport (Keith Brown) SNP
We welcome this debate on what is, as I think Elaine Murray said, a vital issue for our island and rural communities. I am sure that everyone here recognises...
Elaine Murray Lab
Will the minister give way?
Keith Brown SNP
I want to get started—I will let the member in later on.Elaine Murray should also look at the comments of a Labour candidate in 2011 who advocated scrapping ...
Rhoda Grant (Highlands and Islands) (Lab) Lab
The minister asks about the representations that Labour made, but the Government was absolutely silent on the issue during the budget process. Indeed, the bu...
Keith Brown SNP
The amount being spent on this was made clear in not only the budget, but John Swinney’s autumn statement. We also subsequently made it clear to hauliers wha...
Dr Alasdair Allan (Na h-Eileanan an lar) (SNP) SNP
I very much welcome the minister’s commitment to undertaking a proper study of the economic situation of hauliers and other companies. Will he extend that st...
Keith Brown SNP
I find it very interesting that, as seems to have emerged today, that particular rebate will not apply to hauliers. I wonder whether we will hear more about ...
Rhoda Grant Lab
Will the minister give way?
Keith Brown SNP
No. I have already taken an intervention from the member—and it was not a very good one. The additional costs to CalMac alone—Interruption.
The Deputy Presiding Officer Con
Order!
Keith Brown SNP
The additional petrol cost to CalMac alone is around £14 million. There have been cost increases, and there is no doubt that everyone is having to bear them....
Elaine Murray Lab
Does the minister not accept the contention that the reason that the savings could not be passed on in their entirety was because of things such as fuel cost...
Keith Brown SNP
I have already acknowledged some of the fixed costs that hauliers have to contend with and that increase the pressures on them. All that I would ask is wheth...
Rhoda Grant Lab
Will the minister give way?
Keith Brown SNP
The member has had a chance, and Labour will get another one when it sums up to say whether that is its position. Our clear objective since announcing the ro...
David Stewart (Highlands and Islands) (Lab) Lab
Will the minister take an intervention?
Keith Brown SNP
I am sorry, but I still have a fair bit to go and I have already taken two or three interventions. We want to alleviate the impact of removing RET from hauli...
Tavish Scott (Shetland Islands) (LD) LD
I support Elaine Murray’s motion, which is sensible and constructive, and I cannot for the life of me see why the minister is against it. When a minister has...
Mike MacKenzie (Highlands and Islands) (SNP) SNP
Will the member take an intervention?
Tavish Scott LD
No—I want to make progress.The nationalists have moved the policy forward, which is good, despite the fact that they ran the longest trial in political histo...
David Stewart Lab
Will the member take an intervention?
Tavish Scott LD
I want to finish a couple of points.I do not normally get telephone calls and representations from people in other constituencies about shipping, although I ...
The Deputy Presiding Officer Con
You must close now.
Tavish Scott LD
Last night I asked the minister to meet the local industry and the council to find an immediate solution, and I reiterate that request today.The Government n...
The Deputy Presiding Officer Con
Close and move your amendment, please, Mr Scott.
Tavish Scott LD
I am just finishing this point, Mr Scott.The debate is an opportunity for the minister to be constructive and to listen to local representations. I urge him ...