Chamber
Meeting of the Parliament 22 May 2013
22 May 2013 · S4 · Meeting of the Parliament
Item of business
Ferry Services
We welcome the opportunity to discuss the commercial vehicles study. We commissioned it because we were determined to provide additional clarity for businesses and the local economies in the Western Isles, Coll and Tiree. We wanted to assess the socioeconomic impact on those communities of the removal of RET for commercial vehicles. The report was first published on Transport Scotland’s website on 26 April.
It is worth remembering that the decision to remove RET for commercial vehicles was partly a result of the cuts that Westminster imposed on us. It was a very difficult decision. Interestingly, this morning I was in Wales, where I listened to a report in which Carwyn Jones said that the Welsh Government had further difficult decisions to take because of cuts that it had experienced and cuts that it expected. Such realism is not evident among Labour members in this place, given their continued demands for more spending in virtually every area of Government.
We have done everything possible to make additional funding available for a transitional scheme. Over the past two years, we have provided £4.5 million for that. We have also introduced additional concessions and made a change that means that small commercial vehicles are now eligible for RET fares.
As the report said—and as Angus MacDonald pointed out—it is hard to assess the impact of the removal of RET against the background of the general economic situation in a recession. Between 2008 and 2012, there was a 16 per cent increase in haulage costs, which was primarily a result of increases in other costs, such as the 17 per cent increase in fuel costs, which account for a third of all haulage costs.
In the ferries plan that we published at the end of last year, which Richard Baker mentioned, we committed to use the study to inform the terms of reference for an overarching freight fares policy. Anyone who looked at the freight fares policy—and, indeed, the passenger fares policy—that the Parliament applied prior to 2007 would not be able to work out a rationale for why certain fares applied in certain circumstances while different fares applied in others. There was no objective rationale. We will try to provide such a rationale through the freight fares policy.
The need for that was confirmed in the report. Businesses in the Western Isles, Coll and Tiree stressed the need for a clearly defined long-term fares strategy. To take that forward, we have established a working group that will include broad representation from key stakeholders. The aim is to deliver a commercial vehicles fares structure for all Scotland’s islands that is fair, transparent and straightforward and which delivers the best value for taxpayers at a time of severe cuts to the Scottish Government’s budget. That is a stricture that any Government would have to adhere to.
It is worth remembering that the decision to remove RET for commercial vehicles was partly a result of the cuts that Westminster imposed on us. It was a very difficult decision. Interestingly, this morning I was in Wales, where I listened to a report in which Carwyn Jones said that the Welsh Government had further difficult decisions to take because of cuts that it had experienced and cuts that it expected. Such realism is not evident among Labour members in this place, given their continued demands for more spending in virtually every area of Government.
We have done everything possible to make additional funding available for a transitional scheme. Over the past two years, we have provided £4.5 million for that. We have also introduced additional concessions and made a change that means that small commercial vehicles are now eligible for RET fares.
As the report said—and as Angus MacDonald pointed out—it is hard to assess the impact of the removal of RET against the background of the general economic situation in a recession. Between 2008 and 2012, there was a 16 per cent increase in haulage costs, which was primarily a result of increases in other costs, such as the 17 per cent increase in fuel costs, which account for a third of all haulage costs.
In the ferries plan that we published at the end of last year, which Richard Baker mentioned, we committed to use the study to inform the terms of reference for an overarching freight fares policy. Anyone who looked at the freight fares policy—and, indeed, the passenger fares policy—that the Parliament applied prior to 2007 would not be able to work out a rationale for why certain fares applied in certain circumstances while different fares applied in others. There was no objective rationale. We will try to provide such a rationale through the freight fares policy.
The need for that was confirmed in the report. Businesses in the Western Isles, Coll and Tiree stressed the need for a clearly defined long-term fares strategy. To take that forward, we have established a working group that will include broad representation from key stakeholders. The aim is to deliver a commercial vehicles fares structure for all Scotland’s islands that is fair, transparent and straightforward and which delivers the best value for taxpayers at a time of severe cuts to the Scottish Government’s budget. That is a stricture that any Government would have to adhere to.
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...