Chamber
Meeting of the Parliament 22 May 2013
22 May 2013 · S4 · Meeting of the Parliament
Item of business
Ferry Services
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 Ferries staff pay cuts, the impending industrial action and the problems relating to the catastrophic failure of the Hamnavoe are worthy of debate, given how important those lifeline services are to the communities that they serve.
My colleague Jamie McGrigor attended the TSSA union briefing last week. We have a lot of sympathy for the onshore staff, particularly those who face a reduction in their salary from £22,000 to £18,000.
We do not wish to take any side on this issue. Like others, we urge the minister to ensure that constructive talks take place between unions and management. Every member of staff has an important role to play, whether onshore or on a boat. We would not support strike action, which would affect ferry services to fragile island communities that are dependent on such services. We hope that a settlement can be reached soon.
The news of the mechanical failure on the Hamnavoe was devastating for all travellers, but it was not nearly as devastating as it could have been had there not been the alternative of the no-subsidy service across the Pentland Firth, run by Andrew Banks of Pentland Ferries, from St Margaret’s Hope in Orkney to Gills Bay. I regret that the Government failed to thank Pentland Ferries in its amendment, but I listened carefully to the minister’s speech and I think that there was almost some gratitude there, which I think Mr Banks is worthy of. He has ensured that people and traffic continue to cross the Pentland Firth despite the temporary loss of the state-subsidised service.
On the third issue in the Labour Party motion—RET—the Scottish Government’s public relations approach to the cutting of RET in alleging that local hauliers did not pass it on is probably in the same category as Argyll and Bute Council’s approach to Martha’s meals, but the difference is that the council apologised to Martha, whose success in Malawi continues to grow. No such apology has been forthcoming for the Western Isles local hauliers. To blame them for not passing on the gains from RET to their customers was not only unfair and lacking in understanding of haulage costs but, predictably, it caused significant anger at the lack of empathy and understanding of the full impact on island communities and life.
We very much welcome the report by MVA Consultancy entitled “Impact of the Removal of RET Fares from Commercial Vehicles on The Western Isles, Coll and Tiree”. It confirms that the removal of RET for commercial vehicles
“in April 2012 has had a significant negative impact ... on the volumes and margins of small hauliers ... squeezed the margin of trader-hauliers ... necessitated an increase in prices for network hauliers”.
The figures are there for all to see. Comparing the period April to September for 2011-12 with the same period for 2012-13, we see that the Ullapool to Stornoway route had a fare increase of 50 per cent, a revenue increase of 22 per cent and a reduction in carryings of more than 18,000, which is an 18 per cent fall. For the same period on the Uig, Tarbert and Lochmaddy route, there was a fare increase of 50 per cent, a revenue increase of 32 per cent and a reduction in carryings of 7 per cent. In addition, the carryings on the Oban to Coll and Tiree route were down by 17.5 per cent over the one year.
Perhaps the Scottish Government thinks that the percentage increase in revenue is more important than the percentage loss in crossings, even when that is at 17 per cent. If that is the case, the Government needs to look more closely at the socioeconomic analysis in its own report. I caution the Government to look at the jobseeker’s allowance claimant count in the Western Isles, which is 2.9 per cent, compared with the Scottish figure of 3.9 per cent.
The historical issue of labour mobility from island to mainland is well documented. Were more jobs and opportunities available in the Western Isles, I have no doubt that many people would return home. I hope that the socioeconomic factors are given weighting equal to if not greater than the increases in revenue that I have referred to. The Government can find plenty of opportunities for efficiency savings in the public sector without having to enforce severe hardship by slashing wages for essential onshore staff.
Although the motion is about more than RET, there is no doubt that the CalMac Ferries staff pay cuts, the impending industrial action and the problems relating to the catastrophic failure of the Hamnavoe are worthy of debate, given how important those lifeline services are to the communities that they serve.
My colleague Jamie McGrigor attended the TSSA union briefing last week. We have a lot of sympathy for the onshore staff, particularly those who face a reduction in their salary from £22,000 to £18,000.
We do not wish to take any side on this issue. Like others, we urge the minister to ensure that constructive talks take place between unions and management. Every member of staff has an important role to play, whether onshore or on a boat. We would not support strike action, which would affect ferry services to fragile island communities that are dependent on such services. We hope that a settlement can be reached soon.
The news of the mechanical failure on the Hamnavoe was devastating for all travellers, but it was not nearly as devastating as it could have been had there not been the alternative of the no-subsidy service across the Pentland Firth, run by Andrew Banks of Pentland Ferries, from St Margaret’s Hope in Orkney to Gills Bay. I regret that the Government failed to thank Pentland Ferries in its amendment, but I listened carefully to the minister’s speech and I think that there was almost some gratitude there, which I think Mr Banks is worthy of. He has ensured that people and traffic continue to cross the Pentland Firth despite the temporary loss of the state-subsidised service.
On the third issue in the Labour Party motion—RET—the Scottish Government’s public relations approach to the cutting of RET in alleging that local hauliers did not pass it on is probably in the same category as Argyll and Bute Council’s approach to Martha’s meals, but the difference is that the council apologised to Martha, whose success in Malawi continues to grow. No such apology has been forthcoming for the Western Isles local hauliers. To blame them for not passing on the gains from RET to their customers was not only unfair and lacking in understanding of haulage costs but, predictably, it caused significant anger at the lack of empathy and understanding of the full impact on island communities and life.
We very much welcome the report by MVA Consultancy entitled “Impact of the Removal of RET Fares from Commercial Vehicles on The Western Isles, Coll and Tiree”. It confirms that the removal of RET for commercial vehicles
“in April 2012 has had a significant negative impact ... on the volumes and margins of small hauliers ... squeezed the margin of trader-hauliers ... necessitated an increase in prices for network hauliers”.
The figures are there for all to see. Comparing the period April to September for 2011-12 with the same period for 2012-13, we see that the Ullapool to Stornoway route had a fare increase of 50 per cent, a revenue increase of 22 per cent and a reduction in carryings of more than 18,000, which is an 18 per cent fall. For the same period on the Uig, Tarbert and Lochmaddy route, there was a fare increase of 50 per cent, a revenue increase of 32 per cent and a reduction in carryings of 7 per cent. In addition, the carryings on the Oban to Coll and Tiree route were down by 17.5 per cent over the one year.
Perhaps the Scottish Government thinks that the percentage increase in revenue is more important than the percentage loss in crossings, even when that is at 17 per cent. If that is the case, the Government needs to look more closely at the socioeconomic analysis in its own report. I caution the Government to look at the jobseeker’s allowance claimant count in the Western Isles, which is 2.9 per cent, compared with the Scottish figure of 3.9 per cent.
The historical issue of labour mobility from island to mainland is well documented. Were more jobs and opportunities available in the Western Isles, I have no doubt that many people would return home. I hope that the socioeconomic factors are given weighting equal to if not greater than the increases in revenue that I have referred to. The Government can find plenty of opportunities for efficiency savings in the public sector without having to enforce severe hardship by slashing wages for essential onshore staff.
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...