Written Question · S3W-03033 · Session 3
What concessions are given to freight operators using (a) CalMac and (b) Northlink ferries; how much these concessions have cost the taxpay…
The question
To ask the Scottish Executive what concessions are given to freight operators using (a) CalMac and (b) Northlink ferries; how much these concessions have cost the taxpayer in each of the last five years, and why there are different tariff arrangements for the carriage of freight and livestock between the northern isles and the mainland and the Western Isles and the mainland.
The answer
CalMac Ferries Ltdoperates a traders’ rebate scheme under which rebates are granted to commercialvehicle operators for frequent use of CalMac’s ferry routes. Rebates from 2.5% to15% relate to the annual number of journeys made by a commercial customer and arecalculated on a route by route basis. CalMac introduced the current arrangementsin 2003, to rationalise former ad hoc arrangements and provide a consistent approachacross its route network.
CalMac estimates the value of traders’ rebates providedon its routes as follows:
2002-03 not separately identifiable
2003-04 £687,000
2004-05 £676,000
2005-06 £710,000
2006-07 £741,000.
NorthLink Ferries Ltd, which has operated the NorthernIsles ferry contract since 6 July 2006, does not provide any discountsto freight operators. All operators pay the company’s published tariff rates, asset in the contract service specification, irrespective of volume or frequency ofusage. NorthLink Orkney and Shetland Ferries Ltd, which ceased to trade on 6 July2006, had previously operated a hauliers’ discount scheme which gave banded rebatesbased on the volume of traffic shipped per month. Since freight was not includedin the service specification for the former public service contract with that company,we have no information on the costs of these discounts.
Differences in freightand livestock tariffs charged by CalMac Ferries Ltd and NorthLink Ferries Ltd reflecthistorical differences in the operation of the Clyde and Hebrides and Northern Isles ferry services.
CalMac estimates the value of traders’ rebates providedon its routes as follows:
2002-03 not separately identifiable
2003-04 £687,000
2004-05 £676,000
2005-06 £710,000
2006-07 £741,000.
NorthLink Ferries Ltd, which has operated the NorthernIsles ferry contract since 6 July 2006, does not provide any discountsto freight operators. All operators pay the company’s published tariff rates, asset in the contract service specification, irrespective of volume or frequency ofusage. NorthLink Orkney and Shetland Ferries Ltd, which ceased to trade on 6 July2006, had previously operated a hauliers’ discount scheme which gave banded rebatesbased on the volume of traffic shipped per month. Since freight was not includedin the service specification for the former public service contract with that company,we have no information on the costs of these discounts.
Differences in freightand livestock tariffs charged by CalMac Ferries Ltd and NorthLink Ferries Ltd reflecthistorical differences in the operation of the Clyde and Hebrides and Northern Isles ferry services.
In the Official Report
No contribution in the Official Report cites S3W-03033 by reference.