Written Question · S4W-25249 · Session 4
How it reconciles the statement in the letter to Liam McArthur MSP from the Minister for Transport and Islands dated 5 February 2015 that “…
The question
To ask the Scottish Government how it reconciles the statement in the letter to Liam McArthur MSP from the Minister for Transport and Islands dated 5 February 2015 that “The Ferries Plan, published in December 2012, made clear that Road Equivalent Tariff (RET) will form the basis for the fares structure across all sailings ensuring more people benefit from lower fares. For the Northern Isles, introducing RET would actually increase fares on a number of services. The Ferries Plan was clear that RET would be introduced to the Northern Isles over a much longer timeframe, in order that no one would pay more for an RET fare.” with Table 11.7 of the Scottish Government Assessment of the Impacts of the Road Equivalent Tariff Pilot Draft Final Report, March 2011, which shows no increases in fares on any routes and that foot passengers would receive a 19% reduction in fares between Aberdeen and Lerwick and a 65.7% reduction between Scrabster and Stromness.
The answer
We have always been clear that while road equivalent tariff RET would reduce some fares on services to the Northern Isles, it would significantly increase a number of fares. Therefore the commitment made in The Ferries Plan, published in December 2012, is to introduce RET to the Northern Isles over a longer timeframe, beyond the term of this Parliament.
In table 11.7 of the report referred to, where RET would have been higher than the existing fare, no increase was assumed. Additionally, the RET formula used in the report is out of date, and does not reflect the current RET formula or the current fare pricing situation on the Northern Isles ferry routes. An updated RET formula was applied in 2012 and showed that introducing RET would continue to increase a number of fares on Northern Isles services. Using the most up to date formula from this year does not change this position.
Consideration of how RET can be applied on the Northern Isles will be given during the course of this year, as part of the wider work required to review the RET formula.
In table 11.7 of the report referred to, where RET would have been higher than the existing fare, no increase was assumed. Additionally, the RET formula used in the report is out of date, and does not reflect the current RET formula or the current fare pricing situation on the Northern Isles ferry routes. An updated RET formula was applied in 2012 and showed that introducing RET would continue to increase a number of fares on Northern Isles services. Using the most up to date formula from this year does not change this position.
Consideration of how RET can be applied on the Northern Isles will be given during the course of this year, as part of the wider work required to review the RET formula.
In the Official Report
No contribution in the Official Report cites S4W-25249 by reference.