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This item was published during the term of a previous administration that ended in April 2007

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CalMac ferry service tender

17/10/2003

The Executive will urgently clarify with the European Commission whether a recent European ruling on state aid provisions means the CalMac ferry service must still go out to tender, it was announced today.

Transport Minister Nicol Stephen said the impact from a recent European Court of Justice ruling involving a German bus company, Altmark, was far from clear and it was important the matter was clarified.

Mr Stephen said:

"The Executive's priority, as it has always been, is to protect lifeline ferry services. We are currently examining the full implications from the Altmark decision and the potential impact on tendering the CalMac ferry service.

"The consequences of the Altmark case for ferry services are far from clear. Altmark is a German bus company and the European Court of Justice's decision deals with the interaction between the treaty and the relevant state aid regulations for bus services.

"Subsidies relating to ferry services are covered by separate but similar EC maritime regulations and guidelines, which are likely to continue to be relevant.

"As a matter of urgency we shall seek clarification of the legal position and raise the issue with the European Commission to determine whether we are still required to tender the CalMac ferry services. It is important that we go through this process as the Commission has very significant powers, which could be used against us if it believes we are taking inappropriate action.

"In the meantime we will continue to prepare for tendering to protect the service, as previously required by the Commission. We need to be in a position to tender on schedule if this remains the eventual outcome."

Page updated: Wednesday, July 21, 2004