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This paper sets out a summary of the responses to the consultation document, Delivering Lifeline Ferry Services - Meeting European Union Requirements.
The consultation paper set out the background to why the Executive will put Caledonian MacBrayne's ferry services out to competitive tender and sought views on a number of issues including:
how the routes should be grouped;
arrangements for ownership of vessels;
consultation arrangements; and
possible domestic legislation.
There were 110 responses in total. The general tone of the responses was fairly constructive. There were concerns over the proposed change, but many welcomed Ministers' assurances on maintaining levels and standards of service and supported Ministers' policy objectives. Some made it clear that they would be watching carefully to see how far Ministers fulfilled their promises. One or two responses were fairly hostile in tone, with suspicions voiced that the Executive was pursuing a privatisation agenda. However, most accepted (though reluctantly in some cases) that tendering was necessary and many wished the Executive to press the Commission to ensure the best possible outcome. A few felt that the Executive was moving with undue haste and some felt that it had not taken enough time to consider the issues and negotiate with the Commission.
There was fairly strong support for a separate vessel-owning company (VesCo), and for continued public ownership of vessels and shore infrastructure, though views differed on the detail and on the preferred degree of private and public involvement. The funding of vessels by operators was noted to be a problem, given the 5-year contract period, and this perhaps explains why only three were in favour of operators owning vessels. There was recognition that CalMac had built up a good fleet over the years and that this should not be lost either through being sold off to "cowboy operators" or through failure to keep up a vessel replacement programme. A third of respondents commented on the importance of supporting adequate relief vessel arrangements. Capacity and design of vessels was recognised as crucial if services were to meet appropriate requirements.
Bundling: Tendering the network as a whole was most respondents first choice, and many felt that this option should be pursued further with the Commission. Of those who expressed an opinion on a fallback preference in the event that tendering as a whole proves unacceptable, splitting the network based on vessel size criteria emerged, by a small margin, as the most popular fallback. To some extent, however, this fallback preference appeared to reflect concerns over the availability of relief vessels and this issue might be resolved by a suitably established VesCo. Pressure for a split based on geographical criteria was strongest in respect of a Clyde or Kintyre grouping.
There was strong support for the continuation of subsidy to mainland-to-mainland routes. The Executive was urged to put a very strong case to the Commission setting out arguments covering a range of social and economic grounds for retention of these services to remote peninsulas. On the related issue of local authority ferries, responses stressed the importance of maintaining suitably funded links.
The Gourock-Dunoon route was an important issue for the many people who commented on it. Respondents supported the Executives attempt to seek a PSO (Public Service Obligation) for a passenger-only service. However, five commented that this would not be economic as different vessels would be needed. Seven said that the service should be allowed to carry cars unsubsidised, with arrangements in place to guard against cross-subsidy. Others argued that the CalMac service and the nearby service provided by a private operator were complementary and provided customer choice and competition. Several pressed for representations to be made to the Commission, seeking a derogation on the grounds of special circumstances.
Thirteen responses mentioned the need for contracts to set a framework for co-operation between operators, most of these mentioning through-ticketing and existing CalMac offers such as Hopscotch and Island Rover. Other areas where the need for co-operation was stressed were the marketing of the whole Western Isles experience and the preparation of a timetable for the whole network. Twenty-two respondents commented on the need to ensure integrated transport links with buses, trains and other ferry services.
Service standards: Most respondents were concerned to see at least the existing level of service maintained, though some noted that certain vital service elements - flexibility, a positive safety culture, knowledgeable staff and a "caring ethos" - could be difficult to put into a service specification. There were few detailed comments on this topic, perhaps reflecting the Executive's commitment that there would be more detailed consultation on the specifications in due course. One of the key issues arising in the area of service standards was that of safety, with 10 respondents putting this as a priority.
On timetable, 18 respondents mentioned the importance of the frequency of the service. Eleven respondents said that operating hours should be increased where possible and five emphasised the importance of suitable punctuality and reliability standards. Nine respondents, including a number of local health boards, emphasised the importance of ferry services in health transportation systems, particularly for out-of-hours services.
Thirty six respondents commented on tariff levels and controls. All stressed that existing fares' levels should be maintained or reduced.
Consultation with users and regulation of the service were important issues for 32 respondents. There was a general request for regular and meaningful consultation. Specific areas mentioned included proposed timetable changes, fare structures and service standards.
Twelve respondents hoped that a future Highlands & Islands Transport Authority could improve the situation, though there were a variety of views expressed as to its role and nature. Eight respondents commented that domestic legislation should be amended to ensure suitable powers to secure lifeline ferry services within the PSO framework.
Scottish Executive Development Department
Transport Division 4
January 2001
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