TRANSPORTATION COMMITTEE 8 FEBRUARY 2012

SCOTTISH FERRY SERVICES – DRAFT FERRIES PLAN

Report by Director of Technical Services

PURPOSE OF REPORT To inform the Comhairle of the Scottish Government’s Draft Ferries Plan.

COMPETENCE

1.1 There are no legal, financial or other constraints to the recommendations being implemented.

SUMMARY

2.1 It is widely recognised that ’s island communities make a substantial contribution to the social, cultural and economic wellbeing of the nation. Ferry links to these islands are therefore an integral part of Scotland’s transport network and have been the subject of the Scottish Ferries Review.

2.2 The Ferries Review is now complete and, prior to finalising a Ferries Plan later in 2012, the Scottish Government has published its Draft Ferries Plan seeking views and opinions on the options identified for the provision of ferry services to Scotland’s island and remote rural communities.

2.3 A copy of the Draft Ferries Plan is available in the Members’ Lounge and can be downloaded from the Transport Scotland website: www.transportscotland.gov.uk/files/documents/reports/j205024/j205024.pdf

2.4 A summary of the Draft Plan and details of the Government’s proposals, insofar as they affect the Western Isles, are included in the body of the Report.

2.5 A presentation providing further detail of the Draft Plan will be given at the meeting by a member of the Scottish Government’s Ferries Unit and Members will be afforded an opportunity to ask questions.

2.6 The deadline for consultation responses is 31 March 2012 and it is intended that a draft of the Comhairle’s response will be presented for approval at the March 2012 meeting.

RECOMMENDATION

3.1 It is recommended that the Comhairle note the Report and that a draft consultation response will be presented for approval at the March 2012 series.

Contact Officer: Iain Mackinnon, 01851 822656 and Ext 211466 Background Papers: None Appendices: None

01/02/2012 PURPOSE OF AND BACKGROUND TO REVIEW

4.1 As stated in the 2010 consultation document, the purpose of the Review has been to:

• develop a shared vision and outcomes for lifeline ferry services in Scotland, in the context of the Government’s Purpose, Economic Strategy and National Transport Strategy; • analyse the current lifeline ferry services and network, identifying how well it meets the proposed outcomes and how it links to the rest of Scotland’s transport network; • inform the Scottish Government’s long-term plan for lifeline ferry services in Scotland and influence the next round of procurement of ferry services; • identify policies to be taken forward to deliver the long-term plan, including the planned investment framework.

4.2 It is intended that the Ferries Plan will ultimately make recommendations regarding:

• where investment should be focussed to make connections better for island and remote rural communities; • improving reliability and journey times; • seeking to maximise the opportunities for employment, business, leisure and tourism; • promoting social inclusion.

4.3 The Review has been led by the Scottish Government helped in forming opinions by a Steering Group, a Councils’ Group and an Operators’ Group. This involved input from organisations and individuals with a range of views, perspectives and expertise and a considerable amount of data collection and analysis, including a household survey, was carried out in relation to all aspects of ferry service delivery and usage. Consultants were appointed to provide the Government with detailed information and the expertise of Caledonian Maritime Assets Ltd (CMAL) has been drawn on regarding vessels, ports and harbours. Highlands and Islands Enterprise were consulted regarding the economies of the communities reliant on ferries.

FUNDING AND PROCUREMENT

5.1 With regard to the question of how should ferries be funded and procured, the way forward is summarised in the Draft Plan as:

• The Government need to consider what services will be provided in the future to enable a better understanding of the level of spending required over the period to 2022. The Final Ferries Plan will provide details of the final investment required.

• The Government will continue to work with CMAL to consider alternative financing options.

• The Government will revisit, through CMAL, the future level of pier and harbour dues with the intention that the level of income generated wholly covers the cost of the ongoing maintenance and repair of their piers and harbours.

• The Government will explore what would be involved if they, through CMAL, were to take responsibility for ports currently owned by Local Authorities.

• The service specifications for the next Northern Isles and Clyde and Hebrides Ferry Services (CHFS) tenders will be less specific, only specifying what is deemed to be a minimum requirement. The final contracts will fully specify details of the agreed proposal.

5.2 The proposals at the fourth bullet point in para 5.1 above is of particular relevance to the Comhairle given its ownership of facilities at Leverburgh and Berneray (Sound of Harris crossing), at Ceann a’Gharaidh and Eoligarry (Sound of crossing) and at Lochmaddy. The views of the Comhairle on this specific matter must be incorporated in its consultation response.

FARES

6.1 With regard to the Government’s proposals around fare-setting for ferry services in the future, the Draft Plan deals with the challenges around fare-setting and how they and the operator must achieve a balance across a range of competing issues.

6.2 The Government’s proposals are summarised as follows:

• The Government will replace the route-specific nature of fare-setting with one single overarching framework.

• The Government will roll-out RET across the network as the basis for single fares for passengers and cars.

• The Government will work with operators to better manage demand where necessary. Stakeholders must be consulted.

• The Government are not satisfied that RET for commercial traffic is cost effective. Therefore, in the short term we will continue to support existing discount schemes such as the Traders Rebate Scheme. In the longer term it is our aim to develop an overarching freight fares policy.

• Once RET is introduced there will no need for multi-journey discounts.

• RET will be rolled-out further during the term of this Parliament. An announcement was made on 29 November 2011.

• A new system of annual fares reviews will be implemented in line with the cost of travel.

• In the current Northern Isles tender and the CHFS tender the Government will make it a requirement for ferry operators to work with other transport providers to encourage integrated ticketing and better timetabling.

6.3 The development of an overarching freight fares policy and the rolling-out of RET across the remaining ferry services during the term of the current Parliament, including the ferry services on the Sound of Harris and Barra, are of particular relevance to the communities of the Western Isles. The specific views and concerns of the Comhairle must be incorporated in its consultation response.

ROUTES AND SERVICES

7.1 The Draft Plan sets out proposals for routes and services across the whole network, grouped under the following heading:

• Firth of Clyde • Inner Hebrides • Northern Isles • Skye, Raasay, the Small Isles and Knoydart • Southern Hebrides • Western Isles 7.2 The relevant chapter provides an overview of the needs based assessment that has been carried out followed by working principles on routes and services. It then sets out the proposals for each community (and sets of communities) and views and opinions on these are sought from the local communities. It should be noted that the timing and funding of any changes is yet to be agreed.

7.3 The proposals for the Western Isles are summarised as follows:

• The principal route for Harris and Lewis is the Ullapool to Stornoway route. Tarbert to Uig is the secondary route. The principal route for the Uists and Benbecula is Lochmaddy to Uig. Lochboisdale to Oban is the secondary route. Barra has only one direct route to the mainland; to Oban.

• There is a need for all principal and secondary routes to be retained because of the distance between the ports; the population around the secondary routes and the need to ensure adequate exit ports for resilience purposes;

• Barra is the only landmass in the Western Isles which does not currently receive services that meets the community’s needs in terms of service profile. (Their current winter service is 3 days per week and ideally we want to provide at least 5 days);

• We think the secondary route (Lochboisdale to Oban) for the Uists and Benbecula should also be retained for the reasons given above;

• We think the secondary route (Tarbert to Uig) for Lewis and Harris should also be retained for the reasons given above;

• We have considered options for improving the service to Barra. However, there are no viable cost effective options available without affecting the other Western Isles services. Within the Western Isles the Barra service will be given priority for funding in the future.

7.4 It should be noted that the Draft Plan indicates that the Government is of the opinion that Barra is the only landmass in the Western Isles which does not receive a service that, based on the routes and services methodology, does not receive a service that meets the community’s needs.

7.5 Other than reflecting the results of the associated household survey, which showed that while 42% of the residents in were not satisfied with Oban as their mainland port, 52% were satisfied and 6% said destination port was not important, little specific mention if made of any proposals associated with the introduction of a Lochboisdale to Mallag ferry service.

7.6 The strength of feeling held by a proportion of the South Uist community is accepted and the Plan does confirm that the Government will further consider the economic viability of such a service in the contract of other planned improvements to, and within, the Western Isles.

RESPONSIBILITIES

8.1 The Draft Plan indicates that there is no consistent split of responsibility between the Scottish Government, Local Authorities and the Regional Transport Partnerships (RTPs).

8.2 The Government’s proposals are summarised as follows:

• The Scottish Government is willing to be responsible for all ‘lifeline’ ferry services in Scotland;

• The Scottish Government will work with the relevant Local Authorities to discuss the possibility of the Scottish Government taking over responsibility for services currently provided by them;

• The Scottish Government is also willing to work with any Local Authority who wise to assume responsibility for any ferry service currently the responsibility of the Scottish Government;

• The Scottish Government will also become responsible for ensuring the continuation of any lifeline ferry service currently provided by the private sector;

• For any transfer of responsibility the Scottish Government will need to consider if an adjustment to the local government block grant or a transfer of capital funding is required;

• The Final Ferries Plan will represent the national framework for the provision of all subsidised ferry services in Scotland. It will however be up to those responsible for delivering these services to consider whether they wish to adopt this strategy;

• The Scottish Government’s Final Ferries Plan will provide details of the good practice and procurement guidance followed by Transport Scotland and will also make themselves available to any provider of ferry service who wishes to discuss how ferry services are procured by Transport Scotland;

• The Scottish Government are keeping the need for a Scottish Ferries Regulator under review and further details will be made available in the Final Ferries Plan.

8.3 Given that the Scottish Government are currently already responsible for all ferry services to and within the Western Isles, the above proposals have little or no impact on the communities of the Western Isles.

ACCESSIBILITY

9.1 The Scottish Government recognises that accessibility is an issue for a wide range of passengers with disabilities and others, for example, people travelling with small children and people travelling with luggage.

9.2 The Government’s proposals are summarised below:

• In the next Northern Isles and CHFS tenders the Government will specify a number of requirements and also seek to encourage operators to adopt as many of the ‘Accessibility’ reports recommendations as possible. (This will include putting an ‘Accessibility Information System’ in place);

• The Government intend to set up an ‘Accessibility Improvement Fund’ and will develop this further for the Final Ferries Plan;

• The Government will also write to all Local Authorities, Independent Trust Ports and private owners of vessels and ports and harbour facilities to ensure they are aware of their obligations under the current legislation. The Government will also encourage them to make progress, in terms of improving accessibility;

• The Government will ensure the owners of all infrastructure (vessels, ports and harbours) used for subsidised ferry services continue to be aware of the need to make progress in improving accessibility.

ENVIRONMENTAL ISSUES

10.1 The Scottish Ferries Review Consultation sought to elicit views on environmental issues, with a focus on the mitigation of climate change through reduction of greenhouse gas emissions. Technological measures and demand and fleet management have been identified by the Government as the two key approaches to achieving the necessary reductions.

10.2 In response to the consultation exercise, the overall emphasis was on technical solutions, particularly for inclusion in new vessels, but service changes were also mentioned. In general the consultees did not support reduction in vessel speeds.

10.3 The proposal to commit to a roll-out of RET across the network will, as a result of the likely increase in traffic volumes, likely result in increased atmospheric emissions, including emissions of greenhouse gases. The proposals for routes and services have been analysed and strategic actions have been categorised and the potential environmental effects identified. These effects are discussed in the Environmental Report that accompanies the Draft Plan, also available from the Transport Scotland website, and it is accepted that the mitigation of negative environmental effects is likely to be progressed over both the short-term and long-term.