Department of Community, Rural and Gaeltacht Affairs Review of Certain Subsidised Ferry Services to the Islands Report and Appendices Prepared by Malachy Walsh and Partners In association with Posford Haskoning Raymond Burke Consulting McCaig Watson Seosamh Mac Donnacha 9th March 2004 Study of Ferry Service Requirements to a Number of Islands CONTENTS Page 3 1. Introduction 1 1.1 Terms of Reference....................................................................................................................................1 1.2 Background.................................................................................................................................................1 1.3 Service Providers........................................................................................................................................3 1.4 Approach......................................................................................................................................................3 1.5 Summary Findings and Recommendations..............................................................................................6 1.6 Structure of the Review............................................................................................................................11 1.7 Acknowledgements...................................................................................................................................11 2. Ferry Services 12 2.1 Oileán Cléire (Cape Clear)........................................................................................................................12 2.2 Oileán Thoraí (Tory Island).......................................................................................................................16 2.3 Aran Islands - Inis Mór..............................................................................................................................22 2.4 Aran Islands - Inis Meáin..........................................................................................................................35 2.5 Aran Islands - Inis Oírr..............................................................................................................................36 2.6 Inishturk.....................................................................................................................................................38 2.7 Clare Island................................................................................................................................................42 2.8 Inishbofin...................................................................................................................................................48 3. Socio-Economic and Socio-Linguistic Impacts 52 3.1 Demographic Context...............................................................................................................................52 3.2 Socio-Economic Impact............................................................................................................................53 3.3 Socio-Linguistic Impact............................................................................................................................57 4. Other Ferry Services 67 4.1 Strangford Lough (Northern Ireland).......................................................................................................67 4.2 Ballycastle – Rathlin Island (Northern Ireland).......................................................................................69 4.3 Lough Foyle Ferry.....................................................................................................................................71 4.4 Scottish Isles.............................................................................................................................................72 4.5 Other Islands.............................................................................................................................................76 5. Key Issues 88 5.1 The Purpose of the Subsidy.....................................................................................................................88 5.2 Value for Money.........................................................................................................................................88 5.3 The Need for and Adequacy of Subsidy.................................................................................................91 5.4 Availability of Data....................................................................................................................................92 5.5 Fare and Subsidy Increases.....................................................................................................................92 5.6 Tender and Performance Information.....................................................................................................93 5.7 Termination Clause...................................................................................................................................93 5.8 Contract Monitoring..................................................................................................................................93 5.9 Contract Duration......................................................................................................................................94 5.10 Contractor Status....................................................................................................................................94 Study of Ferry Service Requirements to a Number of Islands 5.11 Comptroller and Auditor General Review of State Subsidised Transport Services to the Aran Islands.............................................................................................................................................................. 94 5.12 Schedule..................................................................................................................................................96 5.13 Disability..................................................................................................................................................97 5.14 Competition.............................................................................................................................................98 5.15 Public Service Obligations.....................................................................................................................98 5.16 A Simplification of the Maritime Public Transport Rules...................................................................100 5.17 Development of Island Airstrips and Associated Air Services.........................................................100 5.18 Skills Development...............................................................................................................................102 5.19 Alternatives to Direct Subsidy.............................................................................................................102 5.20 Rathlin Island Contractual Arrangements...........................................................................................103 5.21 Passenger Ferry Services from Galway Harbour...............................................................................105 5.22 Ferry Design..........................................................................................................................................105 5.23 Maritime Security..................................................................................................................................109 5.24 Aer Árann Service.................................................................................................................................110 6. Recommendations 111 6.1 Government Policy on Purpose of Subsidy..........................................................................................111 6.2 Key Performance Indicators (KPIs).......................................................................................................111 6.3 Other Performance Indicators...............................................................................................................113 6.4 Contract Arrangements..........................................................................................................................117 6.5 Contract Terms.......................................................................................................................................122 6.6 Ferry Services and Subsidies................................................................................................................123 6.7 Other Recommendations........................................................................................................................125 7. Conclusions 127 VOLUME 2: APPENDICES Appendix 1: Call for Submissions Appendix 2: Inputs and Submissions Appendix 3: History of Caledonian MacBrayne (CalMac) Appendix 4: Consultation Paper on Delivering Lifeline Ferry Services (Scottish Executive) Appendix 5: Proposals For Tendering Gourock To Dunoon Ferry Services: Draft Invitation To Tender For Consultation Appendix 6: Template for Tender Evaluation Scoring Matrix Appendix 7: Key Points raised at Public Fora Meetings on the Islands Appendix 8: Community Guidelines on State Aid to Maritime Transport (97/C205/05) Appendix 9: Aran Islands Goods & Passenger Rates 2004. Study of Ferry Service Requirements to a Number of Islands Study