Ferry good news for Kintyre and Moyle

30 Jan 2002

JOINTLY ISSUED ON BEHALF OF THE SCOTLAND OFFICE, NORTHERN IRELAND EXECUTIVE, AND SCOTTISH EXECUTIVE

Scottish and Northern Ireland Executives to proceed with

tendering of ferry service

The prospect of new jobs and economic development for communities of Kintyre and Moyle received a massive boost today with the announcement that the Scottish and Northern Ireland Executives are to proceed with to tendering the Campbeltown to Ballycastle ferry service, once the relevant powers are devolved from Westminster.

The call for tenders is the latest stage in a joint development project undertaken by comes at the end of a unique exercise in co-operation between the Scotland Office, Scottish Government, and the Northern Ireland Executive and the Scotland Office, to investigate whether such a service would be viable. The parties are agreed that the tendering exercise should now proceed subject to the following conditions :-

• That the initial contract term for the service will be of 5 years duration
• That the service will operate for at least 11 months of the year
• That the maximum annual amount of subsidy to be made available for the support of the service will be no more than £1.0 million

Scottish Government Minister for Enterprise, Transport, and Lifelong Learning, Wendy Alexander, said :

"The Scottish Government is determined to make every reasonable effort to support communities suffering from particular problems of economic disadvantage such as Kintyre. The possible re-instatement of the ferry service offers the prospect of creating new opportunities in trade and tourism between Kintyre and Antrim.

"The members of the Ferry Action Group have played an important role in helping the project to reach this stage of development. Once powers are devolved to ourselves and the Northern Ireland Executive, we would very much hope that we will be in a position to restore the ferry service early in 2003."

Minister of State at the Scotland Office, George Foulkes said:

"I am delighted that after a lengthy and very thorough examination of the probable costs and benefits of re-introducing the ferry service, it has been agreed by the Scotland Office that the Scottish and Northern Ireland Executives will we have been able to reach agreement that we should now proceed to tender the service. I am very grateful to the respective Executives for taking this important project forward. Provided that acceptable tenders are received from ferry operators we are hopeful that operation of the service can be resumed early in 2003. I am sure that this decision will be warmly welcomed by people and businesses in Kintyre and Antrim.

" I would like to pay particular tribute to the members of the Ferry Action Group for their work over the last 18 months, and to my predecessor at the Scotland Office, Brian Wilson without whose vision and enthusiasm the project might never have got to where it is today."

"I would like to pay particular tribute to the members of the Ferry Action Group for their work over the last 18 months, and to my predecessor at the Scotland Office Brian Wilson without whose vision and enthusiasm the project would never have got off the ground.

Responding to today's announcement, Northern Ireland Executive Minister for Enterprise Trade and Investment Sir Reg Empey MLA said:

"This is a welcome development, particularly for the Moyle area, and if the service is successfully restored, it has the potential to offer a real boost in terms of tourism and employment, for Northern Ireland as a whole.

"This is partnership in action; Governments working together for the benefit of the local economies in both Scotland and Northern Ireland."

Peter Robinson MLA, Northern Ireland Executive Minister for Regional Development was pleased to lend his support to the project proceeding to tender se. The Minister said:

"It has the potential to further strengthen the linkages which exist between Scotland and Northern Ireland as well as directly benefiting the local communities in Moyle and Kintyre.

"Everything now depends on the outcome of the tender competition, but today's announcement certainly represents a significant step forward."

NOTES FOR NEWS EDITORS

1. A summer only ferry service operated between Campbeltown and Ballycastle in Northern Ireland for three years 1997-99. The service was operated on a commercial basis. The service was terminated just before the 2000 season on the grounds that it was making unsustainable losses. It was concluded that the service would only restart if a subsidy were paid to support operating costs.
2. A Ferry Action Group, chaired by Mr Foulkes with Scottish Government and Northern Ireland Executive participation, was established in July 2000, to examine the feasibility of resuming the ferry service. The Action Group includes representatives from the, local authorities, local enterprise network, the local MPs, MSP and MLAss and other interested parties.
3. Responsibility for financial support for shipping services that do not begin and end in Scotland is a reserved matter under the Scotland Act. The Government has agreed to a request from Scottish Ministers that Scottish Ministers have requested that powers be devolved so that the Scottish and Northern Ireland Executives may pay a subsidy for the Ballycastle to Campbeltown route.in or as regards Scotland be devolved to them. An Order under Section 63 of the Scotland Act s will shortly be taken forward in the Scottish Parliament and at Westminster to devolve such powers.
4. The tender process for the ferry service will be held under the restricted services procedure of the EU Directive on public procurement of services (92/50/EC).
5. EU Council regulation 3577/92 on maritime cabotage and Community Guidelines 97/C/205/5 on state aids to maritime transport set out the legal position for public subsidy of ferry services. A Public Service Order allows subsidy to be paid on grounds of serving peripheral regions of the community or thinly served routes vital to economic development that would not otherwise ensure sufficient service levels. There is no formal mechanism for approval of a PSO. Informal discussions were held with officials from the Transport Directorate General of the Commission and on the basis of the evidence presented to them they have not raised any objections to the necessity of declaring a PSO for the Ballycastle to Campbeltown route.
6. Provided that acceptable tenders which are compliant with these conditions are received from ferry operators, it is planned to resume the operation of the ferry service early in 2003.