Hans J Marter

14 August, 2007

AN EXECUTIVE study into cheaper ferry fares to and from the Scottish islands has been welcomed by transport managers in Shetland.

On a visit to Stornoway yesterday (Monday), finance secretary John Swinney announced a wide ranging inquiry into bringing in the Road Equivalent Tariff (RET), relating boat fares to the cost of travelling the same distance by road.

Chairman of ZetTrans, the Shetland Transport Partnership, Allan Wishart said his team would be watching the progress of the study with interest.

However there are some doubts whether RET could benefit the long 200 mile Aberdeen to Shetland ferry link.

Mr Wishart said: "The first phase of the study will review approaches to fare setting for public service ferries in other countries, including the RET approach.

"The scope of the study is quite wide in that they are going to look at other countries and see how they address these sort of questions, and how that could be applied to Shetland.

"There are a lot of differences between ferry links on the Scottish west coast and those to Shetland. Distances are quite different as well. But I would hope that the government is looking at a national approach so that we are included in any beneficial outcome of the study."

The SNP executive hopes to have results of the first phase of the study by the end of the year, including recommendations for a pilot exercise to be carried out on one or two of the Scottish west coast routes, such as between Ullapool and Stornoway.

A second and third phase of the study will follow later, which will include an assessment of the pilot exercise as well as detailed examination of the socio-economic impact of the proposal.

Mr Swinney said: "This government recognises the vital importance of lifeline ferry services in supporting Scotland's island communities. We understand the genuine concerns from our remote and fragile communities about the affordability of ferry travel and the impact this has on islanders.

"I believe that the way forward is to consider the benefits of introducing a Road Equivalent Tariff approach to setting fares in Scotland.

"This approach would not just benefit islanders by providing cheaper fares but could also boost island economies by attracting tourists and supporting businesses."