Post by ferryfast admin on Jan 31, 2006 15:44:43 GMT -5
Ferry wars as CalMac rival blasts £10.6m in subsidies
ALASTAIR DALTON
TRANSPORT CORRESPONDENT
The Scotsman
www.scotsman.com/
TWO rival ferry firms clashed yesterday after one accused the other of running up a "staggering" loss on a west coast route on which they compete.
Western Ferries said it had obtained figures showing state-controlled Caledonian MacBrayne had required £10.6 million of public subsidy to operate the Gourock-Dunoon route over the past five years.
Western, which is competing to take over the CalMac service on the route, claimed it was the most subsidised on the Clyde, and Western had provided a better service with no subsidy.
Gordon Ross, Western's managing director, said: "The levels of operating loss, and therefore government support, are staggering. Had Western Ferries been given £10.6 million, we could have carried all passengers between Gourock and Dunoon for free for the past five years."
However, CalMac said it had been restricted to one sailing an hour by ministers - while Western made up to four - to enable its rivals to compete. Western now has 80 per cent of the market on the route.
CalMac added that a large proportion of the subsidy was for costs incurred across its west coast route network.
The operator said its vessels were more expensive to operate than Western's but it was required to use them.
Professor Alf Baird, head of the maritime research group at Napier University, said the figures showed the "insanity" of the current situation, a result of political decisions.
David Davidson, the Scottish Conservative transport spokesman, criticised the subsidy levels, but Fergus Ewing, his SNP opposite number, said the figures did not compare like with like.
ALASTAIR DALTON
TRANSPORT CORRESPONDENT
The Scotsman
www.scotsman.com/
TWO rival ferry firms clashed yesterday after one accused the other of running up a "staggering" loss on a west coast route on which they compete.
Western Ferries said it had obtained figures showing state-controlled Caledonian MacBrayne had required £10.6 million of public subsidy to operate the Gourock-Dunoon route over the past five years.
Western, which is competing to take over the CalMac service on the route, claimed it was the most subsidised on the Clyde, and Western had provided a better service with no subsidy.
Gordon Ross, Western's managing director, said: "The levels of operating loss, and therefore government support, are staggering. Had Western Ferries been given £10.6 million, we could have carried all passengers between Gourock and Dunoon for free for the past five years."
However, CalMac said it had been restricted to one sailing an hour by ministers - while Western made up to four - to enable its rivals to compete. Western now has 80 per cent of the market on the route.
CalMac added that a large proportion of the subsidy was for costs incurred across its west coast route network.
The operator said its vessels were more expensive to operate than Western's but it was required to use them.
Professor Alf Baird, head of the maritime research group at Napier University, said the figures showed the "insanity" of the current situation, a result of political decisions.
David Davidson, the Scottish Conservative transport spokesman, criticised the subsidy levels, but Fergus Ewing, his SNP opposite number, said the figures did not compare like with like.