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Parliamentary debates and questions

S5W-12427: Jamie Greene (West Scotland)

Scottish Conservative and Unionist Party

Date lodged: 7 November 2017

To ask the Scottish Government, in light of the findings of the Audit Scotland report, Transport Scotland’s ferry services, whether it will provide a breakdown of the difference between the original contracted non-fuel subsidy payments and the actual non-fuel subsidy payments for each contract year.

Answered by: Humza Yousaf 15 November 2017

The following table details both the original contracted non-fuel subsidy payment and the actual non-fuel subsidy payments from Contract Year 1 to Contract Year 6 of the Public Service Contract between the Scottish Ministers and Argyll Ferries Ltd.

 

Original Contracted Non-fuel Subsidy

Actual Non-fuel Subsidy

Contract Year 1

£1,358,199

£1,307,617

Contract Year 2

£1,215,330

£1,289,846

Contract Year 3

£1,417,344

£2,858,961

Contract Year 4

£1,427,512

£3,145,458

Contract Year 5

£1,428,332

£2,907,842

Contract Year 6

£1,473,386

Not received

There are a variety of reasons that contribute to differences between the initial contracted subsidy amount and the actual subsidy amount. One reason arising is that during the lifetime of the contract, maintenance and fuel costs have increased. Another reason being contract variations implemented, such as the charter of the MV Coruisk to improve winter reliability and the related replacement bus service. The details of these costs and their variances from original contracted subsidy are commercially sensitive to the operator.