Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Island ferry operator fears new subsidies could bankrupt company

Post Thumbnail

Fears have been voiced by a north ferry operator that Scottish Government proposals designed to reduce fares could end up sinking business if it goes wrong.

Andrew Banks, the owner and managing director of Pentland Ferries, is seeking reassurances about the introduction of the Road Equivalent Tariff (RET) scheme.

It would see costs to passengers cut by up to 20%, but questions remain about whether the scheme is legal, according to the ferry company.

Now Mr Banks wants the Cabinet Secretary for Transport, Infrastructure and Connectivity, Michael Matheson, to visit Orkney for talks.

His concerns stem from legal advice taken by Pentland that suggests the RET scheme may be non-compliant with EU state aid rules.

We have today invited the new Transport Minister Michael Matheson MSP to meet with us in Orkney so that we can work in…

Posted by Pentland Ferries on Tuesday, 10 July 2018

According to Pentland Ferries, the minister recently confirmed the business would be liable for the costs of the passenger subsidies  and such a bill “could run into the millions and could finish us off” according to Mr Banks.

He said: “We want these passenger subsidies implemented as soon as possible but we need to be 100% sure that the scheme complies with state aid rules.

“We have never had any subsidy from government and even though this scheme gives money to the passenger not the operator, the minister has told us that we would be liable for any repayment, if at a future date the scheme is deemed illegal.

“We cannot take that risk and we have responsibility to our staff, our community and family to make sure the scheme works for everyone.”

Mr Banks said Pentland Ferries are still keen to back the scheme as it “will be fantastic for our business, attracting more visitors to the islands and making it cheaper to travel to the mainland for residents.”

The minister Mr Matheson said: “Unfortunately, not all the commercial operators have felt able to agree to our proposals. This means we cannot currently implement reduced fares on any of the routes to and from Orkney without the risk of legal challenge.”

“This is both disappointing and frustrating, but I am determined to work through the issue to see what more can be done.”

He added: “I have asked Transport Scotland to undertake some further work to see what measures, if any, we can take. As part of that, we are willing to reopen talks with commercial operators.”

Pentland Ferries operates from Gills Bay near John o’ Groats to St Margarets Hope on South Ronaldsay.