Scottish Government Ferries Review Consultation Event - Islay 31 March 2009

25 March 2009 Overview Methods of delivery, competition, procurement and freight (TRi Napier); Fares, Funding, Cost and Affordability, Integration, Services and Routes (MVA Consultancy); Economy (Highlands and Islands Enterprise); Vessels (CMAL); Ports and Harbours (CMAL); and Accessibility (CMAL).

25 March 2009 Fares (1) Ferry fares in Scotland have evolved over a number of years from a combination of historic fares and the earlier CFares system that was in place in the 1990s But is the current fare system the most efficient? Does it meet local needs? Does it benefit some communities at the expense of others?

25 March 2009 Fares (2) Our work will consider the potential for rationalising fare structures and assess whether fare adjustments could provide greater support for particularly vulnerable communities We will look at different types of fares systems, such as distance based schemes like Road Equivalent Tariff We will also benchmark against other ferry operators abroad The analysis will feed into wider recommendations for fares policy in the Ferries Strategy

25 March 2009 Funding Ferry services are currently funded by a combination of operating revenue and Scottish Government / Local Authority subsidy Delivering better quality services requires additional resources and we will consider how this can be achieved – eg can additional revenue be raised through the private sector? Can the existing network generate additional revenue?

25 March 2009 Cost and Affordability Linked to the public sector funding of ferry services is the cost to government of providing the network and its affordability in the wider Scottish transport policy context Can the cost of providing ferry services be made more socially efficient? Is there a way to reduce costs without impinging on services levels? Where could cost savings be made?

25 March 2009 Clearly, all elements of this task are inter-linked: eg lower fares may benefit the community but could cost government more eg increased private sector funding may allow for government money to be focused on capital investment or lower fares We need to establish how local people see these complex issues and recommend a package of measures that best meet your needs, whilst bearing in mind the resource commitments of government.

25 March 2009 Integration, Services and Routes This element of the Review aims to develop a fresh perspective on ferry services There is a danger that services are provided between places that “have always been served” at “traditional times” and in “conventional ways” But do these services meet the needs of your community? Would a different service configuration be beneficial to local people? Do you feel that alternative routes would better support the needs of your area?

25 March 2009 CMAL – What we do Owns 31 ships (plus one under construction) Owns 22 ports and harbours throughout West Coast Lease facilities at further 24 locations Charters out the ships to operators and ensures availability of ports and harbours to lifeline ferry operator. CalMac Ferries operate the harbours on our behalf. Based in Port Glasgow with a small highly skilled team Simple Mission “To provide, safeguard and develop ferries and harbours” Focus on long term improvement and investment in assets Under ferry review CMAL charged with looking at Vessels, Ports and Harbours and Accessibility

25 March 2009 Vessels Gather information on existing vessels (over 90 ferries operate on Scottish domestic routes) Investigate age and type of vessels and group into no more than 6 ‘classes’ Investigate new designs and ferry technology – Reduce CO2, improve efficiency, speed etc Develop investment profiles for fleet renewal Investigate efficient procurement strategy and through life costs

25 March 2009 Ports and Harbours Gather information on existing ‘lifeline’ ferry harbours (estimated 113) Assess overall condition and develop overall investment plans Look at ownership and operations arrangements – wide variety Local Authority, CMAL, Independent Trust Ports, Major plc Ports etc)

25 March 2009 Accessibility Ferries and harbours should be accessible to all Work closely with Accessibility groups and Operators Assess current situation Develop ‘star’ rating system Assess investment requirements Agree minimum standards

25 March 2009 Questions