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Warning over European ferry probe Ferry services 'not threatened'
(1 day later)
A European Commission inquiry could result in Scotland's lifeline ferry services being "cherry picked" by private operators, an expert warned. Scotland's transport minister said he has been given assurances a European Commission inquiry will not threaten future ferry services.
Professor Neil Kaye of Strathclyde University made his comments as the EU Transport Commissioner launched his inquiry with a visit to Edinburgh. Stewart Stevenson had what he called a "very constructive" meeting with EC Vice President Jacques Barrot.
Northlink and Caledonian MacBrayne ferry services are to be investigated.Northlink and Caledonian MacBrayne ferry services are to be investigated.
The move came after complaints that subsidies to the state-owned companies had breached EU competition law. The move came after complaints that subsidies to the state-owned transport companies had breached EU competition law.
The probe will look into whether state support led to the undue distortion of fair competition.The probe will look into whether state support led to the undue distortion of fair competition.
The Scottish Government said it would co-operate with the investigation, but pointed out it covered previous Holyrood administrations. An expert warned the inquiry could result in Scotland's lifeline ferry services being "cherry picked" by private operators.
Government failures Mr Stevenson said: "Whilst this is an investigation which covers the term of previous administrations, the Scottish Government will co-operate fully with the commission towards a successful conclusion.
Both ferry companies are part of the Scottish Government-owned David MacBrayne Group. "I had a very constructive meeting with the commissioner today in which Mr Barrot gave an assurance that the investigation would not threaten the future of services for our remote island communities. We welcome this."
The EC transport commissioner Jacques Barrot stressed the probe would not threaten the future of the services. Bosses of the David MacBrayne Group, which includes Caledonian MacBrayne and NorthLink, also met with the commissioner.
Prof Kaye said the investigation would centre on the fact that successive administrations in Edinburgh, even pre-dating devolution, failed to draw up a case for subsidies, route-by-route - the so-called Public Service Obligations. Group chairman Peter Timms said: "There are a number of key issues involved and we will co-operate fully with the commission in their endeavours.
He expects Brussels to demand a break up of the more than 20 CalMac routes, which were bundled together and tendered as one service. "We took the opportunity to remind the commissioner of the importance of lifeline ferries to the communities we serve and also to underline the strategic importance and additional efficiency value of the network we operate."
The professor said he feared this would inevitably lead to private operators cherry picking the busier routes. However, Professor Neil Kaye, of Strathclyde University, said the investigation would centre on the fact that successive administrations in Edinburgh, even pre-dating devolution, failed to draw up a case for subsidies, route-by-route - the so-called Public Service Obligations.
He said he expected Brussels to demand a break up of the more than 20 CalMac routes, which were bundled together and tendered as one service. The professor said he feared this would inevitably lead to private operators cherry picking the busier routes.
That concern was echoed by the STUC.That concern was echoed by the STUC.
Scottish Transport minister Stewart Stevenson said he would do everything necessary to protect the remote communities affected.