Report to assess subsidy for £3.7bn 'lifeline' CalMac ferry service

The proposal includes providing a subsidy to CalMac for the running of a lifeline service between the neighbouring islands and the mainland.

Report to assess if CalMac meets requirements for subsidy for £3.7bn ‘lifeline’ ferry serviceSTV News

A report will assess if CalMac meet the requirements to receive a subsidy for a ferry service worth £3.7bn over a ten-year period.

The Subsidy Advice Unit (SAU) – which assists public authorities by providing independent non-binding advice in relation to certain subsidies – has accepted a request for a report to Transport Scotland.

The proposal includes providing a subsidy to CalMac for the running of Clyde and Hebrides Ferry Services (CHFS) between the neighbouring islands and the mainland.

The total subsidy amounts to £3.7bn over a period of ten years and has been calculated on the basis of cost estimates of providing the ferry service over a decade.

The aim would be to provide residents with an accessible, reliable, and convenient service and to provide “adequate resilience to those communities”.

The report, which is expected to be completed within 30 days, will provide an evaluation of Transport Scotland’s assessment of whether the subsidy complies with the subsidy control requirements.

The SAU said a deadline for receipt of any third party submissions is November 19, 2024.

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