The following is a press release on the Gourock-Dunoon ferries. I reproduce the press release first, then add four sets of comments,

Neil Kay August 18th 2008

COUNCILLORS MEET WITH TRANSPORT MINISTER TO DISCUSS DUNOON FERRY

Representatives of Argyll and Bute Council, the Scottish Government and Inverclyde Council, have reaffirmed their commitment to a centre-to-centre vehicle and ferry passenger service between Dunoon and Gourock.

At a high-level meeting which took place yesterday (Thursday 14th August), Argyll and Bute Council Leader, Councillor Dick Walsh, met with Stewart Stevenson, Minister for Transport, Infrastructure and Climate Change, and Councillor Jim Clocherty, Inverclyde Council's Convener of Regeneration, where he proposed a tripartite approach towards securing the future of the ferry service.

Councillor Walsh said: "I am pleased that the Minister and Councillor Clocherty have agreed to adopt this united tripartite approach. This is a positive step towards developing a ferry service around the needs of the communities involved and not around the needs of the operators.

"There is little doubt that pressure from the communities involved is increasing. They feel that this situation has gone on long enough. We in the Council have been working hard over a long period of time. Indeed, only in May I met with Commissioner Barot (sic) along with a representative of
the Scottish Government. The Commissioner is in support of our position and approach to this important service and agrees that it can be tendered.

"Furthermore, the Commissioner agreed to appoint one of the EU officials to work with Argyll and Bute Council and the Scottish Government on the Gourock/Dunoon ferry service, who would also visit Dunoon/Inverclyde. This is because the routes are not like for like.

"He also agreed with us on the need to appoint an independent regulator to prepare the way for the tender and what should be in it in order to ensure that the service reflects public need and is in the best interest of the local communities of Cowal and Inverclyde."

Speaking after the meeting, Mr Stevenson said: "We had a useful and constructive meeting in Oban with leaders of both councils. It is clear that we share a commitment to deliver a Gourock-Dunoon ferry service which meets the aspirations of both communities whilst respecting
European law.

"This Government wants to deliver a town centre to town centre service. Both Argyll and Bute and Inverclyde Council share that commitment and this new tripartate agreement will allow us to work more closely together to deliver. A Gourock - Dunoon service which satisfies everyone's aspirations is
not without its challenges and I am aware that looking from the outside it may look like we are not moving as quickly as many people would wish.I want to assure the community that behind the scenes we are all working extremely hard to progress this."

Mr Stevenson continued: "The reality is that the pace is dictated by ensuring that we wrap up all the EC legal requirements as tightly as possible. If we don't, we may fall into the trap of other countries who
have fallen foul of the European Commission. That would do no-one anygood. A substantial financial penalty imposed by the EC would come right out of the ferries budget which would be disastrous for both Gourock - Dunoon and our other lifeline services.

"This is a real frustration for me, as I am sure it is for the people ofboth communities, but unfortunately it is something we all have to go through. However, what I want to make clear is that we will move to
tender stage at the earliest opportunity once our final negotiations with the EC are complete and the legal requirements met. This Government, and indeed the two councils, are absolutely committed to
delivering this service as quickly as possible."

Councillor Clocherty of Inverclyde Council said: "The timing of the decision is crucial for the future regeneration plans of Inverclyde. The meeting went well and I look forward to seeing the service develop and to further partnership working in the months ahead."

Other items on the agenda included the Campbeltown to Ballycastle ferry and the Council's Piers and Harbours budget.

COMMENTS ON PRESS RELEASE

Point (a) "He also agreed with us on the need to appoint an independent regulator"

I am pleased with that point. I have given invited evidence to three Inquiries of the Transport Committee of the Scottish Parliament in 2001, 2005 and 2008, and from the the very first one in 2001 I argued strongly for the appointment of an Independent Regulator, a proposal which was rejected by the then government. It is good that this crucial point has finally been accepted, albeit seven years late.

Point (b) "we will move to tender stage at the earliest opportunity once our final negotiations with the EC are complete and the legal requirements met. This Government, and indeed the two councils, are absolutely committed to delivering this service as quickly as possible."

If that is what is proposed, it would waste public money and raise false expectations. This would be a waste of time. We need two modern fuel-efficient 12-knot 40-car bow-and-stern loading ferries for the route. Anybody who knows anything about the state of this market will tell you that if modern efficient ferries of the kind required were available, they would already be productively employed elsewhere. Why should they switch them here for a contract that under EC rules would end in six years? Who would build vessels with a 25 year life for a six year contract? This would be a time-wasting failure.

A quick tender would ensure a quick death for the service, which is very much what some people (I emphasize, not the Minister) would want.

If simply tendering was a sufficient solution, then the two new vessels for Bute could have been found just by sticking an advert in the Official Journal of the European Community ("Wanted - two spare ferries for Bute").

Instead, the government did the right thing by commissioning the build of these two ferries, with their subsequent operations subject to tendering under EC rules. Exactly the same should be done for the Gourock-Dunoon ferries

Point (c) "The Commissioner agreed to appoint one of the EU officials to work with Argyll and Bute Council and the Scottish Government on the Gourock/Dunoon ferry service, who would also visit Dunoon/Inverclyde"

This is the best news possible.

I have argued for years that that the European Commission has not been given an accurate picture of what has been going on here due to a combination of self-interested civil servant advice, and active corporate lobbying. There are solutions which would satisfy EC law and the public interest but which would be resisted by these same civil servants and corporate interests.

That is the crunch point. If the EC official responsible was presented with these solutions for consideration, then there would be some hope.

The Minister ultimately responsible for ferries is John Swinney. If he were to invite the EC to consider alternative solutions such as the ones I have put forward, well then yes, there is some hope.

Point (d) "Other items on the agenda included the Campbeltown to Ballycastle ferry"

All the points I made above hold equally for the Campbeltown to Ballycastle ferry. If you do not decide to contract CMAL (the government's vessel owning body) to build a modern vessel for the route based on the special requirements for the route, and then tender it under EC rules on the basis of least cost subsidy, then don't waste public money and everybody's time, and raise false hopes.

Neil Kay August 18th 2008