The Isle of Bute Blog

Just a little news, info, comment and discussion.

Road Equivalent Tariff brings new problems

Rothesay harbourApart from being interesting, it’s always a good idea to keep an eye on ferries around the country, as this can help in maintaining a balanced view when considering the pros and cons of local events – especially if they might affect you.

Looking a little further along the coast and to the north, a number of destinations in the Western Isles will benefit from a Scottish Governement subsidy over the coming three years, and in the pilot scheme will receive some £22.5 million in Road Equivalent Tariff (RET), intended to make the ferry trip cost equivalent to that of a similar journey of the same length by road. Some fares have been halved as a result.

On a Pro/Con basis, the scheme has led to calls from some that the subsidy benefits the Western Isles (which has Scottish Nationalist MSPs), but not Orkney and Shetland (which has Lib Dem MSPs), however it has been noted that the RET fare from Aberdeen to Shetland is less than that of the equivalent road trip. Further problems are then encountered as the destinations that don’t share in the subsidy claim that they are losing visitors, as visitors choose to travel on the routes with the lower fares.

March 16, 2008 - Posted by | Ferries, Transport | , ,

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