Referral of the proposed subsidy to CalMac Ferries Limited by Transport Scotland
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to Transport Scotland concerning its proposed subsidy to CalMac Ferries Limited.
Administrative timetable
| Date | Action |
|---|---|
| 17 December 2024 | SAU’s report to be published |
| 19 November 2024 | Deadline for receipt of any third-party submissions |
| 5 November 2024 | Beginning of reporting period |
Request from Transport Scotland
5 November 2024: The SAU has accepted a request for a report from Transport Scotland concerning the proposed subsidy to CalMac Ferries Limited. This request relates to a Subsidy of Particular Interest (SoPI).
The SAU will prepare a report, which will provide an evaluation of Transport Scotland’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by Transport Scotland
Transport Scotland is proposing to provide a subsidy to CalMac Ferries Limited for the running of Clyde and Hebrides Ferry Services (CHFS) between the neighbouring islands and the mainland. The estimated total subsidy is £3.7 billion over a period of 10 years. This subsidy level has been calculated on the basis of cost estimates of providing the lifeline ferry services over that period.
The policy objective of the subsidy is focussed on ensuring that the island/peninsula communities on the CHFS network are provided with a service that is accessible, reliable, convenient and will provide adequate resilience to those communities.
As part of the subsidy assessment, Transport Scotland has concluded that the subsidy is an SoPI. Transport Scotland also considers the subsidy to be for a service of public economic interest (SPEI).
The grant is being awarded pursuant to the exemption for “in-house” contractual arrangements provided for in Regulation 13(1) of the Public Contracts (Scotland) Regulation 2015 (as amended) (the Teckal Exemption).
Transport Scotland has said the the subsidy is not subject to an exemption under sections 43-51 of the Subsidy Control Act (SCA) 2023.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to CalMac Ferries Limited, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-chfs3-2024@cma.gov.uk, copying the public authority chfs3@transport.gov.scot.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with Transport Scotland. The SAU will send a copy of your submission to Transport Scotland together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the Transport Scotland using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-chfs3-2024@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk