Options for the Corran Ferry service to be further developed
6th November 2014
The Community Services Committee today considered the implications of a report on the cost of running the Corran Ferry, which, despite fare increases, continues to run at a deficit.
Under European State Aid tests, there is a real possibility that the public funding of the Corran Ferry service deficit may be viewed as State Aid.
Director of Community Services said: "We want to be as open and transparent as possible. Rural deprivation is a key issue, but this is the position - State Aid regulations mean that we can't be seen to continue to subsidise the running of the ferry and we have therefore presented 3 options for closing the funding gap."
The Committee considered three clear options which are:
· To continue running the service by increasing charges to meet costs
· To re-tender the service
· To transfer the service to Transport Scotland
Community Services Chair, Cllr Graham Mackenzie said: "We are committed to doing the best we can for the people in the community, within the legal framework."
A detailed report will be brought to the Committee in 2015.
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