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.