This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/8329558.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 3 Version 4
Ferry subsidy 'in order', says EC Ferry subsidy 'in order', says EC
(about 2 hours later)
Concerns that the government's funding of Scotland's lifeline ferry services breached European competition law have been rejected by an official inquiry.Concerns that the government's funding of Scotland's lifeline ferry services breached European competition law have been rejected by an official inquiry.
Services in the Clyde, Hebridean and Northern Isles are provided mainly by state-owned Caledonian MacBrayne and Northlink.Services in the Clyde, Hebridean and Northern Isles are provided mainly by state-owned Caledonian MacBrayne and Northlink.
The European Commission said this was "compatible with state-aid rules".The European Commission said this was "compatible with state-aid rules".
But it insisted on an open and accountable tender for operators to run the Gourock-Dunoon ferry route.But it insisted on an open and accountable tender for operators to run the Gourock-Dunoon ferry route.
The commission also warned it would keep an eye on the situation to "avoid any undue distortion of competition".The commission also warned it would keep an eye on the situation to "avoid any undue distortion of competition".
'Serving taxpayers''Serving taxpayers'
Scotland's main private ferry companies, Western Ferries and Pentland Ferries, have expressed serious concern of being squeezed out by CalMac.Scotland's main private ferry companies, Western Ferries and Pentland Ferries, have expressed serious concern of being squeezed out by CalMac.
But CalMac has argued that opening up individual routes to competition could result in private operators "cherry picking" the most profitable ones and pose a substantial threat to the future of "lifeline" services, which need subsidy to survive.But CalMac has argued that opening up individual routes to competition could result in private operators "cherry picking" the most profitable ones and pose a substantial threat to the future of "lifeline" services, which need subsidy to survive.
The operator has insisted that maintaining the current situation where the Clyde and Hebridean routes are offered as a package of 24, with the exception of Gourock-Dunoon, best served island communities and the taxpayer.The operator has insisted that maintaining the current situation where the Clyde and Hebridean routes are offered as a package of 24, with the exception of Gourock-Dunoon, best served island communities and the taxpayer.
SNP MEP Alyn Smith, who called for the inquiry, said its findings had secured the future of vital ferry services.
"After decades of jumping through EU legal hoops this is a positive decision for Scotland's remote and island communities," he said, adding: "I hope those operators of alternative routes who have repeatedly threatened legal action will accept this decision."
The European Commission moved to investigate the issue after expressing doubts about whether subsidy levels were higher than the actual cost of providing ferry services, and whether the absence of a tendering exercise to operate Gourock-Dunoon was in line with state aid regulations.The European Commission moved to investigate the issue after expressing doubts about whether subsidy levels were higher than the actual cost of providing ferry services, and whether the absence of a tendering exercise to operate Gourock-Dunoon was in line with state aid regulations.
The commission ruled the compensation paid to the operators in the past "did not exceed the costs of providing the public service entrusted on them" and added it "did not find sufficient evidence that these operators had engaged in any type of anti-competitive behaviour that might have unduly distorted competition".The commission ruled the compensation paid to the operators in the past "did not exceed the costs of providing the public service entrusted on them" and added it "did not find sufficient evidence that these operators had engaged in any type of anti-competitive behaviour that might have unduly distorted competition".