Now conveniently forgotten about by media and settlers – How the Scottish Government transformed the economies of Scotland’s island communities

Professor John Robertson OBA

Many thanks to Legerwood for reminding us of this

The above chart from the Evaluation of Road Equivalent Tariff [RET] on the Clyde and Hebridean Network Prepared for Transport Scotland March 2020 reveals a massive increase in ferry usage to the islands with a consequent economic boost, but increasing costs for the taxpayer in lost revenue. The comparison is based on ticket sales only and takes no account of retail revenue, which is likely to have increased as a result of the increased numbers of passengers.

What is the RET?

In October 2008, Transport Scotland introduced the Road Equivalent Tariff (RET) fares policy as a pilot on routes to the Outer Hebrides, Coll and Tiree (and made permanent in 2012). The principle of RET is that ferry fares should be set on the basis of travelling an equivalent distance by road plus a fixed fare element aimed at cost recovery. RET was intended to reduce the cost disadvantage faced by island communities and promote the islands as places to live, work, visit, invest and conduct business. In 2012, the policy was extended to cover Colonsay, Gigha and Islay. It was then further extended to the two Arran routes and Campbelltown in 2014. Finally, in October 2015, RET was rolled-out to all remaining routes, including the high-volume routes of Oban – Craignure, Wemyss Bay – Rothesay and Largs – Cumbrae.

How much has RET cost the Scottish Government in revenue foregone?

RET is now costing the Scottish Government around £25m per annum in revenue support, around two thirds of which is supporting reductions in car fares.1

What has the RET achieved?

Increase demand for ferry services by making ferry travel more affordable and accessible. Increase tourism and supporting existing tourism markets. Enhance local economies and the wider national economy.

Do the so-called representatives of the islanders ever recognise this?

Nope.

As well as this subsidy in the form of lost tax revenue, the Scottish Government directly subsidises CalMac, by £3.7 billion over ten years.2

What would happen without these subsidies and a privatised ferry service? Something like this:

Sources:

  1. https://www.transport.gov.scot/media/49397/evaluation-of-road-equivalent-tariff-on-the-clyde-and-hebridean-network.pdf
  2. https://www.gov.uk/government/publications/report-on-the-proposed-subsidy-to-calmac-ferries-limited-by-transport-scotland

8 thoughts on “Now conveniently forgotten about by media and settlers – How the Scottish Government transformed the economies of Scotland’s island communities

  1. Well done TuS and Legerwood.

    Prehistory of RET?

    RET, RET now where did I hear about Road Equivalent Tarriffs recently? Hmm. Oh, I remember, Sat 12th April 2025. There was a BBC Alba programme about Gaelic current affairs from 1975. One newspaper round up was the Scottish Office / islanders discussions about ferries – and which routes should be included in a road equivalent tariff for ferry charges to be implemented by the UK WESTMINSTER GOVERNMENT

    50, FIFTY, years ago UK WESTMINSTER GOVERNMENT was going to implement Road Equivalent Tarriifs.

    In 2008, after 33, thirty three, years of Labour and Tory UK Westminster governments constipation, the recently elected SNP Scottish Government trialled, then rolled out Road Equivalent Tarriffs.

    1975 to … 2008, 33 years of prevarication, whilst London boomed on the Scottish oil bonanza…….. heehaw help for islanders, then…..the evidence is on the article.

    DottieB

    Liked by 5 people

    1. if I remember correctly the LibDems proposed RET but despite being part of the Coalition Scottish Executive they did notbdo anything to make it happen. At one point too a LibDem was the minister for transport.

      Liked by 3 people

      1. That would be Nicol Stephen who devised the byzantine system of procuring ferries by inserting CMAL into the chain of decision making. He claimed this was necessary to comply with EU regulations.

        Liked by 2 people

  2. If somebody moved into your street from Aberdeen, Inverness, Perth, or even one of our many islands, you wouldn’t call them “settlers”.
    So kindly desist from using that expression for islanders. It is divisive, deprecatory and offensive.

    Like

  3. O/T

    BBC website Scottish Politics page ( fourth article on their main Scottish page) , it is not top article but the second article. it will soon be gone gone gone).

    “Former council leader charged over fraud offences”

    So I thought , with that headline it just cannot be the SNP that this person was formerly with, as they, the BBC, did not include the party name of the “Former Council leader”.

    I was right, it was not a SNP “Former Council leader”.

    BBC in Scotland just cannot break their so obvious partisan habit of omission when it comes to any party bar the SNP.

    So who was it and what party did he represent ?

    Former Glasgow City Council leader and ex-Labour MSP Frank McAveety has been arrested and charged over fraud offences”.

    “Police Scotland confirmed the allegations were related to incidents in Glasgow between 2022 and 2024”

    The BBC article about this is brief , far too brief.

    As it only includes a very very very condensed (brief) history of Mr McAveety’s time in politics, omitting the time that he made the wholly inappropriate remarks about a 15 year old girl when he was convener of a Holyrood committee , so bad were the remarks that he quit his role as committee convener.

    No worries though for Labour as in 2023 as he, McAveety, was shortlisted as Labour candidate for WM for Glasgow North East and Glasgow East, where he then withdrew from the process.

    Also no mention of his involvement, as Glasgow Council Leader for the then Labour council, in trying to prevent (blocking) women who were employed by Glasgow council from getting equal pay. (the then Labour Council being aided in their attempt to do this by , checks bloody notes, the GMB Trade Union).

    I read this online in January 2023, which stated quite eloquently how ridiculous (shocking actually) it really was on McAveety being chosen as someone who was shortlisted in 2023 as Labour’s future WM candidate:

    “From 2015 to 2017 McAveety was Labour Group Leader and Council Leader. He did nothing to end the discriminatory pay scheme which the Labour-controlled Council had introduced in 2008. In 2018 some 4,000 women Council workers marched through Glasgow in what was probably Britain’s biggest ever equal pay strike. They carried placards with McAveety’s picture, as one of the three Labour Council Leaders responsible for “A Decade of Delay” in resolving the equal pay dispute”.

    “McAveety has now withdrawn from the selection contest, issuing a long and tedious statement which ignores the issue of why he was not fit to stand and instead denounces the SNP and the Tories, etc., etc. He just doesn’t get it, does he”?

    No he does not .

    But then , neither do Labour or indeed media like the BBC “get it” either, though that is tactical only, as they really do “get it” but ‘play politics’ to pretend they do not “get it”.

    (Though they, the Labour party, should “Get it” in 2026, as in “get” their just desserts in losing the Scottish election , not just by a narrow margin, but in what should be , if there was any justice, a result that sees them lose by a significant margin).

    When any scandal is linked to any SNP politician or the SNP as a party, we then see both Labour politicians and also the BBC Scotland news teams jump onto their moral high horse that they sit on far too often when speaking or writing about the SNP, in them both critiquing and casting aspersions upon why this, as a scandal, is not just bad but it is #SNPBAD. (the worse bad there is apparently, if one listens to (and believes) both Labour and the BBC Scotland news teams).

    I really hope a majority do vote SNP in 2026 to show Labour and the BBC Scotland news teams that their propaganda does not work any more with those voters here in Scotland who previously have given both Labour and the BBC Scotland news teams way way way too many (inexplicable) chances , and now they, as voters, realise they have been duped. No more will they be fooled (we hope, surely to God).

    Liz S

    Liked by 1 person

    1. Just to add Scotland’s, checks bloody notes, so called newspapers do not rate this as a major political story.

      Only two papers note this McAveety story on their front pages .

      The Herald has a small section bottom right of their front page with headline “Ex Glasgow City Council leader is arrested”.

      Glasgow Times has front page headline with no picture or article connected to headline “Ex Council leader arrested over alleged fraud”.

      No other , checks bloody notes again, Scottish’ paper mentions this story on their front page, The Sun does have room for another story “Gropegate” which is a story linked to the BBC’s Strictly Come dancing programme.

      The client media of the Labour party The Daily Record chose a #SNPBAD story on flu deaths in Scotland. (this is one in a series of #SNPBAD articles they, the DR, will publish all the way up to the 2026 Scottish elections, while like the BBC omitting most #LabourBad political stories).

      BTW McAveety was a significant political figure whose time as a Labour politician saw him involved , in the past, in incidents that really were , to quote the BBC’s favourite word that they connect to the SNP, “Controversial”.

      Liz S

      Like

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