To ask the Scottish Government whether it will provide an update on work to extend the application of road equivalent tariff to northern isles ferry routes. (S6O-03508)

The Scottish Government remains committed to providing affordable ferry fares for the northern isles, and we have reduced fares where we have been able to do so. Significant fare reductions have been introduced on routes from Aberdeen to Orkney and Shetland, including a 20 per cent discount on cabins, a three-year fares freeze for islanders and a freeze on all fares in 2023-24.

Ferry fares policy, including RET, is currently being reviewed. The draft “Islands Connectivity Plan—Strategic Approach” paper, which was published for consultation on 1 February 2024, made a number of proposals on ferry fares policy, including RET. The online consultation concluded on 6 May 2024; responses are being collated and analysed; and further detail on next steps and timescales will be confirmed in due course.

The Scottish National Party introduced RET on Western Isles ferry routes in 2008. Since then, the excuses for not providing the same cheap fares on Pentland Firth routes have changed almost as often as transport ministers. Last year, the transport secretary advised me that, under the United Kingdom Subsidy Control Act 2022, the Government could not move forward, because of potential distortions of the market. The Scotland Office subsequently confirmed that the act allows devolved Administrations and local authorities to give subsidies that are tailored to local needs.

In addition, there has been an increase in ferry fares of 8.7 per cent from April this year. Is it not the case that Scottish ministers have been stringing the people of Orkney along for 16 years, with no intention of providing them with a fair deal on lifeline ferry routes across the Pentland Firth?

That is not the case. Indeed, the three-year fares freeze for islanders and the freeze on all fares in 2023-24 represented a significant subsidy to and support for islanders at a time when the costs of operation were increasing as a result of increased wage costs and, as everybody will remember, eye-watering increases in energy costs. Fares were frozen at that level for a considerable period of time.

As for subsidy control and competition law, the Scotland Office can speak for itself, but I would not interpret its remarks as a get-out clause on subsidy control and competition matters. As Liam McArthur well knows, because he is an experienced member of this Parliament, competition law and subsidy control matters are very serious issues that can lead to legal challenge to the Government and severe consequences. I do not take such issues lightly, and they have been continuous over the period of time to which he refers.

I call Rhoda Grant for a brief supplementary question.

Will the cabinet secretary confirm that state aid rules and competition law are no longer a barrier to having RET on northern isles routes? Will she also confirm that the people of Orkney and Shetland will enjoy the same subsidies as people on other islands?

Brexit is still happening, and it is not a “Get out of jail free” card for state aid issues. Indeed, as part of its agreements with the European Union, the UK Government was to continue to have competition law and subsidy control measures that would enable equivalence with regard to its previous activity. I think that there has been a misunderstanding by Rhoda Grant, and I am happy to explain things in more detail, at a later date, if she so chooses.

I will be grateful for concise questions and responses.