McArthur challenges First Minister on freight fares increase

Orkney MSP Liam McArthur has challenged the First Minister to justify the decision to increase freight charges for commercial traffic travelling to and from the Northern Isles by 2.9 per cent.

The increase was announced by Transport Scotland recently, despite it having been indicated that freight fares would be frozen at least until RET comes into effect on the Orkney and Shetland routes.

According to Mr McArthur, there has been shock and anger locally at the decision, which comes into effect from January 1 next year, leading the MSP to raise the issue at First Minister’s Questions today, Thursday, in Holyrood.

Addressing the First Minister, Mr McArthur asked how the increase on freight “squares with government objectives of bearing down on the cost of living for islanders or indeed support for Scotland’s food and drink sector?”

He added: “Does she [The First Minister] believe it is right, as Audit Scotland have highlighted, that freight fares paid by hauliers on west coast routes remain largely unchanged since 2010, but have increased significantly for hauliers serving businesses and residents in Orkney and Shetland?”

Responding, the First Minister indicated the freight ferry fare review would be published “as soon as possible”.

Following the exchange in parliament, Mr McArthur said: “There is no doubt that the decision by the Scottish Government to increase freight fares will have an impact on the competitiveness of local businesses in Orkney. It will also increase costs for all local residents to some extent.

“Promises by Scottish Ministers that their ongoing review of ferry freight charges would be complete by the end of the summer have not been delivered. The expectation, however, was that fares would be frozen until the outcome of the review was known. That has not happened and the level of anger felt locally is understandable.

“The First Minister was unable to offer any clarity about when the review will conclude and no justification for the change in position in relation to fare increases. Meanwhile, her talk of investment in ferry services will ring hollow in Orkney and Shetland, where freight fares have risen markedly over recent years, while for hauliers on west coast routes, they remain largely the same as they were in 2010.

“I urge the First Minister to think again and put on hold any fare increases until the conclusions of the review of ferry freight fares is published.”