9 May 2001

TENDERING PROCESS UNDERWAY FOR BALLYCASTLE CAMPBELTOWN FERRY LINK

Sir Reg Empey, Minister for Enterprise, Trade and Investment and Gregory Campbell, Minister for Regional Development, have welcomed yesterday's announcement from Scottish Secretary, Helen Liddell, that the first stage of a tendering process seeking expressions of interest from potential operators of a ferry link between Ballycastle and Campbeltown is underway.

Speaking this afternoon, Sir Reg said: "The Northern Ireland Executive is fully aware of the potential for the local economy of improving transport links between the two regions. Both of our Departments, in close contact with the Scotland Office and the Scottish Executive, have been examining the case for the development of the route."

Mr Campbell said: "We welcome the news that the Scotland Office is to invite potential operators to come forward with proposals which of course will have to be carefully evaluated, particularly on a cost basis. Based on this information both Departments will consider whether or not to proceed to tender under the terms of the Public Service Obligation."

NOTES TO EDITORS:

The tender process for the ferry service will be held under the restricted services procedure of the EU Directive on public procurement of services (92/50/EC). This is a two stage process, initial expressions of interest from potential bidders will be required to complete a pre-qualification questionnaire. Subject to indications that the service can be carried out at a reasonable cost, bidders that pre qualify are then invited to take part in the detailed invitation to tender. An advert has been sent to be placed in the Official Journal of the European and will appear in the next 12 working days. Adverts will also appear in the Lloyds list shipping newspaper on Friday 11 May and the Campbeltown Courier and Ballymoney Times in the course of next week. The proposed ferry service would operate for a minimum of 6 months per year April – to September inclusive.

A summer only ferry service operated between Campbeltown and Ballycastle in Northern Ireland for three years 1997-99. The service was operated on a commercial basis. The service was terminated just before the 2000 season on the grounds that it was making unsustainable losses. It was concluded that the service would only restart if a subsidy were paid to support operating costs.

A Ferry Action Group, presently chaired by George Foulkes, Scotland Office was established in July 2000, to examine feasibility of resuming the ferry service. The Action Group includes representatives from government, the Scottish Executive, Northern Ireland Executive, local authorities, local enterprise network, local MPs MSP and MLAs and other interested parties. Research carried out for the Action Group indicated that a 6 month summer service could create over 140 jobs in Scotland and Northern Ireland.

EU Council regulation 3577/92 on maritime cabotage and Community Guidelines 97/C/205/5 on state aids to maritime transport set out the legal position for public subsidy of ferry services. A Public Service Order allows subsidy to be paid on grounds of serving peripheral regions of the community or thinly served routes vital to economic development that would not otherwise ensure sufficient service levels. There is no formal mechanism for approval of a PSO. Informal discussions were held with officials from the Transport Directorate General of the Commission and on the basis of the evidence presented to them they have not raised any objections to the necessity of declaring a PSO for the Ballycastle to Campbeltown route.