Road Equivalent Tariff Study Stakeholder Meeting 13th May 2009

3 Phases Phase 1 – RET Options –Completed May Phase 2 – Monitoring the Pilot scheme –Baseline surveys August 2008; –Data collection throughout the Pilot. Phase 3 – Evaluation of the Pilot scheme –November 2010 –Interim assessment November 2009.

Phase 2 – Monitoring of the Pilot Scheme RET Services: –Stornoway – Ullapool; –Uig – Tarbert/Lochmaddy; –Oban – Castlebay/Lochboisdale; –Oban - Coll/Tiree. Benchmark services: –All other Calmac services; –Northlink Services; –Western Ferries.

Phase 2 – Monitoring of the Pilot Scheme RET Area: –Western Isles, Coll and Tiree Benchmark Areas: –Northern Isles; –Other island and Insular Communities; –Rural areas on the Mainland: Highland Moray/Aberdeenshire Scottish Borders.

Short-term Impacts To establish the short-term impact of the RET Pilot scheme the following data is being collected: –Ferry traffic data – passengers; cars and CVs –Capacity utilisation –Accommodation occupancy rates –Employment and Unemployment –Business confidence; turnover; profitability and costs –Business start ups –Price of goods and services –House prices –Quality of life –Environment

Ferry Traffic Data

Low Season Passenger Traffic Change

Low Season Car Traffic Change

Access to Ferry Aug-08Nov-08 Motor vehicle taken on ferry 68%74% Car (dropped off) 9%7% Bus/coach 7%8% Car (parked at terminal) 5%6% Walk 3%2% Taxi/ minicab 3%1% Cycle 2%1% Train 1% Other 1% Total

Frequency of travel May-08Aug-08Nov-08 VisitorResidentVisitorResidentVisitorResident First visit34%0%33%0%9%0% Daily1%0% 1%0% Once a week2%5%1% 4%1% Once a month5%42%10%43%20%26% Once a year23%53%35%54%49%72% Once in the last 5 years25%0%14%0%11%1% Once in my lifetime11%0%7%0%7%0% Total

Reasons for using ferry Ferry first mode of choice in summer for 98% of both visitors and residents –But only 93% in winter. Residents main reason for ferry was –because they need to take the car. Visitors main reasons for taking the ferry were –need to take the car; and –high cost of air travel. Residents and Visitors rate cost of taking car is greatest constraint on frequency of trips; –Residents also deterred by travel time.

Residents’ reasons for travelling

Issues for Business No apparent reduction in the cost of transporting goods to/from the Western Isles; Coll and Tiree. Low savings for small vans (<5m) presents difficulties for businesses to pass on savings to customers. Confusion over derogations available for agriculture and lack of equity for seafood/fisheries. Reduced flexibility – return tickets valid for one month only and removal of six journey booklets.

Issues for Business Other Concerns Capacity of ferries, particularly in the peak season. Unmet demand (i.e. trips that cannot be made because the preferred sailings are fully booked); –and how this will be monitored. Island infrastructure to support potential increase in the number of visitors; –in particular budget accommodation and suitable facilities for camping and motor-homes.

Occupancy Rates in Visitor Accommodation Oct-08Jan-09 Western Isles, Coll and Tiree7018 Northern Isles5717 Other Islands7411 Scottish Mainland (rural areas)7017

Price Survey Price data for groceries and household items shows no consistent pattern of prices being higher on the islands than mainland Scotland. Baseline fuel prices are consistently higher for the islands. Location Petrol (pence difference) Diesel (pence difference) Edinburgh Glasgow Inverness Skye Oban Orkney Ullapool Shetland Stornoway Sample Average95.79p/litre108.06p/litre

Residential House Prices

Road Equivalent Tariff Study Stakeholder Meeting 13th May 2009