1. Road Equivalent Tariff Study Stakeholder Meeting 13th May 2009

2. 3 Phases Phase 1 – RET Options –Completed May 2008. 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.

3. 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.

4. 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.

5. 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

6. Ferry Traffic Data 2003-2007

7. Low Season Passenger Traffic Change

8. Low Season Car Traffic Change

9. 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 231133

10. 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% Total172551387255115

11. 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.

12. Residents’ reasons for travelling

13. 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.

14. 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.

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

16. 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 -6.89-4.16 Glasgow -7.56-8.16 Inverness -6.89-7.41 Skye -0.391.84 Oban -0.891.84 Orkney 1.111.84 Ullapool 2.113.84 Shetland 17.1113.34 Stornoway 13.6111.34 Sample Average95.79p/litre108.06p/litre

17. Residential House Prices

18. Road Equivalent Tariff Study Stakeholder Meeting 13th May 2009