EU probes subsidies to UK ferry companies
The European Commission today launched an inquiry into the legality of subsidies paid by the Scottish Executive to ferry companies NorthLink and Caledonian MacBrayne in the UK.
The move was prompted by complaints to Brussels that the aid may amount to unfair competition.
“I am well aware of the importance of lifeline ferry services to ensure the survival and prosperity of isolated island communities in Scotland,” said EU transport commissioner Jacques Barrot.
“This is actually a very important reason why we should ensure full compatibility with European community law and provide legal certainty for the way these services are organised.”
The Commission emphasised that the cash support from the Scottish Executive may turn out to be “fair compensation” for the provision of ferry services and fully in line with EU state aid rules.
But a statement went on: “However, the Commission requires more information to check that the mechanism used in recent years does not fall foul of these rules, in particular that there has been no over-compensation for undue distortion of fair competition.”
A Commission spokesman said the decision to launch a full inquiry did not call into question the need for a “regular and affordable lifeline ferry service” for local communities, or threaten the continued provision of such essential services. The UK authorities have been given two months to respond to the complaints.
