At the same time as taxing maritime fuel emissions, the UK government subsidises certain vital regional sea routes. One example, introduced in April 2021, is on a new crossing connecting Campbeltown (on the Kintyre peninsula) to Ardrossan. Around 85,000 passengers are predicted to use this ferry service each year. Over its first five years of operation, Transport Scotland and the local regional council will each pay up to £1.7m in financial support, representing a direct subsidy of £8 per passenger for a return trip.
The Scottish Cabinet Secretary for Transport commented at the launch: "Securing and funding marine routes that bring together our peripheral communities is a core national priority. This new link will see local residents and businesses in Argyll benefit from a direct maritime connection, protecting regional choice, supporting tourism, and strengthening employment and travel opportunities across the country."
Evaluate, using evidence from the stimulus material, government intervention in the market for regional passenger transport.
