Cabinet Secretary for Finance and Sustainable Growth John Swinney today announced details of work targeted at delivering lower ferry fares for Scotland's island communities.

The first step will be a study to establish the most effective and sustainable structure for a Road Equivalent Tariff (RET) pilot scheme for setting ferry fares in Scotland. The benefits to islanders is a fundamental part of this study into RET.

Road Equivalent Tariff (RET) involves setting ferry fares on the basis of the cost of travelling an equivalent distance by road. High ferry fares have been seen by many as a barrier to economic growth on the islands. Lowering the fares to a level analogous to mainland traffic costs could act as a boost to island economies by reducing freight costs to local businesses, lowering the cost of living for island residents and making the islands more attractive to tourists.

Speaking from Stornoway Harbour Mr Swinney said:

"This Government recognises the vital importance of lifeline ferry services in supporting Scotland's island communities. We understand the genuine concerns from our remote and fragile communities about the affordability of ferry travel and the impact this has on islanders.

"I believe that the way forward is to consider the benefits of introducing a Road Equivalent Tariff (RET) approach to setting fares in Scotland. This approach would not just benefit islanders by providing cheaper fares but could also boost island economies by attracting tourists and supporting businesses.

"I am pleased to announce today that we have moved ahead to fulfil our commitment to carry out a study into the benefits of RET. As part of that study we will undertake a pilot scheme on one or more of the routes between the mainland and the Western Isles."