investigations into state aid and public money grants to NorthLink and CalMac Ferry services

On the 23rd of May 2008 the EC published a communication of the confirmed state aid from the 16th April 2008, to two maritime transport service companies in Scotland, United Kingdom. Under procedures relating the implementation of the competition policy, state aid in the form of subsidies has been awarded to CalMac and NorthLink for maritime transport services. The Commission has invited third parties to offer their comments. They must be received within one month of the date of publication of this decision to:

European Commission
Directorate-General for Energy and Transport
Directorate A — Unit 2
B-1049 Brussels
Fax (32-2) 296 41 04

Both CalMac and NorthLink are publicly owed companies and both are receiving an increasing amount of public subsidies from the Scottish Executive in relation to the operation of ferry services on the aforementioned routes. The amount of public money granted to both companies is at present more than GBP 75 million a year. However, the Commission has received several complaints and interventions of stakeholders about illegal and unfair State aid to these two publicly-owned companies, damaging the competitive positions of private companies operating on part or all routes concerned. Thus, with respect to the grants awarded to CalMac, NorthLink 1 and NorthLink 2 the Commission has launched an inquiry as to whether these grants correspond to properly defined public service obligations within the meaning of EC law, and whether they are compatible with the common market.

CalMac Ferries Ltd created in 2006, at present charters a fleet of 29 vessels from CMAL to provide passenger, vehicle and shipping services to the islands off the West Coast of Scotland and in the Clyde estuary. There are currently 26 routes within the network served by CalMac. As regards only CalMac Ferries Ltd, in the year ended on 31 March 2006, it transported 5,3 million passengers, 1,1 million cars, 94 000 commercial vehicles and 14 000 coaches on these routes. Between 1995 and 2006, the company has recived approx. 366,000 pounds in public money granted by the Scottish Office/Executive.

NorthLink began in 2000 and operates two combined passenger car and freight vessels and two freight and livestock vessels. NorthLink also operates a combined passenger, car and freight vessel on the shorter Pentland Firth crossing.

The official text was published in the OJ on 23rd May 2008.