I am pleased to have secured this debate, and I am sure the Minister is delighted that we have reached the Adjournment at a point when we have ample time to explore the important issues of transport to and between the Isles of Scilly.
There is, frankly, a shocking injustice. Scillonian residents have been treated as second-class citizens when it comes to affordable transport, especially when compared to everywhere else in the United Kingdom. I hope the Minister will acknowledge that point, take it on board and consider working with me, the council of the Isles of Scilly and the residents to ensure islanders receive parity on public transport, which other parts of the country take for granted. Some places struggle with transport, particularly in rural areas, but the circumstances are very different in the Isles of Scilly.
This is not the first time I have secured a debate of this kind. For example, I raised these issues in Westminster Hall on 8 January 2002—column 158, to help the Hansard Reporters—and on 15 January 2003, and on many other occasions since. I raised these issues outside the House even during my nine sabbatical years away because of the injustice. Some improvements have been made, but services have also gone backwards. One example comes from one of my constituents on one of the four off-islands. There are four inhabited off-islands in the Isles of Scilly—St Agnes, Bryher, Tresco and St Martin’s—and one main island, St Mary’s. To get over to the main island of St Mary’s, where all the services operate—the hospital, other medical services and the council—residents from the off-islands need to get across waters that are sometimes very tempestuous. This constituent says:
“I broke my wrist…recently, and because there was no bone showing through my arm I had to wait 5 days to see medical personnel, have it x-rayed and put in plaster. I have had a medical procedure which involved 2 daily visits”
from this off-island
“to St Marys Health Centre but fortunately it was summer. If this was in the winter, I would had to have paid £240.00 just for the boating”
to and fro each time—it is a £120 return trip—as residents have no alternative but to book what are known as “specials” to attend an X-ray appointment or medical appointment or to visit an elderly resident, friend or family member in St Mary’s hospital.
“This again is £120.00 return. There has also been a cut back of transport funding for the under-five nursery services and clubs like the Brownies and so the list goes on and on, of all the problems that the residents of St Martins”—
where this constituent lives—
“are facing due to the lack of affordable boating.”
My hon. Friend is making a powerful case for his constituents. Does he agree that this is a problem not just for the Isles of Scilly, but for the Isle of Wight and the Western Isles? We are an archipelago. Those who live on the outer islands suffer from this inequity; they are as British as us, but they do not enjoy the same connectivity.
I am grateful to my hon. Friend, who leads me on to my next point. Although he says that we are all in the same boat—if you will pardon the pun, Madam Deputy Speaker—the fact is that we are not. Services in Scotland are very heavily subsidised, as I will explain. When we look for parity and comparability, the services offered for the Isles of Scilly and for Scottish islands are significantly different.
Of course, the Isles of Scilly have the additional challenge of being some 40 miles off the coast. I do not know how many miles the Isle of Wight is off the coast—is it 1.5, 2 or 3 miles? It is certainly a very short journey. In addition, because of the numbers of passengers going in that direction, the costs are obviously significantly less than for those on the Isles of Scilly.
The costs and prices for passenger transport, freight and indeed air transport for the Scottish islands are, in most cases, very heavily subsidised. I know that the UK Government are not responsible for the practices of the Scottish Government, but it was their responsibility prior to devolution, and indeed that is when the policy was established. The Minister may attempt to distance himself from something that is not the responsibility of the UK Government and hide behind that, but it was their responsibility originally, and that left a legacy that has given Scotland significant advantages.
There is no equivalent of the £3 bus fare for the Isles of Scilly—it is a £120 return, as we have just heard. There is no subsidised air travel, either. The entire economy depends very much on tourism, and tourism depends on travel. In those circumstances, we hope that the Isles of Scilly will be treated fairly.
There are very high freight costs, and the costs of getting food and other essential services to the islands are therefore very significant. My ask of the Minister is that he works with me, the council, transport providers and others to alleviate these pressures by finding an agreeable way to provide support to reduce these costs of living.
I appreciate the hon. Gentleman bringing this important debate to the Chamber. Exeter airport, which is one of the key transport nodes for the Isles of Scilly, is based in my constituency. My grandparents and great-grandparents on my dad’s side really enjoyed going down there on holiday, adding to that tourism economy. I have seen the price of travel to the Scilly Isles increase in recent years, which means fewer people are able to enjoy that. I would like to offer my support to the hon. Gentleman; if there is any way I can add in Exeter airport and work with him on some of these problems, I would be very happy to do so.
I am pleased that the hon. Member and his family have strong connections with the islands, but I caution him against describing them as the Scilly Isles—he will not be well received on the islands if he uses that particular nomenclature—but, certainly, if he continues to call them the Isles of Scilly, I am sure that he will be very well received. His offer of working with me and the islanders—the Scillonians—will also be well received, and I am very grateful to him for it.
Transport Scotland, an agency of the Scottish Government, subsidises most routes to islands in the Hebrides through a contract with Caledonian MacBrayne —CalMac—which is owned by the Scottish Government. The islands are also served by several other routes, some of which are subsidised by local authorities, and a handful are served without subsidy by private operators. The Scottish Government have supported the sector since the 1960s. They have been obliged to tender for services since the late 1990s, to comply with state aid regulations. That has altered the ownership structures of what remains a state owned and operated set of services.
Approximately 70% of CalMac’s revenues come from the Scottish Government. It is often said that for every pound paid by a ferry user, another £2 of public subsidy is required. By contrast, passenger services between the mainland and the Isles of Scilly have always been operated on a commercial basis, with the exception of during the covid pandemic, when, like all companies around the country, it was subsidised. Certainly, this was seen as a lifeline service by the Government.
The Isles of Scilly Steamship Group, the primary operator of the transport services to the Isles of Scilly, operates Scillonian III, which is now in its 49th year and will be replaced next year by the Scillonian IV. Indeed, it was purchased in the 1960s with a Government loan of £1 million during the period when Harold Wilson, who was a resident of St Mary’s, was Prime Minister. That did help the company purchase that vessel at that time. As the Minister will know, Harold Wilson is buried on St Mary’s, and his love and affection for the islands are well known. The ISSG operates that important lifeline link to the Isles of Scilly, but only during the summer months; it cannot operate during the winter because of the inclement conditions.
It is a pleasure to respond to this Adjournment debate. May I begin by congratulating the hon. Member for St Ives (Andrew George) for securing it and for speaking so passionately about transport provision for the Isles of Scilly? He speaks with his characteristic good nature on what are really severe and challenging issues facing his constituents and, at the first instance, I acknowledge that and his tireless work across many decades in Parliament where he has advocated on their behalf. I also thank him for his kind offer for us to work more closely together on this issue, which is certainly a commitment I would be glad to accept.
The hon. Gentleman is right to point out that the Isles of Scilly are unique, both in their beauty and their appeal to both residents and visitors, as we have so ably heard, but also that they have clear and pressing challenges in their transportation needs. Their location, 30 miles to the west of Cornwall, brings a set of unique transport challenges that the hon. Member has set out.
If he will allow me, first, I will briefly highlight some of the work that this Government are doing across transport, and notably in Cornwall, that will benefit the hon. Member’s constituents, before turning to the specific concerns that he has raised. We are providing record levels of investment to road, bus and active travel projects across the country to boost connectivity through simplified multi-year settlements. Although I appreciate that the Isles of Scilly are treated separately for funding purposes, Cornwall council, the local authority for much of the hon. Member’s constituency, will receive over £30 million of local authority bus grants during the spending review period, in addition to the £10.6 million it is receiving this financial year. It will also receive over £4.5 million for active travel, up to £221 million for highways maintenance and £24 million in local transport grant funding over the next four years. However, I appreciate that the hon. Member has brought this debate today because he wants to speak about the specific concerns of islanders, and it is those matters that I will now turn to.
To a certain extent, the Minister has implied the answer to this, but of course he is well aware that a bus cannot drive between the off-islands and St Mary’s—though there might be some inventive way in which someone could do such a thing. He must accept that if one is looking for parity between the Isles of Scilly and the mainland, one must recognise that we cannot have an open bus service. There are boats and launches that go between the islands—and yes, anyone can use them. Surely there must be a way of finding a parallel for the Isles of Scilly.
I take the point the hon. Member makes, and the point that he made earlier about the basic issue of equity for British citizens, irrespective of which part of the United Kingdom they live in. That being said, it is incumbent on me in my ministerial capacity to work within the framework of the regulations that have been set. Unfortunately, if they are too narrow to facilitate the interpretation that he advises us to make. I am afraid that that is the reality of the situation, but that is why it is all the more important that we find ways to engage together to solve these challenges. That is certainly what I want to do, following this debate.
Since last year, Artemis Technologies and other stakeholders have taken forward activity as a result of their successful bid to the Department’s clean maritime demonstration competition fund round 6. The Department provided £750,000 to enable a feasibility study to ascertain whether Artemis’s technology could provide a viable solution for an island route passenger service, particularly in the winter months, when residents have no regularly scheduled water crossing. We expect to hear the results very soon.
The UK emissions trading scheme will be extended to cover UK domestic voyages and all UK in port emissions for vessels of 5,000 gross tonnage and above from July 2026. I can assure the hon. Member that we have assessed that these criteria are not met for the Scillonian IV or the Scillonian III. Both remain outside the scope of the UK ETS, and the exemptions and threshold will be reviewed in 2028.
I am grateful for that clarification; I am sure that it will be music to the ears of the steamship company. Going back to the point about Artemis, which is exciting—I congratulate the Government for investing in it—is there any indication of the timescale for any roll-out that might benefit the Isles of Scilly?
The Department, of course, wants to pursue these projects at pace. If the hon. Gentleman does not mind, I will respond to him in writing with a more detailed timeline of when roll-out will begin.
To conclude, the Government are investing in roads, rail, buses and active travel projects across the country to connect people to jobs, education and opportunities. Our multi-year transport investments help local authorities to drive economic growth and deliver on our plan for change. There are still challenges that we need to overcome, and I commit to working with the hon. Gentleman to ensure that we tackle them for residents of the Isles of Scilly. I sincerely thank him for securing the debate, and for allowing me to address the House on these important issues, which I know are of paramount importance to both him and his constituents. I am sure that he will be able to cover this subject in more detail when he meets Lord Hendy, Lord Berkeley, Baroness Taylor and representatives from the Isles of Scilly council tomorrow morning. I look forward to working closely with him on delivering better transport provision and improved connectivity for everyone in his constituency and right across the United Kingdom.
Question put and agreed to.
5:48 pm
House adjourned.
The ISSG offers concessionary fares for islanders through its “travel club”, as it calls it, which is a way of building and rewarding loyalty. However, it is seen by others that somehow this service is being subsidised by visitors to the islands. We do not want to get into a situation where we discourage visitors to the islands. However, it is worth pointing out—I checked this online today—that if we were to book a return fare on the ferry from Penzance to the Isles of Scilly, which is a three-hour journey, more or less, on a 40 mile trip, that would cost around £220. If we were to catch a ferry from Mallaig to Canna, approximately 30 miles in Scotland, that journey would cost £14.20. If we were to go from Kennacraig to Port Askaig—Isla—the two-hour journey would cost £18. The comparison is something on which we need to reflect.
It is worth saying that most ferry services in England, such as the ferries to the Isle of Wight, are operated by private operators, just as they are on the Isles of Scilly, and receive no central Government grant or funding. There are other examples of publicly owned ferries in the UK, and between the UK and the Isle of Man. On Merseyside, Mersey Ferries is effectively owned by the local transport authority, Liverpool City Region combined authority. In 2018, the Government of the Isle of Man brought into public ownership the Isle of Man Steam Packet Company, which operates ferries between the Isle of Man, the UK and Ireland. The Isle of Man Government do not control the day-to-day running of the company’s ferries, but they do own a 100% stake in its parent company.
I have referred already to inter-island transport and the costs and made comparisons with the subsidies available to local authorities and passengers elsewhere. As I say, there is not an equivalent to the £3 bus fare, nor is there free transport for older people. This means that islanders have a significantly increased cost of living.
While the Isles of Scilly council is responsible for transport and the economic strategy as a member of the Isles of Scilly transport board, which also includes representatives of the transport providers and business groups, the council’s strategic economic plan—“Island Futures”—includes a core aim to
“improve transport connectivity across the islands and to the mainland”.
In relation to connectivity, the strategy aims to secure
“resilient, year-round transport services to Cornwall and further afield”.
It recognises that improving transport connectivity is a “major challenge”—that is an understatement—and aims to make the islands more self-sufficient and resilient to future changes, including in relation to transport connectivity and between the islands.
There are other matters that complicate and worsen the situation for the Isles of Scilly. Its council is responsible for running the airport. It is a very small council, with a budget of £8.8 million, but it has to run a fully regulated airport, which is a lifeline service. I understand that its landing fees are due to increase 18% this year simply to meet the pure costs of the regulatory challenges. The transport operators are complaining about this, and understandably so—it is a great expense.
When I was last in Parliament, the European geostationary navigation overlay service system—Europe’s satellite-based augmentation system that ensures safe use of the services—was in operation. One of the many so-called Brexit benefits is that we can no longer use the European safe satellite system. It has been withdrawn, so the services have become less resilient and more weather-dependent than they were just 10 years ago. So even where a system is in operation, it is struggling.
The Minister will also know that the Isles of Scilly Steamship Company has expressed concern about the expansion of the emissions trading scheme. While we want to have cleaner atmospheres, the question is about the proportionate impact this scheme is likely to have. Initially, it will apply to vessels with a gross tonnage of over 5,000 from 1 June this year, and then to vessels with a gross tonnage of over 400 from 2028, which will add cost to the service. It would be helpful if the Minister talked to the steamship company, but I know that he is addressing this issue, which is very helpful—I do appreciate that.
Help has been provided. As part of the previous Government’s levelling-up programme, £48.4 million was offered to create a new vessel. Indeed, when I was elected other subsidies were available, but unfortunately it was not always possible to get the operator of the service—the steamship company—to agree to use those funds in the way that they were offered.
I know that the Minister has responded, in correspondence and in meetings, about how the English national concessionary travel scheme is supposed to operate, but we do not have buses between the off-islands and the main island, so it is absurd to attempt to apply mainland, landlocked transport policies to a maritime environment such as the Isles of Scilly. I urge him to look at that again. He goes on to tell me that the local authority can provide concessions, but the council of the Isles of Scilly is struggling to survive, let alone being able to provide additional concessions for its transport services. I hope that the Minister will look again at these matters.
The recommended policies that we ask the Minister to consider are: extending the powers under the Concessionary Bus Travel Act 2007 to classify inter-island boating as eligible public passenger transport; beginning a pilot scheme with the Isles of Scilly, perhaps during next winter; and seeing how we get on and evaluate it after a 12-month period. We could create an islands transport mechanism, equivalent to the Scottish air discount scheme or ferry support services, and establish a statutory footing for island-appropriate subsidy powers. We could provide emissions trading scheme transitional relief for lifeline routes and describe the service to the Isles of Scilly as such a route to prevent fare spikes when the ETS comes into force. We could also support harbour electrification for Penzance and St Mary’s.
I am grateful to the Minister for responding to the issues that I have raised previously and I hope that he will take on board the issues that I have raised today. I am delighted to say that the chair of the council of the Isles of Scilly, Councillor Robert Francis, is in the Public Gallery watching this debate, and he will be as keen as I am to continue the conversation with the Minister after the debate, as it is desperately important that we address the very serious transport challenges that Scillonians face.
The Isles of Scilly are served by a ferry service for eight months of the year, provided by the Isles of Scilly Steamship Company and its vessel, the Scillonian III. I am pleased that the company has commissioned the building of a new passenger ferry, the Scillonian IV, which, as the hon. Member has outlined, is due to come into service next year. In addition, it has two new freight vessels coming into service this summer, and a further vessel is to be launched in 2027. These investments will help secure services between the isles and the mainland for the foreseeable future.
The hon. Member is right to point out the cost of living impact of the transport challenges that his constituents face. The cost of living is a key issue for this Government, and I recognise his and his constituents’ concerns regarding the unique challenges around the high cost of travel to, from and between the islands. I acknowledge the difficulties the island communities face, both in travelling to and from the mainland and in travelling between the islands, and my Department remains committed to delivering better, sustainable and more affordable transport provision. This will be reaffirmed in the integrated national transport strategy, which will soon be published.
Although the amount of transport funding that we are able to offer the Isles of Scilly through the legislative means that the hon. Member outlines is, in my view, limited, that does not mean that we do not wish to do all we can to improve the services there. I can confirm that we are providing the council with a total of £291,000 in highways maintenance incentive funding, up to and including 2029-30, to maintain and improve local roads. Alongside this, we have allocated £140,000 in active travel funding to support the development and construction of walking, wheeling and cycling facilities, and to support network planning and community engagement.
I would like to reassure the hon. Member that I am committed to continuing the engagement between the Government and the Isles of Scilly. It is of paramount importance to me and other Ministers that this continues. Officials from my Department and the Ministry of Housing, Communities and Local Government visited the Isles of Scilly last year and spoke to residents to gain a greater understanding of the challenges that people face. This was followed by a visit in July from Baroness Taylor. These visits were valuable for our Departments, which have worked collaboratively to understand the challenges for people on the islands, including economic difficulties and transport-related issues. Both Departments remain in regular contact with the Isles of Scilly council, which is proactive in driving forward change.
I also recognise the impact of the increasing cost of fares and of transport operations on the people of the Isles of Scilly. It remains the case that all air and sea services to and from the islands are commercially operated, without public subsidy. As I have explained in correspondence with the hon. Gentleman, the threshold for Government intervention in such markets is extremely high, and there are no current plans to intervene, given that commercial services remain viable. I take his point about the provision for the Scottish islands and the legislative hangover from previous Governments’ time in office, but I would note that the situation in question was distinct, in that the services could not operate on a commercial basis. I reassure him that, through the Department’s public service obligations, a policy is in place that if any air transport routes were at risk of being lost, we would assess whether intervention was needed to ensure that the vital links between the islands and the mainland were maintained.
I also recognise that inter-island boat services are vital for the Isles of Scilly community. As I have set out to the hon. Gentleman, however, if a service is to be covered by the £3 national bus fare cap, it has to meet the necessary criteria, including being an open bus service that allows all members of the public to board. The English national concessionary travel scheme is a statutory bus-specific scheme, and it does not extend to maritime transport, but I understand his concerns about the limitations of that framework.
Local authorities have the discretion to offer concessions on other modes, and I am aware that the Isles of Scilly council already provides a health pass, as well as a discretionary concession pass. On ferry services, it is for the Isles of Scilly Steamship Company to decide whether to offer concessions, but I take on board the hon. Gentleman’s very reasonable point about the fiscal pressures faced by the council, and the concessionary offers that it is able to provide. That is certainly something that I will take away and reflect on as a result of our debate.