1) review approaches to fare-setting for public service ferries in other countries;

2) offer definitions of RET that could be applied to all categories of passenger and vehicular traffic in the context of ferry fares for the Clyde and Hebrides and Northern Isles routes which are subsidised by the Scottish Executive;

3) provide an initial analysis of the potential impact (especially in economic and social terms) of the introduction of an RET approach;

4) make recommendations on the design and implementation of a pilot study applying RET on one or more of the routes connecting the Scottish mainland and the Western Isles, including the choice of route(s), anticipated costs, start date, length of the pilot, operational constraints and any capacity constraints that may emerge; and

5) carry out any baseline information gathering in advance of the pilot that is considered necessary for subsequent monitoring and evaluation purposes.