Ferry operator Caledonian MacBrayne today (Wed, June 1) moved to its new offices/terminal facilities at Ballycastle, the Northern Ireland mainland port for the Rathlin island service.

CalMac, which has operated the Ballycastle-Rathlin ferry service since 1996, last year extended its contract to provide the service from 31 March, 2004 until 31 March, 2006.

Speaking at the ceremony in Ballycastle, CalMac Chairman Dr Harold Mills said: "We were delighted in 2004 to have our contract as the operator of this service extended for a further two years and we look forward to developing our relationship with the communities of Rathlin and the mainland of Northern Ireland. I am pleased also that we have come to this leasing arrangement for the new facilities with Moyle District Council with whom we work very closely. The improvement in traffic on the route, which has seen our traffic on the route grow enormously from 37239 in the year ended March 2001, to 46128 in the financial year just ended. Car traffic has similarly grown from 2557 to 2723 in the year ended March 2003, with a slight drop this latest year to 2625, reflecting the relatively poor summer weather-wise. The growth is very welcome and reflects the additional resources we have devoted to marketing the route. This move to the new office and terminal at the head of the slipway offers customers a much better level of service on shore and we look forward to developing the service with our colleagues in Northern Ireland."

The Ballycastle-Rathlin route continues to benefit from the general marketing activities undertaken by CalMac and benefits specifically from a local marketing plan.

As part of the Company’s enhanced customer care services, customers using the Rathlin island service will now be issued with lightweight ponchos free of charge to enable them to sit outside and travel more comfortably whilst enjoying the panoramic views between the mainland and the island.

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For further information on the contents of this News Release, please contact Hugh Dan MacLennan, Head of Communication and Customer Care, Caledonian MacBrayne. Tel: 0776 435 4021.

Issued: Wednesday, June 1, 2005; 0900 hours

Background note:

Caledonian MacBrayne (CalMac) is a limited liability company whose share capital is wholly owned by Scottish Ministers as successors to the Secretary of State for Scotland following the establishment of the Scottish Parliament and the Scottish Executive. It has a financial responsibility set by its shareholder to break even, after receiving an annual revenue deficit grant to meet its operating loss. In return for the grant, CalMac provides a network of services approved by Scottish Ministers under an undertaking. This undertaking contains the conditions under which the grant is paid.

All of the services currently operated by CalMac within the undertaking require subsidy within the overall grant, as the normal operation of market forces would not ensure a sufficient service level to the communities all the year round. This is done to support approved services which, in the opinion of Scottish Ministers, are necessary to maintain the economic or social conditions in the Highlands and Islands. In 2002-3 the Grant was £18.9million; in 2003-4 it was £25.9m and in 2004-5 it is at the same level. The Ballycastle-Rathlin service is outwith the undertaking and meets the company’s required rate of return.

Caledonian MacBrayne reaffirmed in 2004 that the announcement of the award of the contract for Ballycastle-Rathlin did not affect the company’s position in relation to the Ballycastle to Campbeltown route. Caledonian MacBrayne will not be tendering for this route, for reasons already in the public domain.

CalMac currently owns and operates a fleet of 31 vessels providing passenger, vehicle and shipping services to the islands off the West Coast of Scotland and in the Clyde estuary, and retains two others on charter. There are currently 26 routes within the network. In 2004, just over five million passengers and over one million accompanied cars were carried on the company’s services.

The Rathlin service is, in line with the other services operated by Caledonian MacBrayne, a lifeline service, between Ballycastle and Rathlin Island, which is Northern Ireland’s only inhabited offshore island. It is located 6 miles from the coastal town of Ballycastle, off the northeast Antrim coast. There are approximately 80 residents on the island.

Up to 1996, access to Rathlin Island was provided by the Islanders themselves using converted fishing boats. However, that operation was unable to meet the increasing standards demanded of ferries and their operators by new legislation. In late 1996 the then Department of the Environment (NI) provided financial assistance under the Social Need (Northern Ireland) Order 1986 to establish a roll-on roll-off

Ferry service.

The current contract to operate Rathlin expires on 31 March, 2006. Under the terms of the contract, the Department for Regional Development pays an annual grant in support of operating costs, which is in effect a Public Service Obligation subsidy.

Caledonian MacBrayne currently services the route using MV Canna, which can carry up to six cars and 140 passengers in summer (27 in the winter).

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