Ferry operator Caledonian MacBrayne, which has operated the Ballycastle-Rathlin ferry service since 1996, today (Thursday, February 16) confirmed that the Company is extending its contract for the provision of ferry services to Rathlin Island, for another year, until the beginning of April 2007.

Speaking in Ballycastle, CalMac Chairman Dr Harold Mills said: "We were delighted to have our contract as the operator of this service extended for a further year and we look forward to developing our ongoing relationship with the communities of Rathlin and the mainland of Northern Ireland. The Company was very pleased that we came to a leasing arrangement for the new facilities at Ballycastle with Moyle District Council last year and everyone has benefited from that. Since we started operating the service we have seen a spell of considerable growth on the route. The growth is very welcome and reflects the additional resources we have devoted to marketing the route as a Company. We now look forward to continuing to work with the people on Rathlin Island itself, the local community and authorities in Ballycastle and our colleagues in the Department for Regional Development."

On behalf of the Department for Regional Development, Brian White, the Director of Ports and Public Transport, welcomed the extension of the contract for a further year and the continuation of this important lifeline for the people of Rathlin Island.

The Ballycastle-Rathlin route continues to benefit from the general marketing activities undertaken by CalMac and benefits specifically from a local marketing plan. Approximately 12,000 passengers per month are carried in July and August, the two peak summer months.

Dr Mills added: "Caledonian MacBrayne will continue to work with all the appropriate agencies to offer the best service possible to the island community while the future requirements of the route are being assessed. CalMac looks forward to receiving the draft specification for the ongoing requirements of the service and will take a view on the possibilities for operation of the route in due course, when the issues and levels of provision are clarified."

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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; or Anne McGivern, Department for Regional Development Press Office. Tel: 028 90540004

Issued: Thursday, February 16, 2006 10.00 a.m.

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 the current year the Deficit Grant is approximately £30 million. 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 at that time of the award of the contract for Ballycastle-Rathlin did not affect the company's position in relation to the proposed Ballycastle to Campbeltown route. Caledonian MacBrayne did not tender for this route when it was recently offered, for reasons already in the public domain. The Company does not have the tonnage required available to service the route.

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 2005, just over five million passengers and over one million accompanied cars were carried on the company's services, continuing a trend of growth across the network.

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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