16/04/2008

• Consultants’ advice confirms no legal barrier to public funding for service
• Capital funding would comply with EU procurement and State aid rules
• Transport group calls for “roadmap” to maintain momentum on project

Stagecoach today (16 April 2008) welcomed a new report that confirmed public sector funding support could help establish a permanent cross-Forth hovercraft service and comply with European rules.

The transport group said the new legal advice was “a positive step forward” and called for a “roadmap” to help maintain the momentum towards making the link a reality.

UK law firm Dundas and Wilson has prepared a 34-page report for the South East of Scotland Transport Partnership (SEStran) on the potential procurement options for both the hovercraft link and a separate catamaran service.

Stagecoach unveiled a detailed business plan in autumn 2007 outlining how a link could be established between Fife and Edinburgh using a 150-passenger craft with a crossing time of just 20 minutes.

The Group has offered to invest more than £10million to make the project a reality, with limited short-term public sector support of around £3.3million to bridge the gap in the first three years to reach the point where it became commercially viable.

Separately, SEStran is also considering the potential for a catamaran service between Burntisland and Granton.

The consultants’ report, to be considered at a SEStran meeting on Friday, confirms that the transport partnership could provide capital funding support to help set up a commercial hovercraft operation, provided State aid clearance was given by the European Commission.

A Stagecoach Group spokesman said: “This is a detailed and comprehensive report. It is a positive and welcome step forward and makes clear there is no legal barrier to public funding for a permanent cross-Forth hovercraft service.

“We have been very encouraged by SEStran’s support for both a hovercraft and catamaran service, both of which could provide a significant boost to transport links and the economy on both sides of the Forth.

“As the report makes clear, European Commission clearance on these issues can take time. That is why we need to maintain the momentum behind the hovercraft project to meet the aspirations of the communities in Fife and in Edinburgh.

“It is crucial we now have a roadmap from the Scottish Government on the hovercraft project and clarity on whether it is prepared to commit public funding to make a cross-Forth link a reality.”

Stagecoach announced in February that it had been forced to put research and development on the hovercraft project on hold until it received clarification over the future public sector role and investment, both of which are key to taking the project forward.

ENDS

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