Row over cut-price fares and ferry savings

Stewart Stevenson, the transport minister, announced the 6.5 million pilot for road equivalent tariff (RET), due to end next year, will now be extended until spring 2012.

The move has cut prices to the Outer Isles, Tiree and Coll by up to 50 per cent and was widely welcomed by islanders, businesses and the Western Isles' SNP MSP and MP.

But there has been a fierce backlash in the Northern Isles where the government is planning savings to the ferry service.

Orkney Islands Council yesterday joined the condemnation following criticism from Liberal Democrat MSPs for Orkney and Shetland.

Orkney MSP Liam McArthur said it was "completely unacceptable" to extend the RET scheme while putting forward proposals which could cut 1m from support for ferries to the Northern Isles. "They threaten us with a downgraded service or higher fares in order to save money. But at the same time they have been planning to extend the expensive electoral bribe to their marginal constituency of the Western Isles.

"Such duplicitous behaviour from the transport minister is completely unacceptable. The minister should do the decent thing and resign."

Orkney Islands Council also confirmed it is to review its response to the

proposed savings measures for Northern Isles ferry services.

Convener Stephen Hagan has written to First Minister Alex Salmond expressing his 'disappointment and dismay' at the RET decision, and to Mr Stevenson requesting an urgent meeting to discuss the council's concerns.

But Donald Manford, Western Isles Council's transport chairman, said it was good news for business, visitors and the Western Isles public.