PSO is the only way to protect
Benbecula’s air service
Most of us will know that the Scottish ferry network is subsidised by the government. What many of us may not know is that in order to subsidise a transport network, some rules need to be obeyed that ensure the government do not fall foul of European regulations regarding the use of state aid. Effectively, the government must be seen to be playing fair and not stifling competition.
Since devolution, the responsibility for Scottish transport issues has fallen to the Scottish government, although some issues remain under the remit of Westminster, particularly issues that must be agreed between Brussels and the United Kingdom, (since Brussels deals directly with UK Ministers and not with Scottish Ministers).
Crucially, one such issue is the implementation of PSOs. As Professor Kay points out, it is not John Swinney or any previous incumbent’s name that one will see on a PSO document (the Glasgow-Barra air service, for example, is a PSO) but rather Margaret Beckett’s or whichever UK Minister is in charge of transport.
What that means is, while the Scottish government may identify the need for a PSO on a given Scottish transport route (normally an air or sea route, as they would be considered ‘lifeline’ services), the PSO will only be granted by Westminster, and then only after negotiation with Brussels.
So why would the government see the need for a PSO? As alluded to above, the main such reason would be that the route is considered lifeline and, most importantly, that to provide the level of service that is in the public interest would be impossible for a commercial operator if they were running the route in their own commercial interest.
