The Scottish Parliament introduced the RET tariff on selected Calmac ferry routes a few years back, on a trial basis, and is now rolling it out generally, although with a couple of exceptions. The aim of RET is to reduce ferry fares, by subsidy, down to the equivalent cost of travelling the same distance by road.
My understanding of the RET is that cars are charged at £5 per journey plus 60p/mile with passengers each being charged an additional £2 per journey plus 10p/mile - this results in a charge for 2 people in a car of £9 per journey plus 80p/mile.
HMRC uses figures of 45p/mile for the first 10,000 miles/year plus 25p/mile thereafter - using 230 as the typical number of working days in the year, the HMRC rates are equivalent to £8.70 per day plus 25p for all miles thereafter.
Whilst the HMRC's £8.70/day is comparable with RET's £9/journey, the RET rate/mile is out of all proportion to HMRC's rate/mile and equally out of proportion to the actual cost of running a car.
In my book, the RET mileage rate is over 3 times the actual cost of running a car and still heavily penalises both locals and visitors and gives no encouragement to visit the islands for their economic benefit.
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