Ferries can secure growth or seal decline of island economies.
Traffic growth has been modest over the last decade and actually fell on a number of routes in 1998. If we are to stimulate the expansion of island economies, at least in line with the national average, it would be desirable for ferry traffic to grow at a rate of around four per cent annually. This represents doubling traffic in 18 years and trebling traffic in 28 years, which either means more and bigger ships or a different approach. A key question is how this growth can best be accelerated, provided and funded. Public subsidies recognise the importance of shipping services to the economies of island communities, but curious anomalies exist.