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Existing reports and studies obtained by the owners of Castle Tioram into the monument’s structure, history and culture were considered by the Inquiry Reporter at the Public Local Inquiry held in 2001 into the owners' application for scheduled monument consent (SMC) to restore the Castle. In his report to scottish ministers recommending that SMC be refused, the reporter identified gaps in understanding in the Statement of Cultural Significance obtained by the owners. Historic Scotland is commissioning the preparation of a full Statement of the Cultural Significance of Castle which will address those gaps. This will inform consideration of any future applications for SMC.

The investigation concluded that the scheme was in some cases not being operated as intended. There was however no evidence to suggest that any claims were being made fraudulently.

Following the investigation we have reviewed the scheme and have concluded that it has not been demonstrably achieving its central objective of maintaining and improving sea transport services serving the Highlands and Islands. We have noted that the great majority of bulk freight transported by sea in the Highlands and Islands does not benefit from bulk freight TRS. Currently only three companies are eligible to claim TRS. Independent consultants commissionedby the Executive some time ago to evaluate the scheme reported that:

the overall contribution of TRS to economic development in the relevant areas has been very limited;

it has made only a limited contribution to sustaining bulk shipping capacity in the Highlands and Islands;

the absolute level of TRS is insignificant compared with the companies’ costs and turnover, and

any reduction in consumer prices (for bulk freight products) will have been slight and it is not clear that TRS support has fed through to reduced prices for the end consumers.

For all these reasons, we have decided that the bulk freight TRS scheme should remain in suspension. We have paid all outstanding claims to 31 March 2004 but have no plans, at present, to make further funding available under the scheme. The three companies that have been entitled to claim have been advised accordingly.

We remain very keen to encourage greater use of shipping for freight. In this regard we will be introducing later this year the new Waterborne Freight Grant Scheme to grant aid the operating costs of new shipping routes which remove lorries from roads. Details of the scheme are still being finalised.

No specific research has been carried out in relation to the costs involved for housing on brownfield land, although we appreciate that there can be particular costs depending on the circumstances. Funding mechanisms are in place to encourage the rehabilitation of vacant and derelict land.

In order to support this objective, the Executive has introduced a new system under which significant new spending proposals are reviewed through “Pre-Expenditure Assessments”. Pre-Expenditure Assessments provide an assessment of expected impacts and value for money, and cover:

the aims and objectives of the proposal;

the options for addressing these objectives;

the evidence base on the likely impacts and value for money of the proposal, including cost-benefit analyses where appropriate;

the financial impact of the proposal, management and procurement arrangements, and

the plans for monitoring and evaluation.

This procedure is currently being extended to cover day-to-day spending decisions, and complements existing good practice in project appraisal.

Discussions with Skye Bridge Limited have begun. Our aim is to end the discredited toll regime by the end of the year.

We have no current plans to hold a public inquiry or to make the relevant documents public. Decisions on such matters will be taken at a later date.