What representations he has made to the EU Commission on the tendering of Caledonian MacBrayne Ferries.

The Government see no legal basis to challenge the Commission's view that tendering is appropriate in this case. Scottish Executive Ministers have devolved responsibility for these subsidised services and are pursuing the arrangements to tender.

Does my right hon. Friend agree that the proposed tendering makes no economic sense? Does he also agree that if tendering is to proceed, the contractual tendering documentation must be drafted in such a way that the existing work force will be protected and any new operator obliged to take on staff on their existing terms and conditions?

My hon. Friend will know that there has been a lot of discussion of the matter over many years. It is pretty clear that the law is that such services must be tendered, which the Scottish Executive accept. The tender documents and the terms and conditions are devolved matters, so they are entirely the responsibility of the Scottish Executive. I do not really want to start making decisions on matters that are properly theirs, not mine.

On a matter that is not devolved, I would like to hear the right hon. Gentleman's view of tax avoidance in the run-up to the tendering, with specific reference to CalMac and offshore crewing. Does that tax avoidance bother him in any way?

Both the Scottish Executive and Caledonian MacBrayne must act entirely in accordance with the law.