St Helena: Subsidies

Department for International Development written question – answered on 6th July 2018.

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Photo of Lord Jones of Cheltenham Lord Jones of Cheltenham Liberal Democrat

To ask Her Majesty's Government what benefits exist for the economy of St Helena from the withdrawal of the shipping subsidy and reductions in the utilities subsidy.

Photo of Lord Bates Lord Bates The Minister of State, Department for International Development

The shipping subsidy paid by the UK Government covered the operating losses incurred by the RMS St Helena until its decommissioning in February 2018. It was a long standing agreement between the UK and St Helena Governments that sea freight would not be subsidised following the introduction of air services. The St Helena Government has confirmed plans to increase, not decrease, the subsidy it provides to cover costs of delivering utilities to consumers.

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