Brian Wilson: "Hurdles to overcome"

The UK Government wants to subsidise the service to Ballycastle, which played a vital role in Kintyre's struggling economy

But first it will need to secure permission from the European Commission.

Scotland Office Minister Brian Wilson, who chaired the meeting, said although there were many hurdles still to jump he was convinced restoration was the right step forward.

"The consultants' report will allow us to establish a socio-economic case that will provide the justification to the European Commission for the UK Government to declare a public service order on the route.

"If the EC agrees that an order is appropriate this would allow for subsidy to be paid."

Government pledge

Operator Sea Containers pulled out of the route in February because it said the service was not economically viable.

Earlier this month a consortium of local businesses and tourism organisations launched their bid to re-establish the route.

So far campaigners' efforts to secure the "lifeline" subsidy have failed - but the government says it will do everything it can to help.

It must convince Brussels that it is keeping a vital passenger service alive and not just propping up a venture that is losing money.

The ferry link closed in February

The service between Campbeltown and Ballycastle was launched in June 1997 with Sea Containers setting up the Argyll & Antrim Steam Packet company, known as the AA Line, to run it.

It received �8m from public agencies and the MV Claymore was refitted for the service.

It was hoped the twice-daily sailings would create more than 200 jobs and raise �7m for tourism across Scotland as well as giving a boost to the Kintyre economy.

The Liberal Democrat MP for Argyll and Bute, Ray Michie, said: "There is no doubt that when the service was launched three years ago it was a tremendous boost to the area.

"It really increased confidence and morale for both businesses and the people, but that has rather dwindled since the service closed."

In February, the AA Line - reported to be losing �500,000 a year on the route - confirmed it was unable to continue.

A group of Kintyre business people, trading under the name of Kintyre Ferries, then launched the campaign to have the ferry route re-established.

The group has been negotiating to buy the MV Claymore and hopes that twice-daily sailings could resume next year.