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The Herald Scotland
7 hours ago
- Business
- The Herald Scotland
Did the government forget to 'island-proof' the ferry fund?
The compensation pot, which opened for applications on Tuesday, offers grants of between £3,000 and £35,000 to firms on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran. Mull, Iona, Coll, Tiree, Islay and others who've seen serious disruption get nothing. To qualify, the islands had to have suffered from over 15% ferry service cancellations across three seasons — far above the 7% CalMac network average. That's left businesses — and campaigners like Joe Reade from the Mull and Iona Ferry Committee — fuming. Although they don't reach the threshold set out by the government, he says his community is still experiencing a 22% cut in ferry capacity this summer. They've already lost around 7,000 passenger visits — a clear blow to a local economy reliant on tourism. But because these are classed as capacity cuts rather than cancellations, they're ignored by the fund's formula. As Reade puts it, it's 'astonishing and bemusing' that ministers have chosen such a narrow and 'arbitrary' way to measure hardship. It also, he believes, breaks the law. READ MORE FROM UNSPUN Passed with cross-party support, the Islands (Scotland) Act 2018 was meant to ensure that the specific needs of Scotland's island communities were not just recognised, but respected in law. It places a clear duty on public bodies — including Scottish ministers — to 'have regard to island communities' when exercising their functions. In other words: island-proof your policy. Part 3 of the Act says the government must carry out an Island Communities Impact Assessment (ICIA) when a policy is 'likely to have an effect on an island community which is significantly different from its effect on other communities (including other island communities).' The ferry support fund clearly triggers that requirement. It's a policy about islands, aimed specifically at businesses on islands, that offers money to some and excludes others. Reade says there's a wider issue here around the Islands Act. 'It is routinely ignored by governments at all levels, or just paid lip-service,' he tells me. Herald readers will be familiar with my colleague James McEnaney's reporting on the row over the new school on Mull. A petition for a Judicial Review has been lodged with the Court of Session in Edinburgh in an attempt to reverse Argyll and Bute Council's decision to build the school in Tobermory — a move that means kids from the south of Mull remain excluded from the only high school on their island. 'The ICIA the council were supposed to undertake was done far too late and without proper consultation,' Reade says. The Learning Estate Investment Programme (LEIP), the central government funding scheme paying for the school, has also not been assessed against the Act. Technically, that's because it pre-dates the law — although it was announced a year after the Act passed. 'Scottish Government certainly had a moral obligation to 'island-proof' the LEIP programme,' Reade argues. 'But they did not.' There's scant information about the IBRF. The first many island businesses heard about it was when journalists got in touch for comment on the Scottish Government's press release. The Islands Act was supposed to be ground-breaking and promised meaningful change — but for many islanders, that promise remains unfulfilled.


BBC News
2 days ago
- Business
- BBC News
Island businesses criticise ferry cancellation fund
Some island community leaders have criticised a new £4.4m Scottish government fund set up to support businesses affected by ferry Islands Business Resilience Fund (IBRF) will be available to eight of the 23 islands served by publicly-owned ferry operator Schmoller, of community company Stòras Uibhist on South Uist, said there was a lack of information on the funding, and she raised doubts it would go far businessman Joe Reade said his island was not on the approved list, but local businesses were suffering due to a reduced service. Islands Secretary Mairi Gougeon said the Scottish government was determined to do everything it could to support island communities. IBRF will be available to eligible business, including firms that rely on tourism or trade in perishable goods, operating on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Scottish government said the islands were chosen because they had more than 15% of ferry cancellations over the last three summer Ms Schmoller told BBC Radio's Good Morning Scotland programme: "We've had no direct information."The announcement was made yesterday, I gather, but we haven't actually seen any details beyond the fact it will be operated by Highlands and Islands Enterprise."She said a study Stòras Uibhist did last year suggested more than £1m was lost to South Uist's economy due to disrupted sailings over six weeks between Easter and Schmoller said she was not sure £4.4m would be enough to cover every eligible added: "There are other businesses that have lost out as well." Mr Reade said it was "bizarre" Mull was not on the list of said the island's ferry capacity had been reduced by 22% since March because the ferry, MV Isle of Mull, was out of Reade told Good Morning Scotland: "Every tourist related business on Mull is reporting a really bad season."Restaurants are not as full as they should be, tourist trips are not taking as many passengers, accommodation providers have got vacancies in the middle of the season, which is unprecedented."He added: "We can see to the end of June we've lost 7,000 passenger visits to the island."Mr Reade said Mull could be missing out because reduced service was not being used as a measure for IBRF said: "I am absolutely astonished and bemused that the government should use such a blunt way about deciding who gets assistance and who doesn't. "Everybody needs it." How will IBRF work? Highlands and Islands Enterprise (HIE) will manage IBRF on behalf of the Scottish government. Applications will be accepted from Wednesday until midday on 1 September with decisions and payments expected by 31 businesses include those that rely on tourism, and firms that manufacture or transport perishable goods, such as Scottish government said funding awards would be based on demand and the size of organisations that apply for said awards were expected to range from between £3,000 and £35, carried out analysis of information and statistics provided by Transport Scotland and CalMac relating to ferry Scottish government said the eight islands were chosen because each had more than 15% ferry disruption over the last three summer seasons. It said the average cancellations of ferry services across CalMac's network during that time had been about 7%. 'Challenging times' Islands Secretary Ms Gougeon said the Scottish government knew island communities faced "distinct" said: "People and businesses require ferry services running reliably and frequently to support their livelihoods."We worked with Highlands and Islands Enterprise to refine the eligibility criteria and identify how this money can make a real difference to the businesses who need it most."Ms Gougeon said reliable and regular ferry services were key to said: "We know that the current situation of delays and ongoing maintenance to some vessels has created real difficulties for some."We are determined to do everything we can to support islands, their local businesses and employers through these challenging times."


The Herald Scotland
3 days ago
- Business
- The Herald Scotland
New £4.4m ferry disruption fund opens for eight islands
🧭 What is the Islands Business Resilience Fund (IBRF)? A £4.4 million Scottish Government fund aimed at supporting island businesses hardest hit by west-coast ferry disruption. Run by Highlands and Islands Enterprise (HIE). Applications open July 2 and close midday September 1. Decisions and payments are expected by October 31. Grants range from £3,000 to £35,000 depending on business size and demand. ✅ Who's eligible? Businesses on these eight islands only: South Uist, North Uist, Eriskay, Benbecula, Berneray, Grimsay, Colonsay, and Arran. Must be in tourism-related sectors or the manufacture or transport of perishable goods (e.g. seafood). Islands were selected for having over 15% ferry service cancellations across three seasons — far above the 7% CalMac network average. 🚩 Why it's controversial Exclusion of other hard-hit islands The Mull & Iona Ferry Committee says Mull (and Iona), along with Coll, Tiree, Islay and others, have seen serious disruption — but are not included. Mull lost 22% capacity since March due to MV Isle of Mull being sidelined — though this isn't counted under the scheme's eligibility criteria. Questionable criteria Critics call the 'over 15% cancellations' rule arbitrary and exclusionary, saying it ignores capacity loss and ongoing maintenance issues. There's concern the fund doesn't align with the Islands (Scotland) Act, which aims to support all affected communities. Financial shortfall South Uist reports losses of £1 million over Easter–June 2024. Mull has lost around 7,000 passengers and 10% car traffic by June 2025 — figures campaigners argue outstrip the current £4.4m total. 🧑🎤 Voices from the islands 'Why exclude islands that are really suffering? It's not just bizarre and unfair on the face of it, it's actually, I think, contrary to the islands act, I don't think it's correct in law.'— Joe Reade, Chair of the Mull and Iona Ferry Committee. At least it's a gesture. It will benefit some people. It'll let them survive, because the hit has been really hard on people." —Mary Schmoller, member of the board of the South Uist community landowner, Stòras Uibhist 🛠️ What happens next? Applications open July 2, 2025, closing September 1, administered by HIE. Decisions and payouts expected by October 31. Campaigners are calling for: Wider eligibility that includes islands like Mull, Coll, Tiree, Islay. Revised criteria that account for capacity loss, not just cancellations. More detail on eligibility and payment formulas is expected soon.