Pic: CalMac ferry disruption has affected local businesses
Businesses across Scotland’s islands are being offered grants of up to £35,000 after prolonged ferry disruption hit visitor numbers, supply chains and operating costs.
The Scottish Government has committed £3 million to the first phase of its Islands Resilience Fund, targeted at businesses and organisations in communities which have suffered sustained disruption to lifeline ferry services.
A new government assessment published today (Monday 31 August) lays bare the continuing economic consequences of problems across the network, including vessel shortages, breakdowns, repairs, reduced capacity and delays to replacement ferries.
It warns that while reliability has improved on some routes, disruption continues to affect business operations, visitor confidence, supply chains, the availability of workers and access to essential services.
The fund is available to eligible businesses, social enterprises and community organisations across islands including Arran, Barra, Benbecula, Berneray, Coll, Colonsay, Harris, Iona, Mull, North Uist, South Uist, Tiree and Vatersay.
A number of smaller islands including Canna, Eigg, Gometra, Grimsay, Muck, Rum, Scalpay and Ulva are also included.
New applicants can receive grants ranging from around £3,000 to £35,000 depending on factors including the size and turnover of their organisation.
The scheme covers businesses in sectors including hotels and accommodation, restaurants and cafes, visitor attractions, shops, perishable goods and haulage.
Eligibility has also been broadened following criticism of previous support arrangements.
The government said changes were designed to recognise the reality of island economies, where people can have several sources of income, while eligibility has been clarified for fish-catching and aquaculture businesses and extended to hauliers and smaller volunteer-led organisations.
The scale of the economic impact is illustrated by an evaluation of the previous Islands Business Resilience Fund.
That £4.4m scheme provided support to 444 businesses across 19 islands affected by ferry disruption.
The evaluation estimated that the intervention helped safeguard around 666 jobs and £5.9m in turnover. Some 78% of businesses surveyed said the support had improved their resilience, while 62% reported that it helped protect jobs and turnover.
The assessment acknowledges that many of the difficulties facing Scotland’s islands are longer-term structural problems which cannot be resolved through grants alone.
These include transport connectivity, recruitment and retention of workers, supply-chain resilience and the capacity of island communities.
The Scottish Government also acknowledges that the £3m scheme itself cannot address the underlying causes of ferry disruption.
Its assessment states that island representatives consistently stressed that reliable transport infrastructure remains fundamental to their long-term resilience.
The government said evidence showed some islands had experienced sustained cancellations over several years, while others had been affected by capacity restrictions, timetable reductions and other operational disruption.
Harris and Scalpay have been added to the areas experiencing worsening disruption following technical cancellations affecting the Uig-Tarbert/Lochmaddy and Berneray-Leverburgh routes over the past 15 months.
The fund forms the first phase of a wider £10m Islands Resilience Fund announced by First Minister John Swinney.
When the initial £3m package was announced earlier in August, Mr Swinney said island businesses were too often being held back by circumstances outside their control.
Applications are open until midday on 28 September, with successful applicants expected to receive payments by the end of December.