CONCERNS remain over the support given to Scottish island business in the wake of widespread travel disruption despite a flagship funding package.
Members of Comhairle nan Eilean Siar (the council authority for the Western Isles) have written to the Scottish Government and the publicly-funded business development firm Highlands and Islands Enterprise (HIE) with concerns that some businesses will miss out on key funding due to narrow eligibility rules.
It comes after a £3 million support package was announced to support island-based communities across Scotland which have been impacted by ferry and flight disruption.
The payments will be administered by HIE following an application round, opening on Monday, August 17 until September 28. It forms part of the wider £10m Islands Resilience Fund which will be rolled out in phases each year until the next election in 2031.
However, councillors have warned that businesses are being left with less money than was offered last year in a separate support package, which saw a £4.4m funding round announced.
Speaking on the opening of the latest round of funding, Cllr Uisdean Robertson said: “It is welcome that funding is being delivered to address the significant losses that island businesses have sustained because of ferry service disruption.
"I encourage all eligible businesses in Harris, Uist and Barra to submit applications to the Islands Business Resilience Fund when it opens on 17 August.”
However, in the letter Robertson co-wrote with council leader Paul Steele Leader, the pair ask Holyrood to increase the funding support while also making the fund open to a broader range of small businesses while also urging the Government to consider support to compensate businesses for the "reputational damage" caused by travel disruption.
They also call on the Scottish Government to make plans to facilitate more reliable island transport and urged the government to release the full £10m funding package this year, rather than spreading it out over the next five.
The creation of the £10m support fund was one of the SNP's key campaign pledges ahead of the May elections, with John Swinney saying if his party wins it would have one created in its first 100 days. The £3m phase was announced last week.
"Sustained ferry service disruption has caused significant financial losses to businesses and organisations across all sectors in the islands, they said.
"While the award of funding is welcome there remain some key questions that must be answered. This funding will no doubt deliver some much-needed support to some impacted businesses, but the level of funding allocated for this year, spread across all impacted islands, is simply not enough to compensate for the level of disruption and significant losses that businesses have experienced.
"This funding also excludes heavily impacted areas such as the construction sector and does nothing to address the reputational damage experienced by the local tourism sector.
“It is important that the focus of Government remains on achieving long-term solutions as well as establishing the foundations for longer-term investment," they added.
"The only way to ensure that the island economy is protected from continued financial losses is to provide a ferry fleet that is fit for purpose and make timetable decisions that prioritise the needs of island communities.
"Island businesses and their customers need a ferry service that they can rely upon. The fact that £7 million of this fund has been withheld tells island businesses that the Government expect further disruption.
"The mistakes of the past cannot be repeated, and we must see real progress towards the delivery of adequate transport links.”
When announcing the plans last week, the First Minister said: "The £10 million Islands Resilience Fund was one of our commitments for the first 100 days of government.
"This fund will support businesses to cope with challenging circumstances, helping them to thrive and ensuring that Scotland’s islands remain attractive places to set up businesses and livelihoods.
“Crucially, this phase of investment will ensure support can be put in place immediately while we establish the foundations for longer-term investment over the course of this Parliament."
