Launch of £4.4m fund for island businesses affected by ongoing ferry disruption

A £4.4m support fund for island businesses affected by ongoing disruption to ferry services has been launched by the Scottish Government.

The Island Business Resilience Fund (IBRF) is expected to pay grants of up to £35,000 to eligible businesses on the islands of South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran.

Eligible sectors include those that rely on tourism and those engaged in the manufacture or movement of perishable goods, such as seafood.

The government said the size of the award will be based on demand and the size of businesses that apply, but that payments are expected to range between £3,000 and £35,000.

The fund, which is managed by Highlands and Islands Enterprise (HIE), opens for applications from July 2 until midday on September 1, with decisions and payments expected by October 31.

Islands Secretary Mairi Gougeon said: “We know that Scotland’s island communities face distinct challenges, not least in terms of their economic and social resilience.

“People and businesses require ferry services running reliably and frequently to support their livelihoods.

“We worked with HIE to refine the eligibility criteria and identify how this money can make a real difference to the businesses who need it most.

“Reliable and regular ferry services are key to this connectivity for people and businesses and 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.”

An ageing ferry fleet and delays in the delivery of new vessels have resulted in extensive disruption to ferry services on Scotland’s west coast over recent years.

The government said the IBRF is being targeted to businesses on the eight selected islands as these have seen more than 15% of services disrupted over the last three seasons.

This compares with an average of 7% across the CalMac ferry network as a whole.

Rachel Hunter, HIE’s director of enterprise and community support, said: “Island businesses and social enterprises make an important contribution to local economies and provide vital rural employment that helps sustain many communities.

“Those operating in tourism and production or movement of perishable foods are particularly vulnerable to disruption such as we’ve seen in recent years.

“This fund is about strengthening the resilience of those organisations operating in the sectors and islands most affected. Our focus will be assessing applications promptly so that funding can be awarded as soon as possible after the closing date.”

Commenting on the announcement the Mull and Iona Ferry Committee, which represents the islands’ ferry users, criticised the fact the fund is only open to businesses on eight islands.

The group said this meant only a “small proportion” of the islands affected by disruption were eligible for the scheme, with others being “excluded” from it.

A spokesperson for the group added: “The ferry shambles is about more than just the number of sailings cancelled – it is about the fundamental undermining of Hebridean business and society, by this never-ending crisis of capacity and confidence.

“The damage done to our tourism sector will last long after the ferries are fixed.”