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 cancellations.

The Islands Business Resilience Fund (IBRF) will be available to eight of the 23 islands served by publicly-owned ferry operator CalMac.

Mary 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 enough.

Mull 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 Arran.

The Scottish government said the islands were chosen because they had more than 15% of ferry cancellations over the last three summer seasons.

But 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 June.

Ms Schmoller said she was not sure £4.4m would be enough to cover every eligible business.

She added: "There are other businesses that have lost out as well."

Mr Reade said it was "bizarre" Mull was not on the list of islands.

He said the island's ferry capacity had been reduced by 22% since March because the ferry, MV Isle of Mull, was out of service.

Mr 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 support.

He 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."

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 October.

Eligible businesses include those that rely on tourism, and firms that manufacture or transport perishable goods, such as seafood.

The Scottish government said funding awards would be based on demand and the size of organisations that apply for support.

It said awards were expected to range from between £3,000 and £35,000.

HIE carried out analysis of information and statistics provided by Transport Scotland and CalMac relating to ferry disruption.

The 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%.

Islands Secretary Ms Gougeon said the Scottish government knew island communities faced "distinct" challenges.

She 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 islanders.

She 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."