We will continue to work to secure support from Scottish Government to ensure financially and environmentally sustainable internal ferries services, so we can continue to provide links between the islands that are reliable and support economic and social wellbeing, and will continue to pursue fixed links, where they can be proven to be a viable alternative.
The ferries revenue funding requirement for the financial year 2023-24 was submitted to Transport Scotland during 2022. The total sum required from Scottish Government is £23.082m, compared to the 2022-23 amount received, which was £17.496m. This is an increased requirement of £5.593m and arises from rising fuel costs, increased costs of maintenance, increased salary costs, among others.
A seminar with elected members took place in 2022 to enable the council to explore the range of issues surrounding sustainable inter-island transport connectivity with regard to both ferries and fixed links. Work began on setting out a scope, programme and cost estimates to carry out a business case process to support decision making on the range of projects needed to maintain transport links between the islands.
[This work will also address the statement ‘We will make progress on alternative fuel sources for vessels by progressing, with Scottish Government, the internal ferries renewal project with a focus on reducing carbon emissions’. A scoping report on the inter-island connectivity programme will be prepared.]
In February 2023, the Scottish Government announced as part of its Scottish Budget announcement that the revenue gap of almost £6m to run Shetland’s inter-island ferries will be filled.
Commenting on the announcement during the Budget, Emma Macdonald, Leader of Shetland Islands Council, said:
“The importance of the inter-island ferry service to life in Shetland cannot be overestimated. The ferry service is the social and economic backbone of our islands. The ferries take commuters to work and essentials to community shops. The ferries take patients to hospital and children to school. They are a lifeline in the truest sense of the word, and the key to unlocking economic success not just for Shetland, but for all of Scotland.
“Our engagement with John Swinney and his team at the Scottish Government has been extremely open and productive. John understood our concerns, he understood the importance of the services, and he responded immediately.
“His announcement today will keep people on our boats, and keep our boats in the water.”
The average age of Shetland’s ferry fleet is almost 30 years old. Four of the vessels are approaching 40 years old. Shetland Islands Council is in discussions with the Scottish Government, the UK Government and others about the future of these routes, either via replacement vessels or tunnels.
The inter-island routes are of significant economic importance. They serve salmon farms and other aquaculture and fishing operations, they are the only route to the Saxavord Spaceport and they play a vital role in Shetland’s, and therefore Scotland’s, renewable energy future.
