Islands Strategic Group and Islands Transport Forum minutes: October 2023

Attendees and apologies

• Mairi Gougeon, Cabinet Secretary for Rural Affairs, Land Reform and Islands 
• Fiona Hyslop, Minister for Transport 
• Kate Higgins, Special Advisor
• Councillor Duncan MacInnes, Depute Leader,  Comhairle nan Eilean Siar
• Malcolm Burr, Chief Executive, Comhairle nan Eilean Siar
• Councillor James Stockan, Council Leader, Orkney Islands Council
• Oliver Reid, Chief Executive, Orkney Islands Council
• Councillor Emma Macdonald, Council Leader, Shetland Islands Council
• Maggie Sandison, Chief Executive, Shetland Islands Council
• Councillor Alan Hill, Cabinet member for Communities and Islands, North Ayrshire Council
• Craig Hatton, Chief Executive, North Ayrshire Council  
• Councillor Raymond Bremner, Council Leader, Highland Council
• Derek Brown, Chief Executive, Highland Council
• Councillor Robin Currie, Council Leader, Policy Lead for Economy and Rural Growth, Argyll and Bute Council
• Pippa Milne, Chief Executive, Argyll and Bute Council
• Laura Cromarty, Service Manager Transportation. Orkney Islands Council
• Michael Craigie, Executive Manager – Transport Planning and lead officer for RTP, ZetTrans, Shetland Islands Council
• Moraig Lyall, Chair of Environment and Transport Committee and ZetTrans, Shetland Islands Council
• Colin Young, Senior Transportation Delivery Officer, Argyll and Bute Council

Scottish Government

• Anna Densham, Deputy Director, Land Reform, Rural and Islands Policy
• Erica Clarkson, Head of Islands Policy Lead
• Francesco Sindico, Carbon Neutral Islands Project Lead
• Coinneach Morrison, Islands Recovery and Policy Manager
• Lorraine Lowrie, Senior Island Communities Policy Advisor
• Lewis MacAskill, Senior Island Communities Policy Advisor
• Stuart Brown, Island Communities Policy Advisor
• Craig Dillon, Senior Migration Policy Officer
• Ann McKenzie, Unit Head, Tackling Child Poverty Policy Unit
• Douglas Armstrong, Fuel Poverty Strategy Team Leader
• Laurence Kenney, Head of Ferries Policy, Transport Scotland
• Terry Shevlin, Aviation Strategy and Sustainable Aviation Team Leader, Transport Scotland

Items and actions

Amendment made 5 December 2024 to add the minutes of the Islands Transport Forum which also took place on 5 October 2023. You can view these minutes in the archive.

The inclusion of the Islands Transport Forum as a separate agenda item was agreed at a meeting of the Islands Strategic Group on 9 March 2023. The minutes for this meeting can be found on the Islands Strategic Group Webpage.

Amendments made:

• minute title adjusted to incorporate Islands Transport Forum
• meeting Chairs updated
• islands Transport Forum minutes added at agenda item two

Welcome

The Cabinet Secretary for Rural Affairs and Islands, Ms Gougeon, welcomed all attendees to the meeting, and thanked them for their efforts to attend in person.

The minutes from the previous Islands Strategic Group meeting were approved. 

Islands transport forum  

The Cabinet Secretary for Rural Affairs and Islands, Ms Gougeon, passed the chair to Ms Hyslop, Minister for Transport.

The minutes from the previous Islands Transport Forum meeting were approved.

Ms Hyslop introduced the Transport item, explaining the focus of Ferries and Aviation, with discussion commencing with Aviation.

Aviation

Malcom Burr stressed that the Forum is kept at a strategic level, bringing together the various factors to address appropriately. He gave the example of the Stornoway and Benbecula ferry services, used by NHS staff, with their travel heavily subsidised. Could this use be justified if it does not contribute to a continuing service, which would likely cease to exist.

Ms Hyslop agreed that strategic level discussions were a wise perspective. The NHS point is important and falls under the fairer ferries review.

Councillor Stockan supported the strategic focus. He suggested that it may be better to fly passengers rather than have ferries, as private cars take up freight space. He stated it is important to be wary of carbon footprint and why it is important to consider whole journeys. He suggested that if planes could be decarbonised, and connections at either side of air travel were improved, then life on islands could also improve.

Ms Hyslop agreed that a whole journey approach was the best mindset. It is also important to consider freight and ports.

Councillor Stockan questioned why ferries are full of freight if there are cheaper options to transport via air. Storage facilities on islands could save a fortune long term.

Councillor Currie suggested a solution for Islay where a container ship on the Troon to Islay route has previously been raised.

Ms Hyslop noted an action point to explore how to collectively engage on ways to move goods in economically viable ways.

Malcolm Burr commented that there was an urgency to have clean aircraft transport.

Councillor Stockan raised the point that if air travel were to be subsidised, people would fly, and commented that ferries are chosen over flying due to costs.

Councillor Macdonald agreed that ferry travel was cheaper but also more reliable, with passengers more likely to reach their destinations.

Ms Hyslop included that the Fair Fares Review would cover all modes of transport.

Oliver Reid agreed with the reliability of ferries compared to planes. He stated that frequency was key, and a practical and reliable service is needed to support economic growth.

Moraig Lyall added that the optimum solution for each route should be looked at rather than individual modes of transport. She suggested that for some Shetland islands, fixed links could be an option, with a Yell/Unst tunnel for example. This would support the transportation of salmon farming harvests.

Ms Hyslop reassured the Forum that transport issues would be the collective lens of people, places, environment and technology.

Councillor Stockan stated that Kirkwall to Aberdeen is the highest cost per mile route in Europe. He added that if costs were right and services more reliable, then more flights would improve island life.

Ms Hyslop added that transport is a massive enabler for change and a collective narrative is required, without losing momentum for improvements already in action.

Ferries

Ms Hyslop introduced the Ferries agenda item. She stated that a long term plan for vessels and ports is important, with investment in port improvements.

Councillor Bremner described the Corran Ferry issue within the Highland Council area. He expressed the need to understand that communities need services to function to address population decline, and the adverse effects to places where fully functioning services are not in place.

Craig Hatton acknowledged his point was more operational however expressed concern for resilience over the winter, with the likelihood of increased cancellations.

Ms Hyslop also expressed concern over winter resilience, with a vulnerable time during the dry dock period. Advance planning is key and there will be direct communications with operators.

Craig Hatton added that the onus being put on Local Authorities to resolve contingencies when operators cancel services was not acceptable.

Councillor Stockan explained there was a significant concern during the removal and refit period, with no replacement vessel available for the Hamnavoe route. He added that on a strategic level the fares review must have a level playing field across the country.

Councillor Currie stated that action to resolve capacity issues was required immediately. He described his recent personal experience with no space on the Islay ferry 7 days in advance, and queuing from 1 p.m. to 8 p.m. one particular day in order to obtain travel. By addressing the block booking system, thousands of additional vehicles could ravel each season.

Ms Hyslop added that it was not a contract that was required to be run, it is a service.

Councillor Hill echoed the points made.

Moraig Lyall described the goal being sought is thriving island communities, with ferries forming one part of this. She believed that connectivity is a responsibility and reliability was detriment to this. She explained that Nordic countries have revolutionised connectivity with fixed link routes, and our island communities would benefit from similar.

Ms Hyslop welcomed partnership thinking and gave thanks to members for their constructive input. 

Child poverty

Cabinet Secretary Gougeon introduced the Child Poverty agenda item.

Maggie Sandison described that for Shetland and other islands, the cost of living was key to address child poverty, and that the Minimum Income Standard needed to be addressed.

Craig Hatton supported the cost of living point from a North Ayrshire perspective, describing this as a cost to experience life in a normal way for islanders.

Pippa Milne explained issues for consumers accessing smart meters preventing access to the best tariffs. There are regulatory issues that  could be tackled to address the cost of living, with this responsibility on private sector providers.

Kate Higgins commented that the issues raised are reserved and wondered if there were any collective cases to be made, to reach out to UK Government and Ofgem.

Cabinet Secretary Gougeon noted the action point requesting Local Authorities to join her in a collective approach to address of the issues.

Malcolm Burr stated that there has been no replacement for European funding, with the shortfall landing on hard-pressed council budgets. The Islands Forum could provide an opportunity to address this, as funding is essential to support vulnerable people.

Councillor Currie raised an issue with the availability of childcare, particularly for those with additional needs.

Councillor Macdonald agreed that childcare was a significant issue.

Councillor Stockan stated that childcare was also an urgent issue in Orkney. The issue needed to be addressed in the fringes away from main population areas in particular. He explained that the childcare issue had also been raised in COHI.

Lorraine Lowrie explained that an update on outcomes drafted at COHI are due. There is an awareness of the crossover of issues raised at ISG and COHI.

Cost of living

Cabinet Secretary Gougeon introduced the Cost of Living agenda item. She commented on the positive reception of the Islands Cost Crisis Emergency Fund and was keen to hear how the additional funding has been utilised.

Maggie Sandison explained that in Shetland that the funding had been used for schools, and work was ongoing on ways to remove the stigma of using additional help.

Malcolm Burr thanked Scottish Government for the early intervention and stated the funding was very welcome. The fund had been added to by CnES and remarked at how vital the support was.

James Stockan also passed on thanks. He explained that the funding had been allocated rather than through a bidding process which had been useful to save time. Plans are in place for the funds.

Councillor Currie commented that islands pay more for electricity, despite these areas being where the energy is produced, and where the highest levels of fuel poverty are.

Councillor Stockan added that energy is a reserved matter and the issues will be taken to the Islands Forum.

Maggie Sandison explained that Shetland are attempting to push Ofgem for a long term solution for pricing and tariffs, using energy in the areas it is produced.

Oliver Reid added that there is no market pressure in island communities therefore the companies are getting away with charging the process they do.

Councillor Stockan stated that there needs to be a collective voice to take to Ofgem, but unfortunately there is no such option for gas prices.

Maggie Sandison raised that there is an end to the fixed term of many mortgages and it remains to be seen what further impact this will have on households.

Migration/skills labour shortages

Cabinet Secretary Gougeon introduced the Migration agenda item.

Pippa Milne raised the issue of attracting staff to island areas. She is keen to see a focussed effort on fewer items that have the biggest impact. This could involve preventing the drain of people away by making better use of collective assets such as schools.

Lorraine Lowrie provided an update on the Addressing Depopulation Action Plan.

Derek Brown commented that officials had captured activity well but questioned if outcomes would be successful.

Councillor Stockan suggested there was a change in the way that houses are being used in islands. If additional people moved to islands, he questioned where they would be housed.

Craig Dillon stated there had been no update from Home Office as yet on the Rural Visa.

Kate Higgins reassured that Scottish Government was aware of housing issues. She gave the example of the registration of short-term lets being resulting in these progressing to long-term lets.

Malcolm Burr stated empty homes officers had brought more homes into availability in the CnES area.

Councillor Currie stated that staffing issues are a severe problem for hospitality venues. He asked if Local Authorities could assist Scottish Government in addressing this.

Cabinet Secretary Gougeon added that the Rural Visa Pilot Proposal has seen collaboration between Scottish Government and Local Authorities.

Councillor Hill stated that in relation to council tax, not all islands are the same. North Ayrshire has large areas of tenement style housing. On Cumbrae council tax changes for second homes could result in a flood of available housing. On Arran there is a lack of affordable housing, which is needed for both island residents and visitors. There is also a lot of tied housing on islands. He suggested that modular style housing could be developed, possibly constructed on islands, as cheaply as possible. This is another issue that must be raised at the Islands Forum.

Cabinet Secretary Gougeon suggested that the Minister for Housing could be attend the next ISG meeting.

Councillor Stockan stated than in Stromness for example, the population is half of what it was 150 years ago. There are more bedrooms in houses than are needed. He suggested an incentive provided to homeowners that would mean fewer new houses would need to be built.

Any other business

Cabinet Secretary Gougeon invited members to raise any other business. No other business was raised.