Islands Strategic Group and Islands Transport Forum minutes: September 2024

Attendees and apologies

• Mairi Gougeon, Cabinet Secretary for Rural Affairs, Land Reform and Islands 
• Fiona Hyslop, Cabinet Secretary for Transport
• Jim Fairlie, Minister for Agriculture and Connectivity 
• Paul McLennan, Minister for Housing
• Councillor Jim Lynch, Council Leader, Argyll and Bute Council
• Pippa Milne, Chief Executive, Argyll and Bute Council
• Councillor Paul Steele, Council Leader, Comhairle nan Eilean Siar
• Malcolm Burr, Chief Executive, Comhairle nan Eilean Siar
• Councillor Raymond Bremner, Council Leader, Highland Council
• Derek Brown, Chief Executive, Highland Council
• Councillor Allan Hill, Cabinet member for Communities and Islands, North Ayrshire Council
• Claire Fitzsimmons, Senior Manager – Regeneration, North Ayrshire Council
• Emma McMullen, Senior Manager – Economic Policy, North Ayrshire Council
• Councillor Heather Woodbridge, Council Leader, Orkney Islands Council 
• Oliver Reid, Chief Executive, Orkney Islands Council
• Councillor Emma, MacDonald, Council Leader, Shetland Islands Council
• Councillor Moraig Lyall, Chair of Environment and Transport, Shetland Islands Council
• Maggie Sandison, Chief Executive, Shetland Islands Council
• Michael Craigie, Executive Manager – Transport Planning and ZetTrans Lead Officer, Shetland Islands Council

Scottish Government

• Anna Densham, Deputy Director, Land Reform, Rural and Islands Policy
• Erica Clarkson, Islands Policy Lead 
• Megan McWilliams, Senior Islands Policy Advisor
• Peter Brearley, Senior Islands Policy Advisor
• Stuart Brown, Island Communities Policy Advisor
• Laurence Kenney, Head of Ferries Policy, Transport Scotland
• Gordon MacLeod, CHFS3 (Clyde and Hebrides Ferry Service) Head of Contract Development, Transport Scotland
• Lisa Bullen, Planning Team Leader
• Mike Andrews, Population Team Leader
• Aileen Rore, Senior Crofting Policy Adviser
• Philip Raines, Place Director for Shetland and Deputy Director for Domestic Climate Change
• Donna MacKinnon, Place Director for Highland and Deputy Director, European Relations
• David Fleetwood, Place Director for Orkney and Head of First Ministers Policy and Delivery Unit

Items and actions

Note: The minutes of the previous Islands Strategic Group on 5 October 2023 were amended on 5 December 2024 to incorporate the minutes of the Islands Transport Forum as a full agenda item. The minutes for the meeting of 5 October 2023 can be found on the Islands Strategic Group webpage.

Welcome

Cabinet Secretary Gougeon welcomed all attendees, and especially those members who were attending for the first time.

The minutes from the previous Islands Strategic Group meeting, held on 5 October 2023, were approved.  

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

Islands transport forum 

The minutes from the previous Islands Transport Forum meeting were approved

Clyde and hebrides ferry service 3

Cabinet Secretary Hyslop welcomed members to the Islands Transport Forum and introduced the CHFS3 agenda item. She explained good progress had been made in relation to due diligence checks for the award. To ensure continuity of delivery, an extension of up to 12 months to the current contract has been agreed. Engagement with stakeholders is continuing to drive further improvements around how the service is delivered.

Malcolm Burr asked whether the Ferries Community Board, which had been a welcome addition to the previous contract, will continue under the new contract.

Cabinet Secretary Hyslop said that input from the Board was invaluable and that a number of workshops had already been carried out, including to discuss how the Board can continue to operate under the new contract.

Councillor Steele enquired about the role of the six area managers. He also sought more information on the use of performance statistics and the process guiding the appointment of Board members.

Cabinet Secretary Hyslop explained that the recruitment of area managers was underway and stressed the importance of decentralised decision making to ensure solutions are reflective (and respond to the specific needs) of each community. It is crucial to build trust and confidence in the service, which in the main works well however where there is disruption this can have substantial impacts on communities. Performance indicators will be reviewed, with renewed emphasis on delivering a public service and not just a contract. 

Islands connectivity plan

Minister Fairlie provided an update on the Islands Connectivity Plan, thanking local authorities for contributing to its development. The public consultation received 197 responses and an initial analysis report was published in August 2024. There had been good levels of support for the draft proposals set out in the Plan, however some issues require further consideration as highlighted in the papers provided ahead of the Forum.

Malcolm Burr stated that the high levels of support for the draft Plan were encouraging but highlighted island connectivity is broader and more complex than ferries alone. He made the example of aviation and fixed links.

Minister Fairlie reassured the group that the Scottish Government takes a holistic approach to island connectivity and is mindful of the importance of each of its components.

Cabinet Secretary Hyslop added that onward travel was also an essential factor, including in relation to bus and rail provision.

Pippa Milne commented that transport integration was an issue raised across Argyll and Bute. Access to travel advice was another issue, with sometimes different information provided between local communications and Transport Scotland. Another linked point related health services and the NHS being the biggest users of council funded flights. She also sought an update on the Port Ellen improvement works.

Cabinet Secretary Hyslop said she is working closely with Cabinet Secretary Gray to address issues concerning transport and health service provision. 

Councillor Lyall explained that Loganair have developed proposals for aircraft that are cost effective and of an ideal size for island traffic levels. In addition, Shetland is carrying out detailed assessments in relation to fixed links and especially tunnels. She enquired about funding allocations for the new Northern Islands freighters following the project update provided at the Shetland External Transport Forum.

Cabinet Secretary Hyslop said the Scottish Government remains committed to working with Shetland Islands Council but underlined ongoing financial pressures.

Minister Fairlie indicated he was pleased to see sustainable aircraft projects developing at pace and would remain in touch with Loganair to find out more about next steps. 

Orkney and shetland ferry replacement task forces 

There was a discussion about the importance of ensuring close partnership work between local authorities, Scottish Government and UK Government in relation to inter-island ferry replacement plans. 

Cabinet Secretary Hyslop explained that while the replacements of council-owned ferries is primarily a local authority responsibility, the Scottish Government remains committed to exploring opportunities to provide support.

Small vessel replacement programme

Cabinet Secretary Hyslop introduced the Small Vessel Replacement Programme agenda item, explaining that procurement is being progressed for seven new electric ferries to support the network and provide resilience. 

Malcolm Burr requested that an imaginative approach be taken to cascades from Phase 1, including consideration of rearrangement of existing vessels and port work, to reflect the pressures and needs of particular routes.

Cabinet Secretary Hyslop responded that the cascade aspect was very much part of the process and Transport Scotland would provide an update as work continues

Any other business

Cabinet Secretary Hyslop emphasised the importance of the Forum as an opportunity for strategic discussions and highlighted a number of areas that could feature in future meeting agendas. These include integration and information, health and transport, and fixed links.

No other business was raised.

Population

Cabinet Secretary Gougeon introduced the Population agenda item. She acknowledged the close partnership work between Scottish Government and local authorities.

Mike Andrews described the broad range of initiatives that had been delivered since the publication of the Addressing Depopulation Action Plan. He provided an overview of the actions taken across island local authority areas during the first phase of the implementation of the Addressing Depopulation Action Plan. This work will continue to be built upon, particularly with links to the new National Islands Plan.

Erica Clarkson explained that a public consultation had been carried out in the second half of 2023 to inform a review of the National Islands Plan. A majority of respondents had been supportive of a more agile document, featuring fewer strategic objectives and commitments compared to the current Plan, published in 2019. Depopulation did however emerge once again as a key issue and the new National Islands Plan will seek to address that feedback. Islands Team and Population officials are working in close conjunction to identify avenues for the new National Islands Plan to drive further progress – in so far as islands are concerned – on the actions set out in the Addressing Depopulation Action Plan. She suggested that, subject to the group’s agreement, a deep dive into the development of the new National Islands Plan could take place at the next meeting of the Islands Strategic Group.

Councillor Steele commented that poverty would be a useful inclusion in the plan, particularly with consideration to the Scottish Index of Multiple Deprivation (SIMD) and its relevance to islands. He also noted that a long term commitment to the Islands Cost Crisis Emergency Fund (ICCEF) would be beneficial as the fund has been warmly welcomed by communities.

Cabinet Secretary Gougeon welcomed the positive feedback on the ICCEF but explained that a decision on its continuation will be made once budget allocations become clearer.

Pippa Milne noted that discussions with previous Ministers promised regular updates in relation to the Ministerial Population Taskforce. With regards to the ICCEF, she added that multi-year funding allocations would give Councils greater certainty and support longer-term planning. This is particularly relevant for housing investments, which remain a major issue. Greater building flexibility is required for short-term accommodation for workers.

Cabinet Secretary Gougeon acknowledged the request for more regular updates.

Councillor Woodbridge spoke about the challenge of dealing with an ageing population in Orkney and her desire to work more closely with Scottish Government to identify tangible actions that can aid population attraction and retention. 

Councillor Bremner described the heavy rate of depopulation in the Highland Council area. He added that housing is one of the most pressing issues and the Council had recently issued a Housing Challenge Paper. Connectivity and childcare challenges are also linked to depopulation and he highlighted the importance of a “whole system approach” to tackling these issues. He added that multi-year funding allocations are required to sustain ongoing work, including in the form of funding approaches tailored to each local authority’s needs.

Councillor MacDonald agreed that there are clear links between depopulation and connectivity. In Shetland, feasibility assessments are being carried out in relation to fixed links, exploring potential impacts and benefits across a broad set of issues and not just transport. She added that the new National Islands Plan must acknowledge the additional costs of living on an island. She asked that consideration is given to refreshing the evidence base pertaining the Minimum Income Standard.

Maggie Sandison concurred with Councillor MacDonald’s comments. 

Cabinet Secretary Gougeon thanked members for their input and introduced the Housing agenda item, handing over to Paul McLennan, Minister for Housing.

Housing

Minister McLennan provided an overview of the actions that the Scottish Government is taking to address housing challenges, acknowledging close interlinkages with policy interventions delivered in other areas,  for instance on skills planning and population retention. He explained that bringing empty homes back into occupation was one of the key areas being explored. 

Councillor Bremner said that, while many challenges are shared across island local authorities, it is important to consider local variations and circumstances. He welcomed strong and robust conversations around housing. He noted that The Highland Council have launched a Social Value Charter  to set out community benefits expectations from developers who wish to invest in the Council area, including in relation to the creation of legacy housing to alleviate current pressures. 

Minister McLennan added that developers have an important role to play in ensuring their projects result in tangible community benefits. There is a wider social value in broadening economic development.

Councillor Steele highlighted the wide disparity in building costs within his Council’s area, with a home in Barra costing twice as much to build than one in Stornoway. He added that the availability of land was also an issue, for instance in terms of constraints in removing areas from crofting tenure. Other issues included accommodation capacity, with competing demands across sectors particularly in relation to renewable energy developments and tourism.

Minister McLennan acknowledged supply and demand issues for housing, coupled with the availability of contractors to carry out required work. He suggested the Scottish Government could facilitate discussions between Local Authorities and Scottish and Southern Energy Network (SSEN) to help address these issues.

Councillor Lynch commented that, being new to the Group, the opportunity to discuss specific issues is welcome.

Pippa Milne added there were similar concerns in Argyll and Bute, with SSEN related issues being among the most urgent. Planned temporary housing is potentially a missed opportunity for permanent builds.

Minister McLennan said he was happy to look at proposals and the flexibility of unit prices.

Cabinet Secretary Gougeon thanked Mr McLennan and welcomed Jim Fairlie, Minister for Agriculture and Connectivity.

Crofting

Minister Fairlie introduced the crofting agenda item. He explained that the Croft House Grant Scheme included provisions for upgrading the energy efficiency of existing housing. This would allow crofters to stay in the locality of their croft land.

Malcolm Burr underlined the importance of carrying out robust Island Communities Impact Assessments in relation to policies and initiatives affecting crofting areas. 

Minister Fairlie agreed that engagement with communities is important and he was looking forward to meting local authorities in person.

Future meetings

Cabinet Secretary Gougeon tabled a proposal for the Islands Strategic Group to meet twice yearly, including an option for an in-person meeting. This would work around other island themed fora such as the Convention of Highlands and Islands (COHI) or Convention of Scottish Local Authorities (COSLA) meetings for efficiency.

Councillor MacDonald agreed with the value of meeting in person and working around other sessions.

Cabinet Secretary Gougeon confirmed members were in agreement and that the proposal would be taken forward.

Any other business

No other business was raised.