National Islands Plan: annual report 2021

Sustainable Economic Development

Strategic Objective 2 – To improve and promote sustainable economic development

We committed to identify key actions to drive inclusive and sustainable economic growth on islands, such as community-run businesses, e-commerce and digitally enabled island-based businesses.

Work is ongoing in relation to this commitment.

Digital technologies are crucial for our island businesses and economy and continue to transform the way we do business across all sectors and regions. We have committed £100 million over the life of this parliament to increase the digital capacity and capability of our businesses across Scotland. This includes our DigitalBoost Programme, which is our national business digital engagement programme offering digital support to SMEs including workshops, 1-2-1 advice, health checks, online guides and tutorials.

In 2020/21, HIE invested £2.5 million in 206 digital enablement projects. Over 89 of the businesses, social enterprises and voluntary organisations supported were in island communities, where we made an investment of £925k. Useful case studies are available on our website – for Ortak (Orkney) and An Lanntair (Lewis).

Additionally, HIE can provide specialist digital advice (up to 3-days), events and grants to organisations across the region through our area teams. HIE also collaborated with the Scottish Funding Council, The Scottish Government and Scottish Enterprise to invest over £2 million in national Innovation Centre hubs (The Data Lab, CENSIS, Construction Scotland Innovation Centre and IBioIC) which provide digital innovation support, MSc and PhD student placements and funding to organisations across the region.

We committed to explore how best to ensure the needs of islands are met within emerging regional economic partnerships including the Convention of the Highlands and Islands (CoHI).

Work is ongoing in relation to this commitment.

The Highlands and Islands Regional Economic Partnership (REP) has been established, meeting for the first time in December 2021. Membership includes the six local authorities with island populations, together with Moray Council, HIE, UHI, and other public bodies. Business and third sector representation will be drawn from the mainland and islands. The REP will provide a regional voice and enable collaboration across key regional challenges and opportunities such as economic recovery and transformation, net zero, repopulation, infrastructure and transport, each of which have specific island perspectives. The work of the REP will align with and feed into that of The Convention of the Highlands and Islands (CoHI).

COHI meets biannually, in spring and autumn, and brings together the Highlands and Islands Local Authorities, public bodies and institutions with responsibility for, or interests in, the economic and social development of the Highlands and Islands. CoHI aims to strengthen alignment between the Scottish Government and member organisations to increase sustainable economic growth and its processes are under constant review and evolution. Conventions normally alternate between mainland and island settings however in 2021, the Deputy First Minister and Cabinet Secretary for COVID Recovery hosted the meetings online and discussion themes included: Workforce and Skills, Population, Housing, Gaelic and Crofting.

Additionally, work continues on the Talent Attraction and Retention programme to support business to attract people with the skills required; the Student Retention programme to support students to stay, live, and work in Scotland post-qualifying; and the Skills Recognition Scotland project to help migrants already living in Scotland secure the right level of employment by profiling their skills gained outwith the UK and increasing links to employers with vacancies. This is in undertaken in collaboration with the Population and Migration Unit and various other Scottish Government teams, Skills Development Scotland and enterprise agencies.

We committed to tailor business and community support for island communities to ensure products and services are fit for purpose, accessible and effective. This will include exploring new and innovative models and working with national providers to consider how programmes can better address needs of island communities and businesses.

Work is ongoing in relation to this commitment.

Our £2,586,000 investment through the Island Communities Fund (ICF) was delivered as one strand of the 2021/22 Islands Programme, providing capital investment for community-led projects that align with community wealth building approaches and support employment, community resilience and contribute to Scotland's just transition to net zero and climate resilient living on islands.

Supporting island businesses and community groups, the ICF built on the success and our learning from the Islands Green Recovery Programme (2020/21), and provided grants of up to £150,000 for projects focused on developing sustainable economic activities on islands, while also supporting the delivery of the National Islands Plan.

Additionally, Highlands and Islands Enterprise (HIE) delivers economic and community development for the region through eight area-based teams which enables our response to meet local needs and opportunities using extensive local knowledge, partnerships and a customer-focused approach. Intervention rates and eligibility criteria for programmes are often flexed to increase support to islands. One example where island areas have specifically been targeted is the Graduate Placement Programme, in recognition of distinct needs in particular islands and as part of our response to population challenges.

We committed to work in partnership to support strategic projects which deliver sustainable economic growth in the islands, e.g. Orkney Research and Innovation Campus and Stornoway port developments.

Work is ongoing in relation to this commitment.

The Islands Growth Deal has three main themes: leading the way to a low carbon future; supporting growth and future industries; and building thriving sustainable communities. Eighteen projects are included in the Islands Growth Deal Heads of Terms and these include the Islands Centre for Net Zero, Dales Voe Deep Water Port and Outer Hebrides Energy Hub, which have a low carbon theme running through them, although the low carbon theme will run through all Islands Deal projects to some extent.

We committed to drive the many socio-economic opportunities arising from the 2019 Science and Innovation Audit report Maximising Opportunities for the Marine Economy in the Highlands and Islands as well as enhance those arising from Growth Deals.

Work is ongoing in relation to this commitment.

Our Fisheries Management Strategy commits us to responsible and sustainable sea fisheries management and is underpinned by a 12 point action plan which is being delivered over the next ten years. Key actions include increasing the obligation on fishers to land into Scotland, with associated benefits to onshore processing and ancillary services; and improving the resilience of the fishing industry, working with stakeholders to strengthen links to local and global markets, and supporting diversification.

The Strategy puts a strong emphasis on local management of fisheries, with investment in our network of local Regional Inshore Fisheries Groups. Part of this is through the Inshore Fisheries Pilots initiative where the Inshore Fisheries Groups, working with Marine Scotland, have developed two projects – a holistic approach to optimising fishing gear use in the Outer Hebrides, and in Mull a trial separating mobile and static gear. Both have been met with positivity by stakeholders and anecdotal evidence suggests a positive effect. We are using learning form these pilots to help inform inshore fisheries management options nationally, and explore opportunities to strengthen outputs across all of our coastal communities.

Our approach to securing fishing opportunities through international negotiations seeks to maximise the benefits of fishing to our local communities. This includes many of our fishing communities based in the highlands and islands, with significant benefits flowing to (for example) Shetland as a result. Quota secured at an international level helps to maintain and grow local businesses, providing employment opportunities both offshore and onshore as a result.

We have also initiated a number of projects to support new entrants into the fishing sector and we have so far awarded 23 new entrants totalling £1,740,470.00 of Marine Fund Scotland to help fishers purchase their own vessel. Out of the 23 awarded Young fishers four came from Highlands and Islands region. The grant awarded for these totalled �239,115.00.

Several projects are also being developed as part of both the Islands Growth Deal and the Argyll and Bute Growth Deal that have a strong focus on the Marine Economy. These include Scapa Flow Future Fuels Hub, Outer Hebrides Food and Drink and Dales Voe Ultra Deep Water Port projects in the Islands Deal, and UHI/Argyll Collage Marine Industry Training Centre, MERL Machrihanish Innovation Campus, SAMS International Seaweed and Shellfish Centre and Marine Tourism projects in the Argyll and Bute Deal. Both the Scottish and UK Governments are working closely with partners in both Deals to develop these projects to the benefit of coastal communities.

We committed to display leadership in the public sector by demonstrating that jobs and careers can be successful on islands.

Work is ongoing in relation to this commitment.

Plans to form a Workforce Dispersal working group are being discussed, initially looking at Scottish Government workforce and how jobs can be undertaken from across Scotland. This work has been supported through engagement with the CoHI Population Working Group, which identified five key thematic focuses central to the challenge of ensuring sustainable populations in communities. These included the availability and suitability of housing, the availability of jobs across the region (including public sector), critical infrastructure (including transport and broadband), the provision of and accessibility to public services, and attracting and retaining young people to the region.

At the October 2021 CoHI, the working group presented a paper setting out policy considerations and suggested locally-led population initiatives for discussion, and to confirm next steps in regards to developing the concept of Repopulation Zones. Scottish Government will continue to engage with and reflect on this emerging work.

We committed to promote a thriving business environment that allows individuals to pursue a wide range of economic opportunities on islands.

Work is ongoing in relation to this commitment.

The Islands Growth Deal sets out a number of collaborative and Island specific proposals, designed to address the islands' demographic challenges, as well as supporting business innovation, and the move towards net zero.

The 18 projects within the Islands Growth Deal focus on developing infrastructure to support the growing renewables cluster, innovation programmes to maximise the value of primary and emerging growth industries, boosting the sustainable tourism and cultural offering, supported by a programme to equip the Islands workforce with the skills to meet current and future demand. The projects span a number of areas including low carbon, housing, skills, sustainable tourism, creative industries, space, food and drink and business innovation.

The Argyll and Bute Growth Deal projects span sustainable tourism, digital, business innovation, housing, skills, aquaculture, low carbon and regeneration. In the context of the climate emergency and the need to address the economic challenges facing island and rural communities in Argyll and Bute, the Deal will look to harness opportunities provided by the region's abundant marine renewable resources.

Through HIE significant investments are being made to support the transition to net zero, innovation and community infrastructure with creative industries, tourism and food and drink sectors in particular receiving support. Many of these investments are being delivered through important partnerships across public, private and third sectors.

In terms of innovation and entrepreneurship, the following programmes are accessible to our island communities:

• HIE Innovate supports businesses as they seek to develop their products, processes and business models.
• Interface Knowledge Connection links businesses with academia to find solutions to business problems. The service has been well used by island based businesses
• Your Business offers innovation support to .with cases studies – e.g. Outer Hebrides Tourism
• Co-Innovate provides access to innovation support and advice in Argyll and the West Highlands and Islands and has supported over 200 businesses to date.

HIE runs a programme of additional support to help entrepreneurs shape and develop their that address a social purpose. The programme was developed by HIE with colleagues across Europe and is funded through Interreg. Initially targeted at areas of rural disadvantage/remote rural, it is now a pan regional programme. The programme runs until June 2022 and has achieved over 30 start-ups since it began in March 2018, with a further 60 in development. Four physical hubs were initially established in Sutherland, Wester Ross, Easter Ross and Isles of South Uist. Support has been developed into a virtual online toolkit for social entrepreneurs which will remain available beyond the life of the programme.

We committed to create and promote apprenticeships and job opportunities for young islanders.

Work is ongoing in relation to this commitment.

HM Inspectors are producing a report for Scottish Government early in 2022 to evaluate Foundation Apprenticeships. This will identify what is working well, highlight any barriers to implementation, and make recommendations regarding aspects for improvement. On completion this process will build on the evidence base for how apprenticeships can support pathways to positive destinations in our island communities.

In recent years, the delivery of Modern Apprenticeship (MA) across the Islands in Scotland has been fairly consistent with 872 starts in 2018/19 and 904 in 2019/20. Like most regions across Scotland MA starts in the islands were impacted by the COVID-19 pandemic as employers reviewed, delayed and paused recruitment plans, resulting in fewer starts in 2020/21 (643 starts). Published on 15 February 2022, the Quarter 3 statistics, covering April-December 2021, show a positive increase in MA starts (514 at the end of Q3 2021/22) compared with the same time last year.

Foundation and Graduate Apprenticeships are also being delivered across the Islands, with numbers improving. For instance Na h-Eileanan Siar have increased the delivery of Foundation Apprenticeships (FAs) from 18 starts in 2018 to 54 starts in 2020. Graduate Apprenticeships have seen similar expansion in the Islands with both Argyll and Bute and Shetland Islands delivering eight GA opportunities in 2020/21 and Orkney Islands offering 12 GA opportunities in the same year.

Work on the Student Retention project is continuing. Student Retention aims to encourage students to remain in Scotland (and rural locations/move to islands or highlands) after completing study – this applies to any students from Scotland or the rest of the UK. Workforce dispersal could allow for jobs to be done anywhere and therefore there would be less of a need for young people to leave in order to engage in particular types of work.

We committed to ensure that skills provision is agile and responsive to future demand and enables individuals to take up opportunities.

Work is ongoing in relation to this commitment.

The 2019 Future Skills Action Plan (FSAP) sets out our ambition that people across Scotland should have access high quality skills support throughout their working life. Since the Plan's launch socio-economic conditions have changed greatly and while some of the trends and actions set out in FSAP have been delayed, others have been accelerated. We have now progressed into a second phase of the plan, allowing us to take stock of labour market changes and emerging economic challenges, and to align closely with the National Strategy for Economic Transformation.

A key priority of FSAP was to publish a Climate Emergency Skills Action Plan (CESAP). Published in December 2020, CESAP sets out the actions we need to take to ensure out workforce is able to support the transition to net zero. Since publication, the Climate Emergency Skills Action Plan has been driven forward by an Implementation Steering Group tasked with developing an Implementation Plan to set out a route map for green skills provision. As a priority action of CESAP, the Green Jobs Workforce Academy – administered by Skills Development Scotland – launched in August 2021. The Academy makes it easier for individuals of all backgrounds at any stage of their career to consider how their skills and experience can be built upon to launch a green career and to access upskilling or retraining courses.

In August 2021, we set up a Commission to undertake a review of learning for Scotland's land-based and aquaculture sectors. The review will cover learning from early years to adulthood, to provide opportunities and qualifications through school, college, university and work-based learning including apprenticeships, for more people, and specifically more women, to work with and on the land, particularly in green skills. The Commission will provide independent, evidence-based advice and recommendations to Scottish Ministers. The Commission met twice in 2021.

The National Transition Training Fund (NTTF) was introduced in 2020 as a specific response to the economic impact of COVID-19. In Year 2 the NTTF continues to support individuals and sectors affected by COVID-19, in Scotland, but also to address Brexit impacts and support future skills needs including the transition to net zero.

The Individual Training Account (ITA) programme is an established and important instrument in our ability to respond to Scotland's skills gaps for those both in and out of work. The programme supports individuals who are unemployed or earn £22,000 or under to access training in a number of curriculum areas to improve prospects of gaining employment or progressing in employment.

The Flexible Workforce Development Fund (FWDF) provides £15k of training for Scotland's Apprenticeship Levy-payers to upskill and/or reskill their existing workforce and £5k of training for non-levy payers (SME's). The training is delivered in partnership with local colleges, the Open University in Scotland (OUiS) or independent training providers, where specific training needs cannot be provided via a local college.

We committed to build on Scotland's National Marine Plan to ensure that fishing, other economic activities stemming from the sea provide increased opportunities for island communities, but at the same time that they are pursued in a sustainable manner.

Work is ongoing in relation to this commitment.

In 2021, we fulfilled our statutory requirement to review Scotland's National Marine Plan (adopted 2015). While the plan was found to be effective, the review noted that recent developments, like UK exit from the EU, the COVID-19 pandemic, and the climate emergency, as well as new efforts like the Future Fisheries Management Strategy, impact on our management of marine activities and point to the need to update the plan. Scottish Ministers have considered the findings of the Review, and a decision on those findings will be announced in spring 2022.

Scotland's Fisheries Management Strategy, published in December 2020, established a 12 point action plan which will deliver a range of policies to support sustainable and responsible fisheries management in Scotland. Those policies include working with local stakeholders to deliver tailored management approaches, and ensuring that the benefits from fishing can flow to local communities, for example, by increasing the volume of fish landed into Scotland.

To support aquaculture, the Scottish Government in its first 100 days appointed Professor Russel Griggs to lead an independent review aquaculture regulatory processes to ensure that development is more responsive, transparent and efficient. The sustainable development of Scotland's finfish, shellfish and seaweed farming sectors will be supported by the development of a Vision for sustainable aquaculture.

We committed to ensure that sustainable land use including agriculture and forestry continues to provide jobs and opportunities to island communities.

Work is ongoing in relation to this commitment.

We are moving forward to put in place a successor to the Common Agriculture Policy that will guide farming, food production and land use in the coming years. Our approach supports farmers and crofters to ensure their economic sustainability as we deal with the twin global emergencies of climate change and biodiversity, whilst continuing to produce high quality food. Development of the new approach will be fair and equitable as set out in the terms of a Just Transition that ensures a sustainable future for a reformed agriculture sector. We will adopt a new approach to policies for agriculture and food production and realise the collective desire to ensure Scottish policy, regulatory and funding frameworks enable investment in rural and island businesses and communities. Amongst other things, this will underpin the creation and maintenance of green jobs in the sector across our islands.

Forestry and Land Scotland (FLS) continues to run the Community Asset Transfer Scheme (CATS) in order to support communities to buy or lease land to empower local communities and support local objectives. This continues to provide opportunities for community ownership of woodlands and land that can be used to create new jobs and generate income on islands. The most recent asset transfer request, currently under CATS evaluation, is from the Arran High School Mountain Bike Club to create a new skills trail near Lamlash, with the aim of giving pupils the chance to improve their skills and gain MTB qualifications, as well as a bespoke facility for residents and visitors interested in mountain biking on Arran. On Mull, other requests in development include a historic walled garden and a community native tree nursery.

Scotland's forestry sector continues to employ people across Scotland and as part of the Green Recovery Scottish Government continues to support the expansion of the forestry workforce to respond to the increase in woodland creation and sustainable timber production, including on the islands.

FLS continue to sustainably manage the Scottish Minister's National Forest and Lands on the islands such as Isles of Arran, Mull and Skye. The management of these areas continues to support local economies (through direct forest management activity, outdoor recreation use and related wildlife tourism), increases local biodiversity and provides opportunities for people to access and use local woodlands on islands.

The Crofting Commission received additional funding which enabled it to appoint four permanent Crofting Commission staff in the Western Isles. The Commission intends to review this in the future, with a view to considering further Commission positions in other island crofting areas. Officers in post liaise with crofting communities to encourage croft occupancy, working with assessors, landlords and townships to encourage opportunities for new entrants, and encourage active croft use and management of common grazing land.

Scottish Government and Lantra have collaborated with SDS to produce a rural employers toolkit (Rural employers toolkit by lantra.scotland - Issuu). To address gender barriers and the uptake of practical training by women, as highlighted by the Women in Agriculture taskforce, the Women in Agriculture (Women in Agriculture Practical Training Fund | Lantra - Scotland ) and Women in Rural Economies Training fund (Women in the Rural Economy Training Fund | Lantra - Scotland) were developed and had strong applications from our islands. Lantra have also worked with CivTech 5.0 to identify SkillSeeder, an app that supports those, particularly in our rural and island communities to find new opportunities to learn and share skills (https://www.skillseeder.com/).

We committed to work with relevant partners and stakeholders to make tourism more sustainable and less seasonal, and encourage development of a year-round offer across a wider range of islands that delivers economic, environmental and social benefits.

Work is ongoing in relation to this commitment.

Scottish Tourism Recovery Taskforce

To support the long-term recovery of Scotland's tourism and hospitality industry, the Scottish Government established its Scottish Tourism Recovery Taskforce (STRT) in June 2020. It was co-chaired by the former Tourism Secretary Fergus Ewing, MSP and Business Minister Jamie Hepburn, MSP and was made up of more than 30 representatives with experience from across the industry.

The Taskforce looked at the priority rescue measures that could be taken by both the Scottish and UK Governments to bolster recovery. Phase 1 recovery measures are currently being taken forward by the Scottish Tourism Emergency Response Group (STERG). Members include VisitScotland, Enterprise Agencies, Skills Development Scotland, COSLA and the Scottish Tourism Alliance.

For further information please see: Tourism recovery programme - News | VisitScotland.org (https://www.visitscotland.org/news/2021/tourism-recovery-programme). Alongside implementing Phase 1 we have been working to co-produce plans for Phase 2 of recovery.

Tourism Recovery Programme

Phase 1 of the Tourism Recovery Programme commenced in 2021 and is well underway. The initial priorities for recovery are based on the recommendations by the Scottish Tourism Recovery Taskforce and comprise new areas of work in addition to the work that is being undertaken by VisitScotland, the Enterprise Agencies and Skills Development Scotland. They are designed to support the four outcomes identified in Scotland Outlook 2030:

• Outcome 1: We will attract, develop and retain a skilled, committed, diverse and valued workforce.
• Outcome 2: We will create and develop a sustainable destination together.
• Outcome 3: We will provide the very best, authentic and memorable experiences.
• Outcome 4: We will build business resilience, sustainability and profitability.

The 10 measures, supported by £25 million from the Scottish Government are:

• International Demand Building
• Destination and Sector Marketing Fund
• Holiday Voucher Scheme – Social Tourism
• Day's Out Incentive Scheme
• Strategic infrastructure Plans
• Tourism and Hospitality Talent Development Programme Phase 2
• Leadership development to boost product innovation
• A Net Zero Pathway for Scotland's Tourism Industry
• Scottish Tourism Observatory
• Investment models to support Scottish Tourism recovery

These 10 projects have a significant positive impact throughout the entire tourism supply chain.

Alongside implementing Phase 1, officials have been working with STERG to co-produce plans for a Phase 2 of recovery (2022/23 and 2023/24). The Scottish Government received proposals from STERG, on behalf of the Scottish Tourism Recovery Taskforce, on 27 August for Phase 2 of the Tourism Recovery Programme, setting out recovery actions for the next two years, including 13 Recovery Projects (some new, some continuing). We are now considering best approach to support the Phase 2 recovery work.

The Phase 2 recovery programme:

• proposes a set of 13 recovery projects;
• supports the rebuilding of the visitor economy in a responsible way, to ensures that tourism thrives; and
• will set Scotland's tourism and hospitality industry back on track to delivering the ambitions of Scotland Outlook 2030.

We are now considering the best approaches to support Phase 2 recovery work, which will focus on the subsequent two years.

We committed to ensure that crofting continues to provide jobs and opportunities to island communities.

Work is ongoing in relation to this commitment.

The Scottish Government continues to provide support to help sustain croft businesses. Officials continue to consider potential changes to the Crofting Agricultural Grant Scheme, which include widening the scope of activity which can be grant supported.

The Crofting Commission received additional funding which enabled it to appoint four permanent Crofting Commission staff in the Western Isles. The Commission intends to review this in the future, and if successful, can consider further positions in other island crofting areas.

We committed to deliver the Islands Passport initiative, which will promote the opportunity to visit a wider range of Scotland's inhabited islands, encouraging visitors throughout all seasons and by public transport, thereby delivering economic opportunities for island communities.

Work is ongoing in relation to this commitment.

The 2018-19 Programme for Government made a commitment to develop an Islands passport scheme as a marketing initiative to encourage people to visit more of Scotland's inhabited islands. This would raise awareness of the unique offer of each of our islands both domestically and internationally. Work on delivering the proposal is led by our delivery partner HITRANS, alongside wider stakeholder engagement. The proposal is based on adapting similar marketing initiatives that have been deployed successfully elsewhere, including the Danish islands passport.

The Islands Passport will contribute to the delivery of the National Islands Plan by supporting economic development and sustainable tourism. The passport will be both digital and hardcopy, with the digital product available first: Scottish Islands Passport (https://islands.scot/).

The project comprises four key areas of delivery:

• a mobile app providing island information and mechanisms to encourage people to visit more islands, explore and spend once they are there;
• a physical souvenir 'passport' and rubbing stamps on each island providing a timeless, digital detox experience and creating opportunities for merchandise sales;
• a website to enable visitors to access the app and passport and to point to other organisations and sources of island information; and
• and a marketing campaign to support widespread awareness and uptake.

We have continued funding this project in 2021/22, bringing our total support to £200,00. The project will be officially launched in 2022.

We committed to work with the food and drink industry to leverage its economic potential and explore options for sharing some of its benefits with island communities.

Work is ongoing in relation to this commitment.

The COVID-19 pandemic and Brexit taken together represented the biggest challenge and threat to our food and drink sector for a generation, and that is why Scottish Government has worked with Industry to support the Food and Drink Sector Recovery Plan, led by Scotland Food and Drink with input from NFUS, QMS, SSPO and other sector bodies.

The three year plan was launched in November 2020 and has so far received £10 million from Scottish Government, with industry also committed to raising £3 million in private sector funding to support the programme through to 2023. The plan does not provide direct financial support to businesses, but rather offers wrap around holistic support identified by Industry themselves. It contains 50 actions to support all sectors of Scotland's food and drink industry, including island communities, to recover from COVID-19 and mitigate the impact of Brexit. Moving forward, we will be working with the industry in refreshing Ambition 2030 as the sector adapts to the changing operating landscape post pandemic and Brexit. This work will, as the Recovery Plan before it, underpin the sustainability of the sector and the jobs it creates, especially in remote, rural and island communities.

HIE has worked to develop local food groups, which bring producers together to develop their businesses. The focus may be on selling off-island (e.g. Taste of Arran) or connecting businesses with visitors (e.g. Eat Drink Hebrides).

We committed to seek to expand the range of economic, social, and environmental benefits that island communities derive from forestry.

Work is ongoing in relation to this commitment

Woodland creation projects and forestry activities such as woodland management and timber harvesting continue to contribute to the delivery of the Scottish Government annual woodland creation target to help mitigate climate change, improving biodiversity and are supporting local businesses.

Scottish Forestry continues to work closely with Island communities that own woodlands, such as the Isle of Eigg Heritage Trust, to support the sustainable management and expansion of local woodlands that deliver social, economic and environmental benefits. On Eigg this includes the creation of three part time forestry jobs and a nearly full time tree nursery manager.

Scottish Forestry also supports communities through funding of the Community Woodlands Association (CWA). CWA provides independent advice and support to enable communities across Scotland and its islands to acquire, expand, manage and sustainably utilise local woodlands to meet local objectives. In 2021, this included working with the Isle of Eigg Heritage Trust on woodfuel development.

The Scottish Government's Strategic Timber Transport Scheme (STTS) continues to support projects that facilitate the sustainable transport of timber in rural areas of Scotland, including the islands that deliver benefits for local communities and the environment. For example, the planned improvements to the Ross Road on the Isle of Arran.

Engagement re: forestry would be undertaken via the SFTT Industry Leadership Group (ILG) Skills group and organisations such as Scottish Forestry to agree island specific actions that will target positive outcomes for island communities.

Skills activity in the Forestry sector links via the Scottish Forest Trees and Timber ILG Skills group, and reports into the SFTT ILG. The groups are coordinated by Confor. There has been a range of skills activity to support the development of skills. This has included work to develop a Forestry Induction pack – developed by Scottish Forestry – https://www.scotland.lantra.co.uk/forestry-induction-pack-wood-and-trees

National Training transition funding was given to Scottish Forestry to support engagement and attraction of entrants to the industry and focused on two critical areas. Forestry haulage and forest machine operator training.

The Forestry Ambassador Scheme was part of the STEM Ambassador Scheme. https://www.scotland.lantra.co.uk/stem-ambassadors to encourage pathways into the Sector while the Skillseeder website also offers a platform to share skills, and engage in networking https://www.skillseeder.com/about

We committed to review Scotland's National Planning Framework to ensure sufficient flexibility for island interests, including in how best to meet housing need.

Work is ongoing in relation to this commitment.

The draft National Planning Framework 4 (NPF4) was laid in the Scottish Parliament and published for public consultation in November 2021. Draft NPF4 includes land use planning policies on key issues supporting island and coastal communities lives such as: engagement, local living, housing, spaces and places, rural and coastal policies, health and wellbeing and connectivity.

An Island Communities Impact Assessment was undertaken for draft NPF4. From the evidence it sets out so far, the potential issues for island communities include a lack of a variety of housing types, sizes and tenures to meet people's needs and a lack of affordable housing. The assessment concluded that the island focused element of the spatial strategy, combined with the scope for underlying policies to fit with local circumstances, will achieve beneficial impacts for different island communities. Further consultation with island communities will be undertaken to maximise these benefits and a final assessment of the impact of these policies will be published alongside the adopted NPF4.

Scotland's north and west coast and islands have been identified as being at the forefront of our efforts to reach the Scottish Government's target of net zero emissions by 2045. The draft NPF4 spatial strategy specifically recognises the diversity of this area, from Shetland and Orkney in the north to the Outer and Inner Hebrides and the coastal areas of Argyll and Bute and Highland. Draft NPF4 aims to provide flexibility at the local development plan stage for local and specific island circumstances to be recognised, encouraging island authorities to set out tailored approaches to housing which reflect local specific market circumstances and delivery approaches.

Draft NPF4 aligns with the ambitions set out in Housing to 2040, Scotland's first long-term housing strategy, which was published in March 2021. Feedback received from those living in and working with island communities as well as the findings from the National Islands Plan consultation helped to inform the vision and strategy for Housing to 2040.

The Scottish Parliament will scrutinise this draft of NPF4 over a period of up to 120 days. The public consultation runs until the end of March 2022, which the Scottish Government is supporting with a series of engagement opportunities and encouraging everyone to share their views on planning Scotland's future development in response to this consultation.

Further information is available from: www.transformingplanning.scot

We committed to reflect the National Islands Plan and relevant regional perspectives in the review of the National Planning Framework and preparation of National Planning Framework 4.

Work is ongoing in relation to this commitment.

The National Islands Plan is reflected in the draft National Planning Framework 4 (NPF4) which was laid in the Scottish Parliament and published for public consultation in November 2021 (please find more detail in the previous commitment).

Each of the three Island authorities – Orkney Islands, Eilean Siar and Shetland Islands – developed and submitted their indicative Regional Spatial Strategies to help inform options for the national spatial strategy in the draft NPF4. The draft NPF4 proposes a series of strategic priority action areas which includes the 'North and west coastal innovation' area which includes the three Island authorities.

Kerrera Track Road

Scottish Government provided grant funding of £550,000 to the Isle of Kerrera Development Trust to support the delivery of a track connecting the north and south of the island which had been a long-standing priority for the island.

The project involved close collaboration between the development trust, local authority and Scottish Government, with work beginning in August 2021. In November 2021, Barrachander Quarry (Taynuilt) completed the forestry grade track from the ferry in the centre of the island, up to Ardentrive Farm in the north. While it took only three months to dig and build the road, this project has taken years of hard work and perseverance behind the scenes from the Isle of Kerrera Development Trust.

This project now means that residents in the north of the islands can have equal access to the lifeline ferry service, giving them more resilience and opportunity. It also gives the rest of the island access to the marina facilities at the north end, which will be of great benefit in terms of accessing out of ferry hours activities on the mainland.

With a new community hub at the Old School also being progressed in 2021, this new road allows the whole island access to what will be a much needed neutral venue to meet, learn and socialise.

The community plan to engage with the local NHS management to try to implement an emergency plan for the island, now that the majority can be reached by road. This is seen by the community as great progress for their island's resilience.

During the preparation of the 2020 Infrastructure Investment Plan, we committed to consider the implications of the National Islands Plan on future infrastructure requirements.

This commitment is fulfilled.

The Islands Programme is investing £30 million of Infrastructure Investment Plan capital funding over five years to ensure delivery of the National Islands Plan, by supporting a range of areas, including tourism, infrastructure, innovation, energy transition and skills – informed by our learning of how island communities have responded and adapted to COVID-19.

In financial year 2021/22, the Islands Programme encompassed three project strands:

Islands Infrastructure Fund

The Islands Infrastructure Fund (IIF) represents a £6.2 million capital investment in 2021/22. Based on community input and in collaboration with HIE and our local authority partners in Shetland and Argyll and Bute, two key projects totalling £1.2 million for this financial year under the IIF strand of the Islands Programme, have already been approved. These are the Kerrera Track upgrade, and the Fair Isle Bird Observatory rebuild. The remaining £5 million was allocated direct to the six island local authorities to sustain, enhance and develop transformational and critical infrastructure projects based on local priorities whilst supporting delivery of the National Islands Plan.

Island Communities Fund

The £2 million Island Communities Fund (ICF) functioned as one strand of the 2021/22 Islands Programme, providing capital investment for community-led projects that aligned with community wealth building approaches and support employment, community resilience and contribute to Scotland's just transition to net zero and climate resilient living on islands. The ICF has delivered a £2,586,000 grant commitment through 35 island-based community groups and businesses that will provide direct support across 55 islands, who have been awarded grants of up to £150,000 each.

Healthy Islands Fund

The £1.3 million Healthy Islands Fund (HIF) focused on building local capacity to increase wellbeing, foster connections and promote healthy and resilient islanders and communities. Successful applicants are spread across 35 different islands and when taking the Scottish Rural Health Partnership/University of the Highlands and Islands research project into consideration, (which proposes to undertake a review of island mental health and wellbeing evidence across the entirety of the three island authorities), this extends the reach of the HIF to 60 islands.

Recognising the services that island abattoirs provide to their communities, we committed to work with relevant partners to deliver sustainable and economical viable operations.

This commitment is fulfilled.

Although there is a relatively good abattoir coverage for all areas in Scotland, we recognise that there will be occasions where local requirements are not met. There are several reasons why this may be the case, based on throughput, costs, commercial pull of bigger processors and, on occasion, lack of local interest. It is vital that all abattoirs are fit for purpose and have a viable future, and to achieve this, a plant needs to run at a near to capacity for the size of the plant and in order to ensure sustained viability. Unfortunately, this might not be the case where low local throughput makes long-term viability an issue.

The Scottish Government commissioned a feasibility study to determine whether mobile abattoirs would be a viable option in Scotland. The study, which was published early in 2020, provides details of what would be required to operate mobile abattoirs in Scotland; including the regulatory framework and cost-benefit analysis of possible operational models.

Mobile abattoirs are required to have all the regulations that a stationery slaughter house have and are subject to official controls enforced and executed by Food Standards Scotland (FSS). A mobile abattoir would require a stance, which would require planning permission and be approved by FSS, meeting the same specifications as a stationary abattoir. Each individual location that a mobile abattoir operated in would hold the same requirements before the mobile abattoir could operate. No further legislation would be required other than what is already laid down for the running of a slaughter house. In addition, all abattoirs require to have OVS present and FSS meat inspectors, which would have a proportionately high cost burden for a mobile abattoir with what would likely be a very low throughput facility.

Any next steps would be for a commercial operator that wishes to take this forward. The Scottish Government, in conjunction with Food Standards Scotland, would of course be willing to discuss in more detail with any organisation who are considering operating either mobile abattoirs in Scotland, or indeed a new stationary abattoir.

Subject to specific eligibility rules, abattoirs are able to apply for funding, for capital and non-capital projects through the Food Processing, Marketing and Cooperation (FPMC) grant scheme and many have benefited from this over the years. The FPMC scheme is going through a process of change, as is the case with all schemes previously funded through the SRDP, however they continue to provide application windows where abattoirs and new food venture businesses would be able to apply for grants.

We committed to ensure that legislation and policy relating to early learning and childcare is appropriately island proofed.

Work is ongoing in relation to this commitment.

We work in close partnership with COSLA in the delivery of the early learning and childcare expansion programme, and more broadly to support delivery of high quality ELC services across Scotland, to help ensure that the needs of remote areas and islands are met.

The Scottish Government has provided £476 million of capital funding to local authorities over the last four years to refurbish, re-purpose and extend existing nursery settings, as well as providing over 120 new facilities across Scotland. Individual local authorities have been responsible for deciding how this funding is used, ensuring that their capital programmes have been both appropriate and responsive to local need.

The childcare sector representative bodies, including Care and Learning Alliance, are a key to our consultation and implementation of Early Learning and Childcare, and contribute through, in particular, the Childcare Working and Working Group to the development of our Funding Follows the Child policy framework. They have an integral part in our response to needs of the childcare sector brought about by the global COVID pandemic through the work of the Sector Recovery Group. That has involved implications and considerations for rural and island communities alike.

Impact assessments have been carried out throughout the programme to expand the provision of funded ELC to 1140 hours per year for all three and four year olds and eligible two year olds, including an islands impact assessment that can be found online. The most recent of these were carried out when the proposed legislation to bring in the statutory duty was laid in Parliament – see The Children and Young People (Scotland) Act 2014 (Modification) Order 2021 (legislation.gov.uk). An agreed principle of ELC funding is to acknowledge regional differences and seek to support local authorities to make decisions that support evidenced need within their own communities.

We committed to ensure that opportunities to develop the wellbeing of the Gaelic language and to increase the number of speakers and users are considered as part of sustainable economic development.

Work is ongoing in relation to this commitment.

Additional support for the Cnoc Soilleir community and educational project is now in place . A number of Gaelic initiatives and bodies such as Fèisean nan Gàidheal and Storlann are located in island areas with positive economic results. Support is also available for community trusts which combine economic development with support for Gaelic.

There are a number of Gaelic projects and initiatives such as MG ALBA that contribute to economic development and this emphasis has been central to the Deputy First Minister's Faster Rate of Progress and Community Engagement initiatives.

We committed to support women in agriculture on Scottish islands to succeed, including encouraging their participation in the leadership development programme, addressing unconscious bias by organisations and businesses and breaking down cultural barriers.

Work is ongoing in relation to this commitment.

Scottish Government has committed £300,000 to support women in agriculture until 2024/25 including the wider roll-out of the personal development programme 'Be Your Best Self' and the development of Skillseeder – a skills sharing app which provides an easy to use one-stop shop to find training and skills development opportunities across the country, particularly for those in rural and island areas.

The Women in Agriculture Development Programme (WiADP) was developed for women across all parts of Scotland and as part of this, the Women in Agriculture Practical Training Fund has provided £12,423 in support for practical training to women from island communities. Of the 460 successful applications to the fund, 4% were from women on islands. This year also saw an element of funding ring fenced specifically for applicants living in island communities.

A new series of courses begins in October with online and in-person provision to make it as inclusive as possible. We will continue to promote these courses to women on Scottish islands.

Additionally, we are funding a project with Mull and Iona Community Trust, to trial innovative, flexible and sustainable models of childcare, which might be applicable on other islands and in other rural and remote areas. Childcare was identified as a major barrier to women's full participation in agriculture.

We committed to work with relevant local authorities to develop regional food and drink action plans to support growth of the sector on islands, including a focus on the vital Whisky sector.

Work is ongoing in relation to this commitment.

The Scottish Government made links with industry leaders at a roundtable for labour/skills shortages with Ministers. As a result of this work, a Working with Business Action Plan was developed to help identify actions that could be taken to help mitigate the effects of labour market shortages on businesses and to help stimulate economic recovery. We will continue to engage with sector leads across Scottish Government and their industry stakeholders and will continue to feed this information for consideration as part of the ongoing development of the Talent Attraction and Retention programme.

We committed to work with relevant local authorities to encourage take up of Food For Life accreditation to help stimulate local sourcing in public sector settings.

Work is ongoing in relation to this commitment.

We continue to support the delivery of the Food for Life Programme with a focus on school meals and the Soil Association are targeting all Scottish local authorities to encourage them to apply for accreditation through the scheme. Through a process of education, and relationship building, delivery of the program is progressing steadily, and there are currently 18 councils who now hold FFL accreditation – this includes Orkney and Shetland who achieved bronze level accreditation in 2020/21 and 2021/22 respectively. We are also discussing with the Soil Association the potential for expanding our support for the programme into other public sector settings.