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Island businesses say 'no sign' of promised £4.4m amid ferry crisis

Island businesses say 'no sign' of promised £4.4m amid ferry crisis

STV News26-05-2025

Businesses on South Uist are calling on the Scottish Government to come good on their promise of £4.4m of resilience funds for those worst affected by the ongoing ferry crisis.
The Government's original announcement came one month ago, the day before transport minister Fiona Hyslop travelled to the island to attend South Uist Business Impact Group's (SUBIG) crisis meeting, where over 50 businesses presented testimony on how the ferry crisis has affected them in the hopes of discussing a way forward.
However, since the meeting, the business group has heard no further mention of the fund.
John Daniel Peteranna, director of local community landowner Storas Uist, said: 'Uist has suffered a severely reduced ferry service all this year.
'Island businesses stand ready to work with the government on how the fund might work, but are disappointed at the government's slow approach.
'This fund is urgently needed to ensure island businesses can survive until the ferry service improves.'
The call comes after South Uist's ferry, the Lord of the Isles, returned to its home port of Lochboisdale for the first time since Hogmanay.
Saturday saw the first service between South Uist and its 'usual' mainland port of Mallaig for almost six months.
Loti is the only 'large' ferry in CalMac's fleet capable of entering Mallaig harbour while also able to travel out to South Uist. At 37 years old, it is one of the oldest in the fleet and prone to breakdowns.
Last September, a fire in the engine room during the crossing led to its removal from service for weeks, further disrupting the island's economy.
The return of the island's ferry also means the island's full summer timetable can finally commence, albeit two months later than planned.
This shorter route to Mallaig, only three and a half hours instead of the five and a half hours to Oban that businesses, families and other travellers have endured for the past six months, also means South Uist will benefit from two sailings a day on Mondays, Thursdays and Saturdays in the full summer timetable.
But, as the MV Lord of the Isles slunk into her berth on Friday evening, shrouded by squalls of long absent rain, islanders know that this full summer timetable will last for only two weeks.
For most of June and July, CalMac is cutting one service a week to the island and redirecting two others to distant Oban instead of Mallaig.
'Island businesses and families need a timetable they can rely on', Mr Peteranna added.
'We shouldn't live in fear of our service being cut every time there's a problem somewhere else in CalMac's fleet. We call on the government to present the details of the resilience fund.'
With its regular ferry returning from helping out on routes to islands CalMac prioritises above South Uist, there is cautious optimism from hospitality and other businesses that something might yet be made of the summer season.
A Scottish Government spokesperson said: 'Scotland's island communities and businesses face many challenges, we recognise the need to provide additional targeted support and that is why we have allocated an initial £4.4m to establish a resilience fund to support island businesses.
'People and businesses need to have confidence in ferry services running reliably and frequently to support their livelihoods, among many other factors and it is clear that any delays or maintenance to vessels can create real difficulties and we are determined to do everything we can to support islands, local businesses and employers through these challenging times.
'We are currently working at pace with partners to refine eligibility criteria and so that we can open for applications as soon as possible.'
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