Islanders fear for their communities as fuel costs rocket

isles federation chairman speaks of ‘extinction’ as he calls for action

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Fragile island communities claim they are veering towards bankruptcy and extinction as a result of crippling rises in fuel prices.

Backed by islanders the length and breadth of the country, Ian Gillies, chairman of the Scottish Islands Federation, is calling on the chancellor to take immediate action, before it is too late.

Mr Gillies said: “Coupled with ridiculously high increases in vehicle excise duties on farmers' and fishermen's pick-ups and four-wheel drive vehicles, the current crisis is going to drive our primary industries, and therefore our island communities, to the very edge of bankruptcy and even extinction."

He added: “Major island contributers to our national economy, such as the Islay whisky industry, are struggling to cope with massive increases in production and distribution costs.

“Small island hauliers who provide the day-to-day essentials from the mainland to islanders are finding their already tight operating margins quickly dwindling. The real damage is in our fishing and farming communities, where fuel costs have risen by a reported 300% in the last year."

And Mr Gillies said the Scottish Government's drive to instal heating systems into every pensioner's home was affected by the rising costs.

He added: “Pensioners are terrified to run the mainly oil-fired systems due to the huge rise in the costs of heating oil."

Beri Robb, of Luing firm of A. Robb (Engineering) Luing, said: “This could be the end of small businesses like ours.

“Crippling rising costs, combined with surcharges and ever-increasing bureaucracy, are knocking the heart out of small businesses especially on the islands.”

Sandy Brunton, president of Mull and Iona Chamber of Commerce, said: “We are seeing for the first time boats tied up for consecutive days due to the cost of fuel.”

Crofter Gerald MacLeod from Doune, Lewis, said the cost of animal feed and its delivery has doubled in one year, making his already marginal farm uneconomic.

And Eileen MacDonald, the proprietor of the Doune Braes Hotel, said that she set her rates for customers last year, when the cost of her heating oil was 39p a litre. Her last delivery cost 65p a litre.

She said: “The combination effect is cutting in again, and tourism in the Western Isles is well down."

Argyll MP Alan Reid said: “I thing the best thing the chancellor could do would be to have a reduced rate of fuel duty for fuel sold on the islands. Myself and other Highlands and islands MPs had a meeting with the Exchequer's secretary who was sympathetic, listened to all the representations made and said they would consider the proposal."