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New push for lucrative “Islands Deal”

Shetland Islands Council Leader Gary Robinson
Shetland Islands Council Leader Gary Robinson

Council chiefs are pushing the UK and Scottish governments for a multimillion pound “Islands Deal” to unlock major new investment.

The leaders of the local authorities on Shetland, Orkney and Western Isles are working behind-the-scenes to build their case for a lucrative package from Holyrood and Westminster.

They plan to raise the issue at the next meeting of the ministerial working group, set up to look into devolving more powers to the islands, when it convenes in Shetland later this month.

Last month, Aberdeen secured a £250million City Deal which it is hoped could pave the way for £1.2billion of investment.

A similar package is expected to be awarded to Inverness in the coming months.

In 2014, the UK Government produced an 11-page framework to strengthen the political and economic powers available to the three island councils, including a pledge to investigate offering the islands some of the same incentives given under the City Deal programme.

Shetland Islands Council leader Gary Robinson said last night that three local authorities were pressing for that commitment to be delivered.

“An Islands Deal is something that we have been very keen on from the outset of the process. That’s something we have been pressing on both governments,” he said.

Orkney Islands Council leader Steven Heddle added: “We’re developing the detail of it. It’s a development of the work we’re carrying through – packaging it, in a sense – to enable it to be carried forward.

“The aim of a deal is a two-way transaction and it’s important that our areas benefit, but also the government needs the transaction to focus on specific policy areas. We’re looking at issues that are big for us and big for them as well.

“The key thing for us is that we will be looking for something that will address the issues that are particular to us.

“We’re trying to carry forward an agenda that is both ambitious and realistic.”

A Scottish Government spokesman said: “The Scottish Government and island councils have been working positively in partnership through the Island Areas Ministerial Working Group since 2013.

“The next meeting of the group will take place in Shetland later this month, and ministers will be happy to discuss any proposals the island councils may wish to bring forward.”

A Scotland Office spokesman said: “The UK Government is committed to the implementation of its Framework Agreement with the islands and welcomes the positive relationship we have.

“We are happy to talk to any city, region or local authority about the City Deal process, which is driven from the bottom up and is about finding innovative ways to stimulate growth, working in partnership with the private sector.”