New £6 million cash pot to keep Shetland ferries afloat confirmed by Scottish Government

The Scottish Government is pledging £6 million to keep Shetland’s inter-island ferries running amid rising fuel costs.

Shetland Islands Council confirmed Deputy First Minister John Swinney has agreed to fill the revenue gap needed to run inter-island ferries.

Ferry services run to nine islands and during the next financial year the annual cost of running these vessels will amount to £23 million.

‘Ferries are a lifeline service’

Mr Swinney told the Scottish Parliament: “I recognise the difficulties being faced by our island authorities in managing the cost increases facing their inter-islands ferry network due to the effects of inflation and rising fuel prices.

“The government gave a commitment some years ago to fully fund those services so the second commitment is that that is a commitment we will honour.

“We recognise there are increased costs and my officials are engaging with councils specifically on the level of funding required and Parliament will be informed once those decisions have concluded.”

Emma Macdonald, leader of Shetland Islands Council, said: “The importance of the inter-island ferry service to life in Shetland cannot be overestimated.

“The ferry service is the social and economic backbone of our islands. The ferries take commuters to work and essentials to community shops. The ferries take patients to hospital and children to school.

“They are a lifeline in the truest sense of the word, and the key to unlocking economic success not just for Shetland, but for all of Scotland.”

In January, the UK Government agreed to provide £27 million in its Levelling Up funds to give Fair Isle its first new ferry in almost 40 years along with new terminals.

Highlands and Islands MSP Emma Roddick said: “I am glad to see the Scottish Government recognise the difficulties that our island authorities face in managing the cost increases and how that impacts the inter-islands ferry network due to the effects of inflation and rising fuel prices.

“The SNP made a commitment to fully fund these vital services and it’s clear that this will be honoured through engaging with councils specifically on the level of funding required.”

“The route is a lifeline for the community and a new ferry helps secure it for years to come and will give a much needed boost to island confidence.”