Highlands and islands businesses have criticised cuts to vital travel services as ferry sailings were pared back during the peak summer months and lifeline flights face a “future funding challenge”.
Critical transport services across rural Scotland and the isles are under unprecedented strain and in recent weeks I have laid bare the extent of the pressures across a number of articles.
CalMac cut services from Islay to the mainland by two a week to allow for work to take place at Kennacraig port in preparation for the first of two new ferries arriving later this year.
It prompted an angry response from one freight company, which described the ferry service as a “nightmare”.
Robbie Drummond, chief executive of CalMac, told me: “There is a significant programme of upgrade works scheduled for the route to prepare for the arrival of Islay’s two new vessels. While this will cause some short-term disruption, it will also be pivotal to the introduction of these vessels in 2024 and 2025, which will bolster the long-term resilience and reliability of Islay’s ferry service.
“The timetable this summer will have two fewer sailings per week, on a Friday evening and Saturday morning, due to the knock-on effects on crew hours of rest caused by the upgrade works. We appreciate that the communities we serve would prefer to have a full timetable, but this is the optimal service in the circumstances.”
In one of two business exclusives to make the front page of The Herald as part of The New Highland Clearances series, I revealed cuts to airports funding which create a “future challenge”, operators said.
Highlands and Islands Airports Limited (HIAL) documents revealed a planned reduction in funding over the next three years at a time when communities and businesses are calling for increased air services as they struggle with the beleaguered ferry system.
The company operates 11 airports and provides safeguarding services across a vast area of land and sea, and relies on the support of subsidies, which last year totalled £62 million, down from £76m the year before. New financial results showed HIAL has increased passenger numbers and narrowed operating losses amid a recalibration of the service.
The figures reveal a 39 per cent increase on passenger figures last year compared to the year before for Scottish Government-owned HIAL.
It comes amid calls for more funding and targeted services from Hebridean communities such as Colonsay and Islay.
A second front page exclusive was picked up by The Herald team while it was in Fort William, when we published outwith Glasgow for the first time in our 240-year history.
We revealed a renewable energy business owner is challenging the Scottish Government over what it believes are the highest business rates in Scotland proportionate to turnover.
One of the country’s most remote companies that provides key employment and economic benefits has been calling for the government to review non-domestic rates that are averaging around £500,000 a year and have led to the loss of jobs.
Hugh Raven, of Ardtornish Hydro, Morvern, said the rising rates bill for which the business has to set funds aside is also halting critical investment in the rural west of Scotland area.
He told me: “In 2021 we first found ourselves paying rates of £525,000 on our hydro schemes which was about a fifth of the enterprise turnover.”
Also this month, I reported a ship built at a famed Scots yard set to enter water for first time. BAE Systems said HMS Cardiff is to reach the milestone this year, as it posted its annual results that showed a 9% increase in sales.
HMS Cardiff is part of a £4.2 billion contract to build five Royal Navy warships on the Clyde at the company’s Govan and Scotstoun shipyards.
The defence giant has taken on 800 people in Scotland in the past year and employs almost 4,300, including at its naval ships business in Glasgow, manufacturing facilities at Hillend, regional aircraft operations in Prestwick and at RAF Lossiemouth.
BAE Systems said that in 2023 in Scotland it “cut steel on HMS Birmingham and completed all major units of the second vessel, HMS Cardiff, which will enter the water for the first time in 2024 and continued work on the other two ships already in build (HMS Glasgow, HMS Belfast)”.
The firm said it “continued to invest in people and facilities”.
This article first appeared in our Business HQ Monthly supplement.
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