Islands business resilience fund: island communities impact assessment

2. What data is available and who will be affected by the Fund?

The IBRF provides support to island-based businesses that have been most adversely impacted by ferry service disruptions. We used aggregated operational data provided by CalMac for the last three contract years (CY) to assess the scale of disruption across routes. Our analysis focused on the percentage of cancelled sailings as a proportion of scheduled sailings, identifying those routes with the highest levels of service failure.

Considerations on the impact of cancellations on all available CalMac routes showed that a number of routes experienced the highest levels of disruption – defined as exceeding 15% of all scheduled sailings. This provided us with our evidence-based threshold for prioritisation of eligibility.

The table below shows cancelled sailings as a percentage of scheduled sailings over the last three contract years (CY6-CY8), and for CY 8 only for these routes.

This data clearly indicates that the following islands have experienced the most significant and sustained disruption, and should therefore be prioritised for support through the IBRF:

• Arran
• South Uist
• Colonsay
• North Uist
• Eriskay
• Benbecula
• Berneray
• Grimsay

This method of prioritisation supports a fair, evidence-based approach to allocating limited funding where business impacts have been most acute. It also reflects stakeholder feedback and supports the policy objectives of the Islands (Scotland) Act 2018 and the National Islands Plan (see below).

Ferry disruption varies significantly across routes, which impacts island businesses in different ways. For example, some routes have experienced extremely high levels of cancellations, while others are more stable or have alternative transport options.

This variation is why the IBRF uses a targeted approach rather than a blanket one. The table below shows routes that have experienced over 15% cancellations in the most recent contract year and have no alternative ferry or land route. These were used to help prioritise support under the Fund.

By focusing support on the most severely affected routes/islands, the IBRF provides a mitigation for the disproportionate business impact on certain islands.

We have also aligned the IBRF with our National Islands Plan Strategic Objectives (namely Supporting Sustainable Economic Development).

In line with the Islands (Scotland) Act 2018, the IBRF also reflects the duty placed on relevant authorities – including Scottish Ministers (Section 7) to consider whether policies or services are likely to have a different effect on island communities compared to other areas of Scotland.

The IBRF has been designed in close collaboration with HIE, which brings specialist knowledge of the needs of island-based businesses and funding delivery experience.