Islands Strategic Group and Islands Transport Forum minutes: March 2025

Attendees and apologies

• Jim Fairlie, Minister for Agriculture and Connectivity 
• Fiona Hyslop, Cabinet Secretary for Transport
• Councillor Jim Lynch, Council Leader, Argyll and Bute Council
• Fergus Murray, Head of Development and Economic Growth, Argyll and Bute Council
• Councillor Paul Steele, Council Leader, Comhairle nan Eilean Siar
• Malcolm Burr, Chief Executive, Comhairle nan Eilean Siar
• Linda Cunningham, Senior Officer, Comhairle nan Eilean Siar
• Councillor Ken Gowans, Chairman of the Economy and Infrastructure Committee, Highland Council
• Tracey Urry, Head of Roads and Infrastructure, Highland Council
• Russell McCutcheon, Executive Director (Place) / Chief Officer, North Ayrshire Council
• Sarah Baird, Senior Islands Officer, North Ayrshire Council
• Claire Fitzsimmons, Senior Manager – Regeneration, North Ayrshire Council
• Councillor Heather Woodbridge, Council Leader, Orkney Islands Council 
• Oliver Reid, Chief Executive, Orkney Islands Council
• Laura Cromarty, Service Manager Transport, Orkney Islands Council
• Councillor Emma MacDonald, Council Leader, Shetland Islands Council
• Councillor Moraig Lyall, Chair of Environment and Transport, Shetland Islands Council
• Maggie Sandison, Chief Executive, Shetland Islands Council
• Michael Craigie, Executive Manager – Transport Planning and ZetTrans Lead Officer, Shetland Islands Council

Scottish Government

• Anna Densham, Deputy Director, Land Reform, Rural and Islands Policy
• Erica Clarkson, Islands Policy Lead
• Francesco Bertoldi, National Islands Plan Team Leader 
• Megan McWilliams, Senior Islands Policy Advisor
• Peter Brearley, Senior Islands Policy Advisor
• Stuart Brown, Island Communities Policy Advisor
• Laurence Kenney, Head of Ferries Policy, Transport Scotland
• Terry Shevlin, Aviation Strategy and Sustainable Aviation Team Leader, Transport Scotland
• Michael Bratcher, Aviation Policy Officer, Transport Scotland
• Kirsty MacCormick, Senior Policy Manager - Rural Primary Care and Transport to Health
• Jonathan Inglis, Transport Strategy Officer, Transport Scotland
• Jhon Bateman, Senior Policy Advisor - Accessible Travel
• Stephen McNulty, Rural and Transport to Health Policy Team, 2023 Graduate Development Programme
• David Storrie, Head of Local Taxation Policy
• Fiona Campbell, Cruise ship levy and visitor levy policy
• Kelly Savage, Policy Officer, cruise ship levy and visitor levy policy
• Philip Raines, Place Director for Shetland and Deputy Director for Domestic Climate Change
• Ellen Leaver, Place Director for Orkney and Director of Local Government Directorate
• Kirsty Walker, Place Director for Na h-Eileanan Siar and Deputy Director for Executive Team Strategic Governance Office

Items and actions

Welcome

The Minister for Agriculture and Connectivity, Jim Fairlie welcomed attendees and explained that he would be chairing the meeting as the Cabinet Secretary for Rural Affairs, Land Reform and Islands had been called away to attend Parliamentary business.

The Minister noted that the agenda was agreed at the previous meeting, in September 2024, but that an additional item – the potential cruise ship levy – had been added at the request of Scottish Government officials with no objections. 

Additionally, the Minister acknowledged that the minutes of the previous meetings of the Islands Strategic Group and Islands Transport Forum and had been circulated amongst members last year and subsequently agreed by all parties.

Minister Fairlie passed the chair to the Cabinet Secretary for Transport, Ms Hyslop.

Islands Transport Forum 

Cabinet Secretary Hyslop welcomed members to the Islands Transport Forum and explained that ferries have not been included on the agenda, as she attended a meeting of the Clyde and Hebrides Ferries Service 3 (CHFS3) with west coast local authorities the day before (19 March 2025) where a range of ferries matters were discussed.

The Cabinet Secretary then introduced Kirsty MacCormick to speak on the Transport to Health agenda item.

Transport to Health

Kirsty MacCormick presented an overview of the recent Western Isles Transport and Health Working Group Report, prepared by the Highlands and Islands Transport Partnership (HITRANS), and its subsequent recommendations.

Minister Fairlie thanked Kirsty and stated that it was clear to see all parties had undertaken a significant amount of work and that the results were positive, though acknowledged there is still more to do. 

Malcolm Burr commended the work that has been undertaken in a short time, noting the collaborative approach and acknowledging the impact this will have on the wider community and improving air services. He thanked the Scottish Government Local Government Directorate for the constructive dialogue to date on potential requests from the Comhairle for financial support to improve inter-island connectivity in the Western Isles. Mr Burr commented that this approach could be widened to other aspects of transport policy.

Councillor Lyall spoke of reducing the need to travel to hospital appointments on mainland Scotland, where appointments could be conducted online or conflated. Additionally more consideration should be given for islanders, who may need to travel long distances, when arranging appointment times which may help to improve the patient experience. 

Councillor Steele commented that this focused piece of work has been very beneficial. The local authority are appreciative of the additional resource and collaborative approach. He echoed the previous comments regarding appointment times and noted these are regular issues.

Kirsty MacCormick thanked attendees for the feedback and acknowledged that there is now a commitment in the report to take a regional approach to health planning and speak to mainland health boards to ensure a better patient experience. She commented that this is the beginning of this piece of work, and they will be speaking to all partners to take it forward.

Cabinet Secretary Hyslop suggests a regular update be provided to the Islands Transport Forum. 

Minister Fairlie indicated that he was pleased to see the collaboration resulting in tangible targets.  He acknowledged the comments made regarding patient location and considered if there was a need for people to be travelling at all, particularly if there was improved management and a better patient experience. 

Aviation

Mr Fairlie spoke on the aviation item and explained that he wanted to start a discussion on how anticipated future changes in air services in the Highlands and Islands would impact the provision of public services. 

The Minister commented that this would build on the previous agenda item, which focused on health in the Western Isles, by considering public services in the Highlands and Islands as a whole. 

Mr Fairlie suggested there would likely be fewer air services in future given changes in the commercial market and continued pressure on public finances. He said this meant considering issues such as ensuring that local communities can continue to access public services, who and what we are looking to transport by air and providing public services or supporting air services in a different way. He acknowledged that this would require a more collaborative and evidence-based discussion. 

Councillor Lyall noted that she was concerned to hear about a potential reduction in air services and stressed that the interplay between aviation and ferries needs to be considered.

Cabinet Secretary Hyslop cautioned that this is a look at how to do aviation differently with perspective rather than reduce.

Malcolm Burr acknowledged commercial pressures and suggested that clean fuel and differently powered aircraft, such as those being piloted in Orkney, should be kept in mind. He noted that the price of aviation remains an issue for islanders when considering routes off island and that any change of air services needs to be looked at in conjunction with ferries.

Cabinet Secretary Hyslop acknowledged the need to think about how people could use aviation differently in the islands in future, but cautioned against being driven by commercial considerations or an assumption that flying will reduce with climate change. 

Minister Fairlie clarified that there is a need to understand what islanders use aviation for and to work strategically and collaboratively to tackle challenges. 

Fergus Murray acknowledged the cost of aviation is prohibitive but underlined that new technologies such as drones are being tested across the Highlands and Islands and they could reduce the need to travel. He commented there is a need to address the issues that restrict the use of aviation technologies and noted a shortage of pilots and engineers and recruitment issues. Flights which are cheaper, more frequent and use cleaner fuel would be the solution to travel issues in the islands.

Councillor Steele commented that Comhairle nan Eilean Siar are also looking at reducing car miles which is an issue on islands. He echoed Fergus Murray’s comments regarding flight frequency, cost and fuel and noted the importance of new technologies. He indicated that there is a huge pipeline of potential investments in renewable energy which will bring more people to the islands, but these people will need to travel on and off island regularly so there may be opportunities in the commercial sector. 

Councillor Ken Gowans stated that the sustainability of Public Service Obligations (PSOs) is questionable in the longer term and there is a need to consider how value can be added with a possibility of adding destinations on the route. He noted that there could be a cost increase with new technologies and said there needs to be integration and management of these opportunities.

Councillor Woodbridge stated she was initially concerned about the suggestion of reduced aviation as inter-island connectivity is critical in Orkney. She noted that she cannot see this happening until the ferries network is enhanced. She explained that inter-isles air services prop up health services and are currently far cleaner in terms of carbon emissions than ferries. These services also underpin how the Council deliver education on the isles and without them depopulation would be an even greater issue. She commented that she can see opportunities in an expansion of air services in Orkney, for example patient transfer and Scottish Ambulance Service and asked if there is an option to explore a local island-based aircraft to serve in this role as was done previously.

Councillor Woodbridge also commented that connectivity to mainland Scotland and further afield is both a financial constraint, in terms of cost, but is also an enabler of economic activity.

Maggie Sandison stated that the highlands and islands contribute greatly to Scotland, particularly economically, and that infrastructure which is nationally important needs to be located on islands. Transport is needed to facilitate the economy, and she said more investment in national and local infrastructure is needed to realise the potential.

Oliver Reid said that sustainable air transport is very important in Orkney, and the local authority appreciate the flexibility around the third aircraft. He noted that digital connectivity and transport connectivity are conflated, but that the solutions for digital connectivity are in the hands of individuals whereas physical connectivity requires intervention and is needed to sustain life on islands both in terms of physical appointments and freight.

He considered that BEAR Scotland’s remit is restricted to mainland Scotland. He stated that islands need the trunk road networks to be viable to support connections to the outer isles and large-scale infrastructure investment such as ports, harbours and offshore wind. Opportunities rely on physical connectivity and investment to unlock potential, and communities would welcome this.

Cabinet Secretary Hyslop stated there is a need to commission work to look at transport and renewables generally. 

Councillor Emma MacDonald emphasised the point of poor connectivity driving depopulation on islands. She said there is huge economic potential, but islands struggle with workforce recruitment to harness these opportunities, which could provide an incentive for more people to stay on their islands. She commented that without a transport infrastructure that allows young people to travel, they will choose to live elsewhere.

Cabinet Secretary Hyslop noted that public service provision in the islands is a wider transport issue, not solely something to be considered through an aviation lens. 

In concluding, Mr Fairlie welcomed the contributions and reiterated that the Scottish Government is not advocating for fewer air services. Rather, there is a clear need for a much deeper discussion on the issues aired. In response to the environmental points raised, Mr Fairlie confirmed that there will be a ministerial meeting with stakeholders on the infrastructure needed for hydrogen and electric flight in Scotland.

Islands Strategic Group

Minister Fairlie invited Fiona Campbell to give a presentation on a potential cruise ship levy. 

Potential cruise ship levy

Fiona Campbell provided background information and an overview of the work undertaken so far and advised that a consultation on a potential cruise ship levy has recently launched which she encouraged all parties to complete. She noted that they are seeking feedback on all aspects of a potential levy and that they are aware views are mixed. She stated that Ministers have no preferred options at this stage, and the consultation feedback will be used to inform further advice. 

Councillor Emma MacDonald requested clarification on the purpose of the levy and advised that Shetland has less issues with the impact of cruise ships and visitors than other areas. She queried why one is needed and is it to provide an income or to limit the level of cruise tourism.

Councillor Ken Gowan noted that Highland Council would likely be supportive of a potential cruise ship levy. He feels that a flat rate across Scotland would be more welcome and that coordination between local authorities must be considered. He also noted that the definition of a cruise ship compared to other vessels must be decided, as well as how the levy would be implemented. The name was also important.

Councillor Heather Woodbridge stated that Orkney would welcome the exploration of a cruise ship levy in principle. The levy should be as open as possible and not necessarily a fixed rate across Scotland, though she acknowledged Councillor Gowan’s point. She commented that there is an opportunity for local authorities to not only work together, but also to work with northern neighbours such as Norway where the cruise liners also visit. Her main query is with regards to implementation as Orkney Island Council has a Harbour Authority within its own corporate structures, while other areas follow different approaches. It would be useful to track the flow of footfall from cruise ships and the resulting pressure on communities as ships need to declare their passenger numbers.

Oliver Reid commented that there may be a desire for a differential rate in locations within Orkney. He stated that cruise ships should be shouldering the payment of the levy to support infrastructure as their passengers use that infrastructure. He noted he is not concerned about variations in rate, as visitors who want to visit Orkney will still visit. The simplest way would be to have cruise ships pay a per-passenger fee as ships already have to declare the numbers on board to the port authority on arrival. He noted that areas throughout Scotland are unique destinations, and we need to have confidence in Scotland as a “product”. With regards to the name he suggests a Day Visitor Levy instead of a Cruise Ship Levy as this would be more flexible. He offered Orkney Islands Council’s assistance with progressing and refining work on the potential levy. 

Minister Fairlie noted that he had not heard concerns from attendees about visitors being put off, which he has heard from other areas.

Oliver Reid stated that he does not think people will be deterred from visiting, given the uniqueness of what Scotland offers with its world class destinations. He says that other countries which have introduced a cruise ship levy have not experienced any substantial decline in numbers and he does not see it impacting international tourism. He noted that tourism is a baseline of island income and that visitors can provide revenue to ensure that infrastructure is up to the standard they expect. 

Minister Fairlie welcomed these points.

Councillor Emma MacDonald commented that she has worked with the Lerwick Port Authority, who would be administering the levy, and they have expressed concerns. She stated that Shetland does not have day visitors, so they do not have over-tourism. She noted that Iceland has seen a reduction in cruise ship visitors following the introduction of a similar levy which has concerned Shetland Islands Council.

Maggie Sandison echoed Councillor MacDonald’s comments. She added that the Port Authority considers the cruise ships as part of their multi-functional port which invests into the fishing industry, port, and piers. If they did not have this income, this would be an issue.

Councillor Ken Gowans stated that during the recent Visitor Levy consultation Highland Council did not see evidence that people would not visit due to the introduction of a levy and does not foresee any issues with a potential cruise ship levy. On the question of where to spend, Councillor Gowans said that funds should be spent strategically in the local authority area it is raised as this would also enable any funds to be dispersed to where visitors go and supplement other areas' offers and improve the wider tourist experience .

Councillor Paul Steele said that the detail of a levy is very important. He suggested that a Point of Entry Levy rather than a Cruise Ship Levy would be welcomed. He says that a lot of engagement would be required in the Western Isles as there are concerns particularly in South Uist.

Fiona Campbell thanked attendees for their feedback and reiterated her encouragement to complete the consultation.

National Islands Plan

Francesco Bertoldi gave a presentation outlining progress with the development of the new National Islands Plan. He provided background information regarding the consultation results following the review of the current National Islands Plan, as well as more recent feedback from local authorities, island communities and partners.

Minister Fairlie asked attendees if the decline in perceptions of island life, highlighted by the results of the Scottish Islands Survey 2023, are a fair representation of how islanders feel.

Councillor Emma MacDonald commented that the cost of living on islands is an increasing challenge and inequalities are becoming more of an issue in Shetland. She noted the growing pressure on households is having a negative impact on people’s lives and wellbeing, with the cost of living on islands 20-60 % higher compared to mainland Scotland. She said the local authority want Shetland residents to thrive and live well and economic opportunities such as those provided by renewable energy projects must bring material benefits to local communities.

Maggie Sandison added that it is important to balance the cost of living with the quality of public services provided in Shetland. She stated that it is becoming harder to keep islands as great places to live. She thanked the Islands Team for ensuring the feedback provided by Shetland Islands Council on the occasion of the public consultation on the current Plan is reflected in the direction of travel for the new document.

Councillor Paul Steele stated that harder island life is a reality not just a perception. Local authorities are sometimes delivering the level of services they can afford and not what local communities actually need. He commented that the new National Islands Plan needs to set out what islands need. He said that islands face additional costs all the time and used the example of haulage with fuel and diesel costs which are much higher than the mainland. He explained that costs vary across the islands themselves, and the cost of building is very high on islands. He felt that connectivity is the key and noted municipal waste is another issue as it needs to be shipped to the mainland. He also noted that Island Communities Impact Assessments are not working as well as they should.

Fergus Murray welcomed the direction of the new National Islands Plan. He stated that costs have gone up disproportionately on the Argyll islands, but the income of islanders hasn’t kept up. He noted that there is also an aging population with different needs which is increasing pressures on public services. There are also regulations being imposed on islands which have not been properly “island proofed” such as the example of waste which Councillor Steele mentioned. 

Councillor Heather Woodbridge was interested in the scope of the new National Islands Plan and its relation to UK Government policy and asked how the Islands Strategic Group can work together on key issues such as fuel poverty.

Francesco Bertoldi thanked Heather for her comments and explained that the Plan will be firmly focused on devolved matters. He noted the suggestion of the Islands Strategic Group proposing ideas which could be put to the UK Government when reserved issues are involved. He also indicated the twice-yearly Islands Strategic Group could play a more formal and structured role in reviewing and monitoring how the National Islands Plan is performing. 

Minister Fairlie asked if the issues around municipal waste need a requirement to be exempt from legislation or is it to find different solutions to the requirements.

Fergus Murray suggested that there is a need to find different, flexible solutions which work for island communities. 

Oliver Reid said that there is an opportunity for offshore and onshore wind to create wealth and an honest conversation is needed about the distribution of community benefits and the Crown Estate. 

Francesco Bertoldi noted that discussions are underway with community benefit colleagues among others. He also commented that there is consideration of a review of Island Communities Impact Assessments as part of the new National Islands Plan. He concluded by sharing that Islands Team colleagues have been and will be visiting island communities to continue gathering feedback. 

Any other business

No other business was raised.

 

Summary of actions

• Transport to health presentation to be shared with attendees
• Potential cruise ship levy presentation and consultation link to be shared with attendees
• National Islands Plan presentation to be shared with attendees