Call for Ferry Compensation Fund as Island Businesses Face Losses

Labour MP Torcuil Crichton has called for a new ferry compensation fund to support businesses in the Western Isles following continued disruption to services.

The Na h Eileanan an Iar MP said ongoing issues with CalMac ferries are having a serious impact on local economies, particularly as the tourism season begins.

He is urging the Scottish Government to reopen the Business Resilience Fund to help businesses cope with financial losses linked to cancellations and breakdowns.

“The ferry crisis is continuing and we need ongoing support.

“Island businesses are losing tens of thousands in income thanks to the SNP’s ferry mess.

“Hoteliers, distilleries and food companies are facing a disastrous start to the season which will have a knock-on effect on their staffing and cash flow right through the summer.

“This is the cost of SNP incompetence.”

He said maintaining confidence in island tourism remains important, but warned businesses must be supported to survive the current pressures.

“It’s important to keep the message going that the islands are open to tourism, but there have to be businesses in good shape to welcome visitors.

“I am calling on the Scottish Government to immediately re open the compensation fund to make sure island businesses can make it through this crisis.”

A previous £4.4 million Business Resilience Fund was introduced last year following widespread ferry disruption affecting South Uist in 2023.

The scheme, administered by Highlands and Islands Enterprise, was later extended to include Barra, Vatersay and other islands, though concerns were raised about how easy it was to access.

The fund closed in January, prompting renewed calls for support as disruption continues.

“We had to fight to extend this fund to other islands and our islands require further support now.

“We’ve been forced to live with the SNP’s carelessness with our island lifelines for far too long.

“Enough is enough.

“We have all been impacted by this neglect every family, every business from small retailers and caterers to major hotel chains fuel, food, and livelihoods have all been hit.

“This ongoing disruption and disregard cannot continue.

“Compensation must be delivered, and it must be delivered fast.”

The call adds to growing pressure on the Scottish Government to address ferry reliability and its impact on island communities.

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Ronnie MacDonald
Ronnie MacDonaldhttps://thehighlandtimes.com/
Ronnie MacDonald is a contributor to The Highland Times, writing on culture, sport, and community issues. With a focus on voices from across the Highlands and Islands, his work highlights the people and places that shape the region today.
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