Funding secured for internal ferry service

The Scottish Governments says it will honour its commitment to fully fund the costs of running Orkney’s inter-island ferry fleet.

This afternoon, deputy first minister John Swinney released his statement on stage three of the budget setting process for the next financial year.

When the first draft of the budget was announced in December, Orkney’s MSP, Liam McArthur, said that it would amount to a real terms cut for ferry funding, given the rising costs of fuel and maintenance. Now, the funding commitment has been secured.

Mr Swinney said: “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.”

Naming Orkney and Shetland as worst affected, he said that the government committed a few years ago to fully fund those services and “that is a commitment we will honour.”

Mr Swinney added: “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.”