McArthur Presses Ministers on OIC Under-Funding

Finance Secretary, John Swinney was pressed yesterday, Tuesday, to outline the steps being taken by Scottish Ministers to address the relative underfunding of Orkney Islands Council compared to its counterparts in Shetland and the Western Isles.

Mr Swinney was responding to questions raised by Orkney MSP Liam McArthur, in light of threats by various Councils to withdraw from the local government organisation, COSLA in protest at the way in which funding for Councils is agreed.

Mr McArthur said: “There has been concern over many years at the relative underfunding of Orkney compared to Shetland and the Western Isles. Despite repeatedly raising this issue with Ministers over the years, progress to date has been limited. In large part, this impasse has been the result of unwillingness amongst the larger Councils elsewhere in Scotland to agree to look again at the funding formula.  Now that there appears to be open rebellion within COSLA over this issue, it is important that Ministers do not lose sight of Orkney’s long-standing case for change.

He added: “Even if a review of the formula proves impossible, however, other ways of addressing the problems created by Orkney’s underfunding must be explored.  One way of doing this would be through funding renewal of Orkney’s internal ferry fleet. Again, progress in this area has been painfully slow, though Mr Swinney confirmed that discussions are on-going.  Time is of the essence, however, as reaching agreement with Scottish Ministers after the referendum may become increasingly more difficult.”