Fair Isle Ferry funding secured

The Good Shepherd IV, which is due to be replaced following the funding being approved.

Funding for the Fair Isle Ferry has been secured, following the uncertainty of last week’s budget.

Questions over the future of the project were raised after the Chancellor Rachel Reeves left out funding for Levelling Up schemes in her announcement to MPs in Westminster.

But the Scottish Secretary for Scotland Ian Murray confirmed in a letter to all local authorities about their funding for local growth initiatives.

Mr Murray said the UK government will be investing nearly £1.4 billion in dozens of important local growth projects across Scotland over the next 10 years – including almost £27 million for the Fair Isle Ferry development.

He said this would ensure economic growth is seen the length and breadth of the country.  

This was a “historic budget” for Scotland, Mr Murray said, adding it would “herald an era of growth.”

“Over the summer I wrote to every local authority to set out our commitment to building strong and trusted relationships so that together we can deliver the change our country needs,” he said.

“I am pleased to be able to write to them again to confirm their funding allocations.”

In recent weeks, the SIC said it was continuing its work on the project in the hope that a funding decision would soon be available. 

The council recently completed a tender process for the new vessel, which is hoped to replace the aged Good Shepherd IV.

According to the notice, the new, larger 24-metre load-on, load-off vessel would have the capacity for 12 people at an estimated cost of £5.7 million. 

Overall the project is expected to cost £40-45 million, with the bulk of the spend going towards harbour works in Grutness and New Haven, which are necessary to facilitate the new, larger vessel.