Orkney Ferry Funding

10th October 2024

Orkney Islands Council has secured £3 million Scottish Government funding for plans to replace its internal ferry fleet.

The funding will help the local authority develop a planned pilot for two electric ferries and its business case for a replacement internal ferry fleet.

The council plans to introduce eight new vessels to link communities and boost tourism. This includes three large ferries to serve the islands of Westray, Stronsay, Sanday and Eday with plans being drawn up for all of Orkney's air and ferry-linked island communities.

The Orkney funding is on top of an additional £42 million provided in this year's budget to support local authority ferry services across Scotland.

Finance Secretary Shona Robison - who chairs the Orkney Internal Ferry Replacement Task Force – said, "This funding will enable Orkney Islands Council to take forward its business case to replace its internal ferry fleet. It will also help bring forward their pilot of electric ferries and I am grateful to Orkney Islands Council for its constructive engagement through this process.

"The Scottish Government is committed to working alongside Scotland’s island communities, to empower them to thrive. Since 2021-22 our Islands Programme has distributed more than £12 million to support 61 critical infrastructure projects on 50 islands.

“We are also collaborating with islanders, local authorities and delivery partners to ensure that the new National islands Plan – which we expect to publish next year – meets their needs and supports their ambitions."

Orkney Islands Council Leader Heather Woodbridge said, "The engagement with the Scottish Government through the task force has been extremely constructive – and we very much welcome this funding announcement which puts us on a sure footing as we progress our work at pace on the final business case.

“This funding package is the first financial commitment in the collaborative approach that is being taken to replace Orkney's ageing internal ferry fleet, with discussions continuing on the delivery of the next tranche of business case funding and the shape of the financial model that will allow us to provide a modern ferry fleet that our island communities need and deserve.”

In May, First Minister John Swinney announced a £5 million package of support for island communities ahead of a new National Islands Plan publishing next year.

The new Programme for Government commits the Scottish Government to the continuation of the Islands Cost Crisis Emergency Fund worth £1 million in 2024-25 and with an even stronger focus on child poverty. The fund helps local authorities support those islanders most affected by cost-of-living pressures.