Local Authority Ferries - Orkney Ferry Replacement Task Force Meeting - 18 April 2024
Attendees
- Shona Robison MSP – Deputy First Minister and Cabinet Secretary for Finance
- Fiona Hyslop MSP – Cabinet Secretary for Transport
- Cllr Heather Woodbridge – Leader of OIC
- Cllr Sandy Cowie – Depute Leader of OIC
- Oliver Reid - Chief Executive of OIC
- Gareth Waterson - Director of Enterprise & Sustainable Regeneration, OIC
- Roddy Macdonald - TS Director of Ferries
- Official - Finance Team Leader
- Official - SG Finance Business Partner
- Official - TS Portfolio Finance Lead
- Official - TS Ferries Policy
- Official - TS Ferries Policy
- Official - TS Ferries Policy (note taker)
- Official – DFM PO
Key Points
- Introductions were made, DFM offered congratulations to Cllr Woodbridge and acknowledged Cllr Stockan’s good work on this matter. She noted that Jim Fairlie MSP, Minister for Agriculture and Connectivity, will be taking over for Fiona Hyslop and thanked Ms Hyslop for her work on the TF so far. Ms Hyslop will keep a close interest as Cab Sec for Transport.
- Oliver Reid delivered OIC’s presentation on its plans for fleet replacement and the importance of inter-island connectivity. OIC also confirmed a positive working relationship with CMAL.
- Following discussion on likely spend in 2024-25, The DFM noted the intention, subject to internal clearance processes, to allocate funding of up to £3m to support the next phase of the Business Case development.
- Discussion regarding the need for more progress on a funding model, OIC is open to flexibility but would like more information about 25-26 budget in order to keep the Business Case development at pace.
- DFM confirmed that this funding is for 2024-25 and future financial years will be considered at that time. She also noted the importance of this joint venture and the need to continue close communication with OIC.
- Discussion around allocation of £15,829,000 for operating costs in the midst of a challenging budget settlement. DFM confirmed that any possibility of uplift throughout the financial year is highly unlikely. All local authorities are receiving the same funding as 2023-24.
- DFM also noted that additional support has also been provided via ICCEF (Island Cost Crisis Emergency Fund) and 100% hospitality relief for the Orkney council area.
- Gareth Waterson noted potential concerns around industrial relations regarding pay. The Cabinet Secretary noted she meets regularly with maritime unions and the need to be consistent across the public sector.
Actions
SG to confirm business case funding 2024-25
Arrange next meeting after summer recess.