Shetland Ferry Replacement - Task Force Meeting - 30 April 2025

Attendees

• Shona Robison MSP – Cabinet Secretary for Finance and Local Government
• Jim Fairlie MSP – Minister for Agriculture and Connectivity
• Cllr. Emma Macdonald – Leader of SIC 
• Maggie Sandison - Chief Executive of SIC 
• Official – TS Ferries Policy
• Official – TS Ferries Policy (note taker)
• Official – PS Cabinet Secretary
• Official – PS Minister

Key Points 

1. It was agreed that future meetings should generally be twice yearly via Teams. An invitation for Mr Fairlie to visit Shetland was offered and accepted for the summer of 2025.

2. Cllr. Macdonald thanked Ms Robison for the funding award recently announced in the LG Settlement for Support for Inter Island Connectivity, now part of the General Grant. She added that it was important this funding remained allocated for ferries and other inter-island solutions. Ms Robison confirmed that SG officials would still seek annual estimates from LAs for the costs of operating inter island ferries, to allow this to be considered in the annual budgeting process.

3. Cllr. Macdonald confirmed that the capital allocation of £10m in 2025-26 would be used for a new vessel and that a business case is being progressed. Naval architects would be looking at 2 designs for a medium (Fivla sized) and a larger (Hendra) vessel, also incorporating costs for harbour improvements. A paper would be submitted to the Council after the summer recess for consideration. Mr Fairlie asked to be kept up to date on progress.

4. The Inter Island Connectivity Strategy was progressing well and had generated over 1,000 responses to the consultation exercise. Next steps were for the Council to develop Transport Planning Objectives and to consider the list of possible options, including tunnels, with further consultation to follow. This will allow the best solution for each route to be identified and investments to be sequenced. Funding models for future investment and tunnels were also being considered by the Council. Ms Robison noted that Scotland is considered a “stable opportunity” for investment and that SG could help in advising on opportunities for private investment. Officials to advise the Deputy First Minister, who was leading on national infrastructure projects, of Shetland’s plans for future investment.

5. Ms Sandison reported that the new Fair Isle vessel would be delivered around September 2026. Dredging and port and harbour improvements had begun and should be completed by December 2025. She added that infrastructure costs had increased substantially and the Council was meeting those costs with borrowing.

6. The recent announcement of free ferry travel for under 22s was very welcomed and that the Shetland’s Young People’s Forum – Youth Voice - felt that their opinions had been heard.

7. It was agreed that the Task Force would meet twice a year and Ms Robison added that officials would keep in touch on progress as required.

Action

1. PO / SIC to agree dates for Mr Fairlie to visit Shetland.

2. SIC to keep Mr Fairlie up to date on progress with business case for new vessel.

3. SG officials to advise DFM of SIC’s major infrastructure investment plans.

4. Next Task Force mtg – with Mr Fairlie during summer recess visit, if possible