Ms Jamieson will tell members of the Local Government and Regeneration Committee that proposals to end Shetland’s Housing Support Grant (HSG) will spell disaster for 1800 tenants.  As a result of a £41million historic debt linked to the oil boom in the 70s the Shetland residents renting from the SIC could see their weekly rent increased by £8.13 (13%).  With rents currently the second highest in Scotland, this could push many households to breaking point.

Ms Jamieson said, “The council has reduced the housing debt from £60million to £40million over the last fifteen years but this has been assisted by the application of the HSG.  Without some assistance, either transitional or on-going, we cannot continue to manage the debt downwards and it is the tenants who will bear the brunt.  We also have 800-1000 applications for housing on our waiting list and the additional pressures, costs and constraints of operating in an island community.  At the very least we need full details for transitional arrangements while the HSG is phased out and the promised debt commutation is provided.”

Responding to a question posed by Shetland MSP Tavish Scott, Housing Minister Keith Brown stated, “I will be contacting the Leader of the Council to discuss the issue of future Housing Revenue Account funding once he or she has been appointed.”  He confirmed that, as various funding options were being assessed, HSG instalments will continue to be paid to the SIC.

Tavish Scott MSP said of the situation, “The SIC’s evidence to the Committee today is an important opportunity to remind Parliament about why the housing debt exists.  The Scottish Government must help with any transition to a new funding system.  The SIC need reassurances and so do their tenants; with household budgets already at their limits, pay freezes and fuel increases we must do what we can to avoid extortionate rent increases. Without that help the rent figures are frightening.”

On 14 May Tavish Scott MSP had the pleasure of showing some students from Sandwick School around the Parliament before they participated in a quiz held in the Debating Chamber.  Tavish enjoys meeting Shetland school groups whenever possible, either in the Parliament or his constituency.  Pictures below:

Inside Committee Room 2 Tavish discusses how evidence is taken

The Shetland MSP listens to the children as they discuss their Europe Quiz

The Sandwick School group pose with Tavish before their quiz performance

Tavish Scott MSP discusses some of the architecture that can be seen from his office window at the Parliament

The MSP for Shetland answers some questions in the Garden Lobby

The MSP tells the children about the view from Committee Room 2

Tavish tells the children what happens in the Debating Chamber

News of the legal action by Streamline has prompted many businesses and constituents in the Northern Isles to question what the implications are for transition of the new ferry contract from Northlink to Serco.   In light of this uncertainty and concern, the Isles’ MSP have emailed Keith Brown seeking reassurances.

Tavish Scott commented, “Obviously our constituents are apprehensive about what this challenge might mean for the move to a new operator, given the exceptionally tight timetable we already expected for the transition.  We need to know what contingency plans are in place.”

Orkney MSP, Liam McArthur added, “Tavish and I have been raising concerns since last summer about the timetable for reaching decisions.  We are now urging the Scottish Government to make a public statement setting out what they expect to happen next.  If fears being expressed locally are to be allayed, it is important that Ministers are clear and upfront about what they expect to happen.”

Mr Scott said, “Liam McArthur and I have highlighted what we believe are the different and distinct perspectives that our constituencies have towards any future constitutional change.

“We advocate more powers and responsibilities for the Northern Isles. Five years of nationalism in Edinburgh has been five years of centralisation. Control of colleges, police and fire are all being removed from the Islands. The Nationalist Government now promote laws that will push up tenants rents in Shetland and could cost jobs and investment in the salmon farming industry. 

“To top all this there is now growing uncertainty over the future contract for our lifeline ferry services. It is not hard to conclude that the Islands themselves would be better placed to make such decisions.”

Liam McArthur commented, “As is evident from the very poor showing of SNP candidates in the recent Council elections, support within the Northern Isles for separation from the rest of the UK remains low.  Nevertheless, there is an appetite in both Orkney and Shetland for looking at improving the current constitutional arrangements so that they better reflect and respond to the needs and aspirations of islanders.

“In response to what is seen as an alarming tendency by the current Scottish Government to wish to centralise decision-making and place more and more control in the hands of Ministers, there is increasing support within Orkney and Shetland for measures that will redress that balance.” 

Mr Scott added, “It is certainly the case that many Shetlanders feel a Norse connection rather than a Scottish one.  These sentiments are sure to be echoed on Wednesday and Thursday when we welcome the Norwegian Prime Minister to the Islands.  Our cultures remain closely linked and I think the visit will reignite discussions about Shetland’s constitutional future amongst the islanders.”

Following today’s meeting, Mr McArthur and Mr Scott have written to the Transport Minister seeking assurances about the future of freight services.  This is in light of growing concerns in both Orkney and Shetland that a single freight vessel may be used to deliver the service to both islands.

Commenting on the meeting, Tavish Scott said:

“Freight exports of fresh seafood, livestock and other goods are the essential part of the Northern Isles ferry contract. Shetland businesses and the local NFU have been in touch since Friday expressing alarm over any cut to the number of ships and the timetable for the service. Serco are constrained in what they can say at this stage.   However, SNP Transport Minister, Keith Brown must now allay fears in the Northern Isles that the new contract will not see the loss of a freight ship. 

“It is clear from all those I have spoken to over recent days that this would constitute a backward step in the quality of the service.  That would be unacceptable.

“On the general service this was a useful early meeting with Serco management.  While Liam and I were able to press the case on behalf of our constituents on jobs and other key issues, the most important matter to resolve is on freight. That is why today we are seeking immediate clarification from Ministers on what they have agreed to. We have also pressed Serco to recognise the quality of Northlink’s service to the Northern Isles and work to improve on that.”

Liam McArthur added:

“It was helpful to meet with Serco face to face, but we have agreed to get together again next week, when a more detailed assessment of the new contract will be possible.

“Meantime, we were able to raise a number of concerns and questions that have emerged since the announcement was made last Friday.  As well as the serious fears regarding the future of the freight service, a subject I discussed with the local livestock sector in Orkney earlier this week, we highlighted key issues such as timetabling, fare structures, local employment and sourcing.

“On timetabling and pricing, Serco assured us that there would be no changes in the short term, as the company seeks to make a smooth transition.  This will include retention of the Northlink name, website and contact numbers.  However, Serco clearly have plans to look at introducing changes over the medium to long term and we stressed the need to do this only in close consultation with key stakeholders in the islands.

“The importance of local employment and local sourcing were also issues we raised, and again Serco sought to reassure us about their plans”.

“I would like to thank Northlink and all their staff for the hard work and commitment they have shown to the Islands.”

Tavish Scott wants a moratorium on penalties until there is agreement between farmers and the Department on the scale of maps used. Tavish Scott said,

“Crofters should not be unfairly penalised because the Government Agriculture Department use a more detailed map to assess their croftland. So it was useful to meet the Minister after Question Time in Parliament today to make that case on behalf of Shetland crofters who face very serious financial penalties.

“I welcome the Government working to find a solution to this and the efforts of the NFU. But until there is a fairer system with agreed maps, there should be a moratorium on any penalties on individual Crofters. I will continue to make this case to the Scottish Government.”

He asked Ministers to work with Shetland Islands Council, the UK Government and the oil and gas industry on a vessel that can do a variety of work but provide essential ocean going towing capability in the event of an emergency.

Tavish Scott said, “Many across Shetland remember the Braer disaster all too well. The subsequent Donaldson Report advocated the need for such tugs in the Fair Isle channel and surrounding waters. But Donaldson did not say write a blank cheque to the international salvage industry. So a contract which is a bad deal for the taxpayer needs to be redrawn.

“Alistair Carmichael has made sure the service will continue in Shetland and Orkney’s coastal waters. I would hope that the Scottish Government would play a constructive role in what should be a shared objective for all. I was encouraged that the Minister agreed to this work continuing and hope that a new contract is in place as quickly as possible.”

As the future of the Housing Support Grant (HSG) hangs in the balance, promises to write-off the colossal debt have repeatedly come to nothing. 

Speaking after today’s meeting Tavish Scott said, “League tables show that Shetland tenants pay the second highest rent in Scotland – there must be a stop to further increases.  The Scottish Government are considering a new Bill which will end the HSG but this is just not feasible until the debt issues have been addressed.  The SIC still has no details of what a transitional period may look like.  The debt needs to be gradually reduced and a plan to phase out HSG over a 3 – 5 year period is what the Housing Department is hoping for and I support them and believe this is a reasonable time-frame. 

“Promises going back to the 1990s have not been forthcoming and so the debt burden has continued.  I have now put in a Parliamentary Question to ask the Housing Minister when Shetland can realistically expect a clear outline of the transitional arrangements given that he has had all the information he needs to make this decision since February.”

SCOTTISH PARLIAMENT

MOTION

S4M-02746 Tavish Scott () (Scottish Liberal Democrats):

That the Parliament congratulates 14-year-old Laura Smith from Cunningsburgh on being named Shetland’s Young Fiddler of 2012, with Fraser Tait of Sandwick runner-up and Callum Watt from Walls and Sophie Moar from Cunningsburgh in joint third place; recognises the work of the Shetland Folk Society in organising the 31st Young Fiddler of the Year competition, and notes that the finals night was the culmination of two days of music from 92 youngsters from all over Shetland performing for a full audience and adjudicators Gemma Donald, Maurice Henderson and Aly Bain.

The Motion will now gather support from other MSPs over the coming days.  Tavish has always enjoyed Shetland fiddle music and is glad to hear that so many youngsters participated in the event.