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Islands Deal: Why spend £100m on innovation projects and not on further help with islanders’ heating bills?

Islands Deal
Lord Offord (second from left) and Ivan McKee MSP (second to right) with the leaders of the three islands councils. Image: Orkney Islands Council

This morning saw the signing of an Islands Deal that commits the governments in Holyrood and Westminster to £50m in investment for innovative and economy-boosting projects in Scotland’s three islands groups.

While this is a substantial investment, it’s also the beginning of a decade-long process during which £293m in match funding will also have to be found to take those projects to the finish line.

If all goes well the result, alongside £393m of investment in the isles, would be 1,300 jobs.

Lord Malcolm Offord and Ivan McKee MSP met with the leaders of the councils from the three islands groups for the signing in Kirkwall, Orkney, this morning.

Shortly after, the two representatives, from Westminster and Holyrood respectively, spoke about why such an investment is important at a time when people are more concerned with their heating bills than vertical farm projects or a space innovation campus.

A vital investment in islands’ futures

Mr McKee said his government is supporting people through the cost of living crisis.

He gave examples in the billions spent on business support and the Scottish child payment.

He said: “This fund is spent over 10 years, so it’s not something that’s going to be immediately spent today. It’s going to be released as the projects come to fruition over a period of time.

“But it’s really important that we have an eye on the future.

“At the end of the day, many opportunities for well-paid jobs are reliant on securing positions in emerging sectors

“We’re making sure the islands are well-positioned for that.

“Attracting other investment in to support those opportunities is really important.

“I think we have that balance – between support now and for the future – right.

“We’re doing what we need to do now, but we’ve also got an eye on the future.”

Also asked why it’s important that this money goes towards innovation, instead of helping people with their bills, Lord Offord said there has to be recognition of what is needed now while setting the groundwork for as sustainable future.

Islands Deal investment offers road to prosperity

He said: “The only way for the islands to be sustainable long term is to increase the prosperity here and increase the quality of the jobs.

“That will allow the next generation of Orcadians to have better jobs than previous generations.

“There’s a real opportunity with Orkney being in the centre of the de-carbonisation agenda

“With the wind, the wave, the water, fisheries, agriculture there’s a really exciting future.

“We have to distinguish between the very obvious need of people right now and for the future.

“The government has put in place measures around that with the energy price guarantee.

“What we need to do to make the future brighter for the islands is to invest long-term.

“That’s what this Islands Deal is all about.”

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