How will the Islands recover from economic Armageddon?

And that figure is just the tip of the iceberg.

Last week local politicians went on the record to voice their concerns about the Islands’ future once lockdown restrictions have been lifted.

To recover from the damage inflicted by the lockdown - described as “economic Armageddon” - they talked of a need for “intervention”, “building local infrastructure” and of “stimulating the economy in rural areas”.

Many lives have sadly been lost due to this pandemic and the impact on livelihoods and on people’s well-being is next on the casualty list.

However, plans are being established for a recovery out of the crisis.

ECONOMY RECOVERY ADVISORY GROUP

In mid-April the Scottish Government announced the set up of an ‘Economic Recovery Advisory Group’.

This group is to engage, analyse and listen to those being affected by the crisis and to bring forward solutions to enable the economy to recover quickly.

It is expected that the group will present its proposals to the Scottish Government by the end of June with the aim being to build a “wellbeing economy” and “to ensure a green recovery”.

It is expected that the fragile economy of the Islands, which is heavily dependent on areas such as tourism and the public sector, will need more help than most.

But with the Government already recognising that public sector spending on infrastructure accounts for around 50% of all construction activity across Scotland, perhaps new infrastructure investment in the Islands will play a vital role in how we reset, restart and recover the local economy.

COMHAIRLE ALSO HOPES GREEN RECOVERY WILL AID THE ISLANDS

This week the Gazette decided to ask some local organisations if there was any preparatory work being done for the challenge of rebooting the local economy when we get back to some kind of normality.

And a green recovery - in line with the Government’s agenda - is certainly the hope of Comhairle nan Eilean Siar.

The local authority believes that the approval of the Western Isles energy Transmission Link will unlock £2 billion of investment in the region.

The power cable across the Minch would transfer energy created from wind turbines in the Islands to the mainland electricity grid, but the project has yet to win backing from the UK Energy Regulator, despite the fact that Alok Sharma, the UK Secretary of State for Business, has said that Renewable Energy projects will be a key part of ensuring a green and resilient economic recovery.

And with unemployment set to rise post-pandemic and families facing unimaginable economic challenges, the local authority warns that now is not the time to be stalling on £2 billion of private investment for the sake of the few pence on electricity bills it will take to deliver the Western Isles Transmission Link.

NO AUSTERITY WARNS MSP

Western Isles MSP Alasdair Allan said of a recovery plan: “Scotland, the UK and most of the world are facing a severe economic crisis the likes of which we have never seen for decades.

“Governments will have to look at a wide range of measures to aid recovery.

“For example, I think that if employers were encouraged to keep homeworking measures and adopt more flexible working practises it would make the islands an even more attractive place to live and help to stimulate economic activity here. There will be any number of things that fall into this category.

“Right now, there are serious gaps in things like the Self-Employment Income Support Scheme and furlough scheme which have left millions of people without adequate support.

“The UK Government needs to seriously look at introducing a guaranteed minimum income scheme and strengthened welfare protections to ensure no-one is left behind.

“The most important thing is that a return to austerity is categorically ruled out and that the UK Government instead commits to a programme of investment.

“The UK Government also has to push back the Brexit negotiation deadline as businesses here simply do not have the capacity to prepare for a hard Brexit when they are fighting to survive the impact of the COVID-19 crisis.”

TIG DRAWS UP £1M PLAN

Tighean Innse Gall (TIG) is one local body which is already putting its thoughts about its part in the recovery into practice.

The support and advice agency, told the Gazette: “TIG is a community benefit society and is run primarily for the benefit of the community at large.

“This means that we have an overarching community purpose that aims to reach and support every home, village and island of the Outer Hebrides.

“We have worked hard behind the scenes during lock down, with key staff retained for drawing up plans to deliver immediate economic benefits in the community.

“We have lined up an immediate scheme of works – totalling £1 million – which safeguards or generates 50 jobs in the community across our islands.

“We are also exploring with Scottish Government the idea for vulnerable folk who can’t stay in their homes while we undertake improvement works, to go to local tourist accommodation providers to provide further much needed community benefit.

“In addition, we have established a registered supporters list, to get messages out quickly on the new energy efficiency programme with measures available for the first time which we will install through programmes we deliver on behalf of the Comhairle or Integrated Joint Board.

“Joining this will ensure people get up-to-date information on all TIG activities and can pass the word on as community champions to family and friends so that more can quickly benefit.

“To join, or find out how TIG can help you post lockdown, contact [email protected] 07741652612.”

HIE TALKS OF ISLANDS’ GREAT TRACK RECORD

Highlands and Islands Enterprise (HIE), the economic and community development agency for the Highlands and Islands of Scotland, has been a key point of contact for local businesses needing support during the pandemic.

Rachel Mackenzie, area manager at HIE, said: “Over the past few months we have switched to home working and reshaped our priorities to help meet the changing needs of businesses and communities.

“We have been focusing on the distribution of Scottish Government support such as the Creative, Tourism and Hospitality Enterprises Hardship Fund, the Pivotal Enterprise Resilience Fund and the Supporting Communities Fund.

“The communities fund alone has so far bought more than £280,000 to the Outer Hebrides. All this will help strengthen resilience, which will be crucial to recovery.

“Looking to the future, we and our partners have been prioritising resources and gathering regional intelligence that will help inform future policy and support mechanisms to maximise our effectiveness.

“As we emerge from the lockdown, the local, regional, national and global economies will be different.

“We must make the most of new opportunities. For example, there is clear potential for the islands to benefit significantly from the country’s target of net zero carbon emissions by 2045.

“The age-old principles of research, collaboration and innovation will be key to competitiveness and a successful recovery.

“The islands have a great track record in these principles and I’m confident we will continue to play a key role in Scotland’s recovery.

“The new scenario has demonstrated that more jobs can be carried out from home remotely, which provides new opportunities for attracting people to the Outer Hebrides as well as retaining its population.”