In the “Empowering Scotland’s Island Communities” prospectus, which was published on 16 June, we recognised that the provision of transport services should not place a disproportionate financial burden on any council, particularly with reference to revenue support for ferry services and ferry replacement costs for internal ferry services.

We have since agreed to a programme of work with the local authorities involved—Orkney Islands Council and Shetland Islands Council—and with the regional transport partnerships in order to consider the issue further. We are taking forward that work in partnership with those local authorities.