£3m and counting: Uist pays the price of CalMac service failures

The pressure group set up to lobby for improved ferry reliability has published a second economic impact assessment of the financial implications of disrupted services.

The South Uist Business Impact Group commissioned the report from Stirling University based MKA Economics, with support form Stòras Uibhist.

The new Economic Assessment looks at the period 30th March to 30th June this year, tracking the financial losses associated with ferry cancellations and disruptions during that critical three month period.

The study took the form of an online survey emailed to 307 local companies from Berneray to Eriskay, with just under half returning a response. Of those responding, all confirmed they were aware of the ferry service being out of action, and 90% stated that their business had suffered as a direct result of that service loss. The report says that the figures confirm ‘the critical importance of the ferry service, and the significant detrimental effects of its inactivity on local businesses’.

The report sets out the startling losses endured by Uist businesses as a result of ferry failures:

• £2.6million in lost turnover
• 1,005 person days lost
• £80,850 of additional cost incurred

Taken together with the losses associated with ferry failures in 2022, the report concludes a demonstrable total loss in the region of £3m.

Almost all those responding concluded that a Plan B must be in place to ensure their businesses did not suffer significant losses and business threats as result of any future ferry outage. Almost three-quarters felt it was a ‘very good idea’ that multiple, smaller ferries were in operation to ensure no loss of service in the future.

The report concludes with a call to action:

“Consideration of how businesses should be recompensed and supported through grant aid or other financial measures to alleviate the losses to their business should be brought forward. This could be direct to business, a fund for businesses, or money targeted towards improved ferry service(s).”

Last month a Freedom of Information request submitted by Scottish Labour revealed that non-weather related CalMac cancellations had more than trebled, with over 40,000 cancellations since 2018.