It’s clear from recent events that the people of Uist have the ear of the Scottish Government. Both the Minister for Transport, Jenny Gilruth and the Deputy First Minister, John Swinney have visited recently to consult with elected members and the public on the issue of ferry services. The decision not to proceed with the proposed Islands Bond has been taken following consultation with islanders online and at face-to-face workshops, one of which was in Eriskay. We know that Scottish Government are listening; what issues do we want to raise?
For me, one of the most concerning issues is poverty. How can we as a Comhairle, in partnership with both governments and with communities, act to address poverty immediately and what actions can we take to prevent poverty in the future?
We are a wealthy nation yet the gulf between the haves and the have nots is wide and growing. In so many sectors of our economy we see huge profits, but individuals and communities are struggling with poverty. The cost-of-living crisis has gone beyond individuals and now is simply a cost crisis as businesses, local authorities and third sector organisations are increasingly affected by rising costs impacting on budgets and services.
Fuel poverty has been an issue in the Western Isles since before the current energy price hikes, with the percentage of households living in fuel poverty above the national average. That situation can only be expected to worsen given the spiralling cost of energy. Since most aspects of energy policy are reserved matters, the Scottish Government cannot legislate to prevent spiralling energy costs. No matter how wonderful our community energy companies are, they produce electricity that cannot directly address fuel poverty in the Western Isles, and they are subject to market forces outwith community, Comhairle or Scottish Government influence.
It’s not just energy pricing and tariffs that are problematic. Concerns about security of supply, due to the condition of the undersea cable connecting Uist to the national grid are ongoing. We are facing a very real threat of being unable to access the grid. Unable to import or export electricity, we would be forced to rely on fossil fuel burning, diesel generators to supplement the limited supply provided by Carnan power station. Hardly a solution at all given the commitments made to renewables at COP26 and how hard our community renewable electricity companies have worked to decarbonise supply.
It’s not possible to think about this issue, or any other, in isolation. Should tunnels feature in our future infrastructure, embedding the cable within the tunnel structure would provide a solution to the costly, dangerous and challenging affair of maintaining the cable, while securing supply.
Under the current model we produce electricity from renewable sources, export it and then buy it back. As a model, it’s not unusual but there are examples of communities who have, through collective endeavour, altered the model in their favour. The Danish island of Bornholm was in a similar position, at the turn of the century. They were importing all of their electricity, via a subsea cable from Sweden. The community there, unhappy with this situation, took action to decarbonise their energy supply and in the process were able to take control of many aspects of energy production. Now, they currently only import around 30% of their electricity.
Of course, there is more to cooperative businesses than electricity. Cooperative businesses already successfully operate within the established capitalist system, they simply work on the principle of mutuality not individualism. Surely that’s something we recognise, something that we are already very comfortable with. We are all familiar with The Coop and the numerous social enterprises we see all around us. That being said, there remain gaps in the market that cooperative businesses could fill. Childcare, housing, local food production and distribution, hydrogen production, are all areas where cooperatives could successfully operate.
Emilia-Romagna in Northern Italy is one of the most economically successful regions in Europe. It is also one of the most cooperative regions in the world. Cooperative businesses contribute a startling 30% to the regions GDP, making it a fantastic example of how a true cooperative economy can thrive.
Spain is home to arguably the largest cooperative in the world. Mondragon is a voluntary association of almost 100 independent cooperatives. Although it looks a classic example of a capitalist monolith, it operates with a true cooperative ethos. There are executives, as you would imagine in an organisation of this size and complexity, but the highest-paid executive is paid no more than six times the salary of the lowest-paid employee. There are no outside shareholders. Each new employee may become member-owners of their co-op. A managing director acts as a kind of C.E.O. within each co-op, but the members themselves vote on many vital decisions about strategy, salaries, and policy, and the votes of all members, whether they are senior management or blue-collar, count equally.
Mondragon collectively employs around eighty thousand people, and more than three quarters of those who work in manufacturing co-ops are owners. Manufacturing diverse products from bikes to components used in engines, rockets and wind turbines, Mondragon businesses include a supermarket chain, research and development companies, and a consulting firm.
The Coop, Mondragon and Emilia-Romagna didn’t start off as successful as they are now. They started small, with local communities coming together to solve a problem. However, they couldn’t have become as successful as they are without the political will to provide a supportive legislative environment. Perhaps, an alternative to the Islands Bond is for government to do more, in partnership with the Comhairle, to encourage, educate and empower communities to take direct action to reform their local marketplace. By creating an environment where locally owned businesses thrive alongside cooperatives, communities can act to address poverty directly. Inspirational examples of community action are here in Uist already. We can’t simply replicate what has been done but we can learn, and be inspired by, what has already been done and create new opportunities.
Cllr Susan Thomson
Categories: Guest Column







