The Oban Times

Workers’ homes could see islands’ economy boosted by millions

- By Kathie Griffiths kgriffiths@obantimes.co.uk

If Mull had enough accommodat­ion for its workers, the size of the island’s economy could increase by £20.1 million in 20 years time.

The figure comes from an economic impact assessment commission­ed by Mull and Iona Community Trust (MICT) and funded by Highlands and Islands Enterprise.

A shortage of staff accommodat­ion on the islands is making it difficult for businesses to recruit and keep staff which is limiting growth, harming productivi­ty and putting strain on public services.

And the situation is only likely to get worse without interventi­on, says MICT.

When a feasibilit­y study was carried out by MICT last year, there were 133 unfilled jobs and 127 workers living in unsuitable accommodat­ion.

Following on from that study, MICT commission­ed BiGGAR Economics to do an Economic Impact Assessment (EIA) to quantify the impact providing the identified accommodat­ion, or not, would have.

The EIA confirmed that should all such accommodat­ion needs be met, in 20 years this could increase the size of the islands’ economy by £20.1m gross value added (GVA) per year, and nearly 400 jobs. The report highlighte­d businesses are finding themselves having to invest in accommodat­ion for staff, which is both a financial burden to them, and removes properties from the general housing market.

If accommodat­ion could be provided for all 260 existing and incoming workers identified, the knock-on positive effects would be significan­t.

In 10 years’ time, such provision could support additional economic activity on Mull and Iona amounting to £13m GVA and potentiall­y 274 jobs.

Solutions already in the pipeline include more than 100 new houses planned for delivery across Mull in the near future, which will reduce the pressure on businesses, and provide greater home options for local people.

Argyll and Bute Council has confirmed investment of about £1.5m on Mull for key worker accommodat­ion – working in partnershi­p with MICT – as part of their forthcomin­g £70m Rural Growth Deal.

The economic report concludes that delivery of key worker accommodat­ion has the potential to deliver substantia­l economic and social benefits for Mull and Iona, with MICT playing a vital role in achieving this.

MICT general manager, Moray Finch, said: “This study is eye opening in the potential economic impact – both positive and negative – that the delivery of much-needed key worker accommodat­ion would have, or not, on our islands. It is further evidence that providing such accommodat­ion, of the appropriat­e type and scale, and in the right locations, is essential to our future sustainabi­lity. We are now taking steps to make that delivery happen”.

Anne Fraser, general manager of Tobermory Harbour Associatio­n, said: “To see the extent of the impact presented in the report is quite staggering.

“Housing is such a complex issue and there is no one solution, however I hope the economic case for key workers accommodat­ion will now be taken seriously before it is too late.”

Argyll and Bute Council leader Councillor Robin Currie added: “We have worked with MICT to identify housing sites on Mull and welcome the recent announceme­nt from the Scottish Government Islands Programme Fund.

“The funding enables the council to progress with plans to build accommodat­ion for workers at the Rockfield site on Tobermory.

“This phase first of the developmen­t will add critical infrastruc­ture, including mains water, electricit­y and drainage.

“The next phase will build the accommodat­ion, using Rural Growth Deal funding. We continue to work with key partners to identify housing solutions across the area.”

 ?? ?? Recent funding will allow plans to build accommodat­ion for workers at the Rockfield site on Tobermory to begin.
Recent funding will allow plans to build accommodat­ion for workers at the Rockfield site on Tobermory to begin.

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