Workers’ homes could see islands’ economy boosted by millions
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.”