12 June 2007

Highlands and Islands Regional Labour MSP Peter Peacock has tabled a parliamentary question on the level of funding received from central government by Orkney Islands Council, which, overall, appears less than either the Western Isles or Shetland.

Mr Peacock said, "Although Orkney historically has received less overall grant from central government it also has a smaller population than the other two islands groups.

"That said I do believe there remains a financial anomaly between the island groups which continues to need to be addressed.

"The revenue support for councils is not earmarked for specific services and the decision to allocate spending from the grant and council tax rests with Orkney Islands Council.

"The council have debts to repay on previous capital expenditure which still has a current impact on spending plans.

"Other income streams for islands council, like the Special Islands Needs Allowance appears to be less than the other island groups.

"The previous Labour-led executive had committed to reviewing the existing block grant formula and any such review needs to benefit Orkney with its relative remoteness, transport infrastructure needs and a growing ageing population.

"My parliamentary question seeks to draw out the precise reasons for any differences in levels of support so that Orkney folk can see the detail and it asks the SNP whether Orkney still received a lower of revenue support than Western Isles and Shetland councils, it also asked whether the gap has been narrowing over recent years, and what further steps the Executive plans to take to eliminate the gap in funding and in what timescales."

Speaking on behalf of the Orkney Branch of the Scottish Labour Party Iain Macdonald commented, "I am delighted that Peter Peacock, one of Orkney's Labour representatives in the Scottish Parliament from the Highlands and Islands regional vote, has raised this issue.

"This was an important issue that I spent a lot of time on at the recent election and it needs further action to continue the progress made by the last executive.

"It will be interesting to see the answer from the new Executive."