Exit strategy from Covid can help our businesses and region grow and prosper

Chamber Comment by Trudy Morris

The start of a new year is traditionally a time to put old problems behind us and focus on the new challenges and opportunities to come. This year, however, it is hard to do either of those things, with the Covid-19 pandemic still causing devastation to our lives and economy.

It is clear that businesses in the north Highlands face a challenging year ahead and that they will continue to need support from both our governments to help them get back on track and start the economic recovery of our region.

While both the UK and Scottish governments have provided significant financial support to businesses over the course of the Covid-19 pandemic, this has of necessity been focused on short-term survival. With the vaccine rollout starting to give us the first glimmers of hope for the future, what we now need is for government to develop an economic exit strategy and long-term package of support for businesses and communities across the country.

A key factor in this for the north Highlands is the clear requirement for the Scottish Government to invest in a Public Service Obligation (PSO) to support lifeline air services in the region. We have already seen the consequences of loss of air services, with one major company in offshore wind ceasing operations from Wick as a result.

A PSO is a perfect example of a strategic investment – one which, for relatively low initial outlay, will not only support the economic recovery of the region post-pandemic, but will enable long-term investment in growth sectors like renewable energy and aerospace.

This investment would not only benefit the north Highlands but would play a key role in boosting the whole Scottish economy and helping to meet the Scottish Government’s green energy targets. With a skilled supply chain and strong nearby infrastructure in our ports and harbours, the region can play a key role in helping to meet ambitious targets for offshore wind development over the coming decade.

It is clear that this is not solely an economic issue but a social one. If we are to address the long-standing concerns around depopulation of remote and rural areas, we need equity with the rest of Scotland in terms of social inclusion and access to opportunities. Investment in lifeline connectivity is also an investment in the people living and working in remote parts of Scotland.

Support for a PSO would be a strong first step in addressing the economic and social challenges facing the north Highlands, but we must remember that it is just a first step.

Both the UK and Scottish governments are fond of talking about the need to “level up” regional economies, and to ensure a “just transition” to a sustainable future. These are worthy goals, but if they are to be achieved we need both governments to engage in a strong, sustained programme of investment in the region.

The coming years will be hard, and there is no avoiding the scale of the challenge that we face. We now need our governments to step up and commit to a future for the north Highlands that sees the region grow and succeed for years to come.

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