News / Less oil to cost SIC an extra £1.5m
THE DROP in oil flowing through Sullom Voe terminal will cost Shetland Islands Council almost £1.5 million this year, placing even greater pressure on its already strained budget.
The SIC’s harbour board meets on Thursday 6 September to discuss how it can address the reduced income at the oil port, which has generated hundreds of millions of pounds for the local authority over the past 30 years.
A reduction in throughput of Brent crude from the North Sea is forecast to cut income from handling tanker traffic this financial year by £674,000.
A further loss of £760,000 comes from the early closure of the Schiehallion field west of Shetland, also leading to fewer tankers in the port.
There has also been a £100,000 overspend on the hire of towage services to cover for the refit of the harbour tug Tirrick, which will be discussed in more detail by the full council on 20 September.
Meanwhile an increase in oil related traffic at Scalloway harbour has created a surplus of £100,000 so far through vessels supporting exploration work in the north Atlantic. More money is likely to come in over the winter, though probably at a reduced rate.
The council is currently looking for savings of £30 million over two years to balance its books and avoid bankruptcy in five years. This year’s savings target is £15.4 million.
This reduced income from Sullom Voe means further savings will have to be found elsewhere if the council is stay on target.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 630 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.