Ferries Scotland: The £4.4m fund for suffering island businesses as Caledonian Isles still out of action

Eligible sectors include those that rely on tourism and those engaged in the manufacture or movement of perishable goods, such as seafood.

The Scottish Government, which has launched the scheme, said the size of the award would be based on demand and the size of businesses that apply, but that payments were expected to range between £3,000 and £35,000.

But a community group has described the decision to exclude certain islands, including Mull and Iona, from funding as “baffling”.

The Mull and Iona Ferry Committee stressed only a “small proportion” of the islands affected by disruption were eligible for the scheme, with others being “excluded”.

A spokesperson for the group said: “The ferry shambles is about more than just the number of sailings cancelled – it is about the fundamental undermining of Hebridean business and society, by this never-ending crisis of capacity and confidence.

“The damage done to our tourism sector will last long after the ferries are fixed.

“The criteria that the minister has come up with are not just blunt and crude, they are discriminatory. It seems to reflect an ignorance of how damage is being inflicted on island communities.”

The fund, which is managed by Highlands and Islands Enterprise (HIE), opens for applications from July 2 until midday on September 1. Decisions and payments are expected by October 31.

Islands Secretary Mairi Gougeon said: “We know that Scotland’s island communities face distinct challenges, not least in terms of their economic and social resilience.

“People and businesses require ferry services running reliably and frequently to support their livelihoods.

“We worked with HIE to refine the eligibility criteria and identify how this money can make a real difference to the businesses who need it most.

“Reliable and regular ferry services are key to this connectivity for people and businesses and we know that the current situation of delays and ongoing maintenance to some vessels has created real difficulties for some.”

The Government said the IBRF was available for the eight selected islands as these had seen more than 15 per cent of services disrupted over the past three seasons.

This compares with an average of seven per cent.

Rachel Hunter, HIE’s director of enterprise and community support, said: “Island businesses and social enterprises make an important contribution to local economies and provide vital rural employment that helps sustain many communities.