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Stornoway, Lewis
BP hits islands economy by half a million pounds 2011/09
Many employers in the Scottish islands are facing a massive threat when an oil giant withdraws a vital fuel discount.
Island businesses warn around 20 jobs could go in the Western Isles as BP bans the
use of its discount card -
The islands affected are Lewis, Shetland, Skye and Arran where filling stations are not run under the BP brand. The discount stops in four weeks and some island firms say their costs will soar by up to £30,000 annually as a direct result.
It could cost the economy of the Outer Hebrides half a million pounds it is said.
Now Western Isles MP Angus MacNeil and MSP Alasdair Allan are seeking a cross party consensus with politicians from other islands to fight the corporate giant.
Island transport firms met with the Hebridean politicians over the issue in Stornoway today.
David Wood who employs 40 people at his parcel delivery service Woody’s Express warns that the move by BP is wiping out the benefit to the islands from the cheap ferry fares scheme RET.
He said: “This comes just as the island starts to benefit from road equivilant tarrif (RET) on the ferries. Its like giving us some help on the one hand but taking it away with the other.”
“Our costs will go up by £30,000. We have not increased our prices for two years and we don’t want to.
“But now we have no other choice but to pass this on tot he customer in an effort to stave off redundancies.”
He highlighted local business were being damaged by the credit crunch and the islands’ serious economic downturn.
He said: “We have cut our cloth as far as we can. It is not prudent to cut any further.”
He pointed out that a new outgoing mail and parcel service introduced by his firm was operating at cost price to allow island customers to take advantage of spare capacity in vans going to the mainland. The operation was costed on the old fuel card prices and the withdrawal notice has put it under pressure.
Angus MacNeil MP slammed BP for its “lack of social conscious” in the background of making “obscene £10 billion profits last year.”
He said: “They are pulling half a million pounds out of the island economy. This will cost 20 jobs and hauliers, construction firms, bus companies will find their costs will rise at very little notice.
“Local companies cannot absorb this financial shock delivered by a socially irresponsible BP.”
He added: “The economy needs help, people will lose their jobs, to see an oil company planning to hurt rural Scotland is not at all helpful; the withdrawal of these cards will have a negligible impact on their billions of profits."
Alasdair Allan said: "With fuel at such a high price in the islands these cards are crucial to the viability of many island businesses, and a number of concerned businesses have been in touch with me to express their concern at the effect this move by BP is going to have on their business and the wider island economy.
A BP spokesman said: "From 18th December, BP PLUS and BP PLUS Bunker cards will no
longer be accepted at 15 non-
"BP has not had a retail presence in the Scottish Highlands and Islands
for several years.
"The decision was made following an in-
cost.
He added: All customers can continue to access these sites using the BP
Supercharge card.
The spokesman accepted that the new card was "not quite as good."
Island hauliers insist that the alternative did not offer any effective
discount.