Governor of Bank of England says isles have ‘huge potential’ - and points to lowering of energy prices amid signs of easing tensions in Middle East
SaxaVord Spaceport. Photo: Rocket Factory AugsburgThe governor of the Bank of England has heard about the barriers facing businesses in Shetland during a three-day trip to the isles. Andrew Bailey has been. . .
SaxaVord Spaceport. Photo: Rocket Factory AugsburgThe governor of the Bank of England has heard about the barriers facing businesses in Shetland during a three-day trip to the isles. Andrew Bailey has been discussing housing shortages and labour challenges during his visit, which has seen him head to Yell and Unst. “The good news is that the economy is performing quite strongly,” he told The Shetland Times. “What goes with that is quite a feeling that we’re up against capacity limits in infrastructure supply and in labour supply also. “Companies are saying they are finding it hard to recruit, and that featured quite a bit. ”However, he said he was “totally thrilled” by the SaxaVord Spaceport, adding it was “fascinating” to hear about the far-reaching work going on in Unst. “I wouldn’t have missed it for anything,” he said. “I was really, really impressed. They’re trying to build up to their first launch, and we had a really good tour around. “We heard a lot about what the advantages for Shetland are at the site. “It’s really impressive, not only optimism, but what was achieved. I’m really impressed. ”Meanwhile, in Yell, Mr Bailey heard about energy supply and the need for fixed links. He said he had been impressed by how the community had “worked together” and how the island had used the income generated from that activity to invest in the area. His visit comes ahead of a council meeting next week where elected members are due to discuss possible options for progressing fixed links, with Yell and Unst likely to be the first candidates. “They’re obviously pushing for fixed links - I certainly got that sense,” he said. “There’s going to have to be a choice, because if they don’t do fixed links there’s going to have to be investment in ferries. ”Mr Bailey said there were also “ambitious plans” at Lerwick Port Authority, which has been doing much to cater for the offshore industry and, perhaps more visibly, the successful cruise sector. “One of the interesting facts that the port authority was telling us is that if two of the large cruise ships come in, the number of people on those ships is larger than the population of Lerwick. ”Governor of the Bank of England Andrew Bailey. Mr Bailey also addressed the “huge potential” in the energy sector. He welcomed the number of independent businesses in Shetland, and said there was a “great sense of community” in Shetland’s business sector. “They’re very committed to the whole question about the community infrastructure,” he said. “They’re not disinterested in that. “There’s a very strong connection between the businesses and the community. ”He highlighted “big shocks” internationally - most recently in the Middle East following the unrest seen in Iran, which he described as “extremely frustrating”. “Shocks like this have the effect of raising energy prices,” he said, adding that risked lowering economic activity. However, he highlighted “quite a sharp fall” in energy prices in the last week, following a tentative easing of tensions in the Middle East. “There were comments from the US that it would be over any day soon - they were going on for a month almost. “But it does look like a truce has broken out. And what’s interesting is that, particularly this week, there’s quite a sharp fall in energy prices. “Although we’re not quite back to where we were before this all started, we’re nearer to that point today - and much nearer than we were a week ago. “That’s obviously very encouraging news. ”He said that followed “optimistic” statements from the Middle East about the levels of damage to their energy supply. “It does look like shipping is going through the Strait of Hormuz. That’s consistent with what’s happening with energy prices. ”It follows hopes earlier this year that the Bank of England could hit its 2. 0 per cent inflation target by this summer. It was at 3. 3 per cent in March. The unrest led to an expectation of “planned cuts” being taken off the table, but the rate now stands at 2. 8 per cent. “There’s still a degree of fragility in the situation, clearly,” said Mr Bailey. Do you want to respond to this article? If so, clickhereto submit your thoughts and they may be published in print.