Hans J Marter

16 February, 2008

SHETLAND Development Trust is set to place its shareholding in Smyril Line on the market in a bid to recoup its £4.45 million investment.

Last year the Faroese shipping line dropped Shetland from its schedule as part of a bid to turn around the company's fortunes.

Shetland Islands Council convener and former Smyril director Sandy Cluness said last night (Friday) that in April the five year agreement with the firm would come to an end, allowing the development trust to offer its shares for sale.

"Now that the Norröna is not coming here anymore and goes to Scrabster instead there is no reason to hold on to the shares," Mr Cluness said.

"In my view the investment does not fulfil the terms of the trust anymore which says that any investment has to be for the benefit for the people of Shetland."

No efforts are currently being made to put the isles back on Smyril's timetable, he said, but he hoped a passenger ferry link could be re-established between Shetland and Norway.

As for the likelihood of Shetland recouping its £4.l45 million investment, Mr Cluness said there was no rush.

"We will test the market and see what the possibilities are. We are in no hurry to sell the shares. We will wait until we get a price that is suitable. What we are really missing is a link between here and Norway," he said.

The development trust meeting is expected to decide to sell the shares at its meeting on Monday afternoon

Meanwhile the trust's representative on Smyril, Bobby Hunter, will travel to Germany to attend a company board meeting on board the Norröna later next week.

The 160 metre vessel presently sits in a dry dock in Hamburg undergoing repairs to one of her stabilisers damaged in stormy seas off Shetland in November last year.