Committee publication · Scrutiny evidence · 15 April 2026 · HC 1460, HC 1461
Note of Scottish Affairs Committee visit to Faroe Islands & Copenhagen
Summary
The Scottish Affairs Committee visited the Faroe Islands (8–11 March 2026) and Copenhagen to examine digital and fixed-link connectivity. The Faroe Islands operate 23 tunnels (4 subsea), achieving near-100% 5G coverage and 1% annual population growth. The Committee met tunnel operators, telecommunications firms, local government, and the Economic Council to assess how infrastructure investment supports social outcomes, housing, labour market integration, and economic resilience, with particular attention to lessons for remote communities.
Key findings
- Faroe Islands have 23 tunnels (4 subsea) and achieved ~100% 5G coverage; subsea tunnels financed by tolls repaying construction costs, with traffic growth and population stabilisation on previously declining islands.
- Fixed-link tunnels reversed depopulation trends: islands without tunnels show population decline and older-than-average demographics; those with tunnels now see housing growth, younger populations, and integrated labour markets centred on Torshavn.
- Social case for tunnels is clear; economic case is weaker due to high per-capita investment. Tunnels are built for public good rather than economic growth correlation. Government subsidy from Denmark is ~DKR 500 million annually, being reduced by DKR 25 million yearly.
- Faroese Telecom (75% market share) has rolled out FTTP to 50% of homes; infrastructure sharing rather than competition achieved 100% 5G. Subsea cable damage a concern; company calls for better AIS enforcement on fishing vessels and Crown Estate Scotland protection.
- Housing shortage in Torshavn cited as driver of youth outmigration; 6,000 houses planned. Economic growth 3–4%, unemployment 1%, but public debt at 30% of GDP with deficit of 1.2%; tunnel debt government-guaranteed.
Tone
FactualTopics
Key actors
Maureen Burke MP, Dave Doogan MP, Lillian Jones MP, Angus MacDonald MP, Susan Murray MP, Elaine Stewart MP, Kirsteen Sullivan MP, Tummas H. Dam
Notable line
“Tunnels are built for public good rather than because they have a strong correlation with economic growth.”
Key Quotes
“A study found that islands without fixed tunnel connections have experienced population decline and have older-than-average populations. Evidence suggests that these trends Scottish Affairs Committee 3 were reversed following the construction of tunnels, with population levels stabilising and the average age aligning more closely with national averages.”
“One of the positive aspects of the subsea tunnel to Sandoy is that the weather is no longer a challenge for residents. For example, people from Sandoy can still participate in events in Torshavn and no longer have to cancel their involvement because of weather.”
“It was noted that seeing more houses and families moving to the areas has been "life affirming".”
“While the social case appears clear, it was noted that there has never been a strong economic case for tunnel projects in the Faroes due to the high investment level per capita.”
“The island has almost 100% 5G. They attribute this to sharing infrastructure rather than competing with the island's other telecoms company.”
Source · parliament.uk record ↗