The motion, signed by council leader Steven Coutts and convener Malcolm Bell, said: “We are concerned that this ongoing situation is seriously threatening the prosperity and even basic sustainability of Shetland as a community.”
Any move for Shetland to become self-determining would need to be supported by an island-wide referendum, councillors stressed.
Mr Coutts suggested devolution has not benefited the area and said the Scottish Parliament feels “remote” to islanders, who face some of the highest rates of fuel poverty in the country.
He added the levels of funding for ferries “negatively impacts on Shetland and everyone of Shetland”, although the Scottish Government said it has provided more than £15 million for ferry services over the last three years.
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