It is hoped that the new development wil triple the size of the Craignure village on the island. It would mean as many as 350 new residents living at the Ferry site close to the Isle of Mull Hotel.

The ground is owned by the local company behind the proposals, TSL Contractors.

Naomi Knight, a director of TSL, said: “There are not enough houses on Mull. We have got a shortage of working age people and they can’t get housing. Mull is thriving. We are trying to keep the island alive.”

It is hoped that the new deveoplment will encourage the Scottish Government to provide a commutable, year-round ferry service to the mainland.

Currently, the ferry gets into Oban from Mull at 9.30am and departs at 3.55pm during winter months.

Mrs Knight said: “It is hoped that some of the adults staying in this development can live in Craignure and commute to Oban for work. At present this is not possible during the winter.”

The development will comprise of a mix of two to four-bedroom flats and houses, which will include 24 affordable homes.

A public event has been held in Craignure Village Hall and an online consultation runs until December 29, The Press and Journal reports. 

TSL are in talks with potential operators for the children’s nursery and care home for the elderly. They hope to gain planning consent in the first quarter of next year and begin the first stage of construction in January 2023.

Mrs Knight added: “We have spoken to local companies West Coast Motors and Scottish Sea Farms, who have come back saying this is great, (they) are interested in purchasing some of these properties.

“Scottish Sea Farms are 14 people short on the island and can’t look at filling these posts when there is no housing. West Coast Motors are struggling for drivers.

“It has been a problem for years and is becoming a bigger problem. The island is busy. It is thriving. There is no unemployment on Mull. We are looking to bring more people in. We are trying to do the best thing for the island.”

Iain Campbell of Mull Community Council said it planned to invite TSL to give a presentation at a future meeting.

He added: “From a personal point of view, I am aware there is a need for housing on the island for hospital workers, bus drivers, teachers and so on. If we are able to get appropriate affordable housing at Craignure, that would only be a good thing for the island.

“We are trying to do the best thing for the island.”