IETIDE TIME

his is the story of Aberdeen’s Craig Group, a family business whose beginnings

are anchored in the City’s once powerful fishing industry, but which has largely & been displaced by the prosperous North Sea oil and gas industry. Established in the 1930s, Craig grew to become one of Scotland’s most successful trawler fleet owners prior to diversifying into the offshore industry and evolving to the multi-faceted, award-winning fishing to international energy services group that it is today. h tr fteCagGroup Craig the of Story The It is a voyage that is made all the more remarkable by the fact that its chairman, David Craig, was there right at the beginning when his father established the business. He has witnessed massive change ... from being a deckhand on an ancient steam trawler reliant on gas carbide and paraffin for lighting to, on March 7th this year, hosting the christening of Grampian Explorer, an £11million, state-of-the art, go anywhere offshore support vessel.

THE AUTHOR: Jeremy Cresswell has a passion for the sea that started with voyages to Canada and New Zealand during his childhood, then evolved to yacht cruising, aquaculture and commercial fishing. Today he is an energy and maritime affairs journalist and is editor of The Press and Journal supplement Energy.

The Story of the Craig Group Craig Group Ltd, 207 Albert Quay, Aberdeen AB11 5FS, Scotland UK Tel: +44 (0) 1224 592206 Fax:+44 (0) 1224 584174 www.craig-group.com Jeremy Cresswell Aberdeen Lagos Stavanger Cape Town Baku Atyrau (KZ) Abu Dhabi Singapore Perth Houston New Iberia Trinidad Faroe

The Story of the Craig Group

Jeremy Cresswell

Special thanks to The BIG Partnership and Hampton Associates in the production of this book. The Craig family: George Snr, David, George, Lydia and Mother Mary.

Time & Tide - The Craig Group Story CONTENTS

FOREWORD by David Craig ...... 5

INTRODUCTION ...... 6

PART ONE: The Fishing ...... 9

PARTTWO:The Oil Era ...... 41

TABLES & PHOTOS ...... 73

3 David and Helen Craig with his prize-winning dahlias.

Time & Tide - The Craig Group Story FOREWORD

After much persuasion from family and friends, I started putting pen to paper in an attempt to compile my memoirs, describing the early days of The Craig Group and capturing some of the anecdotes in our seventy years in business. From my initial scribblings and ramblings, the concept for this book was developed. Thankfully, the task of authoring our history fell to a real wordsmith and my contribution simply involved reminiscing and recounting the tales of days gone by. A chore I thoroughly enjoyed! Seventy years in business is a significant milestone and I am proud of our rich maritime heritage. I would like to take this opportunity to pay tribute to the family on whose Christian values, unity and loyalty the company was founded. To my father and mother for having the imagination to establish the business, my brother George and my wife Helen who are sadly not around to celebrate our 70th year, and my sister Lydia and her late husband George Bell for their support. We made a good team and our unity gave us strength to move forward successfully. As the third generation, my son Douglas has steered the group into new waters and continues to find new opportunities to grow the business and safeguard the future. Under his leadership and guidance, the company is in a strong position for the next generation to continue the legacy. The book is divided into two distinct parts, taking the reader on a journey through our roots in the fishing industry and then on to the discovery of North Sea oil and gas and our steps towards becoming a global player in this sector. I hope it is a journey you find nostalgic, entertaining and informative.

DAVID CRAIG

5 INTRODUCTION

George Craig Snr.

berdeen is Europe’s Energy Capital, a hive of intense David’s is a hectic life. This year he was in Cape Town visiting the oil and gas activity the likes of which can be found company’s latest venture, a base that will act as launch-pad for marine in only a few other centres worldwide. This is a support and energy supply chain services to the fast growing offshore bustling port that makes few concessions to oil and gas industry of southern and western Africa. tradition, with massive infrastructure changes since North Sea oil was first discovered at the end of the 1960s. In the spring, he welcomed Aberdeen’s outgoing Lord Provost Margaret Smith and hundreds of guests aboard one of the Craig It was once a thriving fishing centre, but the fleet has been decimated Group’s latest marine investments, the £11million, Norwegian-built since Britain joined the Common Market in 1973, coupled with offshore support vessel Grampian Explorer. being banned from Icelandic and Faroese waters. Quaysides that were formerly crowded with large trawlers moored mostly nose-on - Through the Scottish media, and particularly The Press and Journal, discharging their catches, or resting briefly before heading to sea Fishing Monthly and Fishing News, David pointedly told the again - are now all but empty. Government and EU fishery commissioner Franz Fischler that the Common Fishery Policy had brought Scotland’s fishing industry to This was the world that David Craig, today the oldest shipping the brink of disaster. company chairman in the land, grew up in. Moreover, the company founded 70 years ago by his father, George Craig Snr, continues to Late summer, quite aside from tending his beloved dahlias, thrive ... one of the few traditional Aberdeen firms to have truly preparations were under way to fly the Craig Group’s pennant at successfully capitalised on fishing and North Sea oil. Offshore Europe.

Time & Tide - The Craig Group Story For David Craig, this is all a far cry from starting his career as the Services, International Mooring Systems (IMS) and ChainCo lowest form of life aboard a family-owned coal-fired steam trawler International. There is also a vibrant leisure division. that hunted the waters around the Faroes, even Iceland. This is the vision of group managing director Douglas ... building on And it’s a long way removed from his ship being blasted from under the foundations laid by two prior generations ... being bold yet his feet by the Germans in World War Two; or 30 or so years later, conservative ... working with a hand-picked management team and loyal workforce and where safety is the watchword. from battling against the economic impact of the Iceland Cod Wars with his brother and long-time co-managing director George; or in The purpose of this book, which is in two parts, is not just to the 1970s grasping early opportunities in the then embryonic North celebrate 70 years of the Craigs in business; hopefully it will also Sea oil industry. make a small contribution to recording some of the history of two of the North-east of Scotland’s greatest industries - Fishing and North Once the core business, fishing accounts for just 5% of group Sea Oil. turnover today. The company has been transformed to one of Scotland’s Top 100 companies, ranking as market leader in offshore standby, marine electronics, mooring rentals, catering and JEREMY CRESSWELL procurement, with bases in the UK and internationally. Newburgh, October 2003 But for North Sea oil and the bonanza it brought to Aberdeen, the company, then George Craig & Sons, might have gone under, become part of the Granite City’s sepia-tinted history. Then came salvation in the shape of a Texan oilman who, one Friday in the early 1970s, walked into the Craig offices and asked if he could hire a trawler to act as safety vessel to a rig then drilling in the North Sea. The brothers, who were joined by David’s son Douglas in September 1975, saw their chance and rapidly adapted, converting trawlers to standby vessels to support the fast growing North Sea oil industry. They had no intention of sinking without trace. And how they have prospered, with Craig Group recognised as one of Scotland’s most successful and entrepreneurial family businesses. If accolades count for anything, then an Ernst & Young Award for Entrepreneur of the Year received at a dinner in Edinburgh this summer is surely a measure. Today, the group is becoming increasingly global in its outlook, with 10 bases spread from North America to Europe, Africa, the Caspian and East Asia. Spearheading the push is a family of specialist divisions, with Craig Energy Services now providing a common gateway to subsidiaries North Star Shipping, Seatronics (marine electronics) and CIS (Craig International Supplies), Catering

7 Trawlers moored at Aberdeen Fish Market, awaiting to discharge their catch in the 1930s.

Time & Tide - The Craig Group Story Part One THE FISHING

o walk Aberdeen’s fish market at 6am in the mid 1960s, would be all but swept away by politics and that North Sea oil would was an unforgettable experience. Winter, spring, prevail as Aberdeen’s dominant industry. summer or autumn, the excitement was immediate. The Aberdeen trawler fleet of the 1960s was potent, with a large It was the busiest place in town by far, with Market number of smart diesel trawlers displacing ancient, worn out steamers Street heaving with the kind of life that only a great that were then consigned to the quay at Point Law to await a final fishing port can generate. tow to the breakers. Picture trawlers and great line boats crowding in along the quays, the shrieking of derrick blocks as wicker creels of fish were swung ashore, The Craigs were at the forefront of the modernisation drive, with the great cod - known as ‘green’ in the trade - readied for auction, halibut Mary Craig setting the trend, her clipped lines set off with rakish that seemed as big as doors laid out with great precision on the wet funnel and the first ‘lantern-style’ wheelhouse ever to be seen on a concrete, boxes of haddocks, each bearing St Peter’s thumbprint on Scottish-owned fishing vessel. their flank, and other denizens of the deep that the writer, then a The brothers were in their element, one ensuring that every new teenager, struggled to identify. addition to the Craig fleet was properly shaken down and fishing This was the world of David Baxter Craig, then at the top of his well, while the other kept a firm hand on the corporate helm. profession as a trawler skipper and joint managing director with his brother George of one of Aberdeen’s largest and most progressive TRIPPING DOWN MEMORY LANE fishing companies, George Craig & Sons. The brothers were from a classic North-east fishing family ... father Little did the Craig brothers, their families, nor the thousands of George originated from Portlethen south of Aberdeen, being one of a people who wrested their living from this most hard bitten of family of eight - six boys and two girls; while mother Mary Baxter traditional industries, know that, by the 1970s, their way of life Craig was born and brought up in Footdee.

9 George Craig Jnr (left), and John Lockhart of Vicker’s view the morning’s catch at Aberdeen Fish The young David Craig on board the River Ness in the Market in the 1960s. 1940s.

David was born in Torry on the 21st April 1916, the second eldest of “Growing up in the early part of the century I can recall the days of six children John, David, George, Ann, Mary and Lydia. Sadly, John, the ‘leerie’ when the gas lamps which lit the streets at night had to be Ann and Mary died in infancy. Moving to Fonthill Road, the family lit by hand,” recalls David. “Watching the ‘leerie’ was fascinating, as was later to have a bungalow built on Anderson Drive, clear evidence he walked the streets at sunset with a six-foot long pole with an iron that fishing was a worthwhile business to be in. loop attached, into which a matchstick was inserted and lit at every lamp post. Then he would be back early morning to extinguish the Further evidence that the cold North Sea and Eastern Atlantic could lamps. deliver a decent living was that, after a spell at Ruthrieston secondary school (now closed), David was transferred to Robert Gordon’s “Other memories of growing up were of the weekends when my College, which was then boys only, and mostly sons of doctors, father returned from sea ... our pocket money was generally one lawyers and other monied professionals. His mother’s wish was that penny. It took George and I nearly all afternoon visiting the various he would enter medicine and train as a doctor. Little was she to know corner sweet shops looking for the box that held the ‘lucky tattie’. that David was to be awarded an honorary Doctor of Laws by The Generally when the boxes were at least half full you had the Robert Gordon University many years later; different, but a doctor opportunity to examine each tattie. With a quick eye, you could see nonetheless. the hint of a small piece of paper protruding through the candy, so

Time & Tide - The Craig Group Story you’d buy that tattie. It contained a half penny, or hae’penny, to possession. And it was following ‘their reasonable success’, as he puts spend on another one! it, that the rest of the family settled in Aberdeen. “Another attraction was ‘Ogo-pogo Eyes’ or ‘gobstoppers’ ... a large By this time steam power was starting to sweep sail aside, with steam marble size hard sweet which when sucked changed colour at every trawlers and other types of fishing vessel like liners and drifters built layer. This was very helpful during the marble season or ‘bools’. For a in some number and operating successfully. suck of your sweet from one colour to the next your pal would give “A number of steam trawlers and line vessels were built at Aberdeen you a normal marble, but if it was a glass marble your pal had earned and I can remember as a young boy my father taking me to visit J himself two sucks of your sweet. This was pretty profitable if you Duthie’s shipbuilding yard near Greyhope Road in Torry and could afford to buy the sweets as the glass or steel marbles were the witnessing such a fishing vessel being launched. Other shipyards were elite in bools. The favoured shoppie was that of GM Smith’s at the bottom of Crown Street.” also actively building, especially Hall Russell at Footdee, which built naval and merchant vessels, plus some trawlers, while John Lewis & And a further prank was to try and top up the finances by placing a Sons of Torry became largely involved in building fishing vessels of farthing on tram lines and waiting for a tram to flatten it to the size of various sizes.” a halfpenny. By the early 1920s the Craigs were beginning to reap the benefit of “After all, a halfpenny would buy a lucky tattie, whereas a farthing hard work and persistence: “My uncles John, James, William, Joseph, would only get you a gobstopper. But the wheeze was unsuccessful.” Andrew and my father George decided that the time had come for a Like most if not all of us, David Craig recalls some of the snippets of property to be purchased to accommodate an office, plus a general history imparted by his father; about water trams that operated in net and gear store. At this time William the third eldest was not in 1912 which sprayed water on the street from either side of the tram; the family business being a certified engineer and working as a chief also that a harbour ferry once ran between Footdee and Torry engineer on a merchant ship. approximately 200-300 yards west of the present Round House. “John, being the eldest, decided to retire from the sea and took charge He also recalls that, when his father and uncles started in the fishing, of the new enterprise in Menzies Road, Torry (in the vicinity of they were working wooden vessels, mostly fifie sailing luggers that Cordiners Garage), calling it Craig’s Stores. Once established, the had been built in the late 1800s to pursue herring. They worked with brothers purchased one or two fishing vessels and, as the business drift nets - a curtain of mesh suspended just beneath the sea’s surface expanded further, more boats were bought. Then came the decision using buoys and which would stretch anything from 1.5 to 2 miles. to move to larger premises capable of accommodating both fish The gear would be shot at sunset and hauled in the early hours of the selling and an engineering yard as this would be advantageous to the morning. The herring, known as ‘silver darlings’, came off the bottom company.” during the dark as the plankton they fed on rose to within a few feet A suitable site was found at North Esplanade East where premises from the surface and became enmeshed by the gills. Outwith the were built to house an office, net and gear store, and engineering herring season, the boats also hunted for haddock using handlines. shop. The business was then called Craig Stores. “My father told me on several occasions that, while fishing some 70- In those days, most of Aberdeen’s fleet of 180-200 trawlers were 90 miles East of Aberdeen and having filled their hold, the boats were classed as inshore, landing once or twice a week and known variously often becalmed for a time due to lack of wind and were obliged to as inshore boats, otherwise known as ‘Sunday boats’ because they accept a short tow from a merchant vessel, hoping that enough of a neither sailed nor fished on the Sabbath. During the winter fishery, breeze would eventually spring up to send them bowling home under when haddock in particular moved further north to Shetland waters, canvas.” the boats would follow the shoals and, as frequently happened in bad The first vessel bought by the family at that time was the smack weather, they would take refuge, mostly in Lerwick. Even then, they White Rose, the builder’s half model of which remains in David’s would hold rigidly to the Sunday rule, as most were staunch in their

11 Christian beliefs. The practice later died out as vessels became more “These lamps, particularly the masthead, could be difficult to powerful, fished further away from home and for longer. manipulate as, once lit and slotted back into its lamp cage, it had to be hoisted 30-40 feet up the mast ... no easy feat on a rough night. While they may have been halcyon days for the Craig brothers, there Deck lights also had to be cleaned. These were gas-carbide, with the were disasters, including the loss of the Ben Lawers in the late 1920s. gas fed through rubber hosing, and the burners had to be cleaned This trawler happened to be a favourite with David’s father. every day with prickers.” “The incident took place while my father was on holiday in Ballater with his family. Ben Lawers had sailed on the Monday under the Wages were meagre. An apprentice would get five shillings (25p) per command of the mate, landed in Aberdeen on the Thursday morning day, while an AB deckie received seven shillings and sixpence (37.5p), and then headed out again, planning to return on the Saturday. It was plus an additional bonus of two shillings and sixpence or five shillings dense fog as they left Aberdeen and about 15 miles east on their way if the vessel earned £100 plus for a week’s trip. to the fishing grounds they were in a collision with a cargo vessel. Ben “Crews had to pay for their own food. Both skippers and mates were Lawers sank but fortunately there was neither loss of life nor on a share basis, unlike other crew who were on a guaranteed daily casualties. A model of her remains in the company boardroom.” rate, which meant that on a poor trip, neither would get paid. On George Craig’s next command was the Strathtummel, a breed of two different occasions when sailing as mate I had to get my mother trawler known as ‘after ended’ because the engine ventilators were to pay for my food. Happy days?” located behind the funnel, though this type was later phased out Until the mid 30s, most trawlers lacked dynamos, which meant when a more efficient boiler-room layout was adopted, with coal- neither electric light nor radio equipment, and nor were there the fired furnaces placed in front of the boiler to make fuel stowage and echo-sounders and sonar sets that are so commonplace today. handling easier. No radios meant that, when a ship headed for sea, contact ceased until she returned. That might mean two to five day trips for a FATHER COMES ASHORE - SONS TASTE THE SEA ‘scratcher’ fishing locally in the North Sea; mid-water boats were But, in the early thirties both George and James came ashore to away out west or to the north for six to twelve days; and deepwater strengthen shoreside management as the company fleet had grown to boats working Faroe, Iceland and the Norwegian coast could be 12 vessels. James took charge of the engineering and blacksmith’s twelve to eighteen days away and sometimes longer if the weather was while George launched a ship’s painting and boiler cleaning venture. bad. William ditched the merchant navy in favour of joining the business All trawlers were coal-fired at that time. While this was a dirty, bulky as superintendent engineer. By then, David was itching to get to sea. and inefficient fuel, it was cheap, especially for boats that visited Leaving Robert Gordon’s aged 15, he joined the family-owned Ben Leith, Granton and Methil, usually once a month, as they were close Asdale (A473) commanded by David Baxter. to the pits. ‘Battle dross’ was the preferred choice at sixteen shillings “I had the sea in my blood and I was more attracted to the idea of a (80p) per ton. After filling the bunkers it was normal to top up with life at sea than as a doctor. four or five tons in bags stowed in the fish-ponds on the foredeck. “I served as an apprentice for three months, learning to ‘box the Vessels fishing Iceland would carry eight or so tons of coal in bags on compass’ and steer the vessel among other duties, and then I was deck and fill their fish holds 50:50 coal and ice, the latter being elevated to ‘sleeping deckie’, which meant I was a Jack of all trades critical for keeping the catch of mostly cod for the fish and chip trade and master of none. Allotted tasks included trimming all navigation in acceptable condition. They would stage at Vestmann Haven on the lamps. They burned paraffin, so it was a thankless job on a rough west coast of Faroe to transfer the coal on deck to the bunkers below, night with salt spray flying around and the vessel heaving all over the assuming it hadn’t already been washed overboard because of all too shop. frequent bad weather.

Time & Tide - The Craig Group Story George Craig Snr aboard the Ben Lawers. Hauling the trawl.

Arriving in Icelandic waters - first landfall was usually the small island so the nature of the bottom being fished over could be checked by of Heimay, otherwise known as the ‘Back Door’ - the vessels would ‘arming’ it with grease. anchor to transfer coal stowed in the fishroom to the bunkers where space was by then available. The fishroom would then be cleaned and TURMOIL AT HQ - THE BIG SPLIT sterilised. Common purpose was not enough to cement the Craig brothers A ship with full bunkers could afford to steam and hunt for fish at together and, by 1932/33, the company was in turmoil. George Snr leisure as far west as the Blinders, which could be a very prolific area broke away, taking as his entitlement, three vessels out of the 12- for large haddock at times. If the cod were missing there, an area to strong fleet, namely the River Ness, Strathtummel and Strathlethen. the south of Iceland called Lion Rock could bring huge catches Fresh ground was bought at North Esplanade East, then a favourite instead. location for fishing industry companies, and premises built to There were few navigation aids - basically the sextant; distance log accommodate a net store, paint and boiler scaling shops and an office. comprising a clock and a 25-30ft braidline with metal fish attached A further trawler, Loch Maree, was bought for £2,000. Thus George that was trailed over the stern; and a deep sea lead marked off in Craig & Sons was established in 1933, with both George junior and fathoms and equipped with a lump of lead with a hollowed out base David joining their father.

13 David Craig and George Craig Snr (back row, 5th and 6th from left) aboard the Ocean Victor The first office building George Craig Snr built it 1933, North in 1931. Esplanade East, Aberdeen.

Key members of staff at that time were secretaries Amy Cook and prevent full-blown hostilities breaking out in Europe. Indeed tension Ann Harrold, plus John Gowie as ship’s husband in charge of boiler did ease for a time, though a sense of apprehension prevailed. But, at cleaning and right hand man to George Craig Snr; also rigging and George Craig & Sons, two significant events rocked family security. net foreman Alex Still. Ann was to be with the company for more David takes up the story: “Late in 1938 my brother George than 40 years, eventually retiring in 1983. unfortunately developed acute appendicitis. Being a serious operation Two years after the firm was established, David had his mate’s ticket, in those days, doctors recommended that he stayed ashore for at least serving in that capacity on the Loch Maree until 1937 when he three to four months. At that time, my father was also experiencing gained his skipper’s ticket and was given command of the River Ness. poor health, so George assisted in the office, while I continued at sea aboard the River Ness. The fishing industry was severely depressed in the late 1930s, though George Craig & Sons apparently prospered. The oldest of the vessels, “In April 1939 my father passed away at the age of 54 years leaving Strathlethen, was sold for an attractive sum of £1,800 and Wordie’s my mother, sister Lydia, brother, myself, the vessels, office, net store Clydesdale horses continued their seemingly timeless tradition of ... the lot. Lydia, brother George and I discussed the future of the carting coal down to Aberdeen’s Point Law for chuting into the business and, as I already had my skipper’s ticket, while George had bunkers of trawlers preparing for sea. gained experience of shore-side operations, we agreed that I should stay at sea, while he took charge of the beach. It was the time of the Phony War between Britain and Germany. Prime Minister Neville Chamberlain was engaged in frantic “Indeed, it was only after his death that George and I realised what a diplomacy with Hitler’s Reich in the ultimately vain attempt to good business head our father had, breaking away as he did from his

Time & Tide - The Craig Group Story brothers and starting a company more or less from scratch. This gave George and I the incentive to carry on expanding it further.”

TRAWLERS AT WAR War broke out in Europe in September 1939 and, by 1940, Germany controlled great swathes of the Continent, driving out allied forces, with the Dunkirk evacuation in September. Fishing continued on a limited scale as many of the boats were requisitioned for war duties. The rules were rigid and, on the East Coast, the fleet was allowed to fish during the hours of daylight only and to be at recognised anchorages by sunset. By contrast, West Coast-based boats could fish around the clock, but at no time were lights of any description to be shown. It was a horribly risky business, as David discovered first hand. He takes up the story.

“It was the early part of June 1940 and I was in command of the The Ben Asdale (A473). River Ness. We had been working for a few days on the west side of the Shetland Isles in the St. Magnus Bay area. Fishing had been reasonably good but, unfortunately, the wind swung round to the southwest, which was unsuitable for these waters. “Generally, if possible, it was helpful if any other vessels were in the vicinity fishing as you had a feeling of comfort and company. Most trawlers had little or no armament, mostly, in our case an old Enfield gun with 15 rounds only of ammunition. “As three to four other vessels were close by, we contacted one another by megaphone. Though all were fitted with radiotelephones, these had been sealed by HM Customs and tuned to the 2182 distress frequency. They could only be used in an emergency when the seal could be broken and the R/T activated. “It was suggested that, as it was the early part of the week, we should go to the east side for a day’s work and, those of us with a reasonable amount of fish onboard would proceed in company to Aberdeen, landing late week, in time to enjoy a long weekend at home. Braiding the nets. “Having decided on this arrangement we made passage up the west side of Shetland and set course to pass through Yell Sound arriving on the side near Fetlar. Half way through the sound the chief engineer informed me that a bottom end bearing on the main engine was heating up and, if we could stop for a short time, he would be able to deal with the problem. Because of the strong tide, we could not effect

15 an immediate repair, but would be able to, once we cleared the sound and had reached the east side. “I informed the other boats that we would be making a short stop so the engine fault could be repaired and would follow on as soon as we could. As the area we were going to fish in was approximately south- east, eight to ten miles from Fetlar, we watched the other vessels heading in that direction while we were lay two to three miles from land. The engine fault was soon repaired and we headed in the direction of the other vessels that were by then fishing. “We had reached a position six miles south-east of Fetlar and, as it was approaching the lunch hour and, having only a limited time to fish before sunset, we shot our fishing gear and started towing out towards the other vessels. Then, as the second fisherman came onto the bridge to relieve me for my lunch break, we observed a lone plane flying along the coast in a northerly direction. “We were now about two miles from the nearest fishing vessel and also the nearest vessel to land. Even though we had binoculars, because of the distance I could not identify the plane’s markings and, as it was flying casually along the Shetland coast, I assumed it might be one of our own planes on patrol. “I remained on the bridge observing its movements. Suddenly it altered course and headed for the open sea, then altered in a southerly direction and was now heading towards us. As it approached I recognised the plane’s markings and identified it as a German Dornier 17 bomber.” Having sounded the emergency alarm, most members of the crew were immediately on deck. River Ness was still fishing and making only three and a half knots through the water ... a hampered vessel towing a trawl that could take little action. As the Dornier flew overhead, it dropped three bombs. By then the crew were taking action to free the vessel from her gear by cutting the trawl warps. David Craig in his Royal Navy uniform in 1940. “The ship’s mate, James Christie, who had sailed with me a number of years and was a first class seaman, took charge of proceedings while I made for the wireless room immediately below decks in my cabin to break the seal and get the Mayday call for help away to Wick Radio. “Contact was made at 1.15pm on 10th June 1940. I gave our position and situation and was in the process of passing the telephone handset to the cook, who also knew how to handle an R/T set, when a call came that the plane was approaching again.

Time & Tide - The Craig Group Story “Suddenly there was an explosion and all I can recall was the horrible sensation of my right leg being caught on a beam or some object as the sea overwhelmed me. As I struggled to get my leg free I was slowly losing strength and gulping water. I made a further attempt to release my leg and shot to the surface just as the stem of River Ness, towering over my head, seemed to be descending upon me.” Fortunately for David, the dying ship slipped close by and disappeared below the surface. But then he was dragged below the surface by the suction of the plummeting hull. Then, miraculously, he shot to the surface dazed and possibly shell- shocked. He was also injured. “Blood was now coming from my right leg and I immediately thought that I had lost it. In fact, I had lost my right seaboot, which had been trapped when I was blown through the ships side. The Loch Maree. Fortunately it was only a nasty gash. I immediately got rid of my other boot and clung to some of the wooden battens that had floated clear of the vessel. “A voice shouted: ‘Is that you skipper?’ And, as I looked around, in a very dazed state there was James Christie swimming towards me in his lifejacket. I immediately enquired about the other crew members and was told that a few were clinging to the ship’s liferaft. But, as James swam towards me, intent on helping me join the others on the life raft, the German bomber returned, having strafed other nearby trawlers, and machined gunned us in the water, also shooting up the life raft, which sank. It then turned eastward and soon disappeared out of sight. “Fortunately the weather was in our favour - a light Force 3 breeze, no breakers, but a heavy swell. The other trawlers had by now released their fishing gear and were making towards land. George Bruce, skipper of one of them, threw a line to Jim and myself as he passed, pulling us both onboard. What happened afterwards I do not recall as I lost consciousness.” Skipper and mate were the only survivors of the sinking and, after arriving in Lerwick, both were looked after by the fisherman’s The John Morrice. mission. Later, David was invited to the War Office in London, met by Commander Halbrook, VC, and asked to give an account of the bombing and tactics used by the German plane in order that prompter action could be taken to protect fishing vessels caught in a similar situation to the River Ness. He then returned to fishing for a

17 short time aboard the Strathtummel, prior to joining the Royal Naval another ship be bought and that David would take command. The Reserve for the rest of the war. other two Craig vessels were still under Government control. Brother George remained in control of the company for most of Few active fishing vessels were for sale but one was the Copieux lying 1941 before he too was called up, joining the RAF and seeing active at Milford Haven in South Wales. She was examined and found to be service in Burma against the Japanese. in poor shape. The asking price was £12,500. Recalling the grim scene, David said it was obvious that a major refit was needed. At the time of his joining up, the company had only one vessel - Loch Equally, there was nothing else on the market, so the Copieux was Maree - fishing, with the others on active service, including the John bought for £12,000. D Fitzgerald, which had been bought as replacement for the River Ness. The Aberdeen fleet had shrunk drastically as most vessels had “Loch Maree had at least the same value and this gave me been requisitioned. The boats, whether fishing or on war service, were encouragement and incentive to take the risk and get the shambolic allowed operating and minor expenses along with depreciation. But Copieux fishing for a while before any extensive repairs and any profit was returned to the Government. There were no auctions, reconditioning of the vessel was carried out. You can imagine my the limited amount of fish landed being sold at a fixed price feelings when we stepped aboard, having served on naval vessels of a high standard over the previous five years. according to species and allocated to processors on the basis of their buying track records. “We stored the vessel and as the Welsh coal was reasonably cheap at 16 shillings per ton we took an additional five tons on deck in bags. Though George Craig & Sons had only one ship fishing, the Departing from Milford Haven we encountered rather rough weather company still had its chandlery, net store, painting and boiler as we headed up the West Coast. By the time we reached Cape Wrath, cleaning activities. It was a business that needed protecting and, prior all but six bags had been washed away, with as much water coming to donning his RAF uniform, George had successfully engaged through holes in the bulwarks as over the rails.” ‘Brocher’ John May, who had been discharged from the RAF due to ill health and had prior experience running small fishing boats out of Copieux was readied for sea in Aberdeen, shipping two trawls and Fraserburgh. Though May had no big trawler or chandlery spare gear. 30 tons of ice was shot into the fishroom prior to sailing experience, he successfully steered the company through the and running the gauntlet of German mines, a task made easier by remaining war years, with family lawyer Edwin Cormack keeping a knowledge of the fields gained by David during active service. 50 watchful eye. miles east of Aberdeen, Copieux shot her gear and started towing, alone, no other vessel in sight.

POST-WAR BONANZA “I felt isolated but undaunted. We towed for two and a half hours and, when we hauled, a huge bag of fish floated to the surface with 1945, war over and, discharged from service, it was time for David to quite a variety of species but mainly big haddocks. We ceased fishing get back to civilian life and pick up the reins of the business, which after the third haul because there was so much fish to gut and stow was no easy task. The start point was a debrief with Cormack, when it below. We gutted all night and through into the morning. After a became clear that a number of issues would have to be addressed and short rest, I decided we would take two further hauls and head home immediate action taken if the company was to capitalise on the post- in time for the market. The amount we were catching was amazing war vacuum and clear an £8,000 debt that had accumulated. and it was because the fishing grounds had enjoyed a five-year rest.” By this time, the Loch Maree had been fully written down on the It was a bonanza! But, five months on, the decision was taken to stop books, with Willie Wood still in command. He was an above average fishing for a month. It was time to get the sadly neglected Copieux skipper and had during the war years fished mainly in the waters and Loch Maree properly reconditioned. Nonetheless, by the end of around Foula gaining for himself the moniker ‘Foula Ghost’. The that financial year, the two vessels had done so well that the bank debt decision was taken that he should stay. It was also decided that had been cleared and George Craig & Sons was back in the black.

Time & Tide - The Craig Group Story Presentation on retirement for Joe Bowie in 1947. Left to right – Alex Still (1st Rigger & New Forman); John Gowie (Manager of Boilercleaners & General Maintenance); George Craig; David Craig; Joe Bowie (Net Fixer); John May (General Manager 1941 – 1945); David Ogilvie (Foreman Painter); Miss Cook (Clerkess); Miss Harold (Retired at 60 after 44 years); Jimmy Gordon (Brother of entertainer Harry Gordon).

Early 1946 saw George return from active service in the Far East. He he earned the nickname ‘Turbot King’. Not that the Morrice was fast immediately took control of the office and onshore services. Skipper ... nine knots flat-out ... slow enough to be dubbed the ‘Slow Boat to Joseph Bowie was also back, which meant another ship had to be China’. bought for him to work. It happened that North Star Steam Shipping Company, which was many years later acquired by Craig, had the The company’s next acquisition was a more complex affair and trawler Strathglass for sale. She was in reasonable shape, was bought involved the JW Fitzgerald, one of the many trawlers requisitioned at and skipper Bowie proved his worth. the start of and during World War Two. This vessel had been extensively altered for boom defence work. Post war, the Government James Bowie another Craig skipper in the pre-war years, returned to the fold, so the Kinnadie was bought off Richard Irvin & Sons. Then decided that many such vessels should be ‘acquisitioned’ ... offered the excellent John Morrice was bought. The vessel had been built for back to former owners for a nominal sum. While David was away on fishing with long-lines, but was later converted to a side trawler. one of his trips, George was offered the Fitzgerald for just £5. This David worked her, hunting for high value turbot, lemon sole and vessel, along with others, was anchored in Loch Ewe on the West plaice. The partnership between man and boat was so successful that Coast.

19 The George Craig going over the Aberdeen bar. The Mary Craig with the new look bridge.

Back ashore he quizzed his brother: “I asked: ‘Where’s the catch?’ A work. Kinnord was renamed River Ness. Having built the fleet up to decision was taken to purchase the vessel and, in the event of being 10 trawlers, attention turned to growing the chandlery, net and too costly to convert back into commercial service, then it could be rigging store and ships’ painting and boiler cleaning department, all scrapped for a few hundred pounds. Inspection revealed the propeller of which needed skilled workers. Because Craig lacked a fish-selling to be very badly damaged, which meant the vessel had to be towed to department, the decision was taken to barter its skills in return for Peterhead where Livingstones was interested in carrying out the refit fish auctioning services with various Aberdeen providers. after inspection. “As the fleet grew, so the net and rigging store expanded, with twelve “When hauled out at Peterhead, inspection revealed that, in addition women employed as net braiders, making various parts of the trawls, to a new propeller, a number of major costly alterations would be mainly with manila twine,” says David. “We also had a number of required if the Fitzgerald was to return to fishing, including replacing outside braiders ... women making trawl bellies, baitings and cod- the deck planking and installing a trawl winch, gallows and much ends from home. else. “Also employed were eight to ten net fixers and ten or twelve riggers “We decided not to go ahead with such alterations as it would cost and, as this department grew, we had to buy larger premises. too much. Livingstones offered to buy the vessel for £500 with a view Opposite our office on North Esplanade East was a suitable place that of converting her into a line boat, so we sold her. We also sold the would become our net loft and rigging department.” coal in her bunkers for £150, which covered the purchase price and Craig was not the only company growing rapidly. The entire Granite tow from Loch Ewe. We came away with a £500 profit with which to City fleet was riding a wave of prosperity on the back of burgeoning plough into another ship.” North Sea fish stocks. There were more than 200 ships operating by That programme went ahead relentlessly - Strathdevon, Kinaldie, 1957, mostly old coal-fired steamers, but with a scatter of newer oil- Ben Brackie, Ben Heilem, Kinnord were all purchased and put to fired units like Avondow and Dunkinty.

Time & Tide - The Craig Group Story THE BIG MODERNISATION By the late 1950s it had become obvious that much of the Aberdeen fleet had to be replaced. Steam was outmoded, expensive and dirty; the future lay with diesel - modern, clean, economical. And transformation it was! Over a period of little more than 10 years, the Granite City’s fleet of trawlers was totally modernised. Steamers were swiftly dispatched for scrapping ... largely displaced by sleek motor vessels. The Craigs were at the forefront of that change which for them really started with the oil fired steamers Milford Duke and Milford Prince for Milford Haven. At 120ft (36.6m), they were 10-15ft (3-4.6m) longer than the normal Aberdeen boat. They might be ideal for the Icelandic fishery. But a trip to South Wales, accompanied by superintendent engineer of the day, Leslie Symons, told the brothers otherwise. A first casual evening inspection suggested the Duke and Prince would indeed be right for the job. But Symons blew the dream apart next day with the question: “When’s the next train home?” On both vessels, he had found the boiler crowns to be badly pitted and, in one case, bulging. There had to be a better way of modernising the Craig fleet. It was just one of those things that the brothers had to cope with in business, in much the same way as they had got over the death of their mother in April 1954. On the other hand there were plenty of happy moments, not just when a ship came home, ‘full to the gunnels’ with fish, or a new vessel was added to the growing fleet, but when something truly family took place, like the wedding of sister Lydia to George Bell of Greenock in 1957. This is the year that effectively marks the advent of the modern diesel trawler in Aberdeen. It would typically be 100-120ft (30.5-30.6m) long and take 9-12 months to build. But engines would turn out to David Craig at the wheel of the Mary Craig. be a nightmare as owners had to take whatever make they could get and this meant a company had to carry multiple sets of spares. Engineers too came at premium. “George Bell came into the family and the company with a wealth of knowledge being an experienced and qualified engineer who had sailed on merchant vessels and also cruise ships,” reflects David. “His knowledge on engines and their performance benefited the company, especially on the new-builds which we were just about to embark on.

21 “George, Lydia and myself had taken the company a long way. Apart from our weekly wages and token directors, any surplus was salted away for future investment in further vessels. “Various types were being built in the 1950s and most of the shipyards were fully employed. This gave us the opportunity we needed to consider the type of vessel best suited to our needs. “At this stage I commanded the new River Ness (ex Kinaldie) and was doing rather well. We were contemplating a new-build, which meant hard and important decisions had to be made. Two newly built wooden trawlers had just joined the Aberdeen fleet, one of which was the Fairway. We went to see her. George was very eager to build a repeat. It would be cheaper than steel and could be delivered within nine months. But I was not impressed with the wooden hull for trawling; anyway the deck winch was belt driven off the main engine. “It happened that a steel vessel of 105ft (32m) was being built by Livingstone for a Granton company. But a month before delivery the company concerned had failed to make the last two stage payments and rejected the vessel. George had been informed about this situation, and on arriving back from sea I was hastily taken to Peterhead. I was very pleased with what we saw and we would take delivery in a month - late December 1957. We did a deal and the ship was named George Craig after our late father. “December came and along and with my crew we arrived in Launch of the Grampian Hill by Helen Craig (second left) Peterhead to accept the vessel. We then proceeded to Aberdeen on in 1961. Christmas Eve, fishing gear, warps and general stores were shipped and we headed to sea the day after Christmas. Orders from George were to make a landing by the end of the month to qualify for tax allowances on the vessel. We landed on the 31st December with a catch of 303 hundredweights of haddock and cod which fetched £1,232 for a six-day trip - over £200 per day which was well above the average at that time.” Although very pleased with the seaworthiness and fishing capabilities of the vessel, and George more than satisfied with the money for the catch, David was totally dissatisfied with the performance of the trawl winch, which was belt driven from a lay shaft taken off the front end of the main engine and engaged by using a lever-operated tensioner. Not only was there excessive belt wear, which led to lost fishing time, Edna Craig, wife of Mr George Craig, launches the Grampian the winch-drive system had a knock-on impact on alternator Glen in 1960. performance. As the alternator was driven off the main engine, if

Time & Tide - The Craig Group Story there were problems with belt-induced stalling, this led to power the crew. Requesting permission to issue the bottles or at least give fluctuations. In turn, this would affect the accuracy of the Decca them a dram each, I immediately showed my authority and told him Navigator system that was by then being installed aboard most in no uncertain terms that no alcohol of any nature was allowed while leading edge trawlers in the Scottish fleet. On the other hand the at sea, but when we arrived back in port I assured him they would electrically-driven winch alternative also had problems, shorting readily drink his health. Fortunately the weather behaved itself and frequently in rough weather. So David was forced to live with what he we finished our trip on Saturday with a gross topping the £1,000 a had. record for a weekly trawler.” It was while in command of the George Craig that David was asked In The Press and Journal, some time in September 1958, Scott by his brother whether he would take Northeast architect Tom Scott Sutherland wrote: “Never again will I brag about being immune from Sutherland on a trip. They were great friends and Scott Sutherland storms at sea. Recently, the North Sea humbled me for the second had expressed a desire to go out on a fishing vessel. He was well- time in forty-six years. known and respected in the city and was responsible for funding the “Blithely, on a drab Monday morning, I clambered aboard the new Scott Sutherland education and art building in Garthdee. But there Aberdeen trawler George Craig. Although lashed by rain, she was tidy was a surprise. and shipshape, as was her crew.” “What George did not mention to me was that Tom Scott Sutherland While the company and its ships were indeed shipshape, the best had only one leg, due to an unfortunate accident as a child. After the description for trawlermen in those days was that they were characters introductions were made I was rather apprehensive of him joining us all. While supremely professional at sea, getting some of them aboard on this trip as it was a rather rough day, with sou’easterly winds, and a and away was quite another story, as any ship’s runner of the day nasty sea running at the harbours entrance. Having just one leg how would have testified. would he cope with the heaving motion of the vessel? Unfortunately a nasty incident occurred during the festive season of “I explained to him about the weather, which he accepted but still 1957-58 involving the George Craig. At that time, Hogmany rather wanted to sail with us. It happened that most vessels declined to sail than Christmas was celebrated, with Aberdeen’s Fish Market being that day, but I had made my decision and, on the Monday morning open on Christmas and Boxing Day and auctions staged both days. we sailed. As a result, fishermen preferred to be at home over the New Year “Crossing the ‘bar’ at the harbour entrance was something Tom never period. forgot as the ship punched through the broken water where the Dee In turn, this meant that most of the fleet was home, tied up, with the meets the salt North Sea. He suffered from seasickness for the first 24 exception of five to six vessels that fished over the festive season and hours but, as the weather abated, he enjoyed the experience. The generally landed on the fourth day of the New Year when the fish fishing was very good and I decided to land on the Wednesday. With Market reopened and high grossings for the catch were to be had. little fish on the market because of the rough weather, we received very good prices and grossed £743.” As there were over 200 vessels in those days, berthing was difficult and boats were crammed in at Albert Quay, Torry Dock, the fish That was not the end of the adventure. market and others at the commercial dock. George Craig, along with “George came on board and, after a brief discussion, Tom requested others, was moored at the fish market, nose on to the quay, which was that he came out with us again and finish the trip as we had fully of steel open-pile construction. intended to land on the Saturday. Unknown to me while I had been It happened that George Craig was fitted with a whaleback whereas on the quay Tom had received some packages from his office along the older steamers had open foredecks. In the earlier hours of New with some urgent mail. Year morning the tide was at low ebb, which meant that all vessel “As we left the harbour Tom congratulated me on our great trip and stems were lower than the market floor. As the tide flooded, a vessel mentioned to me that he had a bottle of whisky for each member of called the Strathallan lying along the port (left) side of the George

23 Craig, having no whaleback, got wedged under the quay. Efforts were made to release the vessels, but without success and, as the Strathallan listed, her forward starboard trawl gallows became foul of the Craig vessel’s port gallows. By then she was taking in water and sank, taking the almost brand new motor trawler with her. “When George telephoned me at home to let me know what had happened I thought he had taken leave of his senses. How could the George Craig have sunk when she was in port and not at sea! Of course she was salvaged, fully dried out, refitted and commenced fishing again, but somehow we felt rather apprehensive of the vessel’s future and decided to sell her.”

ACQUISITIVE TRENDSETTER At that time, the Craigs had a further new ship under construction. She would be a real mould breaker, with all the features that set the mould for steel side trawlers in Scotland until the advent of stern trawling. Having the experience of the George Craig a number of important features were changed, the most noticeable being the outward flared wheelhouse design, otherwise known as lantern style. The George Craig lies submerged at Aberdeen Fish Market, having been dragged Good looking and practical, in Aberdeen it was dubbed the ‘new look down by neighbour vessel Strathallan. (Courtesy of The Press & Journal) bridge’. The trawl winch was David’s main concern as neither belt nor electric drive appealed. There had to be something else. “By chance, George was very friendly with a John Lockhart who was employed by Vickers Armstrong, was an engineer by trade and who was involved in construction and building precision equipment, mostly on naval vessels. Having explained to him the winch problems, he took it on as a challenge for him and his company and asked to spend a trip with us at sea. From his experience on various types of winches and engines he felt a suitable independent and stable winch could be built.” The new ship was under construction at Richards of Lowestoft under the management of a Mr Herring. She would take nine months to build and was to be named Mary Craig in memory of the company founder’s wife. The winch had not yet been ordered, though one could be quickly bought, should Vickers not come up with a solution. About six months down the line Lockhart phoned to say that they had now built a diesel winch, and felt this was the answer. The deal was that Vickers would install the winch and piping for free, and if the winch proved successful, Craig would pay half the price. If it failed, they would remove the winch and piping free of charge and

Time & Tide - The Craig Group Story Lydia and George Bell at the launch of the Grampian Monarch. David and George Craig aboard the Grampian Glen.

pay for the installation of an electric winch. It was a cleverly arrived from Richards, congratulating us on our successful trip. As for engineered deal. me, I was very satisfied with the vessel’s performance and her sea Mary Craig was launched by Lydia in late 1958, setting sail from keeping abilities.” Lowestoft at the end of March 1959. All eyes were on this vessel with Mary Craig, whose maiden catch fetched £1,418 at auction on April her new look bridge, diesel winch and other mod cons. Trials off 9th 1959, was followed by the 115ft (35m) Grampian Crest, built in Lowestoft to test the main engine and equipment proved satisfactory 1959 at Hessle on Humberside. Another two motor vessels of similar and, together with brother in law George Bell, David Craig set sail for size were built at John Lewis & Sons late 1960 and came into service familiar fishing grounds 70-80 miles east of Aberdeen. in 1961. Practically every shipyard was fully booked, but what “Clearly, it was my ambition to get a reasonably good catch on our determined delivery was main machinery, as its availability was so maiden voyage to prove the fishing capabilities of the vessel and of much of a lottery at that time. the winch modification. We were very much in the limelight. While the first two new vessels were named after the parents, the “But, after the first haul, our superintendent, George Bell, reported a George Craig incident of 1969 led to a change of policy, with all new- fault with the main engine - a seal was leaking, which meant we were builds given the Grampian prefix to their names thereafter, which losing lubricating oil. Fortunately we had enough onboard to allow us practice continues today with the company’s fleet of offshore support to continue fishing for a time. vessels. “As luck would have it we encountered good fishing of both turbot During the rebuilding of the fleet, a grant and loan scheme was and flat fish and, with no other fishing vessels in the vicinity to share introduced by the White Fish Authority that covered 25% of our spoils, we landed in Aberdeen with an excellent catch. A telegram building costs, plus a 50% loan over seven years at 4% interest was

25 John Lewis-built Grampian Glen (A518) just after her launch. Fish galore aboard the Grampian Glen. available. As fishing was booming, a number of new companies were an advisory capacity to instruct and show the skipper how this type of formed, with John Lewis and Hall Russell winning most orders. winch worked. George on the company’s behalf took shares in Near Water Trawlers “With engine trials complete, we headed some 10-12 miles south-east and Scottish Motor Trawlers. The latter was floated with two vessels - of Aberdeen to an area of deep water known as the Dogs Hole. There, Red Crusader and Blue Crusader. Sadly, the latter was lost on a water depths around the hole are 30-40 fathoms. But the hole, which fishing trip to Faroe during severe weather with all hands lost. stretches a mile or two, is up to 90 fathoms deep. Other Craig vessels ordered at that time were the Lewis-built “This was an ideal area to shoot the net; it allowed the 300 fathoms of Grampian Glen and Grampian Hill, which started fishing early 1961. trawl warp on each winch drum to be streamed out and wound back For the Glen’s trial, it was planned that the vessel would be stored for on properly when tensioned with the fishing gear, and it tested the Faroese waters as, at that time of year (February), it was ideal for cod winch’s capabilities. I had intended to shoot the trawl, tow 5-10 minutes, and haul. The skipper would do the same, allowing enough and haddock fishing in that area. time to catch enough fish to give to the various representatives. “The Glen’s skipper, Joseph Bowie was eager to get going and “On shooting the trawl, I observed very strong soundings on the arrangements were made that, upon successful completion of the sea echometer. It was either a very heavy show of plankton or fish, so we trials, all yard and other representatives aboard would be taken off by towed through these ‘marks’ for about 20 minutes and then hauled. It tender before the vessel headed for the Faroes,” remembers David. turned out to be a huge catch of cod, I turned to skipper Bowie and “These vessels had diesel winches like the Mary Craig’s and I sailed in asked him to do the same and that we would land the surprise catch

Time & Tide - The Craig Group Story the following morning. This he did. We duly landed and the reps acquired the remaining two thirds and took ownership of the Scottish walked ashore with some superb fish. The catch was 156 King, Scottish Queen and Scottish Princess. hundredweights (7.8 tons), which fetched £766 at auction. It was a The firm had by then had expanded to some 10-12 modern vessels record for a trial trip in those days. with a number of older ones phased out. This hit the boiler cleaning “As the company was building a number of vessels under the grant part of the business though the firm continued to clean a number of and loan scheme, I continued fishing, taking a number of new vessels boilers on shore at Grandholm Mill, Banner Mills and similar places. out, generally for a trip or two before then handing them over to one It was also decided that a fish-selling department was needed as of our competent skippers.” bartering had become less prevalent. But becoming a good skipper involves more than passing exams. You “As luck would have it, an opportunity arose which was a challenge have to be a born hunter with the driving force, with the experience for us and a rather bold step to take. The North Star Steam Fishing and charisma to pull it off. Company was considered an Aberdeen leader, alongside others such as Irvin’s, Strath Company, Walker Steam Trawler Company, Dodds “It was company policy that, as younger men joined our vessels and & Co and United Fish Company. There were about 14 separate after their training, we would encourage them to go for their operating companies working out of the port. certificates. If we saw any with ambition and desire to go further we always encouraged them to sit for their mate’s ticket as this would “North Star was owned and managed by the Harrow family. Founder lead to them sailing with one of the top rated skippers. John Harrow had died and his son Beverly became managing director. They had a very efficient fish-selling department and Beverly “Top skippers were in a class of their own, self made, ambitious took an active part in the auctioning of the fish. They also owned hunters who had developed their own fishing techniques. A friendly four oil-fired steam trawlers - Avonriver, Lord Sands, David Ogilvie yet competitive atmosphere developed between skippers in the and Avondow, some capable of fishing Iceland. Further, Beverly was company, helping each other on the fishing grounds was respected also chairman of the Aberdeen Fishing Vessel Owners Association. and codes were introduced to disguise information being passed between the boats, and between the boats and the beach.” “Unfortunately in his early 60’s he took a severe heart attack and died a year later. The only family he had were two sisters who took control Most skippers kept a ‘black book’ filled with their own information of the company, appointing head salesman Alfred Kynoch to manage on various fishing grounds, Decca Navigator readings and paper track the business. After six or seven months the sisters decided to sell the rolls, and so forth. Today’s skippers have it all on computer and can company as a going concern but, before advertising the company, accurately retrace tows, working between wrecks and other obstacles Kynoch approached George as they had done business in the past and with ease. thought we were a suitable buyer. Although the Aberdeen fleet was dramatically modernised “When I came in from sea George told me of the approach and, after throughout the 60s, some found the changes hard to handle. Boats some serious talking between us, particularly about the larger boats were by then costing £100,000-£130,000 depending on size and and the fish selling department which we were desperate to start, we interest rates on Government loans. Bank loans became a burden and decided to take a chance and buy the company. We paid £56,000, a moratorium of two years on loans was granted to those who wished which was quite a sum of money in 1965. It was also a challenge for to accept. our management. Some packed it in. One such company - Near Water Trawlers - “We were now among Aberdeen’s biggest fleet owners, with 16 decided to cease operating because of financial difficulties. But, as vessels, a fish selling department, rigging and net store, ship Craig was a minor shareholder, the decision was taken to adopt one of chandlery and a painting department. The main company stayed at the firm’s five ships, the Countesswells. Then Scottish Motor Trawlers North Esplanade East while the North Star office remained in got into financial difficulties. Craig, having a one third share, Commercial Quay.

27 The Avonriver. George Craig Jnr.

“After a few months, Kynoch decided to retire, so we approached a decision to come ashore and get involved in vessel operations. He was Patrick Lynch, an experienced fish salesman, who readily accepted the invited to become a director of Aberdeen Fishing Vessels Owners post; Pat later became managing director of the North Star Fishing Association and, in 1968 was appointed a member of the part of the business and, when the company became involved in reconstructed Herring Industry Council. North Sea standby vessels, he became a tower of strength.” Then the fleet was further reinforced when a pair of Boston boats A couple of years later, it was decided to phase out the oil-burners and from Hull came on the market. Boston Hercules and the Parkroyd replace them with diesel vessels. An opportunity arose when both the were both bought. By this time, dieselisation of the Aberdeen fleet Admiral Jellicoe and Admiral Drake came on the market, both very was well advanced. There were more than 200 ships of which roughly good 125 footers (38m). Craig’s top skipper then was a Robert Catto 20 worked Iceland, North Norway and even Bear Island; 120 were who took command of the Jellicoe, while skipper Ferguson had the classed middle water - North Sea, Shetland and Faroe; and the Drake. Both fished Iceland and Faroe with great success, working remainder were inshore. through HKF Trawlers Company, which was another Craig While the crews of inshore boats were eventually allowed to discharge acquisition. their own catch, the bigger ships were obliged to use shore labour - lumpers or porters. They were members of the National Dock Labour Then the Malvern Fishing Co. came on the market. It owned one scheme and were very dominant on the market floor as they vessel of the larger type, the 140ft Malvern. Johnnie Bruce, a well- controlled the discharge of vessels and would from time to time come known skipper at that time, took command and fished waters out on strike causing havoc and discord in the industry. This was bordering Northern Norway with significant success. hardly the sort of practice that fleet owners such as the Craigs were happy about! DAVID SWALLOWS THE ANCHOR “It was accepted practice that vessels which arrived early were entitled By the late sixties the company had increased in size so much and to priority berths at the top of the market, receiving first call on management was under so much pressure that David made the labour, with all other ships discharging in order of arrival. This was

Time & Tide - The Craig Group Story rather inconvenient for the inshore vessels. On many occasions they seaman when sober. I asked him how this escapade had started and might berth at 2am or 3am, but might not get labour until late in the his answer to me was: ‘Skipper, I’m not sure what I drank. I cannot morning, so losing the opportunity to get back to sea that day. recall anything. All can say is that I am really sorry. I suggest you lock Unfortunately they were not allowed to land without some assistance me up in jail and throw away the key.’ I took the Mary Craig back from the porters, which caused much unrest. To overcome the into Aberdeen where the police drove the offenders away.” problem these vessels volunteered and paid for their allocated labour The Press and Journal headline the following day proclaimed: “Mary and in many cases they discharged their catch themselves.” Craig On Way Home Under Tow”. Craig said in a statement issued at Then, it was quite common for the mile-long fish market to have two the time that their vessel had “experienced some trouble with her morning sales ... full and full again. It was fast moving and the last crew”. Five were subsequently jailed for piracy on May 28th 1971 at thing anyone wanted was industrial action. But discord between Aberdeen High Court. Three judges rejected a subsequent appeal porters and employers was to flare up again, leading to a short strike, against the sentences on July 22nd at the Court of Criminal Appeal which led to vessels being discharged by crew members and office in Edinburgh. staff working under police protection because of pickets. That was Drawing a line under this remarkable affair, Lord Milligan said: “It not the end of the matter as discontented fishermen were later to go may well be that what was libelled was not a particularly bloodthirsty on strike for eight weeks. This was in 1969. act of piracy but, on the facts, it constituted an act of piracy.” One of the most unusual incidents that ever happened to an Aberdeen trawler was the mutiny on the Mary Craig on October 9th SPUTNIKS AND BIG OIL 1970. The event was splattered all over the local media. The 70s dawned, clouded by mounting concern that the huge David retraces this remarkable incident, which took place while the quantities of fish being landed were driving down prices. In 1971, ship’s skipper was on holiday, leaving the mate in command. just as David was appointed vice chairman of Aberdeen Fishing Vessel “It was a beautiful day, a calm sea. The vessel was heading north and Owners Association, trouble flared up between Britain and Iceland, was passing Peterhead when it became apparent that some of the crew which wanted to establish a 200-mile exclusive fishery zone. It led to had been drinking and had become very drunk. They overpowered the famous Cod Wars, where Icelandic coastal patrol and naval vessels the stand-in skipper, mate and engineer, dropping them off at the harassed British trawlers. entrance to Peterhead and carried on in an easterly direction, This tussle was swiftly followed by many maritime nations setting knowing nothing about either navigation or the engineroom’s vital 200-mile zones, which meant both Iceland and Faroe became no-go functions. areas. It meant Britain now had its own 200-mile zone ... briefly ... “They carried on until they suddenly came to a stop, unaware that and it was possible to haggle limited access deals, including with the header tank, which was supposed to be replenished with fuel at Faroe. regular intervals, was empty. Their problems increased when the But, in 1973 we joined the Common Market. Prior to that, oil had generator stopped and they were plunged into complete darkness. also been found in the North Sea, both in British and Norwegian “Fortunately, one of our vessels, Coastal Empress, was in the vicinity waters. These two unrelated events were to have a massive impact on and instructed the Mary Craig’s crew how to get the ship moving the fishing industry, not least in Aberdeen, which had become again. They were by now sobering up and feeling very sorry for increasingly crowded with oil-related traffic. The erosion of fishery- themselves. related infrastructure quickly started. “Mary Craig was escorted back to Aberdeen Bay by Coastal Empress In 1972, a harbour representative approached a number of companies where two policemen and I were taken out to the vessel by pilot boat. along North Esplanade East, including Craig, with news that the area I knew the 2nd fisherman on board as he had sailed with me in the was to be developed for oil related work and all were given six months past. Taffy, as he was known to his friends was a very competent notice to vacate.

29 The Mary Craig returning to Aberdeen harbour. The crew being escorted off the Mary Craig by the police. (Courtesy of The Press & Journal) (Courtesy of The Press & Journal)

Fortunately for Craig, the firm’s rigging and net store was located on David’s son Douglas. The premises were turned into office space and the opposite side of the road, which would not be affected by the North Star was located there until 1979. development. Jim Dawson was then foreman-rigger, with George More ships were on the agenda: “We decided to build a stern trawler ‘Jumbo’ Fowler as net fixer. There was also Harry Brock, a rigger but for one of our top skippers to fish mainly in Icelandic and Faroese who had taken charge of driving the store’s lorry and who later waters. Grampian Monarch would be 150ft (45.7m) in length and became known as ‘Harry wi his larry’. (Richard Ross, today Craig’s have a 2,000 horsepower main engine. She was built at Bowling on foreman-rigger, served his apprenticeship under Jim and Harry.) the Clyde in 1972 and commissioned the following year. Under Bob Catto, the vessel made an excellent start to her career.” The painting and boiler cleaning division, under foreman-manager David Ogilvie, shifted to a bothy on Albert Quay, plus offices and That year, David was also invited by the White Fish Authority to warehouse became available on Russell Road just off of North become a member of the Research and Development Policy Esplanade West where the company stayed until 1979. Committee under the chairmanship of Sir Fredrick Brundrett and, in 1974 he became chairman of Aberdeen Fishing Vessel Owners North Star also had to find a new home. Happily a solution was Association. If that wasn’t enough, David was appointed vice quickly at hand as David’s late father-in-law, James Douglas, had a president of a new joint Scottish-English fishing federation ... the processing business at 187 Albert Quay which had been left to British Fishing Federation. Its remit was to fight tooth and nail to

Time & Tide - The Craig Group Story ensure joining the Common Market did not wreck Britain’s fishing After each side considered the situation and at the request of BP, we industry, though clearly that was already happening, with Hull and volunteered to come up with an alternative route not far from theirs. Grimsby’s distant water fleets, while pressure was starting to build on We were offered six months, but thanks to our fishing experience, a Granton and Aberdeen. chart was prepared in a few days that I then presented to Linning. In Aberdeen, more and more owners were building a new type of “This resulted in a fisheries committee being formed comprising inshore vessel of around 75-80ft (22.9-24.4m). The ‘Sputniks’ as they mainly fishing industry representatives who met with counterparts were nick-named because of the dawning space race, were first from various oil companies, also from government departments. It introduced in the mid 1960s, but only came into their own in the 70s paved the way to a good relationship between both industries, and with the advent of Spinningdale class, neat, capable square-sterned Matt Linning and I became firm friends. And when the Queen and built in some number. turned the valve on at BP’s North Sea headquarters in Dyce that set By now, offshore oil had become part of daily North Sea and Forties oil flowing ashore, both my wife Helen and I were at the Northeast Scottish life and that industry had adopted a rather inauguration.” ruthless approach when it came to luring skilled seamen out of the In a bid to deal with the growing problem of oilfield infrastructure fishing industry ... fat pay cheques. Pressure was so great that criss-crossing fishing grounds, and debris, a compensation fund was Aberdeen owners set up a registration scheme along with a training set up and run by the industry, with recompense made to fishermen programme to attract fresh blood, including school leavers. The only when they produced evidence of damage or loss. The maximum Transport and General Workers Union representing the men compensation payable was 80% of the value of the claim. A further collaborated fully and David chaired the training committee. national initiative was the so-called Fisheries Offshore Oil Around 4,000 fishermen were put through the scheme and record Consultative Group, which involved fishing industry, government cards were kept on each man’s progress on training, upgrading and departments, Trinity House and oil company representation. Also in discipline. the Grampian area, the Grampian Regional Council Fisheries Offshore, the potential for conflict between fisherman and oil Committee was set up in support of the fishing communities. companies grabbing the best bits of the North Sea was contained when both sides reached an amicable agreement on pipeline routes. BUT THE FAMILY BUSINESS COMES FIRST “Our first oil company encounter was with BP, which had located the In February 1977, David’s wife Helen launched the 130ft (39.6m) giant Forties field 130 miles east of Aberdeen,” says David. “Their stern trawler Grampian Chieftain. Immediately after that event the chairman, Matt Linning, the head of Forties and six of his advisors couple joined a six-man plus wives mission to New Zealand at the met our fishermen’s fishery committee which I chaired, also present request of the New Zealand Government. Issues on the agenda were representatives from the Government, Department of Trade & included how a 200-mile fishery zone could be managed, and how Industry and the Scottish Office’s Department of Agriculture, the Brits could help and assist develop a deepwater policy. Until that Fisheries & Food. point, New Zealand had concentrated on coastal fishing, catching species like red snapper, which were in high demand. In the deeper “They wanted to lay an oil pipeline linking Forties with a landfall at waters the Japanese were pursuing squid. Cruden Bay and the DTI had already stipulated that such pipelines had to be buried to a depth of one metre, which was a comfort to us. It was a brilliant trip for Craig the ambassador: “Now that the 200 But, on examination of the proposed route I immediately saw mile limit had been introduced they were becoming interested in problems as it passed through one of the most important and valuable deepwater species. They also wanted to improve snapper catch rates, fishing areas in the North Sea - the Turbot Bank. having invested in two pelagic vessels working purse seines. “Our fishery committee pointed out that much of that bank was solid ‘During discussions mention was made on the poor performance rock, so how could the pipeline be buried without blasting a trench? from these vessels and I was asked if I had any experience in that type

31 The Grampian Chieftain (A562), heading North East to the fishing grounds. of fishing and could I help in anyway. I said I had never sailed in such “We were invited to set up joint ventures with the New Zealand vessels but knew how they operated. So I was invited to meet the Government but the conditions of ownership were not to our taste. skippers and observe their catching techniques, which involved using But we did deliver valuable know-how on deep water fishing and spotter planes rather than sonar, which is what Scottish pelagic boats marketing. I was invited to participate in an expanding fisheries used. programme and was offered a contract, which I declined because of my commitment to the family company. “I was invited to join the spotter plane to observe this procedure. We identified a large shoal of snapper, probably 10-15 tons, and “My wife and I extended our trip in New Zealand by a further week contacted the boat. As the vessel approached the shoal I asked the and, as we were about to take our leave, I was approached by a pilot the state and direction of the tide, which I relayed to the skipper government fisheries official with a request from the Fisheries who had already dropped his buoy and was in the process of shooting Department in Perth, Western Australia. Might we be able to spend a his net. In my opinion he should have started on the other side of the few days with them?” shoal; by doing so the tide would have assisted him and more fish A similar mission was arranged the following year to Cape Town, would have been caught.” upon the introduction of South Africa’s 200-mile limit. The delegation did its work, advising on the types of trawl that But the core focus remained George Craig & Sons and how the should be used and on shoreside infrastructure, including cold stores business could be expanded, taking advantage of fishing while also to hold sufficient fish with which to develop an export market for exploiting opportunities to do with North Sea oil. Both Craig and snapper and other species like hoki, which astonishingly found its North Star were brought together under one roof when the British way onto the menu of Aberdeen’s Ashvale fish restaurant at the start United Trawlers (BUT) building became available at 207 Albert of the 1990s. Quay.

Time & Tide - The Craig Group Story BUT was an English consortium of companies that traded under one of accompanying the former British Prime Minister Ted Heath on a chairman. Some years earlier, the group bought the fishing division of fact finding mission to Aberdeen’s fish market. There were some 180- Aberdeen company John Lewis & Sons. Craig Stores was approached 200 vessels operating out of the port then, with 14 directors on the and it too fell to BUT. Craig was then approached with a very Association’s board. Meetings ground on in Brussels in a bid to tempting offer but George, Lydia and David rejected it on the achieve a satisfactory CFP agreement, crucially on how to share out grounds that they would be selling off their birthright. In any case, the lynchpin species - cod, haddock, whiting, flat fish and coley. the company was doing reasonably well. “As one of the advisors to our Fishery Ministers in Brussels, it became BUT was to fall on hard times during the 70s recession and broke up very obvious to me that the larger type of vessels of over 100ft would mainly due to operating larger class vessels in EU waters, which was find it hard to live in the EU pond. So-called third nation totally unviable. Its Aberdeen office was to become an ideal home for opportunities were scarce and only through reciprocal agreements Craig Group/North Star, who moved in during 1979. were Community vessels allowed to fish. Within a very short time the big wet fishers and freezer trawlers belonging to English owners were in trouble, leading to the demise of both Hull and Grimsby. In BATTLING FOR BRITAIN’S FISHING INDUSTRY Aberdeen at least half the fleet operated in Faroese waters, plus there Back to 1975-77, which was a very difficult period where talks in were a limited number allowed to fish Iceland.” Brussels to establish a Common Fisheries Policy were in trouble. The Amid the fishery strife were occasional bright spots, including David British industry was especially worried about Denmark’s large-scale being awarded the OBE in 1978 by the Queen for services both to industrial fishery, which was believed then, as now, to be inflicting the fishing and oil industries. Besides all the association and irreparable damage to juvenile white fish stocks. A shortage of federation work, he was also deeply involved with the Royal National haddock resulted in a ban on haddock landings for a time ... even Mission to Deep Sea Fishermen both as chairman in Aberdeen and a then! member of the Council in London. Much later, in 1998, he became British fishermen wanted relative stability and a 50-mile limit. They a patron of the Mission. were so angry that a demonstration to put pressure on the In August 1982, while en-route to her annual holiday at Balmoral, Government was arranged and more than 100 vessels sailed up the the Queen accepted an invitation to open the new extension to the Thames to the Houses of Parliament to impress on Ministers that a fish market, an investment which was an act of faith in the future. It 50-mile zone was essential for the survival of the British fishing was David’s duty to escort the Queen and Princess Anne at the industry.David was there in person. inauguration. “I, along with other representatives from Scotland, attended the Another highlight of David’s life was his growing passion for demonstration. One of our vessels, the Grampian Hill, joined the gardening, especially dahlias. Indeed, since stepping ashore thirty fleet of protest vessels. A meeting with Ministers took place during years ago, he has won many cups - not least at the Banchory flower which time our concern and fears were expressed.” show - plus a host of silver and bronze medals. That passion Herring fishing was also in a mess and a six-year total ban was slapped continues unabated. Indeed, he was one of the stars of the 2003 on the fishery by Westminster, except for the 2,000 tons a year Clyde Banchory event, notching up his 23rd consecutive win. summer fishery. So the herring boys pursued mackerel instead, But back to the problems, this time the Faroes, with which Aberdeen boosted by the public’s belief that it was a superb health food. has long had cordial relations. Britain’s joining the CFP made it Demand took off. doubly important for Scotland that a reasonable reciprocal fishery agreement should be achieved. But all agreements made were to be Local crisis meetings were held in Aberdeen with MPs Ian Sproatt, negotiated and agreed at Commission level in Brussels. Albert McQuarrie, Russell Fairgreaves and Teddy Taylor. All were sympathetic to the cause. David was elected chairman of Aberdeen Before any agreement was struck, a delegation would visit Faroe with Fishing Vessel Owners Association in 1975 and had the opportunity the purpose of negotiating areas permissible to fish and quotas on

33 various species prior to the meeting in Luxemburg. Those meetings average over the prior ten-year period. Vessels were issued quotas, were duly held at Torshavn the capital of the islands, chaired by their together with fishing licence. Linked to the quotas were vessel then Prime Minister, Attli Dam. Recommendations were then capacity units (VCUs), which indicate key capacities such as submitted to the Commission. But this was only a sideshow to the horsepower of each vessel. While not articulated during the early main act, hammering out a CFP that might be workable, most of all years of the CFP, capacity later became and remains a burning issue, to the Common Market’s, (or EU’s), then nine member states, as the Scottish fleet is further reduced in size in line with diktats from though also key to external parties like Faroe, but far more Brussels. importantly, Norway, which was keen to access Community herring Producer Organisations (POs) were then set up to manage and and mackerel in return for continuing to allow cod and haddock regulate the quotas to each vessel on a monthly basis. The catching more or less as before. administration of each PO comprised members from the catching Leading the UK in the CFP negotiations initially was John Silkin industry who would meet at regular intervals. Vessels could join QC, who certainly supported the fishing industry and fought for whichever PO they wished, but could only leave to join another PO their cause. Meetings were regularly held in the EU building in at the end of a yearly term having first given prior notice. Vessels Brussels, starting at approximately 9am, with Ministers only within each PO submitted their quotas, which were then put into a attending the meetings while the advisors met in the corridors, in common pool and shared out to each vessel in the scheme every other words lobbied. David sat on the fisheries committee that had month. been set up to interface with both Ministers and Eurocrats. He represented all Scottish trawler owners through the British Fishing As predicted, soon after the CFP was created it became apparent that Federation. larger vessels were totally uneconomic and the situation would get worse as more countries joined the EU. 1985 saw Spain and Portugal “As the UK had the biggest stake in the EU’s pond, we were adamant join the Community via the Treaty of Accession. Fortunately for that the future of our industry was to be assured,” says David of these Britain, the CFP had been agreed prior to their entry, which meant exceptionally tough talks. “On all occasions the Ministers would the Iberian sisters could not enjoy full access to community waters consult us on proposals and, after consideration, if we decided to until 2002. decline and with the Ministers’ approval, a vote would be taken. It would go eight to one against. For a while in Aberdeen, it seemed that the Sputniks and smaller boats were viable but, with quotas reducing, most vessels of the larger “After a time it appeared to us advisors that most countries were class became totally unviable and by 1986-88, nearly all fleet owners happy with the proposals - especially with the UK disagreeing - as the in Aberdeen had either scrapped or sold their vessels. By 1989-91 policy would mean no restrictions or quotas and every country would only the John Wood Group and Craig had any fishing vessels have the liberty to fish at will. operating and the owners association had only the two companies in “By then the UK Fishery Minister was Peter Walker and he membership operating three stern trawlers each. negotiated and fought a good case for our industry. Finally, in 1982 UK fishermen, especially the Scots, were deeply suspicious of Spanish the CFP was agreed among the then nine EU member states and intentions and, after various meetings in 1990, the Hague Preference signed to last for a period of twenty years. We, as advisors, were agreement was signed, which gave the industry coastal state satisfied with the agreement as at least 65% of the North Sea haddock preference and relative stability was established, though this is again would come to us, along with other protected species like cod and under threat as a new CFP is thrashed out. whiting.” By 1993/94 pressure from both Spain and Portugal to have full access continued and in 1996 the Maastricht Treaty was signed. This meant CFP IMPLEMENTATION OPENS PANDORA’S BOX the end of all national discrimination and that Spain and Portugal A Total Allowable Catch (TAC) was agreed for each country. Also a now had full access to the CFP. But they could only fish in waters quota allocation for each state had to be agreed based on their fishing according to their historic performance, which meant they remained

Time & Tide - The Craig Group Story The advent of the Common Fisheries Policy created a demand for the ‘Sputniks’ class of vessel like the Grampian Cairn (A346). effectively barred from the North Sea. Nonetheless, Maastricht made both Spain and other EU members the opportunity to purchase a big impact as approximately 4,000 additional vessels entered the much sought after UK licences and quotas, something the Craigs pond. found worrying. Most Scottish fishermen have come to dread the annual EU quota “Within a number of years of the CFP being implemented, almost haggle and, as threatened by Fishery Commissioner Hans Fischler, 20% of the licences and quotas had been bought by member states. the late 2002 negotiations delivered a devastating blow, with massive This caused concern both in the UK industry and at Government cuts, especially to cod allocations, and further forced level, so much so that action was taken against the aptly termed decommissioning. ‘quota hoppers’ that worked UK quotas under an alleged flag of convenience,” reflects David grimly. They were banned from The annual haggle uses as its start point an assessment of fish stocks operating these quotas for a year. But Spain and others fought back, based on scientific evidence from which quotas are adjusted. This dragging Britain before the European Court. The judges pronounced process led to licences and quotas becoming very sought after over the that the UK Government was at fault and had to compensate the years, as, increasingly, a vessel could not fish without either. vessels that had been banned. The cost was £100million.” Under the rules, an owner or skipper could sell his vessel complete Instead of getting better, CFP management got worse and a black with licences and quotas to anyone in the community and this gave market in prime North Sea fish emerged. By 1997 the European

35 Commission, aware of the serious over fishing due mainly to excess capacity, introduced Multi Annual Guidance Programme (MAGP) targets. It meant that all fishing member states had to reduce fishing effort by at least 20% per vessel and that, when this was achieved, then member states could qualify for building grants for new tonnage. While UK fishermen were reluctant to reduce capacity, the Government introduced a scheme of paying for the value of the vessel only, with owners allowed to retain both the licence and quota. It was then possible to aggregate VCUs to build bigger vessels, but with a 10% capacity penalty. The idea was that fewer, more sophisticated boats would be built, while also reducing capacity and fishing effort. But it was clear by 1998 that MAGP targets were not being achieved and the ‘black fish’ trade rocketed. While this put money in the back pockets of fishermen prepared to step over the legal line, so much illegally landed fish was flooding into the market that the prices fetched at auction for legally landed fish fell. To counteract some of these problems, designated landing ports were introduced for white fish to complement the system that had for some years applied to pelagic landings, meaning that no fish could be landed except at these ports. Also, the mesh size for UK whitefish nets was increased to 100mm. In 1999 satellite surveillance was introduced whereby all vessels of 24m length and over had to carry this equipment. This was so Brussels could monitor fishing effort in a bid to safeguard the quota system. Quotas were also dramatically reduced for all member states - 39% on cod and 18% on haddock. Naturally, this was unacceptable as far as the Scottish fleet was concerned and the Hague Preference was invoked. That way, an additional 7% was secured, so helping to underpin the relative fleet stability that had been briefly achieved. Could things get worse as the new millennium was celebrated around the world in style, even in Aberdeen where its citizens crowded into Union Street for a feast of fireworks? For many fishermen battling The Grampian Hill (A463) sails under Tower Bridge as part of the armada with growing debt, thoughts were more likely focused on how to stay supporting fishermen’s demands for a 50 - mile UK limit, 1977. afloat in the face of mounting EU scientific evidence pointing to a possible collapse in North Sea cod stocks. They said so in 2000 and repeated the warning again in 2001 and 2002. Quota reductions were implemented and, in 2001, there were spring closures in the North Sea that were calculated to protect breeding fish from being caught. If they could spawn in peace, there was a chance

Time & Tide - The Craig Group Story that stocks would begin to recover. Mesh sizes were increased to 110mm both for the North Sea and West Coast, and 120mm was implemented in Norwegian waters. The Government made £25million available for decommissioning in the Scottish fleet, with around 100 mostly older vessels being broken up. 2002 was a critical year for Scotland’s fishing industry as the CFP, signed in 1982 for 20 years, reached its end. Intensive talks ran throughout the year, with mounting concern over what Spain’s real intentions were, as if there was ever any doubts! During the year problems of over fishing the deep water species were discussed and after deliberating for a period it was decided that 20% of these stocks would go to the UK and 80% to the others in the community, primarily the French whose allocation was based on prior track record. This had an immediate and devastating impact on Scots fishermen who have in recent years invested in tonnage capable of fishing the deep waters west of Shetland. A number of first division vessels have already been sold away, with many more to follow. An outline of the intended new fishery regime, described by Commissioner Fischler as taking a long-term, responsible view and which would give fishermen a greater say in the CFP management process, was presented, generating much dismay among Scots fishers. Fischler’s objective is to take an even tougher line on matching fleet capacity with stocks. Just as a result of the December 2002 annual quota talks, Scotland faces a massive £40million decommissioning programme in the current year that will virtually decimate the already depleted whitefish fleet. In addition, a 15-days at sea per month limitation has been imposed, with quota cuts of 45-50% The Queen opens the new extension to the fish market in 1982. David Craig is implemented. followed by Ministers Malcolm Rifkind and George Younger. How this ultimately affects Craig Group’s fishing interests has yet to be fully determined. The European Commission claims the new CFP will help establish the level playing field that is needed for the future. But the policy has yet to be finally agreed and implemented.

CANNY CRAIG RIDES OUT THE STORM With such a trail of devastation, it was essential that the George Craig group diversified into the offshore industry in the 1970s, utilising not only vessels that might otherwise have been sold away or scrapped, but also other services that could have been sold or shut, such as rigging and net making.

37 Instead of the company following a number of other fishing firms in This was a wrench for both brothers as they had jointly built Craig Aberdeen and shrivelling away to nothing, it was felt that North Sea Group over several decades. oil and gas offered growth opportunities, which David and the Craig “George and I had a very good working relationship and I cannot board were keen to grasp. recall any occasion on which we disagreed on a matter of importance. The decision was taken to convert a number of trawlers for standby He was very forward looking and dynamic. We enjoyed an excellent duties, even thought the outlay was one that the company could partnership for many years. hardly afford. David says: “After some deliberation it was decided that “On his retirement, we had a major problem. Who would be the next fishing was unsuitable at this time and the future rather insecure with chairman and MD? A board meeting was convened between limited areas to fish in, diversification for the future of the company Douglas, Lydia and myself. It was agreed that I should assume the was the way forward.” chair and, since Douglas had advanced to services director and now had the vision, strategy and charisma required to take the company The net effect was that the Chieftain and her sisters were eventually forward, it was decided he should become managing director, which taken out of fishing and converted for offshore standby duties. meant the third generation was now taking the helm. Initially this was an effective and much cheaper option to buying “Although retired, brother George continued as a non-executive second-hand offshore supply. Other steps were taken too, as David director and we now had a strong, experienced board dedicated to the recalls. progress of the company. After all, it’s important to have strong “At one of our AGMs, when George called for fresh ideas, Douglas management and faith in people at the heart of a business and a rose to the challenge and asked his Uncle if he realised that we were strong sense of family.” spending around £150,000 a year on meat for the vessels. George It was also at this time that the decision was made to bring in Freddie replied that he thought this was reasonable, to which Douglas Craig as an additional non-executive director. He was previously a answered that he thought the company should be providing this director with Salvesen and brought valuable corporate governance service.” experience to Craig’s boardroom table. And there were other opportunities that helped sow the seeds for George was to remain on the board as a non- executive director until today’s business. For example, Bruce’s Stores, a shipping grocer in his death in 2000. Sadly too, Pat Lynch died the following year. Palmerston Road, came on the market as owner Alex Bruce, a 1989-1990 proved very unprofitable years for the stern trawlers. They contemporary of George, wished to retire. It was bought in 1982 and had to gross £3,000 a day just to operate. The crunch came in 1989, is one of the nuclei of today’s £90 million a year turnover group. when both Grampian City and Chieftain were withdrawn from service, followed by the Grampian Warrior in 1990 and converted to David adds: “We purchased Wire Rope Services at Inverbervie and standby vessels. later set up a net making division called Pisces in Peterhead, which serviced the fishing fleet in the ‘Blue Toon’. We also secured an “This was a sad time as, for the first time in the history of our exclusive agency for synthetic netting and combination rope with company, we were out of fishing,” says David. Portuguese netting manufacturer, Quintas & Quintas.” But not for long as, in 1990, he approached an old fishing industry Happily, fortune favoured the Craigs and the company continued to friend, Willie Campbell, who was one of the top inshore skippers in grow, with every penny of profit invested back, expanding the the seine net side of the industry. He was now ashore and managing a standby fleet rapidly. It proved a natural progression. fleet of six boats, with the skippers having shares in their vessels. The boats were operating out of Peterhead, but Willie and most of his In 1988, by then aged 70, George decided to retire from the business, skippers were from Lossiemouth or the Hopeman area, he also mainly as his family of two sons and one daughter had all entered operated a fish selling company in Peterhead called Grampian Sea medicine. Fishing Co.

Time & Tide - The Craig Group Story “During our conversation he disclosed that he and his wife had decided to close down their fish-selling operation and sell their shares in the boats, either to the existing skippers, or an outsider.” If David had ever wanted to get back into fishing, here was his chance. “I told him that our company might be interested in taking over after we had seen his accounts. Douglas and I examined the books and got together with Willie to settle the deal on the understanding that I met each individual skipper and had their approval as, at that time, they were only involved with one private owner; not a company. “I was invited to the skippers’ Christmas dinner in December and, in January 1991, Craig Group started operating Grampian Sea Fishing Co. Once again we were back in the fishing industry and during the following years we built the fleet up to 15 vessels based on single boat and pair seining with top earning skippers. This was a recipe for assuring success!” Mike Walker, previously with Grampian Sea Fishing, moved across to become manager and has since been appointed director. But what of the future, as the Scottish and wider UK fishing industry face deepening crisis and yet more fleet decommissioning? David is optimistic: “The Craig board and I are of the belief that a strong and viable fishing industry will be the future for those who, at this stage, can weather the storm. “A much reduced fleet with less fishing effort will allow the stocks to recover and build and, with proper fishery management, a bright future is assured. Fishing is an important part of Scotland’s heritage and future, and is of the utmost importance to many fishing communities and their families.”

Right, from top: The Cevic, The Tranquility and the second generation– George, Lydia & David (1998).

39 The Grampian Frontier, field support vessel for BP’s Foinaven Field.

Time & Tide - The Craig Group Story Part Two THE OIL ERA

orth Sea oil and gas is Britain’s most successful Why else, for example, would joint managing directors and brothers, industry since World War Two, having pumped David and George Craig be willing to break the mould by building hundreds of billions of pounds into the economy - the Mary Craig? This was the first motor trawler in the Scottish fleet £200billion to the Treasury alone and created to feature a smartly flared and immensely practical lantern-style hundreds of thousands of jobs nationwide. wheelhouse and self-contained diesel-driven trawl winch that got around all the problems associated with electric and traditional belt- Fate certainly dealt the aces to the Granite City, which was in many driven winches. ways dragged kicking and screaming out of the semi-torpid state it had slipped into by the 1960s. It was an economy with nowhere to And why else would they stick a toe in the water with ‘Big Oil’ - multi-national oil companies like BP and Shell – very early in the go, something that had not escaped the Scottish Office which, in history of that now great North Sea industry and make such a huge 1966, commissioned prominent Aberdeen University professor of the success of it that, in June this year, the company won a major business day, Maxwell Gaskin, to research how the moribund North-east award recognising its 70 years of achievement and entrepreneurial economy could be jolted back to life. spirit. Only fishing was prospering, with the Aberdeen fleet up around the Now known as Craig Group and still privately owned, the company 200 mark and companies investing heavily in modern diesel trawlers has so far spanned three generations, with every prospect of going a to replace ageing steamers of 30 years and more. Then, George Craig fourth at least. Moreover, it is still involved in fishing despite having &Sons was one of many fishing companies active in the port, become a diversified, fast internationalising upstream energy services outwardly traditional but nonetheless a trendsetter … willing to step business with a substantial fleet of offshore support vessels and out of the box once in a while and be bold. engaged in procurement of oilfield supplies, provision of food to

41 offshore installations, supply of mooring systems, chain inspection and certification, rental of high-tech subsea marine electronic equipment, also leisure interests. Fishing is comprehensively dealt with in Part One. Part Two’s primary focus is the impact of oil, including highlighting how ancillary activities dating back several decades and which were put in place to facilitate efficient servicing of the fishing fleet, have contributed to Craig’s enormous success since, one fateful day in 1970, a tall Texan strolled into the Craig Group’s offices.

ENTER MISTER CHATE Until 1987 and the Piper Alpha disaster, the bulk of North Sea standby vessels were former side and stern trawlers. Aberdeen’s Point Law was still redolent of the great days of fishing, except that the traditional, subdued liveries had long given way to high-visibility orange, and fishing gear had been replaced by fast rescue craft slung from hefty davits and personnel recovery nets. This was the latter-day world of Pat Lynch, the North Star managing director whose soul was steeped in fishing but who worked with the Craig board to progressively convert the company’s trawlers forced out of fishing by Icelandic, Faroes and Common Market restrictions into tough, capable standby vessels for the then still new offshore industry. Pat who, like David, at one point sat on Aberdeen Harbour Board, knew as little, or as much, about offshore oil as anyone else who inhabited the Granite City’s waterfront during the early 1970s. To The Grampian Orcades stands-by a North Sea drilling rig. most it was a big bucks game played by Texans imported to show the Limeys how. It was perceived as a threat, with many a trawlerman tempted away to the rigs by fatter wage packets than they could hope for, even from shipping aboard with a top trawler skipper like Bob Catto. His first encounter with this swaggering new industry took place one Friday in 1970 when, having already had contact with David during meetings of the then new Offshore Oil Consultative Group, a Mr Chate strolled into Pat’s office to discuss the possibility of hiring a trawler to support a drilling rig. Pat, never one to let a good opportunity slip through his fingers, moved swiftly, even though he had never seen a rig in his life.

Time & Tide - The Craig Group Story Recalling this encounter with the writer some years ago, Pat asked his £325 per day, which would be reduced if he took a second ship that tall visitor: “What’s an oil rig?” year.” Chate, who represented a large oil company, replied: “Well, it’s a Mobil did. That vessel was the famous Mary Craig. North Star was to funny thing. You’ll see it sticking up out of the sea.” retain the contract for 18 years, which record speaks for itself. The bemused trawler boss, who was never afraid to speak his mind, Since then, standby vessels, now known as ERRVs, (Emergency asked what the ship would have to do. Response and Rescue Vessels), have advanced greatly and today “It doesn’t have to do anything, it just has to be there,” came the provide sophisticated, frontline cover for thousands of workers, reply. including the most dangerous of conditions… fog, fire and tempest. Indeed North Star has been pre-eminent in the development of this “I repeated the question and got the same answer,” recalled Pat. critical aspect of UK offshore safety. “Being a shrewd trawler manager, I quickly decided this guy was some kind of a nut and I should get rid of him and get on with my Hundreds of millions of pounds have been collectively invested by real work, which was running a fishing company. owners in the fleet that is today the North Sea’s bulwark and employs some 3,000 British mariners. “He then pressed me for a charter rate. Well, in those days, vessels working the likes of the Faroese grounds grossed £125 a day, so I said Remarkably, more than 300 offshore workers have been rescued over £300 a day. I thought I would scare him away.” the past 30 years from the grip of this chill sea, where survival times can be measured in just a few minutes, especially during stormy Not a bit of it. Chate agreed to pay the rate that had literally been winter months when water temperatures plunge. plucked from out of the air. In any case, the Texan badly needed a replacement for the standby vessel Lady Fiona that was supposed to Not only is today's ERRV typically capable of safely accommodating have done the job. up to 300 survivors and stabilising casualties in well equipped hospital facilities, it engages in anti-collision surveillance and So John Henderson, skipper of the Admiral Drake, was summoned pollution control duties, plus it is superbly equipped to act as on- and given his instructions. scene commander and communications centre during an offshore “He wasn’t happy with Chate’s order because there wasn’t any work to incident. do!” said Pat. “It was the easiest day the lads had ever done.” But it was not until 1974 that Craig, through North Star, really set THE LYNCH SCHOOL OF MANAGEMENT out to catch oil industry contracts, making its entry to that market Pat died in November 2001, before the idea of writing this history of with the former Fleetwood motor trawler Cevic. The vessel’s the Craig Group was conceived. But his understudy for many years performance proved disappointing as far as the Craigs were and now managing director of North Star, Callum Bruce, recalls the concerned, and so she was pulled out of fishing with a view to being Lynch way of doing business very clearly. He was a man who didn’t put to other work if possible. suffer fools easily. The ship was converted, renamed Grampian Ranger and offered for “He had a style that, although I suppose we all sat at meetings and charter to an industry that was desperate to grab just about anything cringed at what he sometimes said to people, he was very well that floated. The next task was to net clients and Pat heard that Mobil respected. It was something most people would not get away with, was building the huge Beryl Alpha oil production platform and but he did.” needed a ship. Though there was at the time a family link, Callum’s first exposure to “I headed for London and descended on this sixteen-foot tall Texan the Craig Group per se and more particularly North Star, came after in an office crammed with engineering drawings. I convinced him he several years working in the oil industry, including dealing with vessel needed our vessel and we made a deal for a year based on a rate of logistics at McDermott, and latterly as a well service engineer with

43 Baker Oil Tools until made redundant in 1986 … a consequence of “It was invaluable. He taught you that you had to be close to your the world oil price crash very early that year. client. Personal relationships mattered a lot in the industry then, more than they do now.” “I had been living in Cyprus and returned to Aberdeen. Pat gave me a fill-in job. They were looking for someone to work on the quay. In Having seen the opportunity and capitalised on it, a policy of those days they had ship’s runners who were responsible for getting progressive fleet upgrading and continuous crew training was adopted crews from their homes, the pub or wherever to the boats and on at North Star, with the Lynch-Bruce partnership pushing hard to stay their way to sea. ahead of the competition. Cautious innovation was the way, always bearing in mind that this was a family firm, not a public company “It wasn’t easy to get fishing vessel crews to leave the pub. To get all of with bottomless coffers. them aboard their ship at the same time and to throw the ropes off was quite a task.” “We had the first fast rescue craft, the first purpose-built vessels, and the best safety record; we were trying to give the standby sector a The son of an Aberdeen fish merchant, Callum had plenty of prior better name than it previously had,” says Callum, who earned his experience of the North-east’s fishing industry, so rousting out crews boardroom spurs by being made up to operations director of North and sending them on their way was almost second nature. Star in 1991. The company still had its three 130ft (39.6m) stern trawlers at the “I guess what I brought into the company, which Pat didn’t have, was time, namely Grampian City, Chieftain and Warrior. There was also a that I had an IT background, albeit limited. Until I arrived, all vessel large number of standby vessels, mostly ex fishers, though there were records, salaries, that sort of thing, were written up in settling books, already ships in the fleet like the Grampian Pride, Pioneer and which was the traditional way of handling trawlers. Protector, which had been purpose-built for the Norwegian market “By then, crew competence was a big thing but, because training and bought by Craig prior to the Piper Alpha disaster of 1988. records were kept on a card system, it was impossible to do searches “With the demise of fishing, standby was a blessing, not just for the to find out who was due training and when. So I bought the first PC likes of Craig Group, but the fishermen themselves … lots of them.” that North Star had outside the company’s accounting system and set up a simple database to handle training. We used that as a selling tool, Callum’s job was supposed to be temporary. When things picked up because we could produce computerised crew lists that showed all again, he would be off. But he never did leave. their training. “The operations manager at that time was Morris Taylor. He decided to move south and back to fishing, which left a vacancy. I got the job, AND THEN THERE WAS PIPER ALPHA! partly because of my vessel logistics work with McDermott. I knew But the appalling disaster of July 6th, 1988 - the worst in the boats and what they did. I worked for Pat and, although he was recorded history of offshore oil - when the Occidental-operated Piper tremendous, he was sometimes hard to work for. Alpha platform blew up, resulting in 167 offshore personnel being “He called a spade a shovel, but I learned a lot from him. I didn’t killed, changed all that. Oil companies were violently shaken out of make many mistakes, because he was always there. Even though he their complacency. was managing director, he was very hands on and knew what every “I don’t suppose any of us in this industry will forget Piper Alpha. I boat was doing every minute of the day. got a phone-call from Ian Palmer at about three in the morning. He “He could quote every charter rate as we probably all can now,” says was manager of Stirling Shipping, from which we had a vessel called Callum. “We learned from Pat. It didn’t matter what position you Sandhaven on charter at that time,” recalls Callum. held. MD or ops manager, you had better know where all those boats “He said: ‘We’ve got a problem on the Sandhaven, the master’s were, who they were working for, and what the charterer’s name was. ranting on the radio about a fire, people in the water and he’s lost two

Time & Tide - The Craig Group Story The standby vessel, the Grampian Protector with fire fighting capabilities. of his crew. I can’t get back on to speak to him. I don’t know what “This disaster changed the industry and one of the areas examined in happened. Have you heard anything?’ But I’d heard nothing at that the Cullen Inquiry was standby vessels, for which a new code was point. drawn up. “I switched the radio on and, within a very short space of time, I “That said, some operators were willing to pay more to get better started getting reports that there had been an explosion on a vessels. In response we had invested in the Pride, Pioneer and platform, though it was at first unclear which one. Protector well before Piper. They had been built in 1981-82 and were very high-tech compared with the old trawlers. “It quickly transpired that it was Piper Alpha; we had three vessels in the area, one was the Sandhaven, the others were Grampian Kestrel “While Cullen made a number of recommendations, to this day I and Grampian Queen. The Queen was probably one of the oldest don’t think they were translated properly. He set out in a non- vessels at that time, but it made her no less effective that night when, prescriptive manner to improve standards throughout, with better miraculously, 68 survived. boats, better equipment and more highly trained people.” “The Kestrel picked up one survivor while the Queen recovered two. Whether Cullen was fully realised in this regard, is sometimes They were transferred fairly quickly to the service rig Tharos (it was questioned. This is because in the early 1990s, the North Sea Piper Alpha’s tender at the time). economy was edgy and there was a big drive to cut costs. The

45 The Grampian Orcades enters Aberdeen harbour for the first time in 1991. industry wanted new standby tonnage and better trained personnel, Association (ERRVA) whose most prominent members include Craig but there was insufficient funding available to achieve everything. Group. It certainly concerned Callum at the time and still does. Nonetheless, many old ships were decommissioned and replaced with “Ninian originally had one vessel per platform, post Cullen it more suitable units, many based on supply boats converted for the dropped to two vessels between three platforms and then to one vessel. Before, whereas a rig, drilling close by a platform, would have purpose. its own vessel, sharing became the practice,” says Callum. But little new tonnage was actually designed and built specifically for “There was also the introduction of daughter craft. They do have a the job and, even to this day,Craig Group ranks as the largest UK place and we operate them, but they are small and uncomfortable. investor in such ships, whether through direct ownership or long- The industry needs to consider carefully where it goes next.” term charter. It is clear Callum feels that standby is still the best way of rescuing Interpreting Cullen their way, oil companies also proposed and drove people, particularly in fire, fog and fumes. After all, they provide a through the practice of vessel sharing between neighbouring multi-option, round-the-clock, all-weather escape route that cannot platforms. It enraged many offshore workers and the trade unions be equalled. that struggled to protect them in an anti-union environment. The The boards of honour hung in the entrance hall at Craig Group’s manoeuvre also worried the Emergency Response & Rescue Vessel Albert Quay HQ bear testimony not just to the seventy rescues

Time & Tide - The Craig Group Story Dacon Scoop allows adverse weather rescue. Medical treatment room on the Grampian Falcon. carried out by North Star ships, but to a sector that has made a very “We then had a big thinning out of tonnage,” recalls Callum. “The special contribution to offshore and wider maritime rescue. downturn in the industry gave us the opportunity to sell a lot of vessels, including the Grampian Fame to Greenpeace, who rebuilt her TRENDSETTING AGAIN - THIS TIME OFFSHORE as the present and high profile Rainbow Warrior.” Craig set the pace by being the first to bring into service, standby Some second-hand replacement tonnage was sought and bought, vessel tonnage purpose-built for the UKCS. The Grampian Orcades primarily supply vessels from Harrison’s Clyde who operated the entered service in 1991, followed about six months later by sister Stirling fleet. At one point, 10 out of a fleet of 30 vessels flying the Grampian Hunter. North Star pennant were former Stirling units. It was Orkney fish entrepreneur Angus Sinclair who spearheaded the project, based on two part-built hulls located at a Danish shipyard, Thoughts also turned to building further tonnage linked to the but it was Craig that had the vision to see the value of investing in securing of long-term contracts based on ‘added value’ vessels capable brand new standby vessels, so taking the plunge. The arrival of the of several activities complementary to standby, like shuttle tanker new trawler-style sisters signalled further restructuring of the North assist, cargo carrying, full pollution control spreads, and infield Star standby fleet. survey and inspection.

47 Which is where BP’s planned development off its Foinaven and Schiehallion oilfields West of Shetland came onto the North Star agenda around 1994. When the decision was made to develop these fields, BP’s marine department approached Craig as well as Seabrokers, then new into Aberdeen. They needed a vessel capable of standby as a core duty but, because development would be FPSO-based, it at least needed to be capable of towing tankers and of living in the frequently violent seas that are found along the edge of the UK Continental Shelf out West of Shetland. The decision was taken to go bespoke and bring in local naval architects IMT of Montrose, rather than go off the peg with a Norwegian design house. “We wanted to build something that was branded … something that was stamped Craig Group, not a variation of a Norwegian model. We were pulling together an anchor handling, emergency towage, oil recovery, ROV-support, survey and standby vessel with daughter craft for the first time. It had never been done before.” Grampian Frontier was ordered in 1995 and delivered in 1997. It was UK-designed, UK built for a UK company to service a UK market. Daughter craft being launched. “When this 70m ship was delivered she was state of the art, much bigger and more sophisticated than any vessel we ever had before. And she’s still with us, still working on the same contract, looking after Foinaven,” adds Callum. As for Pat, he was unquestionably proud of the Grampian Frontier and of the achievements of his team. You could read it in his face whenever he talked about the ship or was aboard it with visitors. The vessel’s general arrangement drawings prepared by her designer, IMT, were usually to be seen somewhere about his office, mostly laid out on a side table and, today, a model graces the Craig Group boardroom.

THE NEXT GENERATION At more or less the same time that the group embarked on its mission to carve out a slice of the fast growing North Sea standby vessel market, the next generation of the Craig family joined the firm. David’s son Douglas was a trained accountant and, in that regard, the Fast rescue craft in action. world was potentially his oyster.

Time & Tide - The Craig Group Story However, that was rejected in favour of George Craig & Sons where, or guests. Sometimes he would speak at Rotary Club about the it could be said, he eventually found his pearl, but not without many fishing. He came to speak at school and had a model trawl that he trials and tribulations and much self-questioning along the way. used to explain how fishing gear worked.” Douglas’s starter for ten was an MA degree at Aberdeen University In the early years, David was mostly at sea. Usually he was away and three-year stint at Thomson McLintock (effectively KPMG) during the week and back at the weekend, or he might be away for a before qualifying as a chartered accountant. couple of weeks at a time on the longer trips. When asked why not KPMG, the reply is: ”I never wanted to become “I did go on a few trips with Dad. I was ill and remember being fed a professional accountant, I always wanted to go into commerce. I bread on the third or fourth day out to help me recover. When you go would have loved to have gone to Continental Europe, the Caribbean on board a trawler and there’s a smell of pies, and you couple that or somewhere like that. KPMG gives you overseas opportunities. with the smell of diesel fuel, and then you try compensating during “I preferred the family business where I felt my responsibilities lay, the first few hours with the horizon going all over the place … it’s just and where I could help create new opportunities. Aberdeen was my a terrible feeling. world in those days. Perhaps then, you didn’t quite appreciate how “The first was when I was fourteen or fifteen … a summer trip away. wide horizons could be.” It was certainly exciting, especially at night, watching the radar, He was growing up in a city that was locked in a time warp, following the fish. I can understand why my father loved it. It’s slumbering, decaying almost imperceptibly. The local economy was another world out there, a special job … the last of the original and weakening and, with the exception of fishing, there seemed little natural hunting professions. You cannot understand it unless you’re prospect of getting out of the economic hole, hence the Gaskin study out there. I only sampled it. Despite being seasick it was nonetheless a referred to in Part One. very special experience.” Young people were disaffected and leaving in droves for the bright But the pattern of life at the Craig household switched abruptly while lights further south … Edinburgh, Glasgow, London. Despite such Douglas was in his teens. “Dad was ashore most of the time. He gave peer group pressures, it takes little analysis to discover why Douglas up the sea when he was 55 or so and I began to discover more about chose the family firm over a potentially high-flying role at what has him and what his business aspirations were. A lot of sons don’t get on since become one of the world’s top accountancy firms. And it has to with their fathers, but I did.” do with solidarity and supportiveness. After all, his father and uncle This was a family where everyone pitched in, one way or another. It George had been joint managing directors of George Craig & Sons was encouraged, including turning up on the quayside or at the Craig since before World War Two, and that requires something very offices, workshops or store. Mucking in resulted in indelible, happy special. memories for Douglas and laid valuable foundations for the future. “You go back to school days and remember that, in a class of boys at “As a university student working during the holidays for North Star Robert Gordon’s College, the teacher asking how many parents were Fishing, which was then at Commercial Quay across from the fish in business. Only two of us put our hands up,” says Douglas. “As far market, there were Dickens desks, quill pens and a fireplace in the as I was concerned, he was achieving something out of the ordinary. I main office. didn’t know anyone else that did what he did so well. He was always a great example to me and largely respected by everyone I came across “Uncle George’s secretary, Miss Harrold – we called her Hawk Eye – at all levels. would only give you a replacement desk pad or pencil if you gave her back the old one! “It was then that I realised Dad was doing something special, although I’d always thought he was a hero and winner as he always “The day started at 6am, when Sandy McLeod, an astute fish seemed to be top skipper and knew absolutely what he was doing. He salesman (now in charge of recruitment for standby vessels) and I had a black and white film in those days and would show it to family would tally up the boxes coming off our vessels landing that day to

49 reconcile the catch with ‘Juby’ the boxman and head fish salesman Frank Naughton. “Frank would then take up station at the head of each row of boxes laid out on the fish market floor to auction the catch with the skipper and vessel owner looking on. “I can also remember the drama of landing fish and even splicing rope during some of the labour disputes. “This was life at the sharp end in full colour and it was a great education for me. The camaraderie was fantastic and I built up personal and business friendships to last a lifetime.” Douglas recalls office manager Jim Scott, who wouldn’t let him home until he had balanced his cashbook for the day, and this could take several hours beyond 5pm knocking off time. Then there is Jim Pearce, who joined North Star from school aged 16 and is now 47 years with Craig. “Jim is one of the most conscientious people I have ever come across and is everyone’s friend. He belonged to a drama group and this gave him an ability to entertain at social events with his own hilarious routines. “But he was accident prone. Once when running into the fish market to avoid a rainstorm, he was soaked by someone washing the floor with a hose. Jim arrived back ‘drookit’.” And what about Moira Low? She started in 1969 as clerkess/typist. Her first duty – filling the ink pots. She thought, ‘have they never heard of Biros’! Douglas and David Craig at Albert Quay. (Photograph by Kate Sutherland courtesy of the Uncle George’s secretary Ann Harrold insisted on the cashbooks Leopard magazine) being written up using pen and ink. “Miss Harrold was a stickler for accuracy and, on one occasion, she noticed an error of one penny in an Ellis & McHardy fuel invoice. When Moira protested that it would cost two pence for the telephone call she was told: ‘The doors of George Craig & Sons will soon close if you don’t pick up errors like these!’ “The staff were terrified of her and were demoralised when she decided to stay on until she was 63!” If the foregoing comes across as Dickensian, then a visit by an American film producer to North Star’s offices in the 1960s rubs it in.

Time & Tide - The Craig Group Story Picture a set from the late 1800s - large sloping desks, high back vessels at that time, fishing was in trouble and the challenge was how stools, quill pens, ink wells, with rubbers and pencils secured by to take the business forward, in a different direction perhaps. It was string. necessary for me to begin to understand what was going on and what “We had a ship up for sale at the time and quite a bit of interest was the possibilities might be.” shown in her,” recalls Jim Pearce who was then very young.“One summer morning the door burst open and a very colourful American DOUGLAS LEARNS THE ROPES gentleman with stetson, Hawaiian shirt and smoking a big cigar “It was obvious that I had to learn as much as I could about different strode in. He was interested in the ship to make a film called Mutiny aspects of the business and I would go down to the fish market on the Bounty. regularly. I tried selling fish at auction, but you need a loud voice for “He looked about for a short while and then in a thick American that. I wasn’t a natural. accent he said: ‘Gosh, I came here to make the Bounty, but I’ve got “It wasn’t quite in me then, though I could possibly do it now. I the set for a Dickens novel.’ regretted not being an engineer or mariner, but was later to realise “With that, the side door of the cashiers office opened and out that financial acumen was what I needed most, linked to the sheer shuffled Jim Scott, the old white haired paymaster, to which the experience of motivating and leading people. There was a lot of American said: ‘Heavens, you have even got Scrooge, and some of the drama going on at the quayside. It was a real industry then for extras. May I see your managing director please?’ Aberdeen. Today it’s a pale remnant.” “He left empty-handed.” The first real task for the fresh-faced young Craig was to bring the But was this helping out on Douglas’s part a response to old- accounts together in-house and try to get a computer into the fashioned obligation? Perhaps. company to facilitate and improve financial management. When the time came to dump KPMG, it was straight into the fish “The first pocket calculators had just come out and I can remember market for the new generation Craig. It was tough. Bill Paterson of Arkman & Paterson with his slide rule, checking that the calculator had spewed out the right answer … our CA checking “A lot of people in the industry were depressed then and that was 25 years ago. Many sons in fishing families follow their fathers to sea, whether the calculator was right! That was only 25 years ago! shelving the idea of a completely different life. But the decision was “When I joined there was a new generation starting. I began pushing, made easier for me by the fact that my father seemed not to want me but only gradually. With two strong people like my father and Uncle heading to sea anyway. Intuitively, he knew there were bigger and George at the head of the company it’s quite a challenge to do that better things for me to set my teeth into.” sort of thing. To think of things like internationalising was not really In any case, Britain had just joined the Common Market and there on, at least not then. was huge uncertainty coming into the fishing industry even at that “But change is part and parcel of a company going forward. There is time. Fishermen knew instinctively then that they had been sold no such thing as steady state. Major upheavals and dramatic changes down the river by the Government, but couldn’t prove it until papers of direction can become necessary. It has to happen with every pertaining to joining the European ‘Club’ were released under the company if it is to survive. Official Secrets Act 30-year rule. A gnawing, slow burn crisis was already developing. This was not the time to be heading for sea. “Not long after I started, we had an opportunity for the trawler Cevic to go into North Sea standby … that was a crossroads. We took that “He was concerned enough to recognise that there would be opportunity.” problems ahead. In any case, at that time, the firm’s accounts were handled outside. I guess his vision was that I could probably help to That willingness to meet and deal with change, and not shrink back run and grow the business, rather than catch fish. We had a fleet of 25 from it or freeze like a rabbit in the headlights of a truck were the

51 The flagship Grampian Monarch (A337) . qualities that the senior Craigs were hoping for in the successor “As a family we would still meet for lunch on a Sunday. There was no generation, that is, Douglas and his team. resentment; you just got on with it. Some family philosophy. “Two things my uncle said when I was first “My father and uncle were very close … they had sworn allegiance to interviewed were that he thought I’d bring a lot to the table. He said: their father to work together … they were blood brothers really. Only ‘If you’re in doubt of what you’re doing, think whether it is to the brothers would last as joint MDs for 55 years. benefit of George Craig & Sons or not … a good barometer for the “No one else could do it. There would be a power struggle. But there future … are you working for the good of the business or the benefit wasn’t a power struggle because they were equally yoked. They weren’t of yourself.’ He said too: ‘We will fall out and we’ll fall in, but don’t going to fall out and that was a very important lesson to me. If they take it home with you.’ had fallen out, then Craig Group would not be here today.” “And that’s fundamental. If you take it home with you, bitter about It is the kind of solidarity that is impossible to find in a listed some argument or issue, as all business people do, it’s a killer. company, unless only a modest proportion of the business has been “Another thing we did (in the boardroom) was when we had an floated. argument or discussion where we didn’t agree about something, you Typical family, the Craigs have traditionally ploughed virtually ‘parked’ it that day. You didn’t take it home with you. everything back into the business. Like many, the instinct is to keep

Time & Tide - The Craig Group Story borrowings and gearing to the minimum, but not to the point that “We invested a lot of money in acquiring and converting standby investment is stymied. vessels and even set up an offshore fabrication shop. We also got into “There was always drama with fishing vessels. And, with Pat Lynch wire rope services 15 years ago. So we did take risks, and some paid on board as well! He was no-one’s yes man. He would say what he off.” thought. Basically, Douglas increasingly got on with developing the offshore “When appropriate, it’s right to say what you think. Pat would do services element, Pat concentrated on the North Star fleet – trawlers that. Though he wasn’t family, he was treated as if he was. Yet he also and standby, while George and David continued as joint MDs, remained his own man. He cared hugely about North Star, about keeping a firm helm on the group’s course. being market leader, about being the best. He lived it.” “It worked pretty well, in as much as a traditional family company As turmoil increasingly gripped the fishing industry and many can allow itself to grow. Most investment was ploughed into standby traditional family businesses fought for survival, Douglas claims not vessels. That was the main cash generator … the cash cow, and was to have been over-concerned. exactly the right thing to do at that time, which I as a member of the “I never worried about not surviving. Though I remember the board backed enthusiastically. Grampian Monarch being sold away to Canada and that it generated good cash. In fishing, some vessels were doing well, but some weren’t, “The ships were there, the skills were there; it was almost a seamless while North Sea standby was already producing a steady income.” transition. The great thing was that you didn’t have fishing gear to repair and replace, or the risk of where to catch the fish. It appears that, even before Chate ventured into Pat’s office, Douglas had seen the possibilities of breaking into the offshore industry in “With the ability to stay out in all weathers, coupled with the low some way other than simply running ships. He thought it an obvious freeboard amidships that side trawlers possessed, the vessels could progression because the company already had various skills in-house rescue souls as they had hauled in nets full of fish, retrieving them that could be adapted, albeit by dint of hard work and determination. with then new technology semi-rigid inflatable rescue deployed using “In those days I was buried in accounting matters and maybe hadn’t special davits. understood where the company could go. But, once the accounts and “A new industry was being born. associated systems were in order, and opportunities in services like catering and offshore procurement came up, I wanted to get after “And I suppose we were quite aggressive when it came to growing the them. fleet as we took over BUT tonnage and Salvesen’s standby vessels, we “Take catering. If you can supply and satisfy your own ships, which had a joint venture with Wood Group and Richard Irvin, plus we we did, you can do outside and foreign ships. You can offer bought and built, mainly buying second-hand Norwegian ships, procurement, including abroad. But such opportunities were then ultimately leading to our building the Grampian Frontier six years not available. ago and taking delivery of the Grampian Explorer and Surveyor this “Twenty-five years ago, the North Sea was growing rapidly so, in any year.” case, there wasn’t the need to expand abroad. At that time I could see For any upcoming young business turk destined to lead, gaining the opportunities for what we had, but we did need to make admission to the boardroom as early as possible is a natural instinct. acquisitions. I now think we should have been more aggressive in In Douglas’s case, this came after several years of cutting his corporate acquiring other companies and services earlier. But we were rightly teeth. very cautious and stuck to what we knew, though we saw standby coming and did something about that. In 1983, he was admitted as services director of Craig Group.

53 PIRATES OF POINT LAW by Craig. Clearly, this audacious move was something that caused Taking on the role of services director was the cue for Douglas to roll consternation among the city’s butchery establishment. up his sleeves and relentlessly pursue fresh opportunities for the “We were called the pirates of Point Law! company … to create rather than simply administrate. “Often it was whichever chandler boarded a ship first who got the “I could see a huge amount of opportunity … both challenging and order. Faxes and e-mails had not yet been invented. enjoyable … getting out to meet people and trying to develop links.” “I wouldn’t say the butchery venture was a meteoric success, though it The first break came from a conversation about a long-held desire by was successful. It wasn’t rocket science, but it had great potential to George to, of all things, own a butchery business, mainly because one link with the other services that we developed.” of his friends was a successful butcher. That desire taunted. Why not buy or set up such an operation, and why not self-supply the group’s BUILDING AN APPETITE FOR CHANDLERY & CATERING own fleet of 25 standby and eight fishing vessels? Ship’s stores, painting and chandlery had long been a facet of Craig, The idea was knocked around the boardroom and Douglas did a something that had naturally evolved as a result of owning a break-even analysis: “I thought it would be profitable just with our substantial trawler fleet that needed keeping in trim and where the own fleet, never mind anyone else’s. Aberdeen tradition had been to own or barter required services, rather “So, highly qualified as I wasn’t, in 1980, I started a butcher’s shop. It than hand over cash. was my baby; they had allowed me to do something. I spent every The challenge was how to take this foundation and build for the mortal hour and minute thinking about how I could make it work. I future by diversifying and expanding the business, and the obvious marketed every ship in Aberdeen by going on board, speaking with target was food. An early result was that the long established local the captain. firm Bruce’s Stores was acquired. “My slogan was, GCS where the meat costs less! “Bruce’s supplied the first rig that ever came into Aberdeen with food “Seaforth Maritime had a huge fleet in those days and I visited when and supplied schools and hospitals,” says Douglas. “Alex Bruce was a procurement manager Eddie Phillips was there. He allowed us to contemporary of uncle George … they were at school together … supply the Seaforth Hero, one of our first offshore support vessel and had done really well out of fishing, making more out of that than customers. catering, which they had also done well in. “But it turned out that the cook wanted a ‘dropsy’ (backhander), and “But, with the demise of (middle and distant water) fishing 30 years we exposed that, even though it would have been very easy to have ago when Britain first joined the Common Market, he wanted to sell given him one. The result of our action was that he was sacked and the groceries side as he had no family coming into the business. I we eventually won the contract for the whole Seaforth fleet.” thought this would complement our meat side and, though I didn’t know it at the time, buying Bruce’s sowed the first seed of what Douglas also travelled to Norway, driven to visiting every shipping eventually became today’s international catering and oilfield company in his desire to corner this new market for Craig. The procurement business.” perceived marketing advantage the Aberdeen firm had over its competitors was that the meat offered was home killed, cut for the Vic Murphy, a long-term main board director, recalls the importance size of crew to eliminate waste, and offered at a bonded price as the of the Bruce’s transaction, which marked the start of his career with company had secured from HM Customs & Excise a licence covering the company. He had sold his family company Buchan & Johnston to the UK Continental Shelf. Craig. But scouring for custom was not confined to shipping as, in 1981, “B&J gave us a base in Peterhead which was key for offshore and the meat supplies contract covering all hospitals in Aberdeen was won marine supplies.

Time & Tide - The Craig Group Story Craig Group Catering making deliveries to Aberdeen Harbour. Catering supplies in the chilled warehouse.

“Bruce’s Stores was an important vehicle; traditional business with all powerful, BUT not only shut its Aberdeen office, the Humberside the history that goes with a respected company,” remembers Vic. “For company also contracted out its fishing operation and decided to get two years I travelled back to Edinburgh until I moved to Aboyne. out of standby vessels. Monday morning start 5am … up to Aberdeen. This created a discipline that I have stuck to over the last 20 years … early starts - “We ended up buying the fleet, which Andrew Lewis had been late finishes. running at the time.” “Douglas and I worked as a team; occasionally sneaking off for golf. As an aside, BUT will be remembered by many on the big ship side of We were fortunate in winning the SPARKS Pro-cel-am Golf fishing for the famous ‘Cat’ boats. These were big, rakish side Tournament at Deeside three times, the last being with Willie Milne trawlers, most of which sailed out of the Humber. of Walker Cup and Hamburger fame and with the famous rugby “The building, on which we have a long lease from Aberdeen player Gordon Brown … ‘Broon frae Troon’.” Harbour Board and that looks out onto the quay where our ships Another factor that Douglas says inspired him at the time was berth, gave us scope to expand. It enabled us to place North Star, relocation of the company to the current premises at 207 Albert riggers, marine stores, meat supplies, ship repairing, accounts and Quay, which had been vacated by British United Trawlers. Once very ship’s recruitment under one roof; also management and directors of

55 North Star and Craig were combined. Even today, there is still space for more offices, despite substantial refurbishment to create a modern, more open-plan style of working environment with a boardroom and separate conference area. “One of the tenants was Chris Long, a shipbroker for Jacobs and Tenvig who had an office above our marine stores’ loading bay. One day a forklift drive over-extended the vehicle’s hoist while lifting a container, with the result that the floor and the desk where Chris was sitting was lifted upwards. He asked for danger money after that … to be deducted from his rent!” Another tenant at No. 207 was Norwegian company Anders Wilhelmsen, whose managing director Alex Kraft was already a familiar face. It happened that Wilhelmsen’s owned the DSV Wildrake – a £20million state-of-the-art dive support vessel – and Craig won its custom, opportunistic in some measure, including supplying wire rope. Douglas was really sharpening his business teeth. “Those were halcyon days when you would have to use a phone-box in Peterhead to describe the orders – there were no mobiles in those days, a ship would come into ASCo base and I would have only an Aberdeen Harbour in the early seventies. hour or two’s warning that it was coming in. “I was the main supplier and would personally go aboard that ship, meet with the captain, mate, chief engineer and cook or chief steward to find out what they wanted. Within their turnaround time, which might be only six or eight hours, you had to produce the goods. It could be ship repair services, cleaning materials, food, charts, or whatever. On one particular occasion, the skipper wanted an accordion! “It was exciting, dramatic, challenging and inspired me to believe that we could deal with any kind of ship. I was cutting my teeth. Obviously, having started it, I needed help.I couldn’t cope on my own, so Steve Bragg, then a lad, joined me from Bruce’s stores. He’s still with us and is our main ship’s chandler in Aberdeen.” Vic Murphy again: “We loved the growth … new supply vessel owners giving us their fleets (to supply). Our growth was tremendous.” This was confidence boosting stuff for the young Craig and a far cry from the time he joined the family business as an accountant. It was The Craig Group Head Office at 207 Albert Quay. the kind of situation where failure to deliver to a ship could cost dear,

Time & Tide - The Craig Group Story given day rates for units like Wildrake were at least £20,000 a day at were able to supply from Peterhead and Great Yarmouth at the time, the time. it was a major embarrassment as we were temporarily wiped out.” “You were made to jump,” says Douglas. “It was the kind of situation Fortunately, when the world oil price crash of early 1986 hit the that gave you a buzz. I wanted to be successful. I wanted to achieve North Sea, Craig’s offshore catering business was still in its infancy something on my own.” and little affected by the crunch. Big DSVs like the Wildrake, with their crews of 50 and more, not “We were growing steadily and had just opened in Shetland having only delivered excellent chandlery and galley supplies business to taken over Magnus Smith’s company, Todd’s Cash & Carry, in Craig, there was also the potential to win lucrative catering contracts, Lerwick. But it was a bit of an animal to run because of arm’s length so long as they could be captured from incumbents like Chalk management. Catering, Scot Catering, Aramark, Kelvin, Sodexho and many others. “Once we had a burger van arrested, also a flock of sheep as security At that time there were 11 caterers in Aberdeen versus only three or for a debt. You have no idea what we were up against. At one point, four large ones today. Lerwick was a very strategic base, but not so much now. We sold it to “It was these big vessels that led us into contract catering and then George Hepburn, a local businessman. containerisation of food. It was a natural progression. From starting “In those days we wanted to be the largest Scottish, if not UK with meat in 1980, we are now in 2003 doing almost half the oilfields supplier, but now we’re looking internationally.” of the North Sea with containerised food. However, up to five years ago, real exports of any kind were minimal “And we have just sent £100,000 worth of food to Equatorial Guinea because there was so much activity in the North Sea. for Aramark. That’s our largest single grocery order. In those days (early 1980s), it would have taken three months to sell £100,000.” “In any case, I was bludgeoned to some extent into sticking with the North Sea, despite going to OTC in Houston for 15 years,” reflects But not everything went smoothly during those early years. Douglas. “Dad, Uncle George and Pat would say: ‘make sure you “A diving vessel came into Aberdeen for which we had a huge order supply all the market here first, and then go to Houston. There’s and I was supervising personally. Containers were being transported enough of a market here without you going anywhere else.’ That was when one fell off our truck in Market Street. It hadn’t been roped their view rightly or wrongly … right then, wrong now.” down properly. A load of bottles of tomato ketchup were smashed … the stuff was splattered all over the place. There were a lot of red HITTING THE INTERNATIONALISATION TRAIL faces.” The point at which it became imperative to protect the business from The ship was going to the Middle East for six months but the irony the vagaries of the North Sea was the late 1997 through 1999 global was that the charter was cancelled and its refrigeration system broke oil price downturn, which had a hefty negative impact on the UK’s down. Either way, it was a one-off contract and the food was never domestic offshore industry. Added pressure was coming from the eaten on the intended voyage. CRINE and CRINE Network cost reduction and efficiency drive Another disaster was the flooding of the former flax mill at initiatives. Inverbervie that was used to store wire rope. There had been late The board at that time started to look seriously at diversification and frosts, followed by a rapid thaw and the net result was that the yard all members went on a Dale Carnegie management course that and the wire stored there was quickly beneath two feet of water. focused on visions, values and objectives. Curiously, the idea stemmed from a time management course for Pat Lynch. “That was not a good day,” says Douglas. “Craig Group Wire Rope Services held all the major contracts for supplying wire rope-slings at “He used Dale Carnegie for that, paying £100 or so for the course. I the time. Though we managed to claim against insurance and we was in any case receptive to anything that might help us improve the

57 business. So we all embarked on a business development programme He joined with significant North Sea support vessel and PLC that Grampian Enterprise was promoting at the time and which experience under his belt, having worked for Seaforth Maritime and started us on Investors in People.” then Star Offshore. An irony is that he has no particular enthusiasm Out of the course came five or six objectives and one critical among for ships. them was to become less dependent on standby vessels but still grow “It’s just that I can’t get away from them. If it had been fast cars, I the market, given that there was then and still is no substitute for could understand it,” says Henry, picking up the internationalisation ships when it comes to maintaining constant and effective safety thread. cover in North Sea oil and gasfields. “I’d known Douglas for about 10 years prior to joining as we both “So we set about trawling for new opportunities and one of them was spent time with Thomson McLintock, now KPMG. The opportunity Seatronics, our subsea marine electronics rental business that we have to join Craig was a challenge that I wanted to be a part of and, in now grown to five international divisions and which has become a 1988 I became financial director.” global market leader, with bases in Aberdeen, Houston, New Iberia, Abu Dhabi and Singapore. From the Lints perspective, the company spent the late 80s through to early 90s developing its traditional business streams into the North “This has given us a £12-£13million turnover business that is a world Sea, with real diversification yet to come. It was not until the mid-90s leader. It’s specialised, it’s not a huge market and our main competitor that the process of internationalisation and real diversification started. Ashtead, turns a similar amount. “That was when we realised that we needed to do this sort of thing to “Before we moved in, it was Ashtead plus a number of smaller companies. We took over some of the smaller companies to create move forward. We had consultants in (Dale Carnegie), we were what we have today. This business, though capital intensive with looking at TQM (total quality management), at objectives and asking items in its stable like tow-fish costing up to £1million and which are ourselves questions like where do we go from here as the North Sea used for seafloor and sub-bottom profiling, tends to be based on appeared to have peaked.” European technology and experience and has been easier to control as He agrees with the external perception that, as many North Sea a result. companies were pulling in their horns and getting back to basics in “Another was to harness three companies, though it was eventually the mid 90s, Craig Group was going exactly the opposite way. It saw two, together. One was Craig Group Marine the traditional ship’s the advantages of internationalising with global marine procurement chandlery side that dates back to the 1930s and which has now and rentals, and of getting into one of the fastest growing industries become a major oilfield e-procurement house – Craig International in Britain, that is, leisure, but more about that subject later. Services (CIS). “With our main core business being North Sea standby, we were “We took the marine, non food side out of the catering division and exposed and we needed to do something else. As long as it was cemented it to DIC, a company owned by Dave Allan. We had connected, we had to give it a go,” says Lints. shipping and marine expertise, he had oilfield expertise and, today, he leads CIS. SEEDING A MARKET LEADER “That company started with a turnover of £5million and, in five “By 1997, we were looking to develop another main strand to the years, has reached £15million turnover of which £10million is business and marine electronics rental looked a good bet. Neil Smith export.” of the North-East marine electronics firm Scantron came to visit us, A key individual in terms of growing these international businesses is saying that his business might make a worthwhile acquisition. We Henry Lints, who had arrived in 1986 to become financial controller, examined Scantron, it was profitable and it was rental. But what it so releasing Douglas to get on with new business creation. didn’t have was an overseas element. So we declined the offer to buy.

Time & Tide - The Craig Group Story “About six months later, Neil came back to us with an idea. He said there was another company called Seatronics with bases in Aberdeen, Great Yarmouth and Abu Dhabi. Moreover, there was a third company called Geomac based in the US. Put the three businesses together and we would have the nucleus of a market leader. It would help consolidate a very fragmented part of the industry. “It was a case of were we interested? And, if so, let’s talk. So we got down to it. Putting together one acquisition is difficult enough. Bringing three companies together with international dimensions was something we had never tackled before. It took about 10 months to put that deal to bed and we concluded in 1999. “But then the real work began … bringing this new business on board, integrating it within the group and growing it. One of the first things we needed to do was to open a Far East base. A Singapore company, Aquatron run by a Stuart Kendal, was identified and brought on board. Then we had a truly global electronics rental company serving the marine industry … and a real competitor to Ashtead.” One of the big surprises of stepping into marine electronics rental was how undeveloped it was and remains. It is put down to the belief that the many small businesses that comprise the sector guard their Seatronics is a world leader in marine survey equipment rental and sales. independence jealously and are unwilling to sell, except at inflated prices. Over the four years that Craig Group Seatronics has been in business, growth has been rapid and the level of investment heavy. But the returns have been healthy and 2003 has been particularly good, with contract wins from major customers Fugro, Sonsub and Thales. Seatronics has signed long-term agreements with all three, which will secure its position for several years ahead. Its share of the rentals market has grown from an initial 20% to 40% in just four years, with annual turnover doubling from £6million to £12million over that period. But the overall market potential is believed to be huge and Lints has formed the view that it is much broader and more valuable than it seemed at first sight. Rather than 40% of the market as now, with the emphasis on survey and ROV-related systems, it may turn out that Seatronics commands just 10%, but of a much wider market with greater potential, embracing ports and harbours, oceanography, ROV fitted with the latest Seatronics TSS440 Pipetracker.

59 renewable energy, environmental and other activities requiring use of internationalisation, including ensuring the supply chains work; marine electronics. whether it is Africa or the Caspian, this is a priority. “The reason why we opened in New Iberia, Louisiana was to service The Atyrau unit was initiated under an individual called Graham the Gulf of Mexico diving market where we’ve bought a large amount Wood, who already had worked in Kazakhstan in a similar line of of equipment for hire, typically air compressors, welding equipment business over the five or six years prior to CIS appearing on the scene. and other tools. We see huge potential in that business, which is He had both business experience and the political nonce necessary to building up rapidly, and see the potential to take it to other parts of survive in what was a very difficult environment for any Western the world.” company to trade in. Lints regards Seatronics as his baby. However, while it is his Says Lints: “To take Atyrau to the next stage, it will be necessary to responsibility to grow and integrate the business into the wider Craig take on a local partner, with a number of options under Group, he acknowledges that the success is not just down to one consideration, or make an acquisition. Part of the pressure is coming person, but a team effort by key players George McCaffrey ex of from Western oil companies active in Kazakhstan as they are under Oceonics, David Currie, who originally started with Neil Smith in political pressure to maximise local content. the late 1980s, Mike Stephens in the US, Susan Murray who heads “This is a country the size of Europe. We’re excited about the the Middle East effort and Stuart Kendall in the Far East. potential and, though there are lots of scare stories, we’re hearing more than we ourselves are encountering. Of course we’ve A TASTE FOR OVERSEAS CATERING encountered problems, but that’s the way it is out there.” Besides chairing Seatronics, Craig’s FD and deputy MD also has CIS The 930sq.m Atyrau facility, with warehouse, office, freezer and chill under his wing. Crank the clock back five years to when catering was facility, is designed to service the requirements of work camps and running hand in hand with Craig’s marine operations, in other words hotels. However, it has also quickly established itself as a popular ship’s chandlery, and a view was gelling that the two businesses might venue for ex-pats working in Kazakhstan, according to Douglas. best be split to enable them to really take off. “There, on the Steppes, north of the Caspian, the freezer is warmer “Our marketing consultant, Mike Gillespie, had the notion of than the ambient warehouse in the winter! The Irn Bru we’ve been putting the chandlery business together with another company that getting in for the locals has been exploding and vinegar bottles performed a similar function for oil and gas installations. It became a cracking with the cold. similar story to Seatronics, where an international dimension would be added through the acquisition of two companies – DIC and PEI – “Initially it took up to six months to get meat in there because of to create a significant business capable of growing internationally, Customs … the papers were right but they decided they weren’t and namely CIS. the meat would be returned to Holland. There were logistical problems left, right and centre. “While there is plenty of competition in that field, a lot are international companies whom we felt we could give a good run for “But now that we’re out there, for the wives of senior staff at the oil their money – McJunkins and National Oilwell are two. But they companies, a highlight of their week is to go and shop at the Craig tend to be specialised in aspects like pipe and downhole tools, rather ‘supermarket’.” than general consumables.” This Caspian business seems a long way removed from the first forays Though there were a number of significant issues to iron out with into foreign markets where the company imported speciality products regard to integration of DIC and PEI, the hurdles were cleared and from Norway to satisfy the palates of personnel aboard Norwegian the businesses were brought together under one roof at Craig’s Albert offshore service vessels calling into Aberdeen. Essentially, Craig cut its Quay HQ, with Dave Allan as MD. This provides a solid anchor for exporting teeth servicing the needs of such ships.

Time & Tide - The Craig Group Story The newly refurbished offices of Craig International Supplies. Loading of stock at the Craig International Supplies warehouse.

A further aspect of CIS is e-procurement via an alliance of companies “With LOGIC as facilitator, we set about creating a catalogue with a that was formally launched late 2002 and facilitated by North Sea database of more than 100,000 items that could be accessed by any supply chain initiative LOGIC. The e-seeds of what is known as the customer at any time anywhere in the world. There were originally six CIS Alliance, of which CIS is a founder member, were sown at Craig companies in the alliance, since then it has grown to 12. around 2000, following meetings with a number of other product “The next stage is to work more closely with those alliance partners, vendors. which has started happening. Our suppliers are helping in overseas It was a time when oil companies were banding together to create e- markets, and are already actively marketing in places like Kazakhstan. procurement machines like Trade Ranger, which remains active, and One plan is that they will follow us into West Africa. We see major Petrocosm, which collapsed. There was also First Point Assessment, potential for the scheme.” the North Sea’s own e-based pre-qualification system that was born Among current CIS Alliance members are: CIS, Wellhead Electrical, out of the mid-1990s CRINE Network cost reduction scheme. Steadfast Scotland, FIS Chemicals, Henry Gibson Stationers, Gibbs Says Lints: “We felt that having our own e-catalogue which was Tools, K&L Ross and HVAC Refrigeration. capable of plugging into any system was the way forward. It was Craig Group, as it became known earlier this year, has been fortunate. essential to build our software in that way and to take account of our Low gearing and reliable and substantial income from its North Sea various alliance relationships. standby business underpin diversification and internationalisation,

61 David Craig, Callum Bruce, Douglas Craig and Captain Simon Harris at the launch of the Grampian Explorer. largely out of cash flow, a luxury that many firms simply do not have. “While we’re taking more risk by doing this, because we’re exporting In 2002, standby operations accounted for some £35million out of for oil companies operating in such areas, this has given us the £90million total group turnover. confidence. “I knew the company was strong and that this would enable us to set And it is this same confidence that has enabled the firm to invest up in places like Kazakhstan,” says Douglas. £24million in two multi-function ships purpose-built for the A measure of that strength was that Craig was comfortably able to international offshore support vessels market, with Grampian borrow the £10million needed to build the innovative multi-purpose Explorer and Grampian Surveyor entering service early 2003. support ship Grampian Frontier in the late 1990s for West of For this, the Craig board donned their thinking cap three years ago. Shetland service with BP. The challenge was how to take forward the still core business of ship- “With £40million net assets, gearing of £10million and strong cash based services. The answer was to internationalise, but targeting niche flow, it’s not a problem for a shipping company.” markets, not trying to take on US giants like Tidewater and Seacor. It is this confidence that has enabled the company to set up This meant building ships - a minimum of two - capable of doing the innovative group operations in West Africa and, most recently, Cape job.Such an adventure would be expensive and, in business terms, Town in South Africa. take the company into relatively uncharted waters. But, with the

Time & Tide - The Craig Group Story modern Grampian Frontier and Grampian Prince also potentially available in the future, this would bring the number of internationally marketable specialist vessels to four … a useful critical mass. The decision was taken to order two vessels, first Grampian Explorer followed rapidly by Grampian Surveyor. Never before has an indigenous Aberdeen family company invested so much money in new tonnage at one time. While Surveyor is off the drawing board of IMT, Explorer is a Rolls Royce Ulstein UT755L class unit. Both are premier division and easily the match of anything afloat or on order anywhere in the world. Douglas’s wife Isobel christened Norwegian-built Explorer in Aberdeen on March 7th this year. Intended for the home and international markets, this 72m x 16m vessel is only the sixth UT755L commissioned anywhere and represents a £11 million investment. Engined with twin Bergen KRMB9 diesels capable of producing a total of 5,460 brake horsepower, immensely manoeuvrable Explorer is classed DNV1A1, Dynamic Positioning Class II. A high degree of redundancy is built into her machinery systems.

Explorer features a moonpool, an extensive suite of on- and off-line The Grampian Surveyor undergoing trials in Spain. survey rooms, removable bulwark sections to port and starboard, a 680sq.m cargo deck, and accommodation for 38 personnel. Although intended for the ROV survey and light construction markets, the ship also has a full under-deck storage capability, so making it suitable for platform supply activities. Surveyor measures 75m x 16m and features a diesel-electric main machinery configuration, driving twin contra-rotating azimuthing propellers. This quiet, fuel efficient DP Class II vessel with its 400 tonne-metre lifting capability, is highly manoeuvrable and can achieve a top speed of 15 knots. The Surveyor is particularly interesting as IMT purpose-designed the Grampian Frontier, which Craig had built for standby, ROV and survey duties in support of the Foinaven field West of Shetland. While the cut of the new 75m ship is not dissimilar, she takes multi- role sophistication that bit further, adding light construction and survey capabilities to the many abilities already attributed to the Frontier.

63 Surveyor has made an excellent start to her career, working a two-year contract with Sonsub, a leading contractor to the international oil and gas and telecommunications industries. Delivery of the two new ships early this year very much marks the opening of a fresh chapter in Craig’s ship owning history and bring its offshore fleet to 27 at the present time. Will the venture succeed? Is North Star differentiated enough to pull it off? The Craig board’s conviction is, of course, that it will, as iterated by Callum Bruce. “Where we’re significantly different is that we haven’t built standard vessels. Thanks to our success with Grampian Frontier, we can go to the likes of Fugro, Thales, Sonsub, Stolt and others and demonstrate that we can run sophisticated, multi-purpose vessels with a difference. It is because of what they can do that differentiates them in the marketplace anywhere in the world. “And why should we confine ourselves within this small area called The acquisition of ChainCo made the Group a market leader in chain testing. the North Sea when there’s a world of opportunity out there? We can run a vessel equally as well in Brazil, or anywhere else, as in Aberdeen. Currently, Surveyor is laying mattresses for the Greenstream (Libya- Sicily) pipeline in the Mediterranean. “We’re exactly where we set out to be three years ago. We set out a business plan then and we’ve done what we said we would do. We’ve got our two new ships, and we’ve sold off some older ships (Sword, Eagle and Sabre). We will build more new vessels, along the lines of what we have built. We see a need for more of that type. “But, as the North Sea standby industry contracts, we’ve no intention of getting out of it. We will refresh the fleet. Three or four years ago, I said we would end up with very few North Sea customers, which is what happened because of the mergers. “Now it’s quite the reverse, with companies like EnCana, PetroCanada, Tuscan and Apache coming in. A few years ago no one had ever heard of Talisman, now they’re one of our biggest customers.” Douglas again: “Like Seatronics and CIS, this £24million investment is breaking us out of the North Sea standby tradition by providing another platform for internationalisation and diversification. It is One of the six inspection units owned and operated by ChainCo is prepared for taking Craig global on a scale hitherto unimaginable and has the delivery to Rotterdam. potential to become a huge business in its own right.”

Time & Tide - The Craig Group Story All told, the CIS, Catering and Seatronics businesses account for the bulk of Craig’s international business that last year reached £45million out of an overall group turnover of £90million. Strip down the £45million and about £15million is attributable to CIS, £10million to Seatronics, and the balance to catering plus the International Mooring Services and ChainCo businesses. The overseas element of Craig’s business portfolio is expected to continue growing strongly, with a sizeable contribution expected from the new ships. To make it easy for clients, the group’s services are being increasingly marketed through Craig Energy Services, which was launched in 2002. This is now a common gateway to CIS, Seatronics, International Mooring Systems, chain testing, ships and catering and is designed to facilitate the delivery of these services into emerging markets like the Caspian and West Africa. Importantly, each one of these adventures has had the backing of venture capital provider 3i, which was invited to take a minority interest through a private placement when George retired as chairman in 1988. Moreover, 3i has since proved invaluable in Lord Provost Wyness officially opens the dry dock in 1993. identifying acquisition targets for the group. This change was important to Douglas, at that time, as it delivered a clear signal that the Craig Group would stay ‘family’. “It’s the same for every family company, you want to know which side of the family is doing what and you have to come to some agreement over which part of the company is run by whom. “The obvious step was to release the capital on Uncle George’s side. A private placing was sought with 3i. It was relatively inexpensive funding and we’ve given them a good return since.” But the story doesn’t end there as there are further pieces in the increasingly complex portfolio of businesses that comprise today’s Craig Group, or were once part of it … ship repairing, wire rope and, last but not least, leisure.

SHIP REPAIRING – GONE BUT NOT FORGOTTEN Ship repairing had been part and parcel of Craig Group since its inception … a natural complement to owning a large number of fishing and later offshore support vessels, that is, until the business was sold in June 2002. The Border Springer undergoing repairs in dry dock.

65 For most of the past 70 years, the company had maintained its fleet and earned useful additional revenues through contract repair and overhaul work. At one point, it was a division of North Star with Bob Lindsay as manager but, in 1993, an opportunity arose to further develop this aspect of the group. Catalyst was the final demise of ship building in Aberdeen following closure of the famous Hall Russell Shipyard that once built vessels for George Craig & Sons, its subsidiaries and many other fishing companies and which was owned and operated by A&P Appledore in its final years. The last launching was the passenger vessel St Helena for the UK South Atlantic service. She remains a living reminder of Aberdeen’s once superb and now lost shipbuilding tradition. While most of the site was flattened for reconstruction as the Telford Dock, complete with hard-standing and warehousing, landlord Aberdeen Harbour Board put the graving dock, which Appledore had been working as a repair facility in its own right, out to competitive tender. Craig won and immediately established the subsidiary Craig Scottish Enterprise Director of Energy, Brian Nixon, officially opens Anchor Group Ship Repairing Ltd. House, new premises for ChainCo and IMS in September 2003. “We were doing fairly large conversions within our own fleet and had 35 ships at that time. It was also thought that we could attract outside business,” notes Douglas. That business included overhauling offshore support tonnage, large fishing vessels, survey ships, ferries and even a small drillship or two. The facility was marketed widely in its own right. One of its more interesting jobs was a £1million contract won in 1995 to overhaul the dive support vessel Witch Queen, which called into Aberdeen en route from Mumbai (Bombay) to the Gulf of Mexico. But a reduction in the size of the Craig fleet coupled with less contract work than had been anticipated eventually led to a decision in 2002 that Craig Group Ship Repair should be sold on. In the event, it went to A&P Group, but apparently a very different company to the earlier A&P Appledore that failed to make a go of Hall Russell. With a network of 15 facilities and core focus on ship repairing and overhaul, the hope is that Aberdeen’s dry dock will turn High holding power anchors and mooring a profit for many years to come. Craig Group Ship Repairing equipment. operations director, John Allan transferred across to A&P with his staff and workforce. “In any case, we’re a ship owner, not repairer, which is why we came to the conclusion that another operator with other similar operations

Time & Tide - The Craig Group Story should run the facility. It was done on the basis of a complete transfer “Alfie wanted to prove that he could win every major contract in the of undertaking, the union was very happy and so were the men,” adds North Sea for slings, which he did for us, with me. It was a joint Douglas. thing, so much so that I travelled the world to places like Korea and Germany, where we wouldn’t stamp our name on wire rope until we WIRE ROPE – LINKING PAST WITH FUTURE had visited the manufacturing plant.” Wire rope was, in a sense, also an integral part of Craig from day one Before being sold off, Wire Rope Services was in its own right because of the need to keep the company’s fleet of trawlers equipped ordering millions of metres of 16mm diameter wire rope. Nowhere with fishing gear. So making a transition to the North Sea offshore else in the world was there a market as demanding and large as the industry and creating a business utilising the skills of characters like North Sea. Bob Friend, Alfie Duncan, Ron Ritchie and David Glennie was a One of the interesting aspects of Wire Rope Services is that, some natural progression, according to Douglas. time before the sale to Bridon, a mooring division had been set up “We had Wire Rope Services for the best part of 10 years before we with a view to renting supplementary mooring equipment. But sold the business in 1994 to Bridon. It was one of the businesses that Bridon was not keen about taking over this part of the business. I cut my teeth on. We had acquired Montrose Wire Rope Services back in the 1980s and grew it to become the largest rope-sling The result was that Craig Group IMS (International Mooring manufacturer, rigging shop and lifting equipment management and Systems) was retained, developed and today operates in the North Sea inspection service base in the UK. and out of Cape Town, Houston and Singapore, so contributing to the overall internationalisation drive. 2002 ranks as one of its most “During those 10 years one of the greatest characters in the business successful and profitable years. The unit provides mooring equipment was Alfie Duncan who was known as Mr Wire Rope. He trained me rental, sale and management services as well as consultancy in on how to treat people and how to market. He was a great mooring design. ambassador for the company and inspired me. In 2000, the chain-testing specialist ChainCo was acquired to “In those days, you would have customers out for lunch every month complement the moorings rental side. The company offers worldwide or so. When we had eaten, Alfie would say: ‘Douglas, you need to tell re-certification, repairing and upgrades of heavy duty mooring a joke … lighten the conversation’, or, during meetings with oil chains. companies he would say: ‘You said too much, or too little’.” An element of déjà vu is creeping into IMS in that rigging shops are Alfie stuttered a bit, yet was very effective with people in a quiet way. back on the agenda, notably in Cape Town and potentially West The empire grew to cover facilities in Aberdeen, Inverbervie, Africa. This ‘back to the future’ trend promises to add a significant Peterhead, Great Yarmouth and Liverpool before it was sold, with 142 jobs transferring to Bridon. further dimension to the workload of general manager Alan Duncan, who also looks after ChainCo. “Most of the time, procurement people wouldn’t meet with you unless you were important. But Alfie had a way of being liked so Despite the possible re-emergence of rigging shops, Douglas has no much that he always got you in the door. Part of it was because he regrets about selling Wire Rope Services to Bridon. In terms of always slipped chocolates to the reception girls at Christmas, and they ensuring Craig Group was performing efficiently in all of its business loved him. streams, the disposal was right for future strategy. “When we were opening up rigging shops, we created a computer- based lifting equipment management inspection service (LEMIS) LEISURE DIVERSIFICATION that was containerised and which Bridon liked the look of. This was Leisure seems a strange activity for a hard-nosed shipping company one of the reasons why they acquired Wire Rope Services. steeped in North Sea lore, but not so out of place when one considers

67 Craig Leisure’s Italian Restaurant on Bon Accord Street, Via Milano. The Burger King drive-through at the Beach, one of the five outlets operated by Craig Leisure.

that Craig has a long track record in industrial catering supplies and While the subsequent purchase in January 1996 probably raised a few related services. eyebrows along Aberdeen’s harbour-front and in the oil community, it opened the door to further leisure opportunities, not just four more The sale of Wire Rope Services put the best part of £10million into Burger Kings dotted around Scotland, but also a restaurant on Bon the Craig coffers, not long before an opportunity to diversify into Accord Street, close by the city’s main thoroughfare, Union Street. It leisure presented itself … the River Oaks Foods Burger King would come to be known as Via Milano. franchise at Altens, Aberdeen, packaged with the King’s Links golf driving range located almost cheek by jowl with Aberdeen Football It was Bruce who inspired that particular idea. He had visited the Club’s stadium at Pittodrie. well-regarded Edinburgh restaurant Bar Roma where the owner had asked for golf lessons. Payment … Only the recipe for creating a top A deal was struck with Bruce Davidson, then managing director of notch Italian restaurant in Aberdeen! River Oaks and Grampian Golf, and who was also the golf professional at the driving range. Says Douglas: “Not only was Bruce a pro golfer, he is now director of golf at the prestigious River Oaks Country Club in Houston. He is It was an opportunity that was attractive, and not just because of the dedicated to promoting Grampian-Houston junior golf with annual Craig boardroom’s penchant for golf. The Burger King was superbly pro-ams held in Aberdeen to raise funds for giving the best of Texas located, with the bonus that it was also the Granite City’s first drive- golf career opportunities to 15 or so of the most promising North- through. east of Scotland teenage talent.

Time & Tide - The Craig Group Story “A very good entrepreneur, Bruce recognised Bon Accord Street as an winning an Ernst & Young Entrepreneur of the Year Award and the opportunity as the Galleria shopping mall was being created there Junior Chamber Grampian Industrialist of the Year. and we were the first covenant there. That’s how Via Milano came In a sense the future holds more of the same, only different, and still about.” avowedly as a family company, although not averse to going public The 150 seat establishment’s motto reads: ‘If you have a passion for with one of the core activities, should opportunity and the right good food, come to Via Milano, Aberdeen’s premier restaurant’. circumstance prevail. As for King’s Links, this is regarded as one of Scotland’s largest and North Star’s fleet, which in 2001 became the first in the UK to most advanced golf facilities, featuring 58 floodlit bays on two tiers, a become wholly compliant with the International Safety Management purpose-built short game area, and indoor and outdoor putting (ISM) code, remains at the heart of the business; only the perspective greens. Further, the facility has a video academy with the latest is now international and not just parochial North Sea, with great software, plus a team of five fully qualified PGA professionals. King’s hope riding on the Grampian Explorer and Surveyor. Links was voted Scotland’s top range in 1996. If they are successful, and there’s no reason to suppose that they will To grow the Burger King franchise further demands a minimum of not be, then investment in further new, specialised ships would £500,000 per unit, though this is easily bumped up to £1million if appear inevitable. Moreover, acquisition of another company the requisite land is also purchased. Nonetheless, the view is that the operating similar specialised ships could come onto the agenda if that five drive-throughs built to date have been a good investment, turns out to be a strategically sensible way of leveraging faster growth representing half the franchise’s outlets of this type in Scotland. more effectively than placing orders for new vessels and then waiting a year or so for their delivery. A measure of how good a start Craig made in the Burger King game is that the Altens outlet – Aberdeen’s first drive-through – was named Not that the North Sea has lost its importance to the North Star top one of the top 10 British branches of the franchise in early 1997. team. Callum Bruce, with co-directors Gordon Wallace (commercial), Brian Lamb (operations) and Robin Smith But how does Douglas justify Craig Group Leisure, currently led by (engineering), fully realise it will remain a vital cash generator for MD Andrew Thomson, given that most of the company’s business is years to come and acquisitions are not out of the question either. The with oil companies and main contractors; after all the offshore process of fleet consolidation grinds along inexorably, BUE with industry mantra since the late 1990s oil price downturn has been ‘to Viking being the latest merger. It is a place where only the fittest and get back to core business’? Moreover, it is very demanding of smartest will survive. Craig is such a company. management time. The Scottish fishing industry may be in deep crisis, but Craig is still “As long as it makes money,” is the reply. “It’s not rocket science. It’s in the fray through Grampian Sea Fishing. In 2002, four vessels were about caring for people. We’ve enjoyed it. Leisure is a total decommissioned with more certain to go this year because of the diversification from what we usually do and it’s caused a lot of talk further massive reductions in the Scottish fleet demanded by Brussels and given us a lot of publicity. as part of the 2003 North Sea quotas deal. “I suppose it’s one of the advantages of being a family firm. If we had Doubtless some tough decisions will have to be made over the next been a public company, we might not have been allowed by the year or two with Grampian Sea Fishing, which has some excellent, shareholders to do such a thing. modern boats in its fleet. But, as group chairman David Craig says in Part One of this brief history, the future very much depends on THE FUTURE decisions coming out of Brussels and, for that matter, the UK Government. The big question of course is, where does Craig Group with its £90million turnover and 1,500 employees go from here, having this Scotland’s fishing is going through a challenging time, but those who year achieved very clear recognition for its success by Douglas are prepared to weather the storm could find bright prospects within

69 David Craig receives his honorary LLD from Douglas Craig receives the Ernst &Young Entrepreneur of the Year Award Robert Gordon University. 2003, from Chairman Alasdair Locke. a restructured industry.Good ships crewed by good men can always In Nigeria, a joint equity deal was being discussed with an indigenous make a living, so long as they are given a chance and Scots boats have company in Lagos and Port Harcourt … widely regarded in the a reputation for being among the best found and most efficient in upstream oil and gas industry as nerve wracking because it is Nigeria, Europe. but clearly exciting too. Until recently, the Scottish banks treated them as an excellent With a base carrying the Craig Energy Services brand now established investment, sure in the knowledge that loans would be paid down at Cape Town, thoughts have turned to the possibilities of Angola, fast. Hope is that such a degree of trust in an industry can be restored where a veritable freight train of huge deepwater discoveries await in the near future. development and where offshore logistics and services remain rudimentary. Huge store is being placed on the ‘new’ businesses - CIS and While the 1,860sq.m South African base is well placed to service Seatronics, and on further internationalisation of catering, all the Angola and Namibia, not to mention South Africa’s own growing time taking cues from the customer … that most global of industries, offshore industry, and potentially around the Cape to the western upstream oil and gas, especially offshore. The story has barely begun seaboard where oil and gas exploration is accelerating, Angola’s for CIS in the Caspian and Africa. Both areas offer tremendous business potential is already so large that it could soon justify a facility business prospects. Philip Mundie, Depute Lord Lieutenant of of its own. There is also Namibia to consider. Aberdeen is playing a valuable role in this process. Now six years with the company, Freddie Craig says: “Not everyone Even as this book was being written, new opportunities were being likes change, but progressive change in the right direction is essential negotiated and secured by the group through global gateway Craig so that the group continues to grow and prosper in a fast-moving, Energy Services and particularly via CIS because of heavy emphasis competitive international market place. This in turn creates career on the supply chain, that is, procurement. opportunities, not only in Aberdeen but worldwide.

Time & Tide - The Craig Group Story “It’s great to see many young managers now working overseas and I “None of them want to join in immediately and there’s no pressure have no doubt that this trend will continue, leading to further for them to come in. The worst thing would be if they were forced to excellent opportunities for those willing to travel and grasp the come in, or come in anyway and discover they lack the necessary excitement of growing the company’s increasingly global business.” ability. That would be a waste. It is all about having a vision and being clear in what one is trying to “They’re being encouraged to go and do their own thing … stamp achieve. their authority on their own careers. And if they enjoy it half as much as I did way back, then hopefully the business may go another Douglas picks up the thread: “You have to know where you’re going generation. and having a measurable business plan with a realistic budget to achieve a return on capital is critical. You have a vision, and for us it is “I hope so. In some ways, after 70 years, we’re only just beginning. to diversify and globalise, yet stick to what we know and be customer- There’s so much more that can be achieved.” led. “You must have the right people. If you don’t have that, then the dream will not be fulfilled. You have to have people prepared to travel to places like Kazakhstan and Nigeria and be prepared to ‘rough it’ if necessary. “You have to be good enough to attract high calibre people who are well referenced and to train them in order that they can fulfil what you’re trying to achieve as a company.” That said, a further critical factor is keeping a family feel to Craig – something that many companies lose sight of as they go for growth – yet still adopting public company standards of corporate governance. Craig Group main board in 2001. “We don’t want to be surrounded by ‘yes’ people who work to try and please us by saying the right things. We need a lot of commonsense, professionalism, dedication and humour; not always saying things you want them to say, but knowing how to develop Craig Group. “It’s up to me to choose the right people to do that. That’s the skilled bit. As golfer Gary Player once said: ‘the more you practice the luckier you get’. And golfing legend Ben Hogan in The Secrets in the Dirt said: ‘you have to work and practice at it ‘til it hurts’. In other words, there are no short cuts.” So what of the next Craig generation – Samantha, Steven and Andrew, all of whom hold or are pursuing business degrees? Says Douglas: “I was recently on a golfing trip with son Steven and I asked him whether he might come into the business. The reply was: ‘You do the work of three people, so I suppose there must be room The next generation – Samantha, Andrew & Steven, for us three to come in’. with parents Douglas and Isobel.

71 TABLES & PHOTOS

73 FISHING VESSELS PURCHASED/BUILT FOR GEORGE CRAIG GROUP SINCE 1933 GRAMPIAN SEA FISHING SHARE SEINE NET VESSELS

Time & Tide - The Craig Group Story STANDBY AND SUPPORT VESSELS

75 STANDBY AND SUPPORT VESSELS (CONT’D)

Time & Tide - The Craig Group Story NORTH STAR STANDBY RECORD OF RESCUES CURRENT EMPLOYEES WITH MORE THAN 20 YEARS SERVICE (AS OF SEPTEMBER 2003)

77 Craig Group Leisure receive the Investors In People award. Craig International Supplies receive the Investors In People award.

Grampian Sea Fishing receive the Investors In People award. Craig Group stand at Offshore Europe 2003. (Courtesy of Roustabout)

Time & Tide - The Craig Group Story Launch of the Grampian Explorer, 2003. From left: Douglas Craig, Isobel Craig John Johnston (left) and Steve Leighton, captains of the Grampian Venture, receive and Callum Bruce (Managing Director of North Star Shipping). Shell Safety Award for more than two thousand days without incident from Roger Patey, Shell Deputy Managing Director. (Courtesy of Kate Sutherland)

The board of North Star Shipping. Colin McLean, Karl Dickinson and Michele Ross of North Star receive a National Safety Award from the British Safety Council in 2003.

79 The Fisherman’s Mission annual conference of superintendents at Inverness. Princess Anne opens Craig Group Ship Repairing extension.

Craig Group sponsors Aberdeen University music department. Pavarotti look-a-like entertains Lord and Lady Provost Reynolds at the Craig Group stand, Offshore Europe 2003.

Time & Tide - The Craig Group Story IETIDE TIME

his is the story of Aberdeen’s Craig Group, a family business whose beginnings

are anchored in the City’s once powerful fishing industry, but which has largely & been displaced by the prosperous North Sea oil and gas industry. Established in the 1930s, Craig grew to become one of Scotland’s most successful trawler fleet owners prior to diversifying into the offshore industry and evolving to the multi-faceted, award-winning fishing to international energy services group that it is today. h tr fteCagGroup Craig the of Story The It is a voyage that is made all the more remarkable by the fact that its chairman, David Craig, was there right at the beginning when his father established the business. He has witnessed massive change ... from being a deckhand on an ancient steam trawler reliant on gas carbide and paraffin for lighting to, on March 7th this year, hosting the christening of Grampian Explorer, an £11million, state-of-the art, go anywhere offshore support vessel.

THE AUTHOR: Jeremy Cresswell has a passion for the sea that started with voyages to Canada and New Zealand during his childhood, then evolved to yacht cruising, aquaculture and commercial fishing. Today he is an energy and maritime affairs journalist and is editor of The Press and Journal supplement Energy.

The Story of the Craig Group Craig Group Ltd, 207 Albert Quay, Aberdeen AB11 5FS, Scotland UK Tel: +44 (0) 1224 592206 Fax:+44 (0) 1224 584174 www.craig-group.com Jeremy Cresswell Aberdeen Lagos Stavanger Cape Town Baku Atyrau (KZ) Abu Dhabi Singapore Perth Houston New Iberia Trinidad Faroe