Progress in Diversifying the Caithness and North Sutherland Economy Autumn 2013 IFC-P1.Pdf 1 07/10/2013 10:13:57

FrontBack.pdf 1 21/10/2013 10:42:26

The Did you know?

O 60% of the world’s underwater cameras are built in Wick by Kongsberg Maritime, and have been used in the deepest parts of the earth’s oceans.

O Subsea 7 at Wester assembles and moves some of the world’s Right largest movable objects (pipeline bundles for the oil & gas industry).

O KP Technology in Wick manufactures and exports devices used for sensitive measurements in nanotechnology fields.

O The Pentland Firth area is the world’s best site for tidal power, and could meet half of Scotland’s electricity needs. Place O 60% of sites competing for the Scottish Government’s £10 million Saltire Prize for marine energy are off the coast of Caithness or North Sutherland (at Farr Point, North Sutherland; the Inner Sound and Ness of Duncansby in the Pentland Firth).

O Scrabster is the closest UK mainland port to the developing West of C Shetland oil & gas fields. M Right Y O Wick is the closest main port to the developing offshore wind projects CM in the Moray Firth.

CMY K Time Right

Contacts & Feedback Keep in touch with progress: www.cnsrp.org.uk/blog Follow us on Twitter: @eanncnsrp People Eann Sinclair, Programme Manager. T: 01847 896834 Iona Gunn, Administrative Assistant. T: 01847 890017 Progress in diversifying the Caithness and North Sutherland economy Autumn 2013 IFC-P1.pdf 1 07/10/2013 10:13:57

Contents The right time 1 The right time for Caithness and North Sutherland

2 A sustainable economic future - John Swinney MSP 2011-14 Delivery Plan targets and progress for Caithness and

3 Focus on: Socio-economic impact of Dounreay decommissioning Focus on: Business Services How we help North Sutherland 4 Focus on: Natural Retreats, John o’Groats Superfast Broadband THE WORK of the Caithness & North Sutherland Regeneration Partnership 5 Focus on: National Nuclear Archive has stretched across many areas of the Focus on: Make the Right Connections economy during this year. Significant work from our core partners has led to investments in educational and digital C 6 Focus on: Employability infrastructure, in new apprenticeship M Focus on: Engineering, Technology & Energy Centre (ETEC) places and new targeted Y apprenticeship programmes. And CM 7 Forward look crucially in supporting the commitment MY by around 50 companies to set up or

CY grow their businesses in this area. We

CMY 8 CNSRP Key Players have enjoyed a number of visits from senior government ministers as our K Area economy in 2020 voice continues to be heard in both 9 Scottish and UK Governments, and the impacts of our partnership activities Back Did you know? have been positively assessed in an independent report.

These are challenging times but we believe that it is the right time to push forward with our mission: to lead the economic transition of the Caithness and North Sutherland economy from one that is nuclear-dependent to one which is more diverse. In the pages of this review we hope that you will see evidence that the CNSRP partners continue to work effectively together on Sir Anthony Cleaver Councillor, Drew Hendry this important mission.

Sir Anthony Cleaver Independent Chairman CNSRP Executive Board

Councillor, Drew Hendry Chairman CNSRP Advisory Board 1 IFC-P1.pdf 1 07/10/2013 10:13:57

Contents The right time 1 The right time for Caithness and North Sutherland

2 A sustainable economic future - John Swinney MSP 2011-14 Delivery Plan targets and progress for Caithness and

CY grow their businesses in this area. We

Sir Anthony Cleaver Independent Chairman CNSRP Executive Board

Councillor, Drew Hendry Chairman CNSRP Advisory Board 1 P2-P3.pdf 1 04/10/2013 13:09:08

Focus on: A sustainable economic future How we help By John Swinney MSP. Cabinet Secretary for Finance, Employment & Sustainable Growth, Scottish Government Socio-economic impact of THE PARTNERSHIP’S 2011-14 Delivery Plan sets out a series CAITHNESS AND North Sutherland able to officially open the offices of a new Dounreay decommissioning of commitments from partners. represent Scotland in microcosm, working renewables business in Thurso and I had These are: to meet the opportunities and challenges the pleasure of attending the Annual THE ECONOMY of the north of Scotland “These are challenging times for the of an economy in transition. The north of Dinner of Caithness Chamber of is changing, according to an independent business community, and for the area’s O Working with existing area Scotland is blessed with significant assets Commerce to hear the views of area report commissioned by CNSRP wider workforce. But this report does businesses to help them diversify such as access to unrivalled natural business leaders. partners Dounreay Site Restoration Ltd. support our view that the economy of the and grow their businesses. resources in wave, wind and tidal power and Highlands and Islands Enterprise north is changing and that individuals O Delivering a targeted programme of and well positioned to benefit from a new In all of this I have been struck by the and published in 2012. and companies are responding to the inward investment activity focused boom in oil and gas investment. It is an sense of common purpose at work, and challenges and trying to capitalise on on opportunities such as marine area with a highly skilled population of the key coordinating role played by the Local agencies and business leaders future opportunities. We work closely renewable energy, oil & gas, data where decades of experience, built up in Caithness & North Sutherland have welcomed the findings of the study with CNSRP partners and are helping traditional industries and world leading Regeneration Partnership. The centres, contact centres and which show the percentage of jobs drive change with collaborative higher-skill back office functions. technologies, is finding new outlets. And it investments in key projects being made dependent upon Dounreay has initiatives such as Make the Right is a land whose heritage and environment by Scottish Government are part of a decreased from 15% to 10% since 2006, Connections, Invest Caithness and the O Supporting the delivery of key speaks to consumers and to visitors from powerful partnership approach that will and the number of new businesses being Innovation Challenge.” enabling infrastructure such as around the world, through its unique stand the area in good stead over the created has risen. ports and harbours, road, rail and produce and places. crucial months and years ahead. Not for View the full report at: air transport, skills transition and the first time Caithness and North The study – “The Socio-economic http://bit.ly/17ZdShK digital connectivity. In responding to these challenges and Sutherland can establish a leading Impacts of Dounreay Decommissioning” opportunities I have been particularly position as new economic opportunities – was undertaken by Grangeston heartened to witness at first hand the open up. Economics as a follow-up to a previous very spirited and coordinated approach study from 2006. It examined economic Focus on: being taken to the task of securing a The Scottish Government remains a data as well as surveying Dounreay sustainable economic future for the area. committed partner in CNSRP. The workers, contractors and local C During this year I have seen encouraging Partnership is one the area can be proud supply-chain companies. progress in developing the area’s ports of, and I look forward to continuing our M Business Services to prepare for opportunities in the work together and seeing further Of the supply chain companies Y John Swinney MSP renewables and oil & gas sectors. I was evidence of progress on return visits. surveyed in association with Caithness CM Chamber of Commerce, 78% said their turnover had increased since 2006 and MY almost half of those said the proportion CY of their turnover linked to Dounreay work had decreased. CMY 2011-14 Delivery Plan targets and progress K Sir Anthony Cleaver, independent OUR EMPLOYMENT targets were The table below shows the number of jobs projected by Chairman of Caithness & North that by March 2014 the partners Sutherland Regeneration Partnership in CNSRP would support the companies against these overall sectoral targets (CNSRP), said “Whilst there can be no room for complacency, these results are creation or retention of: encouraging on a number of levels, not O 100-185 full-time jobs in Progress Against Job Targets 2011 - 2014 least because they take place against the energy sector the wider backdrop of economic 200 uncertainty we have seen in the last few years. O 40-90 full-time jobs in the business services sector Twice as many Dounreay workers are 150 expressing an interest in setting up a Escape Business Technologies O 25-55 full-time jobs in the business, and from a position in 2006 tourism sector where the area lagged behind the rest of EVIDENCE OF the area’s ability to supported by a £98,000 employment the Highlands and Islands in business compete on a global level in business grant from CNSRP partner Highlands O 5-20 full-time jobs in the 100 start-up rates, we now see very healthy services has come this year from a number and Islands Enterprise (HIE). food & drink sector levels of new business creation.” of sources. Two excellent examples of this are Escape Group and Aon Hewitt. From its Caithness base, Escape staff O 30-60 full-time jobs in 50 The report also highlights the important manage a remote helpdesk for clients other sectors role the Partnership has played in the Escape Business Technologies across the UK, Ireland, Middle East, Asia process of economic change. Data and Australia. The company also employs collated by HIE, Business Gateway and Escape Group moved into larger 35 people at its headquarters in Aberdeen 0 North Highland Regeneration Fund show premises in Thurso in 2013, from its and at an office in Glasgow with a turnover Energy Bus Tourism Food & Other that over 150 businesses have existing premises just outside the town. of over £3 million. committed to creating or retaining The company provides IT infrastructure Services Drink hundreds of jobs in the last five years. consultancy and support to local, Director Mike Bain, who is national and international clients and is originally from Thurso, Low Jobs Target High Jobs Target Current Jobs Projection Trudy Morris, Chief Executive of now investing in new office founded the business in 2 Caithness Chamber of Commerce, said accommodation and jobs. The move was 1999 with business 3 P2-P3.pdf 1 04/10/2013 13:09:08

partner Robin Parkinson. He said: “It is Aon Hewitt desire to expand our presence in the fantastic that the government supports public sector market and this represents Focus on: AON HEWITT, the global human efforts like these. As in any business the an ideal opportunity to further that resources and outsourcing firm, this year Superfast right investment can see good returns. ambition. We are committed to growing purchased the Pensions Administration Since the grant was awarded in the business in Caithness over the National Nuclear Archive Office (PAO) from Babcock International. December 2012, Escape has created coming years.” Broadband The PAO had previously managed the THE NUCLEAR Decommissioning extremely important national facility and four new jobs, bringing the total to nine pensions of most of the UK’s civil nuclear Authority (NDA) - a CNSRP partner - has I'm particularly pleased about the MODERN DIGITAL connectivity is staff with an annual investment in widely recognised as a driver of pensions from its base in Caithness. announced its decision to proceed with additional economic benefits that will Caithness of over £250,000 per annum. increased productivity, innovation and the next phase of the National Nuclear come to the north of Scotland by placing international trade. Its impacts will be Based at the Forss Business & Archive project. The project will see a the archive in Caithness." Since expanding to Caithness in 2010, both social and economic. In March Technology Park, around 30 staff work new purpose built archive facility the company has built up a strong 2013 a £146 million investment project for Aon Hewitt as the company continues constructed on land currently owned by The next steps for the project are to reputation in the area where they was announced to deliver high speed to seek new business in the benefits Highland Council near Wick John o’ develop the commercial model before fibre broadband (known as Next manage various IT packages for clients administration industry. Aon Hewitt Chief Groats Airport to provide long-term engaging with the market to identify and Generation or “superfast” broadband) operating across the Highlands and Executive Officer Andy Cox, speaking at storage of records and other archive procure a suitable partner. Further work across the Highlands and Islands. Islands, Scotland and internationally. The a meeting in Caithness, highlighted the material from civil nuclear sites in the is also needed on the design of the skills and talent available in Caithness The project, led by CNSRP partner company’s intention to grow its business UK. The archive will be operated on facility before the construction phase can played a major part in attracting us to the Highlands and Islands Enterprise (HIE) in Caithness. NDA's behalf by a specialist commercial get underway. The current plans indicate region, and we see this as a growth area and delivered by BT, is being hailed as partner and is expected to bring more that a commercial partner will be the UK’s most complex and for us as we continue to build our IT “The development and growth of the than 20 sustainable jobs to the town. appointed during 2013 and the facility will challenging broadband project ever. outsourcing business within the energy Forss business over the next three years be operational in early 2016. The public sector investment towards sector. Escape remains focused on the is a key part of our strategy to enter and As well as containing nuclear records the contract is £126.4m. It is being global oil and gas industry and have build our public sector pensions from across Britain, the NDA is working delivered through the Scottish diversified into the construction and business. As market leaders in pensions Government broadband fund, which Andy Cox, CEO, Aon Hewitt in partnership with The Highland Council renewable industries as well as nuclear.” administration, we have expressed our incorporates funding from Broadband to ensure that the National Nuclear Delivery UK (BDUK is responsible for Archive will also provide a new, publicly increasing access to broadband on accessible home for Highland Council's behalf of the UK Coalition North Highland Archive. Government), and also includes up to Focus on: £12m from HIE’s own budget. C NDA chairman, Stephen Henwood, said Roy Kirk, HIE’s Area Manager for "This is a significant decision for the M Caithness & Sutherland, explained: NDA. The announcement signals the “Benefits from Next Generation Y Natural Retreats, John o’Groats culmination of an extensive piece of work Broadband are likely to include

CM THE REPOSITIONING of John o’ Groats either Highland Council (through completion of phase 1 of the to devise a strategy for the long-term increased opportunities for more as a tourism destination has made rapid Business Gateway) or HIE. regeneration of John o’ Groats. This has safe management of a huge volume of remote and rural areas, a potential MY progress since the announcement by very much been a joint effort with the records dating back to the 1940s. The boost to economic development, more Stephen Henwood, NDA chairman flexible ways of working, improved CY Natural Retreats, Heritage GB and HIE Natural Retreats Chief Executive Matt support and commitment from many archive to be built in Wick will be an retention rates of our young people as of a £6M project to develop the area Spence paid tribute to the support members of the local community, CMY well as helping attract new residents. around the iconic “end of the road”. received from the community and local Highlands and Islands Enterprise and the Connectivity is crucial in supporting K £1.8M of the project cost was invested partners in bringing the project to fruition: Highland Council having been essential new research and development in by HIE. Summer 2012 saw the opening to the success of this vision to establish digital health, remote education, of 23 eco-friendly self catering lodges as “We are delighted that after three years this iconic landmark as a high quality and Focus on: delivery of public services and helping well as a new cafe, storehouse and hard work we are approaching the sustainable tourist destination.” maximise growth in key sectors. outfitters. Wildlife tours from a RIB boat Make the Right Connections The project plans to make a massive also recommenced from John o’ Groats public investment into fibre harbour, whilst work continued on the THIS £2.3M programme is managed by So far around 33% of those who have infrastructure to deliver next generation “Inn at John o’ Groats” - luxury self- Caithness Chamber of Commerce with benefitted from the programme are from broadband. The network will provide catering apartments based around the funding support from CNSRP partners Dounreay Site Restoration Ltd, with the Fibre-to-the-cabinet (FTTC), where original hotel complex on the seafront - NDA, DSRL and Skills Development remainder being either from the high-speed fibre cabling is connected opened in August 2013. Scotland as well as the European Dounreay supply chain or from local area to a street cabinet near a user’s home Social Fund. businesses. The programme is focused or business, delivering downstream A further effect of the new developments on future opportunities in the key sectors speeds of up to 80Mpbs and upstream The aims of the programme are to: speeds of up to 20Mbps. at John o’ Groats has been to provide identified in CNSRP’s programme - Fibre-to-the-premises technology O Support Dounreay supply chain encouragement to local businesses energy, business services, tourism and (FTTP) will be deployed in certain seeking to play a part in the rejuvenation businesses to redefine their capabilities food & drink. areas – usually accessed by business of the north’s tourism industry. “Flavours” to fit emerging opportunities as it delivers much faster speeds. ice-cream shop has opened and has O Market these redefined skills to attract The Programme is also working with key gone from strength to strength. supply chain companies to compile a In addition, Points of Presence (PoPs) inward investment will deliver wholesale Next Generation “Tickety-Boo” has also opened in detailed database of skills, to support O Encourage personal motivation for change Broadband (NGB) to main population premises at the John o’ Groats craft marketing of the area’s capabilities. The centres at prices on par with village, whilst the owners of the Seaview O Provide extensive, practical career MtRC website contains key information Scotland's cities. These PoPs have the Hotel have purchased the neighbouring development, retraining and on the programme, along with case capability to provide dedicated Caberfeidh Guest House and have redeployment studies on people who have used its high-bandwidth services, such as developed the business resources to help them or their business Ethernet, which are widely used by O Help match re-skilled people with new with further investment. to diversify. larger businesses, mobile The latter two opportunities operators and the businesses have The programme runs until December Key contact: Marcus Mennie, public sector.” received support with 2014, and is on target to meet its Project Coordinator 4 their growth plans from projected number of 800 beneficiaries. www.mtrc.me.uk 5 P4-P5.pdf 1 04/10/2013 13:10:37

Focus on: Focus on: Forward look Engineering, Technology IN ORDER to ensure our area is in the development of a skills investment Employability position to benefit from future plan for the area. The Partnership’s CNSRP BROUGHT together a number The event was led by Caithness employment opportunities the partners in Delivery Group identifies a lead partner of partners to look at ways to increase Chamber of Commerce and over 30 & Energy Centre (ETEC) CNSRP this year agreed to focus efforts to work with the developers of each awareness of current and future areas of organisations and companies exhibited on a small number of key priority project, and the Group also meets employment opportunity and to help on the day, with over 320 people projects. These were chosen for monthly to ensure that support for the people gain access to support that could attending. Several companies were able attention because of their likely impact projects is maintained. help them enhance or refocus their to recruit new staff on the day, and on the area’s future economic prospects, either through direct employment CNSRP Programme Manager Eann skills. The result was a programme of many visitors were able to take creation or by creating facilities required Sinclair, who chairs the Group’s monthly activity that led in February 2013 to the advantage of workshops on issues such to attract businesses to our area. meetings, said: “We are working closely staging of a full-day event called “Jobs as CV writing. with each other and with project partners and How to Get Them”. The projects are: the servicing of the such as Scrabster Harbour Trust and Scrabster Enterprise Area site; the Wick Harbour Authority so that we attraction of offshore wind business to clearly understand project timescales Wick Harbour; the further development and can identify support needed to push of facilities at Scrabster harbour; and projects forward.”

CY First Minister Alex Salmond CMY officially opened the ETEC

K THIS YEAR has seen some major the facilities provided further evidence milestones for the new Engineering, of the central role that Caithness will A big turn out for the “Jobs and How to Get Them” event in February 2013 Technology & Energy Centre (ETEC) at have in the development of the North Highland College in Thurso. renewables industry. Scrabster Harbour Almost £9M was invested in the planning, In September 2012 ETEC welcomed the construction and fit out of this state of the first intake of 12 students to its North art facility by a range of organisations Highland Engineering Apprentice including CNSRP partners the NDA, Programme. Developed by North Scottish Government, the Highland Highland College with support from Council and HIE. In designing the facility, Scottish Funding Council and CNSRP College staff worked closely with industry partner Skills Development Scotland, the to ensure that it provided the most students will be employed by the College relevant and realistic learning and during their course, with work training environment for students, as well placements at relevant area companies. as providing companies with a modern training space for current workforces. First Minister Alex Salmond noted of these apprentices: “marine energy In August 2012 First Minister Alex trainees here are the people who will Salmond officially opened ETEC, and develop the technology and manufacture the neighbouring Centre for Energy & the devices that will provide green the Environment with its major MaREE power to Scotland and beyond. That is research programme. The two facilities why the new ETEC and Centre for place the north at the heart of research Energy and the Environment are so and skills development in marine important to Caithness and to the wider energy and the First Minister felt that Scottish economy.” 6 “Jobs and How to Get Them” full-day event Wick Harbour 7 P6-P7.pdf 1 07/10/2013 10:18:00

CY First Minister Alex Salmond CMY officially opened the ETEC

Area economy in 2020? BY 2020 the port of Wick will be a CNSRP Key Players thriving port of national strategic importance, servicing the needs of CNSRP Executive Board Delivery Group many industries. From the traditional THE MEMBERSHIP of the Executive THE GROUP brings together managers It is chaired by the CNSRP Programme fishing and general cargoes the port Board reflects the sense of priority given from Highland Council, Highlands & Manager and focuses on ensuring will have grown to deliver by the main partner bodies to the Islands Enterprise, Skills development progress with individual actions in the cost-effective solutions for North Sea development of the area’s economy. Scotland, the Nuclear Decommissioning Delivery Plan - particularly the high Oil and Gas (including offshore Uniquely, the region’s key public sector Authority, Dounreay Site Restoration Ltd. priority actions. decommissioning) and the high value decision-makers come together on a and Caithness Chamber of Commerce. employee-hungry Offshore Marine quarterly basis to discuss the strategic Renewables. These business delivery of the CNSRP Delivery Plan, streams along with the established offering the local community direct input operation and maintenance work for from (and access to) the highest level of the Beatrice Offshore Wind and professional engagement. Under the Moray Offshore Renewable projects independent Chairmanship of Sir will see Wick return to the bustle Anthony Cleaver, the Board is designed generated by the traditional herring Sir Anthony Cleaver (CNSRP) Alex Paterson (HIE) to offer the economic transition process Nigel Lowe (NDA) and white fish heydays of yesteryear. its best chance of success. It also These new industries will once again provides direction to the Partnership’s provide economic growth and Programme Manager and to area opportunity to Caithness and North managers in the partner bodies who sit Sutherland, creating huge on the Partnership’s Delivery Group. opportunities to both shore based C and maritime businesses alike. In Steve Barron is the new Chief Executive M turn, good highly qualified and locally for Highland Council, taking over from trained people with a ‘can do’ attitude Y Alistair Dodds. Steve, who was Eann Sinclair (Chair) Anna MacConnell (NDA) will provide the vital resource by previously the Council’s Director of CM which this industry will succeed, Housing & Property and Depute Chief MY Executive, will now become a member of providing around 1,000 jobs in the longer term! CY the CNSRP Executive Board. Willie Watt, Chairman, CMY Not pictured – Karen Jackson, Scottish Government Wick Harbour Authority

K and Alistair Dodds, former Chief Executive, Anthony Standing (Skills Roger Hardy (Babcock Steve Barron Highland Council Development Scotland) Dounreay Partnership) (Highland Council) THE INNER Sound tidal array project Advisory Board membership 2012-13 is currently on a trajectory to install Advisory Board its demonstration array by early Name Organisation 2015. The demonstration array is the THE ADVISORY Board brings together Cllr Drew Hendry Highland Council first stepping stone for the project to politicians, business groups, community Cllr Thomas Prag Highland Council Cllr George Farlow Highland Council prove concept, technically and representatives and trades union Cllr Roger Saxon Highland Council commercially as well as develop a officials, as well as other bodies such as Cllr Gail Ross Highland Council better understanding of the North Highland College, The Crown Stuart Black Highland Council environmental impact the project may Estate, Job Centre Plus, SNH, HIE, Rob Gibson MSP Ken Nicol (DSRL) Roy Kirk (HIE) Alistair Ferrier (SDS) John Thurso MP have on the rich diversity of wildlife in NDA, DSRL and Babcock under the Frances Gunn CVS North the Inner Sound vicinity. chairmanship of Councillor Drew Hendry, John Green Caithness Voluntary Group Should this project be successful, it is leader of the Highland Council. The William Manson Association of Caithness Community Councils the desire of the MeyGen project to board members comment on progress Trudy Morris Caithness Chamber of Commerce Bill Baxter Caithness Chamber of Commerce expand towards its first phase with the CNSRP delivery plan, highlight Steven Sutherland Caithness Chamber of Commerce capacity of 86MW (57 turbines). It is areas of concern and suggest Derrick Milnes Thurso & Wick Trades Council hoped that this will be constructed amendments or additions. These William Sutherland Highlands & Islands Airports Ltd. and operating by 2020 and by this David Flear Dounreay Stakeholder Group discussions may enable debate on the time, the project will be a true Seonag Campbell Skills Development Scotland overall direction of the Plan (to take Gordon Jenkins North Highland College commercial proposition providing a account of changing economic John Robertson The Crown Estate platform from which Caithness and circumstances) or help agree priorities Lesley Cranna Scottish Natural Heritage the wider region can benefit in terms Willie Watt Wick Harbour Authority of developing supply chain and skills. within the Plan. Sandy Mackie Scrabster Harbour Trust Susan Johnston JobCentre Plus Dan Pearson, CEO, Roy Kirk HIE Meygen Ltd June Love HIE Anna MacConnell NDA Trudy Morris Alastair MacDonald David Sutherland Ken Nicol DSRL (Caithness Chamber (Babcock Dounreay (Highland Council) 8 Alastair Macdonald Babcock of Commerce) Partnership) 9 P8-P9.pdf 1 04/10/2013 13:12:49

The Did you know?

O 60% of the world’s underwater cameras are built in Wick by Kongsberg Maritime, and have been used in the deepest parts of the earth’s oceans.

O Subsea 7 at Wester assembles and moves some of the world’s Right largest movable objects (pipeline bundles for the oil & gas industry).

O KP Technology in Wick manufactures and exports devices used for sensitive measurements in nanotechnology fields.

CMY K Time Right