The Importance for the Fish Processing and Merchanting Sector of Landinsg of Fish from the Waters of Pentland Firth and Orkney to the Local and Scottish Economies

The objective of this study is to assist ongoing work at Marine Scotland. The specific objective is to estimate the contribution of the fish and shellfish processing industry and the fish merchants in providing returns on landings from the waters of the P


4. The Importance of Fish Processing and Marketing of Landings of Fish and Shellfish from the Pentland Firth and Orkney Waters to the Scottish Economy

The multipliers estimated in this study for the impact of fish and shellfish processors and merchants in North Highland and Orkney on the Scottish economy as a whole are set out in Table 7 and are given for comparison against the multipliers estimated from the model for other businesses in Scotland.

Table 7: Multipliers for the Activity of Pentland Firth and Orkney Waters Fish and Shellfish Processing Industry and Merchants on the Scottish Economy, 2011.

Type I Processors and
Merchants:
Orkney Landings
of
Non-Crustaceans
Processors and
Merchants:
Orkney Landings
of
Crustaceans
Processors and
Merchants:
North Highland Landings
of
Non-Crustaceans
Processors and
Merchants:
North Highland Landings
of
Crustaceans
Other Businesses
Output 1.98 1.95 2.00 1.97 1.34
Income 2.57 2.33 3.17 2.35 1.34
Employment 1.64 1.52 1.90 1.55 1.34
Type II
Output 3.33 3.37 3.19 3.40 2.49
Income 4.79 4.35 5.91 4.37 2.49
Employment 2.48 2.28 2.95 2.32 2.49

The output, income and employment (in full-time equivalent jobs) in Scotland dependent on the presence of the fish and shellfish processors and merchants in North Highland and Orkney are set out in detail in Tables 8, 9 and 10 below.

Again, the Type II multipliers are higher than those for Type I because they include the induced effects on the broader economy as well as the direct and indirect effects.

The results suggest that £12m of direct and indirect effects rests on the initial £6m output of the fish and shellfish processors and merchants. When induced effects are added the dependency rises to £20m.

They also indicate that £3.4m of direct and indirect effects in the Scottish economy rests on the initial £1.4m income of the sector rising to £6.3m when induced effects are included.

Table 8: Dependency of the Scottish Economy on the Pentland Firth and Orkney Waters Fish and Shellfish Processing Industry and Merchants for Output

Processors and
Merchants:
Orkney Landings
of
Non-Crustaceans
Processors and
Merchants:
Orkney Landings
of
Crustaceans
Processors and
Merchants:
North Highland Landings
of
Non-Crustaceans
Processors and
Merchants:
North Highland Landings
of
Crustaceans
Direct and Indirect Effects,
Type I, (£m)
£0.44 £7.98 £1.01 £2.24
Direct, Indirect and Induced Effects,
Type II, (£m)
£0.74 £13.81 £1.61 £3.87

Table 9: Dependency of the Scottish Economy on the Pentland Firth and Orkney Waters Fish and Shellfish Processing Industry and Merchants for Income

Processors and
Merchants:
Orkney Landings
of
Non-Crustaceans
Processors and
Merchants:
Orkney Landings
of
Crustaceans
Processors and
Merchants:
North Highland Landings
of
Non-Crustaceans
Processors and
Merchants:
North Highland Landings
of
Crustaceans
Direct and Indirect Effects,
Type I, (£m)
£0.12 £2.34 £0.24 £0.65
Direct, Indirect and Induced Effects,
Type II, (£m)
£0.22 £4.36 £0.45 £1.22

The difficulty in determining precisely the number of people employed in the sector identified in Section 2 for the local North Highland and Orkney Consolidated Transactions Matrices applies also to those for Scotland, and the reasons - the proportion of part-time employees and the contribution of unpaid family members - are similar.

173 [4] jobs in the Scottish economy are estimated to depend directly and indirectly on the 112 people estimated to be working in the sector in North Highland and Orkney and when induced effects are added the figure rises to 261.

Table 10: Dependency of the Scottish Economy on the Pentland Firth and Orkney Waters Fish and Shellfish Processing Industry and Merchants for Employment

Processors and
Merchants:
Orkney Landings
of
Non-Crustaceans
Processors and
Merchants:
Orkney Landings
of
Crustaceans
Processors and
Merchants:
North Highland Landings
of
Non-Crustaceans
Processors and
Merchants:
North Highland Landings
of
Crustaceans
Direct and Indirect Effects,
Type I, FTE Jobs
6 121 11 34
Direct, Indirect and Induced Effects,
Type II, FTE Jobs
9 183 18 51

Appendix to Section 4

Closed Input-Output Table Derivatives for the Scottish Economy to produce Type I Multipliers

Table A2.1: Technology Matrix for Leontief Demand-Driven Type I Multipliers for the Scottish Economy, 2011 (Closed)

% 2011 Purchaser
Processors and Merchants: Orkney Landings of Non-Crustaceans Processors and Merchants: Orkney Landings of Crustaceans Processors and Merchants: North Highland Landings of Non-Crustaceans Processors and Merchants: North Highland Landings of Crustaceans Other Businesses
Producer Processors and Merchants: Orkney Landings of Non-Crustaceans 0.075 0.000 0.000 0.000 0.000
Processors and Merchants: Orkney Landings of Crustaceans 0.000 0.020 0.000 0.000 0.000
Processors and Merchants: North Highland Landings of Non-Crustaceans 0.000 0.000 0.100 0.000 0.000
Processors and Merchants: North Highland Landings of Crustaceans 0.000 0.000 0.000 0.050 0.000
Other Businesses 0.625 0.680 0.600 0.650 0.252
Total Primary Inputs 0.700 0.700 0.700 0.700 0.252
Households 0.210 0.245 0.150 0.245 0.347
Indirect Taxes & Profits 0.090 0.055 0.150 0.055 0.401
Total Inputs 1.000 1.000 1.000 1.000 1.000

Note: Some columns and rows may not exactly add-up owing to rounding.

Closed Input-Output Table Derivatives for the Scottish Economy to produce Type II Multipliers

Table A2.2: Technology Matrix for Leontief Demand-Driven Type II Multipliers for the Scottish Economy, 2011, (Closed)

% 2011 Purchaser
Processors and Merchants: Orkney Landings of Non-Crustaceans Processors and Merchants: Orkney Landings of Crustaceans Processors and Merchants: North Highland Landings of Non-Crustaceans Processors and Merchants: North Highland Landings of Crustaceans Other Businesses Households
Producer Processors and Merchants: Orkney Landings of Non-Crustaceans 0.075 0.000 0.000 0.000 0.000 0.000
Processors and Merchants: Orkney Landings of Crustaceans 0.000 0.020 0.000 0.000 0.000 0.000
Processors and Merchants: North Highland Landings of Non-Crustaceans 0.000 0.000 0.100 0.000 0.000 0.000
Processors and Merchants: North Highland Landings of Crustaceans 0.000 0.000 0.000 0.050 0.000 0.000
Other Businesses 0.625 0.680 0.600 0.650 0.252 1.000
Households 0.210 0.245 0.150 0.245 0.347 0.000
Total Primary Inputs 0.910 0.945 0.850 0.945 0.599 1.000
Taxes, Subsidies, Imports and Profit 0.090 0.055 0.150 0.055 0.401 0.000
Total Inputs 1.000 1.000 1.000 1.000 1.000 1.000

Note: Some columns and rows may not exactly add-up owing to rounding

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