Socio-economic Baseline Review for Offshore Renewables in Scottish Waters Volume 1: Main Text

6. North Region

6.1 Introduction

The regional overview for each marine use present within the North SORER is detailed within this section. These sub-sections, which are arranged in alpaetical order of activity, provide information in a uniformed manner under the following headings:

• Regional Activity;
• Regional Economic Value and Employment; and
• Future Trends.

The activities present within the North Region are given in Table 143 below.

Table 143. Activities present within the North SORER

Activity	Present in North SORER		Regional Trends Available		Future Trends Available
	Yes	No	Yes	No	Yes	No
Aquaculture	√			√		√
Aviation	√			√		√
Carbon Capture and Storage	√			√		√
Coast Protection and Flood Defence		√
Commercial Fisheries	√			√		√
Energy Generation	√			√	√
Military Interests	√			√		√
Oil and Gas	√		√		√
Ports and Harbours	√		√		√
Power Interconnectors	√		√		√
Recreational Boating	√			√		√
Shipping	√		√		√
Social and Community	√		√		√
Telecom Cables	√			√		√
Tourism	√			√		√
Waste Disposal	√		√		√
Water Sports	√			√		√

6.2 Aquaculture

6.2.1 Regional Activity

Marine aquaculture sites within the North Region are shown in Figure 119, where there are 120 finfish and 83 shellfish sites with a number being located along the coastline of the Orkney Islands and in particular the Shetland Islands.

6.2.2 Regional Economic Value and Employment

Regional employment figures for activities relating to marine aquaculture in the North are listed below in Table 144. Total employment figures for this sector grew by approximately 30% between 2009 and 2010.

Table 144. North employment figures for activities relating to marine aquaculture

SIC, 2007	Full-time Employees		Part-time Employees
	2009	2010	2009	2009
Marine aquaculture ( SIC 03210)	248	299	20	83

(Source: ONS, 2011)

6.2.3 Future Trends

No regional detail on future trends were available, please refer to Section 2.2.3 for national projections

6.3 Aviation

6.3.1 Regional Activity

Airports in this region include the 'minor' airports of Kirkwall in Orkney and Sumburgh, Lerwick and Scatsta in the Shetland Islands (Figure 3). The number of ATMs, passengers (terminal and transit) and freight movements through each airport are shown in 145.

Table 145. Summary of activity at Scottish airports in the North Region

Airports	ATMs	Terminal Passengers	Transit Passengers	Freight (tonnes)
Kirkwall	13,849	138,383	11,960	89
Sumburgh	8,435	139,146	1,568	53
Lerwick	2,011	4,709	0	0
Scatsta	12,704	269,754	347	752

ATM = Air Transport Movements. All totals include scheduled and chartered flights.

(Source: CAA, 2011)

6.3.2 Regional Economic Value and Employment

The value of this industry to the economy of the region was unavailable, as were figures for employment..

6.3.3 Future Trends

There is no specific information on future trends for this region. For national projections refer to Section 2.3.3.

6.4 Carbon Capture and Storage

6.4.1 Regional Activity

The hydrocarbon fields and saline aquifers identified by SCCS (2009) as having the potential to store CO ₂ in the North SORER region are shown below in Tables 146 and 147 respectively. The location of these potential CO ₂ storage sites are shown in Figure 120. CO ₂ storage in hydrocarbon fields cannot begin until hydrocarbon production ceases and the 'close of production' year for the hydrocarbon fields are shown in Table 164, based on past production data ( SCSS, 2009). In Table 200, the range in storage capacity of the saline aquifers relates to the percentage of the total pore volume available for CO ₂ storage. The significance of the storage capacity of the potential sites in this region, combined with potential CCS sites in the North East Region, is discussed in the CCS National overview.

Table 146. Hydrocarbon fields assessed as having potential for CO ₂ storage alone in the North Region

Field Name	Close of Hydrocarbon Production (year)	Average Water Depth of Field	Estimated CO 2 Storage ( Mt)
Brae North GC	2015 +	99 +	52
Brae East GC	2020 =	116 =	111
Bruce GC	2020 =	122 =	197
Frigg ( UK) Gas Field	2008 +	112 =	171
Brent Oil Field	2015 +	140 =	456
Total estimated storage capacity			987

GC = Gas Condensate field; + parameter is technically or economically feasible; = parameter is technically or economically borderline.

(Source, SCCS, 2009)

Table 147. Saline aquifers that meet both geotechnical and storage capacity requirements in the North Region

Saline Aquifer	Area ( km 2)	CO 2 Storage Capacity (0.2% Storage Efficiency) ( Mt)	CO 2 Storage Capacity (2% Storage Efficiency) ( Mt)
Grid +	17147	785	7847
Balder +	6251	347	3465
Flugga +	1926	61	611
Frigg +	1712	58	575
Helmdal =	11065	618	6177
Total storage capacity ( Mt)		1312	18,675

+ Meets best p.a.tise geotechnical requirements (for depth, permeability and porosity); = meets minimum geotechnical requirements

(Source: SCCS, 2009)

6.4.2 Regional Economic Value and Employment

It is not currently possible to attribute economic values to sea areas for future CO ₂ storage (Baxter et al, 2011). See Section 2.4.3 for estimates of the potential value of, and employment within, the emerging CCS sector at a national level.

6.4.3 Future Trends

Further hydrocarbon fields or saline aquifers suitable for CO ₂ storage may yet be discovered ( SCCS, 2009). There is no specific information on future trends for this region. For national projections refer to Section 2.4.3.

6.5 Commercial Fisheries

6.5.1 Regional Activity

6.5.1.1 Fish catching activities

Landings caught by UK vessels within the North SORER had an average annual value of £162 million (42.4% of the Scottish total) and an average annual live weight of 209,200 tonnes (48.8% of the Scottish total) for the ten year period from 2001 to 2010.

Figures 121 to 124 show the annual average value (2001 to 2010) of the total landings taken from within this region, broken down for each ICES rectangle by species group, selected species, gear type and vessel length.

Figures 125 to 127 show the value of all landings caught in the inshore and offshore waters of the West SORER waters by selected species, gear type and vessel length categories from 2001 to 2010.

The type of species landings from within the North SORER differ significantly between inshore / offshore waters and between different locations within this region. Inshore, and particularly around the islands, shellfish account for the majority of the value and volume of species landed whereas offshore, the value and volume of landings are mainly pelagic and demersal species. Inshore, landings of scallops and other shellfish (excluding Nephrops) accounted for 57% of the total catch value in 2010 whilst demersal species made up 26% and pelagic species made up 16% of the total catch value. Offshore, landings of mackerel accounted for 36% of the total catch value in 2010, 27% were monkfish haddock and cod (combined), 11% were other whitefish, and herring and Nephrops each accounted for 9% of the total catch value.

In 2010, 41% of the value of landings from inshore waters were taken by vessels 10m and under in length, and 46% were landed by vessels 15m and over; whereas offshore, 94% were landed by vessels 15m and over.

For inshore waters, 34% of the total catch value was taken by pots, 26% by demersal trawl, 18% by dredges and 15% by pelagic trawl; whereas for offshore waters, 45% was taken by pelagic trawls and 37% by demersal trawls.

Figures 128 and 129 show all the overflight (surveillance) sightings by vessel type and nationality in the region from 2006 to 2010. 52% of the national fishing effort occurs within the North Region with British vessels making up 78% of the sightings. Norwegian, Danish and French vessels account for a further 15%. 80% of the vessels fishing in the area are demersal trawlers with 7% being pelagic trawlers. The fishing is evenly distributed out the deep water where limited sightings have been recorded.

The main administrative fishing ports in this region are Scrabster, Kirkwall (Orkney) and Lerwick (Shetland) and there are also 28 smaller ports throughout the region. All the ports are shown in Figure 130.

6.5.1.2 Fish processing activities

Shetland has the largest pelagic processing factory of its kind in Europe, Shetland Catch, which is based in Lerwick. Shetland also has a whitefish and wild shellfish processing factory in Scalloway among several other smaller processing units serving the local economy. The majority of Shetland whitefish is traded on to mainland businesses.

Orkney has one of Europe's largest and most sophisticated crab processing factories, based in Stromness. It is operated by a cooperative, the Orkney Fishermen's Society, with over 75% of local crab fishermen belonging to it and employs 70 people onshore. The new factory, which was built in the mid 1990s, initially handled 200 tonnes of crab a year, but it has been extended many times since then and capacity has increased ten-fold (Reid, 2010). One of the reasons for its success is that it has largely been funded by the fishermen themselves and shareholders in the wider community who support them.

6.5.1.3 Wild salmon and sea trout

There is one fixed engine, located on the North coast near Thurso, and no net and coble netting sites in the North SORER (see Figure 130).

The main rod and line fishing rivers in this region are the Thurso (salmon) Halladale (salmon), Naver (salmon and sea trout), Borgie (salmon), Dionard (salmon and sea trout), Laxford (salmon). Stocks of sea rout have declined dramatically in the Laxford in the last twenty years (Gray J., 2009).

6.5.2 Regional Economic Value and Employment

6.5.2.1 Fish catching activities

The North SORER is covered by the administrative ports of Scrabster, Kirkwall (Orkney) and Lerwick (Shetland). There are 1025 fishermen employed on Scottish based vessels in these districts (857 of these are based in Orkney and Shetland); 676 of these are employed full-time and 349 are part-time. There are 466 active vessels registered in these districts, 355 of which are 10m and under in length.

Shetland is heavily dependent on the fishing industry and has 6% of the total employment in the catching sector in Scotland. The islands of Shetland, Orkney and the Western Isles combined account for 22% of the total catching employment in Scotland. Direct employment in the fishing sector has a whole accounts for between 5% and 10% in Shetland (Baxter et al., 2011)

In the coastal Travel-to-Work area of Shetland, fisheries dependent employment (which includes direct employment in the fish catching, farming and processing sectors and indirect employment and induced impacts as a result of the demand for goods and services required by the fisheries sector) is estimated to account around 2 and 10% of all local jobs (Baxter et al., 2011).

6.5.2.2 Fish processing activities

For the North SORER, the largest concentration of employment in this sector is in Shetland. Rationalisation and downsizing of the processing industry has taken plans in Shetland. Today only one major firm survives, together with several smaller businesses supplying the local market.

The ONS (2011) and Employment Survey statistics for processing activities in the North SORER are shown in Table 148.

Table 148. Employment in fish and shellfish processing and retail in the North SORER

SIC, 2007	Full-time Employment		Part-time Employment		Total Employment
	2009	2010	2009	2010	2009	2010
Processing and preserving of fish, crustaceans and molluscs ( SIC 10200)	447	482	64	140	512	622

(Source: ONS, 2011)

6.5.2.3 Wild salmon and sea trout

There is no specific information on economic value and employment for this region. For a national overview refer to Section 2.6.3.

6.5.3 Future Trends

There is no specific information on future trends for this region. For national projections refer to Section 2.6.3.

6.6 Energy Generation

6.6.1 Regional Activity

There is no specific information on activity for this region. The North does not host any major power stations, and it is not possible to identify the power stations from which the region obtains its electricity ^[50] . Hunterston B nuclear power station is located within this region, south of Largs in Ayrshire. The power station started generating in 1976, and is expected to be decommissioned in 2016. It has a net electrical output of 890MW.

6.6.2 Regional Economic Value and Employment

Information on regional economic value for energy generation is not available; data on electricity generation and supply are very limited due to security issues.

Direct employment in the electricity sector in the North Region can be estimated through looking at statistics from the ONS (2011) and Employment Survey. Figures for 2009 and 2010 for full and part time work under several relevant codes are given in Table 149. Although the number of jobs directly supported by the electricity sector is reasonably low, it is assumed that there will be other jobs in the wider energy generation sector, for example, jobs in research and associated activities.

Table 149. Employment in the electricity sector in North by SIC Code

SIC Code, 2007	Full-time		Part-time		Totals
	2009	2010	2009	2010	2009	2010
Production of electricity (3511)	48	202	3	12	51	211
Transmission of electricity (3512)	0	0	0	0	0	0
Distribution of electricity (3513)	48	51	7	8	55	59
Trade of electricity (3514)	0	0	0	0	0	0
Construction of utility projects for electricity and telecommunications (4222)	0	4	0	0	0	4
Electrical installation (4321)	117	108	6	4	124	116
Totals (Note that totals may not sum exactly due to rounding)	213	365	16	24	230	390

(Source: ONS, 2011)

6.6.3 Future Trends

Although the data indicate that there are currently no jobs in the transmission of electricity sector, both tidal and wave devices are being tested within the North Region at the EMEC nursery sites (see Figure 131). The area also includes the Pentland Firth and Orkney Waters ( PFOW) Strategic Area. The advent of offshore renewables could therefore lead to employment opportunities, as well as an increase in the number of jobs dependent on the wider energy generation sector, for example, engineering activities and related technical consultancy, and service activities incidental to water transport. Once renewable devices are established, the number of jobs relating to the production of electricity will be boosted.

6.7 Military Interests

6.7.1 Regional Activity

The coastal military locations which occur within this region are shown in Figure 132. Military interests in this region include:

• Cape Wrath official gunnery and bombing range, mainly used for live gunnery p.a.tise by the Royal Navy and allied navies and for live bombing p.a.tise by the RAF and the Fleet Air Arm ( FAA); and
• A 'firing danger' and 'other' exercise area to the East of Orkney (which extends into the North East SORER).

6.7.2 Regional Economic Value and Employment

The MOD Quarterly Manning Report (Defence Personnel by location) issued in August 2011, provides the number of MOD personnel (civilian and military) employed in each LA area at 1 July 2011 ( MOD, 2011a). Four of these LAs fall entirely or partially within the North Region and the number of MOD personnel which are employed within each of these LA areas is shown in Table 150. However, as the LA areas do not align with the SORER boundaries, the values should only be taken as indicative values for comparison between areas.

Table 150. MOD personnel by local authority areas which lie within the North Region

Local Authority ( LA) Area	SORER*	MOD total	Civilian	Military
Orkney Islands	N	0	0	0
Shetland Islands	N	10	0	10
Highland	NE, NW, N	680	600	80

* Note LAs may occur within more than one SORER. Where this is the case, the SORER containing the largest proportion of the LA (visually assessed) is listed first, and subsequent SORERs contain decreasing proportions of the LA; '&' indicates that the LA ap p.a.s to occupy roughly equal proportions of more than one SORERs.

(Source: MOD, 2011a)

6.7.3 Future Trends

There is no specific information on future trends for this region. For national projections refer to Section 2.8.3.

6.8 Oil and Gas

6.8.1 Regional Activity

In this region, Oil and Gas activity is concentrated in offshore waters to the East and West of the Shetlands and to the East of the Orkney Islands (i.e. along the Eastern and Western borders of the SORER). Oil and Gas pipelines connect these areas of high activity with the Shetlands, Orkney and Aberdeen (in the North East SORER). There are 65 producing hydrocarbon fields in this region (51 producing oil; 4 gas and 10 condensate) ( DECC website ^[51] ), see Figure 133.

Information on the annual production of crude oil from hydrocarbon fields in the UKCS are provided by DECC ^[52] . Based on this data, the quantities of crude oil produced from hydrocarbon fields located within the North SORER between 2008-2010 are shown in Table 151 indicative estimates of the total production of crude oil from hydrocarbon fields within this region was 18 million tonnes in 2008 and 2009 and 17 million tonnes in 2010 Gas production statistics are not allocated to hydrocarbon fields and hence it was not possible to estimate gas production from fields within this region.

Table 151. Crude oil production from hydrocarbon fields located within the North Region

Field Name	Crude Oil Production 2008 (tonnes)	Crude Oil Production 2009 (tonnes)	Crude Oil Production 2010 (tonnes)
Alwyn North	260,204	201,521	171,551
Beinn	15,694	15,477	11,337
Beryl	581,726	411,490	435,981
Birch	68,011	50,835	41,229
Boa	52,542	123,900	151,644
Brae Central	193,352	144,426	129,864
Brae East	85,423	113,630	83,583
Brae North	44,076	49,386	54,997
Brae South	242,492	172,180	105,468
Braemar	165,904	121,373	99,823
Brent	327,196	305,764	302,712
Broom	556,672	399,682	262,599
Bruce	284,030	193,368	204,448
Buckland	64,481	29,439	67,583
Clair	2,384,936	2,658,105	2,031,138
Cormorant North	443,070	416,990	544,211
Cormorant South	227,983	211,286	168,498
Deveron	10,261	15,193	19,104
Don South West		156,030	672,470
Dunbar	314,995	306,837	334,649
Dunlin	64,555	86,880	196,383
Dunlin South West	39,155	20,283	21,723
Eider	74,371	90,294	70,540
Ellon	12,113	38,336	71,191
Enoch	271,879	251,136	163,388
Foinaven	2,026,235	2,261,638	1,703,503
Grant	44488	57,247	45,520
Gryphon	471680	458,042	787,568
Harding	907043	894,182	914,594
Heather {And Ext}	59817	89,236	76,901
Hudson	262842	254,384	229,005
Jura	468,025	176,720	180,066
Keith	93,327	35,485	50,288
Kestrel	57,980	56,233	45,893
Kingfisher	54,601	139,903	159,407
Larch	212,740	24,928	16,058
Loyal	74,213	55,886	32,907
Lyell	181,872	75,071	65,205
Maclure		385,482	264,638
Magnus	372,143	1,305,929	813,647
South Magnus		92,690	39,442
Merlin	212,556	22,384	25,384
Murchison	909,337	203,064	136,104
Ness	1,294,866	23,767	67,505
Nevis	0	582,291	546,341
Ninian	86,137	803,324	723,768
Osprey	192,056	191,709	156,782
Otter	145,780	30,193	29,553
Pelican	366,910	120,273	181,554
Penguin East	111,993	173,983	175,228
Penguin West	210,405	56,768	72,423
Playfair	379,048	9,705	10,803
Rhum	0	30,773	34,161
Schiehallion	174,966	815,792	1,045,973
Skene		47,530	31,610
Statfjord	421,802	296,930	259,157
Strathspey	18,079	157,376	92,892
Sycamore		30,289	19,291
Tern	195,352	446,781	422,912
Thistle	229,250	171,063	216,422
West Brae	213,703	520,954	452,766
West Don	353,945	257,686	305,459
Total	18,064,660	17,939,534	16,846,839

(Source: Based on DECC production figures, 2011)

6.8.2 Regional Economic Value and Employment

In 2008, the average oil price was £379.80/tonne ^[53] . Using this price, an indicative economic value of the crude oil produced from hydrocarbon fields within this SORER in 2008 was calculated as about £6.8 billion. Average oil prices for 2009 and 2010 were not available at the time of writing to estimate indicative values in these years.

An indication of the level of employment provided by the Oil and Gas UK (2011) as being between 1 - 2,000 within Orkney and Shetland. It has not been possible to obtain further employment figures that relate directly to this activity.

6.8.3 Future Trends

There are 6 hydrocarbon fields under development in this region: Barnacle; Cheviot and Devenick (oil production) and Islay; Laggan and Tormore (condensate production) ( DECC website ^[54] ). A significant area with unexploited gas reserves lies to the West of Shetland. A new gas export pipeline from this area is currently being built to support the output from the Laggan and Tormore fields, which are scheduled to start production in 2014 (Baxter et al, 2011). For national projections refer to Section 2.9.3.

6.9 Ports and Harbours

6.9.1 Regional Activity

The Oil and Gas industry is of significant economic importance to Scotland and due to their location close to North Sea Oil and Gas fields, regional ports provide essential support activities to this industry, see Figure 134. Types of activities include support for exploration and production activities, plus cargo handling, storage and transfer activities for Oil and Gas products.

Oil and Gas related activities have led to the growth of developments at a number of ports, this includes the strategically well plansd ports of Sullom Voe which moved a p.a. of 38 million tonnes of cargo in 2000, which reduced to 11 million tonnes of cargo in 2009. Lerwick (Shetland Isles) is well plansd to support the offshore industry and tranships between 486 and 979,000 tonnes of cargo per year. Lerwick is also a major fishing port and provided in 2009 by value £51.0 million to the industry, (Oxford Economics, 2011). The deep water anchorage and port facilities at Flotta within Scarpa Flow (Orkney Archipelago) also provide important services to the offshore Oil and Gas industry with a p.a. of cargo handled in 2000 of 22.7 million tonnes, which reduced to 3.2 million tonnes in 2009, see Table 152.

Table 152. North Region major port tonnages

Port		1998	1999	2000	2001	2002	2003
Orkney	Import	2,859,784	3,683,452	7,182,461	5,755,087	6,114,835	4,471,000
	Export	13,296,702	13,314,934	15,615,238	12,651,652	12,697,397	9,951,000
	Total	16,156,486	16,998,386	22,797,699	18,406,739	18,812,232	14,422,000
Sullom Voe	Import	1,167,289	5,146,832	6,151,175	5,780,798	6,156,305	6,000,000
	Export	29,941,706	32,533,476	32,052,890	25,384,853	23,219,401	20,360,000
	Total	31,108,996	37,680,308	38,204,065	31,165,651	29,375,706	26,360,000
Lerwick	Import	362,691	297,265	309,940	553,386	342,997	312,000
	Export	196,125	188,335	210,701	425,498	309,954	304,000
	Total	558,816	485,600	520,641	978,884	652,951	616,000
		2004	2005	2006	2007	2008	2009
Orkney	Import	6,656,000	5,344,000	4,158,000	3,655,000	776,000	168,844
	Export	11,278,000	9,190,000	7,091,000	6,937,000	4,014,000	3,072,650
	Total	17,934,000	14,534,000	11,249,000	10,592,000	4,789,000	3,241,494
Sullom Voe	Import	5,382,000	3,937,000	3,705,000	2,747,000	2,379,000	839,985
	Export	18,557,000	16,603,000	15,743,000	13,826,000	12,160,000	10,376,610
	Total	23,939,000	20,541,000	19,447,000	16,573,000	14,539,000	11,216,595
Lerwick	Import	299,000	342,000	311,000	352,000	372,000	309,329
	Export	291,000	280,000	230,000	263,000	287,000	250,176
	Total	590,000	622,000	541,000	615,000	658,000	559,505

Values shown are annualized import and export tonnages

(Source: DfT, 2010)

In addition to the three larges ports in this region, a further 42 ports and harbours are located in four distinct areas; mainland Scotland, the Orkney Island, Fair Isle and the Shetland Islands. Many of these ports provide important facilities, quays, jetties and shelter for offshore vessels moving between port locations and the offshore oil, gas and renewable industry in Scottish waters. Table 153 details the ports within this region as shown in Figure 135.

Table 153. North Regional ports

Port	Operator	Type
Aith		Local Authority
Balfour		Local Authority
Baltasound		Local Authority
Birsay	Barony Hotel - Birsay	Private
Brough		Private
Burray		Local Authority
Busta Voe		Local authority
Castlehill		Private
Collafirth		Local Authority
Cullivoe		Local Authority
Deerness	Deerness Small Boat Owners Association	Private
Eday		Local Authority
Eshaness		unknown
Fair Isle		Local Authority
Hamnavoe		Local Authority
Holm		Local Authority
Hoy		Local Authority
John O'Groats		Local Authority
Kirkwall	Orkney Islands	Local Authority
Lerwick	Lerwick Port Authority	Trust
Levenwick		unknown
Mid Yell		Local Authority
North Roe	Shetland Islands Council	Local Authority
Out Skerries	Shetland Islands Council	Local Authority
Sanday	Orkney Islands Council	Local Authority
Sandwick	Also known as Broonies Taing Pier	Brownies Taing Pier Trust
Scalloway	Shetland Islands Council	Local Authority
Scapa Flow	Orkney Islands	Local Authority
Scarfskerry		Local Authority
Scrabster	Scrabster Harbour Trust	Trust
Skeld		Local Authority
South Ronaldsay		Local Authority
Stroma		Local Authority
Stromness	Orkney Islands	Local Authority
Stronsay		Local Authority
Sullom Voe	Sullom Voe Harbour Authority	Local Authority
Symbister		Local Authority
Thurso		Local Authority
Tingwall		Local Authority
Vidlin		Local Authority
Voe		Local Authority
Walls		Local Authority
West Burrafirth		Local Authority
Westray		Local Authority
Yell and Fetlar		Local Authority

(Source: Marine Scotland, 2011a)

6.9.2 Regional Economic Value and Employment

Ports within this region contribute to the local and the regional economy as employers, and through the provision of essential services and facilities as lifeline services for ferries, and berths for fishing vessels. Other than the cargo tonnages detailed in Table 161 for Orkney, Sullom Voe and Lerwick. Other ports providing input to the local economy include Scrabster Harbour which has an annual reported economic output of £39m, supporting 339 full time jobs and contributing a GVA impact of £14.6m to Caithness. Scrabster Harbour handles a gross tonnage in 2007 of 9.85 Mt. The port also has a significant trade in shellfish and demersal fish (see Section 6.6). The port also accommodates lifeline ferry service links to the Orkney Isles with 149,000 passenger and 46,000 vehicles. The port hosts international ferry services and cruise liner calls with 6,294 passengers and 2,000 vehicles handled in 2007, returning an estimated £4m for the Highland economy (Scrabster Harbour Trust, 2008).

Employment in this region is dominated by employees in the service industry supporting water transportation. However, it should be noted that a significant number of people may be resident in other parts of Scotland, the UK or near Continent and work in the offshore gas, oil and renewables industry. Therefore their contribution to employment will not be noted in the data shown in Table 154.

Table 154. North Regional ports and harbour employment

SIC, 2007	Full-time Employees		Part-time Employees
	2009	2010	2009	2010
Construction of water projects ( SIC 42910)	0	13	0	92
Service activities incidental to water transportation ( SIC 52220)	205	159	54	36
Building of ships and floating structures ( SIC 30110)	93	52	1	1
Repair and maintenance of ships and boats ( SIC 33150)	64	60	3	2
Totals	362	284	58	131

(Source: ONS, 2011)

6.9.3 Future Trends

Orkney Ports and Harbours provide a base for the offshore Oil and Gas industry. UK Oil and Gas production is projected to decline significantly over time as exploited fields reach maturity ( UKMMAS, 2010). Scrabster is strategically plansd to support the renewable sector and in September 2007 the Scrabster Harbour Trust announced a £20m blueprint for infrastructure developments to service the needs of the offshore oil, gas and renewable sectors. The works aim to enhance Scrabster's ability to accommodate demand from oil supply traffic and the marine logistics required to support developments in the Atlantic and the Pentland Firth and Orkney Water ( PFOW) area. The first stage of the development commenced in 2010, and will provide an additional 8,500m² of pier side laydown area and enhanced heavy lifting facilities. The quayside infrastructure development will be complemented by the strategic acquisition of 30 acres of land zoned for industrial use close to the port (Scrabster Harbour Trust, 2011).

The National Renewables Infrastructure Plan ( NRIP) Phase 2 Report ( SE & HIE, 2010) identifies the need of further port development and services to support the offshore renewable sector within this region. Providing deeplansr quay space and cranes at deployment sites will increase the number of technologies that will be successfully deployable, including those that require significant fabrication and support infrastructure. All ports in both Caithness and Orkney that could host or are already hosting renewable activities, and all have development plans with at least guideline costs for expansion of existing facilities. These include the following:

• Scrabster - potential fabrication and supply base. Outline planning permission has been obtained for industrial development on 32 acres of land adjacent to the port;
• Lyness - potential fabrication and supply base. Initial refurbishment of the former naval base has been completed with potential for further industrial development;
• Kirkwall Pier - potential fabrication and supply base;
• Hatston Pier - potential fabrication and supply base. Work to extend the pier is scheduled to commence in October 2011;
• Stromness Pier - potential small support vessel base. Subject to planning permission, a new Pier of approximately 110 metres will be built at Copeland's Dock in Stromness commencing in the late autumn of 2011;
• Gills Bay - potential base for large support and supply vessels; and
• St Margaret's Hope - potential base for small support vessels.

Lead times vary, but the NRIP Phase 2 Report ( SE & HIE, 2010) suggests three years to delivery should be allowed for, which includes obtaining planning permissions and financing. The NRIP Phase 2 report further suggests that larger scale deployments scheduled from 2017 onwards will need to be determined by 2013, with work needing to begin by 2014 at the latest.

For the purposes of providing indicate p.a.ing timelines for port development, the NRIP Phase 2 Report ( SE & HIE, 2010) suggested:

• 2011-2015 - immediate needs being for deployment of devices at EMEC and other testing facilities, before moving on to the deployment of small scale arrays at sites identified in the PFOW area. This includes survey work undertaken by various types of inshore and offshore survey vessels, predominantly multi-cats (20metres in length) and small workboats (10metres in length). Stromness is likely to be used for the largest number of sites given sailing times and specialist workforce location. Hatston and Kirkwall Harbours could also be used for Northerly sites, and Scrabster Harbour and Gills Bay providing mainland facilities for the Pentland Firth. Wick is already hosting survey work boats for offshore wind, and depending on which companies win the Environmental Impact Assessment contracts, White Head (Loch Eriboll) may be used.
• 2016-2020 - assuming the continuing progression of technology development and subject to the necessary grid infrastructure being in plans, the industry will move towards deployment of arrays. Considerable associated port infrastructure will be required, the exact specifications for that infrastructure is not yet established, but will be clarified as the technology progresses and financial commitments to grid infrastructure, device manufacture and support vessels are made.
• 2020 onwards - operations and maintenance of installed devices. This activity, for economic and operation reasons, will need to be supported near the development sites. Port facilities to service this requirement will be sought ideally within four hours sailing time.

6.10 Power Interconnectors

6.10.1 Regional Activity

Numerous domestic subsea power cables exist in this region, connecting the North coast of Scotland and Orkney and islands within the Shetland Islands (Figure 136).

6.10.2 Regional Economic Value and Employment

It is not currently possible to assign an economic value to power interconnectors in this region.

Further information on employment within this sector is provided by the ONS ABI however that the proportion of these employees associated with subsea power cables is unknown.

6.10.3 Future Trends

The Scottish National Planning Framework 2 (Scottish Government, 2009b) identifies 'electricity grid reinforcements' as one of the fourteen national developments essential to the delivery of the spatial strategy set out in the second National Planning Framework. The strategic grid reinforcements are essential to provide the transmission capacity necessary to realise the potential of Scotland's renewable energy sources, maintain long-term security of electricity supply and support sustainable economic development. This development would include reinforcement of the sub-sea cable link between Orkney and the Scottish mainland. No information was sourced on the timescale of this development.

In addition, there are a number of proposed marine power interconnector developments in the UK at various stages of maturity in the planning process. Those that may be relevant to this region (e.g. which may pass through this SORER and/or make landfall in this region) are shown in Table 155.

Table 155. Proposed marine power cable developments in the UK relevant to Scotland

Connection	Indicative Length ( km)	Capacity (MW)	Comment
UK- Norway 'North Connect'	570	1400	Co-operation agreement signed in February 2011. Expected to be operational before 2020 (Saunders et al, 2011). Preferred landing point in Scotland is Peterhead (in the North East SORER) however a landing point in Norway has not been identified*.
Shetland Orkney and East Coast of England 'East Coast Transmission Network'	>2000	1000 MW network	Feasibility study undertaken in 2008; vision for 2020 (Saunders et al, 2011).

* http://www.globaltransmission.info/archive.php?id=9282

(Source: Saunders et al, 2011; Refabrica website: www.refabrica.com/einter/?page_id=157)

6.11 Recreational Boating

6.11.1 Regional Activity

Recreational boating along the North coast of Scotland and outlying islands of Orkney and Shetland is seen by many as the 'fringe' of recreational boating, but the number of berths available has increased in recent years, following a growth in demand from Scottish residents for home port facilities and to service a growing volume of visitors, many from overseas. The North is characterised by a significant proportion of demand that derives from visitors from outside Scotland, notably other Northern Euro p.a. countries, this overseas demand is notably present in Orkney and Shetland waters, (Scottish Enterprise, 2010).

Informal cruising routes in the study area are shown in Figure 137. These include Wick Harbour (marina) and deep water anchorage either directly to the Shetland Isle or Fair Isle, or via Duncansby Head to the Orkney Isles, or along Scotland's Northern coastline. There are few facilities for recreational boaters cruising through Pentland Firth on passage to Cape Wrath and the Hebrides, other than small anchorages, piers and jetties. The principal port of call along Scotland's Northern coast is Scrabster which provides a number of marine facilities.

Recent marina developments have provided stopping points along the East Coast of Scotland, making progression to the Isles of Orkney and Shetland a more attractive proposition. The four main marina operators between Inverness and Shetland have grouped together to create the Viking Trail to encourage greater use of the new facilities and open up cruising routes to the Northern isles, see Figure 137 for route ( www.sailNorthscotland.com).

Until recently the Orkney Islands were viewed primarily as a stopping off point for sailors en route from Scandinavia to Scotland. However, after over £6 million of investment by Orkney Islands Council in breakwaters and pontoons, recreational boaters now have the choice of three marinas at Kirkwall (94 berths), Stromness (64 berths) and at a small marina and pontoon facility at Westray. Numerous islands have alongside jetty berthing available and there are also visitor moorings available at locations throughout the islands. The smaller islands are a haven for wildlife, and all have interesting flora and fauna. The net result is that Orkney is now viewed as a destination in its own right by cruising yachtsmen, be they on a circumnavigation of Scotland or Britain, or charterers taking a boat from the charter company based in Kirkwall, (Sail Scotland, 2011) and (Orkney Marinas, 2011).

6.11.2 Regional Economic Value and Employment

An indicative estimate of the economic impact of sailing on this region is provided by the Scottish Enterprise (2010) and shown in Table 156.

There are no regional employment figures for activities relating to recreational boating.

Table 156. Sailing area value and berth numbers 2009

Sailing Tourism Region	Value GVA	Percentage of Total Available Berthing	Number of Pontoons	Number of Moorings	Scottish Sea Areas Included in Value
North: Gairloch, Helmsdale, Peterhead, Orkney, Shetland	£7.9M	7.8%	1,792	224	North Scotland Coast West Shetland East Shetland Moray Firth

(Source: Scottish Enterprise 2010,summarised in Baxter et al, 2011)

6.11.3 Future Trends

No regional detail on future trends were available, please refer to Section 2.12.3 for national projections.

6.12 Shipping

6.12.1 Regional Activity

The North coast of Scotland from Cape Wrath to Dunnet Head is mainly steep cliffs with few navigational hazards lying in offshore waters. At Dunnet Head, the Pentland Firth separates the Scottish mainland from the Orkney Islands. Midway between South and North Ronaldsay, the Orkney Islands are divided into two parts by the Stronsay Firth and Westray Firth which together form a continuous navigable passage running North West and South East linking the Atlantic to East and West Orkney Islands. Scapa Flow, virtually a small enclosed inland sea, lies in the South part of the group with a navigable entrances open to the Atlantic and Pentland Firth.

Further offshore to the North East of this region is the Island group of The Shetlands. This is composed of about 100 islands; holms and rocks lie with Sumburgh Head as their Southern extremity and stretch some 60 miles North to Muckle Flugga. Toward the Northern end of the group Yell and Bluemull Sounds both have navigable passages. The high and rocky island of Fair Isle also forms part of the Shetlands, and dividing the otherwise deep unobstructed passage collectively known as 'Fair Isle Channel' between Orkney and Shetland Islands ( GLA, 2010).

Shipping within the study area includes vessels transiting from the Western Atlantic to the Baltic states and Russia; combined with traffic using Orkney Ports, Shetland Ports and Scottish Ports on the mainland. Most of the transiting traffic uses Pentland Firth, which is one of Scotland's busiest seaways, or travels further North and passes through the Fair Isle Channel.

The Pentland Firth is considered as an International Shipping Lane and provides the shortest route around the North of Scotland and is the only p.a.tical access to Scapa Flow and the Flotta oil terminal for large vessels. This intensity of shipping within Pentland Firth is set against a navigational background of strong tidal flows and an area prone to adverse wind and wave conditions. Table 157 shows the number of vessels transiting Pentland Firth was 7,955 in 2009, averaging 153 vessels per week, with seasonal variations around this number.

Table 157. Pentland Firth (2009) marine traffic

Type of Traffic	Dead Weight Tonnes (Total)	Number of Vessels Passing	Number of Vessels Passing (%)	Average Dead Weight (Per Vessel)
All Traffic	275,564,241	7,955	100%	34,640
Traffic not stopping in UK	144,721,925	3,88	49%	37,222
Traffic stopping at UK port(s)	130,842,316	4,067	51%	32,171
Traffic starting or finishing at Scottish Port	74,520,400	2,019	25%	36,909
Traffic starting and finishing at a Scottish Port (Domestic Traffic)	8,300,648	598	8%	13,880

(Source: Baxter et al, 2011)

The MSP Framework for PFOW (Marine Scotland, 2011b) uses Automatic Identification System ( AIS) data from the MCA as its main data source, augmented by track surveys carried out in summer and winter period during 2006. This information identifies a range of area usage including a variety of cargo vessels, passenger ferries, recreation and fishing vessels. Table 158 shows the three major ports within this region, by vessel arrival count. Orkney ports handled around 1,500 vessel arrivals in 2008, which has been relatively consistent since 1995. Although Slum Voe has seen annual fluctuations in vessel call counts over the study period overall there has been a gradual decline since 1995 to 2008 of 58%. The vessel arrival count for Lerwick has been relatively stable at around 950 per year.

Table 158. North Regional vessel arrival counts at major ports

Port	1995	1996	1997	1998	1999	2000	2001
Orkney	1,726	1,664	1,640	1,647	1,675	1,626	1,412
Sullom Voe	456	475	415	529	522	506	419
Lerwick	978	883	864	869	869	880	957
Port	2002	2003	2004	2005	2006	2007	2008
Orkney	1,467	1,816	1,772	1,709	1,679	1,692	1,565
Sullom Voe	334	344	309	280	294	252	267
Lerwick	1,052	1,147	1,054	1,001	912	945	963

(Source: DfT, 2010)

Ferry services in the region provide a lifeline for local communities living in both the Orkneys Island and the Shetland Islands. Ferry routes in the region are shown in Table 159 and Figure 137. Orkney Ferries Ltd (run by Orkney Islands Council) operate ferries to thirteen Islands within the Orkney Islands, which provides the transport link to mainland Scotland via larger ferry links to Scrabster, Gills Bay, and Aberdeen. Shetland Islands Council provides the internal ferry system to eight Islands within their area. A direct link also exists from Lerwick to Europe (Bergen, Maaloy, Hanstholm and Torshaven) and from Aberdeen direct to Kirkwall and Lewick.

Table 159. North Regional ferry routes

ID	Port 1	Port 2	Statistics	Regions
0	Aberdeen	Kirkwall	Yes	North - North East
1	Aberdeen	Lerwick	Yes	North - North East
2	Kirkwall	Lerwick	Yes	North
3	Scrabster	Stromness	Yes	North
4	Kirkwall	Stronsay	Yes	North
5	Laxo	Whalsay (Symbister)	Yes	North
6	Houton	Hoy (Lyness)	Yes	North
7	Kirkwall	Shapinsay	Yes	North
8	Tingwall	Rousay	Yes	North
9	Fetlar (Hamars Ness)	Yell (Gutcher)	Yes	North
10	Toft	Yell (Ulsta)	Yes	North
11	Lerwick	Bressay	Yes	North
12	Yell (Gutcher)	Unst (Belmont)	Yes	North
13	Stromness	Hoy (Moaness)	Yes	North
14	Lerwick	Bergen	Yes	North - Europe
15	Lerwick	Maaloy	Yes	North - Europe
16	Lerwick	Hanstholm	Yes	North - Europe
17	Lerwick	Torshaven	Yes	North - Europe
18	Orkney Isles	Orkney Isles	No	North
19	Gills Bay Pier	St Margaret's Hope Pier	No	North

(Source: Marine Scotland, 2011a)

6.12.2 Regional Economic Value and Employment

There is no published information on the specific economic value of shipping to this region. Employment extracted from Office for National Statistics shows that employment in the category 'Sea and Coastal Passenger Water Transport', provides 259 people full time employment in 2010 (see Table 160). There has been a reduction in people employed in 'Sea and coastal freight water transport from 116 in 2009, to 64 in 2010.

Table 160. North Regional shipping employment

SIC, 2007	Full-time Employees		Part-time Employees
	2009	2010	2009	2010
Sea and coastal passenger water transport ( SIC 50100)	255	259	56	33
Sea and coastal freight water transport ( SIC 50200)	116	64	4	20
Renting and leasing of freight water transport equipment ( SIC 77342)	16	8	1	1
Total	387	331	61	54

(Source: ONS, 2011)

6.12.3 Future Trends

Traffic patterns have not substantially changed since 2005 other than an increase in cruise vessels visiting the area ( GLA, 2010). Offshore marine renewables are likely to increase the amount of shipping using this area, with a hub of activity around new developments in offshore renewable energy for port in this region. This may offset the expected reduction in the Oil and Gas industry over the long term, which has already shown reductions in vessel arrivals in Shetland and Orkney ports. Sullom Voe established in the 1970s originally had a 30 year intended life, and was designed specifically for tanker traffic with the intention that these be discontinued when the terminal ceased to operate. The terminal life has now been extended and will continue to operate for the foreseeable future ( GLA, 2010).

6.13 Social and Community

6.13.1 Regional Activity

6.13.1.1 Demographics

The population of the North Region is summarised in 36 (in pale orange). The Image shows that the population of the North is significantly greater in the middle to older age bands (45-49 to 60 to 64), but also in the youngest age bands (0 to 14). The proportion of the population is lower than the national average for ages between 15 and 44. The overall average age in the North Region is 40 years old (one year greater than the national average). The total population in North Region is 41,000. Some of the significant differences seen may be ex p.a.ned by the relatively small population in this region.

Image 36. Comparison of the Population of North Region with National Average

(Source: Scottish Neighbourhood Statistics, 2011)

Image 37 shows the change in population (of children, people of working age and people of pensionable age) in the North Region between 1996 and 2010. The chart shows that the working age population declined from a p.a. of 35,700 in 1996 to around 34,300 in 2002, after which it has levelled off. In 2010, the working age population was 34,500, and the overall change (1996 to 2010) is a reduction of 3.2%. The population of children has declined across the whole period (from 12,700 in 1996 to 10,300 in 2010, equivalent to a reduction of 18.5%) while the number of people of pensionable age has increased by 29.7% (from 9,800 in 1996 to 12,800 in 2010).

Image 37. Change in Population 1996-2010 in the North Region

(Source: Scottish Neighbourhood Statistics, 2011)

6.13.2 Regional Economic Value and Employment

Median gross weekly income for full-time employees in the North Region was £305.80 (Orkney Islands) and £372.50 (Shetland Islands) in 2001. By 2010, the median earnings had increased to £502.20 in the Shetland Islands. No data are available for the Orkney Islands for 2010, but weekly income was £428.90 in 2009 (this compares with £516.80 in the Shetland Islands in 2009, showing that weekly income declined in the Shetland Islands between 2009 and 2010). The overall change between 2001 and 2009 was 39% in the Shetlands Islands and 40% in the Orkney Islands. This is equivalent to an increase of 13% in the Shetland Islands and 14% in the Orkney Island when inflation is taken into account (at an average of 2.6% per year). The overall change from 2001 to 2010 for the Shetland Islands was 35%, or 4.5% when inflation is taken into account. Average income in 2009 was higher than the national average for the Shetland Islands but lower for the Orkney Islands.

Table 161 shows employment data by industry sector for the North. The table shows that the greatest number of jobs is associated with Sectors Q (human health and social work activities) (20% of the total for 2010). Other industry sectors accounting for more than 10% of jobs are public administration and defence; compulsory social security (O) at 15%, wholesale and retail (G) at 12%, and education (P) at 10%. Less significant in the North are mining and quarrying (0.1%), real estate activities (L) (0.2%), water supply, sewerage, waste management and remediation activities (E) at 0.4%, and financial and insurance activities (0.8%). Agriculture, forestry and fishing and arts, entertainment and recreation (R) both make u p.a.ound 3% of all jobs in the North.

Table 161. Employment data by industry sector in the North

Industry Sector	Full-time		Part-time		Total
	2009	2010	2009	2010	2009	2010
A. Agriculture, forestry and fishing	405	547	38	238	443	785
B. Mining and quarrying	28	41	4	1	32	42
C. Manufacturing	1,385	1,147	211	339	1,595	1,486
D. Electricity, gas, steam and air conditioning supply	136	315	14	28	150	340
E. Water supply; sewerage, waste management and remediation activities	75	91	46	22	121	113
F. Construction	1,461	1,634	326	194	1,787	1,831
G. Wholesale and retail trade; repair of motor vehicles and motorcycles	1,992	1,864	1,368	1,400	3,360	3,263
H. Transportation and storage	1,779	1,571	385	343	2,163	1,914
I. Accommodation and food service activities	921	779	1,273	1,138	2,193	1,918
J. Information and communication	214	219	75	71	292	292
K. Financial and insurance activities	172	170	79	58	252	226
L. Real estate activities	89	32	19	18	108	50
M. Professional, scientific and technical activities	622	633	168	168	789	804
N. Administrative and support service activities	424	497	202	318	625	815
O. Public administration and defence; compulsory social security	1,317	2,813	1,413	1,379	2,730	4,191
P. Education	1,423	1,140	1,544	1,753	2,965	2,892
Q. Human health and social work activities	2,901	2,113	3,083	3,588	5,982	5,701
R. Arts, entertainment and recreation	355	252	511	532	868	784
S. Other service activities	441	265	264	446	704	711
Total	16,140	16,123	11,023	12,034	27,159	28,158

Notes: NOMIS statistics show 0 jobs for sectors T and U

(Source: ONS, 2011)

6.13.2.1 Crofting

Crofting can be defined as small-scale subsistence farming, a croft being a small unit of land which is often located on a larger estate ^[55] . Crofting land is often poor quality and holdings are small. Crofting is an important part of the economy and community in Orkney and Shetland (small areas of the NE Highland counties of Caithness and Sutherland are also located in this region, but are not included due to the overlap with other regions). The Orkney area contains 466 crofts with 8035 households in parishes containing crofts. Shetland contains 2755 crofts with 9111 households (George Street Research, 2007). Crofting makes u p.a.relatively high percentage of household income in Orkney (47.3%), and is almost double that in Shetland (27.22%). Total income is higher in Shetland than in Orkney (£20,240 in Orkney, £31,020 in Shetland) and income from crofting activities is high in both regions (£12,800 in Orkney, £10,050 in Shetland) (Hilliam, 2007).

6.13.2.2 Health

The proportion of people rating their health as good or very good in the Orkney Islands increased from 89.9% (2001/2002) to 90.1% (2007/2008). This compares with a decrease in the Shetland Islands from 92.9% (2001/2002) to 88.3% (2007/2008).

6.13.2.3 Equality

Table 162 presents the results from the index of deprivation for the North, for all datazones and coastal datazones. There are 612 coastal datazones in the North, with 78% of all datazones being coastal. The table shows that no datazones (coastal or all) fall into the 10% most deprived in the North. There is no difference in percentage that are in the most affluent decile for income or housing, but an increase to 10% (from 8%) of coastal zones being in the most affluent decile for employment, and from 5% to 6% for health. These statistics suggest that communities in the North are more likely to be affluent (in the wider sense of quality of life), although only a small proportion of datazones fall into the most affluent 10%.

Table 162. Index of deprivation for North

N	All Datazones
	Overall	Skills, Training and Education	Employ-ment	Income	Housing	Health
Min (most deprived)	1346	2049	1207	1023	685	1140
Max (most affluent)	5353	5612	6444	6464	6153	6402
Average	3556	4031	4279	3978	3650	3923
10% most deprived (total)	0	0	0	0	0	0
10% most deprived (as % of all)	0%	0%	0%	0%	0%	0%
10% most affluent (total)	0	0	6	2	4	4
10% most affluent (as % of all)	0%	0%	8%	3%	5%	5%
N	Coastal Datazones
	Overall	Skills, Training and Education	Employ-ment	Income	Housing	Health
Min (most deprived)	1746	2307	2174	1023	685	1140
Max (most affluent)	5353	5612	6444	6464	6153	6402
Average	3587	4233	4460	4089	3587	4115
10% most deprived (total)	0	0	0	0	0	0
10% most deprived (as % of all)	0%	0%	0%	0%	0%	0%
10% most affluent (total)	0	0	6	2	3	4
10% most affluent (as % of all)	0%	0%	10%	3%	5%	6%

(Source: Scottish Neighbourhood Statistics, 2011)

6.13.2.4 Skills, training and education

There are two local authorities allocated to the North Region. Table 163 summarises data on the percentage of the population with a degree, with no qualification and receiving job-related training. The table shows the difference between the minimum and maximum result by local authority across the region.

Table 163. Summary of education and skills in the North

North	2004	2005	2006	2007	2008	2009	2010
Percentage with a degree (minimum)	13%	14%	12%	12%	13%	16%	17%
Percentage with a degree (maximum)	15%	14%	13%	16%	16%	17%	18%
Percentage with no qualifications (minimum)	9.1%	No data	No data	9.8%	9.1%	No data	No data
Percentage with no qualifications (maximum)	9.9%	No data	No data	10%	11%	No data	No data
Percentage receiving job-related training (minimum)	32%	32%	29%	27%	25%	24%	25%
Percentage receiving job-related training (maximum)	36%	32%	32%	28%	31%	32%	31%

(Source: Scottish Neighbourhood Statistics, 2011)

The range of results given in Table 170 is greatest for the percentage with a degree, with the percentage in the Shetland Islands increasing from 13% in 2004 to 17% in 2010. For the Orkney Islands, the percentage with a degree increases from 15% in 2004 to 18% in 2010.

The data also suggest an increase in the population with no qualifications. The Orkney Islands has the highest proportion of the population with no qualifications in both 2004 (9.9%) and 2008 (11%). The values for the Shetland Islands are 9.1% in 2004, with no change in 2008 (still 9.1%).

The area offering the greatest proportion of job-related training in 2004 was the Shetland Islands but this declines to 25% in 2010, with the Orkney Islands showing very little change (from 32% in 2004 to 31% in 2010).

The minimum drive time to a college of Further or Higher Education in the North Region varies from 61 minutes in the Shetland Islands to 77 minutes in the Orkney Islands.

Taken together, these data indicate that the skill level as a result of training may be falling slightly, but there may be a higher proportion with degrees. It is difficult to draw conclusions in terms of the population with no qualifications due to data only being available for three of the seven years.

6.13.2.5 Access to services

Of the two local authorities in the North, the highest occupancy is in the Shetland Islands (at 91%) with vacant spaces at 5.7%. The lowest rate is in the Orkney Islands, although the difference is small, with occupancy at 89% and vacant spaces at 6.1%. The remainder (around 4% in the Shetland Islands and 5% in the Orkney Islands) relates to holiday spaces.

House prices for both the Orkney and Shetland Islands are below the national average. In 2010, the national average was £154,078 while the average in the Shetland Islands was £120,157, 22% lower than the national average. The average in the Orkney Islands was £114,153, or 26% lower than the national average. Figure 109 presents the results for the North in comparison with the other regions. Affordability of housing is likely to be greater in the Shetland Islands (since gross earnings are higher than the national average). Average earnings in Orkney (2009) were around 7% lower than the national average, so affordability in the Orkney Islands may also be greater than for Scotland as a whole.

Average council house debt was £25,212 per house in the Shetland Islands in 2011 (the highest in Scotland) and £15,825 per house in the Orkney Islands (the third highest in Scotland). Both are much greater than the Scottish average debt of £9,265. House condition is, on average, significantly lower than for Scotland as a whole. The percentage of social sector properties failing the SHQS between 2005 and 2008 was 69% (compared with 66% for Scotland) and for private sector dwellings was 79% (compared with 69% for the country as a whole).

Table 164 shows the mean and median drive time to different services in the North Region, and the datazones with the shortest and longest drive times, by service type. There are significant differences between the shortest and longest drive time, although the mean and median are much closer to the shortest times. This suggests that some communities have much longer drive times but the majority are reasonably close to these services.

Table 164. Drive time to services in North Region

Service	Drive Time in Minutes
	Mean	Median	Shortest	Longest
GP	7.2	5.1	1.1	24
Petrol station	12	7.2	1.1	101
Post office	4.6	4	1.0	17
Primary school	8.8	5.2	1.3	85
Supermarket	21	13	1.2	112

(Source: Scottish National Statistics, 2011)

6.13.2.6 Community empowerment - Case Study

Orkney Islands

With over 20 Community Councils spread across the Orkney Islands, many of the local population are involved. Ten local development trusts have been established to modernise local assets, secure funds and run services. The island of Shapinsay for example, was able to refurbish the old Smithy and turn it into a visitor attraction with the support of the local Heritage Trust (Scottish Government & COSLA).

6.13.2.7 Quality of life

The highest perceived quality of life in 2007/2008 was in the Orkney Islands, where 77.9% rated their neighbourhood as good or very good. The Shetlands Islands was only slightly lower at 77.6%. Both local authority areas have shown a considerable increase since 1999/2000 in the population rating their neighbourhood as very good or good. The increase in the Orkney Islands is 15.8% and in the Shetland Islands is 12.5%. There has been a continuous increase in the Orkney Islands, but there was a decrease between 1999/2000 (from 65.1%) to 2001/2002 (to 60.9%) in the Shetland Islands, after which the percentage of adults rating their neighbourhood as good or very good has increased.

6.13.2.8 Energy and resource consumption

Table 165 shows the average and range of electricity consumption across domestic customers for 2009, and then the change between 2005 and 2009. The table shows that average consumption (per household) in the North Region was 10.4 MWh in 2009 (compared with an overall estimated average per household for Scotland of 5.7 MWh). A reduction in MWh consumed per household was seen in both local authorities, although the change is small.

Table 165. Electricity consumption in North Region

Statistic	Domestic Customer ( MWh per household)
Average consumption ( GWh, 2009)	10.4
Lowest Consumption	9.7
Local Authority area	Orkney Islands
Highest consumption ( GWh, 2009)	11.1
Local Authority area	Shetland Islands
Largest reduction in consumption ( GWh, 2005-2009)	-0.7
Local Authority area	Shetland Islands
Smallest reduction in consumption ( GWh, 2005-2009)	-0.5
Local Authority area	Orkney Islands

(Source: based on Scottish National Statistics, using total electricity consumption by domestic customers
by local authority divided by occupied household spaces per local authority)

Table 166 shows the population considered to be in fuel poverty between 2004/2007 and 2007/2009 for the North Region. The table shows that those households where the highest income earner ( HIH) is 60+ are more likely to be in fuel poverty than the whole population in 2007/2009. At 63.9%, this is much higher than the national average of 45.9% for this group. The percentage of HIH 60+ in fuel poverty has, though, decreased between 2005/2008 and 2007/2009. The proportion of households with HIH 60+ that are in fuel poverty is very similar for the Shetland Islands (63.3%) and Orkney Islands (64.4%). In terms of change, though, there has been a much greater reduction in the proportion of the total population in fuel poverty in the Orkney Islands (-11.3%) than in the Shetland Islands (-3.5%).

Table 166. Population considered to be in fuel poverty in North Region

Population	% of Population in Fuel Poverty
	2004/2007	2005/2008	2007/2009
All	33.3%	36.5%	40.7%
Any disability or long term sick	28.7%	34.0%	31.8%
No disability or long term sick	41.6%	46.0%	55.7%
HIH 60+	57.0%	67.6%	63.9%
HIH under 60	21.5%	22.2%	23.2%
Female HIH	38.6%	44.4%	40.9%
Male HIH	30.4%	34.4%	36.2%

(Source: Scottish National Statistics, 2011)

6.13.3 Future Trends

Table 167 summarises the statistics and trends discussed above to give an indication of the likely future changes by indicator, comparing national with local trends (where data are available). There is much greater uncertainty over trends for the time period of 30 to 50 years and, in both cases, it is assumed that future trends follow recent and historic trends. The table only includes rows for which there are data at the regional level. For national projections where regional data are not available refer to Section 2.14.3.

Table 167. Summary of future trends in North Region

6.14 Telecomm Cables

6.14.1 Regional Activity

In this region, telecommunication cables comprise of inshore and offshore cables connecting mainland Scotland to Orkney, the Shetland Islands and the Faroe Islands. Offshore telecommunication cables which are part of the international network connecting Europe to the UK and North America also pass through this region (Figure 138). The approximate landfall locations (note, not necessarily within this region) and capacity of these cables are shown in Table 168.

Table 168. Subsea telecommunication cables in the North Region

Cable	To/from	Capacity	Length of Cable in Region ( km)
Atlantic Crossing 1 (Ac1) Seg.A	Germany, Netherlands, UK, USA. Seg A: North Sea/N'Scotland	120Gbps	409.4
Cantat 3 Fc3	Denmark Branches	(3x2.5Gbps) 7.5Gbps	151.8
Danice Seg.1	Landeyjasandur (Iceland) To Blaabjerg (Denmark)	10Gbps	137.2
Farice (2)	Scotland To Iceland	not found	483.0
Northern Lights	Dunnet Head To Skaill	not found	66.6
Shefa-2 Seg 7-1	Bu To Faroes	570Gbps	86.2
Shefa-2 Seg 7-3	Bu To Shetland	570Gbps	111.3
Shefa-2 Seg 8	Orkney To Shetland	570Gbps	188.4
Shefa-2 Seg 9	Banff To Mance Bay	570Gbps	35.1
Shefa-2 Seg5	Bu To Schehallion	570Gbps	63.2
Shefa-2 Seg6	Bu To Clair Platform	570Gbps	36.9
Tat 14(K)	Blaabjerg To 20 West	3.2Tbps	414.8

(Sources: http://www.iscpc.org/cabledb/North_Sea_Cable_db.htm; http://www.cablemap.info/default.aspx; and http://www.submarinecablemap.com/)

6.14.2 Regional Economic Value and Employment

There is currently no agreed method for valuing the services provided by cables as they form part of a wider infrastructure. It has not been possible to determine the direct employment figures for this activity.

6.14.3 Future Trends

No specific information on future trends for this region was found. For national projections refer to Section 2.15.3.

6.15 Tourism

6.15.1 Regional Activity

Tourist sites in North Scotland include a range of attractions, with a considerable concentration of general tourist attractions on Orkney (Figure 139). Historic/heritage attractions and natural heritage attractions also feature in significant numbers on both Orkney and Shetland. Figure 140 shows the locations of coastal and maritime cultural heritage assets, including the World Heritage Site on Orkney. The Heart of Neolithic Orkney was designated as a World Heritage Site in 1999 and includes the tomb of Maeshowe, the Stones of Stenness, the Barnhouse Stone, the Watchstone, the Ring of Brodgar and associated monuments and stone settings, and the Skara Brae settlement ^[56] .

Within the region, there are additionally several areas with seaside awards (see Figure 141). These include Sango Sands, Strathy Bay and Melvich Beach along the North coast, as well as some sites on Shetland. There are also a couple of designated bathing waters at Thurso and Dunnet. The importance of natural marine resources is also illustrated by this region having 9 Marine Special Areas of Conservation ^[57] , mainly in areas around the Northern Islets.

Visitor numbers for the whole region are not readily available. However, it is possible to obtain data for Shetland and Orkney from VisitScotland. Data for 2009 indicate that UK visitors made 0.07 million trips to Orkney, stayed for 0.4 million nights and spent around £30 million. Considering Shetland, UK visitors made 0.04 million trips, stayed for 0.25 million nights and spent approximately £12 million (VisitScotland, 2010).

6.15.2 Regional Economic Value and Employment

No economic value or employment information which is specific to the North Region has been identified (with the exception of the expenditure figures given above for Orkney and Shetland).

6.15.3 Future Trends

For further discussion on trends in tourism, see Section 2.16.3 (National Overview)

6.16 Waste Disposal

6.16.1 Regional Activity

The location of open, disused and closed dredge disposal sites are shown in Figure 142. The name of open disposal sites and the area of seabed each disposal site covers are shown in Table 169.

Table 169. Area of seabed covered by open disposal sites in the North Region

Name of Disposal Site	Area of Seabed (m²)
Skerries	0.013
Cullivoe	0.013
Scalloway	0.013
Stromness A	0.143
Stromness C	0.143
Stromness B	0.110
Scapa	0.110
Lerwick	0.106
Ulsta	0.105
Toft	0.105
Kirkwall	0.349
Foula	0.408
Dounreay Microsite	0.092
Total	1.709

(Source: Based on Cefas data, 2011)

Data supplied by Marine Scotland indicated that no licences were issued for disposal of dredge spoil at open sites in this region in 2010.

6.16.2 Regional Economic Value and Employment

It is not possible to calculate the GVA associated with dredge spoil disposal (Baxter et al, 2011). There are no records of employment directly linked to this activity.

6.16.3 Future Trends

The Scottish National Planning Framework 2 (Scottish Government, 2009b) identified future port developments, which may require dredging, including the development of deep water international container transhipment facility at Scapa Flow, Orkney. In addition, the NRIP identified several sites in this region which may support the wave and tidal industries in the medium term future: Sella Ness, Lerwick, Lyness, Hatston and Scrabster (Scottish Enterprise and Scottish Highland and Island Enterprise, 2010a). Developments of these sites may require dredging, however, no details of the potential infrastructure development requirements were provided in the NRIP.

6.17 Water Sports

6.17.1 Regional Activity

6.17.1.1 Surfing and windsurfing

Some of the UK's best surfing breaks are situated along the North coast of Scotland. The region receives strong, powerful swells and provides a number of high-quality surfing spots. In particular, the reefs situated around Brims Ness and Thurso are considered to be world-class ( SAS, 2009). Orkney also has good quality surfing locations although participant numbers are less than on mainland North Scotland, primarily due to accessibility ( SAS, 2010). The location of surfing breaks in the North area can be seen in Table 170 and Figure 143.

Table 170. Surfing and windsurfing locations in the North Region

General Location	Surf Location
Sutherland	Melvich
	Strathy
	Armadale Bay
	Farr Bay
	Torrisdale
	Kyle of Tongue
	Sandwood Bay
	Point of Ness
	Dunnet Bay
	Castlehill to Murkle
	Murkle Point
	Thurso East*
	Shit Pipe
	Brimms Ness - The Point
	Brimms Ness - The Cove
	Brimms Ness - The Bowl
	Sandside Bay*
Caithness	Gills Bay
	Brunt Skerries
	Harrow Harbour
	Scarfskerry Reefs
	Ham
Orkney	Marwick
	Skail Bay Right
	Skara Brae

* Also listed in the Windsurf magazine 'beach guide' ( http://www.windsurf.co.uk/beachguide)

(Source: Based on SAS, 2009 and 'Stormrider Guides', 2010 ( http://www.lowpressure.co.uk); and Windsurf Magazine 'Beach Guide', 2011 ( http://www.windsurf.co.uk/beachguide)

Windsurfing on Orkney is a popular activity at Kirkwall's Scapa Beach and Orphir's Waul kmill Bay. In addition, the storm beach of Skaill Bay on the West coast of mainland Orkney and Sandwick, are popular spots (Visit Orkney, 2009).

6.17.1.2 Angling

The main launch spots for charter based angling are Thurso in North Scotland and Stromness on Orkney (Radford et al., 2009). Wreck angling is popular in Scapa Flow and also on other wrecks found offshore from Orkney. Cod, pollack and mackerel, are the most popular target species in Caithness and Sutherland. There is some evidence, however, of sports fishing for rarer species such as porbeagle shark becoming more popular. In Orkney conger eel is found amongst the wrecks of Scapa Flow and is the most popular target species, followed by mackerel and bass (Radford et al., 2009).

6.17.1.3 Scuba diving

The most popular area for scuba diving in the region is around Scapa Flow in Orkney (Figure 144). This body of water is considered one of the finest wreck diving sites in Europe and has ranked among the top five wreck diving areas of the world (Jack Jackson, 2007; Baxter et al, 2011). While scuba diving has predominantly been based in Scapa Flow historically, it increasingly involves diving in other parts of Orkney (Jack Jackson, 2007; Visit Orkney, 2009) and also on Shetland. Recreational diving is predominantly charter based with an estimated 3000 visiting divers annually (The Orkney Hyperbaric Trust). A limited amount of diving is also undertaken on the mainland in this region. Details about the number of dive centres, charter boats and diving clubs found in the region can be seen in Table 171 and Figure 144.

Table 171. The number of dive centres, charter boats and diving clubs found in the region in North Region

Facilities	Number
Dive Centres	4
Charter Boats	5
ScotSAC Branches	2
BSAC Branches	2

(Source: BSAC: http://www.bsac.com/; ScotSAC: http://www.scotsac.com/; and http://finstrokes.com)

6.17.1.4 Small sail boat activity and sea kayaking

Dinghy sailing clubs are located in Kirkwall, Orkney and in Northern Shetland (Figure 145). In terms of popularity, kayaking around Orkney and the North coast of Scotland is not considered as important as other regions such as the Inner Hebrides and East Gra mp.a. Coast (Land Use Consultants, 2007) (Figure 146).

6.17.2 Regional Economic Value and Employment

Regional economic values within this region were available for surfing and windsurfing, scuba diving and recreational angling.

6.17.2.1 Surfing and windsurfing

While no estimates of the total value of surfing in the North Region are available the value of Scotland's largest surfing event, the O'Neill Coldwater Classic at Thurso East has been calculated. The annual competition is an Association of Surfing Professionals ( ASP), World Qualifying Series ( WQS) event, which is listed as a six star event, the highest rating in the WQS and also the highest rated professional surf contest ever held in the UK (Event Scotland, 2010). The 2010 event achieved estimated spectator numbers of 5,500 over the 8-day event. The event resulted in an estimated expenditure of £440,000 to the local economy and an additional £420,000 within wider Scotland with major influential media coverage totalling £3.8m http://www.eventscotland.org/funding-and-resources/case-studies/o-neill-coldwater-classic-2010/.

6.17.2.2 Scuba diving

The Orkney Hyperbaric Trust was set up to increase diver safety within Orkney waters. Diving is an important industry in this region and is estimated to be worth at least £3m a year to the Orkney economy (The Orkney Hyperbaric Trust, 2008). The diving industry consists of military and police, commercial and archaeological and recreational, the latter accounting for approximately 25,000 of the dives made each year which are carried out from 2 dive boats, who take around 3,000 visiting divers/year, to dive sites such as the Scarpa Flow area.

6.17.2.3 Angling

A study by Radford et al. (2009) estimated the sea angling activity and economic value in eight regions of Scotland. Two of these regions, North Scotland and Orkney and Shetland fall within the North Region. As the areas in Radford et al. (2009) do not align with the North Region the values should only be taken as indicative values for comparison between areas. The total estimated regional sea angling activity and expenditure within these two regions is shown in Table 172 below.

Table 172. Estimated regional sea angling activity and expenditure in North Region

Region	No. Resident Sea Anglers	Annual Sea Angler Days Spent in Region	% of Total Activity Undertaken on the Shore	Total Annual Sea Angler Expenditure (£M)	% of Expenditure Spent on Shore Angling	Number of Jobs Supported
North Scotland	7894	144346	43%	11.2	41%	299
Orkney and Shetland	2823	74640	46%	6.1	42%	145

(Source: Radford et al, 2009)

There are no regional employment figures for activities relating to water sports.

6.17.3 Future Trends

No regional detail on future trends were available, please refer to Section 2.18.3 for national projections.