Public reports pack
Argyll and Bute Council · 2 November 2022
Back to Mid Argyll, Kintyre and the Islands Area Community Planning Group — 2 November 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 26 October 2022 NOTICE OF MEETING A meeting of the MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMUNITY PLANNING GROUP will be held in the COUNCIL CHAMBERS, KILMORY, LOCHGILPHEAD AND VIA MICROSOFT TEAMS on WEDNESDAY, 2 NOVEMBER 2022 at 2:00 PM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. WELCOME AND APOLOGIES 2. DECLARATIONS OF INTEREST 3. MINUTES (a) Minutes of Mid Argyll, Kintyre and the Islands Community Planning Group held on Wednesday 31 August 2022 (Pages 3 - 12) 4. PARTNER UPDATES (a) Police Scotland Update (Pages 13 - 14) (b) Argyll and Bute Health & Social Care Partnership Update (Pages 15 - 18) (c) Forestry and Land Scotland Update (Pages 19 - 20) (d) Third Sector Interface Update (Pages 21 - 22) (e) Campbeltown Community Council Update (Pages 23 - 24) (f) Tarbert & Skipness Community Trust Update (Pages 25 - 26) (g) Opportunity for verbal updates by Community Planning Partners Public Document Pack
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5. CBER - THE SOCIO-ECONOMIC IMPACT OF CALMAC FERRIES (Pages 27 - 100) Report By Robert Beauchamp, Centre of Business and Economic Research (Cber) 6. UPDATE FROM ARGYLL COMMUNITY HOUSING ASSOCIATION Update from Michelle Mundie, Chief Executive, Argyll Community Housing Association (ACHA) 7. FYNE HOMES (Pages 101 - 104) Presentation by Iona MacPhail, Chief Executive of Fyne Homes 8. CLIMATE CHANGE (a) Highlight Report from Climate Change Working Group (Pages 105 - 106) Report from the Chair of the Climate Change Working Group (b) Time for Change Report (Pages 107 - 108) Report by Angela Anderson, Argyll and Bute Time for Change Group 9. ALIENERGY Presentation by Dr Lynda Mitchell, Manager ALIenergy 10. COMMUNITY FOCUS (a) Mid Argyll and Kintyre Food Banks (Pages 109 - 114) (b) Mid Argyll Youth Development Services (MAYDS) & MacTaggart Youth and Families Outreach Services (MYFOS) (Pages 115 - 122) 11. MANAGEMENT COMMITTEE UPDATE (Pages 123 - 128) 12. AOCB 13. DATE OF NEXT MEETING Mid Argyll, Kintyre and the Islands Area Community Planning Group Ian Brodie (Chair) John Armour (Vice Chair) Contact: Shona Barton, Governance Manager; Tel: 01436 657605
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MINUTES of MEETING of MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMUNITY PLANNING GROUP held BY MICROSOFT TEAMS on WEDNESDAY, 31 AUGUST 2022 Present: Ian Brodie, East Kintyre Community Council (Chair) Shona Barton, Committee Manager, Argyll and Bute Council Councillor John Armour Councillor Jan Brown Councillor Dougie McFadzean Brian Smith, Community Learning Team Leader, Live Argyll Alyson MacGillvray, South Islay Development Alyssa Stewart, Inveraray Community Council Linda Divers, Inveraray Community Council Andy Galloway, Local Democracy Reporter Chiara Fingland, Architecture and Design Scotland James Paterson, Senior Economic Growth Officer, Argyll and Bute Council Darren Gibb, Scottish Fire and Rescue Service Jen Broadhurst, Argyll and Bute Citizens Advice Bureau Jennifer Dryden, Argyll and Bute Health and Social Care Partnership Neil MacFarlane, Transport Scotland Sergeant Matthew Shaw, Police Scotland Valerie Nimmo, Campbeltown Community Council Antonia Baird, Community Development Officer, Argyll and Bute Council Ryan MacIntyre, MSYP for Argyll and Bute Margaret Wallace, Argyll and Bute Third Sector Interface 1. WELCOME AND APOLOGIES The Chair welcomed everyone highlighting some new members of the Group including the newly elected Members of the Scottish Youth Parliament, and the three Elected Member representatives. The Chair then outlined the procedure for the meeting. Apologies for absence were intimated on behalf of: Donald McNeill, Forestry and Land Scotland; Jeni West, Forestry and Land Scotland; May Cross, Department for Work and Pension; Teresa Robertson, Fyne Homes; Kelly Scott, SSE; Robert Judge, Live Argyll; Sandra MacIntyre, We Are With You; Donna Lockhart, Calmac; Page 3 Agenda Item 3a
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Christopher Casey, Scottish Fire and Rescue Service; Susan MacRae, Skills Development Scotland; Heather Thomas-Smith, Argyll and the Isles Tourism Co-operative; Councillor Tommy MacPherson; Mairi MacCuaig, Argyll College UHI; Jackie MacPherson, Argyll College UHI and Dhonna McCallum, Argyll College UHI. 2. DECLARATIONS OF INTEREST There were no declarations of interest. 3. MINUTES (a) Meeting of the Mid Argyll Kintyre and the Island Community Planning Group held on Tuesday, 26 April 2022 The minutes of the Mid Argyll, Kintyre and the Islands Area Community Planning Group meeting held on Tuesday, 26 April 2022 were approved as a correct record. 4. PARTNER UPDATES (a) Scottish Fire and Rescue Update The Group considered a report highlighting the Scottish Fire and Rescue Service’s (SFRS) FQ1 review of local performance across Mid Argyll, Kintyre and the Islands for the period 2022-23. In the absence of Barry Colvan, Darren Gibb spoke to the terms of the report. The report included information around incidents during this period, recent community engagement activities and the local firefighter training plan. Decision The Mid Argyll, Kintyre and Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Scottish Fire and Rescue Service, submitted) (b) Police Scotland Update Consideration was given to an update by Sergeant Matthew Shaw which included information on the ongoing work of the Service and provided information on staff resourcing as well as a number of initiatives including Page 4
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Keep Safe – Ukranian Support and Doorstep Crime Guidance. Information in relation to road safety was also provided in the report. Sergeant Shaw also highlighted the increasing trend of drug drivers and drugs being brought into the area and added that road block operations had been in process which has resulted in good results and advised that they are increasing the footprint of these type of operations. Sergeant Shaw spoke of the public engagement activities helping improve the way the policing service is delivered in local communities and advised of the launch of this year’s annual Police survey. He urged Partners to go online and complete the survey and give their views. Discussion was had around the installation of ANPR Cameras on the A83; the recent Rural Crime event held in Kintyre and the possibility of running similar events in correlation with neighbourhood watch meetings in the future. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Police Scotland, submitted) (c) Argyll and Bute Citizens Advice Bureau Update The Group gave consideration to an update from Jen Broadhurst, Argyll and Bute Citizens Advice Bureau (CAB). The update highlighted an unprecedented rise in requests for advice and support from clients across all areas of Argyll and Bute and outlined that the impact of the cost of living crisis had pushed energy enquiries up by 89% between September and July compared to the same period last year. Information was also provided on the relocation of the office to the Helensburgh Community Hub; the recommencement of the Volunteer Adviser Training Programme and the upcoming AGM, which is scheduled to take place on 22 November 2022. Discussion was had in relation to the waiting time for general enquires. Jen advised that for any urgent cases, appointments would be given within a fortnight or more often than not within a week. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Argyll and Bute Citizens Advice Bureau, submitted) (d) Argyll and Bute Health and Social Care Partnership Update The Group considered a public health update from Jennifer Dryden, Argyll and Bute Health and Social Care Partnership. The update highlighted Page 5
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information regarding to the Money Counts Level 1 Training Course; Smoke Free Hospital Ground’s Legislation and Scotland’s Suicide Prevention Strategy Consultation. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Health Improvement Lead, Argyll and Bute Health and Social Care Partnership, submitted) (e) Campbeltown Community Council The Group considered an update by Valerie Nimmo from Campbeltown Community Council. The update included information on disbursement of funds from Campbeltown Community Windfarm Fund; Ongoing work on the sea defences at the Esplanade; Concerns for the town centre traffic management; the resurfacing of the Esplanade and the deterioration of two empty buildings in the main street in Campbeltown. Discussion took place in regards to the sea defences work; traffic management; the resurfacing of esplanade and around the wire around the SUStrans sculpture. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Valerie Nimmo, Campbeltown Community Council, submitted) (f) Tarbert and Skipness Community Trust The Group considered a written update from Tarbert and Skipness Community Trust. The update included information on the Housing Project and the funding received for this; the representation at the Community Housing Network Group organised by Argyll and Bute Council Housing team; the proposal to Tarbert Harbour to provide a heritage experience to attract local residents and visitors to the village centre and the participation in online discussions regarding how to deliver affordable homes in the area. Shona advised that any questions or comments for Tarbert and Skipness Community Trust in relation to the update should be forwarded to her and she will feed these back and request an update at the next meeting. Decision Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. Page 6
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Action - Shona Barton to pass on Police Scotland’s details to the Trust and ask them to get in touch. (Reference: Report by Tarbert and Skipness Community Trust, submitted) (g) University of Highlands and Islands Update Having noted that there was no one in attendance from Argyll College UHI, the group gave consideration to a written update which included information on their new logo design; Graduation date for pupils attending Argyll College UHI; School link skills for work; Information on the school academic year ahead and information on the new Construction & Engineering Centre in Campbeltown which opened in May 2022. Shona advised that any questions or comments for Argyll College UHI in relation to the update should be forwarded to her and she will feed these back and request an update at the next meeting. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Argyll UHI, submitted) (h) Climate Action Towns Update The group gave consideration to an update from Architecture and Design Scotland and Chiara Fingland spoke to the terms of the report. The report included information about what they have agreed since the last meeting of the Area Community Planning Group. This included agreeing the focus for year 2 with local partners and where they can support implementation of the Community Action Plan (CAP) with climate change considerations. Chiara also noted that they have supported Campbeltown Community Council to work with Campbeltown Grammar Schools’ pupil council so that young people are more involved with local decision making. A potential project around improving recycling in the school and town is due to start autumn 2022. Chiara also highlighted that that the learning from year 1 across all 7 Climate Action Towns has now been published and you can view on the link below. https://www.ads.org.uk/resource/climate-action-towns-year-one-lessons- report Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Chiara Fingland, Architecture and Design Scotland, submitted) Page 7
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(i) South Islay Development, Port Ellen Playing Fields Update The group gave consideration to an update from South Islay Development and Alyson MacGillivray spoke to the terms of the update. The update highlighted that SID had received 2 completed tenders from contracting companies who were willing to do the construction work for the new building on the Port Ellen Playing Fields. However due to the rising construction costs SID have since been unable to award the contract to either parties. Alyson highlighted that SID are now working with Argyll and Bute Council, Highlands & Islands Enterprise and a Procurement specialist to investigate options for the most cost-effective way forward. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by South Islay Development, submitted) (j) Argyll and Bute TSI Update The group gave consideration to an update by Margaret Wallace of Argyll TSI which included information on the recent Volunteer of the Year Awards; the distribution of the Community Based Adult Learning Fund; the announcement expected from the Scottish Government on the Community Mental Health and Wellbeing Fund; the new Joint Commissioning Strategy, as agreed by the Integration Joint Board, at its meeting on 30 March 2022; the Training Needs Analysis survey which has been sent out to the voluntary sector; the progress of the ABCD database (Argyll and Bute Community Directory) which has now over 872 organisations details and the YPG Mentor and Volunteer Placement Programme. Margaret highlighted that volunteers are in short supply and added that there was a decline after the pandemic. Discussion was had around the funding received from the Community Health and Well Being fund and the Communities Directory. The Committee Manager agreed to take forward arrangements for a demonstration of the Community Directory at a future meeting. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Argyll TSI, submitted) (k) Opportunity for Verbal Updates Page 8
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Community Development, Argyll and Bute Council Antonia Baird highlighted some of the work undertaken by the Community Development Team. The update included information on risk management training given; the completion of the analysis of training needs survey and added with working with TSI should be able to provide training; Antonia also mentioned that there was a meeting held with the Scottish Mens Shed movement to find out information on if they were able to continue throughout the pandemic or if support is needed and spoke of the cost of living crisis. Lastly Antonia wanted to congratulate the Dochas Centre who were recently awarded a grant of £200,000 to continue their befriending service and counselling which is made available throughout the area via telephone or zoom. Transport Scotland Neil MacFarlane provided information of scheduled work which is to take place. This included the construction of a new footpath in Minard into Crarae Gardens; 3 Resurfacing projects along the A83; Future works on Butterbridge and Honeymoon Bridge, and also the sea wall in Ardrishaig; verge collapse on South Craleckan – North of Furnace; remedial works in Hall street in Campbeltown and pedestrian crossing and road drainage works on Kinlock Road in Campbeltown. Discussion took place around the timescale for the works in Campbeltown and the pedestrian crossing. MSYP for Argyll and Bute Ryan MacIntyre introduced himself to the group and provided an update on road shows that he had attended and provided an update on scheduled events going forward. He added that they are trying to encourage young people to use their voices and are listening to young people’s issues. Ryan Highlighted that work on the Education Change programme was undertaken prior to it being presented to Council and highlighted that they are looking at ways to ensure young people’s voices are heard and used. Community Council Elections Shona Barton provided a short update on the process of the Community Council elections. She advised that the Community Council Elections are to take place on the 20 October 2022 and that nominations are now open. She advised that the closing date is 8 October 2022 and provided the following link to nomination packs:- https://www.argyll- bute.gov.uk/community-council-elections-20-october-2022 East Kintyre Community Council Page 9
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Ian Brodie advised that the SSEN undersea cable from Carradale to Arran work is finished and SSEN Carradale substation delivered the last transformer on Tuesday. Ian highlighted that East Kintyre had an open day in Carradale on the 13 August which was very well attended and added that details and report of the event would be presented at the next meeting. Ian lastly spoke of the preparation for the by-election on the 29 September following the sad death of Councillor John McAlpine. 5. ARGYLL AND BUTE SETTLEMENT PROGRAMME The Group gave consideration to an update by James Paterson which highlighted his team’s continual work in trying to improve the barriers faced by people when taking up employment in Argyll and Bute’s most rural areas. Four geographical areas are being focused on, Coll and Tiree; Kintyre, Bute and the Rosneath Peninsula. James added that they are in the process of recruiting a new Settlement Officer following the resignation of previous post holder. He advised that it is anticipated that a full report will be provided to Council in April next year. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by James Paterson, Senior Economic Growth Officer, Argyll and Bute Council, submitted) 6. COMMUNITY FOCUS (a) Inveraray Community Action Plan Consideration was given to a report which highlighted the ongoing work of Inveraray Community Council, including the local communities vision for the future of Inveraray and its people. The plan considered opportunities in 4 areas, Business and Commerce; Infrastructure and Development; Health and Wellbeing and Community Cohesion and Pride. Alyssa Stewart and Linda Divers spoke of the action plan that Inveraray Community Council had recently completed. They advised of the grant awarded by the Council of £1500 and the process involved. They spoke of community engagement work; an open day held at a local church; negative feedback received and the struggle with the lack of volunteers. They added they are trying to encourage people advising that the Community Council will help take forward any recommendations or plans with the help of others. They talked of the work that they are currently involved in with the Pier and added they are in discussion with young people to help create somewhere for them to play football, highlighting discussions with the local primary school who have an unused field that could be improved into a sports pitch for children. Discussion was had around the great presentation given and good work Page 10
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the community council had been doing. Partners were encouraged to look at the Community Action Plan and if they see themselves as partners listed as potential partners to reach out to Inveraray Community Council to offer support. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Inveraray Community Council, submitted) 7. CLIMATE CHANGE (a) Report from Climate Change Working Group Consideration was given to a report which highlighted the ongoing work of the Climate Change Working Group. The report outlined the proposal to produce a strategic Action Plan as a means to address the climate emergency in Argyll and Bute; the development of governance arrangements and structures to support the Climate Change Project Officer post. Information was also provided on the funding options for the project. The Chair advised that any questions or comments in relation to the update should be forwarded to the Chair of the Climate Change Working Group, Stan Philips. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the information provided. (Reference: Report by Stan Phillips, Chair of the Climate Change Working Group, submitted) 8. COMMUNITY PLANNING MANAGEMENT COMMITTEE UPDATE Consideration was given to a briefing note which provided information on matters discussed during a meeting of the Community Planning Partnership (CPP) Management Committee, held on 22 June 2022. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group considered and noted the briefing note. (Reference: Report by Shona Barton, Committee Manager, Argyll and Bute Council, submitted) Page 11
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9. APPOINTMENT OF VICE CHAIR TO THE MID ARGYLL KINTYRE AND THE ISLANDS COMMUNITY PLANNING GROUP The group gave consideration to a report which provided information in relation to the appointment of a Vice-Chair for the Mid Argyll, Kintyre and the Islands Area Community Planning Group. The report outlined the expected time commitment and provided information on the role. Councillor Jan brown nominated Councillor John Armour on an interim basis. John agreed that he would be happy to take up the post of Vice-Chair until after the Community Council elections as he feels this position would be more suited for a Community Council representative or other partner. With there being no other nominations, this became the decision of the group. Decision The Mid Argyll, Kintyre and the Islands Area Community Planning Group appointed Councillor John Armour as Vice-Chair for a period of initially 6 months. Review will take place at the February Meeting of the CPG. (Reference: Report by Shona Barton, Committee Manager, Argyll and Bute Council, dated 31 August 2022, submitted) 10. REVIEW OF MEETING ARRANGEMENTS The Committee Manager provided a verbal update on the review of future meeting arrangements. She advised that the next meeting in November would be held in the afternoon. Shona highlighted the options for future meetings and asked for views on whether to continue with fully remote or hybrid where there is an option to meet in person with some joining via MS Teams. Discussion took place within the group regarding what attendees preferred and Shona added that the team now have quite sophisticated equipment in the Chambers in Kilmory which will allow members to choose whether to attend in person or remotely. She also advised that the Council was in the process of procuring equipment for to facilitate Hybrid meetings for the Area Committees that we would be able to use for CPG, however added that we would need to use in facilities where there was a reliable Wi-Fi connection. With all members in agreement it was decided that the next meeting would be held on a Hybrid Basis from the Council Chambers in Kilmory with the option available for members to join remotely. 11. DATE OF NEXT MEETING The Chair thanked everyone in attendance at the meeting, and thanked all partners for their continued proactive work in the community. The Group noted that the next meeting of the Mid Argyll, Kintyre and the Islands Area Community Planning Group would take place on Wednesday, 2 November 2022 at 2.00pm. Page 12
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Argyll and Bute MAKI - Area Community Planning Group Partner Update – Police Scotland Dementia Safeguarding Tag During the summer of 2021, the Herbert Protocol was launched in Argyll and Bute. This involved promotion of the Herbert Protocol for every person living with dementia whether they are living at home, or within another setting in the event they go missing in order that Police Scotland can use the information on the form to find them sooner and therefore, safer. This work has been well received and continued to be promoted with both statutory and third sector services as well as featuring regularly on social media and other platforms. Police Scotland are experiencing an increase in incidents pertaining to people living with dementia, who have been out in their community and have become distressed, confused or disorientated. Often this happens in cafes, retail outlets or on public transport. The normal response to this is that members of the public, normally those working in these premises, will engage with the person and try and lessen their distress. They will try and establish their name and an emergency contact. In most incidents, Police Scotland are contacted to assist as what we would class as a “concern for person” incident. Upon officers attendance, normally 2 officers in high visibility police uniform and a marked police car, they will try and establish their identity and of course, their wellbeing. Whilst officers will always be compassionate in their response, their very presence can often increase someone’s distress, mainly owing to the uniform and police car. The principal aim of the Dementia Safeguarding Tag is to provide everyone living with dementia, at least one Dementia Safeguarding Tag which can be attached to a handbag, mobile phone, walking aid, house keys, or item of clothing most worn. This would be for the person themselves or their family/support network to agree on based on the individual. The Dementia Safeguarding Tag looks like a keyring (around the size of a 2p coin) and contains what is known as Near Field Communication (NFC). NFC is the mechanism that enables chip and pin cards to work and can be operated by a mobile phone to use for payment means such as Apple Pay. Every modern mobile telephone has NFC technology within it, it simply needs to be enabled in the same way as Bluetooth or WIFI. This doesn’t require an app and does not cost any money. Each tag is individually programmed and when tapped against a mobile telephone populates a message relative to the wearer. Police Scotland have held a number of focus groups throughout Argyll and Bute involving people with lived experience of dementia. This has included those with their own diagnosis, those who have a family member living with dementia, or those providing support to people living with dementia. The focus groups have provided the design of the device itself as well as the wording to be contained when the device is tapped with a mobile phone. The focus groups have provided an overwhelming support of this project to be launched Page 13 Agenda Item 4a
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with 100% of those discussed saying this is a good idea and should be rolled out further. When tapped with a mobile phone, the tags will reveal the following: My name is [insert name] and I live in [insert town]. I am living with dementia. If I require assistance, please contact [insert emergency contact name and telephone number]. This ensures no sensitive information is provided on the person that could make them more vulnerable. The town of residence is included in the event an emergency contact cannot be contacted. The way the tag works is that when this message comes up on the screen, you simply tap the number of the emergency contact and it will call them. To programme each device takes around 2 minutes and is extremely simple to carry out with a free app being downloaded to facilitate this. At the focus groups this was demonstrated and trialled by a number of members all succeeding in this quickly. We are aiming to launch the Dementia Safeguarding Tag at the end of November 2022 with support from Alzheimer Scotland which will include a video that can be shared on social media as well as posters and leaflets that partners can share for wider awareness. For more information please contact laura.evans@scotland.police.uk Page 14
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Argyll & Bute Community Planning Partnership Area Meetings Date: October 2022 Partner update – Public Health The paper provides an update on ongoing wellbeing and prevention activity overseen and delivered by the HSCP Public Health Team in Argyll and Bute, specifically around two areas of work: the Health and Wellbeing Annual Report and the Living Well Mid-strategy report. A summary of each is provided below and the full reports can be accessed from - https://www.ablivingwell.org/resources-publications. Public Health Team Annual Report for 2021-2022 The Public Health Team in Argyll and Bute includes health improvement, health intelligence/data analysis and the Alcohol and Drug Partnership support team. An annual work plan sets out the work of the team and this is reported at the end of each year. Throughout 2021 – 2022 there were ongoing demands on the team to support the pandemic response; however there was an active remobilisation of core work and recognition of the important contribution the team makes to pandemic recovery as well as addressing the social determinants of health and prevention. The full report provides detail on the range of activity delivered; highlights of this work include: Overseeing the commissioning of Community Link Workers in primary care Cool2Talk online support for young people Smoking cessation Smoke free education in primary and secondary schools Contribution to strategic priorities such as Suicide Prevention action plan, the Child Poverty plan and the Social Mitigation strategy Screening inequalities research Youth mental health first aid training Health behaviour change training Income maximisation and child poverty work Type 2 diabetes, physical activity and health weight work Covid-19 health surveillance, testing and vaccination activity Pathway for residential rehabilitation for people with drug problems Implementation of treatment pathways for people with drug problems Naloxone training for those at risk of drug overdose Living Well Mid-Strategy Report for 2019 – 2021 Page 15 Agenda Item 4b
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The Argyll and Bute Living Well strategy is Argyll and Bute’s five-year self- management strategy and was launched in September 2019. It makes a commitment to support people living with long-term conditions and those at risk of developing them. The strategy focuses on supporting people to manage their own health and supporting communities to build groups and networks which can link people together. The Living Well Strategy was developed following extensive engagement and consultation with communities in Argyll and Bute. This included multiple focus groups, online Facebook discussions and questionnaires for members of the public, 3rd sector organisations and Argyll and Bute HSCP staff. This engagement resulted in a Living Well Implementation Plan which was aligned to the HSCP strategic intentions under four themes: People – People living in Argyll and Bute have the tools and support they need to support them to Live Well Community – There are a wide range of local services to support people to Live Well Workforce - Staff are able and motivated to support the people they see to Live Well Leadership – Effective Leadership is in place to support the delivery of the Living Well strategy There are a wide range of actions included under each of the above themes and the full strategy, engagement report and implementation plan can be downloaded from here - https://www.ablivingwell.org/living-well-strategy. In September 2022, the Living Well mid-strategy report was published. The report demonstrates the wealth of work undertaken by Living Well partners, the Living Well Networks and via the Living Well grant fund during the first 2.5 year. The interim report reflects on the challenges of the COVID-19 pandemic and looks ahead to the future of Living Well, including the next steps for ensuring that people living in our communities are supported to Live Well. Some of the highlights from the report include: HSCP Primary Care Link worker models scoped and developed for Argyll and Bute, with the Community Link Working service now available in a range of GP practices across Argyll and Bute. Further information available here - https://www.wearewithyou.org.uk/what-we-do/community-links/ Supported several self-management and pain events across Argyll and Bute Emotional wellbeing self-care tool developed and tested in partnership with ACUMEN, and subsequently funded for 1 year from the Living Well community capacity fund Health & Wellbeing Networks were rebranded as Living Well Networks and supported the Living Well Strategy by selecting a local priority from the Living Well Implementation Plan. There are 8 Living Well Networks supporting community capacity building in health and wellbeing across Argyll and Bute. Further information is available on page 4 of the Public Health Annual report - https://www.ablivingwell.org/s/Final-ABPH_Report2021-22.pdf or via https://www.ablivingwell.org/living-well-networks Page 16
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Living Well Community Capacity fund awarded £69,973 in 2019-2020 and £76,000 in 2020-2021 to projects and services which met the aims and outcomes of the Living Well strategy. Further details about these projects can be found in the report Increased access to physical activity, including virtual and new physical activity pathways between HSCP & 3rd sector developed Developed and managed the Emotional Support Service as part of a joint COVID-19 Caring for People response Three grants for mental health engagement activity awarded to inform local service development Virtual sessions held for healthy weight and Type 2 Diabetes Prevention and access to several digital apps increased Identified and promoted relevant training and development courses such as reflective practice and health behaviour change courses. Subsequently, five reflective practice sessions on person-centred care held across Argyll and Bute and a new model of NHS Education for Scotland Health Behaviour Change training was introduced. The full report can be accessed here - https://www.ablivingwell.org/resources- publications. REPORT AUTHOR AND CONTACT Author Names: Sam Campbell, (Interim Health Improvement Principal); Laura Stephenson and Jenny Dryden (Health Improvement Leads) Email nhsh.abhealthimprovement@nhs.scot Page 17
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Forestry and Land Scotland Land Management Plans (LMP) Carradale LMP- completed and will be submitted to Scottish Forestry for their approval beginning November. Beinn Ghuilean LMP- consultation process began. South Knapdale LMP- early stages of revision. Civil engineering works Rhonadale Bridge in Carradale has been installed and upgrade works in progress to provide operational access to management coupes. Several road maintenance projects underway following the wet summer and recent rainfall events. Phytophthora ramorum Multiple Statutory Plant Health Notices (SPHNs) issued and work actively ongoing to remove infected trees. Larch project work being undertaken to access all larch in the region and a management action plan being drawn up for each area. Environment Hazelnut collection in progress from rainforests. Peatland- desk studies and field peat probing work in progress to identify peatland areas for restoration, Environmental Impact Assessment (EIA) screening will be submitted to Scottish Forestry for all areas of restoration. Page 19 Agenda Item 4c
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ARGYLL & BUTE TSI The Scottish Government has confirmed that Year 2 funding for the Communities Mental Health and Wellbeing Fund will be £282,303. Two consultation events were held in September to review local and national priorities for the fund, an online application tool has been built linked to our database and the fund was formally opened locally on 17th October 2022. TSIs across Scotland and many partners have become increasingly concerned about the impact of the cost-of-living crisis on our communities and have been discussing campaigning about the impact of the crisis on both individuals and charities. The latter is mostly treated in the same way as commercial business in terms of energy costs etc. We have also offered the TSI hub as a space for community groups to meet instead of heating their own space and subject to further thought we are thinking of compiling a warm spaces list. This last quarter has seen the final build and population of the Argyll and Bute Community Directory which now contains over 1400 services across the region. Funding has been approved for the successor programme to the Young Person’s Guarantee – Argyll and Bute Positive Destinations – from the UK Shared Prosperity Fund. This will allow support for approximately 20 people per year and the beneficial group for pre- employment support via a mentor and a volunteering placement has been widened to other vulnerable groups. Further applications are in the pipeline and it is intended that 60 people per year will be supported. Government has asked that TSIs play a role in planning for the resettlement of Ukrainian Refugees. The scheme has accelerated rapidly and over 300 people have been settled in Argyll and Bute. Welcoming events supported by Argyll and Bute TSI staff continue to be held across Argyll and Bute. CEO is planning regular visits to groups in each of the four areas of Argyll and Bute. First visits took place June and July to Dunoon and Oban and Helensburgh was visited on 30th August 2022. Campbeltown visits are due to take place at the end of October. TSI is hosting a Volunteer Conference in Inveraray on 9th December 2022. Page 21 Agenda Item 4d
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Campbeltown Community Council – Update National Brass Band Championships of Great Britain Congratulations to Campbeltown Brass Band on becoming National Champions for their section at the recent Championships held in Cheltenham. Campbeltown Community Windfarm Fund, the charitable arm of the Community Council, was happy to provide funds to enable them to travel to Cheltenham. Flood Prevention Scheme CCC happy to see the works underway. Town Centre Traffic Management Local residents have expressed concern re car/van/commercial vehicles parking on Burnbank St, making pedestrian footpaths inaccessible, causing them to walk on the road. There was unanimous agreement that this situation, as has parking in other areas, has worsened since the introduction of the new traffic management system. Esplanade Still awaiting the resurfacing of this roadway – supposed to be at the back end of the year? Lack of dental health care There is now only one part time dentist delivering services in Campbeltown for NHS registered patients. Patients advised they can get appointments in sister practice in Lochgilphead. Unsatisfactory, but problem is shortage of dentists. Page 23 Agenda Item 4e
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Tarbert & Skipness Community Trust William Duncan and Co., The Old Surgery, School Road. Tarbert, PA29 6UL www.tsct.org.uk info@tsct.org.uk Charity Registration No. SC033379 Company Registration No. SC233786 Report Tarbert & Skipness Community Trust were saddened by the passing of Councillor John McAlpine, who had been in constructive contact with the Trust regarding housing developments in Tarbert. We welcome Councilor Alistair Redman and will soon be inviting all our local councillors to join a meeting of Tarbert & Skipness Community Trust to learn more about the work of the Trust. The Trust was delighted to learn that the new Strategic Housing Investment Plan has been published and includes 30 houses for Tarbert to be built by 2026. This will begin to alleviate pressure on all housing needs in Tarbert. Residents in Skipness have been surveyed regarding the new Community Plan, including the future of Skipness School. The Council has agreed to close the school and Skipness residents have until December to present any plan to the Council that they want to take forward. Residents in Tarbert have also responded to surveys on the new Community Plan Tarbert Life, our heritage project, has relocated to the Purple Doors on the quayside in Tarbert. Tarbert Life opened in time for the Seafood Festival in July and has had a steady flow of visitors over the summer. Over the winter volunteers will gather to plan the next stages of the exhibition for 2023. Page 25 Agenda Item 4f
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Centre for Economics and Business Research The socio-economic impact of CalMac ferry services: Phase 2 Report Page 27 Agenda Item 5
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Centre for Economics and Business Research Authorship and acknowledgements This report has been produced by Cebr, an independent economics and business research consultancy established in 1992, partnered with Connected Economics Ltd. The views expressed herein are those of the authors only and are based upon independent research by them. The report does not necessarily reflect the views of CalMac Ferries Ltd or the Ferries Community Board. Disclaimer Whilst every effort has been made to ensure the accuracy of the material in this document, neither Centre for Economics and Business Research Ltd, Connected Economics, nor the report’s authors will be liable for any loss or damages incurred through the use of the report. London, September 2022 Page 28
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Centre for Economics and Business Research Executive Summary Introduction This report was commissioned by CalMac and the Ferries Community Board to better understand the needs of ferry users, island communities, and the economic and social value of Hebridean and Clyde ferry services. The ultimate purposes of the research are to: • Identify island needs as part of an ongoing strategic conversation; • Help better reflect the value of service improvements to island communities; • Inform the ongoing debate about value for money from ferry expenditure; and • Provide information to help prioritise investment or plan services to deliver improved island outcomes. The project is divided into two Phases as follows: • Phase 1: Qualitative exploration of how ferry service characteristics are linked to island outcomes, based on a programme of virtual interviews with Community Board members, businesses, public service providers and residents across the network. The Phase 1 report can be found here. • Phase 2: Quantitative analysis of the impacts of CalMac as a company (employment, GVA, turnover, and employee compensation supported directly and through the supply chain) and of impacts of service levels on island communities (ferry users’ welfare, economic activity, employment, population), based on Phase 1 findings, desk research, analysis, fieldwork, and socio-economic modelling. This report is the outcome of Phase 2. Hebridean and Clyde ferry services operate in a very distinct context and are not a typical economic activity. Island life is reliant on ferry services, for: • Residents who need to access mainland services, employment, social and leisure opportunities. • Businesses and public services which move goods to and fro, generate business travel, and need access to visitors and staff. • Tourists who want to visit these distinctive locations, and who in doing so support island economies. In recent years, capacity and reliability challenges have become evident on parts of the network. These reflect the enormous and growing popularity of the islands as tourist destinations, residents’ changing needs for access to travel (for example as an ageing population needs to reach mainland health services), and increases in demand brought about by lower prices under RET – a popular policy, but one which has created pressure for capacity growth. Moreover, CalMac’s existing fleet is ageing, with associated growth in maintenance requirements. Page 29
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Centre for Economics and Business Research Scenarios The headline impacts estimated in this report are based on a comparison of two future scenarios for CalMac’s operations in 2032: • In the Optimistic scenario, an ambitious Vessel Replacement and Deployment Plan enables the growth and modernisation of the fleet and retirement of the oldest vessels, delivering capacity and reliability enhancements across the network. • In the Pessimistic scenario, only commitments already delivered or underway come to fruition: Hull 801 and Hull 802 enter service on the Ardrossan-Brodick and Uig Triangle routes respectively, and MV Loch Frisa joins the Oban-Craignure route. Meanwhile the fleet as a whole continues to age, reducing reliability in most of the network. Full specifications are detailed in the main report. CalMac’s economic footprint Direct, indirect, and induced impacts for CalMac’s operations between FY 2016-17 and FY 2020-21 were estimated. In the key analysis year of FY 2019-20, CalMac directly: • Generated £227.2 million in turnover, with an aggregate footprint of £350.6 million; a multiplier of 1.54. • Generated £95.8 million in Gross Value Added (GVA), with an aggregate impact of £162.9 million; a multiplier of 1.70. • Supported 1,513 FTE jobs, with a total of 2,527 across the economy; a multiplier of 1.67. • Supported £92.9 million in employee compensation, with a total of £127.5 million across the economy; a multiplier of 1.37. CalMac also supported significant business turnover and GVA across its network through provision of ferry services to business users. Table 1 summarises direct, indirect, and induced impacts under the future scenarios. Table 1. Aggregate national economic impacts, £m and FTE jobs, 2032 Metric 2032 Scenario Direct Impact Indirect Impact Induced Impact Aggregate Impact Turnover (£m) Optimistic £246.1 £65.0 £68.8 £379.9 Pessimistic £232.0 £61.3 £64.8 £358.0 GVA (£m) Optimistic £114.7 £34.2 £46.2 £195.1 Pessimistic £107.4 £32.0 £43.2 £182.6 FTE employment (jobs) Optimistic 1,819 556 664 3,039 Pessimistic 1,693 518 617 2,828 Employee Compensation (£m) Optimistic £112.7 £22.8 £19.2 £154.7 Pessimistic £104.8 £21.2 £17.9 £143.9 Source: CalMac, ONS, and Cebr analysis Page 30
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Centre for Economics and Business Research Socio-economic impacts Our socio-economic modelling of the two future scenarios estimated the following benefits associated with realisation of the Optimistic rather than Pessimistic scenario in 2032: • Annual passenger journeys 6.1% higher, at 6.1 million rather than 5.7 million. • Generalised cost savings to travellers of £67.7 million annually (15-year present value of £571.9 million1). These benefits mainly represent value of time savings from improved capacity, reliability, and frequency. o The biggest relative increases by journey purpose are for business and tourist travellers. o The biggest growth in absolute demand is for Ardrossan-Brodick, with almost 100,000 additional passenger journeys made. o Big reliability improvements also deliver large growth in passenger numbers for the Islay routes and routes out of Mallaig to Skye and the Small Isles. • The 172,000 additional tourist journeys are estimated to result in £13.8 million of additional tourism spending per year, resulting in over 200 more tourism jobs with associated earnings of £4.3 million. • Growth in freight journeys would support an additional 10 million bottles of whisky production (roughly half the current output of Islay’s largest distillery), associated with 46 jobs and £1.6 million of earnings. • Agglomeration benefits of £1.5 million per year and competition benefits of £1.2 million per year, directly increasing GVA. • 429 jobs (including the tourism/whisky jobs estimated separately), with an earnings impact of £11.9 million. • In 15-year present value terms, the combined value of generalised cost savings, agglomeration benefits, competition benefits, and earnings impacts is £695.0 million. • Over 1,000 additional island residents attracted by improved connectivity and quality of life – around 2% of the islands’ current population. 1 This present value figure and the £695.0 million figure including other benefits are for 2032-2046, so implicitly assume realisation of full benefits throughout this period. Caveats around these figures are explained more fully in the main report. Page 31
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Centre for Economics and Business Research Table of contents 1. Introduction .................................................................................................................... 1 The context and purpose of this study ............................................................................... 1 Anatomy of economic impacts ........................................................................................... 1 Study geography ............................................................................................................... 2 Future scenarios ................................................................................................................ 2 Report structure ................................................................................................................. 2 2. CalMac’s operations ...................................................................................................... 4 The route network ............................................................................................................. 4 Fleet and infrastructure ...................................................................................................... 4 Key activities ..................................................................................................................... 5 Levels of service provided ................................................................................................. 5 3. Current economic footprint of CalMac ............................................................................ 8 Direct economic impacts ................................................................................................... 9 National impacts ............................................................................................................................. 9 Regional impacts ........................................................................................................................... 13 Aggregate economic footprint of CalMac ......................................................................... 15 National impacts ........................................................................................................................... 15 Regional Impacts ........................................................................................................................... 19 - Lewis and Harris .................................................................................................................... 20 - Skye and Raasay .................................................................................................................... 20 - Bute ....................................................................................................................................... 20 - Mull and Iona ........................................................................................................................ 21 - Arran ..................................................................................................................................... 21 - Islay ....................................................................................................................................... 21 Downstream impacts ....................................................................................................... 22 The Northern Regions ................................................................................................................... 23 The Southern Regions ................................................................................................................... 23 4. Economic footprint under alternative scenarios ............................................................ 24 Methodology .................................................................................................................... 24 National impacts .............................................................................................................. 25 Regional impacts ............................................................................................................. 26 5. Connectivity: enabling island activities ......................................................................... 29 The role of Hebridean and Clyde ferry services ............................................................... 29 Model structure ................................................................................................................ 32 Headline results ............................................................................................................... 32 Page 32
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Centre for Economics and Business Research Breakdowns of core results........................................................................................................... 34 6. Supporting prosperity ................................................................................................... 37 Introduction ..................................................................................................................... 37 Impacts on key island industries ...................................................................................... 37 Supporting island tourism ............................................................................................................. 38 Growing the island whisky industry .............................................................................................. 40 Further economic impacts ............................................................................................... 42 Agglomeration .............................................................................................................................. 42 Competition .................................................................................................................................. 43 Employment .................................................................................................................................. 46 Attraction of key workers .......................................................................................... 47 Addressing population decline ......................................................................................... 47 A confident and secure island future ................................................................................ 50 Appendix: Sensitivity testing ................................................................................................ 51 Increased reliability benefits/disbenefits ........................................................................... 51 No exogenous demand growth ........................................................................................ 52 New Islay vessels in Pessimistic scenario ....................................................................... 53 Appendix: Islanders’ feedback ............................................................................................ 55 Appendix: List of consultees................................................................................................ 57 Appendix: Island GVA by broad sector ................................................................................ 60 Appendix: Full results tables ............................................................................................... 62 Bespoke Regional Multipliers .......................................................................................... 62 Type I Multipliers .......................................................................................................................... 62 Type II Multipliers ......................................................................................................................... 63 Regional Aggregate Economic Impacts ........................................................................... 64 Gross Value Added (GVA) ............................................................................................................. 64 Employment .................................................................................................................................. 65 Employee Compensation .............................................................................................................. 66 Page 33
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1 Centre for Economics and Business Research 1. Introduction The context and purpose of this study The Centre for Economics and Business Research (Cebr) and Connected Economics were commissioned by CalMac Ferries Ltd (CFL) and the Ferries Community Board to produce a study into the socio-economic impacts of the Hebridean and Clyde ferry services they provide across the west coast of Scotland. The focus of this study is: • An assessment of economic activity and employment directly generated by CalMac, and indirectly through its supply chain activities; and • An assessment of how the connectivity provided by CalMac supports islands’ prosperity, and how different levels of service could affect island development. The provision of ferries to island and remote mainland communities is not a ‘typical’ economic activity. It fundamentally enables island life and enables island businesses to operate. These impacts can be difficult to quantify but are undoubtedly important and include the policy benefits of sustainable island communities, social and cultural benefits of greater choice over where to live, and greater access to leisure, culture, and services. Our analysis considers both the wider economic value of improvements to services, and the wider economic costs of service limitations such as limitations in capacity or imperfect reliability. A Phase 1 study produced in late 2021 and published in early 2022 provided detailed qualitative insights, based on the project team’s desk research and online or telephone conversations with stakeholders across the network (mainly community representatives but also some businesses and public service providers). The Phase 1 report therefore details the impacts of the ferry services in a qualitative way and describes the island and remote mainland communities which depend on them. This report represents the output of the Phase 2 work, building on the Phase 1 report by quantifying socio-economic impacts for CFL services today, and for alternative future scenarios using input-output and socio-economic modelling. These draw on: • Further meetings, mainly with businesses, conducted either virtually or during two fieldwork trips in March and April 2022. • Passenger survey responses collected during fieldwork. • Financial and operational data provided by CFL. • Secondary desk research. Anatomy of economic impacts The aim of this study is to produce the most comprehensive and wide-ranging assessment possible of the economic impacts of Hebridean and Clyde ferry services provided by CFL. These can be categorised into: • Supporting impacts (further divided into direct, indirect, and induced) • Enabling impacts • Wider spillover impacts Figure 1 summarises these components, which reflect a progression from immediate impacts over which there is a high degree of certainty to broader impacts, which are less direct and sometimes harder to quantify – nevertheless it is these latter impacts which are most important in CFL’s lifeline role. Page 34
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2 Centre for Economics and Business Research Study geography The geographical area of interest for our study is the island and remote mainland locations served by CalMac. These can broadly be categorised as follows (key inhabited islands listed): • Outer Hebrides: Lewis and Harris, Uist (six islands, some linked by causeways, including North Uist, Benbecula, and South Uist), and Barra • Inner Hebrides: Skye, the Small Isles (Eigg, Muck, Rum, and Canna), Coll, Tiree, Mull, Iona, Lismore, Colonsay, Islay and Jura, Gigha • Clyde and South: Arran, Bute, Cumbrae, plus mainland locations in Kintyre and the Cowal and Rosneath peninsulas Future scenarios Our analysis estimates the impacts of CalMac today and for future scenarios which reflect different profiles for service provision, operations, reliability, and capacity. These are described in a separate section after the next chapter. Report structure This document reports our quantitative findings on the impacts of Hebridean and Clyde ferry services provided by CFL. It is structured as follows: • CalMac’s operations A brief overview of CalMac’s geographic scope, inputs, and outputs • Future scenarios Setting out the CalMac operational scenarios for which socio-economic impacts will be estimated Figure 1: Representation of CFL's total economic footprint Page 35
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3 Centre for Economics and Business Research • Current economic footprint of CalMac Direct, indirect, induced, and downstream impacts of CalMac today • Economic footprint under alternative scenarios Exploring impacts of different future ferry service patterns on economic footprint • Connectivity: enabling island activities Core outputs of the socio-economic modelling by scenario • Supporting prosperity Exploring further socio-economic impacts and drawing the research together • Appendices o Islanders’ feedback o List of consultees o Full results tables The Phase 1 report, which provides a detailed qualitative view, can be found here. Page 36
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4 Centre for Economics and Business Research 2. CalMac’s operations In this chapter we set out the basic structure of CalMac’s activities. We first briefly describe the places and routes served, before setting out the vessels, ports and other inputs and activities that are used to deliver these services. Finally, we sketch out the outputs that CalMac deliver with the current level of resources, including some basic information describing service frequencies, crossing times, capacity provided and reliability characteristics. This sets the stage for analysis in subsequent chapters where we explore the economic impacts of these operations and of the connectivity provided and explore how this could change under different future service development scenarios. The route network CalMac services are predominantly RORO ferries, able to carry foot passengers and a mix of all traffic including large commercial vehicles, though there are some exceptions and limitations. Services out of Gourock into Dunoon and Kilcreggan are passenger only, whilst for the Small Isles and Kerrera carriage of vehicles is available only for residents and essential services. As well as general vehicle services, the Ullapool-Stornoway route includes dedicated freight-only services. Oban serves as a major mainland hub, with services from there to Barra, South Uist (winter only), Lismore, Coll and Tiree, Mull, and Islay via Colonsay (continuing to Kennacraig on the mainland). Mallaig acts as a further hub, with services to Skye, the Small Isles, and South Uist. Other islands are generally connected to the mainland by one ferry connection, though in some cases multiple routes are available – for instance both Port Askaig and Port Ellen on Islay have services into Kennacraig, Mull has services to the Ardnamurchan peninsula as well as into Oban, and Arran has a seasonal service to Kintyre. There are also some island-to-island connections, for instance between Coll and Tiree, and between Uist and neighbouring Harris and Barra. For some smaller locations like Iona or Raasay, access to the mainland is via a larger neighbour only2. Finally, some routes connect one part of the mainland to another, including Kintyre and Cowal (Tarbert-Portavadie), and the seasonal service connecting Campbelltown to Ardrossan via Arran. Whilst CalMac is the dominant operator in the Hebrides and Clyde, there are also private and local authority-provided services. Like CalMac, Western Ferries runs a Gourock-Dunoon service – it offers poorer interchange with public transport but does carry vehicles. Council- operated services provide further connections, for instance between Islay and its neighbour Jura. Fleet and infrastructure CalMac currently operate a fleet of 34 vessels, ranging from the smallest – MV Carvoria, a 12 metre, 11 gross tonne landing craft which serves Kerrera, to the largest – MV Loch Seaforth, a 118 metre, 8,680 gross tonne RORO ferry with 376 lane metres of car deck space plus two hoistable mezzanine decks, serving the Ullapool-Stornoway route. Some vessels in the CalMac fleet are interoperable and the fleet is redeployed to provide a different service level 2 In the case of Raasay, only one ferry journey is required as Skye is connected to the mainland by a bridge as well as by the Mallaig-Armadale ferry service. Page 37
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5 Centre for Economics and Business Research during the quieter winter season when vessels go through their annual maintenance period. Vessels are also redeployed when relief cover is need – for example if there is a breakdown. Figure 2: Age profile of the CalMac fleet The average age of the fleet is now 24 years, with the oldest vessel in service (the MV Isle of Cumbrae) now 46 years old. The majority of vessels are now more than 20 years old, with implications for reliability and maintenance spend. Two large new ferries are due to be completed shortly to serve Arran and the Uig Triangle, allowing a vessel cascade which will benefit other routes. Further plans will see other new vessels added to the fleet over the coming years. These plans contribute to the scenarios that we have developed for future services described below. CalMac manage 19 harbours across their network and operate from 35 other ports which are managed by others. Key activities Roughly 1,200 of CalMac’s 1,900 staff serve on board vessels, with crews numbering as little as 2 on the smallest vessels and 30 or more on the largest. On major vessels, crew tend to follow weeks-on and weeks-off shift patterns and sleep on board. Other frontline staff manage arrivals and departures at ports. Over 70% of CalMac’s staff live in the island and coastal communities located around their network, and competitive pay and conditions make them a desirable employer, with staff often serving long tenures at the company. CalMac’s Gourock headquarters employs over 300 staff including management functions and customer call centre. Levels of service provided With the vessels, port infrastructure, staff and other resources available to them CalMac had scheduled 147,000 sailings in 2021. Different routes operate quite different frequencies with shorter routes tending to have much more frequent sailings. For instance, on the current summer 2022 timetable: • Sailings between Largs and Cumbrae Slip (a 10-minute journey) depart as often as every 15 minutes on peak days, and every 30 minutes on off-peak days. • 4 or 5 sailings per day in each direction are scheduled between Kennacraig and Port Askaig or Port Ellen on Islay (journey times are between 115 and 140 minutes). • On the 285-minute journey between Oban and Castlebay on Barra, there is just one sailing per day in each direction (with a second via Coll and Tiree on Wednesdays). Page 38
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6 Centre for Economics and Business Research Destinations with smaller populations also tend to see less frequent services. The Small Isles, for example, together get a daily service but each of the individual islands sees a complex timetable with opportunities to travel to or from the mainland around four days per week on average, and with connections between different island pairs on different days. Overall, around 96% of services operate as planned. Shorter crossings are usually more reliable as they tend to be more sheltered with less complex operational considerations. Reliability is generally lower on services with longer journey times – particularly as these crossings are often exposed to heavy Atlantic swells and strong winds. Disrupted sailings on longer and more remote routes are likely to have a larger impact on travellers because there are fewer service alternatives; for instance, whilst a journey within the mainland (or between the mainland and Skye) can be replaced by a longer car journey, travellers needing to get to the mainland from remote islands may have to wait a day or more for another sailing, or fly at considerable expense. Figure 3 shows how journey times, reliability, and frequency interact. Figure 3: Properties of sailings split by journey time group, 2021 Fares are set by Transport Scotland. For most passengers these are based on the Road Equivalent Tariff (RET) which had been rolled out across the network by 2018. Reduced fares following RET have boosted demand on most routes – a Transport Scotland study estimated that in 2018 RET had increased total passenger carryings by 11.6% and car carryings by 20.6%3. Freight and coach fares are set separately. On parts of the network, capacity pressures are evident and securing a booking can at times be difficult. This reflects the popularity of island locations for holidaymakers, freight demands to serve households and businesses, increased demand under RET, and delays in the arrival of new capacity. Whilst booking as a foot passenger is almost always possible, many travellers do need to bring a vehicle – either because they are transporting freight or equipment, or because public transport options are sparse – so vehicle deck capacity is the constraint. For island residents, this can mean an inability to plan at short notice for social, leisure, work, or medical travel, especially in the busy summer months. 3 Evaluation of Road Equivalent Tariff on the Clyde and Hebridean Network, Transport Scotland, March 2021. Chapter 3, How did this change travel behaviour?. Link. Page 39
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7 Centre for Economics and Business Research Future scenarios Two scenarios for CalMac operations in 2032 are considered in our modelling. The first reflects the results of an ambitious investment programme, and the second reflects the meeting of existing commitments only, with much of the fleet continuing to age. In both scenarios, common assumptions on underlying or exogenous demand growth relative to today’s baseline are made. These scenarios drive different levels of turnover and employment in the economic impact analysis, and different levels of user benefits and wider benefits in the socio-economic analysis. Optimistic scenario In this scenario, an ambitious Vessel Replacement and Deployment Plan enables significant growth of the fleet through new vessel construction, with retirement of some of the oldest major and minor vessels. • Hull 801 (Glen Sannox) and Hull 802 enter service on the Ardrossan-Brodick route and Uig Triangle respectively • Two new Islay vessels enter service in response to continued rapid growth in demand generated by the whisky industry and associated tourism • Cascade of other major vessels across network enabled by addition of MV Loch Frisa to Oban-Craignure route • Oldest vessels (major and minor) across network replaced with new, larger alternatives • Infrastructure enhancements, focused on those ports which frequently experience harbour-related disruptions • Increased digitisation and streamlining of booking and marshalling systems This ambitious programme would enable significant improvements in capacity, reliability, and frequency on those routes benefitting from new vessels – but not just on those routes. Under this scenario, the average age of the fleet falls from 24 years to just under 18. Some spare vessels are also assumed, increasing redundancy through having at least one in hot lay-up, and improved interoperability. Therefore, reliability and effective capacity would be improved across the network, especially for those non-lifeline routes which frequently lose their service in response to disruption elsewhere. On selected routes receiving new vessels, investments support timetabling and service development, enabling longer days on the mainland (which benefits business and commuting travellers in particular). Pessimistic scenario This scenario sees much more limited improvements, based on commitments already delivered or underway. The two new Islay vessels are not included – though given that contracts have been signed it is highly unlikely they will not be delivered. • Hull 801 (Glen Sannox) and Hull 802 enter service on the Ardrossan-Brodick route and Uig Triangle respectively • Addition of MV Loch Frisa to Oban-Craignure route, cascade of MV Coruisk to Mallaig- Armadale Whilst the addition of new vessels provides welcome capacity uplifts on certain routes, the generalised reliability improvements seen in the Optimistic scenario are not realised. The continued ageing of the fleet (from 24 years on average to 32) and lack of new investment in harbour infrastructure leads to worsening of reliability and therefore effective capacity. Page 40
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8 Centre for Economics and Business Research 3. Current economic footprint of CalMac Our starting point is to identify the contributions directly made by CalMac to the Scottish economy. Our analysis considered four key performance indicators: • Turnover – This represents the business revenue generated by CalMac. • Gross Value Added (GVA) – While turnover captures the entire cost of sales and provides an indication of the size of CalMac’s operations in Scotland, GVA contributions represent the ‘value-added’ to the economy by CalMac. In this report, we take the income approach to estimating GVA and define it as the total compensation paid to employees plus total operating profit. Subsidies (where not already recorded as an income source) are added in, on the logic that they are paid to induce a societally desirable outcome, generating at least the monetary value of the subsidy paid. For taxes on products for which the reverse is true, this tax is subtracted. GVA is also commonly known as income from production and is distributed in three directions – to employees, to shareholders and to government. It is often used as a proxy for estimating the contribution of a firm or industry to GDP. • Employment – Refers to the number of workers employed by CalMac. We typically present results as full-time equivalent (FTE) employees. FTE refers to the hours worked by one employee who is employed on a full-time basis and is used to standardise the hours worked by several part-time employees to one full-time worker. This is important for comparisons across industries or businesses, where the share of employees who work full-time varies. • Employee Compensation – Refers to the total compensation paid to employees in return for work done. This includes wages, benefits and employer pension and tax liabilities. In the following sub-section, we present results both on a national basis for Scotland as a whole, plus results on a more granular basis for 16 individual islands or island groups that are served directly by CalMac. Page 41
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9 Centre for Economics and Business Research Direct economic impacts National impacts While the key analysis year is for FY 2019-20, this sub-section details the direct economic impacts of CalMac across the Scottish economy at a national level between FY 2016-17 and FY 2020-21. Turnover Figure 4 illustrates the turnover that was directly generated by CalMac between FY17 and FY21, with the share of total revenue attributable to passenger fares highlighted for each year. Figure 4. Direct turnover of CalMac, £m, FY17 to FY21 Source: CalMac and Cebr analysis The direct turnover generated by CalMac increased consistently from FY17 to FY20, reaching a peak of £227.2 million in FY20, equivalent to a 16.9% rise from the start of the observation period (or an absolute increase of £32.8 million). However, for the year ending March 2021, direct turnover generated by CalMac fell by £26.3 million (-11.6%) compared to FY20 as travel was restricted due to Covid-19. As can be seen from Figure 4, prior to the Covid-19 pandemic, the share of total turnover that was generated by farebox revenue was relatively consistent at between 26% and 27%. The impact of the Covid-19 disruption is evident here through a decrease in total farebox revenue to £31.4 million in FY21 from £58.2 million in FY20, a 46.1% fall. Gross Value Added (GVA) Figure 5 illustrates the direct GVA contributions made by CalMac to the Scottish economy between FY17 and FY21. 26% 26% 27% 26% 16% £194.4 £208.9 £210.0 £227.2 £200.9 £0 £50 £100 £150 £200 £250 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Farebox Share Total Turnover Page 42
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10 Centre for Economics and Business Research Figure 5. Direct GVA contributions of CalMac, £m, FY17 to FY21 Source: CalMac and Cebr analysis As was seen for turnover, GVA increased consistently between FY17 to FY20, reaching a peak of £95.8 million in FY20, equivalent to a 20.7% rise from the start of the observation period (or an absolute increase of £16.4 million). Again, in the year ending March 2021, direct GVA contributions of CalMac fell. Here, the £3.9 million fall compared to FY20 levels represented a -4.1% contraction in direct value adding contributions to the Scottish economy. In order to provide some contextualisation for the scale of CalMac’s direct GVA contributions to the Scottish economy, we present some analysis comparing the GVA of CalMac to a range of other industries. Regarding sectors that are most closely aligned with CalMac’s activities, 38% of the GVA generated by the total water transport sector was attributable to CalMac in FY 2019-20. Further, in the same year, the entire air transport sector generated £416.1 million of GVA. To put this in perspective, the scale of this activity was approximately 4.3 times the size of CalMac’s direct GVA contributions. Figure 6 visualises some further context by comparing the GVA of CalMac to other sectors in the Scottish economy in FY 2019-20. These sectors are chosen as they reflect similarly sized industries in comparison to the magnitude of CalMac’s direct GVA contribution. As illustrated, CalMac contributes more in GVA than the manufacture basic metals and manufacture of furniture sectors, while the company is roughly equal in its GVA contribution to the Scottish economy as the whole of the crop and animal production, hunting and related service activities sector as well as the activities of membership organisations sector. Figure 6. CalMac GVA compared to selected other industries, £m, FY 2019-20 Source: CalMac, ONS, and Cebr analysis £79.4 £83.0 £88.5 £95.8 £91.9 £0 £20 £40 £60 £80 £100 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 £95.8 £96.3 £56.5 £82.6 £188.7 £95.9 £0 £20 £40 £60 £80 £100 £120 £140 £160 £180 £200 CalMac Crop and animal production, hunting, and related activities Manufacture basic metals Manufacture of furniture Forestry and logging Activities of membership organisations Page 43
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11 Centre for Economics and Business Research Employment Figure 7 illustrates the direct employment contributions made by CalMac between FY17 and FY21 to the Scottish economy. Figure 7. Employment contributions of CalMac, FTE jobs, FY17 to FY21 Source: CalMac and Cebr analysis Unlike the other direct impact metrics, on an FTE basis, the employment contributed by CalMac to the Scottish economy increased monotonically over the observation period, from 1,358 FTE workers to 1,537, an increase of 178 (13.1%). The average growth rate of FTE jobs between FY17 and FY21 was 3.1% on a year-on-year basis. This increase in FTE employment from FY17 and FY21 outstrips wider FTE employment growth in Scotland’s labour market, which grew at an average of 0.3% year-on-year over the same period. While year-on-year FTE employment growth in the wider industry for transportation and storage (SIC H), increased by 0.4% in that same period. Figure 8. Productivity (GVA per FTE) and productivity growth, £, FY17 to FY21 Source: CalMac, ONS, and Cebr analysis 1,358 1,427 1,471 1,513 1,537 0 400 800 1,200 1,600 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 £58,431 £58,172 £60,214 £63,329 £59,790 85 90 95 100 105 110 115 £52,000 £54,000 £56,000 £58,000 £60,000 £62,000 £64,000 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Productivity Index (FY17 = 100) Productivity, £ CalMac GVA per FTE, £ CalMac Productivity Industry Productivity Page 44
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12 Centre for Economics and Business Research CalMac productivity, in terms of GVA per FTE, fluctuates across the period. Initially, there was a 0.4% decline in productivity in FY 2017-18 from a starting point of £58,431, fuelled by the increase in the number of CalMac employees outstripping the growth in GVA in the same year. However, the year-on-year productivity growth was 3.5% and 5.2% in the subsequent years, with peak CalMac productivity in FY 2019-20 at £63,329, followed by a sharp decline in FY 2020-21 following the restrictions imposed as a result of the Covid-19 pandemic. Compared to the wider productivity of the wider transportation and storage industry, at the start of the period, industry productivity growth outpaced the productivity growth of CalMac. Nevertheless, in the year prior to the pandemic, CalMac productivity grew by 5.2% while the wider transportation and storage industry productivity grew by just 1.9%. The Figure also shows that CalMac was able to better weather the impact of the pandemic compared to the rest of the industry, with CalMac productivity falling by 5.6% compared to a 21.7% fall across the rest of the industry. Employee Compensation Figure 9 illustrates the total amount paid in employee compensation by CalMac. Figure 9. Employee compensation paid to workers in CalMac, £m, FY17 to FY21 Source: CalMac and Cebr analysis The total compensation paid rose by £18.5 million from FY17 to FY2019-20, an increase of 24.9%. The total increase occurred gradually over this period, with year-on-year growth averaging £6.2 million per year. In line with turnover and GVA, there was also a drop in employee compensation between FY20 and FY21. The observed fall is a decrease of £6.7 million (-7.2%) for the year. However, with the exception of FY20, the FY21 total remains above all other years in the observation period. Given that the number of workers in CalMac has also been fluctuating, it is a more meaningful annual comparison to consider the average compensation paid per FTE employee. Figure 10 presents our results. £74.4 £78.3 £83.7 £92.9 £86.2 £0 £10 £20 £30 £40 £50 £60 £70 £80 £90 £100 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Page 45
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13 Centre for Economics and Business Research Figure 10. Average compensation paid per FTE worker in CalMac, £, FY17 to FY21 Source: CalMac and Cebr analysis In nominal terms, the average compensation paid per FTE employee in CalMac increased by £1,353 (2.5%) across the whole period, from £54,742 in FY17 to £56,095 in FY21. However, this increase in compensation did not occur consistently. Overall, employee compensation has increased over the period considered on both a total and per FTE level, however compensation per FTE peaked in FY20 at £61,383, the last full pre-Covid year. Regional impacts This sub-section details the aggregate economic footprint of CalMac in FY2019-20 at a regional level, with full results across all 16 islands and island groups analysed as a part of this study. Table 2 presents full results for the direct economic impact across the 16 island regions assessed in this report. In terms of FTE jobs for FY2019-20, employees living in these 16 regions accounted for approximately 27.8% of CalMac employment in Scotland. While in GVA and employee compensation terms, these 16 regions accounted for an estimated 37.3% and 31.6% of the total direct impact in Scotland, respectively. £54,742 £54,839 £56,897 £61,383 £56,095 £0 £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Page 46
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14 Centre for Economics and Business Research Table 2. Direct economic impacts for 16 island regions, £’000 and FTE jobs, FY 2019-20 Direct impact Island Region GVA (£'000) Employment (FTE jobs) Employee Compensation (£'000) Coll and Tiree Argyll and Bute £1,268 14 £1,012 Mull and Iona Argyll and Bute £3,249 36 £2,594 Kerrera and Gallanach Argyll and Bute £238 3 £190 Jura and Colonsay Argyll and Bute £475 5 £380 Islay Argyll and Bute £2,219 25 £1,771 Gigha4 Argyll and Bute £396 4 £316 Bute Argyll and Bute £3,249 36 £2,594 Barra Na h-Eilean Siar £4,067 42 £3,147 Eriskay and South Uist Na h-Eilean Siar £3,050 32 £2,360 Benbecula Na h-Eilean Siar £593 6 £459 North Uist Na h-Eilean Siar £1,610 17 £1,246 Lewis and Harris Na h-Eilean Siar £11,691 122 £9,048 Small Isles Highlands £155 3 £157 Skye and Raasay Highlands £2,225 38 £2,256 Arran North Ayrshire £1,111 34 £1,692 Great Cumbrae North Ayrshire £85 3 £130 Source: CalMac, BRES, ONS, and Cebr analysis The direct impacts across the Outer Hebrides are the largest within the assessed sample. The single island region with the largest impact was Lewis and Harris. In terms of FTE employment, the 122 jobs outstripped the next largest island, Barra, almost three-fold. This trend is reflected in both the direct GVA and employee compensation contributions by CalMac, with Lewis and Harris accounting for approximately one third of the total in-scope regional direct impacts. The remaining islands are part of the broader regions that make up the Inner Hebrides and the Islands of the Firth of Clyde. Within the narrower Highlands and North Ayrshire regions, Skye and Raasay and the Isle of Arran respectively dominate as the largest centres of CalMac’s direct economic activity. In Argyll and Bute, the direct impacts are more widely distributed, with CalMac contributing over £1 million of direct GVA in Coll and Tiree, Mull and Iona, Islay, and Bute. 4 The Gigha island group is defined by the 2011 Datazone S01007329. In geographic terms, this covers the island of Gigha, plus a portion of the western Kintyre Coast that is directly adjacent to and south of the island. Page 47
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15 Centre for Economics and Business Research Aggregate economic footprint of CalMac The wider footprint supported by CalMac is not constrained to the above direct impacts alone. Our approach conceptualises two further impact layers: indirect impacts and induced impacts. • Indirect impacts – CalMac place demands on their upstream supply chains, purchasing goods and services they need for operations. This supports further demand along supply- chains, and output and jobs amongst their suppliers. In turn, these suppliers place demands on their suppliers which supports further output and jobs. The indirect impact captures the revenue, GVA, employment and employee compensation supported along the supply-chains because of these operations. • Induced impacts – The workers who receive income and employment benefits through the direct (CalMac employees) and indirect (the suppliers to the sector and in turn their suppliers) channels spend their increased earnings on goods and services in the wider economy. This helps to further stimulate demand, supporting additional turnover, GVA, employment and employee compensation. The induced impact captures these wider- spending effects. Summing these direct, indirect, and induced impact layers allows us to estimate the aggregate footprint supported by CalMac in Scotland. Our approach is summarised below in Figure 11. Figure 11. Summary of economic impact layers National impacts In this sub-section, we will present results for the aggregate economic footprint of CalMac across the Scottish economy for the key analysis year, FY 2019-20. First, Table 3 presents the multipliers used to calculate the indirect and induced (and hence aggregate) effects from the direct CalMac economic impacts. For each of the below metrics, the multipliers highlight how a unit change in CalMac’s direct impacts will affect the economy as a whole. Page 48
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16 Centre for Economics and Business Research Table 3. Bespoke national multipliers for CalMac, Type I and II. National Multipliers5 Type I Multipliers – Indirect Impacts Type II Multipliers – Induced Impacts Turnover 1.26 1.54 GVA 1.30 1.70 FTE employment 1.31 1.67 Employee Compensation 1.20 1.37 Source: CalMac, ONS, and Cebr analysis Turnover CalMac directly generated an estimated £227.2 million in turnover in FY 2019-20. Through our input-output modelling, we estimate that this direct turnover supports an additional £60.0 million worth of turnover along the supply-chains (the indirect effect). Furthermore, it is estimated that the increase in wider-spending that occurs when CalMac employees (and the employees supported along the supply-chains) spend their earnings in the wider economy supports £63.5 million (the induced effect). Combining these direct, indirect, and induced impacts, it is estimated that CalMac supports an aggregate footprint of £350.6 million in turnover. The effects of the additional indirect and induced impacts are set out below, in Figure 12. Figure 12. Turnover multiplier results, £m, FY 2019-20 Source: CalMac, ONS, and Cebr analysis They should be interpreted as follows. For every £1 in turnover directly generated by CalMac, a further £0.26 of turnover is supported in firms along their supply chains. Furthermore, £0.28 of turnover is supported in Scottish businesses when individuals associated with the direct and indirect impact layers spend their earnings in the wider economy. Summing the indirect 5 For comprehensive definitions and practical illustrations of the multipliers for output, GVA, employment, and income, see the following publication from the Scottish Government. Page 49
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17 Centre for Economics and Business Research and induced layers together, we can say that for every £1 of turnover directly generated by CalMac, a further £0.54 worth of turnover is supported in the wider economy. Gross Value Added (GVA) In FY 2019-20, CalMac directly generated £95.8 million in Gross Value Added (GVA) contributions. It is estimated that a further £28.5 million worth of GVA contributions are supported along the supply-chains (the indirect effect) and £38.6 million is supported when CalMac employees (and employees along their supply chains) spend their earnings in the wider economy. The effects of these additional indirect and induced impacts are set out below, in Figure 13, leading to an aggregate impact of £162.9 million. Figure 13. Gross Value Added multiplier results, £m, FY 2019-20 Source: CalMac, ONS, and Cebr analysis Once again, it is possible to generalise this result by considering the ratios between the direct, indirect and induced impact layers. For every £1 in GVA directly generated by CalMac in the Scottish economy, a further £0.70 is supported through the indirect and induced impact channels. Employment In FY 2019-20, CalMac directly supported 1,513 jobs. Figure 14 illustrates our calculated employment multipliers for CalMac. Page 50
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18 Centre for Economics and Business Research Figure 14. FTE employment multiplier results, FTE jobs, FY 2019-20 Source: CalMac, ONS, and Cebr analysis The modelling shows that for every FTE job directly generated by CalMac, a further 0.31 jobs are supported along their supply chains. Moreover, a further 0.36 FTE jobs are supported when employees associated with the direct and indirect impact layers spend their earnings in the wider economy. By combining the indirect and induced impact layers, our modelling shows that for every FTE job directly generated by CalMac, a further 0.67 jobs are supported in the wider Scottish economy. Overall, on an FTE basis 2,527 jobs are supported across the economy. Employee Compensation Finally, we are interested in the aggregate compensation of employees supported by CalMac across Scotland. In FY 2019-20, total direct employee compensation was £92.9 million, while the aggregate impact totalled £127.5 million. The effects of the additional indirect and induced impacts are set out below, in Figure 15. Figure 15. Employee compensation multiplier results, £m, FY 2019-20 Source: CalMac, ONS, and Cebr analysis Page 51
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19 Centre for Economics and Business Research In addition to the direct impact, we estimate that the indirect and induced economic activity that is supported by CalMac, supports an additional £34.7 million of employee compensation in the wider economy. Hence, for every £1 of employee compensation directly generated by CalMac, a further £0.37 of compensation is supported through the indirect and induced impact channels across the Scottish economy. Regional Impacts This sub-section details the aggregate economic footprint of CalMac in FY2019-20 at a regional level, with selected results presented for six of the larger regions by aggregate impact. For a full breakdown of all multipliers used to calculate the regional aggregate economic impacts, see the appendices to this document. Also within the appendices, Table 33 details the aggregate economic impact for FTE employment as well as figures for the share of total island employment that is supported by CalMac’s economic footprint. This statistic provides useful contextualisation regarding the relative importance of CalMac in supporting economic activity in small, remote areas. Figure 16. Direct FTE employment contributions by CalMac across 16 island groups, FTE jobs, FY20 Source: CalMac and Cebr analysis From Table 2 as well as Figure 16 above, it is evident that there is not an equal distribution across the assessed regions in terms of direct FTE employment contributions by CalMac. The economy and population for a number of these regions is very small, hence, so too are the respective aggregate economic impacts of CalMac. For the brevity of the main report, we will highlight six of the largest island regions that span the length of the Clyde and Hebridean network; Lewis and Harris, Skye and Raasay, Bute, Mull and Iona, Arran, and Islay. Full results across all 16 islands and island groups analysed in this study have been tabulated and presented in the appendices. 3 3 3 4 5 6 14 17 25 32 34 36 36 38 42 122 0 20 40 60 80 100 120 140 Kerrera and Gallanach Small Isles Great Cumbrae Gigha and Kintrye Coast Jura and Colonsay Benbecula Coll and Tiree North Uist Islay Eriskay and South Uist Arran Mull and Iona Bute Skye and Raasay Barra Lewis and Harris Page 52
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20 Centre for Economics and Business Research - Lewis and Harris In FY 2019-20, 1 in every 52 jobs (1.9%) in Lewis and Harris was supported by CalMac's aggregate economic footprint in the region. Table 4. Aggregate economic footprint of CalMac in Lewis and Harris, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £11,691 £1,574 £1,618 £14,883 FTE employment (jobs) 122 17 27 167 Employee compensation (£’000) £9,048 £854 £844 £10,746 Source: CalMac, ONS, and Cebr analysis For every £1 of GVA directly generated by CalMac in Lewis and Harris, a further £0.27 of GVA is supported in the region's wider economy. For every FTE job directly generated by CalMac in Lewis and Harris, a further 0.4 FTE jobs are supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Lewis and Harris, a further £0.19 worth of compensation is supported in the region's wider economy. - Skye and Raasay In FY 2019-20, 1 in every 109 jobs (0.9%) in Skye and Raasay was supported by CalMac's aggregate economic footprint in the region. Table 5. Aggregate economic footprint of CalMac in Skye and Raasay, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £2,225 £32 £568 £2,824 FTE employment (jobs) 38 1 10 48 Employee compensation (£’000) £2,256 £21 £321 £2,598 Source: CalMac, ONS, and Cebr analysis For every £1 of GVA directly generated by CalMac in Skye and Raasay, a further £0.27 of GVA is supported in the region's wider economy. For every FTE job directly generated by CalMac in Skye and Raasay, a further 0.3 FTE jobs are supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Skye and Raasay, a further £0.15 worth of compensation is supported in the region's wider economy. - Bute In FY 2019-20, 1 in every 46 jobs (2.2%) in Bute was supported by CalMac's aggregate economic footprint in the region. Table 6. Aggregate economic footprint of CalMac in Bute, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £3,249 £266 £411 £3,926 FTE employment (jobs) 36 3 7 46 Employee compensation (£’000) £2,594 £161 £233 £2,987 Source: CalMac, ONS, and Cebr analysis Page 53
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21 Centre for Economics and Business Research For every £1 of GVA directly generated by CalMac in Bute, a further £0.21 of GVA is supported in the region's wider economy. For every FTE job directly generated by CalMac in Bute, a further 0.3 FTE jobs are supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Bute, a further £0.15 worth of compensation is supported in the region's wider economy. - Mull and Iona In FY 2019-20, 1 in every 33 jobs (3.0%) in Mull and Iona was supported by CalMac's aggregate economic footprint in the region. Table 7. Aggregate economic footprint of CalMac in Mull and Iona, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £3,249 £28 £464 £3,742 FTE employment (jobs) 36 0 8 44 Employee compensation (£’000) £2,594 £12 £263 £2,868 Source: CalMac, ONS, and Cebr analysis For every £1 of GVA directly generated by CalMac in Mull and Iona, a further £0.15 of GVA was supported in the region's wider economy. For every FTE job directly generated by CalMac in Mull and Iona, a further 0.2 FTE jobs were supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Mull and Iona, a further £0.11 worth of compensation was supported in the region's wider economy. - Arran In FY 2019-20, 1 in every 51 jobs (2.0%) in Arran was supported by CalMac's aggregate economic footprint in the region. Table 8. Aggregate economic footprint of CalMac in Arran, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £1,111 £40 £329 £1,480 FTE employment (jobs) 34 1 6 41 Employee compensation (£’000) £1,692 £37 £186 £1,916 Source: CalMac, ONS, and Cebr analysis For every £1 of GVA directly generated by CalMac in Arran, a further £0.33 of GVA is supported in the region's wider economy. For every FTE job directly generated by CalMac in Arran, a further 0.2 FTE jobs are supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Arran, a further £0.13 worth of compensation is supported in the region's wider economy. - Islay In FY 2019-20, 1 in every 61 jobs (1.6%) in Islay was supported by CalMac's aggregate economic footprint in the region. Page 54
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22 Centre for Economics and Business Research Table 9. Aggregate economic footprint of CalMac in Islay, FY 2019-20 Direct Impact Indirect Impact Induced Impact Aggregate Impact GVA (£’000) £2,219 £41 £299 £2,559 FTE employment (jobs) 25 1 5 30 Employee compensation (£’000) £1,771 £20 £169 £1,960 Source: CalMac, ONS, and Cebr analysis For every £1 of GVA directly generated by CalMac in Islay, a further £0.15 of GVA is supported in the region's wider economy. For every FTE job directly generated by CalMac in Islay, a further 0.2 FTE jobs are supported in the region's wider economy. For every £1 of employee compensation paid to CalMac employees in Islay, a further £0.11 worth of compensation is supported in the region's wider economy. Downstream impacts To this point, the economic analysis has focused on CalMac’s upstream supply chain6, which allows us to calculate the company’s aggregate contribution to the economy. However, CalMac also feeds into a “downstream” supply chain, whereby CalMac services are used by firms and industries to transport goods off-island to be sold and distributed from the mainland, for example. Subsequently, other firms use these goods as inputs into their own business activities where additional value is added before being sold to final consumers in either domestic or international markets. Using supply-use tables, we can trace the transmission of CalMac to other parts of the economy and estimate the value added that CalMac may facilitate through its role in suppling intermediate services to other firms. This only considers the value-added through firms purchasing CalMac services, not of private consumption.7 In this subsection, we will break these results down into two broad geographic groups8: o The Northern Regions – The Outer Hebrides and the Highlands including the mainland areas of Morvern, Malliag, Ullapool and Oban. o The Southern Regions – Argyll & Bute and North Ayrshire. This also includes the mainland regions of Ardrossan (and Saltcoats), Largs, Cowall and Dunoon, Kintyre, Campbeltown and Oban. It should also be noted that while the downstream impacts are not necessarily causal, the facilitation layer does provide an important indication of the value contribution of CalMac through its economic associations. 6 Defined as purchases of goods and services by CalMac from other firms to supply its own service 7 For example, an employee commuting to work who pays for his own trip on a CalMac ferry would not be included within this calculation. However, an employee travelling for work where the firm pays for the ferry ticket would be included. 8 Note that we include the mainland area of Oban within both regions. This is because it has ferry routes operating to the Outer Hebrides as well as many of the Southern Islands. As a result, it is not appropriate to sum the results from each geography to produce a single downstream impact for CalMac without appropriately accounting for the double counting of Oban. Page 55
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23 Centre for Economics and Business Research The Northern Regions The headline results of this analysis are as follows: • In FY 2019-20, CalMac supported £16.9 million of business turnover in the region’s wider economy, where firms relied on CalMac services in their production of final goods and services. • This turnover supported £7.1 million of GVA on a downstream basis, across the Northern Regions’ economy. The Southern Regions The headline results of this analysis are as follows: • In FY 2019-20, CalMac supported £10.0 million of business turnover in the region’s wider economy, where firms relied on CalMac services in their production of final goods and services. • This turnover supported £4.4 million of GVA on a downstream basis, across the Southern Regions’ economy. Page 56
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24 Centre for Economics and Business Research 4. Economic footprint under alternative scenarios To this point, we have produced analysis focussed on FY 2019-20. However, in the following section, we estimate the economic footprint of CalMac in 2032 under two forward-looking investment scenarios. Methodology The first of the two alternative scenarios reflects the impact of an optimistic investment programme, while the second reflects a more pessimistic scenario with investment levels meeting existing commitments only, while much of the fleet continues to age. These scenarios drive different levels of turnover and employment in the economic impact analysis, with the results presented below. To estimate the direct economic impacts at both a national and regional level, 2032 impacts have been estimated relative to a 2022 baseline for the key metrics. All results are in real terms based upon constant 2022 prices. • Turnover has been scaled proportionally to changes in passenger demand in 2032 versus 2022. • Full-time equivalent (FTE) employment is estimated based upon an ordinary least squares regression model that estimates a best-fit relationship between crew requirements and total network capacity (in terms of total passengers and car deck space). We are then able to estimate the required percentage increase in crew required under each investment scenario compared to 2022 levels based upon estimated network capacity in 2032. From this, an uplift to vessel staff is applied to produce a real FTE employment estimate under each scenario, with the staffing requirements for total head office and port staff held constant. • In real terms, compensation of employees (COE) is estimated based upon a nowcast of average COE per FTE for CalMac employees in 2022. Then, to estimate a total company-wide employee compensation figure in 2032, this per-FTE value is applied to the forecasted number of FTE employees in 2032 under each scenario. • Finally, gross value added (GVA) is triangulated by estimating the implied value- added figure through two approaches. Firstly, we use the average GVA-to-turnover ratio over the last five years, but this leads to the implied GVA figure being lower than total COE. The implication of this is that CalMac would be running an operating loss, a prediction that is not consistent with the trends seen in recent management account data. To recalibrate for this, the structure of CalMac over the last 5 years has seen total employee compensation account for an average of 95% of total GVA. Therefore, we have assumed that this relationship will be maintained and combine the turnover- linked estimate of GVA with a GVA estimate based on the average COE as a share of GVA over the last 5 years. These two methodologies are combined to produce a final estimate for gross value-added in 2032. Finally, to produce the indirect, induced, and aggregate economic impact layers, we have held the previously calculated bespoke multipliers constant, with only the direct economic impacts adjusting under each scenario. Page 57
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25 Centre for Economics and Business Research National impacts Before the results are presented, it should be stressed that the impacts are not limited to these financial and economic impacts. Additional welfare is generated through wider social and economic channels. Further details of these additional socioeconomic impacts are presented in 5. Connectivity: enabling island activities and 6. Supporting prosperity In addition, these figures are single-year comparisons. Higher investment is likely to lead to additional benefits every year, hence the total economic impacts that accrue over time because of higher investment are likely to be significantly larger than they appear in the single- year snapshot within Table 10. The key headline from this analysis is that the Optimistic investment scenario consistently outperforms the Pessimistic investment scenario in all metrics and across all impact layers. Table 10. Aggregate national economic impacts, £m and FTE jobs, 2032 Metric 2032 Scenario Direct Impact Indirect Impact Induced Impact Aggregate Impact Turnover (£m) Optimistic £246.1 £65.0 £68.8 £379.9 Pessimistic £232.0 £61.3 £64.8 £358.0 GVA (£m) Optimistic £114.7 £34.2 £46.2 £195.1 Pessimistic £107.4 £32.0 £43.2 £182.6 FTE employment (jobs) Optimistic 1,819 556 664 3,039 Pessimistic 1,693 518 617 2,828 Employee Compensation (£m) Optimistic £112.7 £22.8 £19.2 £154.7 Pessimistic £104.8 £21.2 £17.9 £143.9 Source: CalMac, ONS, and Cebr analysis The aggregate GVA impact of £195.1 million under the Optimistic investment scenario is £12.5 million larger (6.1%) than under the Pessimistic scenario in the 2032 analysis year. While for aggregate FTE employment, the Optimistic investment scenario outpaces the Pessimistic scenario by 212 jobs – equivalent to a 7.5% increase in the aggregate economic footprint of CalMac. Page 58
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26 Centre for Economics and Business Research Regional impacts This sub-section details the direct and the aggregate economic impacts of CalMac in 2032 at a regional level under both Optimistic and Pessimistic investment scenarios, with full results across all 16 islands and island groups analysed as a part of this study. In the absence of more accurate data, we have assumed proportionality of regional impacts between the current scenario and the two forward looking scenarios.9 For both investment scenarios, Table 11 presents full results for the direct economic impacts while Table 12 presents the full results for the aggregate economic impacts. These Tables highlight the importance of CalMac in terms of the organisation’s support of economic activity in lifeline areas, even in those regions for which it employs a very small number of people in absolute terms. For example, we estimate that CalMac supports the employment of 6 workers on an FTE basis in Jura and Colonsay, under both scenarios. In 2022, FTE employment in the region totalled 198. Therefore, approximately 3% of total employment is supported by the aggregate footprint of CalMac. It should also be highlighted that this figure is in the context of ‘upstream’ impacts and does not factor in the facilitation of economic activity that occurs across the “downstream” supply chain. Again, this is where CalMac services are used by firms and industries to transport goods off-island to be sold and distributed from the mainland. While quantifying the size of this impact under each investment scenario is not within the scope of this study, given that the islands are very remote and served primarily by CalMac ferries, one would anticipate the scale of this support to be large in relative terms, especially for a whisky producing island such as Jura. However, the island for which this is most apparent is Barra. The population of the island is approximately 1,300 people, with employment estimated to be 455 FTE jobs in 2022. On an aggregate level, 51 FTE jobs are estimated to be supported by CalMac under the Optimistic scenario (versus 47 under the Pessimistic scenario). This suggests that one in 9 jobs in Barra are supported by CalMac (versus one in 10 under the Pessimistic scenario). In relative terms, this highlights how critical the services provided by CalMac are for the viability and survival of the island’s economy, as approximately 11% of total employment is supported by the company. 9 The reason for this is that even though we know which runs a new ship might be put onto, and hence we know where any additional employees are likely to be needed, we do not necessarily know where these additional employees reside. We would need greater primary data to better map location of employment to home location. For example, in a hypothetical scenario where 25 additional workers are needed for a new Arran vessel, we do not know how many of these workers live on Arran versus how many live in mainland towns like Saltcoats, Ardrossan, or Ayr. In addition, a new Arran vessel does not necessarily employ workers from Arran. Hence, we do not know how the share of these additional impacts would be attributable to the specific island region versus the mainland. An additional unknown that must be considered is the reliability of older ships in 10 years’ time. These reliability concerns have cascading impacts across the network, and hence a new ship that is planned for a certain route may have to be diverted off that route as a result of significant and unforeseen reliability issues affecting other runs across the network. This is especially relevant in the Pessimistic investment scenario where investment levels the meeting of existing commitments only, while much of the fleet continues to age. Page 59
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27 Centre for Economics and Business Research Table 11. Direct regional economic impacts, £’000 and FTE jobs, 2032 Regional Direct Impacts - 2032 Island 2032 Scenario GVA (£'000) Employment (FTE jobs) Employee Compensation (£'000) Coll and Tiree Optimistic £1,579 17 £1,276 Pessimistic £1,482 16 £1,191 Mull and Iona Optimistic £4,046 43 £3,271 Pessimistic £3,798 40 £3,052 Kerrera and Gallanach Optimistic £296 3 £239 Pessimistic £278 3 £223 Jura and Colonsay Optimistic £592 6 £479 Pessimistic £556 6 £447 Islay Optimistic £2,763 30 £2,234 Pessimistic £2,593 28 £2,084 Gigha Optimistic £493 5 £399 Pessimistic £463 5 £372 Bute Optimistic £4,046 43 £3,271 Pessimistic £3,798 40 £3,052 Barra Optimistic £5,064 51 £3,969 Pessimistic £4,753 47 £3,703 Eriskay and South Uist Optimistic £3,798 38 £2,977 Pessimistic £3,565 35 £2,777 Benbecula Optimistic £739 7 £579 Pessimistic £693 7 £540 North Uist Optimistic £2,005 20 £1,571 Pessimistic £1,881 19 £1,466 Lewis and Harris Optimistic £14,559 146 £11,411 Pessimistic £13,664 136 £10,646 Small Isles Optimistic £193 3 £198 Pessimistic £181 3 £185 Skye and Raasay Optimistic £2,770 46 £2,845 Pessimistic £2,600 42 £2,654 Arran Optimistic £1,383 41 £2,134 Pessimistic £1,298 38 £1,991 Great Cumbrae Optimistic £106 3 £164 Pessimistic £100 3 £153 Source: CalMac, ONS, and Cebr analysis Page 60
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28 Centre for Economics and Business Research Table 12. Aggregate regional economic impacts, £’000 and FTE jobs, 2032 Regional Aggregate Impacts - 2032 Island 2032 Scenario GVA (£'000) Employment (FTE jobs) Employee Compensation (£'000) Coll and Tiree Optimistic £1,795 20 £1,400 Pessimistic £1,685 19 £1,306 Mull and Iona Optimistic £4,660 53 £3,618 Pessimistic £4,373 49 £3,375 Kerrera and Gallanach Optimistic £338 4 £263 Pessimistic £317 4 £245 Jura and Colonsay Optimistic £692 8 £536 Pessimistic £649 7 £500 Islay Optimistic £3,186 36 £2,472 Pessimistic £2,990 34 £2,306 Gigha Optimistic £559 6 £436 Pessimistic £525 6 £407 Bute Optimistic £4,889 55 £3,767 Pessimistic £4,589 52 £3,514 Barra Optimistic £5,582 59 £4,266 Pessimistic £5,239 55 £3,980 Eriskay and South Uist Optimistic £4,318 46 £3,275 Pessimistic £4,053 43 £3,055 Benbecula Optimistic £846 9 £640 Pessimistic £794 8 £597 North Uist Optimistic £2,285 25 £1,732 Pessimistic £2,145 23 £1,616 Lewis and Harris Optimistic £18,500 202 £13,623 Pessimistic £17,364 188 £12,710 Small Isles Optimistic £229 4 £219 Pessimistic £215 3 £204 Skye and Raasay Optimistic £3,516 58 £3,277 Pessimistic £3,300 54 £3,057 Arran Optimistic £1,843 50 £2,416 Pessimistic £1,729 46 £2,254 Great Cumbrae Optimistic £136 4 £181 Pessimistic £127 3 £169 Source: CalMac, ONS, and Cebr analysis Page 61
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29 Centre for Economics and Business Research 5. Connectivity: enabling island activities CalMac fundamentally provides connectivity to and from the islands of the Clyde and Hebrides. While the direct, indirect and induced impacts of CalMac’s activities are important, it is this connectivity which has the most profound impact on the areas in which CalMac operates. In this section, we analyse the connectivity that CalMac provides and explore how business, residents and visitors could directly benefit from improved services, in terms of economic welfare. In the following chapter we take this analysis further and examine potential wider impacts on productivity, business location, jobs and demography. This quantified analysis is new. Previous work by the Fraser of Allander Institute in 2015 examined CalMac’s economic footprint but did not examine the impacts of the connectivity it provides. To examine CalMac’s role in supporting activity on the islands we ask how island activity could be different if the ferry service changed. We use the scenarios outlined earlier in this report to examine how the costs to islanders, businesses and visitors could be different. This brings the analysis closer to that usually undertaken to support the business case for investment and codified in Scottish Transport Appraisal Guidance (STAG). While we draw on similar techniques in our analysis, we have not conducted a STAG appraisal or examined the costs of potential ferry service changes in detail. The role of Hebridean and Clyde ferry services Here we briefly review the drivers of demand for CalMac’s ferry services. The headline user benefits and demand impacts in the later subsections of this chapter estimate the immediate impacts of improved ferry services; the following chapter considers wider impacts on employment, productivity, and quality of life arising from these. For residents across the network, ferries are essential for: • Visiting family and friends • Making shopping trips on the mainland, where a wider choice of goods and services is available, and prices are lower • Undertaking leisure, sporting, and cultural activities • Accessing health services and education Stakeholders indicated that younger islanders have greater expectations than previous generations of being able to regularly access these opportunities on the mainland; meanwhile ageing populations and the centralisation of health care facilities to the mainland have driven growing health travel needs. There are also commuting flows, especially in locations around the Clyde which enjoy reasonable journey times by ferry and rail into Glasgow, and onto islands like Arran with housing affordability issues and difficulties meeting demand for key workers or workers in the tourism sector. Public and private organisations across the network depend on ferry transport for goods in and out, business travel, and access to staff and visitors. Whilst business travel for meetings can increasingly be replaced by video calling, some cases require a person to be on site. For example, the islands are home to significant whisky production and aquaculture activities, highly reliant on sophisticated technology. Repair or maintenance of these systems requires that specialists travel over from the mainland, sometimes at very short notice. Freight carried on the ferries can be categorised into a few main types, namely: • Goods for use by island residents – food, fuel, medical supplies, other consumer items for retailers or ordered online for delivery Page 62
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30 Centre for Economics and Business Research • Inputs required for production of goods on-island, e.g. grain for whisky, hay for agriculture • Island ‘exports’ heading to the mainland for sale or further processing, e.g. whisky (mostly bottled on the mainland), livestock for slaughter Tourism plays an important role in economies across the CalMac network, with the islands welcoming hundreds of thousands of visitors each year10. Unreliability and capacity constraints can result in various costs to users, including: • Longer journeys because of delays • Stress associated with late arrival or uncertainty over ability to travel • Having to make alternative arrangements: using an alternative road or ferry route; flying; or travelling as a foot passenger rather than with a vehicle • Travelling at a sub-optimal time (whether later or earlier than planned) • Not being able to make a planned journey at all For island residents, journey disruption (whether cancellations, delays, or being unable to book due to capacity limits) can result in additional costs through diverted journeys or unexpected overnight stays, additional time spent waiting, or missing out on work, social engagements, or personal appointments. Beyond disruption impacts, timetables constrain the length of time that can be spent on the mainland in a day trip – this is particularly relevant for business and commuting travellers. For businesses, the costs of disruption include loss of access to visitors, having to pause production, being unable to get goods to market, warehousing to hedge against uncertainty, and extra travel and/or staff time costs – for instance overnight accommodation. Under the future scenarios explored, changes in capacity and reliability will affect these costs. Reliability and capacity enhancements would allow some of these costs to be avoided. The introduction of RET across the network in 2015 lowered vehicle transit prices for non-commercial vehicles, with major implications for islanders and tourists. Stakeholders generally saw RET as a positive development which supported island tourism and made accessing the mainland for shopping, social, medical, and other purposes easier. Despite these benefits, some problems were identified: • The increase in demand generated by RET was not matched by a corresponding increase in ferry capacity, intensifying capacity constraints across the network; recent delays in procurement and vessel reliability issues have exacerbated this. • The drastic reduction in fares for camper vans has led to many more tourists travelling with them rather than by car, taking up large amounts of space on the vehicle deck and – arguably – spending less on-island than they otherwise would (though recent increases in camper van fares are aimed at addressing this). • Island residents who need to travel at short notice, including for urgent medical or family purposes, feel these constraints most keenly. This is shown in Figure 17, which is based on the results of our passenger survey. o 33-40% of freight and tourist journeys were booked a month or more in advance. This reflects the fact that these journeys are often predictable rather than spontaneous. CalMac encourages freight users to block book well ahead of time, and stakeholders in the hospitality industry reported that they encourage visitors who have booked with them to do the same, in order to avoid capacity issues. 10 Tourism in the Outer Hebrides, Outer Hebrides Tourism. Link. In 2017, the Outer Hebrides alone welcomed 219,000 visitors. Page 63
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31 Centre for Economics and Business Research o Residents’ day-to-day journeys cannot always be anticipated in the same way. For ‘Other’ journeys (explained more fully in the following section) and business journeys only 10-15% are booked a month or more in advance. o Commuting journeys behave rather differently, with lots booked at short notice or on non-bookable services. Commuting journeys dominate on the Gourock-Dunoon and Gourock-Kilcreggan foot ferries, on which vehicle deck capacity is of course not a constraint in any case. Figure 17: How far in advance passengers booked, by journey purpose Future reliability and capacity enhancements could help to fully unlock the benefits of RET for island tourism and investment, whilst ensuring that residents can more easily access the mainland when they need to. In the remainder of this chapter and the following chapter, we draw together information from survey work and from some high-level modelling of transport costs and journey characteristics to examine how ferry connectivity is linked with ferry users’ benefits, demand for the services, and some wider economic outcomes. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Commuting Freight Business Tourism Other 1 month plus 1 week - 1 month 2 - 7 days Day of travel Non-bookable Page 64
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32 Centre for Economics and Business Research Model structure Our analysis is structured around CalMac routes11 and five different journey purposes: • Commuting: travel between home and a place of work done in non-work time. • Freight: transport of goods around the CalMac network – this may include food, medicine, and consumer goods to islands, or island products to mainland markets. • Business: travel in work time, i.e. by private contractors or public sector employees. • Tourism: leisure travel by those who live outside the CalMac network. • Other: a range of purposes, including travel to visit friends and family, shopping, and personal business. At the core of the analysis are generalised costs (GCs) of journeys. These include: • Monetary costs • Time (converted into monetary terms according to the relevant value of time), including boarding/alighting and expected delays • Capacity and reliability costs associated with the probability of being unable to make a journey; these are expressed in minutes and valued according to values of time Therefore, generalised cost savings do not represent growth in economic output, but an estimated willingness to pay for changes in frequency, capacity, and reliability. These benefits form a key part of the case for investment in ferry service improvements. Changes in fares would also appear in these benefits, but these are not included in our analysis – we assume that fare structure and levels do not change. GCs are estimated for the entirety of travellers’ journeys, including access and egress legs. Therefore, car or public/active transport costs associated with the journey either side of a ferry crossing are included; ultimately it is the total cost of the journey, not just the ferry leg of it, that determines whether or not it will be made. Changes in GCs are driven by ferry services though – we assume that characteristics of access and egress legs do not change. Our passenger survey was instrumental in understanding, among other things, the breakdown of journey purposes, party sizes, and access/egress distances and modes. Headline results Overall, as shown in Table 13, the monetised benefits in 2032 of the realisation of the Optimistic rather than the Pessimistic scenario are estimated at £67.7 million annually, with passenger journeys for the year expected to be 6.1% higher, at 6.1 million12. Table 13: Summary impacts of Optimistic scenario on demand and user benefits Demand (passenger journeys) Pessimistic 5,701,522 Optimistic 6,050,409 Change 348,887 Change % 6.1% Total generalised cost savings (£k) £67,677 Source: Cebr/Connected Economics modelling and analysis 11 In most cases these are straightforward, between two destinations – e.g. Ullapool-Stornoway or Sconser-Raasay – and a few which cover more than two ports in CalMac data are split out; for instance Uig-Tarbert/Lochmaddy (the Uig Triangle) is shown as Uig-Tarbert and Uig-Lochmaddy in this analysis. 12 This is 3.8% higher than 2019 demand (5.8 million). In the Pessimistic scenario, demand falls by 2.2% relative to 2019. Page 65
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33 Centre for Economics and Business Research The monetised impact here is for one year only and is undiscounted, consistent with the estimation of the economic footprint of CalMac; it is not adjusted to account for the future value of money. Using a 3.5% discount rate for 2022 onwards13, the single-year monetised benefit in 2032 is £48.0 million. Single-year values do not, however, capture the full scope of benefits from investment in ferry services, given that these investments are by definition long term. Table 14 shows 5, 10, and 15-year present values. These assume that full benefits of the Optimistic scenario (and full disbenefits of the Pessimistic scenario) persist from 2032 for the entirety of the period in question. Table 14: Generalised cost savings - 5, 10, 15-year present values Time period PV of generalised cost savings (£k) 2032-2036 £224,203 2032-2041 £412,977 2032-2046 £571,918 Source: Cebr/Connected Economics modelling and analysis Therefore, the estimated benefit in the 5 years from 2032 would be £224.2 million. Including an additional 5 or 10 years thereafter brings benefits to £413.0 million or £571.9 million respectively. Given the lifetime of ferry and infrastructure investments, a 15- year horizon seems entirely appropriate. The estimated benefits compare favourably to the £580 million planned investment by the Scottish Government – and there are further benefits not included in generalised cost savings but explored elsewhere in this document. Including the 15-year PVs of the agglomeration, competition, and earnings impacts discussed in the following chapter brings total benefits to £695.0 million. Our model is focused on estimation of 2032 benefits. These present value figures, which assumes those benefits persist until at least 2046, should be treated with caution, and some caveats should be noted: • At least some of the benefits of the Optimistic scenario will start before 2032 – for instance with the delivery of Hull 801, Hull 802, and the two Islay vessels – but these are not estimated in our model and not included in the PV calculations. • In the Pessimistic scenario, continued ageing of the fleet after 2032 would likely result in further reliability disbenefits. Other things being equal, this would increase the relative benefits of the Optimistic scenario. • Benefits of the investments made under the Optimistic scenario would begin to diminish in the absence of further continuing investment – i.e., to support harbour upkeep and further vessel replacement. For example, assuming that the two Islay vessels are delivered as planned in 2024 and 2025 they would each be over 20 years old by 2046, with potential implications for reliability and maintenance costs. • Any present value calculations, especially those which project decades into the future, are highly sensitive to one’s choice of discount rate. Using the 3.5% recommended by DfT results in a total figure of £695.0 million. Using 3.0% instead increases it to £752.5 million and using 4.0% decreases it to £642.4 million. 13 This means that for each year after 2022, values would be discounted by 3.5% more, with these discount rates compounding; 2022 values are not discounted, 2023 values are divided by 1.035, 2024 by 1.071 (i.e. 1.0352), and so on – 2032 values are divided by 1.411 (1.03510). The 3.5% discount rate is recommended by TAG Unit A1.1 – Cost Benefit Analysis (Link, paragraph 2.7.7). Page 66
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34 Centre for Economics and Business Research For the rest of this document, socio-economic benefits are generally presented in single-year undiscounted terms, with 15-year present values provided for selected impacts. Breakdowns of core results Benefits can also be broken down by journey purpose and by route. Table 15 shows that nearly half of the increase in demand is driven by growth in tourism, and the £34.8 million in benefits accruing to these users makes up half of the total. This is unsurprising given the existing importance of tourism demand, and the improvements delivered to tourist-oriented routes under the Optimistic scenario. The highest growth in percentage terms is for business travel, which increases by 7.6% – this reflects business travellers’ high value of time and resulting sensitivity to changes in GCs. Table 15: Impacts by journey purpose Commuting Freight Business Tourism Other Change in demand 46,961 4,905 14,581 171,961 110,477 % change in demand 4.7% 5.5% 7.6% 6.7% 6.0% GC savings (£k) £6,971 £1,632 £2,379 £34,785 £21,911 Source: Cebr/Connected Economics modelling and analysis Turning to impacts by route, which are shown in Table 16: • The biggest growth in absolute demand is for Ardrossan-Brodick, with almost 100,000 additional passenger journeys made. This is despite the route benefitting from the introduction of the Glen Sannox in either scenario; however, in the Optimistic scenario the greater improvement in reliability (on a route which presently suffers a lot of cancellations) drives significant increases in demand. • There is substantial demand growth, of nearly 20% overall, on the Kennacraig- Islay routes; this reflects the freight and tourist demands generated by the whisky industry there14 – in the Pessimistic scenario, there are no new vessels serving these routes so capacity continues to be a major constraint. • The Mallaig-Armadale, Mallaig-Small Isles, and Oban/Mallaig-Lochboisdale routes also see very high demand growth. This is driven more by reliability than capacity – in the Optimistic scenario cancellations decline sharply, and in the case of these routes they start from a high base. The Small Isles experience frequent cancellations due to harbour infrastructure issues, and these are assumed to be ameliorated. Mallaig-Armadale, as a non-lifeline route, is subject to its sailings being diverted to cover lifeline services elsewhere (including in the Small Isles) – greater redundancy in the fleet is assumed to reduce this issue substantially. • Benefits for Oban-Craignure and the Uig Triangle routes seem relatively modest given their importance. This is because these routes receive new vessels (Loch Frisa and Hull 802 respectively) in either scenario. • Kerrera-Gallanach already has a reliable service and is not expected to receive a new vessel in the Optimistic scenario, so there is no impact on this route. 14 Bespoke assumptions are made regarding underlying freight demand growth for Kennacraig-Port Ellen and Kennacraig-Port Askaig in the model, using VRDP forecasts provided to the authors by CalMac. Multiple stakeholders in the whisky industry on Islay expressed concerns around the ability of existing capacity to meet this demand. Page 67
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35 Centre for Economics and Business Research Table 16: Impacts by route Change in demand GC savings (£k) Passenger journeys % Ardmhor - Eriskay 2,416 3.9% £493 Ardrossan - Brodick 93,783 11.0% £17,165 Ardrossan - Campbeltown 959 11.3% £290 Brodick - Campbeltown 18 0.8% £5 Berneray - Leverburgh 4,327 5.9% £925 Claonaig - Lochranza 1,094 1.6% £178 Tarbert - Lochranza 286 7.1% £55 Colintraive - Rhubodach 2,566 1.3% £156 Fionnphort - Iona 4,461 1.9% £330 Lochaline - Fishnish 243 0.2% £38 Gourock - Dunoon 15,143 5.3% £2,338 Gourock - Kilcreggan 4,901 5.8% £361 Kennacraig - Port Ellen 29,204 22.3% £6,328 Kennacraig - Port Askaig 17,432 13.7% £5,022 Oban - Colonsay 798 6.8% £223 Port Askaig - Colonsay 1,025 10.2% £235 Port Askaig - Oban 753 7.4% £258 Kerrera - Gallanach 0 0.0% £0 Largs - Cumbrae Slip 18,239 2.4% £1,179 Mallaig - Armadale 47,058 15.9% £9,566 Mallaig - Lochboisdale 5,066 18.5% £1,913 Mallaig - Eigg 1,607 20.6% £444 Mallaig - Muck 1,440 21.1% £418 Mallaig - Rum 1,373 20.9% £396 Mallaig - Canna 1,342 17.0% £468 Oban - Lochboisdale 733 18.7% £339 Oban - Coll 1,207 6.4% £379 Coll - Tiree 1,450 7.7% £328 Oban - Tiree 1,075 5.7% £385 Oban - Castlebay 2,968 6.1% £1,225 Oban - Craignure 17,194 2.6% £2,655 Oban - Lismore 1,213 5.0% £199 Sconser - Raasay 864 1.0% £117 Tarbert (Loch Fyne) - Portavadie 3,548 3.9% £597 Tayinloan - Gigha 1,394 2.0% £195 Tobermory - Kilchoan 1,026 1.9% £182 Uig - Lochmaddy 2,932 2.8% £779 Uig - Tarbert 2,813 2.9% £742 Ullapool - Stornoway 15,597 5.4% £4,807 Wemyss Bay - Rothesay 39,339 5.7% £5,967 Source: Cebr/Connected Economics modelling and analysis Page 68
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36 Centre for Economics and Business Research One avenue not explored in our model is new connectivity brought about by restoring former routes or creating new ones. Nevertheless, such investments could have interesting impacts. CalMac’s operations are focused on the hubs of Oban and Mallaig, with other mainland ports serving individual islands and a few inter-island connections, e.g. within the Outer Hebrides and between large islands and smaller neighbours (like Skye and Raasay). Some defunct CalMac routes ended because fixed links or alternative routes have replaced them: for example Kyle of Lochalsh – Kyleakin (last sailing 1995), now served by the Skye Bridge, and Kyles Scalpay, Isle of Harris – Scalpay (1997). Other inter-island connections have, however, been lost as resources are focused on connecting islands to the mainland. Potential benefits from restoration of these routes depends on their location and economic context: • Between 1994 and 1998, a Brodick – Largs – Rothesay service linked the two popular tourist destinations of Arran and Bute. Nowadays, travel between these islands would require two separate ferry crossings with a car journey in between. Given the popularity of ‘island-hopping’ holidays, for instance within the Outer Hebrides, a new link between Arran and Bute could generate new tourist demand, as well as improving inter-island social and business connections. • From 1991 to 1994 a Mallaig – Tobermory – Coll – Tiree service was in operation. Ultimately this was discontinued due to a lack of demand and infrastructure constraints. Nevertheless, restoration of inter-island connections between Mull, Coll, and Tiree does present an interesting possibility. The two smaller islands have a population of less than 1,000 between them, so residents depend on journeys to the mainland for large shopping trips and various private and public services. Access to their larger neighbour would allow for some trips to the mainland to be avoided, and Tobermory’s ‘catchment area’ would be increased, allowing for a wider range of goods and services to be offered. Depending on the timetable, commuting into Tobermory may also become feasible. This service might replace the Oban – Coll – Tiree sailings, with travel to the mainland via Mull. The above impacts are speculative – evidence to robustly estimate them does not exist, and doing so goes beyond the scope of our modelling framework. Moreover, there may be significant infrastructure implications to route restoration/creation, and not just at ports – for instance Mull acting as a land bridge between Coll/Tiree and Oban would probably require significant road upgrades (and perhaps new public transport services) between Tobermory and Craignure. Page 69
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37 Centre for Economics and Business Research 6. Supporting prosperity Introduction In this chapter we draw together the findings of the research and examine the impacts that these could have on the long-term prosperity of the islands. Beyond the direct, indirect, induced impacts of CalMac’s activities and supply chains, and its downstream impacts as businesses and organisations use ferry services in their own operations, there is the potential for longer-term impacts on the economies of the communities served. These are the spillover impacts (sometimes referred to as catalytic impacts) introduced in Figure 1 in the Introduction. These impacts are inherently more uncertain than others assessed in this study but are clearly an enormously important component of CalMac’s activities given its lifeline role to most of the communities it serves. Figure 18 provides a high- level view of the impacts considered here. Figure 18: Overview of wider impacts and transmission mechanisms Impacts on key island industries The increased ferry demand generated by service improvements is not just a benefit for those making these journeys, but for businesses which rely on the flow of people and goods back and forth. In this section we review in more detail impacts on selected industries of service improvements. It is important to recognise that much of this output and employment growth will not be additional at the Scottish or British level. Growth on the islands and remote mainland locations will displace some growth from elsewhere. To give a practical example, improved ferry services might allow distilleries to continue expanding or opening on islands. In the absence of that improvement, those distilleries could expand or open on the mainland in response to global demand – so growth and jobs would have still been created, but not on the CalMac network. Similarly, tourists visiting the islands may have otherwise gone to the Scottish mainland or elsewhere in the UK rather than going abroad or not holidaying at all. Page 70
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38 Centre for Economics and Business Research Moreover, the significant business and freight user benefits estimated partially capture increased output impacts – discussed further in the Competition subsection15. Nevertheless, economic growth on the islands – whether it is additional at the national level or not – has strong policy support, as discussed in detail in our Phase 1 report. Supporting island tourism The tourist industry, vital to the economies of so many islands on the network, is of course heavily dependent on the connectivity provided by ferry services. Capacity challenges, especially in the peak summer months, and reliability issues do, however, add to the cost of island holidays and create challenges for businesses which rely on tourists. Tourist industry stakeholders reported that: • Experience and perception of unreliable services can deter tourists from making repeat visits or booking island visits at all. • Restricted capacity and the resulting difficulty in short-notice bookings means that last- minute vacancies cannot be filled. • Periods of disruption do not just result in lost patronage during that period: traffic backlogs take days to clear, and news of disruption leads to upcoming bookings being cancelled and not recovered. • Increased unreliability over the last few years has had measurable impacts on businesses. Auchrannie Resort16 on Arran provided some figures to the authors: o Occupancy in the first quarter of 2018 was 85%; in 2022 this was 74%. 12- month occupancy has fallen from 90% in 2017/18 to 85% in 2021/22. o An extended period of disruption in April and early May, during which only one ferry was operating, resulted in approximately £85k of lost revenue. • Staff have to spend significant time on managing disruption, rather than on their core job roles – this is stressful for them, may contribute to staff retention issues, and is ultimately a drain on productivity. • On routes where journey times are in principle suitable for commuters (e.g. Mallaig- Armadale, Ardrossan-Brodick), in reality the reliability and timetabling constraints do not allow this. Arran in particular faces housing supply issues on-island, so attracting and retaining staff is very difficult and turnover is high. Tourism has been a mainstay of the islands’ economies for a long time. Two recent phenomena have boosted demand further, however, making the opportunities from future growth greater: • RET, by lowering prices and making island holidays more affordable. • Covid-19. Stakeholders reported that the pandemic had resulted in many tourists who would otherwise have gone abroad holidaying in the islands, and in a lengthening of the tourist season beyond the traditional summer peak – and that these trends seemed to be persisting. 15 TAG unit 2.2. – appraisal of induced investment impacts, Department for Transport, September 2016. Link. Paragraph 4.1.2 states that, ‘In a perfectly competitive market the value of the output is equal to the cost of production. A reduction in generalised travel costs lowers the costs of production, which as noted in section 2 acts to raise the effective return to capital and induce investment. The value of the resulting increased output will equal the magnitude of the change in generalised travel costs. Therefore the welfare effects, associated with increased output, resulting from a transport investment will be fully captured by business user benefits.’ Perfect competition is, however, a strong assumption, and certainly one which does not hold in small island communities. 16 Auchrannie is a resort in Brodick, Arran which attracts roughly 45,000 overnight visitors per annum. Figures quoted are used with permission. Page 71
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39 Centre for Economics and Business Research This section explores the impact of improved services on the islands’ tourism economies. We focus on the scale and impact of increased overnight tourism to the islands in terms of number of visits made, total spending and nights stayed, and employment and earnings impacts. These estimates are based on: • The change in annual tourism ferry journeys by route made in the Optimistic vs. the Pessimistic scenario (172,000). • Assumptions on how many ferry journeys a tourist makes during one overnight trip; in the absence of hard data, we assume four for most destinations (allowing for some island-hopping or visits spanning multiple islands) and two for Na h-Eileanan Siar. • Average spending and nights per person-trip by local authority area from the 2019 GB Tourism Survey17. These are summarised in Table 17. • The estimated tourist spend required to create one additional job in the UK tourism sector – just over £65,000, based on a Deloitte and Oxford Economics report for Visit Britain18. • Average earnings per tourism job, drawing on the same report’s definition of the sector and earnings data from the Annual Survey of Hours and Earnings (ASHE)19. Impacts are produced by route and presented in Table 18, aggregated to local authority area. In total, these indicate an extra £13.8 million in annual spending (15-year PV £116.7 million) by tourists would result, translating into over 200 jobs with associated earnings of £4.3 million (15-year PV £36.4 million). Table 17: Overnight tourism characteristics by local authority Local authority Average per person-trip Spend Nights Argyll and Bute £294.84 4.3 Na h-Eileanan Siar £470.01 8.8 Highland £302.96 4.2 North Ayrshire £237.33 3.7 Source: 2019 GB Tourism Survey, Cebr analysis Table 18: Overnight tourism impacts by local authority Local authority Impact on Spending (£k) Nights Employment Earnings (£k) Argyll and Bute £4,561 66,061 70 £1,423 Na h-Eileanan Siar £2,516 47,115 39 £785 Highland £3,849 53,766 59 £1,201 North Ayrshire £2,881 45,326 44 £899 Total £13,807 212,269 212 £4,307 Source: Cebr/Connected Economics modelling and analysis 17 GB Tourism Survey (domestic overnight tourism): Latest results, Visit Britain. Link. 18 Economic impact and employment, Visit Britain. Link. £65,000 figure is based on conversion of £54,000 per job from 2013 to 2022 prices. 19 Earnings and hours worked, all employees: ASHE Table 5, ONS, 2022. Link. Figures from Table 5.7a. Page 72
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40 Centre for Economics and Business Research On the one hand, these may be slight overestimates because some tourists will switch to sailing from flying rather than being ‘new’ to the islands, but there are probably more reasons to think that true impacts could be even higher: • A more reliable ferry service will improve the profile of the islands as a place to visit, and may generate a more significant change in demand. • We have assumed that the duration and spend of tourist visits in the future stays the same as it does now. Improved perceptions of island holidays may result in longer stays. Moreover, ferry unreliability can shorten visits in more direct ways – either through delaying arrival or causing tourists to hedge against unreliability by leaving a night or two earlier than they otherwise might. • Earnings impacts only include salary and wages to employees. Given the prevalence of small, locally-owned businesses on islands, further earnings can be expected to accrue to owners as profit. Growing the island whisky industry Whisky is an iconic Scottish product – according to the Scotch Whisky Association, in 2021 exports of it were worth £4.5 billion, with the industry employing 11,000 people and providing £5.5 billion in GVA to the UK economy20. In 2016, Islay whisky production alone is estimated to have generated £196 million in excise tax revenue21. Most of the 130 malt and grain distilleries, including many of the largest producers by volume, are situated on the mainland, but the islands are home to several, including distinctive and high-end brands22: • On Arran, Lochranza Distillery and Lagg Distillery (both owned by Isle of Arran Distillers). • On Mull, Tobermory Distillery. • On Lewis and Harris, the Isle of Harris Distillery and Abhainn Dearg Distillery. Elsewhere in the Outer Hebrides, the North Uist Distillery has recently opened. • On Skye, Torabhaig Distillery and Talisker Distillery, plus Isle of Raasay Distillery on neighbouring Raasay. • Islay hosts nine active distilleries, plus one on neighbouring Jura, with more set to open in the coming years. The project team spoke to representatives of several distilleries as part of the stakeholder engagement process and is extremely grateful for their time and input. Ferry reliability and capacity concerns were widely voiced as posing difficulties in reliably bringing in inputs and sending outputs to market. Islay in particular is dominated by the whisky industry, generating significant freight demand and severe capacity challenges on the Kennacraig-Port Ellen and Kennacraig-Port Askaig routes. The success of Islay whisky means that the industry is expanding, but stakeholders felt this growth would be severely constrained without new capacity23. The two new vessels for Islay which have recently been ordered are expected to increase vehicle deck capacity on the Islay routes by almost 40%24. We estimate the impacts of improved services on the whisky industry in 2032. These are based on: 20 Facts & Figures, Scotch Whisky Association. Link. 21 The flipside of the Islay whisky boom, Scotch Whisky Association. Link. 22 Distillery Map, Scotch Whisky Association. Link. 23 At time of writing, the two new Islay vessels have been ordered but construction is not underway. Therefore, they have not been included in the Pessimistic scenario, which only includes new vessels acquired (MV Loch Frisa) or under construction (Hull 801/Glen Sannox and Hull 802). This means that the Optimistic scenario vs the Pessimistic scenario reflects the full impact of the new vessels. Sensitivity tests shown in an appendix include one which treats these vessels as part of the Pessimistic scenario. 24 New vessels for Islay, CMAL. Link. Page 73
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41 Centre for Economics and Business Research • The change in annual freight ferry journeys by route made in the Optimistic vs. the Pessimistic scenario (4,900). • Estimation of the relationship between HGV movements and whisky production, drawing on desk research and our conversations with distilleries. • To estimate the proportion of new HGV movements generated by whisky production: o For Lewis and Harris, Arran, and Mull, percentage of their GVA which is relevant to whisky manufacture25. o For Islay and Jura, we assume a higher share to reflect the growth of the whisky industry there and strong capacity constraints – on this basis it seems entirely plausible that whisky would make up an outsize share of any freight growth. o We do not estimate impacts for Skye – the Skye Bridge already provides a freight connection to the mainland, with Mallaig-Armadale primarily used by tourists and carrying very few commercial vehicles. • Estimation of the relationship between whisky production and employment generated, and an assumed £35,000 average salary for production employees. Impacts by island are shown in Table 19. Unsurprisingly, these impacts are overwhelmingly concentrated in Islay and Jura; impacts for other islands should be treated as very approximate. The employment impact may seem small, but this includes on-island production jobs only. Most of the distilleries we met with employed more people in their visitor centres – but these are not directly driven by production and in any case have been accounted for above under tourism. Moreover, mainland production jobs (e.g. bottling) may also result from this extra output. To put the production impacts into context, Caol Ila is by far the largest distillery on Islay, producing 3 million litres of pure alcohol per year26. Assuming 40% ABV this is about 20 million bottles per year. Therefore, for Islay alone, the impact is equivalent to adding a new distillery with half the output of its biggest existing producer. Table 19: Whisky industry impacts by island Production (75cl bottles, thousands) Employment Earnings (£k) Total 9,713 46 £1,596 Islay and Jura 9,222 43.3 £1,515 Lewis and Harris 173 0.8 £28 Mull 135 0.6 £22 Arran 183 0.9 £30 Source: Cebr/Connected Economics modelling and analysis 15-year PV of the £1.6 million annual earnings impact is £13.5 million. These impacts assume the geographical distribution and structure of island whisky production stays the same in the future. An improved ferry service could, however, lead to the opening of distilleries where there are none at present, or to existing distilleries moving more of their operations on-island; for example, Bruichladdich on Islay is unusual for bottling whisky on-site rather than transporting it to the mainland, but easier freight transport may lead to others following suit. 25 SIC Code 10-15, Manufacture of food, beverages, textiles and clothing. This will include non-whisky manufacturing for some islands. Given, however, the outsize freight demands generated by distilling this is likely to be a reasonable estimate. 26 Caol Ila, Islay.com. Link. Page 74
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42 Centre for Economics and Business Research Further economic impacts Improved connectivity through reduced transport costs can unlock various wider economic impacts. Most relevant in this context are: • Productivity-enhancing agglomeration benefits through improvements in effective economic density (as business-to-business transport costs are reduced) • Reduction in the ‘island premium’ through enhanced competition • Business location decisions and consequential employment impacts Agglomeration There is a wealth of economic evidence to support a link between effective economic density27 and productivity, that is to say output per worker. These agglomeration benefits can broadly be categorised as follows: • ‘Learning’ through knowledge spillovers, as the exchange of best practice and skills through business-to-business interaction and movement of employees between companies is facilitated by proximity of firms in the same or similar industries; • ‘Matching’ of jobs to workers, suppliers to firms and firms to customers. A high density of related firms means that, for example, employers can more easily hire workers who meet their specific skills requirements; • ‘Sharing’ of risk, opportunities for specialization, and access to intermediate inputs. For example as suppliers of intermediate inputs locate close to clusters of firms, they will enjoy lower average transport costs and increasing returns to scale. Whilst agglomeration benefits are more commonly associated with schemes serving dense urban centres, there is no reason to think that they do not apply in an island context. They were estimated based on the following: • For each of the 16 island regions assessed in 3. Current economic footprint of CalMac and 4. Economic footprint under alternative scenarios, the change in the demand- weighted average generalised cost of access28. o For Skye and Raasay, estimated impacts are substantially lowered, by 75%, as the Skye Bridge makes ferry connectivity a poor measure of overall connectivity. • Estimated compositions of GVA by sector (included in an appendix to this document). • The agglomeration elasticities used by the DfT in their Transport Appraisal Guidance (TAG)29. These elasticities are for Manufacturing, Construction, Consumer services, and Producer services30, with ONS sectors grouped into each of these. Estimated benefits are shown in Table 20. These relate to static agglomeration – that is to say they refer to benefits from increased productivity for existing economic activity, rather than assuming changes in land use (the location of employment). Dynamic agglomeration economies may drive further productivity benefits, through businesses physically relocating to better-connected areas, though in the absence of a full LUTI (land use/transport interaction) model these have not been estimated, as to do so at all robustly is not possible. 27 Economic density relates to the physical proximity of business locations. Transport improvements effectively increase it. 28 Only the change in the ferry element of travel is included, i.e. this change is for a port-to-port journey not including access and egress by car or public transport. 29 Based on Graham et al. (2010). 30 Elasticities are 0.021 for Manufacturing, 0.034 for Construction, 0.024 for Consumer services, and 0.083 for Producer services. Page 75
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43 Centre for Economics and Business Research Table 20: Agglomeration impacts by island region Island Agglomeration impact (£k) Coll and Tiree £31 Mull and Iona £32 Kerrera £0 Lismore £2 Jura and Colonsay £6 Islay £204 Gigha £1 Bute £168 Barra £21 Eriskay and South Uist £101 Benbecula £69 North Uist £9 Lewis and Harris £338 Small Isles £13 Skye and Raasay £340 Arran £150 Great Cumbrae £2 Total £1,488 Source: Cebr/Connected Economics modelling and analysis Therefore, an overall productivity uplift of just under £1.5 million per year for existing island firms is estimated (15-year PV £12.6 million). This is a modest impact, reflecting the relatively small population of the islands. Nevertheless, it amounts to roughly £26 per person, or £56 per household annually. Looking at results by island, these are largely a function of current economic size and scale of service improvements. Therefore, large islands like Lewis and Harris, Arran, Islay, and Bute see the biggest benefits – as does Skye, despite the penalty applied to reflect the presence of a bridge, because of the scale of reliability improvements on the Mallaig-Armadale route. Meanwhile Kerrera and Gigha are both small, already enjoy dedicated vessels, and only experience disruption relatively infrequently. Competition In TAG, the recommended rule of thumb for estimating the value of output change in imperfectly competitive markets in response to a transport improvement is to take 10% of business and freight user benefits31. Other work has suggested an upper limit of 30-40%32; we therefore assume 30% given the remote island context and greater potential for market isolation and therefore power to exist. These benefits, like agglomeration impacts, represent an addition to GDP as a direct result of lower transport costs. Estimates by route are shown in Table 21. 31 TAG unit 2.2. – appraisal of induced investment impacts, Department for Transport, September 2016. Link. Paragraph 4.3.1. 32 Wider economic impacts in remote areas, James Laird, 2009. Link. Page 6. Page 76
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44 Centre for Economics and Business Research Table 21: Output impacts from enhanced competition User benefits (£k) Value of output change Business Freight Ardmhor - Eriskay £49 £24 £22 Ardrossan - Brodick £748 £240 £297 Ardrossan - Campbeltown £2 £1 £1 Brodick - Campbeltown £0 £0 £0 Berneray - Leverburgh £94 £21 £34 Claonaig - Lochranza £0 £1 £0 Tarbert - Lochranza £0 £1 £0 Colintraive - Rhubodach £1 £4 £1 Fionnphort - Iona £11 £3 £4 Lochaline - Fishnish £0 £1 £0 Gourock - Dunoon £110 £0 £33 Gourock - Kilcreggan £17 £0 £5 Kennacraig - Port Ellen £258 £367 £187 Kennacraig - Port Askaig £204 £326 £159 Oban - Colonsay £10 £3 £4 Port Askaig - Colonsay £26 £9 £10 Port Askaig - Oban £11 £9 £6 Kerrera - Gallanach £0 £0 £0 Largs - Cumbrae Slip £13 £7 £6 Mallaig - Armadale £12 £6 £6 Mallaig - Lochboisdale £84 £25 £33 Mallaig - Eigg £25 £4 £9 Mallaig - Muck £24 £4 £8 Mallaig - Rum £22 £3 £8 Mallaig - Canna £26 £4 £9 Oban - Lochboisdale £8 £15 £7 Oban - Coll £17 £18 £10 Coll - Tiree £36 £17 £16 Oban - Tiree £17 £19 £11 Oban - Castlebay £30 £33 £19 Oban - Craignure £107 £40 £44 Oban - Lismore £8 £6 £4 Sconser - Raasay £5 £1 £2 Tarbert (Loch Fyne) - Portavadie £1 £4 £1 Tayinloan - Gigha £8 £5 £4 Tobermory - Kilchoan £1 £0 £0 Uig - Lochmaddy £19 £23 £12 Uig - Tarbert £18 £22 £12 Ullapool - Stornoway £112 £249 £108 Wemyss Bay - Rothesay £246 £113 £108 Total £2,379 £1,632 £1,203 Source: Cebr/Connected Economics modelling and analysis Page 77
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45 Centre for Economics and Business Research It is not possible to robustly attribute these outcomes to individual islands – some benefits will accrue to mainland areas which now have improved access to island firms, for example. Our conversations with island stakeholders do strongly suggest, however, that there is a great deal of scope for improved services to benefit island or remote mainland households and businesses through this channel: • Construction is subject to a significant 'island premium', adding to the cost of residential and commercial developments. To some extent this is inherent given the geographical remoteness of communities and thin labour markets, but is also affected by ferry services: o Stakeholders in the construction industry estimated this premium at about 15- 20% relative to the west coast of Scotland (itself subject to a roughly 10% premium versus the Central Belt). o For bigger deliveries such as construction materials, the Small Isles often rely on a charter vessel which is more expensive but flexible and not subject to the same capacity constraints; being able to receive more freight via CalMac would save some of this expense. o Where daily commuting is not feasible (or reliability/capacity constraints make it uneconomic), workforces have to be accommodated overnight, contributing to the overall expense of projects. • Aside from a handful33, businesses depend on the ferries for freight in and out. Reliability or capacity constraints can result in production stoppages and loss of revenue, and ultimately add to the cost of transporting goods. • Any business which uses specialist machinery – distilleries, cheese producers, fish farms – may need to have this machinery repaired by a specialist at short notice in the event of a breakdown. This can mean the cost of flying a specialist in (not an option if they need to bring heavy equipment) or having such a specialist in-house, or being subject to operational disruption whilst waiting for a ferry crossing to be available. • Labour supply limitations, even on larger islands like Islay and Arran, mean that skilled tradespeople e.g. electricians and joiners command a significant wage premium and may not be available at short notice, necessitating bringing in contractors from the mainland – in either case this results in time and money penalties to having work done. • Where an island's main ferry experiences frequently capacity and reliability issues, travellers may use more remote but more reliable services instead. For example, stakeholders on Mull and Arran consistently reported that the ferries out of Fishnish and Lochranza respectively provided more reliable access to the mainland than the Oban-Craignure or Ardrossan-Brodick services. These services do, however, tend to entail longer drives to ultimate destinations on the mainland, which comes with a direct monetary cost in wages and fuel. All of the phenomena above imply that prices will be above (and therefore quantities demanded and supplied below) those which would occur in a more competitive market. Improved ferry services would ameliorate these issues somewhat, leading to increased output. Using the 10% rule of thumb as advised by the DfT results in competition benefits in 2032 of £401,000. Using 40% – the absolute upper limit implied by the literature – would make them £1.6 million. The 15-year PV of the central £1.2 million estimate is £10.2 million. 33 For example, fish farms with very high feed requirements who use their own vessels. Page 78
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46 Centre for Economics and Business Research Employment Whilst employment generated in specific sectors is estimated in ‘Impacts on key island industries’, improved connectivity stands to generate employment across island economies. We estimate this overall employment impact in a similar way to agglomeration, based on changes in the demand-weighted average generalised cost of access for the 16 island regions. An elasticity of employment with respect to connectivity is then applied34, producing estimated impacts as shown in Table 22. Results for some of the smallest islands35 are grouped together – due to their small existing employment levels, impacts at the individual island level are not robust. The overall impact is a little under 2% of current employment level across the islands. Table 22: Overall employment impacts Island Employment impact Coll and Tiree 9 Mull and Iona 12 Islay 54 Bute 43 Barra 10 Eriskay and South Uist 25 Benbecula 8 Lewis and Harris 111 Skye and Raasay 80 Arran 62 Others 16 Total 429 Source: Cebr/Connected Economics modelling and analysis These employment impacts are not additional to those estimated by industry. The whisky and tourism jobs created through improved services – though calculated in more bespoke ways – are ultimately a result of better connectivity, so to include them separately from the above would be double-counting. Therefore, an estimated 429 jobs are created, of which 212 are in tourism and 46 are in whisky production. Total impacts, including earnings, are summarised in Table 2336. Table 23: Overall employment and earnings impacts Employment impact Earnings impact (£k) Total 429 £11,873 of which tourism 212 £4,307 of which whisky 46 £1,596 Source: Cebr/Connected Economics modelling and analysis 34 New Road Infrastructure: the Effects on Firms, Gibbons et al., September 2012. Link. Elasticity of 0.361 from Table 2, regression 5 used. 35 Kerrera, Lismore, Jura and Colonsay, Gigha, North Uist, Small Isles, Cumbrae. 36 Earnings and hours worked, place of work by local authority: ASHE Table 7, ONS, 2022. Link. Figures from Table 7.7a. Page 79
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47 Centre for Economics and Business Research As with some of the other impacts explored here, these are not necessarily additional to Scotland or Britain; they may simply be moving employment and earnings to island communities from the mainland37. In 15-year PV terms, the £11.9 million earnings impact is £100.3 million. Attraction of key workers An issue of particular concern across the islands is the attraction of key workers, including teachers, medical personnel, and local authority staff. Robustly estimating impacts of improved ferry services on these groups’ decisions over whether or not to live on the islands is not possible. Nevertheless, the available evidence suggests that a positive impact would follow. A Scottish Government study38 of public sector employers, ostensibly focused on affordable housing, found that: • Health Boards and councils operating in island and rural communities face significant problems with recruitment and retention of staff. • Drivers of these difficulties include geographic remoteness, cost of living (including public transport), and access to housing. • Lack of suitable accommodation is a particular problem in the attraction of fixed term or temporary staff, teachers and social care staff, and those on lower pay grades. These findings strongly reflect themes from our discussions with island residents and public sector employers. Improved ferry services which make coming and going easier, cheaper, and more flexible would effectively make island communities less remote. They can also reduce the cost of living – by allowing easier transport of goods from or shopping trips to the mainland – and make development of new housing easier. They could, therefore, bring more key workers to the islands. Ultimately, impacts would also depend on political decisions – where health services or local authority functions have been centralised to the mainland, attraction of key workers will be of limited benefit unless they are decentralised again. Addressing population decline Alongside the policy support for economic growth in the Scottish islands there is strong support – and indeed a strong desire on the islands themselves – for population to grow. Many island communities face declining, ageing populations as young people leave (at least temporarily) for employment and social opportunities elsewhere and incomers are disproportionately retirees. The factors driving depopulation are partly inherent to any remote, thinly-populated community, but interact with capacity and reliability issues on the ferries, and our engagement strongly suggested that service improvements could have positive impacts: • Lack of affordable housing suitable for young workers and families. This is driven by demand as well as supply, with the islands being popular destinations for those looking to move when they retire and second home buyers. Geographic remoteness and thin labour markets make housing construction on the islands inherently more expensive, but improved ferry services would mitigate this and help bring forward new construction. 37 TAG unit 2.3. – employment effects, Department for Transport, May 2019. Link. Conventional appraisal as covered in this document would value tax revenue impacts of increased productivity or employment – if they can be demonstrated – but, “it should be assumed as a starting point that transport schemes are not able to increase net national employment.” (paragraph 3.2.4) 38 Affordable housing for key workers, Scottish Government, August 2015. Link. Page 80
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48 Centre for Economics and Business Research • Limited range of jobs (particularly graduate and/or well-paid jobs) locally or commutable from home. In the Clyde (including Dunoon and Kilcreggan as well as islands) and other locations close to the mainland like Mull or Sleat, Skye, better services could open up access to mainland jobs. • Social and leisure limitations of island life, and difficulties in getting to the mainland at short notice for sporting, leisure, or family events. Increased capacity makes it less likely that residents would have to book services weeks in advance, allowing a greater degree of spontaneity. • Difficulty getting to the mainland for medical appointments made at short notice (exacerbated by centralisation of NHS services) – this is particularly challenging for ill and elderly residents. Overall demographic trends are illustrated in Figure 19 and Figure 2039. Since 2000, three of the four council areas in the Hebridean and Clyde network have seen population decline, while the population of Scotland as a whole has grown 8%. Highland has seen faster growth – but this area is dominated by mainland communities including Inverness. When looking at current age distributions, all areas have a lot of 55 and overs and few young adults and young working- age people (17-34) compared to Scotland as a whole. Figure 19: Population indices for Scotland and selected council areas 1981-2020 (2000 = 100) Source: Cebr analysis Figure 20: Population by age, Scotland and selected council areas 2020 Source: Cebr analysis 39 Data from Population Estimates Time Series Data, National Records of Scotland, June 2021. Link. 90.0 95.0 100.0 105.0 110.0 115.0 120.0 19811983198519871989199119931995199719992001200320052007200920112013201520172019 Scotland Argyll and Bute Highland Na h-Eileanan Siar North Ayrshire 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Scotland Argyll and Bute Highland Na h-Eileanan Siar North Ayrshire 0 - 16 17 - 34 35 - 54 55 - 74 75+ Page 81
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49 Centre for Economics and Business Research In order to estimate the impact of improved services on island populations, we estimate the generalised cost savings which accrue to households by island40 and apply a migration elasticity41 which relates quality of life to residential choice. Resulting population impacts are shown in Table 24. These are estimated in terms of people then converted into households (according to average Scottish household size). Table 24: Population impacts Island People Households Coll and Tiree 18 8 Mull and Iona 49 23 Kerrera 0 0 Lismore 4 2 Jura and Colonsay 7 3 Islay 196 92 Gigha 3 1 Bute 99 46 Barra 35 16 Eriskay and South Uist 26 12 Benbecula 19 9 North Uist 24 11 Lewis and Harris 122 57 Small Isles 23 11 Skye and Raasay 3 1 Arran 375 175 Great Cumbrae 32 15 Total 1,034 483 Source: Cebr/Connected Economics modelling and analysis These results attempt to predict how improved ferry services will translate into people’s decisions to stay in or move to communities, some of which are very small. Therefore, impacts should be treated as very speculative – residential decisions are made over long periods of time and differences of one or two households either way would significantly change results for some islands. Realisation of population growth also depends on housing availability – either through regeneration of vacant, obsolete stock or new construction. Ferry reliability and capacity issues have been identified as a barrier to housing development across the network – though in theory improved services (especially for freight and business) should help to ease these constraints. Although these population impacts have been estimated independently of the employment impacts elsewhere, they are broadly consistent with them. In Scotland as a whole, the ratio of employment to population is 0.4942. The ratio of the estimated employment and population 40 By definition, tourist benefits do not accrue to island households, so these are not included. ‘Other’ journey benefits are weighted at 0.75, as this category includes travel to access shopping or services and visit friends and family, and seem more likely to accrue to islanders than mainlanders. Remaining journey purposes are weighted at 0.5. 41 The effect of expected income on individual migration decisions, National Bureau of Economic Research, March 2003. Link. Page 35: ‘Simulations of hypothetical local wage changes show that the elasticity of the relationship between wages and migration is roughly .5.’; therefore we use an elasticity of 0.5, thereby assuming that monetised generalised cost savings are equivalent to changes in income. 42 2,686,000 in employment (Labour market monthly briefing: June 2022; Link); population 5,466,000. Page 82
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50 Centre for Economics and Business Research impacts here (429 to 1,034) is 0.41, so slightly lower. Given the economic geography of islands, particularly in the Clyde, this is not surprising; some new residents may commute to the mainland full- or part-time, and some of the new population in places like Arran may be those who already work on the island but are unable or unwilling to live there (so they will be adding to population but not employment). Overall, given the islands’ current total population of a little over 55,000, this represents a population impact of 2% or so – given the relatively short timescale this would be a significant uplift. A confident and secure island future Improved ferry services therefore stand to support major improvements in island life and economies, by: • Supporting the growth of the tourism and whisky industries, and employment growth more generally • Growing the economy further through agglomeration and competition impacts • Making island life more appealing, combating depopulation trends and directly improving the lives of existing residents For the islands and islanders, these impacts go beyond what can be expressed in numbers. Island culture and heritage, including the Gaelic language, distinctive island produce like Islay whisky, and events like the HebCelt music festival, will be supported. Communities will be able to attract and retain more young people to work, start businesses, and raise children on the islands. Those from elsewhere will be more likely to visit the islands for pleasure, boosting their profile and reputation at home and abroad. In the long run, these factors could combine to kick-start a virtuous cycle of growth, investment, and renewal. This will build the case for further investment in ferry services in future. Page 83
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51 Centre for Economics and Business Research Appendix: Sensitivity testing Sensitivity tests adjust assumptions in the socio-economic modelling and present results based on these assumptions. This allows us to better understand the impact of different views of the future and of various factors in driving the core results. Summary results for the core scenario are presented alongside results for each sensitivity test, and the change that has occurred. Where impacts are focused on particular routes, summary results for those routes are also included. Increased reliability benefits/disbenefits Our core assumptions have a 20% generalised increase in unreliability (share of sailings cancelled or late) in the Pessimistic scenario and a 20% generalised decrease in the Optimistic scenario43. Further assumptions reflect the impact of new vessels and infrastructure improvements. This sensitivity test changes the core plus or minus 20% to plus or minus 25%, increasing the reliability impacts in each case. Table 25: Reliability benefits sensitivity test Core results Sensitivity test Difference Demand Pessimistic 5,701,522 5,670,545 -30,977 Optimistic 6,050,409 6,080,514 30,106 Growth 6.1% 7.2% 1.1% Changes in GCs, £k £67,677 £79,668 £11,991 Agglomeration, £k £1,488 £1,761 £273 Competition, £k £1,203 £1,425 £221 Employment 429 508 78 As % of current 1.7% 2.0% 0.3% of which tourism 212 247 36 of which whisky production 46 51 6 Earnings, £k £11,873 £14,036 £2,163 of which tourism £4,307 £5,034 £727 of which whisky production £1,596 £1,802 £206 Population 1,034 1,228 194 As % of current 1.8% 2.2% 0.3% Source: Cebr/Connected Economics modelling and analysis This increases impacts by about one-sixth across the board, demonstrating the important role of reliability in determining benefits. 43 This does not mean that cancellations or lateness increase or decrease by 20 percentage points, but that existing rates are adjusted by 20% as a percentage of original value. For example a route with 10% of sailings cancelled at present would see this change to 12% in the Pessimistic and 8% in the Optimistic scenario. Page 84
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52 Centre for Economics and Business Research No exogenous demand growth Our core assumptions have demand in both scenarios growing between 2022 and 2032 according to expected total incomes growth. This is based on forecast population growth to 2032 and extrapolation of recent growth rates in gross disposable household income. Due to declining population, this implies a small fall in demand between now and 2032, before other assumptions like new vessels or changes in reliability are accounted for. This sensitivity test simply assumes away any exogenous growth, i.e. baseline demand in the future is the same as it is today. Table 26: No exogenous demand growth sensitivity test Core results Sensitivity test Difference Demand Pessimistic 5,701,522 5,802,648 101,126 Optimistic 6,050,409 6,142,570 92,161 Growth 6.1% 5.9% -0.3% Changes in GCs, £k £67,677 £66,339 -£1,338 Agglomeration, £k £1,488 £1,491 £3 Competition, £k £1,203 £1,156 -£48 Employment 429 430 1 As % of current 1.7% 1.7% 0.0% of which tourism 212 207 -4 of which whisky production 46 31 -15 Earnings, £k £11,873 £11,898 £24 of which tourism £4,307 £4,222 -£85 of which whisky production £1,596 £1,076 -£519 Population 1,034 1,013 -21 As % of current 1.8% 1.8% 0.0% Source: Cebr/Connected Economics modelling and analysis The impact of this assumption is minimal. Demand growth is marginally lower, suggesting that higher demand in the sensitivity test interacts with capacity constraints to reduce potential passenger growth. Nevertheless, changes overall are negligible, demonstrating that these tweaks to the exogenous growth assumptions have very little bearing on results. Page 85
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53 Centre for Economics and Business Research New Islay vessels in Pessimistic scenario At time of writing, the two new Islay vessels have been ordered but are not under construction (like the Glen Sannox or Hull 802) or already built (like the Loch Frisa). Therefore, they were not included in the Pessimistic scenario. This sensitivity test assumes that they are delivered and enter service in both scenarios. Table 27: Islay vessels in Pessimistic scenario sensitivity test Core results Sensitivity test Difference Demand Pessimistic 5,701,522 5,726,529 25,007 Optimistic 6,050,409 6,041,574 -8,834 Growth 6.1% 5.5% -0.6% Changes in GCs, £k £67,677 £60,300 -£7,377 Agglomeration, £k £1,488 £1,366 -£122 Competition, £k £1,203 £980 -£223 Employment 429 396 -33 As % of current 1.7% 1.6% -0.1% of which tourism 212 195 -16 of which whisky production 46 15 -30 Earnings, £k £11,873 £10,958 -£916 of which tourism £4,307 £3,978 -£329 of which whisky production £1,596 £534 -£1,062 Population 1,034 910 -124 As % of current 1.8% 1.6% -0.2% Source: Cebr/Connected Economics modelling and analysis Table 28: Islay vessels in Pessimistic scenario sensitivity test - focus on Kennacraig - Islay routes Core results Change in demand GC savings (£k) Passenger journeys % Kennacraig - Port Ellen 29,204 22.3% £6,328 Kennacraig - Port Askaig 17,432 13.7% £5,022 Sensitivity test Change in demand GC savings (£k) Passenger journeys % Kennacraig - Port Ellen 6,888 4.8% £2,151 Kennacraig - Port Askaig 6,951 5.0% £2,079 Source: Cebr/Connected Economics modelling and analysis The effect of this assumption is that, for Islay services, the principal difference between the Pessimistic and Optimistic scenarios is the generalised improvement in reliability resulting from greater redundancy and interoperability in the wider fleet – in either case two new vessels are introduced and the MV Hebridean Isles is retired. This reduces impacts of the scenario Page 86
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54 Centre for Economics and Business Research change significantly; demand growth across the network falls from 6.1% to 5.5%, user benefits impact is £7.4 million per year lower, and whisky related impacts are substantially lower. On the Kennacraig – Islay routes all benefits fall by approximately two thirds. Of course, this does not reflect a worsening of conditions, just a smaller change between the two scenarios as most of the benefits are now realised in the pessimistic scenario. Page 87
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55 Centre for Economics and Business Research Appendix: Islanders’ feedback During the meetings held throughout the study, the project team heard a range of feedback, both positive and negative, on CalMac services. Although not all within the direct scope of our research, this feedback is briefly reflected here. The inclusion of feedback below does not indicate the authors’ endorsement or otherwise of the comments made. Overarching issues The below issues were widely identified by stakeholders across the network. • Poor interaction with public transport services – either that bus or rail services to and from ports did not coincide well with ferries, or that where they do there is little flexibility when ferries are delayed. This could lead to journeys being made by car instead of public transport or to extended journey times.. • Weather-related cancellations were occurring in conditions under which respondents felt sailings would once have gone ahead. • Comments about the service provided by port and vessel staff was overwhelmingly positive – for instance with regard to their management of services during periods of disruption and flexibility in getting locals onto services at short notice during periods of disruption. • Communication between CalMac itself and service users, however, was perceived less well, and was felt to have deteriorated in recent years as the organisation became more centralised in Gourock. • Some stakeholders favoured a move away from the ‘big boat’ model to a larger number of smaller boats operating more frequent, flexible services which would be less disrupted by one breakdown. • Island residents widely felt that the current booking system does not recognise that they sometimes need to travel at short notice, e.g. for medical appointments or family emergencies, and that a system should be put in place to facilitate this – e.g. reserving a proportion of tickets for residents, health/social care needs, or booking at short notice. Transportation of freight • Certain dangerous goods (e.g. oxygen, petrol, gas, hay) cannot be transported on closed-deck vessels – therefore when these are substituted for open-deck vessels at short notice the supply of these goods to islands is disrupted. • Live animals in transport are particularly time-sensitive – both due to animal welfare issues and because of inflexible market times. Some stakeholders reported positively that these vehicles were prioritised during disruption, though others had been unable to make their journeys as planned. • On the Small Isles, where freight is handled by CalMac directly, a few specific issues were identified: o The refusal (by Transport Scotland) of extra fridge storage at Mallaig means storage for food continues to be limited. o Visitors are only allowed to bring 14kg of luggage; given the need to be relatively self-sufficient when travelling to the Small Isles this can be challenging, and a solution might be to allow them to pay to bring extra. o CalMac increasingly relies on volunteer help to unload freight, rather than for instance keeping a forklift on the ferry. Especially when goods have to be unloaded quickly before the next departure, this can be difficult. o Transportation of bikes and kayaks by CalMac is not guaranteed – this poses challenges for the development of sustainable tourism on the Small Isles. Page 88
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56 Centre for Economics and Business Research o Difficulties in transport of dangerous goods, for instance multiple types cannot transported at once, and there are also limitations if a lot of passengers on board. Route-specific issues • The lack of a service between Coll/Tiree and Mull was raised by stakeholders on those islands. Proposed solutions included the use of Mull as a land bridge with through bus services. • Where vessels include a mezzanine deck, this was not always used due to time/staff constraints, effectively reducing capacity. • The ‘non-landing’ tickets formerly offered by CalMac were used by those who, for instance, wanted to go whale-watching around the Small Isles without disembarking. These provided a contribution to CalMac revenues without using capacity on the vehicle deck. Accessibility Potential improvements for those with disabilities or special needs were identified, including44: • Allowing a last-minute check-in and rapid access rather than boarding last. • More accessible disabled lanes in the vehicle queue – at present they are often less accessible – and not boarding disabled passengers on the mezzanine deck, which is narrow and therefore difficult to use with a wheelchair. • Allowing blue badge holders to book online and obtain the 25% discount on a vehicle ticket which CalMac offers on certain routes, rather than having to book by phone. • Quiet places on ships, e.g. for the use of those prone to sensory overload. • Improving harbour infrastructure and current vessel for the Gourock-Kilcreggan service, which are challenging for those in wheelchairs. 44 These were mostly with reference to the Ullapool-Stornoway service, but may be applicable elsewhere. Page 89
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57 Centre for Economics and Business Research Appendix: List of consultees The below table lists the consultees who contributed to this study through discussions with the project team, either through phone or video calls, or in-person meetings which took place during the fieldwork trips in Phase 2. These discussions with representatives of businesses, public services, charitable organisations, and regional development bodies were invaluable in ensuring that this work reflected the specific context, challenges, and opportunities of the islands as closely as possible. The project team is grateful for their time and contributions, as well as those of ferry users who spoke to us and completed surveys. Name Organisation(s)/role(s) Broad geography Location or remit Angus Campbell Ferries Community Board Chair National/regional National/regional Chris Wilcock Transport Scotland National/regional National/regional Douglas Cowan Highlands and Islands Enterprise National/regional National/regional Lucinda Gray Highlands and Islands Enterprise National/regional National/regional Lucy Sumsion NFU Scotland; Argyll and Bute Economic Resilience Forum National/regional National/regional Morag Goodfellow Highlands and Islands Enterprise National/regional National/regional Nicky Sobey Highlands and Islands Enterprise National/regional National/regional Richard Hadfield Transport Scotland National/regional National/regional Eoin MacNeil Ferries Community Board Member Outer Hebrides Barra Dave Adey Benbecula Community Council Outer Hebrides Benbecula Kate MacDonald North Uist Distillery Outer Hebrides Benbecula Margaret Mackenzie Harris Transport Forum Outer Hebrides Harris Rhoda Campbell Ferries Community Board Member Outer Hebrides Harris Ida Holmstrom Ferries Community Board Member Outer Hebrides Lewis Joe Mahony An Lanntair Outer Hebrides Lewis Murdo Maclean Ferries Community Board Member Outer Hebrides Lewis Neil Mackinnon Galson Estate Trust Outer Hebrides Lewis Anne MacLellan North Uist Community Council Outer Hebrides North Uist Joan Ferguson North Uist Community Council Outer Hebrides North Uist Claire Morris Autism Eilean Siar Outer Hebrides Outer Hebrides Erica Clark & youth representatives Western Isles Council Outer Hebrides Outer Hebrides Darren Taylor Stòras Uibhist Outer Hebrides South Uist Gail Robertson Ferries Community Board Member Outer Hebrides Uist Joanna Peteranna Ferries Community Board Member Outer Hebrides Uist Robert Currie Scottish Salmon Company Outer Hebrides Uist Kevin Peach Ferries Community Board Member Outer Hebrides Ullapool Isebail MacKinnon Small Isles Community Council Inner Hebrides Canna, Small Isles Alison Jones Development Coll Inner Hebrides Coll Kirsty MacFarlane Ferries Community Board Member Inner Hebrides Coll Camille Dressler Ferries Community Board Member, Small Isles Community Council Inner Hebrides Eigg, Small Isles Antonia Baird Argyll and Bute Council Inner Hebrides Mid Argyll, Kintyre and the Isles Ruth MacEwen Small Isles Community Council Inner Hebrides Muck, Small Isles Page 90
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58 Centre for Economics and Business Research Name Organisation(s)/role(s) Broad geography Location or remit Andy Knight TSL Contractors Inner Hebrides Mull Brendan Reade Isle of Mull Cheese Inner Hebrides Mull Cara Gilbert Tobermory Distillery Inner Hebrides Mull Naomi Knight TSL Contractors Inner Hebrides Mull Olivier MacLean Tobermory Distillery Inner Hebrides Mull Elizabeth Ferguson Ferries Community Board Member (former) Inner Hebrides Mull and Iona Finlay MacDonald Mull & Iona Ferry Committee Inner Hebrides Mull and Iona Joe Reade Mull & Iona Ferry Committee Inner Hebrides Mull and Iona Colin Morrison Turus Mara - Staffa and Treshnish tours Inner Hebrides Mull and Ulva Duncan MacNeill Furan Gaelic Centre Inner Hebrides Oban Becky Hothersall Argyll and Bute Council Inner Hebrides Oban, Lorn and the Isles Fliss Fraser Small Isles Community Council Inner Hebrides Rum, Small Isles Ian Sargent NatureScot Inner Hebrides Rum, Small Isles Alex Stoddart Armadale Castle and Gardens Inner Hebrides Skye Anne Gracie Gunn Sonas Hospitality Inner Hebrides Skye Donald Angie MacLennan Sabhal Mòr Ostaig, National Centre for Gaelic Language and Culture Inner Hebrides Skye Rob Ware Ferries Community Board Member (former) Inner Hebrides Skye Alastair MacInnes Farm owner (beef, pork and lamb) Inner Hebrides Tiree Donnie MacInnes Ferries Community Board Member Inner Hebrides Tiree Dr John Holliday Tiree Community Council Inner Hebrides Tiree Robert Trythall Commercial marine expert Inner Hebrides Tiree Fergus Murray Argyll and Bute Council; Argyll and Bute Economic Resilience Forum Clyde and South Argyll and Bute Ishabel Bremner Argyll and Bute Council; Argyll and Bute Economic Resilience Forum Clyde and South Argyll and Bute Jane MacLeod MacLeod Construction; Argyll and Bute Economic Resilience Forum Clyde and South Argyll and Bute John Glen Bute Fabrics; Argyll and Bute Economic Resilience Forum Clyde and South Argyll and Bute Bill Calderwood Ferries Community Board Member Clyde and South Arran Chris Attkins Arran Ferry Action Group Clyde and South Arran David Henderson Kilpatrick Farm Clyde and South Arran Graham Omand Isle of Arran Distillery Clyde and South Arran Linda Johnston Auchrannie Resort Clyde and South Arran Peter Dunn Isle of Arran Distillery Clyde and South Arran Ruth Betley North Ayrshire Health and Social Care Partnership Clyde and South Arran Sheila Gilmore Visit Arran Clyde and South Arran Stewart Bowman Isle of Arran Distillery Clyde and South Arran Tom Tracey Arran Recovery Group Clyde and South Arran Declan Brennan North Ayrshire Council Clyde and South Arran and Cumbrae Louise Kirk North Ayrshire Council Clyde and South Arran and Cumbrae Sarah Baird North Ayrshire Council Clyde and South Arran and Cumbrae David Herriot Ferries Community Board Member Clyde and South Bute and Cowal Anne Horn Argyll and Bute Council Clyde and South Campbeltown Page 91
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59 Centre for Economics and Business Research Name Organisation(s)/role(s) Broad geography Location or remit John Armour Campbeltown Ferry Committee; Argyll and Bute Council Clyde and South Campbeltown Angus Campbell Ferries Community Board Member Clyde and South Cumbrae Canon Alec Boyd Cumbrae Community Council; Cumbrae Churches Clyde and South Cumbrae Crawford Gillan Cumbrae Community Council; Cumbrae Resilience Team Clyde and South Cumbrae Eleanor Brown Cumbrae Community Council; Cumbrae Forum Clyde and South Cumbrae Graham Wallace Cumbrae Community Council Clyde and South Cumbrae Jackie Wilson Cumbrae Community Council; youth representative Clyde and South Cumbrae Leslie Stringer Cumbrae Community Council; North Coast Locality Partnership Clyde and South Cumbrae Lisa Christie Cumbrae Community Council Clyde and South Cumbrae Michael Breslin South Cowal Community Council Clyde and South Dunoon Willie Lynch Dunoon Community Council (former) Clyde and South Dunoon Allan Logan Bruichladdich Distillery Clyde and South Islay Ben Mundell Mundells Haulage; Islay Ferry Committee Clyde and South Islay David Turner Bowmore Distillery Clyde and South Islay Emma Clark Explore Islay and Jura; Islay Ferry Committee Clyde and South Islay Garry MacLean NFU Group Secretary; Islay Ferry Committee Clyde and South Islay Islay McEachern McEachern Bros Construction; Islay Ferry Committee Clyde and South Islay Jim Porteous Ferries Community Board Member Clyde and South Islay Paul Graham Ardnahoe Distillery Clyde and South Islay Ray Lafferty Museum of Islay Life Clyde and South Islay Christine Murdoch Cove & Kilcreggan Community Council Clyde and South Kilcreggan Nick Davies Cove & Kilcreggan Community Council Clyde and South Kilcreggan Ian MacFarlane Ferries Community Board Member Clyde and South Kintyre Page 92
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60 Centre for Economics and Business Research Appendix: Island GVA by broad sector Table 29 shows the GVA estimates by sector used for the estimates of agglomeration, based on the island profiles used for the economic impact modelling. Table 29: Estimated GVA by broad sector used for agglomeration estimates GVA, £m Manufacturing % Construction % Consumer services % Producer services % Coll and Tiree 20.6 21.5% 7.2% 21.9% 17.1% Mull and Iona 67.6 41.0% 3.9% 30.0% 3.9% Kerrera 0.4 20.7% 24.1% 34.2% 0.0% Lismore 3.1 33.2% 13.5% 27.6% 0.0% Jura and Colonsay 8.1 27.9% 6.5% 32.9% 0.0% Islay 104.3 46.7% 5.2% 18.1% 9.9% Gigha 2.3 53.3% 7.3% 13.3% 0.0% Bute 114.7 39.8% 3.3% 13.7% 16.5% Barra 19.0 24.7% 3.3% 42.8% 3.3% Eriskay and South Uist 29.7 21.8% 13.1% 23.7% 19.5% Benbecula 55.8 4.6% 3.4% 11.3% 57.0% North Uist 16.4 31.9% 3.7% 36.2% 8.3% Lewis and Harris 388.5 12.9% 5.9% 18.5% 18.9% Small Isles 3.6 37.4% 0.0% 24.0% 10.0% Skye and Raasay 255.3 20.6% 5.5% 25.4% 23.6% Arran 90.7 27.6% 9.1% 34.0% 3.9% Great Cumbrae 12.4 6.7% 4.0% 18.2% 0.4% Source: ONS, and Cebr analysis Total percentages in the table do not sum to 100% because there are sectors not considered subject to agglomeration economies: Public administration and defence; Education; Human health and residential care activities; Social work activities; Arts, entertainment and recreation; Membership organisations; repair of household goods; Other personal service activities; Households as employers and own use production. The four broad sectors used are defined as the following combinations of sectors by the Department for Transport: • Manufacturing: o Agriculture, mining, electricity, gas, water and waste o Manufacture of food, beverages, textiles and clothing o Manufacture of wood, petroleum, chemicals and minerals o Manufacture of metals, electrical products and machinery o Other manufacturing, repair and installation • Construction: o Construction of buildings o Civil engineering o Specialised construction activities • Consumer services: o Motor trades o Wholesale trade o Retail trade Page 93
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61 Centre for Economics and Business Research o Land, water and air transport o Warehousing, transport support, postal and courier activities o Accommodation and food service activities • Producer services: o Information and communication o Financial and insurance activities o Real estate activities, excluding imputed rental Page 94
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62 Centre for Economics and Business Research Appendix: Full results tables Bespoke Regional Multipliers Type I Multipliers Table 30. Bespoke regional Type I multipliers for CalMac Type I Multipliers – Indirect Impacts Turnover GVA FTE Employment Employee Compensation Coll and Tiree 1.00 1.00 1.00 1.00 Mull and Iona 1.01 1.01 1.01 1.00 Kerrera and Gallanach 1.00 1.00 1.00 1.00 Jura and Colonsay 1.00 1.00 1.00 1.00 Islay 1.02 1.02 1.02 1.01 Gigha 1.00 1.00 1.00 1.00 Bute 1.08 1.08 1.09 1.06 Barra 1.00 1.00 1.00 1.00 Eriskay and South Uist 1.00 1.00 1.00 1.00 Benbecula 1.00 1.01 1.01 1.00 North Uist 1.00 1.00 1.00 1.00 Lewis and Harris 1.11 1.14 1.18 1.10 Small Isles 1.00 1.00 1.00 1.00 Skye and Raasay 1.01 1.01 1.02 1.01 Arran 1.03 1.04 1.04 1.02 Great Cumbrae 1.00 1.01 1.01 1.00 Source: CalMac, ONS, and Cebr analysis Page 95
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63 Centre for Economics and Business Research Type II Multipliers Table 31. Bespoke regional Type II multipliers for CalMac Type II Multipliers – Induced Impacts Turnover GVA FTE Employment Employee Compensation Coll and Tiree 1.10 1.14 1.21 1.10 Mull and Iona 1.12 1.15 1.22 1.11 Kerrera and Gallanach 1.11 1.14 1.21 1.10 Jura and Colonsay 1.13 1.17 1.25 1.12 Islay 1.12 1.15 1.22 1.11 Gigha 1.10 1.13 1.20 1.09 Bute 1.18 1.21 1.28 1.15 Barra 1.08 1.10 1.16 1.07 Eriskay and South Uist 1.10 1.14 1.22 1.10 Benbecula 1.11 1.15 1.23 1.11 North Uist 1.11 1.14 1.23 1.10 Lewis and Harris 1.21 1.27 1.38 1.19 Small Isles 1.14 1.18 1.18 1.10 Skye and Raasay 1.20 1.27 1.27 1.15 Arran 1.26 1.33 1.20 1.13 Great Cumbrae 1.21 1.27 1.15 1.10 Source: CalMac, ONS, and Cebr analysis Page 96
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64 Centre for Economics and Business Research Regional Aggregate Economic Impacts Gross Value Added (GVA) Table 32. Aggregate regional economic footprint of CalMac, GVA (£’000), FY 2019-20 GVA (£'000) Island Direct impact Indirect impact Induced impact Aggregate impact Coll and Tiree £1,268 £1 £173 £1,442 Mull and Iona £3,249 £28 £464 £3,742 Kerrera and Gallanach £238 £0 £33 £271 Jura and Colonsay £475 £1 £79 £555 Islay £2,219 £41 £299 £2,559 Gigha £396 £1 £52 £449 Bute £3,249 £266 £411 £3,926 Barra £4,067 £1 £415 £4,482 Eriskay and South Uist £3,050 £3 £415 £3,468 Benbecula £593 £4 £82 £679 North Uist £1,610 £2 £223 £1,835 Lewis and Harris £11,691 £1,673 £1,492 £14,856 Small Isles £155 £0 £28 £184 Skye and Raasay £2,225 £32 £568 £2,824 Arran £1,111 £40 £329 £1,480 Great Cumbrae £85 £1 £23 £109 Source: CalMac, ONS, and Cebr analysis Page 97
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65 Centre for Economics and Business Research Employment Table 33. Aggregate regional economic footprint of CalMac, FTE Employment, FY 2019-20 Employment (number of FTE jobs) Island Direct Impact Indirect Impact Induced Impact Aggregate Impact Share of region employment supported by CalMac (%) Coll and Tiree 14 0 3 17 3.9% Mull and Iona 36 0 8 44 3.0% Kerrera and Gallanach 3 0 1 3 1.5% Jura and Colonsay 5 0 1 7 3.4% Islay 25 1 5 30 1.6% Gigha 4 0 1 5 2.9% Bute 36 3 7 46 2.2% Barra 42 0 7 49 10.9% Eriskay and South Uist 32 0 7 39 6.4% Benbecula 6 0 1 8 0.8% North Uist 17 0 4 21 4.5% Lewis and Harris 122 22 25 169 1.9% Small Isles 3 0 0.5 3 1.2% Skye and Raasay 38 1 10 48 0.9% Arran 34 1 6 41 2.0% Great Cumbrae 3 0 0.4 3 0.9% Source: CalMac, ONS, and Cebr analysis Page 98
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66 Centre for Economics and Business Research Employee Compensation Table 34. Aggregate regional economic footprint of CalMac, Employee Compensation (£’000), FY 2019-20 Employee Compensation (£'000) Island Direct impact Indirect impact Induced impact Aggregate impact Coll and Tiree £1,012 £0 £98 £1,110 Mull and Iona £2,594 £12 £263 £2,868 Kerrera and Gallanach £190 £0 £19 £209 Jura and Colonsay £380 £1 £44 £425 Islay £1,771 £20 £169 £1,960 Gigha £316 £0 £29 £346 Bute £2,594 £161 £233 £2,987 Barra £3,147 £1 £235 £3,382 Eriskay and South Uist £2,360 £1 £235 £2,597 Benbecula £459 £2 £46 £508 North Uist £1,246 £1 £126 £1,373 Lewis and Harris £9,048 £910 £844 £10,802 Small Isles £157 £0 £16 £174 Skye and Raasay £2,256 £21 £321 £2,598 Arran £1,692 £37 £186 £1,916 Great Cumbrae £130 £1 £13 £144 Source: CalMac, ONS, and Cebr analysis Page 99
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MAKI Community Planning Group As members of the Community Planning Group will know, Fyne Homes has significant housing stock across the Mid Argyll & Kintyre area: Area 1apt 2apt 3apt 4apt 5apt+ Total Mid Argyll 0 75 265 90 10 440 Kintyre 0 57 93 95 2 247 Fyne Homes AGM was held on 21st October and James McMillan was re-elected as Chair, with Shirley MacLeod re-elected as Vice Chair of the Association. The Association’s Annual Report is now published and available at AnnRep2022 FinalFinal.pub (fynehomes.org.uk). The report advises on key data regarding outputs for the Association in the financial year 2021/22. Lettings: In 2021/22 we let 155 properties representing a 9.5% turnover in stock, which was similar to the previous year. We also facilitated 4 mutual exchanges. Our highest turnover area was in Bute at 11%, and our one and two bedroom properties represented 97% of all those properties relet: Bedsit 1 bed 2 bed 3 bed 4 bed Total Kintyre 0 9 8 3 0 20 Mid Argyll 0 10 22 7 0 39 Maintenance: 2021/22 saw our Technical Services Team working extremely hard to reschedule the backlog of non-essential repairs following the Covid 19 Pandemic. Spent £ 3,366,429 maintaining and upgrading the housing stock Issued 3679 works orders Factored 294 owner’s properties Fyne Homes spent £3,366,429 maintaining and upgrading its housing stock. Total Spend Reactive £1,128,818 Page 101 Agenda Item 7
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Planned/Cyclical £559,129 Capital Improvements £1,678,482 Total £3,366,429 Capital improvement works involve the replacement or improvement of components within our properties. 2021/22 saw a step up in the volume of Capital Investment works programmed from the previous year due to lockdown and Covid restrictions. Mid Argyll Kitchen Replacements, Central Heating & Rewiring to 26 properties Kintyre Kitchen Replacements, Central Heating & Rewiring to 15 properties Fyne Futures Fyne Homes recognise the benefits for supporting employment and training initiatives for our communities. Investing in Communities funding from Scottish Government has enabled us to develop and deliver an employment training programme, which supports waged employment placements for those previously unemployed, as well as supporting local organisations to deliver a range of local services. Local social enterprise Inspiralba lead this activity for us, working with a range of local community based organisations, including; South Kintyre Development Trust, Calums Cabin, Dunoon Burgh Hall, Shopperaide, Wee Toon Environmental Solutions and Kintyre Recycling. Our employment and training activity has supported 20 waged employability placements from April 2021 – March 2022. Feedback from participants and employing organisations is very positive with 17 of the 20 participants who have completed their placements progressing to longer term employability or training. Re-Style Furniture Project (Bute) 32,529 kilograms of resources diverted from landfill 20,800 kilograms of textiles exported for reuse 11,729 kilograms of household items contributing to Bute’s circular economy Car Bute From May 2021 – February 2022 A shared resource for our community 96 journeys 8301 miles Page 102
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Bike Bute A new option for low carbon travel 481 journeys 12,236.4 miles Bute Produce From May 2021 – March 2022 21 young people supported with skills development 7,605 lbs (3,449 kg) of local produce 13,782 portions of veggies, fruit & herbs 1521 green boxes delivered Fyne Energy 3 Wind Turbines situated in Glenbarr Profits are distributed between Fyne Homes, Fyne Futures and the Community of Glenbarr Iona MacPhail Chief Executive Fyne Homes Ltd 81 Victoria Street Rothesay Isle of Bute PA20 0AP Tel: 0345 6077117 www.fynehomes.org.uk Page 103
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Climate Change Working Group Date: 24 October 2022 Climate Change Working Group Highlight Report Argyll and Bute Climate Action 1.0 Executive Summary This CPP sub-group, known as the Climate Change Working Group are planning the production of a Climate Change Action Plan for Argyll and Bute. The Action Plan is proposed to be produced by employing a Climate Change Project Manager to lead the process. The Climate Change Working Group is currently focussed on attracting a funding package to carry out this work. 2.0 Highlight Report 2.1 Action Plan The purpose of the Action Plan is to establish a region-wide climate risk assessment and to develop an integrated set of adaptation, mitigation and engagement actions. The proposed post of Climate Change Project Manager will bring organisations, businesses and communities together to develop a shared vision and understanding of climate change risks and opportunities across the Argyll and Bute region. It will identify priorities for communities, areas and sectors that will establish where (both spatially and thematically) and how the region can increase resilience and adapt, mitigate and engage on climate change issues. It will identify, but not reproduce, climate change work either already happening or part of an organisation or business’s own responsibilities. 2.2 Governance Governance arrangements and structures have been developed in order to support the Climate Change Project Officer post. See previous highlight report for details. 2.3 Funding The Climate Change Working Group are currently pulling together a funding package to support the post of the Climate Change Project Manager. Some funds have Page 105 Agenda Item 8a
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already been forthcoming from CPP partners, and we are now pursuing external funding sources to complete the planned budget. The cost of a Project Manager post is estimated to be in the region of £120,000 over two years, which would include the salary of an appropriately qualified climate leader, associated employer costs, T&S costs, etc. Subsequent to previous calls for funding contributions, we have two firm contributions from partners: £20,000 NHS Highland - Argyll & Bute Health and Social Care Partnership £50,000 Argyll and Bute Council We are extremely grateful to these partners for their contributions. However, we currently have a shortfall of £50,000 towards our target of £120,000. The wider current financial difficulties mean that further contributions from partners are unlikely, and so are additionally looking at external funding sources for the remainder of the funding. 3.0 Summary 1. We propose producing a strategic Action Plan process as the best, and most thorough, way to address the climate emergency in Argyll and Bute. 2. We have an approved governance arrangement for the Climate Change Project Manager post. 3. We are continuing to pursue funding options for the project. Stan Phillips, Chair, CPP Climate Change Working Group For more information, please contact: Stan Phillips, Operations Manager, NatureScot stan.phillips@nature.scot Page 106
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C Community Planning Partnership Area Committee Report Time for Change Argyll and Bute October/ November 2022 https://timeforchangeargyllandbute.org/ https://www.facebook.com/timeforchangeargyllandbute/ As a group of residents concerned about climate change, TfC continues to meet fortnightly on zoom, raising awareness and campaigning on climate change. Members are currently pressing politicians to stand against expansion of oil and gas in the latest licensing round. TfC were please to welcome 60 plus residents, MSPs and Councillors to an in person Land and Sea event in Lochgilphead to listen to speakers and explore around a dozen stalls showing the good work around Argyll. https://timeforchangeargyllandbute.org/land-and-sea-event-goes-swimmingly/ RESILIENCE As a group we are increasingly concerned with need to build resilience in all areas and communities in Argyll and Bute. There was a great response from A&B Council, Public Sector Partners, the Third Sector and indeed neighbours and friends during the covid epidemic. People and Organisations at all levels are exhausted and this may in part reflect the number of Community Councils that will no longer be or are quorate in the 2022-2026 cycle. Unfortunately the current economic, energy and climate situation is almost certain to require another winter of pulling together. We ask those listening, as a Planning Partnership to think and build in, a longer term and broader view than just this winter. To use the difficulties we will face as a feed into cooperative strategic planning for what is acknowledge as the climate crisis and the need for community resilience. Public Sector Bodies are likely to be ahead within their own parameters and hopefully can and are building partnerships. Outwith this, in communities and in some third sector organisations there is lack of knowledge and surety as to what can be done or is allowed to be done. A great deal of resilience comes simply from knowing who can be turned to, who has capacity or access what is needed. Many Community Councils and community groups and organisations kept going through covid, with the use of teams or zoom but others either didn’t have the technical capacity or know what was ok, to keep in the way of data and email contacts etc. Our world is built around communication, can communities in whatever form build a resilient back up. Think of the recent instances where communities have been left stranded, to their own devices and do a ‘what if’ scenario. On the 20th Oct 2022 two cables carrying internet and telephone and mobile services to Shetland telephone were cut and there was potential for other services to be at risk. A major incident was declared. Weather events such as storm Arwen (Dec 2021) are likely to become more common. This brought down power lines, communications, closed roads and left many in the north-east on their own with no services and no way of calling for help or knowing who was in need. The inter connector to the Western Isles fractured in 2020, power and communications were lost. Due to the cable fault power was neither available from the GRID or was able to be exported, income from community wind farm enterprises was lost and polluting back-up diesel generators Page 107 Agenda Item 8b
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installed for around a year. https://renews.biz/64100/call-for-upgrade-to-failed-western-isles- interconnector/ BT has paused the national roll out (scheduled for 2025) of VOIP (voice over internet protocol) which works through broadband but many of us have been switched already and are vulnerable to power and internet outage. BT has admitted that they have more work to do on getting better back- up solutions in place when storms and power cuts disrupt the service. SPNetworks are beginning to install monitors but currently don’t know there is a power cut or how wider spread it is until enough of us call 105 to report it. If mobile phones are out of charge or towers are down we are on our own. E.g. Climate Ready Loch Ken in rural Galloway listed tractors and power saws, who had freezers or open fires etc, to provide clearing for storm or flood or snow or places where people could safely gather and share. This is a 10-year plan, we may need to react sooner. Climate change is approaching more rapidly than we think and world and national events are upon us now. https://lochken.org.uk/lochkenplan/ Warm spaces are opening to help communities through the winter energy crisis, could these be hubs for information to be permissively collected, who has a landline, what resources are locally available. This is not a harbinger of doom but an ask for everyone to think ahead strategically, not easy when fire fighting in a crisis and to ask at every turn will this action exacerbate or mitigate climate change, solve or promote problem in the future. Page 108
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Argyll and Bute Community Planning Partnership Mid Argyll, Kintyre and the Islands Area Community Planning Group Wednesday 2nd November 2022 Partner Update – for the foodbanks of Mid Argyll, Kintyre and the Islands Summary The purpose of this report is to make partners aware of the foodbanks of the area and the diversity of work and approaches they take. It also shows how they link into broader anti-poverty work. Introduction: 1. There are 4 foodbanks in MAKI. These are located in Lochgilphead, Islay, Tarbert and Campbeltown, and all are members of the Argyll and Bute Community Food Forum. Argyll and Bute Community Food Forum was founded in 2019 and acts as an umbrella group to support the foodbanks and food projects of the area. It is facilitated by Bute Advice Centre. 2. The Independent Food Aid Network (IFAN) represents foodbanks throughout the UK, with over 550 members. Campbeltown and Kintyre Foodbank is the only member in MAKI and there are 4 other members in Argyll and Bute. 3. Foodbanks can make referrals to the Argyll and Bute Flexible Food Fund . This ensures that families with a genuine need are properly assessed for support and receive professional help. Foodbanks are also good at making appropriate referrals to a wide variety of sources of support. They all have copies of “Do You Have Money Worries” handbook that contains a wealth of information on sources of support and self-help. 4. Foodbanks in MAKI are resourceful and some can support families not just with food, but also nappies and baby food, sanitary products, coal and pet food. 5. Foodbanks are anticipating an increase in demand following the cost of living crisis. 6. The more remote locations in MAKI may not always have easy access to a foodbank or to emergency food relief. What Is The Context For This Need? 7. Weekly food, clothing and household goods costs are higher in the islands and remote rural Scotland, compared to urban areas in the UK.i A third of households in remote rural areas are classed as 'extreme fuel poor', compared to only 12% in accessible rural areas and 11% in the rest of Scotland. A 2021Scottish Government report estimates that the minimum cost of living in remote rural Scotland is between 15% and 30% higher than urban parts of the UK – mainly fuel use. Page 109 Agenda Item 10a
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8. It is estimated that 18.9% of children in Argyll live in poverty (at 2020/21) or approximately 2325 children. 9. The Scottish Government noted, in their January 2022 consultation on ending the need for foodbanks, that their purpose is crisis response and that food parcels cannot provide full dietary, social and cultural needs and preferences. They assert that the primary driver of food insecurity and the need for foodbanks is insufficient and insecure incomes. Anecdotally, some local foodbanks suggest that the main body of their users are families where one family member has a medical diagnosis or single older people, mainly men. Others, however report a complete mix from the population. 10. The cost of living crisis presents both uncertainty and increasing need for individuals and community organisations. Front line charities are reporting increased demand and new users, while at the same time seeing reduced donations and higher costs for themselves. The Foodbanks or projects of Mid Argyll, Kintyre and the Islands: 1. MID ARGYLL: 1.1 MOMA (Moving On Mid Argyll) operate in the mid Argyll area and distribute food parcels via referrals from a wide variety of partner agencies, including Social Work, Citizen’s Advice Bureau, Carr Gomm, Shelter, MECOPP, the mental health team, as well as self-referrals. They don’t have premises so they are unable to offer a drop-in service and find this partnership model works well for them. They typically receive between 2 and 8 requests a week. At Christmas time, 2021, they distributed 54 parcels – entirely based on referral. They were originally founded as part of an inter-churches project on homelessness and so they also gift starter packs to individuals and families as they move into a house of their own, helping to make their house a home in the first days and weeks in their new surroundings. o MOMA – Contact: Rev David Carruthers 01546 603269. Providing emergency food parcels and homes starter packs. 1.2 The ACT NOW project, funded by the Climate Challenge fund, coordinates the collection and redistribution of unsold food from the Lochgilphead and Inveraray Co-op stores through the Coop Food Share Scheme. Unsold fruit and vegetables are collected from the Coop each weekday morning and made available to the community at the MS (Snowdrop) Centre and Inveraray Page 110
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Primary School. This is aimed at reducing greenhouse gas emissions, particularly methane, which has a warming potential of 21 times that of carbon dioxide. Climate action avoids the stigma of poverty, and ensures that households see that acceptance of surplus food is worthwhile. It is conservatively estimated that this activity is saving 3.7 tonnes of food from landfill. The MS Centre have reported that they have in the region of 100 users of the scheme per week. Contact: ACT Now Project Officer, Jamie Joyce: jamie@act-now.org.uk; 07943020241 2. TARBERT: 2.1 The Tarbert Pantry describes itself as a small, discreet food pantry located in Tarbert for the community and surrounds. They alert the community to arrivals of fresh food and to other useful information on their Facebook page, which is updated regularly. The Pantry is located in a cupboard at the rear of the Soup Group/Youth group premises and anyone can obtain food from it at any time. They also do a soup group for older and vulnerable persons in the community once a week or more and run the youth group. They have begun to notice some children admitting to missing meals and now provide something nourishing during their youth group sessions. Serving meals can be a way for organisations to directly engage with their service users. The pantry pays a fee to become a member of FareShare Glasgow and West of Scotland who provide a wide variety of quality surplus food to them. It is collected once a week on behalf of a few other food projects as well as for themselves, and swops are undertaken, ensuring a better mix of food in the parcels on offer. 1, Kintyre Place, Tarbert (Loch Fyne); Heather Bellshaw 07391582359 The Tarbert Pantry Coop FareShare food outside the MS (Snowdrop) Centre Page 111
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3. KINTYRE: 3.1 The Campbeltown and Kintyre foodbank is the chief provider of food relief across the Kintyre area. It is staffed by volunteers and there is no limit to the amount of food parcels people can receive. A volunteer from the foodbank is attending the meeting and offering more detail. Kintyre Foodbank, Unit 3, Mull of Kintyre Industrial Estate, Albyn Avenue, Campbeltown PA28 6TP. kintyrefoodbank@gmail.com 01586 552005 3.2 In Campbeltown, the Co-op surplus is collected by Kintyre Link Club for distribution among their members. 4. ISLAY: 4.1 Islay Food Bank is an independent registered charity set up in 2019. Formerly known as “Islay and Jura Store Cupboard” they worked in partnership with the Dunlossit and Islay Community Trust. There are no criteria to fulfil and people can self-refer and receive donations anonymously to their door. People don’t need to fill out any forms and they can be assured of confidentiality. On Islay they are distributing 2-3 food parcels a week. The majority of those are going to families with additional medical diagnoses and to some Ukrainian refugees. Confidentiality is of huge importance on the island so they have a system where you can call a mobile phone or message a WhatsApp group and needs are assessed when contact is made. A delivery is then made direct to the person’s home. They have also occasionally undertaken coal deliveries. The foodbank is aware of issues with heating – one of the key issues on the island is that many homes are heated with oil, which is now prohibitively expensive. Contact Andrew: minister@islaybaptistchurch.org.uk 4.2 Islay have also started up a school uniform exchange which has proven extremely popular. 5. OTHER SOLUTIONS: 5.1 The Argyll and Bute Child Poverty Action Group were formed in 2019 and are a multi-agency group with representation from Argyll and Bute Council, NHS Highland, the third sector and other partners, looking at ways to make a difference to those living in poverty. Kintyre Food bank Page 112
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5.2 Not for profit community groups can apply to be a partner with their local Co- op Food Share - Co-op (coop.co.uk) and receive surplus fresh food when available. 5.3 Argyll and Bute Council’s Funding Alert and the TSI’s funding newsletter provide information for community groups on grants for the relief of poverty. 6. Points for Consideration 6.1 While foodbanks themselves chief goal is that they should cease to exist, they are doing an important job in providing crisis food aid. The Scottish Government and the Independent Food Aid Network advocate to a move towards an approach based on prevention first (strengthening incomes from fair work, social security and reduced cost of living) and then Emergency response based on supporting local joined up approaches to hardship that make foodbanks the last port of call, by promoting emergency financial assistance and money advice first, alongside holistic support services. “Where help to access food is required, this is provided in a way that maximises dignity and reduces future need”ii. 6.2 It is noted that the ABFFF (Argyll and Bute Flexible Food Fund) is cited as a model of good practice by the Scottish Government in working towards these goals. Our foodbanks continue to link to ABFFF through the Argyll Food Forum and partners wishing to promote a move from crisis to sustainability by holistic intervention should be aware of the good work and connections already made. For further information please contact: Antonia Baird, Community Development Officer for MAKI: Antonia.baird@argyll- bute.gov.uk 01546 604270 ; Maryanne Stewart, Kintyre food Bank: kintyrefoodbank@gmail.com i (Scottish Government, 2021, Poverty in rural Scotland: evidence review 4. Cost of Living - Poverty in rural Scotland: evidence review - gov.scot (www.gov.scot) ii Ending the need for food banks: consultation on a draft national plan - gov.scot (www.gov.scot) Page 113
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Registered Charity: SC022931 Providing Information and Accessible Youth Friendly Services Mid Argyll Youth Development Services Mid Argyll Youth Development Services 50a Union Street Lochgilphead Argyll PA31 8JS Phone: 01546603231 Page 115 Agenda Item 10b
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A MESSAGE FROM THE MANAGER AND CHAIR OF THE BOARD 2021 has continued to be a year of uncertainty due to the Covid-19 pandemic. However, MAYDS has worked hard to adapt its services so that we can continue to support children and young people in the best possible way. We thank our partners and the community who support the work we do and most importantly to all our funders who make the work we do possible. Finally, we would like to thank and mention all the children, young people and families who continue to participate and have input into the service and importantly make the jobs we do worthwhile. Fiona Kalache, MBE. Manager Jackie Preece. Chairwoman Page 116
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OUR TEAM Operational Team Volunteers Manager -: Fiona Kalache, MBE Chair-: Jacky Preece Exec Assis/ Counsellor-: Lynn Johnstone Treasurer-: Pasqua Facchenda Senior Youth Worker-: Karen Murdoch Trustee-: Jean McPhee Young Carers Support Worker-: Joanne Illidge Trustee-: Raymond Flanagan Youth Worker/Music Coach -: Neil Parkinson Trustee-: Stuart Scott Youth Worker-: Hannah Nicolson Trustee-: Zandra Hunt Youth Worker-: Sarah Nicolson Volunteer-: Mark Johnstone Youth Worker-: Myrin Robertson Volunteer-: Michaela Bruce Youth Worker-: Mena Curran Volunteer-: Jodie Robertson Outreach Youth Worker-: Heather Kennedy Volunteer-: Ruby Cook Volunteer-: Niamh Shaw Volunteer-: Isla Ranger For full team profiles and pictures visit our website at www.mayds.org.uk Page 117
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CLUBS/TRIPS For the majority of 2021 and working within the COVID-19 guidelines MAYDS were able to restart their clubs and activities. This was welcome news for all the children and young people we work with whom were eager to get back to socialising after the lockdown. We found clubs busy and, on some occasions, had to run 2 sessions per night to accommodate numbers within Scottish Governments COVID-19 guidelines. On any given week we saw over 135 individual children and young people accessing these activities and clubs with up to 30 at any given session. Weekly groups included J.A.M music club, junior Youth Drop in’s, Senior Youth Drop in’s, Young Carers youth club, Additional Support Needs social club and Ardrishaig Youth drop in. Unfortunately, due to the swimming pool refurbishment our long standing and free-swimming sessions were unable to run but this will restart in the spring when the pool reopens. This year we also had the team from Lochgoilhead outdoor Centre visit both Islay and Mid Argyll to provide two days of outdoor activities in each area. In Mid Argyll 24 young people attended these sessions and on Islay around 30 young people. Activities included bush craft, Archery, walks etc. During the year and over 4 sessions a member of the Community Learning and Development Centre attended P7 drop in club and worked with them to design and make wellbeing bags up for those in sheltered accommodation and the local care home. The bags included cosy socks, mugs, hot chocolate, hand made decorations etc., and the young people distributed them. Those receiving the bags were delighted particularly AFTER LONG PERIODS OF Isolation during COVID. We also worked with the GRAB Trust during the summer where 12 young people carried out 2 days of litter picks at local beaches. In December this year we had a trip to the pantomime at the SECC, we gave away a hundred tickets to children, young people and families. Everyone had a great day and enjoyed getting away and back to some normality. COUNSELLING AND SUPPORT This year our referrals to the counselling service have increased significantly with our counsellor seeing children and young people between the ages of 4 and 18 years old. The children and young people referred are done so for several reasons including early childhood trauma, anxiety, self- harm, eating disorders etc. In addition to this the counsellor visited the schools, where allowed, on a regular basis to see young people whom are struggling. Where need be sessions were delivered by zoom or telephone. In 2021 around 65 children and young people accessed the counselling service. Our counsellor also continued to develop her skills and knowledge during the year by undertaking training in relationships and eating disorders. In addition to the counselling service in 2021 MAYDS continued to hold run the Cool2 talk online support service, this was a well-used service during the year with young people being able to get advice and sign posted to support services on a range of issues. Those with additional support needs were continued to be supported on a one to one basis through our ASN social club. This club ran twice per week and gave those with complex needs a space of their own while allowing the family respite. There wer around 5 young people attending these sessions where they took part in various activities fully supported by qualified youth staff. There was also support for parents during the year through MAYDS hall being used for POP parenting courses. Page 118
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OUTREACH/DRUG AND ALCOHOL EDUCATION Our outreach STREET MAYDS continued to run several times a week, particularly in the summer where the nights were longer. MAYDS staff would work with the police and go to areas of concern where young people may be hanging around and drinking etc. MAYDS staff would talk to the young people and encourage them to come to the centre or give advice and information where need be. This has always been a successful program and is also running on Islay now. YOUNG CARERS MAYDS continued to hold the commissioning services for young carers across MAKI in 2021. We had a total of 112 young carers on our books during this period all accessing a wide range of support and respite from MAYDS. These services included counselling, family support, respite through pony club, accessing groups and activities. Young carers also attendee the Lochgoilhead activities and some of them attended the pantomime with their families. Through Flexible Funding we were able to support young carers and their families in various ways such as gym passes, electricity top – ups, food parcels, devices for school work etc. MAYDS continues to hold this contract until 2023. EMPLOYBILITY AND TRAINING Through our Workingrite employability and training program 15 young people were supported into positive destinations. These young people accessed up to 26 weeks on our program where they undertook modules and developed employability skills. In addition, they were matched with local employers for work experience placements. The success rate for apprenticeships and jobs at the end of the program was around 90% with young people now in apprenticeships in bricklaying, plumbing, plant mechanics, joinery, youth services, plant hire services. Staff continued to train during the year in MAKATON, detached Youth Work, Mental Health etc. NEW DEVELOPMENT Thanks to funding from RENEWI this year we were able to clear and flatten the site for the new skatepark development and pay for security fencing to be erected. The next phase is for the skatepark design and build. CARE PACKAGES During the Christmas period we received several donations from local companies to support those most in need at Christmas. Thanks to these donations we were able to top up electricity cards, provide food and amazon vouchers, give out Christmas gifts and Christmas hampers. Over 30 families benefited from these donations. During the year we also continued to work with local food bank taking their surplus stock and distributing food parcels to our young parents, young Page 119
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cares and others in need. We also set up a mini food bank ourselves buying and collecting food donations and distributing food to families when needed. Outdoor play at Primary Drop In. Art at ASN social club Page 120
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OUR FUNDERS THE KILFINAN TRUST MacTaggart Third Fund Page 121
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Argyll and Bute Community Planning Partnership Mid Argyll, Kintyre and the Islands Area Community Planning Group 2 November 2022 Community Planning Partnership Management Committee Update This briefing relates to the meeting of the Community Planning Partnership (CPP) Management Committee which was held on 6th October 2022. The briefing is for noting and relevant discussion. Summary HIGHLIGHTS Matters Arising from Area Community Planning Groups An update was provided on the discussions which had taken place at all 4 Area Community Planning Groups during the August 2022 cycle of meetings. The meetings had been well attended with a variety of interesting presentations given. Of particular interest was the excellent partnership work in Helensburgh on youth antisocial behaviour and the mental health and wellbeing website from Males Tales / Females Tales; the cross-community work on the Inveraray Community Action Plan; work integrating new Scots; the Shaping Places for Wellbeing work in Dunoon; and the work on Carer Support Plans with partners across the Oban area. The Management Committee noted the current situation in regard to office bearer positions, noting that the position of Vice Chair on the Helensburgh and Lomond Group had been filled by Sarah Davies of Helensburgh Community Council. The Vice Chair of the Mid Argyll, Kintyre and the Islands Group had also been filled with Councillor John Armour taking on the role for a temporary period of 6 months. The Vice Chair position on the Oban, Lorn and the Isles Group remains vacant, with confidence high this would be filled at the next meeting. The CPP Management Committee met on the 6th October 2022 with the meeting being held virtually. This update provides an overview of the discussion which took place. Reports which were discussed at the meeting can be found here Browse meetings - Argyll and Bute Community Planning Partnership - Management Committee - Argyll and Bute Council (argyll-bute.gov.uk) Page 123 Agenda Item 11
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Cost of Living Crisis There was a very full discussion about the cost of living crisis and partners were encouraged to signpost people to the council’s dedicated support page which can be accessed by following this link - https://www.argyll-bute.gov.uk/heat-your-home. CROSS CUTTING THEMES Addressing the Climate Emergency in Argyll and Bute Stan Phillips advised that the Climate Change Action Plan is ready to go as they have a good description of what the group wants to do and governance procedures are in place. The Management Committee noted that around £70k had been made available from NHS Highland - Argyll & Bute Health and Social Care Partnership and Argyll and Bute Council, to support a Project Manager, however there remains a funding shortfall of around £50k. Officers are considering approaching the private sector with an interest in Argyll and Bute, to see if they have capacity to support this important work. Child Poverty Mandy Sheridan provided an update on this theme with it being noted that:- - A multi-agency group had been working to ensure Children’s Rights Reports (which need reviewed in 2023) are embedded in the United Nations Convention on the Rights of the Child (UNCRC). They are also progressing accreditations for rights respecting schools and an online group has been set up to enable engagement with young carers. - An audit tool is being used to identify how ready organisations are to embed the UNCRC, and advice is being given on what this involves. It is hoped the audit tool can be used by the Council and other partners. - There is focus to produce a child friendly complaints procedure and the Scottish Public Services Ombudsman is supporting this at a national level. A draft procedure is expected to be available in April 2023. - The Child Poverty Action Plan 2021-22 had been completed and was approved at the Integration Joint Board. - The Child Poverty Action Group are developing an engagement and communication sub-group to map communication pathways for key messages and create an annual calendar for communications, i.e. promote school uniform support in spring. They are looking at different ways to promote Scottish Child Payments to those who should claim it and promote provision of free school meals. - Audit Scotland concluded longer joint planning is needed for Child Poverty in Scotland with more focus on tackling impacts rather than prevention. There is also a national effort to provide better data for remote and rural places to identify the different challenges those areas face. Page 124
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Financial Inclusion Fergus Walker advised that the Financial Inclusion and Advice Group, and a splinter group are looking at energy advice and are very busy looking at how to mitigate issues and impacts on citizens in Argyll and Bute. Some research has shown that inflation has increased the cost of food, travel and clothes by more than 13% (higher in Argyll and Bute than elsewhere), and that 70% of properties in Argyll and Bute would require an income of over £82k to mitigate this, yet the average income in the area is £30k per annum. While the Energy Price Cap was welcomed it was reported that the average cost of energy to homes in Argyll and Bute is double the price cap and many properties are off gas grid and rely on oil and electricity. Support for Argyll and Bute is being lobbied at senior levels in Government and there is work with multiple agencies to negotiate with energy companies and provide links to emergency support. Fergus reported that the Flexible Food Fund is ongoing and the roll out of “Loves Local” gift cards to those who are eligible continues. The cards will have £120 loaded to spend at over 140 local businesses. The total card value is approx. £800k. Once the contract for this has been finalised it is hoped more businesses will join the scheme. The Food Fund has helped 1,350 households with an overall gain to them (customer gain) of £1.8m since January 2021. Community Wealth Building Takki Sulaiman provided an update of some of the work contributing to the development of Community Wealth Building approaches in Argyll and Bute. The focus of which is to use levers, as appropriate, to keep wealth generated in local areas to remain in that local economy. The Third Sector Interface are working towards preparing a report which maps current best practice in Argyll and Bute, similar and interconnected initiatives and strategies, opportunities unique to Argyll and Bute and next steps for action. Digital Iain MacInnes gave a presentation on social tariffs for phone and broadband and Nicola Hackett reported on the conclusions and outcomes of the scoping exercise that had been undertaken by consultants Hall Aitken on behalf of the Argyll and Bute CLD Partnership. Nicola reported that Digital Skills are a critical part of the CLD Partnership plan and to ensure the delivery of core digital skills in Argyll and Bute we need to understand where the gaps are, what our existing assets are and how to take this forward in partnership. A survey was conducted, however there were not as many responses as hoped for, but that the methodology and approach from Hall Aitken was good and they gave clear recommendations on how to work together across partners and the CLD partnership to ensure our work contributes to digital skills. Page 125
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Corporate Parenting Board - Nomination of Replacement Chair Mark Lines confirmed to the CPP Management Committee that Takki Sulaiman had been appointed to be the new Chair of the Corporate Parenting Board. Takki will be asked to lead the delivery of the Corporate Parenting Plan and to support and challenge all Corporate Parents to deliver on their responsibilities and the transformation for care services as envisioned by The Promise. Priorities from engaging with young people through Member of the Scottish Youth Parliament (MSYP) roadshows Ann Kennovin advised that the MSYPs had taken a stall at Oban Highland Games where over 100 people stopped to engage with them. The MSYPs took time to explain what the Youth Parliament is about, their roles and the length of their appointment term. The MSYPs have also created a QR code linking to a survey on issues for young people across Argyll and Bute. This survey is still live, however emerging issues are around transportation and the problems with applying for a free bus pass, access to play areas (that are not part of paid clubs) and the quality of school buildings. The survey will close at the end of October. The theme of the next MSYP session is “Fast Fashion” and its impact on climate change. Shaping Places for Wellbeing Dunoon Project update Alex Wilde gave a presentation on the Shaping Places for Wellbeing in Dunoon project which aims to improve wellbeing by reducing inequalities. Alex advised that the project is looking areas where input can be given to support plans, policies and decisions impacting Dunoon and to promote the work already being done on the wellbeing outcomes. Alex introduced the place and wellbeing assessment tool which can be used by partners to review their decision making processes and plans. The project can support partners on Place and Wellbeing assessments by facilitating sessions, writing up reports on the discussions and providing recommendations. This support has been well received in other areas. Lochgilphead & Mid-Argyll Place Review Shirley Johnstone advised that as part of the Modern Workspace project to rationalise council assets, it was realised there was a wider scope of work needed for Lochgilphead and Hub North were engaged to interview stakeholders to identify what was needed. David Welsh gave a presentation on the action that has been taken so far and next steps. He explained that a place-based review works in a joined up way to look at how people work and live in a place and understand their priorities. The project team spoke to stakeholders in June 2022 and reviewed plans and ran workshops with Page 126
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local people in Mid Argyll. A place narrative was then developed to identify a shared story for change; explaining the context and setting out what makes a place distinct. Lochgilphead is a good place to live, and there has been visible investment to the area in the last year, however there is also a fragility to the area and this needs attention as to how demographic and economic changes can affect it. David advised that work needs to be done to attract visitors to the town, and that there is also a need for housing stock, extension of childcare and nursery provision, youth activities and social activities. In terms of next steps, work is continuing on Phase 1 (ends November 2022) and this includes a Place Brief, Place Program, Developing Funding, Determining Governance and Assurance and planning detailed additional engagement. Coll Engagement Sarah Griffin introduced the work of the Coll Collaborative Working Group which aims to ensure person centred, sustainable, affordable and integrated access to care on Coll. A needs assessment was undertaken in July 2022 and will inform work as it goes forward. The findings reported the main issues as being Situation and Transport (no public transport), Demographics, cost of living (high food and fuel costs), Housing (second home ownership, no supply), Health and Wellbeing (unpaid carers, good GP access but need to go off island for treatments) and Community (strong community and lifestyle on the island is important to residents). The results of the survey will be made public. Argyll and Bute Community Planning Partnership Annual Report Joe McKay provided an update of the Argyll and Bute Community Planning Partnership Annual Report which covered the twelve month period from 1 April 2021. The partnership had agreed to work together on topics such as climate change, building back better (strengthening communities), community wealth building, digital, safety in communities and addressing financial impacts including child poverty. Progress and achievements on these topics were outlined within the annual report, and included: - Monthly meetings for community organisations supporting people in need, to share experience and get support from other organisations in the area. - Creation of a Climate Change Action webpage hosting information on actions to address climate change across communities and organisations in Argyll and Bute. - Funding and distribution of call blockers to prevent telephone fraud and scams. - Over 6,000 Worrying about Money leaflets distributed - Funding to increase awareness of digital opportunities in communities. Review of Argyll and Bute Outcomes Improvement Plan Page 127
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Rona Gold delivered a presentation which detailed how Outcomes Improvement Plans are a requirement of the Community Empowerment (Scotland) Act 2015. The previous 10 year plan ends in 2023 and work needs to progress on forming the plan for the next 10 years. During July to September 2022 the CPP team met with multiple partners and other Community Planning Partnerships and reviewed all engagement in with communities in Argyll and Bute over the last 2 years. There are 9 needs that have emerged from that: Housing, Transport Infrastructure, Digital Inclusion, Climate Change, Financial Inclusion, Skills and Workforce, Diverse Economy, Community Wellbeing and Other (Community Voice, Volunteering). Rona reported that consultation will take place to identify the top 3 priorities which will be in the form of a survey across the population and CPP Partners. The CPP will also be surveyed regarding the existing level of partnership working on those themes. For further information, please contact: Shona Barton, Governance Manager, Argyll and Bute Council (01436) 657605 Shona.barton@argyll-bute.gov.uk Page 128