News / Economic growth without interconnector
THE SCOTTISH government has announced the designation of a ‘low carbon/renewable energy enterprise area’ in the north of the country, which includes two sites in Orkney but none in Shetland.
The development has been described as “not of great concern” by Shetland Islands Council director for development services Neil Grant, as Shetland would not be able to contribute much without an interconnector cable.
Mr Grant also said Shetland continued to enjoy a healthy economy with the oil and gas sector as well as the seafood industry doing particularly well.
He said that by creating enterprise areas the government was channelling financial support to regions most in need of help.
Last week cabinet secretary for sustainable growth John Swinney announced the creation of four such areas, two of which are focussing on renewables, while the other two concentrate on manufacturing and life sciences.
The north area includes a five hectare site at the Hatston pier, in Kirkwall, a site at Lyness, in Orkney, currently under construction and due to support the assembly, storage and servicing of marine energy devices, Scrabster as well as the Arnish (western isles) and Nigg yards.
The sites are all designed to service the emerging marine energy as well as the offshore wind industries.
Mr Grant said: “I think if we were sitting here with an interconnector we would have been included.
“If and when we get an interconnector, business will automatically migrate in our direction. What the government is trying to do here is to assist areas that are arguably most in need of assistance.
“Shetland can still benefit immensely from this if the government investment in these areas works correctly. However, not having an interconnector prevents us from being a significant player; that’s the reality,” Mr Grant said.
He went on to say that thanks to the work of Lerwick Port Authority and others Shetland was already well placed to attract new business in the emerging oil and gas decommissioning sector.
And he referred to analysis by Inverness based economist Tony Mackay who in his latest monthly report described the Total gas plant, currently under construction near the Sullom Voe terminal, as one of the main drivers for economic growth in Shetland.
“We are very fortunate in having the west of Shetland oil and gas opportunities, and clearly, there will be further significant investment not only by Total and BP, but also other companies,” Mr Grant said.
And he added: “Six years ago seafood was three times as big as the oil and gas sector in terms of impact on the economy.”
The council’s development department currently awaits the outcome of a so-called ‘input-output’ study, carried out by Aberdeen University every six years.
In 2006, the study found that the isles had generated a £60 million net surplus for government coffers.
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