The Board’s efforts initially focused on developing its strategy and programmes that would make use of the full breadth of its powers. They then quickly moved to implementation with property investments and capitalisation of small businesses being particularly important in these early years.
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A SOLUTION TO 'THE HIGHLAND PROBLEM'
Land, and who owns it, is at the forefront of the debate. An organisation with the power to acquire land is needed, to improve the social and economic future of the Highlands and allow the area to play a wider role in the UK economy.
The Highlands and Islands Development (Scotland) Act is passed by Harold Wilson’s Labour government. On November 1st, just six staff open the doors of the Highlands and Islands Development Board (HIDB).
The HIDB is chaired by Professor Robert Grieve, one of Scotland’s leading post-war planners, and will cover the traditional crofting counties of the Highlands, from Argyll to Zetland.
The role of the Board is set out in the document below:
Download the Constitution, Functions and Administration of the HIDB
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Cruachan Power Station, the world's first high head reversible pumped storage hydro scheme, situated deep within Ben Cruachan on the shores of Loch Awe near Oban, Argyll opens in October. This places the Highlands and Islands at the forefront of renewable energy developments, capitalising on natural resources to bring about economic and social change.
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Harvesting success
At the outset of the Atlantic salmon farming industry, Unilever establishes Marine Harvest at Lochailort and begins working with rainbow trout. They later concentrate on salmon, establishing the first salmon farm in the UK, which represents the start of aquaculture developments in the Highlands and Islands.
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A Marine Farming Unit, known as the White Fish Authority, is established at Ardtoe, Ardnamurchan.
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The HIDB quickly recognises the benefits of collaborative working, establishing a formal link with the North of Scotland Hydro-Electric Board in the February of 1966.
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A new dawn for energy
Board members meet with Minister of Technology, Rt Hon Frank Cousins MP, to discuss the case for siting a prototype reactor at Dounreay.
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The Government's White Paper on the Scottish Economy: 'A Plan for Expansion' includes the mandate for the Highlands and Islands to develop tourism on a larger scale. Tourism is seen as having development potential in both the main population centres and in the most rural parts of the region.
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Retaining the population and increasing job opportunities are key issues for the young HIDB, which is growing fast: from 5 employees to 42 across staff groups including Management Services, Planning and Research, and Information and Projects.
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The HIDB identifies Forestry, Tourism and Manufacturing as the three main hopes for a more secure economy - manufacturing is the most urgent. A policy is introduced to encourage the growth of industrial enterprise, capitalising on the natural advantages offered by different areas.
This includes maximising the benefits to be derived from the recent establishment of the Corpach Pulp and Paper Mill in Lochaber. They also begin discussions with the Occidental Petroleum Corporation of Los Angeles about a possible petrochemical complex in Invergordon.
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A study is commisioned to explore the feasibility of major industrial development in the inner Moray Firth. It concludes that major population growth is possible over the next 20 years in this area. The Board outlines its large-scale aspirations for Moray Firth development, describing it as "a regional development scheme with an industrial base". By the end of the year, a special team is set up to pursue these ambitions.
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Recognising the need to build capacity in the region, and to respond quickly to the needs of potential investors and industrialists, the Board considers an advance sites and factories programme. This marks the start of a long history of property development to stimulate business growth.
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Young people are at the forefront of the HIDB’s work and, in their first annual report, they acknowledge the work done by Inverliever Lodge Trust to bring young people from urban areas to the Highlands, potentially encouraging them to see the area as a future place to live. The Board commissions a report to gain further insights into a potential youth agenda.
See HIDB's first Annual Report 1966
See Youth Activities in the Highlands and Islands report 1966
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The HIDB quickly recognises the critical role that transport infrastructure has to play in supporting economic development. This resonates with political thinking, reflected in the presentation to Parliament of a White Paper on the Scottish Economy ‘A Plan for Expansion’.
The paper outlines plans for investment in motorways and trunk roads across Scotland, including upgrades to the A82 and A9. It endorses the Inner Moray Firth as an area with substantial development potential.
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Welcoming the Fleet
The Secretary of State approves the HIDB Fisheries Development Scheme. 25 fishing boats are to be built for new entrants to the industry over the next five years, at an estimated cost of £750,000. The scheme covers the whole of the HIDB area, but is mainly directed at increasing the local fleet fishing out of Stornoway. By the end of 1966, 26 applications are received and nine successfully selected for boats.
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The future of the Highland rail service is assured as a White Paper on Railway Policy is published. However, the Dingwall/Kyle of Lochalsh and Fort William/Mallaig lines are not proposed for inclusion in the basic network.
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The HIDB recognises that for every individual fishing at sea, processing jobs could provide two jobs ashore. However, they are also aware that assurance of sufficient landings is required in order to make processing a viable economic proposition.
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A strike in the summer by sea-workers highlights the dependence of island communities on "sea communications". The HIDB expresses concern over the isolating effects on these communities, and the potential impact on the perceptions of inward investors.
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The Board recognises the potential of the region to sustain fish farming enterprises and a study visit to Denmark is made by staff to explore this further.
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British European Airways (BEA) announces plans to double the frequency of flights to Inverness, and substantially increase the number of flights to Wick.
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Hotspot for Winter Sports
Cairngorm Sports Development Limited (formerly the Cairngorm Winter Sports Development Board), recognising the commercial opportunities of Cairngorm as a national winter sports area, sets about realising its potential. With HIDB investment, they increase chair-lift capacity, install fresh T-bar tows and improve restaurant facilities.
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Lack of visitor accommodation is a constraint to growth, so the Board's first major tourism proposal is a hotel build scheme, to provide five new hotels in the islands and west mainland. At a total build cost of about £1m, each hotel should accommodate around 100 guests. The hotels will be leased to commercial operators, on the basis of market value.
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HIDB sponsors a Highland Hotel Conference in November, to familiarise hoteliers in the region with the support services on offer to them. The Board also spends £10,000 on publicity and runs a small advertising campaign in the north of England promoting winter sports in Glencoe.
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The Agriculture Act 1967 is passed and gives the HIDB new powers to transfer land from forestry to agriculture, and to restructure it into more viable units, offering greater scope for development.
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Only 10% of the population work in manufacturing, and the board acts to diversify job opportunities. Afocal Optical, a Glasgow based company, sets up a factory in Barra. A heating and ventilation engineering firm, Binder Engineering Ltd, relocates their plant from Swindon to Campbeltown, and a new factory is built in Kingussie for Rotary Precision Ltd who operate in the engineering and aerospace industries.
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Industrial development is nothing without employee housing. When Ross and Cromarty County Council rezones 700 acres at Inverbreakie and Ord Farms for industrial use, the board takes a forward thinking, holistic approach, collaborating with local authorities and housing associations to meet workers' housing needs, even in remote areas.
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To ensure an appropriate skills focus, a joint committee of industrial training boards is set up specifically for the Highlands and Islands.
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The planning stages of industrial development begin. The Jack Holmes Planning Group is commissioned to prepare a plan for the inner Moray Firth area, along with a more detailed study of the Cromarty Firth and Invergordon.
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The money spent on social projects rises dramatically, from £3,345 in 1966 to £20,298 this year. The organisations eligible for help are usually in the voluntary sector, tourism and publicity/information services.
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Expanding the Fishing industry
The HIDB Fisheries Development Scheme is expanded to 35 boats, with extra allocation directed at Orkney and the Pentland Firth. Those taking part in the scheme are trained by the Board, with two training skippers employed for this purpose, although the Board recognises the need for a formal system of education and training for the fishing industry in the region.
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Bringing communities together
Economic development is progressing at a lightning pace, but the HIDB recognises that it also has an important social role to play.
Having noted that none of the staff were employed to address the HIDB’s social role, Bob Storey, former Development Officer for Zetland County Council, is employed as a consultant on community development and sociological aspects of development.
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The HIDB invests in fish processing to ensure that the industry can accommodate the expansion of the regional fishing fleet.
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The Highland Transport Board is disbanded and the HIDB assumes the role of advisor to the Secretary of State for Scotland on regional transport matters. The Board secures representation on the Scottish Economic Planning Council's Transport Committee, giving them a voice in discussions on transport connectivity with the rest of Scotland and further afield.
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A bulb growing experiment commences in North Uist. Six acres are planted, with plans to increase this to 40 acres the following year.
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bridging the gap
The importance of faster road links is recognised by the Board as they emphasise the need for a bridge over Loch Leven at Ballachulish, and for improvements in the approach roads to the Highlands via Loch Lomondside and between Perth and Blair Atholl.
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The HIDB provides 16 selected agricultural and horticultural projects with financial assistance, including a calf marketing scheme, intensive pig production units and the marketing of store lambs.
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The Board considers the benefits of Road Equivalent Tariff in reducing the disadvantage faced by those living and working in island communities.
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Air services to the region improve as British European Airways (BEA) increase the number of return flights between Inverness, Wick, and the South, and Loganair begin services to Oban and Mull from Glasgow.
An experimental service to the North Isles of Orkney also begins, the two minute flight between Westray and Papa Westray being the world’s shortest flight. In Shetland, work begins on an airstrip at Unst, under the Army's Operation Military Aid to the Community (OPMAC) scheme.
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Mull is announced as the location for the first hotel to be built by the HIDB.
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A New Plan for Tourism
The HIDB establishes a team dedicated to tourism, and a Tourism Development Plan is prepared. Its objectives are to lengthen the tourist season, to increase the amount of accommodation on offer, to enhance the information available to tourists, to improve standards and create better facilities, and publicise the offer more effectively.
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A national advertising campaign costing £20,000 is launched at the end of the year, with support from the Scottish Tourist Board, to attract more holidaymakers to the region.
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The Board, along with Ross and Cromarty County Council, commissions a study to explore the feasibility of reclaiming Nigg Bay, near the mouth of the Cromarty Firth, for industrial use.
This study, along with a supporting hydrographic survey, concludes that there is an opportunity to dredge the entrance channel to provide sufficient depth of water to allow oil tankers of up to 200,000 tonnes deadweight to pass into the firth under controlled conditions.
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Following a consultation with public sector and industry partners, the HIDB establishes and finances a co-ordinated network of Tourist Information Centres, which will go into operation the following year and transform the tourism industry in the Highlands and Islands.
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Growth of the nuclear power industry is secured in the region, as construction begins of a Prototype Fast Reactor at Dounreay, the second and last to be built in the UK. Caithness is chosen over Pinfrith, Dorset as the location for this new generation of fast breeder reactor technology, which goes critical in 1974 and begins supplying National Grid power in January 1975.
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The brochure 'Escape to the Highlands and Islands' is published, and over 100,000 copies are sent out to people all over the UK and beyond, after a series of coupon adverts are published in newspapers and magazines. It is a hit amongst potential holidaymakers, with Tourist Information Centres reporting double the usual number of enquiries.
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The HIDB recognises the importance of the natural features of the region and also the growing popularity of sports-based holidays, and is keen to support outdoor activities such as skiing, climbing, walking, fishing, sea-angling, sailing and cruising. They commit to developing facilities to support this demand. Two new yachting marinas are opened on the west coast and a new ice rink in Inverness, while sea angling and sand yachting are promoted. Plans for a new golfing centre are discussed.
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The HIDB continues to expand - by the end of the year there are 147 staff across nine divisions, and the first area office opens in Shetland, providing aftercare services for Board assisted projects.
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Resort developments
In their quest to develop the Cairngorms to attract larger visitor numbers, the HIDB finances the construction of a road and car park which will open up the area, with Inverness County Council and the Forestry Commission providing technical assistance. Both the road and car park are built by army engineers, while the Ptarmigan restaurant opens near the top of Cairngorm. It is now the highest restaurant in Britain.
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The social and cultural development of the region is beginning to flourish. Grants totalling £74,000 are approved for 77 organisations, more than treble the sum approved in 1967.
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The Transport Act 1968 is published, granting local authorities the powers to give financial assistance towards the provision, improvement or continuation of uneconomic bus or ferry services that will benefit people living in rural areas. The Act also makes provision for the local authorities themselves, to receive financial help from the Government for such services.
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Over the 1968-69 winter season, a marketing scheme called Spey Valley/Ski Valley is created, featuring promotional films and adverts offering 20% off a range of winter sports facilities in the region.
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Manufacturing development is forging ahead. Now 1 in 3 new jobs in the region are in manufacturing and growth industries are identified - Electronics and Industrial Plastics. The Board encourages two major engineering and plastics companies to relocate to Inverness from England. Elsewhere, Afocal Optical, who were established in Barra, expand and move to Campbeltown, providing 60 jobs.
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The board welcomes the decision to locate a new aluminium reduction plant at Invergordon, creating 600 jobs. Grampian Chemicals apply for planning permission to build a petrochemical complex nearby.
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a brave new plan for transport
The HIDB submits proposals for an innovative new transport policy for the islands, based on the idea that water crossings should be treated as extensions to mainland roads. These are the first formal proposals on Road Equivalent Tarriff (RET).
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The HIDB lobbies the BBC for improved reception in rural areas, and the possibility of a pilot scheme for relayed or piped television on a communal basis is explored.
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Innovating Natural Resources
The HIDB provides assistance to Alginate Industries Ltd, who win the Queen's Award to Industry. The firm processes seaweed collected in the Hebrides, Orkney and Shetland and exports the extracted acid to around 80 countries. Board assistance enables 10 boats to be built for seaweed collectors.
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The Board highlights the need for larger boats to allow the fishing industry to move beyond inshore waters and exploit the rich fishing grounds surrounding them. They also investigate the use of larger mid-water trawlers to fish and land for local factories in Shetland, as the fish processing industry there encounters difficulties as a result of the scarcity of white fish in inshore fishing grounds.
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The Board examines the case for a direct vehicle ferry link between Stornoway and Ullapool to replace the service running between Mallaig, Kyle of Lochalsh and Stornoway.
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The HIDB acquires the Herring Industry Board's freezing factory and cold store in Stornoway in an experimental attempt to create a fish processing unit. The factory begins trading as Gaelfish, processing mainly white fish and herring, and staff numbers increase from eight to 20. Production lines are rearranged and modern equipment installed, including filleting machines, skinning machines and a Torry kiln for kippering.
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Rolling in the deep
The first roll-on roll-off ferry service in Scotland is introduced by Western Ferries between Kennacraig and Islay. Their introduction to the ferry fleet brings real efficiencies in loading and unloading, impacting positively on journey times and facilitating more effective timetabling.
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Shellfish catches in Scotland (most of which are landed in the Highlands and Islands) continue to rise, with gross receipts exceeding those of herring for the first time. Reflecting this, there are a number of developments across the region, including the launch of a scallop processing venture by Loch Fyne Seafoods in Argyll; the establishment of crab processing factories in Orkney (Westray Processors Ltd) and Shetland (Sullom Voe Shellfish Ltd); and the opening of a crab cannery on the island of Yell. Minch Shellfish Ltd in North Uist also start exporting fresh lobsters to London and the Continent.
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The Board supports research and experiments into fish farming, including the White Fish Authority trials at Ardtoe, near Loch Moidart, in rearing plaice to a marketable size; and the farming of lobsters under the sea, being undertaken by an ex-Royal Navy skin-diving team at Kinlochbervie, North West Sutherland.
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The HIDB supports livestock developments in the region, providing financial assistance to farmers in Caithness to market North Country Cheviot Lambs in the south of England, and supporting the development of two intensive pig production units for fattening and despatch to processors. They are also asked by the Scottish Landowners' Federation to explore the possibility of creating a larger home market for venison.
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Demonstrating forward thinking, the HIDB supports the region's first computer centre as Central Computer Services Ltd establish their headquarters in Inverness. The centre will provide computer services for organisations throughout the Highlands, and will be home to Highland Council's mainframe computer.
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Now 40% of employment created by HIDB investment is in manufacturing, though the sector as a whole is still under-represented in the regional economy, employing just 12% of the working age population.
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The Board demonstrates early belief in the concept of ‘inclusive growth’. Rather than limiting its focus on areas with the greatest potential for industrial development, it aims to extend its reach and help a variety of businesses, both large and small. Modern science-based units and innovative new small industries are encouraged.
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BUILDING AN INDUSTRIAL FUTURE
Work begins to create an exciting new industrial landscape for the Highlands. Construction of the new aluminium reduction plant at Invergordon is well advanced, with over 1000 workers employed on the project. Housing to accommodate workers is being built in Alness - the latest estimate is that 2,500 new houses are required by 1974.
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The Development of Tourism Act (1969) is passed, which formally establishes the Scottish Tourism Board.
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A marketing campaign is produced with the aim of extending the tourist season beyond the summer months. The 'Highland Holiday Ticket' is a scheme which offers holidays at reduced prices, as well as cheap travel and discounts.
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In July work starts on the first HIDB hotel at Craignure on the Isle of Mull.
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The Scottish Transport Group is established, bringing together the Scottish Bus Group and David MacBrayne Ltd. It has the responsibility of developing the whole of the publicly owned road and sea passenger network in the country.
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Electricity is now supplied to 93% of potential consumers in the Highlands and Islands by the North of Scotland Hydro Electric Board.
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The Kildinguie, the first boat built in the Highlands and Islands under the Board's Fisheries Development Scheme is launched. It is also the biggest boat to be built in Orkney for 50 years.
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making new in-roads
A White Paper 'Scottish Roads in the 1970s' is published, presenting a strategic 10 year plan for upgrading the road network, including a major upgrade of the A9 between Perth and Ardullie.
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72' "Bountiful" owned by the Reid brothers of Stronsay is launched, pioneering a new whitefish industry in Orkney.
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A White Paper on Civil Aviation Policy is published. It highlights the challenges facing operators of domestic air services, arising from the high costs associated with low-density, short-haul flights. To protect the viability of such services, it proposes a degree of route rationalisation, a scale of operations that will allow higher levels of aircraft utilisation, and more economical standards of service.
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Work begins on Skye's first airstrip near Broadford, being constructed by Army engineers under their OPMAC scheme.
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The building of two new roll-on roll-off ferries for the Kyle/Kyleakin route is announced. This route is operating well above capacity.
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Local authorities use powers levied by the 1968 Transport Act to keep the Barra/Vatersay and Mallaig/Knoydart ferries in operation.
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The Kirkwall airport terminal building re-opens, following a £45k upgrade.