Following the discovery of oil and gas in the North Sea, the Board focused on ensuring that the benefits of this hugely valuable windfall were shared as widely across the region as possible, and contributed substantially to the sustainable growth of the indigenous business base.
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First HIDB commercial promoting the Highlands and Islands
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Striking oil in the Forties
The Forties oil field is discovered by British Petroleum, now called BP, located 110 miles east of Aberdeen. The site is considered the largest oil field in the North Sea.
The discovery triggers the birth of the wider offshore industry in the region, and attracts a stampede of future oil explorers from around the world.
Forties was initially spread over 93km² and involved the installation of four fixed steel platforms. It was brought into production in September 1975 and oil output peaked at 520,000 barrels per day in 1978, meeting 25% of the country's demand for oil at that time.
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A Landmark for Visitors
Landmark Visitor Centre opens in Carrbridge, the first purpose built visitor centre in Europe. The facility includes an audio-visual exhibition, shop, restaurant, picnic area and nature trail, setting the bar for the region's visitor centres. It wins a major award from the British Tourist Authority, who name it Best New Tourist Facility. In the late 80s, new attractions are added and it is rebranded as Landmark Forest Adventure Park.
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The Scottish Office endorses the decision by the HIDB to acquire the Cairngorm Estate from the Forestry Commission. This will enable the Board to expand winter sports development in the region.
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Shetland College is established in Lerwick.
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EQUAL EMPLOYMENT FOR WOMEN
The Board recognises that women represent a vital part of the labour market and are currently under-employed in the region, compared to the rest of Scotland. A promotional campaign is launched to raise awareness of the potential of women in the workforce.
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Industrial competition is hotting up in the UK, so the HIDB responds by strengthening its marketing. Promotional films are produced: Spey Valley – Ski Valley and The Top Country. The Board now offers a development service that is unique in Britain. They deal with everything from factory unit provision and financial assistance to management, transport, marketing advice and recruitment help.
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This year focus shifts to nurturing existing businesses to promote further growth, and to more targeted inward investment with the aim of attracting suitable industries into the region.
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The second Chairman is appointed - Sir Andrew Gilchrist, former British Ambassador to Iceland, who describes the HIDB as “a merchant bank with a social purpose: our successes become part of the way of life of the people and are much less easy to quantify”.
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The Board constructs a factory at Dalcross industrial estate, near Inverness, using its land acquisition powers to do so. The purpose built unit is for Markon Engineering (Scotland), who have relocated to the region from Rutland. Their pace of growth has been rapid, and they anticipate trebling their output on moving into their new premises.
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HARNESSING PEOPLE POWER
Industrial development has stabilised the population, with growth in urban areas offsetting decline in rural areas. This gives the Highlands real hope for the future - instead of migration to other parts of the UK, economic growth is keeping people in the region.
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In UK politics, the Conservatives, under the leadership of Edward Heath, displace the Labour administration in the General Election.
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British European Airways begin daily non-stop air services from London Heathrow to Inverness, continuing on to Stornoway and Benbecula. The route uses a 32-seat Viscount turboprop aircraft.
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Supporting small businesses
Craft is a traditional part of life in the Highlands and Islands and the HIDB also sees it as a way to grow local economies in some of the most remote and rural parts of the region. In places where attracting larger industries is more challenging, the Board focuses on developing craft enterprises.
There are plans to build a new factory for a silversmith in Shetland, and 20 jobs are created at a pottery in Aviemore. Other craft enterprises supported by the Board are Ortak in Orkney, a tapestry business in Conon Bridge, and a postcard printing family business in Coll, part-owned by Mairi Hedderwick, who would later write the celebrated children's book Katie Morag.
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The Board helps to re-equip a knitwear factory in Shetland, and helps another - Hebridean Knitwear - to establish operations in North Uist and Tiree.
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Loganair introduces an internal air service network in Shetland.
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There is a fall in demand for Harris Tweed, which results in a shortage of employment for mill workers and weavers. The HIDB undertakes a detailed study of the industry to explore constraints. The study concludes that the industry needs a completely new approach to marketing and a new central marketing organisation. The need for new design is also emphasised, and it is hoped the development of a "double width" handloom will facilitate this.
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supporting investment in oil
The start of oil-related activity in the Highlands and Islands is a massive boost for the regional economy. The Board starts building a mutually beneficial relationship with all oil companies setting up exploration in the northern sector of the North Sea. Both large scale heavy engineering construction work and support services for offshore operations could create significant employment opportunities in the region.
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The HIDB helps to finance the operations of the Committee for European Investment in Scotland, hoping that the region will eventually benefit from overseas investment.
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THE HIGHLANDS ON FILM
“Highlands" is produced by Ogam Films, sponsored jointly by the Board and the British Aluminium Company. This half hour film, showcasing the region’s industrial growth, is directed by renowned photographer Oscar Marzaroli and edited by a young Bill Forsyth. A year later, it wins a prize at the Golden Mercury International Film Festival in Venice.
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CENSUS SUCCESS
The census results show that the HIDB’s population policy is working. The population in the Moray Firth area has risen by over 5,000 since 1966; a level approaching that achieved over 45 years previously.
3,700 more people have moved to the area since 1966 than have left, mostly thanks to industrial development in Invergordon.
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The Board's hotel build scheme comes to fruition, as they open their first hotel in Craignure on the Isle of Mull.
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P&O Scottish Ferries is formed to take over operation of ferry services between Orkney, Shetland and the Scottish mainland.
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First Highland Trade Fair
The first Highland Trade Fair is organised by the Board, and held in Aviemore. The event enables craft businesses to sell to buyers from outside the region, demonstrating that there are substantial markets for their products. Reflecting its success, the Board propose making the Trade Fair an annual event.
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Moray College is established in Elgin.
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Marine Harvest produces a modest 14 tonnes in its first harvest from its Lochailort salmon farm. The quality of the fish is exceptional, demonstrating to the world that the farming of salmon can successfully be done.
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Work begins on a new 42 bedroom hotel at Tangasdale on the Isle of Barra.
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In welcoming the decision to establish a direct vehicle ferry service between Ullapool and Stornoway, the Board reiterates the need for roll-on roll-off ferries across all routes, and expresses further concern around the impact of ferry transport costs on island communities.
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Shetland Silvercraft, established in 1953, moves to an HIDB built factory unit in Weisdale. This enterprise continues to flourish and trades today as Shetland Jewellery.
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Broader Scope for Skiing
The Secretary of State for Scotland transfers ownership of the upper slopes of the Cairngorm Estate from the Forestry Commission to the HIDB. This pioneering decision gives the Board broader scope to develop the winter sports industry in Scotland.
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Booking Ahead
Tourism is growing but securing accommodation remains a problem. HIDB implements a new advance booking scheme where people pay £1 deposit per person to reserve accommodation at any location, from any of the information centres in the region.
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Discovery of large oil fields east of Shetland.
In welcoming this, the Board seek to derive all possible benefit from the impact of North Sea oil. They also express concern about the risk of unbalanced development in the region, and greatly restrict the number of oil-related projects supported.
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In an early example of experiential marketing, the Board stages the 'Highland Fling', an eight coach train which visits London, Manchester, Liverpool, Leeds, and a range of other UK locations promoting tourism, Highland produce and transport, as well as informing people of employment opportunities and industrial development in the region.
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The HIDB considers the effects of the UK’s entry into the Common Market. It also states the need to attract more industrial development, leading to innovative jobs that will retain well-qualified young people in the region.
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Developing a major new industry for scotland
Construction of facilities at Nigg and Ardersier for building production platforms to support oil sector. The Nigg fabrication yard was established by Brown and Root (later becoming Kellogg, Brown and Root – KBR - trading as Wimpey Highland Fabricators Ltd) to build production platforms to support the oil sector. The site consists of approximately 70 hectares of land reclaimed from the eastern edge of Nigg Bay, while the front laydown area was owned by The Wakelyn Trust and was secured on a long term lease. The northern part of the site was then leased by KBR, and the Nigg Oil Terminal created to support the Beatrice oilfield development in the mid 1970s.
HIDB identify Ardersier site as a potential fabrication site, which results in prominent American construction outfit, J Ray McDermott Inc., to set up the Ardersier rig construction yard just east of Inverness. The yard was one of seven similar facilities opened by various international consortia throughout Scotland around this time.
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Supported oil and gas supply chain activities include the opening of a concrete pipe coating plant at Invergordon by MK Shand.
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A stretch of the Alness River is bought as a pilot scheme, with the aim of improving the fishing potential of the area. The Board will lease it to a local angling club on the condition that they open it to the public.
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The refrigeration company Norfost, which manufactures white goods, opens a factory in Thurso. It goes on to operate on a global scale, and in the 80s receives national recognition for industrial achievement.
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Sunday ferry services are introduced for the first time, on the popular Oban-Craignure route serving the Isle of Mull.
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great waters run deep
'In Great Waters', a report on the economic and social effects of the Board's investment in fisheries is published.
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The Government announce plans to accelerate the pace of reconstruction of the A9, with a high standard 7.3 metre carriageway from Perth to Inverness, to be completed in the shortest time possible.
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The Board recognises the need to accelerate fish farming as sea-caught fish become an increasingly scarce and expensive commodity.
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The North Uist bulb scheme, introduced by the HIDB in 1967, is discontinued.
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An embargo by OPEC against oil exports to the USA and the Netherlands results in petroleum supply shocks that raise the price of fuel, triggering the 1973 oil crisis. As a direct result, policy in the west is redirected towards increased exploration, alternative energy research, energy conservation and more restrictive monetary policy to better fight inflation.
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Employment at the Nigg Highland Fabricators yard rises to 1,500 workers. The rapid build-up of highly paid manual employment in the Inner Moray Firth has wide repercussions, including scarcity of labour in many areas, and a shortage of housing. A Moray Firth Working Party is set up by the Scottish Office to co-ordinate and monitor progress in the provision of housing and infrastructure for oil and other developments.
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A platform for change
There is national pressure to set up concrete platform construction enterprises in Loch Kishorn deep water area, extending the impact of oil and gas activity to areas with limited opportunities.
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Cromarty Firth Port Authority is created by Act of Parliament.
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The UK enters the EEC along with Ireland and Denmark, providing businesses with access to bigger markets and improved opportunities for international trade.
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The Board considers the outlook for the region and highlights its most important assets to the UK and Europe. The region boasts an exploitation base for North Sea oil, along with the only land-adjacent, high productivity fishery grounds among the Common Market countries and the largest, most unspoiled area in Europe for tourism.
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The Local Government (Scotland) Act 1973 is passed. It reforms local government into a two-tier system of Regions and Unitary authorities on Islands.
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The Caledonian Steam Packet Company Ltd is renamed Caledonian MacBrayne Ltd, and takes over responsibility for operating Clyde and Western Isles ferry operations.
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A focus on social economic development
After some years of focus on bringing lucrative manufacturing to the region, the Board’s social role is under scrutiny, and an expanded budget for ‘non-economic’ grants is approved. The budget also includes support for Gaelic.
'Two Men of Tiree', filmed in 1974 demonstrates how the Board has put its social support into practice. -
A Gaelic College for Skye
Sabhal Mòr Ostaig is established in Sleat, Isle of Skye as a charitable trust. While the initial aim is to establish a Gaelic library, the long term plan is for a Gaelic-medium college providing vocational further education for Gaelic speakers, in their own language and rural environment, and to give the growing number of Gaelic enthusiasts the opportunity to learn the language.
Today, Sabhal Mòr Ostaig has surpassed the initial aims, and is Scotland’s National Centre for Gaelic Language and Culture.
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The Board starts providing financial assistance to salmon farming businesses.
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The Board contributes £150,000 to the creation of a theatre and cultural centre at Inverness. Eden Court will go on to be one of the UK's most successful theatres.
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Travel pass, a combined bus, train and ferry travel ticket for tourists is launched.
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A passenger ferry service is piloted over the summer between John O’Groats and Burwick in Orkney.
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A major offshore fabrication yard is established by Lewis Offshore Ltd (owned by Fred Olsen) at Arnish Point, near Stornoway. Although work fluctuates and the yard changes hands several times, it becomes a major employer in the area over the next 40 years.
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Hebridean Jewellery, which makes high quality Scottish Celtic jewellery, is established in Iochdar on the Island of South Uist.
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Ardyne Point to the southwest of Dunoon is used between 1974 and 1978 for the development of concrete gravity platforms for the North Sea oil industry. Three concrete platforms were built there before the yard was forced to close.
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This year sees two UK General Elections. The first in February sees Labour form a minority government under Harold Wilson, although they secure an outright majority in October.
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David Grant, while studying at the Royal College of Art in London, forms Highland Stoneware with support from the HIDB. Lochinver is chosen as the site for his workshop.
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A 3 day working week is enforced by the Government to regulate energy consumption and preserve fuel reserves in the wake of the 1973 oil crisis which has driven up the price of coal. This is further impacted by the Miner's strike. Despite this, the area sees population increase and unemployment fall.
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HIDB recognises the potential scale of development and employment at Sullom Voe and Flotta.
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In response to a request from the Secretary of State for Scotland, the Board prepares and publishes 'Road to the Isles: A study of sea freight charges in the Highlands and Islands'. The paper restates its case for the introduction of road equivalent tariffs, to reduce the disadvantage experienced by island communities, in relation to sea travel, and also calls for equity across vehicle ferry charges.
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HIDB's Isle of Barra hotel opens
The HIDB's Isle of Barra hotel opens.
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the flight to london
Dalcross Airport in Inverness reopens following runway strengthening and extension, facilitating the introduction of jet services to and from London the following year. This airport upgrade has been a major aim of the Board’s transport policy.
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As electrification of the west coast main line between London and Glasgow improves travel times, the "Clansman", a new day passenger train is introduced between Inverness and London to supplement the "Royal Highlander" night service.
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The rate of planning applications for oil-related activity slows down, but new production facilities start operation at Loch Kishorn and Stornoway, while terminal construction nears completion at Flotta and begins at Sullom Voe.
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10 YEARS OF ECONOMIC CHANGE
By its 10th year of operation, the Board had offered financial help for 3,437 projects and matched around £34m of private funds since 1965. Its early aims to sustain and grow the population have also come to fruition as the population increases.
The impact of the 1973 double dip recession has a noticeable impact on industry in the region. There is a fall in inward investment enquiries, plus an increase in vacant factories and workshops, and a number of firms close, particularly in the Inner Moray Firth area. However, the impact is cushioned by the demand for labour at the major fabrication yards for the offshore oil industry, particularly at Ardersier, Nigg and Kishorn. The total estimated number of oil-related jobs in the region rises from about 5,700 to 8,100.
It was also a year of ‘firsts’. The first American firm not to be involved in the offshore oil industry establishes a factory in the region. The first overseas marketing mission also takes place, as the board and 11 firms from the area visit Toronto and New York. Finally, a new food ‘mark’ is introduced, certifying authentic produce from the Highlands and Islands.
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The Board commissions a study to explore the economic and social effects of centralised education on rural areas. This is in response to growing parental concerns about the impact on school pupils of having to leave their homes to access comprehensive seconday education (which was introduced in Scotland in 1965). The study is especially keen to explore the extent to which level and location of education impacts on out-migration. It concludes that the expections and aspirations of parents and pupils are influenced by a broader range of social and economic factors, but that pupils have an early expectation of the need to leave their local communities to access job opportunities.
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Work begins on the construction of Kishorn yard and dock for the production of oil platforms. The yard, owned by Howard Doris, is used to build the 600,000 tonne Ninian Central Platform, the heaviest movable object made by man. By 1997, around 3,000 people are employed at the yard.
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The HIDB area is expanded to include the district of Nairn, the former Burgh of Grantown-on-Spey, the former district of Cromdale and the islands of Arran and Bute.
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Portavadie, on the eastern shore of Loch Fyne, is one site chosen for the construction of concrete oil platforms. The plan collapses and the site is abandoned.
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The UK electorate votes YES in a referendum for the UK to remain in EEC.
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Recognising the need to embrace emerging technology, a computer unit is installed in the HIDB Inverness office to process the increasing volume of financial data and statistical information.
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The Scottish Development Agency is launched - a precursor to Scottish Enterprise.
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Linking rural communities
Enforcement of the 1973 Local Government Act sees the setting up of single tier islands authorities in the region. The legislation provides them with powers to provide financial assistance to "public passenger transport services (whether by land, water or air)", and "to maintain, improve and operate any ferry situated wholly or partly within their area...". The newly formed Comhairle nan Eilean Siar quickly utilises these powers to introduce an internal air service between Barra and Stornoway.
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Local government reorganisation, in the wake of the Local Government (Scotland) Act 1973, leads to major investment in housing and other local infrastructure provision. This is felt across the region and is hailed as a stimulus for growth.
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A patent from Unilever for a new process to transfer young salmon (smolts) directly into the sea, is contested by the HIDB. The Board argues that the process could constrain the development of the aquaculture sector in the region. Following a period of drawn-out challenge, Unilever sells the patent to the Board for £1 in the mid-70s.
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The HIDB supports the British Rail case for a £3.5m investment in increasing the capacity of the rail link between Inverness and Perth, to complement the upgrading of the A9.
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BRINGING POWER TO RURAL COMMUNITIES
The HIDB engages in discussions with the North of Scotland Hydro-Electric Board (NSHEB) about their policy and future programme for providing electricity to small rural communities. Given geographical separation from distribution lines and the high costs involved, it is clear that some small communities will not be connected to the Hydro Board grid, and the HIDB investigate potential solutions. Schemes for Colonsay and North Ronaldsay, the two largest of the communities affected, are considered by the Board, in technical liaison with NSHEB and the Army.
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Three Trade Mark Schemes are now operated by the Board: the Craftmade Mark; the Shetland Knitwear Mark and the newly introduced Highland Food Mark.
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a fast new route to the city
The Ballachulish bridge opens, linking the villages of North and South Ballachulish on either side of Loch Leven. The 0.29km bridge reduces journey time from Fort William to Glasgow by around 30 minutes.
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The HIDB gives financial assistance to help 14 new craft businesses to set up in the region. These include a knitwear venture in Skye, woodturning in Mull, and Carron Pottery in Strathcarron.
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Jet services are introduced between London and Inverness, the BAC 1-11 aircraft increasing capacity and comfort while reducing flight times.
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Having established the commercial viability of salmon farming, Marine Harvest opens its second sea farm in Loch Leven.
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A British Airways rationalisation programme results in island air services to Glasgow and Edinburgh being transferred to Loganair.
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First North Sea oil to be landed in the HIDB area comes ashore at Flotta from the Piper Field. The Flotta Oil Terminal is officially opened by the Energy Minister early in 1977.
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Under the new chairman, leading economist Professor Kenneth Alexander, the board’s focus is on fresh development opportunities. Industrial fishing off the North-West coast, fish processing in Lewis, expansion of fish farming, deer farming, an oil refinery in the Cromarty Firth and a strategy for land use are all on the agenda.
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shetland secures an oil fund
A Shetland Oil Fund is set up as Sullom Voe Terminal begins operating, enabling the Oil Industry to compensate Shetlanders for the inconvenience of having the terminal based in Shetland. A Deed of Trust is granted by Shetland Islands Council (SIC), with themselves as sole trustee.
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Pioneering alternative energy
The first wave device – Salters Ducks – is tested off Dores Beach, Loch Ness. It was originally devised in 1974 by Professor Stephen Salter from the University of Edinburgh, as a source of alternative energy and a response to the oil shortage of the early 1970s. As one of the earliest generator designs, it provides "some 20 kw of power". Following slight modification, Coventry University, which had helped with the design, went on to utilise a separate device called the Sea Clam.
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A second area office opens in Stornoway - a local centre for the processing of applications for financial assistance and aftercare services. The board plans more area offices to increase contact with more remote populations.
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The Board provides evidence to the House of Commons Select Committee on the impact of the EEC Regional Development Fund on the Highlands and Islands. They emphasise that funds should be given on top of aid that is normally available for the UK.
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First North Sea oil to be landed in an HIDB area comes ashore at Flotta from the Piper Field.
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Commercialising Scottish Deer
The Board purchases the Rahoy Estate in Morven and sets up an experimental commercial deer farm. It runs until 1991 when the estate is sold by the newly established Highlands and Islands Enterprise.
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The Board publishes its Land Development strategy. This includes land reform proposals which would offer landowners, tenants and crofters more powers over how to use land to their own economic advantage.
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Fish farming trials begin in Orkney to assess the feasbility of on-growing hatchery produced turbot. The Board and Orkney Islands Council provide funding towards the project.
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The Board purchases the MFV "Hebridean" as a fisheries training vessel.
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The HIDB focuses efforts on the region's 'fragile areas' - places with little employment or economic growth. These include islands such as Islay and Jura, and work begins to study what particular problems isolated island communities are facing.
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Crofting Reform (Scotland) Act 1976
Crofters are given a right to buy their crofts through the Crofting Reform (Scotland) Act 1976.
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A working party on Moray Firth Development considers a possible gas gathering pipeline.
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The HIDB purchases Borve Lodge on the Isle of Harris and Borrodale House on the Isle of Raasay for hotel development. Conversion work on Borrodale House to create a 15-bedroom hotel begins in 1980. Borve Lodge did not proceed and the estate was sold on in 1985.
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Argyll College opens in Dunoon.
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Inverness college, in partnership with the HIDB, runs its first aquaculture training course.
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The HIDB initiate a programme of site testing across the West Highlands and Islands to assess the potential for oyster cultivation.
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The Co-Chomunn Scheme
Having met with the development agency at the Irish Gaeltacht and heard more about their work managing a wide range of community development, the Board is inspired to launch a co-operative, or Co-chomunn, scheme, offering information and financial aid for the establishment of community co-operatives, initially in the Western Isles.
The conditions for funding will depend on sound programmes of action, and the Board will match fund local funds and provide financial support for co-operative managers for the first few years. Four co-operatives are set up the following year in Ness, Pairc, Eriskay and Vatersay, all in the Outer Hebrides.
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John McEwen's groundbreaking book 'Who owns Scotland' is published.
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Major job losses are felt, particularly in Skye, following the completion of the concrete platform for the Ninian field constructed by Howard Doris partnership at Loch Kishorn. However, a new contract to provide an additional two years employment is agreed the following year.
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Following contract completions, Lewis Offshore announce redundancies for most of their 300 strong workforce at their yard at Arnish Point. Negotiation of a contract to convert a drilling rig into an oil production platform secures employment for a sizeable proportion of the labour force.
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a vital pipeline for wick
A pipe bundle fabrication yard opens at Wick - Kestrel Marine establish Subsea 7’s Pipeline Bundle Fabrication Site at Wester, near Wick in Caithness. The site runs 7.8km inland, covers a total area in excess of 300,000m² and has a sheltered bay in which to launch the Pipeline Bundles.
The BBC's One Show filmed engineers moving a tow head from SubSea 7 through Wick.
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The Secretary of State gives consent for Highland Craftpoint, an arts organisation set up by the HIDB and the Scottish Development Agency, to be established in new premises in Beauly.
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The Complete Package
The Board takes a holistic approach to the development of the fishing sector and opens a specialised factory in Breasclete on the Isle of Lewis to dry blue whiting for sale to emerging markets. Alongside this, is the opening of Breasclete pier, constructed by the HIDB to support this area of activity.
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Sullom Voe terminal construction workforce reaches 6,000.
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The Shetland Islands Council Charitable Trust (SICCT) is activated to receive and disburse the Shetland Oil Fund.
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A further extension order is granted to add Great and Little Cumbrae to the HIDB area.
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A referendum is held on Scottish Devolution. The Labour Government stipulates that a Scottish Assembly will be formed if the referendum is supported by 50% of the vote. Although 51.6% vote in favour, it represents 32.9% of the electorate, so the Assembly is not formed.
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Further consideration is given to the concept of RET (Road Equivalent Tarriff), highlighting the difficulties of creating a transport policy for the region. The Government publish a review on RET and launch a consultation.
See the HIDB response to the Scottish Office consultation here.
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The Conservatives assume power in this year's General Election, starting an 18 year term of power, 11 of which are under the leadership of Margaret Thatcher, and the remainder under John Major.
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The new Wilsness terminal building opens at Sumburgh Airport.
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The Piers Arts Centre opens in Stromness. This building houses the collection of British fine art donated to Orkney by peace activist and author Margaret Gardiner. The collection is officially recognised by Museums Galleries Scotland as one of national significance. The Centre is extended in 2007, and is a partner of the Tate Gallery.
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The HIDB terminates its Fisheries Development Scheme, and instead begins to provide grants and loans to assist the purchase of vessels.
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The Cromarty Bridge opens over the Cromarty Firth in Ross-shire. The first of the iconic "Three Firths" crossings which transform road connectivity in the Highlands, the Cromarty Bridge reduces journey times to and from the far north of the region by approximately 12 miles.