1. Rural Development and the Caithness/ North Sutherland economy Eann Sinclair Programme Manager Caithness & North Sutherland Regeneration Partnership 26 th October 2009

2. The area approx. 27,000 population (declining) Ageing population Higher than average dependence on manufacturing and public sector employment

3. Current issues Dounreay plant in decommissioning – interim end-state 2025 Site currently provides employment for approx 2,000 Neighbouring Rolls-Royce operated Vulcan site likely to enter decommissioning in 2014 (265 employees)

4. A Strategy for Caithness & north Sutherland (2006) To maintain, and if possible increase, the GDP of the Dounreay travel-to-work area by actively working to promote existing employment, encourage new employment and by promoting the area as an attractive place to live and work

5. Action Plan – High Priorities Economic Drivers Develop a globally-significant marine energy industry around the Pentland Firth Grow the Caithness engineering industry Create a world-class tourism facility at john O’ Groats Grow the area’s food and drink industry Attract businesses and organisations to relocate to this area Enabling activities Develop services and infrastructure at Scrabster harbour Develop Wick Harbour Develop the area’s high-speed IT connectivity Help ensure good transport links Help ensure good access to finance for businesses

6. Regeneration Partnership Informal partnership of HIE, Highland Council, Nuclear Decommissioning Authority, Scottish Government. Executive Board (independent Chairman Sir Anthony Cleaver) Advisory Board (chairman Cllr. Sandy Park, Convener of Highland Council) Senior Officers’ Group (local budget holders in key partner bodies)

8. The past 12 months Caithness Chamber of Commerce revitalised Centre for Energy & the Environment announced MaREE project commences Engineering Skills centre announced Schools-level STEM project planning New NES engineering facility at Bower opens Caithness Beef & Lamb Ltd’s processing plant opens North Highland Tourism funding announced Wick Marina opens Caithness Horizons opens John O’ Groats Masterplan launched “Blue” Data Centre plans announced

10. The past 12 months Caithness Chamber of Commerce revitalised Centre for Energy & the Environment announced MaREE project commences Engineering Skills centre announced Schools-level STEM project planning New NES engineering facility at Bower opens Caithness Beef & Lamb Ltd’s processing plant opens North Highland Tourism funding announced Wick Marina opens Caithness Horizons opens John O’ Groats Masterplan launched “Blue” Data Centre plans announced

12. The past 12 months Caithness Chamber of Commerce revitalised Centre for Energy & the Environment announced MaREE project commences Engineering Skills centre announced Schools-level STEM project planning New NES engineering facility at Bower opens Caithness Beef & Lamb Ltd’s processing plant opens North Highland Tourism funding announced Wick Marina opens Caithness Horizons opens John O’ Groats Masterplan launched “Blue” Data Centre plans announced

14. The past 12 months Caithness Chamber of Commerce revitalised Centre for Energy & the Environment announced MaREE project commences Engineering Skills centre announced Schools-level STEM project planning New NES engineering facility at Bower opens Caithness Beef & Lamb Ltd’s processing plant opens North Highland Tourism funding announced Wick Marina opens Caithness Horizons opens John O’ Groats Masterplan launched “Blue” Data Centre plans announced

16. Pentland Firth Marine Energy Pentland Firth leasing process almost completed 20 applications for leases, at 42 sites (tidal and wave) Grid connections Environmental impacts HIE/ CNSRP Inward Missions for marine device developers (18 companies) and local supply chain Need to understand developer requirements

17. Atlantis Resources Corp – Solon device

18. The next 12 months North Highland Tourism marketing campaign starts Growth in food & drink sector Digital exchanges enabled/ upgraded Pentland Firth leases announced/ developers’ forum starts Offshore wind leases awarded in Moray Firth Local companies bidding for marine energy contracts Secure commitments to manufacturing base for wave/ tidal devices Scrabster harbour Phase 1 commences DSRL staff transition planning National Nuclear Archive construction phase starts Secure inward investment from high energy users (eg. Data Centre) Secure inward investment in key sectors

19. Aquamarine Power – Oyster® device 2009

21. The next 12 months North Highland Tourism marketing campaign starts Growth in food & drink sector Digital exchanges enabled/ upgraded Pentland Firth leases announced/ developers’ forum starts Offshore wind leases awarded in Moray Firth Local companies bidding for marine energy contracts Secure commitments to manufacturing base for wave/ tidal devices Scrabster harbour Phase 1 commences DSRL staff transition planning National Nuclear Archive construction phase starts Secure inward investment from high energy users (eg. Data Centre) Secure inward investment in key sectors

22. AudienceOur Inward Investment Messages Back Office and Contact Centres Skilled available workforce Loyal staff and a pleasant working environment for all Competitive labour costs Attractive property solutions Data CentresCool Climate Green Power close to source Cheaper land Security Interim measure to combat lack of grid connection TourismSkilled workforce Less expensive sites and properties Natural, unspoilt and healthy environment Historical significance Demonstrated foot fall Gap in the market Renewable EnergySkilled engineering base Transference of skills from Dounreay Geographical advantages of North Highlands located on the shores of the Pentland Firth Structured public sector approach to encourage market by investing in infrastructure The Crown Estate leasing of the seabed to marine energy device developers and Round 3 leases for offshore wind Support of the Scottish Government Public Sector jobsFragile economy Political importance Socio-Economic benefits

23. Why is this important?

24. Questions?