UYEASOUND PRIMARY SCHOOL

Socio-Economic Study

A Report

for

SHETLAND ISLANDS COUNCIL

by

Steve Westbrook, Economist

in partnership with

Sandy Anderson

March 2011

Steve Westbrook, Economist, Bellevue, Seafield Street, Nairn IV12 4HL Tel / Fax: 01667 455308 E-mail: srwestbrook@aol.com

Appendix G

Uyeasound Primary School - Socio-Economic Study

A Report for Shetland Islands Council

Contents: Page No: Section 1. : Introduction 1 Section 2. : Background 4 Section 3. : The Economy 10 Section 4. : The Impacts of Closing Uyeasound Primary School 17 Section 5. : Potential Mitigating Actions 19 Section 6. : Conclusions 21 Appendix 1 : Uyeasound Primary School Catchment Area

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1. INTRODUCTION 1.1 This report was commissioned by Shetland Islands Council to inform the

Council’s consideration of the future of the primary school at Uyeasound in Unst. This is taking place as part of a wider Blueprint for Education which aims to set the shape of the Education Service across Shetland for the next 10 years. Whilst striving to continue to provide high quality educational opportunities and learning environments, the Council requires to achieve cost savings in educational provision as part of its overall need to reduce annual operational expenditure. In the light of projected falling school rolls across Shetland and a high degree of over-capacity in its primary schools as a whole (including Baltasound in Unst); it is proposing to close rural primary schools in Uyeasound (Unst), Burravoe (Yell), and in North Roe and Sandness on Mainland Shetland. This is in addition to cost savings that the Council has identified across its schools, including Baltasound Junior High School Primary Department, where the pupils of Uyeasound Primary School would continue their education if the proposal to close the school is implemented.

1.2 Uyeasound has been listed by the Scottish Government as a very remote

rural school and is therefore subject to special provisions under the Schools (Consultation) (Scotland) Act 2010. Local authorities are required by the Scottish Government to consider three factors which acknowledge and reflect the particular importance of a school to the more fragile and vulnerable rural and remote communities of Scotland:

� any viable alternative to closure; � the likely effect on the local community if the school were to close (with

particular reference to the sustainability of the community); � the likely effect of different travelling arrangements occasioned by the

closure. 1.3 The terms of reference for this socio-economic study were to:

� provide information on the economy of Uyeasound Primary School’s

catchment area (i.e. employment, business output, etc); � identify the workforce requirements of businesses and organisations in

the Uyeasound Primary School catchment area;

� identify the direct and other impacts of closing the Uyeasound Primary School;

� identify the potential impacts relating to families leaving Uyeasound

because they are not prepared for their children to travel to Baltasound for primary schooling;

� investigate possible mitigation should the school close, such as the

prospects for additional private and public sector employment in Uyeasound and the scope for attracting new residents.

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1.4 In compiling the report we have drawn upon previous research by Shetland Islands Council and other organisations. We also used national and local information sources and received helpful input from a wide range of consultees, including a number of local people. We visited the school for a meeting with the Parent Council, and spoke to representatives of local organisations such as the Unst Partnership and Bluemull Development Company, and local businesses, as well as the school’s head teacher.

1.5 Since much of the published data relating to the Uyeasound area is based on

2001 Census information and is therefore relatively out of date, we compiled our own database to identify the local population, their gender and age group, employment status, etc. This was developed from a variety of sources, including the Council Tax register, the electoral roll and information provided to us by the community through a series of discussions with local contacts and others with knowledge of the island’s population and businesses.

The Council’s Anticipated Cost Savings 1.6 As calculated from the Council’s Proposal Paper (January 2011), the net

annual cost saving to the Education budget from the status quo through closing Uyeasound school would be £110,504 – including the efficiency savings of £13,451 that the Council intends to make should the school stay open. Total savings would be £123,327, from which additional costs at Baltasound Junior High School Department from having the additional children from Uyeasound of £12,823 are subtracted to give £110,504. Subtracting also the net additional annual cost relating to pupil transport to Baltasound which the Council assesses as £4,180 from this £110,504 would give a net saving of £106,324 – i.e. more than £1 million over ten years. Subtracting the efficiency savings at Uyeasound should the school not close would mean an additional net saving of £92,873 from the closure. This assumes that the Council retains ownership of the school building and continues to incur the future associated property costs. Should the building be sold, there would be further annual cost savings of £7,483.

1.7 In the short term, the Council would also incur additional costs associated

with reducing the school’s staffing – depending on the redeployment of staff, the time that this takes, whether any take early retirement, etc.

1.8 The direct staffing reductions and savings in other expenditures by the school

in the local economy would generate the negative economic impacts that are assessed in Section 4 of this report. Given the economic and social fragility of Unst, it is also relevant to note that the Council proposes to make net annual efficiency savings of £104,677 at Baltasound Junior High School Primary Department, with further, though more modest, savings in the operational costs of the school’s Secondary Department. This will result in a further significant net employment reduction in Unst.

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Uyeasound School 1.9 Uyeasound Primary School currently (2010/11) has a roll of 11 pupils. This

compares with a low of 7 in 2004/05 and 2005/06, and 20 in 2000/01, which preceded the closure of the RAF base at Saxa Vord. The roll was projected by the Council in March 2010 to fall to 9 in 2013/14.

1.10 Uyeasound Primary School consists of two good-sized classrooms. It was

originally a one room Victorian school built circa 1900, with a house attached. In 1976, an additional timber clad extension was added which consists of a classroom and pupil toilets. The school is not compliant with current disability discrimination legislation, and the costs of compliance would be approximately £30,000.

1.11 Although this study addresses socio-economic rather than educational

impacts from closing Uyeasound School, it is relevant to the analysis that the recent Her Majesty’s Inspectorate of Education’s inspection (published in May 2010) classes the school as “sector leading, outstanding” in almost all areas. The report was the best for any school inspected in the current HMIe regime.

1.12 If the school is closed, the school building, together with the school house

(the head teacher will be redeployed and re-housed), could be reused or modified for an alternative purpose of community benefit. This possibility is assessed in Section 5 below.

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2. BACKGROUND Location 2.1 Uyeasound is a small community in the south of Unst. The school catchment

area takes in the area south of a diagonal line through Caldback on the road to Baltasound.

Reproduced from Ordnance Survey map data by permission of Ordnance Survey, © Crown copyright

2.2 Unst itself is the most northerly inhabited island in the UK, and the third

largest island in Shetland after the Mainland and the neighbouring island of Yell. It is connected to the mainland by ferry crossings from Unst to Yell and then from Yell to the Mainland. The island has an area of some 46 square miles and is 12 miles from north to south and 5 miles from east to west.

Unst 2.3 Much of the available data on the population of Unst dates from the 2001

Census and earlier. In 2003, the General Register Office for Scotland (GRO) published an analysis of data from the Census for Scotland’s inhabited islands1 and selected data from this is shown in the table below, comparing the situation in Unst with that of all inhabited islands and Scotland as a whole.

1 Fleming, Alan. Scotland’s Census 2001: statistics for inhabited islands. Occasional Paper no 10. GROS,

2003.

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Unst Islands Scotland

2001 1991 2001 1991 2001 1991

Population 720 1,055

% change -31.8 -3.0 +1.3

Households 321 371

% change -13.5 +8.0 +8.5

% under 16 21.1 23.3 19.5 21.0 19.2 20.2

% retirement age 17.9 12.5 21.4 20.5 18.6 18.2

% Limiting long term illness

17.4 7.3 19.4 12.0 20.3 13.7

% Living alone 40.8 25.9 33.9 29.7 32.9 28.6

% Lone parent households

1.9 1.9 4.6 2.6 6.9 4.5

% Pensioner only households

25.9 17.8 26.1 26.5 23.5 24.1

2.4 There was a marked reduction in the population and number of households in

Unst between the 1991 and 2001 Censuses, reflecting changes in employment opportunities at the airport and the scaling down of the RAF base at Saxa Vord. These reductions were significantly different from the trends elsewhere in Scotland. Alongside this, the number of people living alone grew substantially while the number of lone parent households stayed well below the averages for other islands and Scotland. The reduced percentage of people under 16 and increase in those of retirement age reflected a national trend (which has continued).

2.5 Since the 2001 Census, the Scottish Government has moved to using data

zones as the smallest unit for socio-economic statistical measurement, and one data zone covers both Unst and Fetlar. This means that the population estimates published by GROS and other demographic information (such as the data available on the Scottish Neighbourhood Statistics website) do not relate solely to Unst and can be misleading. The most recent population estimates, shown below, give a combined population of 777 in 2009. The trend towards an ageing population is shown to be continuing, with 17.6% of the 2009 population being under 16 and 22.8% of pensionable age.

2.6 12% of the population of the Unst and Fetlar data zone are defined as income

deprived (receiving a combination of key benefits), compared with 8% in Shetland as a whole. The proportion of the population aged 60 and over claiming guaranteed pension credits is 20.6%, compared with 14.4% for Shetland as a whole.

2.7 With around 70 people living on Fetlar, the combined population figure

suggests a current Unst population of around 700, reflecting a continued decline following, in particular, the complete closure of the RAF base in 2006. The breakdown of the combined population for Fetlar and Unst is shown overleaf:

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Information by Data Zone – Fetlar & Unst

Mid Year Population Estimates, 2009

Age Group Male Female Total

0-4 20 19 39

5-9 23 17 40

10-14 31 27 58

15-19 22 19 41

20-24 11 12 23

25-29 9 17 26

30-34 13 24 37

35-39 27 16 43

40-44 26 24 50

45-49 43 37 80

50-54 34 27 61

54-59 27 34 61

60-64 41 29 70

65-69 22 27 49

70-74 18 17 35

75-79 11 12 23

80-84 5 16 21

85-89 4 14 18

90+ 0 2 2

Total 387 390 777

Source: Shetland Islands Council

Uyeasound 2.8 There is no published socio-economic data on areas within Unst. To provide

an updated socio-economic profile for 2011 on the Uyeasound school catchment area (referred to hereafter as Uyeasound), we have used the information we have gathered through this study. As it was collected less formally than through a Census, this information is less reliable, but it does allow a relatively accurate representation of the current position. According to local contacts, the threat of closure of the school since at least 1996 has constrained population growth in the area.

Uyeasound Unst & Fetlar

Uyeasound 2011 2009

Total residents 128 777

% male 47.7 49.8

% retired/not working 25.0 22.8

% children 15.6 17.6

Total residential properties 85

Total households 61 363

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Housing 2.9 Our study suggests that there are 61 households in the Uyeasound Primary

School catchment area. Taking the Scottish Assessors’ database as a starting point, and including 2 properties registered for non-domestic rates as self catering units, we estimate that there are 85 residential properties in the area. The balance between the number of properties and the number of households includes holiday homes (some of which have been kept by former residents, or their families, who now live elsewhere) and empty properties, some in need of considerable repair.

2.10 There have been few house sales in the Uyeasound area in recent years,

with 6 recorded on the Registers of Scotland database in the last 3 years. A search of Shetland solicitors and estate agents suggests that one house in the area is for sale (and currently under offer). Another family house is due to be occupied by a couple with 2 young children when the current occupants complete a house they are building.

2.11 Planning applications for further new build houses are also relatively few, with

only 2 recent housing approvals. It is understood that one of these is almost completed, while work on the other may begin soon. Land is available for additional housing from the Estate or other private landowners.

2.12 There are 17 houses in the social rented sector. 3 of these are currently used

as sheltered housing while 4 are part of the extra care scheme, providing 24 hour support for residents. The waiting list for social housing in Unst currently stands at 32, with 1 application accepted, 6 applications active, 2 deferred, 3 with an offer pending, 6 pending (waiting on further information or clarification of their points) and 14 suspended (which is usually because households are ineligible for allocation or because further information is required).

2.13 Whilst there is a legacy of housing stock from the former RAF operations in

Unst there are strong views that there is not enough housing availability in the Uyeasound area. Young people who would like their own homes have to stay with their parents if they want to remain in Uyeasound, young couples who wish to live in the area have difficulty finding homes, and potential employment recruits from outside Unst cannot relocate to Uyeasound because there is no housing available. This is restricting the opportunities for Uyeasound to grow and thrive as a community, retain and attract younger people to set up home, and have families living in the area.

Transport 2.14 The Unst to Yell ferry terminal is in Belmont, which is within the Uyeasound

catchment area. It takes 10 minutes to reach Yell. A further ferry (20 minutes) connects from the far side of Yell, a 25 minute car journey, to the Mainland. The return fare from the Mainland to Yell for a car and driver is £8.40 with the onward journey to Unst being free. Passenger numbers (including trips to Fetlar) have been as follows:

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2006 2007 2008 2009 Growth 2006-09

Passengers 138,452 145,998 149,130 157,778 + 14.0%

Vehicles 71,067 78,702 78,355 87,525 + 23.2% Source: Shetland in Statistics

Uyeasound Primary School

2.15 Uyeasound Primary School has a current roll of 11 pupils in one composite

class. It does not provide nursery education, with formal pre-school provision being based at Baltasound Junior High School nursery department. Pupils transfer to Baltasound Junior High School for Secondary 1 to Secondary 4. They can then transfer to the Anderson High School, in Lerwick, for Secondary 5 and Secondary 6, staying in a Hall of Residence during the week and returning home at weekends.

2.16 School transport is provided for one pupil. 9 live close enough to walk or

cycle to school, and the other lives in Baltasound but has opted to attend Uyeasound.

2.17 On Wednesdays, Uyeasound pupils attend Baltasound Junior High School to

access expressive arts and other specialist staff. They also receive PE in the Shetland Recreational Trust’s Unst Leisure Centre across the road from Baltasound Junior High School. The pupils have their lunch at Baltasound Junior High School that day while on other days lunches are transported by a private contractor from Baltasound Junior High School.

2.18 The Uyeasound school roll is projected by the Council to fall to ten pupils for

2011/12 and 2012/13, then to nine in 2013/14. There are currently 2 pre-school children in Uyeasound (one a baby), although a family is due to move in soon with a further 2. Should the school not close, the degree of success in realising the opportunities created by the new pier and other potential local development initiatives (see Sections 3 and 5 below), the extent to which additional housing can be provided locally, and the pattern of residence by age will all help to determine the medium to longer term school roll – together with the relative quality of the school, as perceived by parents. Thus, on particular development scenarios over the next ten years, the school roll could exceed the current total of eleven, although additional housing suitable for young families would probably be required to achieve this.

Community Use of the School 2.19 Uyeasound Primary school seeks to be at the heart of the community and

serves it in many ways. It provides premises for meetings, administration services and broadband access. The Mothers and Toddlers group, which serves the whole of Unst, meets in the school, as does the Unst fiddle and dance club and a fiddle night class. The Brownies use the school for art and craft sessions.

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2.20 The school has strong links with the Care Centre in Baltasound and Brucehall Terrace extra care and sheltered housing in Uyeasound. Pupils attended the extra care project opening and are now going to take on the gardens at Brucehall Terrace, where the plan is to try to develop some small scale crofting. This promotes inter-generational working and ensures good links between the youngest and the oldest in the community.

2.21 The school also takes a role in important events in Uyeasound, including the

local Up Helly Aa – making the shields for the burning galley, providing the border for the bill, hosting the Jarl Squad and decorating the local hall. The pupils ride through Uyeasound in the galley, firmly linking the event to the community and helping retain its profile with the younger generation.

2.22 The school is the only official presence in Uyeasound, which has no doctor’s

surgery or Council offices or resident minister. As such, the school is the only place in Uyeasound that local people can approach to sign or witness official documents such as passport photos or gun licence applications. School staff, as the only professional people in the area, are also asked to audit voluntary group accounts.

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3. THE ECONOMY 3.1 Unst is a remote island community, the most northerly inhabited island in the

UK. For many years its economy was dominated by two large employers, the airport at Baltasound and RAF Saxa Vord. Both of these are now closed and this has caused serious problems in ensuring the sustainability of the island. Although there are distinct communities within Unst, the people who live there are relatively mobile across the island. Those who live in Uyeasound might work in Baltasound and vice versa. Some people work in Yell, making use of the free ferry service, and some work further afield – a few in Lerwick and some offshore. There are no retail units in the southern part of the island and many residents supplement an occasional trip to a supermarket in Lerwick with local shopping in Baltasound. This makes the concept of a separate Uyeasound economy less clear than it would be with a more isolated and self contained community.

3.2 Much of the economy of Unst is based on aquaculture and tourism, but the

public sector is also an important source of direct employment. Self employment is relatively common, often supplementing another income source. Unst is a crofting community and many of the island properties include crofting land. Crofting is rarely a full time occupation, however, and most crofters need to supplement their income through other work.

3.3 As one of the North Isles and given its particular challenges, Unst was

designated an Initiative at the Edge (IatE) area in October 2004. IatE was a Scottish Government initiative designed to provide assistance in overcoming the difficulties faced by communities in some of Scotland’s most remote and fragile areas. IatE status lasted for three years, with continuing support for a further two years by IatE partner agencies. Since September 2009, activities have been continued under the new name of the Bluemull Development Company (BDC) with a more focussed vision and remit for Business and Employment, Tourism and Youth in the isles of Unst and Yell. Also, the Unst Partnership Ltd has recently produced a draft Unst Development Plan, 2010-15, which includes a number of potential development projects (see Section 5 below).

3.4 Shetland Islands Council (SIC) carries out periodic employment surveys, the

most recent of which was in 2007. The challenges that have faced Unst due to the closure of Saxa Vord are clear from comparing the figures with the earlier survey in 2003:

2003 2007

Full time

Part time

Total FTE Full time

Part time

Total FTE

Males 150 38 188 163 57 35 92 69

Females 74 138 212 120 34 120 154 74

Total 224 176 400 283 91 155 246 143

3.5 The number of FTE jobs in Unst fell by almost 50% over the 4 year period,

during which time the population was relatively stable – the GROS population

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estimate for the Unst and Fetlar data zone was 812 in 2003 and 774 in 20072. Full time jobs were especially seriously hit in this time, with 93 full time jobs for men and 40 for women disappearing.

3.6 The continuing effects of these challenges are reflected in income levels in

Unst. SIC3 quotes figures derived from CACI Paycheck data giving median household income levels for each of Shetland’s Community Council areas in 2009. For Unst, the median figure was £26,126, compared with £30,180 for Shetland as a whole. The income levels in Unst were lower than in any other Community Council area except Fetlar and Skerries. The median figure for postcodes in the Uyeasound area was £22,193. This was not only lower than the overall average for Unst, but also lower than any of the Community Council areas in Shetland.

3.7 The mean income derived from CACI Paycheck for Uyeasound was £24,698.

With 61 households, this would suggest a total household income of just over £1.5 million.

3.8 Our work as part of this study has identified the following employment and

economic activity in the Uyeasound area. As mentioned above, these figures have come from detailed discussions with members of the community, and although they may not have the accuracy of a formal Census, they give the best available picture of the current situation.

Uyeasound Notes

Population

Male 61

Female 67

Total 128

Economic Activity

Retired 32 Or otherwise not working

In Education 25 Includes pre-school and those away at university or college

Full time work - local 22 Includes self employed

Part time work - local 10 Includes self employed

Full time work - Unst 14

Part time work - Unst 8

Full time work - off island 11

3.9 Of the 65 jobs identified, 29 (45%) are in the public sector, mostly associated

with education and social care in Uyeasound or Baltasound. A number of people have more than one part time job, in which case this is reflected in the table above.

3.10 It should be noted that there are no local services in Uyeasound. The two

local shops closed around 10 years ago, as did the local Post Office. There are no local tradesmen, garages or businesses providing services for local people. This means that the money earned by people in Uyeasound almost

2 General Register Office for Scotland. Small Area Population Estimates. 3 Shetland Islands Assessment of Housing Need and Demand. August 2010.

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all goes out of the community, rather than re-circulating and creating extra value (and further employment).

Aquaculture 3.11 Uyeasound is an important area for aquaculture in the south of Unst and this

has been boosted by the construction of a new £3 million pier which opened in 2009. Uyeasound Salmon employs 8 people in its fish farming operation, while Lakeland Salmon (now part of Meridian Salmon) employs 13 people in its operations at Uyeasound. The latter has had some difficulty recruiting staff and its current employees include a migrant worker recruited through an agency. The company owns a property in Uyeasound and so has been able to make accommodation available. If suitable employees could be found, the company would recruit an additional 2 workers.

3.12 The salmon farms generate wider benefits for the Unst, Shetland and Scottish

economies: buying smolts from local hatcheries, using Shetland boats for their operations and providing the product for processing and distribution. About half of the workforce live in Uyeasound, with the others coming from further north in Unst, from Yell and from Fetlar. Unst Shellfish is also based in Uyeasound, growing mussels in Uyeasound and Baltasound and processing them at its plant in Baltasound. The aquaculture sector in Uyeasound has an annual turnover of several million pounds. The total direct employment in Uyeasound is 23.

Tourism 3.13 The 2006 Shetland Visitor Survey estimated that 59,924 people visit Shetland

in a year (excluding cruise ship passengers), spending a total of £15.3 million. A further 1,292 yacht travellers were estimated to spend £163,000.

3.14 27% of the visitors surveyed said they had visited Unst and, combined with

the average number of nights stayed, this would mean that around 16,000 tourists might visit Unst each year, staying a total of c21,000 nights. With an average spend per night (excluding travel to Shetland) of around £44, this suggests that tourism might generate some £924,000 annually for Unst. In addition, 30% of yacht travellers indicated that they visited Unst, which would give another 350 visitors.

3.15 Since 2006, there have been a number of tourism related developments in

Unst which have improved its tourism appeal and scope to accommodate overnight visitors, including Viking Unst and the tourism developments at Saxa Vord. All of the visitors to Unst will pass through the Uyeasound area via the ferry terminal at Belmont, and Muness Castle, a Historic Scotland property is close to the school and likely to attract most visitors touring the area.

3.16 There is one bed and breakfast establishment and 2 self catering cottages in

the Uyeasound area. Belmont House, which has recently been renovated, will be opened as a high end self catering let through the National Trust for Scotland in 2011. In addition, around 12 of the properties in the area are holiday houses, owned by people from Lerwick or further afield who are likely

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to be regular visitors. There is also a hostel and caravan site at Uyeasound, operated by the Unst Youth Centre Trust. Gardiesfauld hostel can accommodate 35 people and has facilities for camping and 5 serviced caravan pitches. The hostel supports 4 part time seasonal posts and has a turnover of less than £20,000. It receives a grant from Shetland Islands Council to help cover its running costs.

3.17 Apart from accommodation, however, with no shops and no specific tourism

related businesses, there is little for visitors to spend their money on in the Uyeasound area, which limits the economic benefit from tourist visits. A craft shop / tearoom at Muness, Nornova, has closed.

The Public and Community Sector The School 3.18 Uyeasound School currently supports the following employment in

Uyeasound in full-time equivalent (fte) jobs: Ftes

Headteacher 1.0 Management Relief Teacher 0.3 Additional Support Needs Teacher 0.1 Classroom Assistant 0.4 Clerical Assistant 0.2 Supervisory Assistant 0.2 (plus 4 lunch times per week) Cleaner 0.4 Total 2.6 Ftes

3.19 The school also has access to business management support from the Devolved School Management Officer for the North Isles based at Mid Yell Junior High School, and teaching time is accessed from six secondary specialists from Baltasound Junior High School. There is also a contractor who collects school meals from Baltasound where they are prepared. Other than the ASN teacher, all of the staff live in Uyeasound. Total employee costs as shown in the status quo school budget are £96,899.

3.20 If the school remained open, staffing would be reduced by 0.27 fte posts with a saving of £8,426 through savings proposals for schools in Shetland. Consultees for this study raised the possibility of the school, with its record of excellence, becoming a model of best practice for a small rural school, which could attract visitors to Unst to see the school if this were well promoted.

Social Care 3.21 Social Work has 39 service users in Unst, 12 of whom live in the Uyeasound

area. 42 staff, full and part time, are employed in Unst, including 9 in Uyeasound.

3.22 Four of the sheltered houses at Brucehall Terrace in Uyeasound have been

adapted and refurbished as self-contained one-bedroom houses to provide

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24-hour care and social support for tenants, in order to provide and maintain social life within and outside the scheme and integrate tenants into the community. This is a partnership between the Council’s housing department and social care that was originally set up as a pilot project.

3.23 6 full time care workers are employed specifically for the extra care service in

Brucehall Terrace, plus various part time posts to provide cover. Three of the full time workers live in Uyeasound, one in a short term winter let, but there are difficulties in recruiting local staff because of the shortage of housing in the area. People have been recruited from outside Unst but have been unable to take up post because they could not find anywhere to live. In the winter there can be difficulties in staff travelling from the north end of Unst and, given the 24 hour nature of the care provided and the shift working involved, this can create problems.

3.24 A total of 7.75 fte staff are employed in social care in Uyeasound, with the

work divided between a number of local people. Self Employment 3.25 A significant number of the jobs in Uyeasound are self employment – 17 of

the 32 local jobs. These include people who work in aquaculture, farming, tourism and crafts and may be full or part time. In addition a number of people run small scale crofts. The job numbers quoted do not include part time crofting, which supplements the economic output of the area.

Workforce Requirements 3.26 The primary factor mentioned by employers in discussing recruitment was the

lack of housing in the Uyeasound area for workers. Both aquaculture and social care have had difficulties recruiting staff. The lack of local housing can be overcome to some extent by recruiting from outside Uyeasound, but this can cause difficulties in the winter.

Summary of Employment and Output 3.27 The make up of employment in the Uyeasound Primary School catchment

area is estimated from our study as shown below. Note that not all of these jobs are filled by Uyeasound residents and the earnings of local people working outside the area are excluded.

3.28 Earnings are estimated in some cases, and include income from self

employment.

Jobs Ftes Output £’000

Earnings £’000

Aquaculture 23 23 14,500 460

Uyeasound School 8 2.7 102 82

Other Public Sector 11 9.75 200 160

Other Employment 10 7 126 126

Totals 52 42.45 14,928 828

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3.29 Output (estimated in some cases) relates to production by companies based in Uyeasound and contributes more widely to the Shetland economy. For people working away from Uyeasound and for public sector work, output broadly equates to earnings plus employment costs. Building work in Uyeasound, e.g. housing construction work and specialist maintenance that would be undertaken by non-residents, is excluded from the output estimates above.

3.30 It is not necessary to apply a “multiplier” to assess Uyeasound’s supply chain

and “induced” employment through the local spending of employees as these impacts are captured by our comprehensive assessment, but the lack of local services mean that there is little added value of this type.

3.31 With some broad assumptions on the level of earnings, the 47 full time jobs

and 18 part time jobs held by people living in Uyeasound might equate to total earnings of around £1.25 million. To this would be added the incomes of the 32 retired people in Uyeasound, which might come to around £320,000. This would give a total income of around £1.6 million for the 72 households. This compares to the CACI-derived figure of £1.5 million given in paragraph 3.7.

3.32 New developments and proposals that would increase local employment

opportunities are summarised in Section 5 below. Voluntary Work and Community Cohesion 3.33 Local residents put a substantial amount of time annually into voluntary work,

which gives the area a good range of facilities and services and helps to compensate for relative remoteness and sparsity of population. We were given the following estimate of annual volunteer time provided by the 12 Parent Council members:

Uyeasound Parent Council 1,080 hours Baltasound Junior High School - Parent Council 25 hours - Parental Volunteering 24 hours Coastguard 274 hours Waterfront Trust 20 hours Up Helly Aa 130 hours Community Council 50 hours Youth Hostel 36 hours Hall 390 hours Playgroups 25 hours Unst Fest 80 hours Arts & Crafts 50 hours North Isles Childcare Ltd 275 hours Bluemull Development Co 25 hours Unst Partnership 110 hours Unst Junior Netball 20 hours Shetland Junior Squash 72 hours Unst Farmers’ Market 12 hours

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Shetland Junior Netball 64 hours Music 346 hours Unst Womens’ Football Club 30 hours Unst Show 55 hours Dementia Training 30 hours Pony Club 10 hours Neesiks 31 hours Miscellaneous 63 hours 3.34 This times totals 3,327 hours. Other voluntary inputs by the local community

are estimated to total 4,750 – giving 8,077 hours per year altogether. This represents an input equivalent to c5 job years. If this time is valued at an average of £15,000 per fte year, it is worth £75,000 to the Unst community.

3.35 It was clear from our local contacts that the people who give up their time for

community benefit, many of whom are parents, put a high value on retaining the school and believe that it is the main way in which the Council supports the community and their own efforts. Average annual funding from the Council for hall equipment and the hostel are relatively modest. Community dynamics are complex, and there is a real risk that the exceptional efforts that this community has made to improve its social and economic circumstances would diminish should the school be closed and active parents move away (or not be replaced by others as they themselves age).

3.36 Continuity and cohesion within the community are illustrated by information

provided by the Parent Council on ex-pupils of the school who currently live in the community. Of the 12 Parent Council members, 6 are ex-pupils of the school, whilst three of the eight people who have recently moved to Uyeasound as four young couples were former school pupils.

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4. THE IMPACTS OF CLOSING UYEASOUND PRIMARY SCHOOL Direct Impacts 4.1 The direct impact of closing Uyeasound Primary school would relate to the

jobs at the school, with a net reduction of 2.1 FTE posts, after allowing for the savings already approved and the cleaning post. The saving in staff costs is estimated at some £102,000, and would comprise one full time post and a number of part time posts.

4.2 In themselves, these job losses are important to the economy of Uyeasound,

(and Unst). The part time posts involved would be a loss to the individuals involved, although they could potentially be re-deployed or find alternative work in Baltasound, or in social care in Uyeasound.

4.3 Little of the school’s non-staff related costs are spent in the Uyeasound area. 4.5 The loss of a teacher would also be detrimental to the community, since this

is currently one of the few professional posts in Uyeasound. The current Headteacher offers support to a number of voluntary groups, for example in auditing their accounts. In a small community it can be difficult to replace the loss of professional skills, and community development can suffer as a result.

4.6 In addition to the costs involved in redeploying and re-housing the

Headteacher of the school, her family would also leave Uyeasound, magnifying the net loss to the small community.

Other Impacts 4.7 Most of the 11 children currently attending Uyeasound School have parents

with a strong connection to the area – in most cases at least one of the parents attended the school themselves. Two of the families with children currently at the school relocated to Shetland as a matter of choice, choosing to move to Unst because of the quality of life there. These families (as all of the others with children at the school) are very pleased with the quality of education their children are receiving at Uyeasound and are clear that, if the school were to close, they would re-consider their choice to stay on the island. With no family ties and either working remotely or in self employment, these families could if they wished leave Unst and even Shetland. Since one of the children attended Baltasound School when the family first moved to Unst, and was unhappy there, this seems a real possibility.

4.8 The availability of housing for young families has been raised as a major

issue by many of the people in Uyeasound we have spoken to, restricting the ability of young people to set up home in the area. A number of younger people, in their late teens or twenties, live with their parents in Uyeasound. Although keen to stay in Uyeasound they are currently unable to find housing, and closure of the school would affect their decisions on the future. Without a school in Uyeasound, they would have less reason to settle down there and raise a family. Some might move to Baltasound, where housing availability is less constrained.

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4.9 Four young couples have recently been able to find housing in Uyeasound, and another couple, with children, are looking to move into a house in the summer. All of these people would like to stay in the area, but closure of the school would be a major consideration in their future plans.

4.10 We were asked to assess the potential impacts of families leaving Uyeasound

(or Unst) should Uyeasound School close. If the 2 families mentioned in para 4.6 above were to leave, this would take 10 people away from the island, including 6 children.

4.11 Just as importantly, the closure of the school would reduce the motivation for

young people and families to seek to live in Uyeasound, while our consultations found that some of the younger people currently living in Uyeasound might consider their future differently. A young couple in Shetland often have a choice between living in the husband’s home village/island or in the wife’s. There is local concern that with no school in Uyeasound, young people marrying and starting a family would be less likely to choose to live in the area.

4.12 People in Uyeasound refer to the examples of other Unst primary schools that

have been closed. The communities of Westing, Colvadale and Burrafirth have declined, whilst the population of Haroldswick has aged.

4.13 As noted in Section 3, aquaculture is a very important industry in Uyeasound,

and the businesses there are part of one of Shetland’s principal sources of economic prosperity. Were the school to close and the community lose (in the short or longer term) young people who would move to or locate close to their childrens’ schools, the recruitment difficulties of these businesses would increase, and their expansion potential would be constrained.

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5. POTENTIAL MITIGATING ACTIONS 5.1 We were asked to consider potential mitigating actions should the school

close, such as the prospects for additional public and private sector employment in Uyeasound, and the scope for attracting new residents.

5.2 Currently, the main prospects for new economic development in Uyeasound

relate to (i) further development of facilities for visiting boats and tourists in general, and (ii) prospects for an organic spinning mill.

5.3 The Uyeasound Waterfront Trust was established in 2000 to build a

commercial pier, and this was achieved in 2009. The Trust has also promoted coastal walks in the area, as well as South Unst in general, and is working towards establishing a small marina on the north side of the pier. Visiting leisure boats can berth at the new pier, but better shelter is required to maximise visits by boats and time spent onshore by their crews.

5.4 The Unst Partnership is progressing an ambitious proposal for a community

owned spinning mill for which the preferred location is Uyeasound. A feasibility study and business plan was completed in August 2010 by the consultancy service of Development Trusts Association Scotland, and the report shows that four full time jobs could be generated within three years if the project is successful, with a turnover of £186,000 by Year 3. This would comprise £64,000 in organic yarn sales, £110,000 in other yarn sales and £12,000 in shop sales. The major customers for the organic yarn would be Shetland Organic Producers Group (SOPG) and internet sales within the UK would also be important.

5.5 A building requirement of 300m2 is identified for production, with a 150m2

shop and visitor facility increasing the total premises requirement to 450m2. A disused 162m2 hatchery shed standing on 800m2 of land is earmarked for the project (although the total land requirement, including parking, is 1,000m2).

5.6 The report considers that Uyeasound would be an appropriate location for the

project as it has not benefited from as much development as Baltasound and Haroldswick.

5.7 “A site in Uyeasound would be readily accessible for visitors soon after arrival

on the ferry, it could thus be used as a signpost facility as well as attracting visitors interested in seeing the spinning process and yarn production. It would also be advantageous for transport logistics, being close to the ferry and with a reasonable road infrastructure. With this in mind the continuation of the study will focus on the identified site in Uyeasound and a new build in the same area.”

5.8 The total project cost is estimated at £899,000, and potential funders are

given as the SRDP, Big Lottery Growing Community Assets, Community Enterprise Scotland and private trust funds. In the current climate, raising this level of funding will be challenging and it will be difficult to provide evidence of market demand other than from SOPG.

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5.9 If this project is developed, and assuming that the aquaculture businesses in the area continue to thrive, the demand for labour will tend to grow in Uyeasound even if the school closes, and mitigating action would ideally include building housing for those of working age in the community, even though there are vacant properties in Baltasound that could be improved and Baltasound will tend to become a more favoured place of residence for families with both primary and secondary education located there.

5.10 Converting the Uyeasound school building into office accommodation, or

redeveloping the site for this, would be possible, but it is very doubtful whether the level of demand likely to be generated for this over the next 5 years would justify the cost unless the Council adopts a policy of decentralising staffing to outlying communities and this benefits a small community such as Uyeasound rather than focussing on larger rural centres such as Baltasound. Bluemull Development Company has experienced very little demand for office space recently, having let out only two desks in the past three months at its well equipped and relatively affordable facility at Sellafirth, which is readily accessible by free ferry from Uyeasound. HIE-owned units at Sellafirth are being offered for sale at a very reasonable price, and Bluemull suggests that they would be attractive for micro businesses wishing to secure a property. Also, competing with Bluemull’s business facilities at Sellafirth would tend to jeopardise their viability.

5.11 Should the school close, the Council could, nevertheless, help support local

development initiatives either through donating the building to the community or selling it and investing the proceeds in community projects. This would help compensate for the loss of the facility and its economic impact.

5.12 Re-letting or selling the adjacent school house would not be compatible with

developing commercial or industrial space within the school building or on the site, however, unless the occupant were involved in the development (i.e. as owner, manager or caretaker). Also, the adjacent playpark might need to be relocated if the school site were redeveloped for a non compatible purpose (e.g. expansion by an aquaculture business).

5.13 Once the Unst Community Development Plan is finalised, it will be presented

to the Regeneration Partnership for approval to enable them to access funds for a development worker. Ways in which implementation of the Plan could benefit the Uyeasound area include tourism development (if opportunities for visitors to spend money in the area can be enhanced), business support (including faster broadband), and more social housing (specifically identified in the Plan).

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6. CONCLUSIONS 6.1 The main conclusions from this report are that:

� Savings from closing Uyeasound Primary School are likely to be £90-100,000 per annum, including additional transport costs to Baltasound but excluding one off costs relating to redeployment and re-housing;

� Uyeasound is a fragile community with an ageing population;

� The main source of employment in the Uyeasound economy is

aquaculture;

� Other important employment is provided by the public sector, including the school;

� There are no services in Uyeasound and residents must access retail,

leisure and other services in Baltasound or elsewhere in Shetland;

� The lack of services means that money earned in Uyeasound is almost all spent elsewhere;

� The lack of housing in Uyeasound inhibits development and is an obstacle

to younger people setting up home there;

� Most full time jobs are held by men, with women often having multiple part time jobs;

� The Unst economy has suffered from a major reduction in employment

over the past 10-20 years, and the further job losses through closure of Uyeasound school, together with the substantial efficiency savings at Baltasound school, will impact more seriously proportionately in one of Shetland’s most needy areas than in the islands as a whole. As shown in Section 3, income levels in Unst – and particularly in Uyeasound – are very low;

� There is a very strong voluntary commitment from those living in the

school’s catchment area across a wide range of community and social activities, and those consulted for this study emphasised the importance of the school in the continuing viability of the community;

� The direct impact locally of closing the school would be the loss of 2.6 fte

posts and c£90,000 in income from employment;

� The school’s headteacher and her family and, from our consultation, at least another two families would be likely to move away from Uyeasound or from Unst in the short term should the school close;

� With affordable housing difficult to obtain in Uyeasound, the population of

the area would tend to fall over time should the school close with less demand from families to live in the area. Future growth within Unst would

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tend to focus on Baltasound, where surplus housing that could be improved is available;

� The Uyeasound school catchment area would remain attractive for the

retired and younger adults without children (especially those employed locally), and the total future population of the area would depend on the extent of private and social house building. With Baltasound likely to be the focus of social housing development, new Uyeasound residents would tend to be those without a previous link to Unst who could afford to have a house built, which would change the nature of the community;

� The main prospect for new economic development in Uyeasound is a

spinning mill project being progressed by the Unst Partnership. The community would welcome this, but our consultations suggest that parents and others in the community who value the school would prefer public funding to continue to support the school and the employment it provides rather than a new speculative venture whose scope to employ local labour would tend to reduce should the school close;

� Should the school remain open, there would be an opportunity to

capitalise on its exceptional reputation in promoting Unst as a place for families to relocate to. Together with the marina and possibly a spinning mill with visitor facilities, the appeal of Uyeasound as a place to live should then boost the area’s population sufficiently to increase the future school roll;

� This future scenario of growth is considered consistent with the Council’s

aspirations to provide fixed links between Unst, Yell and the Shetland Mainland.

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Appendix 1 Uyeasound Primary School: catchment area

Appendix G