‘Business case needs to stack up’ for decisions on harbours projects

Improving and adding to the harbour infrastructure in Orkney waters should support substantial economic growth in the county - but the business case for the project must fully stack up for the Orkney community before any final decisions are made by the authority or project funders.

That was the clear message from OIC Chief Executive Oliver Reid today (18 April) as elected members received an update on progress with proposed harbour infrastructure projects at a meeting of the Policy and Resources committee.  

Officers within Marine Services have been working to bring forward a number of options, designed with the aim of supporting a range of operational and business uses that could support shipping, marine development, offshore wind, offshore decommissioning activities and support for current and future energy sector developments.  

Members heard that the current plans are to have two of the proposed project options - a deep water quay at Scapa and a logistics base at Hatston, taken through the planning process by the end of the year - meaning that these proposed projects would be in a position to progress quickly if planning permission is granted, a decision is made to go ahead and a suitable funding package is established

Elected members were told that work on the final business case for the proposed projects will continue. This will see a wider analysis of the environmental, social and economic impact of the proposed projects on Orkney's communities and the contribution that they could make to supporting the Council’s financial position in future years.

This business case will become a key decision-making document not only for the Councillors as they make final decisions on whether to proceed with the proposed project options or not - but will also play a vital role in presenting the case for investment to potential funders - including those involved in the offshore wind industry and Scottish and UK Governments

Speaking after the meeting Chief Executive, Oliver Reid, said: "The needs of maritime businesses – in particular those relating to offshore wind farms and energy companies - are evolving all the time. As one of the market leaders in the provision of maritime services in Scotland we need to be fleet of foot and ensure that appropriate harbour infrastructure can be developed and provided for our potential customers and stakeholders where the case is made.

"Decisions cannot be taken without first considering the much wider impacts of these projects on our communities - in short, what will the proposed projects mean - positive and negative not just for the Council, but for local people too. This all needs to be weighed up very carefully and the developing business case document will be key to that.

“There are three key things that need to happen before the projects go ahead – they need to achieve all relevant consents - including planning permission, there needs to be a suitable funding stream and economic business case in place, and there needs to be clear benefit for Orkney’s communities as well as for the Council. Elected members will ultimately make their decisions based on a robust community business case.

“The approach we are taking therefore is to continue to bring the proposed projects through the planning process, and to fully explore relevant government and business funding sources, whilst Elected Members take further time to consider the overall business case for Orkney.  That way, should Members decide to go ahead - and crucially, should investment be secured from government and industry - we'll be able to move forward at the pace required with any agreed options.”

Council Leader James Stockan, said: “Members welcomed the report which gave reassurance that we are considering all the options, bringing forward proposals that could bring significant economic benefit to Orkney.  We are making no commitments at this stage until we know there’s tangible benefit to our community and an appropriate funding package is available.”