Loch Eriboll Harbour Development An Economic and Social Impact Assessment 2013

Prepared for Durness Development Group and Durness Community Council By HISEZ CIC

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Contents

Executive Summary Section 1 Section 2 Section 3 Section 4 Background The Local Context The Proposed Development Economic, Social and Environmental Impact Conclusions and Recommendations 1 3 9 14

Section 5

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Acknowledgements This report was prepared by HISEZ CIC under the Just Enterprise programme and with additional support from The Highland Council through the Ward Discretionary Budget.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Executive Summary
E1 Durness Development Group (DDG) and Durness Community Council commissioned this assessment to appraise the social and economic impact of a proposed development for a community-owned harbour at Port Chamuill on Loch Eriboll with improved shore facilities, a floating pontoon and breakwater. Plans to include a heritage centre were also put forward but, in the absence of any formal assessment of demand, this element has been put on hold and therefore it does not feature in this study.

E2 The study involved an assessment of the six broad areas of existing and potential
economic activity including construction, aquaculture, fishing, yachting/boat tours, boat construction and other areas including other marine related businesses. It then considers the demand and potential economic impact of the proposed development against each area. With the exception of the aquaculture industry, detailed information, including current and possible future income levels, was, very limited. In the absence of detailed information the study has, where possible, looked at similar developments in other remote, rural coastal communities and drawn comparisons. E3 Costs for the whole development are not known. The landowner, Rispond Estate, has agreed to gift the site for the harbour and the materials for the construction of the breakwater. It has also agreed to provide access to the site along with a peppercorn lease for the site of the shore facility. An estimate has been provided of around 30,500 for site investigation into two breakwater site options. Provisional costs of between 1.5m - 2m have also been submitted for actual construction of the breakwater subject to site investigation, design work and cost analysis. E4 Current activity at Loch Eriboll is limited primarily due to health and safety issues. The proposed development would mitigate these issues and allow for the expansion of and, in two specific cases, the resumption of business activities. It is clear that the biggest impact if this development goes ahead will be on the aquaculture industry. It is estimated that if the harbour development was to proceed an extra 800T per 2 year cycle would be possible from the existing fish farm resulting in an additional gate value of 2.8 million every two years and the creation of an additional 3 FT positions. E5 Enhanced facilities would bring additional benefits to other industries, particularly mussel farming and tourism (specifically yachting and boat tours) in the area with the potential for generating an additional estimated 711,200 of income and creating a further 17.25FTE posts, albeit some may be seasonal and others may only be for the life of the construction phase of the project. E6 The development shows some potential to play a role in maintaining or increasing local population through job creation and improving tourism in the region.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Section 1 Background
Durness Development Group (DDG) is exploring the viability of developing Loch Eriboll, the only sea lock on Scotlands north coast and 3 miles east of Durness village. It is an under-utilised natural asset with pristine waters and significant potential for both commercial and leisure use. An Economic and Social Impact Assessment (ESA) on the project was initially carried out in 2004 for Loch Eriboll Pier Users Association, a group which has since disbanded. That first assessment focused on the development of a community owned harbour.

The intervening years have brought a number of changes and opportunities and this updated assessment stresses the need for a more rounded and multi-faceted project. This revised ESA has been commissioned to take into account: The change in emphasis to a more rounded and multi-faceted project Sustainability from both harbour revenue and shore facilities the potential for job creation and retention to halt population decline in Durness given its aging and declining population

The project is being run by DDG and Durness Community Council. If the development comes to fruition, it will be owned by DDG on behalf of the community. It is worth noting that Loch Eriboll has been on the regions radar for potential development before. In August 2000 The Highland Council published its Aquaculture Framework Plan. One of the main objectives of this framework plan was to identify infrastructure investment priorities to support the development of aquaculture and to maximise the general economic and recreational value of the loch. Thirteen years after this priority was highlighted, the proposal now being considered is a small scale harbour development, with potential to expand, at Loch Eriboll that will meet existing and future community needs and whether such a development has the potential to create jobs, positively impact key local industries and boost tourism.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

It should be noted that, to date, there has been no formal needs analysis or feasibility study the findings of which would normally then feed into an EIA. This report has been compiled without this initial research. Some of the information therefore can only be comparative (using developments in other communities as examples).

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Section 2

The Local Context

Statistical information is not available at the level of Loch Eriboll which sits in the parish of Durness, and so the socio-economic context given below relates to a number of different geographies which are the best approximation for the parish as possible1. Map 1 overleaf shows the different geographies referred to. The Durness datazone is the closest geography to the parish, though it extends slightly beyond it, and so figures for the datazone will largely be the same for the parish. 2.1 Population Past, Present and Future

Durness and Loch Eriboll sit in the North, West and Central Sutherland Ward, which is a sparsely populated area, with 1.1 people per hectare (pph) in 2001. This compares with a population density of 8.4pph in Highland, and 67.4pph in Scotland as a whole. The 2011 population of the Durness datazone was 477, representing a drop in population of almost 6% since the 2001 Census. Projections for the future from Highland Council2 suggest that from 2010 to 2035, the population for Sutherland as a whole will decline by 5%. Given that the decline in Durness has been similar to that in Sutherland as a whole in the past, it would be reasonable to assume a similar projected decline for the Durness area over the same period. These are, however, only projections, and they are based on historical patterns of population change and birth and death rates. They are not forecasts of change, based on an assessment of the impact of interventions such as those being pursued through HIEs Community Account Management etc. The trend for Sutherland as a whole is one of a declining and ageing population. In relation to age groups, the change in population has impacted differently on different groups in Durness, as illustrated in Table 1 below. There has been a slight increase in the 0-15 yrs population between 2001 and 2011 of 2.4%, although due to the small numbers involved this figure should be treated with an element of caution. There was a considerable drop (-20.9%) in population aged 16-44, and a smaller drop in those aged over 75 yrs. The school roll forecasts for Durness Primary show a forecast decline from 22 in the 2012/13 academic year, to 13 by 2026/7. While these figures may look discouraging, it is important to remember that a small change can make a big difference, as evidenced by the recent in-migration of 3 families (including several children) on the back of the Cape Wrath Challenge. However, there is also anecdotal local evidence suggesting a further15 people have moved out of the area in the past 6 months.

All the information in this section is taken from information on Highland Councils website or the Scottish Neighbourhood Statistics website 2 Highland Council Planning and Development Service Policy and Information Briefing Note No52, Population Projections for Council Areas 2010-2035

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Table 1 Population Change by Age (Datazone) Age group 0-15 16-44 45-64 65-74 75+ TOTAL 2001 89 153 147 56 61 506 2011 91 121 153 59 53 477 % change +2.4 -20.9 +4.1 +5.3 -13.1 -5.7

Compared to Scotland, the Durness datazone had a slightly higher proportion of children (19% compared to 17%), and a significantly higher proportion of people of pensionable age (26% compared to 20%), in 2011. The proportion of the population in Durness who were of working age, however, was considerably lower than for Scotland (55% as opposed to 63%). 2.2 Housing and Households

In 2011 there were 230 households in Durness datazone. Just over 16% of these were living in private rented accommodation, which is double the figure for Scotland (8%). Levels of owner occupation were not dissimilar, with 66% in Durness in this tenure compared with 63% in Scotland as a whole. The social rented sector is less prevalent in Durness, at 17%, compared to Scotland (29%). This pattern of tenure would suggest there may be more issues around fuel poverty and poorer quality housing, as these tend to be more common in the private rented sector. Price figures for house sales in 2011 indicate that the cost of buying is significantly lower in Durness (average 67,464) than in Scotland (average 75,250), and lower than it is for the North, West and Central Sutherland Ward as a whole. This disparity with the Ward could be due to a small number of sales in one year distorting the figures, however. In the NW&C Sutherland Ward in 2001, just under 5% of properties were empty, 18% were holiday homes, and the remaining 77% were occupied. Table 2 below shows how these figures compare to Scotland. The relatively high proportion of housing used as holiday homes on the one hand shows the significance of tourism to the local economy, but on the other it may have implications for local people looking for housing, or the potential to attract new people to the area. A high preponderance of holiday homes can have the effect of driving up prices and thus making housing less affordable. While the house price figures above would suggest this is not the case, accessibility to housing may still be an issue. While almost 5% of houses are vacant, it is not possible to say from available sources what condition these houses are in and how quickly and easily they could be put to use.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Table 2 Housing in NW&C Sutherland, Highland and Scotland, 2001 Homes Vacant Occupied Holiday homes 2.3 NW&C Sutherland % 4.8 76.9 18.3 Highland % 4.0 89.8 6.2 Scotland % 3.8 94.9 1.3

Economic Activity and Employment

In 2011, of those aged 16-24 in the Durness datazone, 13% were claiming Job Seekers Allowance (JSA). This compares with 6% for Scotland as a whole. Of those aged 2549, however, nobody in Durness was claiming JSA, whilst in Scotland the figure was 4%. For those aged 50yrs to pensionable age, almost 5% were claiming JSA in Durness compared to just over 3% in Scotland. Employment in the North, West and Central Sutherland Ward is very reliant on employment sectors that relate to a land-based and tourism economy, as illustrated in Table 3 below. The table shows that the main employment sector was tourism related, with almost one fifth of people working in accommodation and food service provision. This was significantly higher than for Highland as a whole, and more than double the position in Scotland. Similarly, almost 10% of people were employed in agriculture, forestry and fishing, which is more than three times the proportion in Scotland. The economic significance of the MoD presence on Cape Wrath is illustrated by the higher than Scottish average levels of employment in Public administration and defence (9% compared to 6%). Conversely, employment sectors relating to manufacturing, business and professional services were significantly underrepresented in the Ward, compared to both Highland and Scotland. Table 3 Employment by Sector (2011)3 Sector Accommodation & Food Services Agriculture, Forestry and Fishing Public admin and defence Business, admin & support services Manufacturing Professional, scientific & technical Finance and insurance NW&C S Ward % 18.8 9.6 9.0 3.0 3.1 1.4 0.3 Highland % 11.6 1.6 5.6 5.4 6.5 4.7 1.1 Scotland % 7.1 2.6 6.0 7.4 7.5 6.3 3.5

These figures illustrate the importance of the land for the local economy whether that is in relation to exploiting the natural beauty of the physical environment through tourism, or for agriculture and fishing. The economy is largely dependent on tourism
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Business Register and Employment Survey 2011

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

and any changes to the local environment could have a dramatic effect on tourism numbers and therefore the local economy.

Map 1 Durness Datazone and Community Council Map

Underpinning community aspirations for the future of Durness are real and quite justified concerns about the local economy. While in the past farming, crofting and fishing from the west coast port of Kinlochbervie have provided an economic

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

backbone for the area, increasingly local people are looking for new sources of income, most particularly from fish farming and tourism. Loch Eriboll, the long, deep and relatively sheltered fiord immediately east of Durness, has therefore taken on a growing significance in the local economy, and direct access to it is now seen as being of considerable future importance. 2.4 Loch Eriboll and Surrounding Area

Loch Eriboll is the only deepwater sea loch on the north coast of Scotland and its location and characteristics make it an attractive prospect for a wide range of activities and interests. Loch Eriboll is 15.5 kms long with a surface area at high water of 32.4 sq.km. Its average depth at low water is 26m and its maximum is 6 8m with the main basin lying in the narrows between Rubha Ruadh and Ard Neackie. The loch is fairly well flushed in its outer and middle reaches and therefore suitable for aquaculture. Towards the head of the loch, more limited water depth and circulation limits the practical scope for aquaculture to shellfish farming. The main input of freshwater to the loch is from the Hope catchment although there is also a significant input from the river Polla. A central area of the loch is designated under the Surface Waters (Shellfish) (Classification) (Scotland) Direction 2000. This designation requires SEPA to monitor water quality on account of the loch being a recognised mussel growing, and is intended to safeguard the water quality for shellfish cultivation. Loch Eriboll can be distinguished from most other sea lochs in the Highland area by its northern aspect and its alignment in a NNE/SSW direction and has, for many years, been used as a deep water anchorage by the Royal Navy. The rugged outer loch area, which is the site of the proposed development, is relatively inaccessible, and exposed to north and north-westerly winds and swell. It is also fairly open to south-west winds. Apart from the small private harbour of Rispond on the west shore, there is no road access nearby. The inner loch is less exposed and has reasonably good road access, but shelter is still somewhat limited compared with many of its more southerly counterparts. This is because the high ground on the west side lies well back from the shoreline and there are few pronounced bays or headlands. The loch lies along the major fault-line of the Moine Thrust, with different geological profiles, and therefore landscape character, between the east and west sides. This difference is most marked in the area of the inner loch. The eastern side tends to be more diverse with better pastures and higher cliffs. A key feature is the tombolo (island attached to the mainland by a narrow piece of land such as a spit or bar) of Ard Neackie, which has significance in regional terms. The pale-coloured quartzite cliffs along the coast between Rubh'a'Mhuilt and Whiten Head are distinctive and also of high scenic value. This side of the loch has been identified as a Regional Scenic Coast in the Highland Council Structure Plan.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

The western side is backed by higher hills but the summits of these are set further back from the loch than on the east side and the lower slopes are fairly uniform. There are however attractive small bays and lagoons along the shore near the head of the loch and there are fine sandy beaches close to the mouth. There is already significant salmon and mussel farming interests at Loch Eriboll which provide important employment opportunities. There is potential to increase this and in the future to farm new species, including halibut, cod, oysters and scallops. Expansion is limited by the current harbour facilities on the loch, constraining potential for growth. At the same time tourism in the Durness area is enjoying a period of growth, and there is considerable interest in developing new tourism services that offer greater financial returns per visitor than are possible simply through accommodation provision. Some of these involve water-based activities for which Loch Eriboll is an ideal location. In the past Loch Eriboll was of limited significance to the local economy. Its shores were (and still are) sparsely populated, and with the exception of passing ships seeking occasional shelter its waters were little used. This situation is now changing, and there is a growing recognition locally that the loch, along with Cape Wrath, may well represent one of the communitys major potential assets for the future. 2.5 Other Harbour Facilities in Region.

The nearest harbor/pontoon facility to Loch Eriboll is at Kinlochbervie, which is on the west coast rather than the north coast. Kinlochbervie is around 36 miles away by road to the west, and the sea route requires vessels to go round Cape Wrath. Kinlochbervie is currently considered as the last safe port of call, before heading round the coast. It takes around 2-3 hours sailing time in good weather to get round Cape Wrath. Heading east, the nearest facility is at Scrabster by Thurso, over 50 miles away by road. Facilities at Scrabster are very limited, with Wick harbour (around 70 miles by road from Loch Eriboll) offering a more extensive range of amenities for passing yachts. A facility at Loch Eriboll would therefore provide important safe harbour and facilities for passing yachts in an area which is currently devoid of an alternative. The position with regard to a heritage/visitor centre/museum is somewhat different, however, with a well-used visitor centre in Durness itself. While this is used to capacity, and unable to take any more exhibits such as the Balnakeil Viking which is currently housed outwith the area, it is only 3 miles away from the proposed site for a new heritage centre. Outwith Durness, there is a museum at Bettyhill (40 miles east of Durness and approximately 35 miles to Port Chamuill) and Kylesku (53 miles southwest).

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Section 3 The Proposed Development

The development under consideration has grown from that first mooted in 2004. What is now being explored is a major infrastructure project centred on the design and construction of a new community owned harbour and shore facility at Port Chamuill on the west shore of Loch Eriboll. Consideration had also been given to the possible inclusion of a heritage centre. This has been put on hold for the time being because more work would need to be done to scope out what facilities would be provided and to better establish evidence of demand. 3.1 Proposed Location

A number of possible sites for the development exist, but the preferred option is at Port Chamuill, approximately one kilometre north of the old Portnacon Pier (a facility too small for todays requirements and in private ownership with no public rights of use). A rough driveable track connects the shoreline with the A838 public road at this point, and the area is already used as a launch point for small fish farm boats and for storage of fish farm equipment. There is currently no harbourage on the Loch Eriboll coast that is accessible to boats at all states of the tide. The priority is therefore to create a facility with moderately deep-water access at all times. In addition there is very little in the way of proper sheltered harbourage in certain wind conditions, and this greatly hampers fish farm operations at such times. The intention is therefore to build two breakwaters so as to provide a sheltered useable harbour in all conditions. The main features of this infrastructure development are: Two breakwaters A floating pontoon mooring system which has the potential to open up new income streams from commercial and leisure craft. Improved shore facilities toilets, shower block, laundry, telephone and broadband with the added attraction of local/heritage information.

The landowner of Rispond Estate has agreed to gift the site for the harbour and the materials for the construction of the breakwater. It has also agreed to provide access to the site along with a peppercorn lease for the site of the shore facility.

Loch Eriboll Harbour Development An Economic and Social Impact Assessment

3.2 Costs To date, there are estimated costs for only parts of the development. Wallace Stone has provided indicative costs for site investigation and concept design and consents for the two breakwaters totalling 30,500 ex VAT (with a small reduction if there are any existing surveys available) and then a further 25,400 for detailed design and tendering for one breakwater only.

Emphasis should be given to the availability of free material on site for the breakwater construction. However, despite the material being free it would need to be quarried. The cost of this has been estimated at around 4 a cubic metre rising to 6 a cubic metre when constructed and with the rock armour costing around 10 a cubic metre. In comparison imported material would cost significantly more. Three options for the breakwater design have been put forward by Nine23. The volume of materials, and therefore costs, rise exponentially the further out into deeper water the breakwater is built. Option 1 for a 220m breakwater has been estimated to use 395,000 tonnes of rock at an estimated cost of between 15m and 18m. Option 2, for a 240m breakwater requires 290,000 tonnes estimated at between 12m and 14m. Option 3, a much smaller construction at 85m, would require 75,000 tonnes at an estimated cost of between 3m - 5m.

Using imported rock for these kinds of volumes would make project costs untenable. However, costs using local stone are substantially less with estimates at between 1.5m - 2m for construction of the breakwater subject to site investigation, design and a full costs analysis.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

In addition to the breakwater costs, there would be a further cost for the development of associated on-shore facility. This would include: M/F Toilets, showers and washrooms Laundry Meeting room Multi purpose space/sub dividable for exhibition space Office for harbour master Kitchen Circulation Plant/water storage

The latest estimate of costs for this aspect of the development (January 2013) is in the region of 300,000. 3.3 Anticipated Benefits of Development DDG and DCC hope that improved accessibility to Loch Eriboll at all states of the tide and the provision of a safe harbour would have potential in the following areas: Retention and creation of employment. Increased productivity for the existing aquaculture industry and development of new fishing industries. Improved accessibility to Loch Eriboll for new and existing users (both commercial and leisure based). Creation of business opportunities relating to the upkeep and servicing of leisure and work boats Development of an as yet untapped leisure market on Loch Eriboll with provision of slips (access), moorings and bunkerage Development of the tourist market through boat trips and excursions, fishing trips etc. Development of Durness as a destination for visiting yachts and small cruise ships plus all the off-shoot tours and guiding opportunities this presents. Greatly increased materials-handling capability of the area with economic savings in the transport of bulk materials such as timber extraction from local estates or importing or road grits for council supplies, all of which currently use road freight RNLI are keen to explore the trial of a lifeboat should this facility be built. The largest gap in coastal provision in the UK lies between Lochinver and Scrabster. The two figures overleaf show firstly an extract from a Highland Council document on the area4 and secondly a map produced for the initial work on the project carried out in 2004, showing the proposed location of the Port Chamuill development.

Highland Council, Loch Eriboll Fish Farming Framework Plan, 2000

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Section 4
4.1

Economic, Social and Environmental Impact

Current and Potential Economic Activity

At the moment the main activity on the Loch is related to aquaculture, with one major fish farm (salmon and trout) and a smaller mussel farm. Should the proposed development go ahead as envisaged, additional areas of economic activity could potentially open up, as shown below: Construction Yachting Tourism tours Boat construction RNLI depot Other areas not yet identified but possibly a heritage centre at a later date

Taken together, these areas can be summarised, in terms of six broad areas of potential economic impact. These are: Construction (short term during building phase) Aquaculture (fish and mussel farming) Fishing (open sea, fish landings) Yachting/Boat tours Boat construction (Rispond Marine) Other (pop-up caf during main visitor season, RNLI, related marine businesses etc.)

The rest of this section will consider the demand and potential economic impact of the proposed development against these areas of activity. It is important that they are looked at individually as the potential for growth differs across each, as does the level of estimated economic impact. It is important also to note here that every economic analysis is all about estimates. The figure overleaf outlines the potential benefits should the project go ahead.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

4.2

Potential Users of the Facilities by Industry, and Associated Economic Impact

As detailed above, there are six broad areas of economic impact, and these are now discussed in turn. 4.2.1 Construction Employment (Short Term)

The construction of the harbour will generate jobs for construction workers in the short term. A reasonable assumption is that every 100,000 of construction expenditure sustains one construction job for one year. In addition, we have assumed that whilst the construction contract is likely to be awarded to a national operator, a percentage of employment contracts will go to local labour. It would be reasonable to assume a leakage rate of 60 per cent at the local level.

4.2.2

Scale of Current Aquaculture and Potential Development

In what is widely regarded as an economically fragile area, and where population loss has been a problem for a number of decades, aquaculture is one of this areas few main development options. In generating income and employment on both a fulltime and part-time basis it is an activity which helps to sustain remote settlements and services which otherwise might be on the margin of viability. There is one major fish farm (salmon and sea trout) on the Loch owned and managed by Scottish Sea Farms. Each two year cycle at the Eriboll site is currently budgeted to

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

produce around 1,800 tonnes of fish with a gate value of around 6.5 million5. It employs 6 people and there are plans to expand this operation creating a further 3 posts. However, the growth potential of this key industry is being squeezed due to poor infrastructure at Eriboll. A purpose built harbour would therefore: Significantly improve the health and safety status of the site. Scottish Sea Farms say a safe haven for boats and staff would be the biggest benefit Create a slip way. The current lack of this facility means a steep incline down to the main loading area at low water. During a cycle of fish up to 2,500 tonnes of fish is fed to the crop which involves repeated trips up and down the steep shore. Reduce the need for dredging the channel every two years at a cost of 10,000. Create improved online business opportunities with the provision of broadband. Allow the mussel farm to resume operations. Mussel Farm

4.2.3

Loch Eriboll is an excellent loch for growing mussels once they are established, as it has high nutrient levels and good water currents. In addition, there is anecdotal evidence that it is less susceptible to naturally occurring bio-toxins in the water which effect other lochs during the summer months. These toxins can close harvesting for health reasons. During 2013 for example, all the lochs in the northwest and in Shetland which together comprise the bulk of farm production were closed for a period of over two months. This starved the processing factory in Bellshill of much of its regular supply. In mid-August, when the west coast sites in Lochs Inchard, Laxford, Glendhu, and the Shetland farms were all closed due to the presence of the DSP bio-toxin, a sample taken from Loch Eriboll showed that it was clear. Had the Eriboll sites been operating a significant loss of production and subsequent factory revenue would have been avoided. There is currently one mussel farm operating at Loch Eriboll. Loch Laxford Shellfish Ltd (LLS) acquired two mussel farms and a growing mussel crop at Loch Eriboll in 2009. The leases were operated during 2009/10 in order to harvest the growing crop. However, the difficulties of obtaining mussel seed settlement in Eriboll, and operating a mussel farm vessel in the loch without a harbour or sheltered anchorage, resulted in cessation of mussel production. Since then the leases have been used mainly for conducting trials in order to try and establish a reliable culture system for the loch. The seed supply

The farm gate value of a cultivated product in agriculture or aquaculture is the net value of the product when it leaves the farm, after marketing costs have been subtracted. Since many farms do not have significant marketing costs, it is often understood as the price of the product at which it is sold by the farm. The farm gate value is typically lower than the retail price consumers pay in a store as it does not include costs for shipping, handling, storage, marketing, and profit margins of the involved companies.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

issue has now been overcome, but the major difficulty in establishing a reliable mussel operation in Eriboll is the absence of a pier and sheltered mooring. Several other mussel farms, leased to local businesses, were forced to close because of safety issues. Although profitable, operations ceased due to the logistical difficulties of material handling between the shore and the loch. Equipment such as anchors and chains were extremely difficult and time consuming to handle without the appropriate facilities and involved risk taking beyond acceptable levels. The provision of a harbour facility would enable all of these operations to resume with more acceptable safety levels. Trading figures from 2004 for one of the local companies show that 200 meters of double back line yielded 15 tonnes of mussels at 1,000 per tonne that grossed around 45,000 per harvest. Although not currently operating due to safety concerns, this business believes that, with facilities improved, they could expand on previous operations to more than 150 tonnes which could offer up to 8 seasonal jobs, or 3 full time jobs and 2 part time jobs, and generate a farm gate value of 135,000. A second local business has stated they would resume operations immediately if the development went ahead, with an anticipated annual harvest of 50-60 tonnes with an estimated farm gate value of around 45,000 and the creation of 2 FTEs. In addition, the leases that LLS own are easily capable of producing a further 150 tonnes of mussels per year with the same approximate farm gate value of 135,000. This level of production would support a further 3 FTEs for the mussel operation itself. It would also contribute to the local economy through purchasing of services and supplies e.g. boat and machinery maintenance and repair, fuel, and most significantly, transport of production to the processing factory in Bellshill. A further four leases are owned by other businesses, one of which has operated previously but closed for the safety reasons above. If it is assumed that these four leases were put into operation, with a conservative estimate of production of 50 tonnes a year each, this would generate a further 200 tonnes a year with a farm gate value of 180,000 and create around 3FTEs. 4.2.4 Oyster Farm and Shellfish Hatchery

Oyster farming does not currently take place on Loch Eriboll due to site conditions. However a local business, Cowrie Associates, has put in a pre-planning application for a site and operational aspects required for this business would be made significantly easier with improved harbour facilities. Cowrie Associates believe that its modestly sized oyster farm could produce 30-50 tonnes per annum and create two part time jobs, possibly three. In the longer term, the business is also looking at a shellfish hatchery sited on the loch employing one person full-time.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

4.2.5 Fishing

At the moment there are five boats active in Durness. The proposed development would: Allow people to fish the loch in the winter in relative safety Provide a means to launch and haul boats at any time of the year with relative ease Provide a neutral facility with equal rights for all users Provide 24/7 access to the harbour Facilitate transfer of land catch straight from the boat to transport/merchant Facilitate loading and off-loading boats in relative ease and safety.

A local Estate felt that if the pier development was to be successful the knock on effect to the Estate would be significant. It would provide another entry point for a whole new sector of clientele and provide much better access to the sea for sea fishing (one of the activities they have carried out in the past but struggled with due to tidal conditions). 4.2.6 Tourism and Recreation

A rich cultural and natural heritage provides a range of opportunities for tourism based on local food and drink, sport and recreation, wildlife watching and historic attractions. Leisure, recreation and tourism encompass a wide range of interests and industries, many of which are complementary. Nature-based tourism is a growing area. According to The Economic Impact of Wildlife Tourism in Scotland 2010 report, there are over one million wildlife trips a year to or within Scotland by visitors who are here specifically to enjoy wildlife. This has been matched by a corresponding growth in off the beaten track or special interest holidays. In addition, there are now multimillion pound crowd pullers all based around nature tourism. For example, 22% of visitors to Mull said white-tailed eagles had influenced their decision to go to the island and the RSPB has calculated that eagles attract 5 million of tourist spend a year. In 2011 there were 43,000 recorded visitors to Smoo Cave with only 3 days in the year with no visitors recorded6. According to VisitScotland, 23,000 visitors visit Durness Visitor Centre every year7. This figures is far higher than that recorded for other visitor centres in the area, such Lochinver (13,881), Timespan in Helmsdale (12,617), Knockan Crag in Elphin (10,000), and Tain Through Time (8,841). While Loch Eriboll itself has a rich diversity of wildlife including otters, red and black throated divers, dolphins, whales and porpoises it is possibly currently overshadowed by the main visitor attractions of Smoo Cave and Cape Wrath.

6 7

Highland Council Ranger 2009 Visitor Attraction Monitor, Visit Scotland

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Although divers and yachting enthusiasts do make use of the loch from time to time, and wilderness walkers sometimes find their way out to Friesgill and Whiten Head at the mouth of the loch, and it has a broad interest for bird watchers, tourism there is a relative lack of basic tourist facilities around Loch Eriboll itself8. The remoteness of the area means that tourist flows will probably never be high but there is scope to develop facilities for these niche markets as well as scope for intercepting passing tourist traffic with facilities which can major on the particular attractions of the Loch. By significantly improving visitor facilities and the marketing of Loch Eriboll as a wildlife destination there is potential to boost Durness area visitor numbers still further, so that the region becomes a destination in its own right. The wider attractions of the area (the Geopark, heritage, burial cairns, Celtic round house, naval history, hood stones, and U-Boat surrenders etc.) mean that the area would have a significant draw for visitors. There are a number of different aspects to the tourism potential of the area which the development at Loch Eriboll opens up: Boat tours Fishing tours Yachting

4.2.6.1 Boat tours Demand for boat excursions, sightseeing trips, and whale and wildlife watching to a general tourist market has grown in the last few years. For example, over 6,000 visitors are transported to Handa Island annually for wildlife and nature trips. Other recreational / boat sightseeing businesses in Northern Scotland have reported 3,0004,000 visitors per annum. Cape Wrath Tours, a local business, was operating on Loch Eriboll providing boat and fishing trips. It was forced to close in 2003 because lack of access to a pier or harbour made boarding and disembarking problematic. Prior to closure it employed 1 x time and one half time post. The sea trips carried an estimated 3000 passengers each year which generated an annual income of 30,000. In addition, sea angling generated around 5,500 per year and charter work a further 3,000 giving a total income from all three operations of 38,500. The proposed development at Loch Eriboll would enable the business to restart these tours, creating an additional and much-needed visitor activity. This includes:
8

Potential for all year activity Potential for expansion of market by providing a minibus link to the boat tours from Durness and which could also act as a service bus linking Durness to Laid Potential for extra business for a taxi service

Highland Council, Aquaculture Framework Plan, 2000

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Safety for passengers embarking and disembarking would be greatly increased Wintering a boat would become so much easier with a suitable site onshore adjacent to the harbour.

4.2.6.2 Sea Fishing Tours In the past Rispond Estate has run sea fishing trips but these have stopped because of tidal conditions. The pier development would provide vastly improved access to the sea and this activity could be re-started. 4.2.6.3 Sailing The proposed harbour development has the potential to develop Durness as a destination for visiting yachts and small cruise ships. Figures from the Royal Yachting Association indicate that more than 400 yachts pass Loch Eriboll each summer. There is currently no safe haven between Kinlochbervie and Scrabster on Scotlands north coast, therefore the development has the potential to meet the needs of this untapped leisure market on Loch Eriboll with provision of slips (access), moorings and bunkerage. Yachts currently have to wait in Kinlochbervie or Scrabster for the right weather conditions, in order to guarantee safe passage round the coast and Cape Wrath. At present, the berthing facilities around Scotlands Northern Coastline are limited in comparison to the Clyde, West of Scotland or the Morayshire Coast and there is some evidence from other areas of modern, successful community-owned harbour and shore facilities which have a led to an increase in the numbers of visiting yachts. Yachtsmen, as with all visitors, are looking for new experiences. As a result, boats are being berthed in new places, so this drive for a new experience could be met by provision of facilities at Loch Eriboll. Such provision would entice more people to make the journey from west to north and see the development of new options for sailing routes. However, Scottish visitor sailing in the main will be driven by destinations9:
9

Sailing destination credentials Interesting coastlines, dramatic scenery Good wind possibilities and favourable tidal conditions Possibility for shelter, safe anchorage / harbour Good access to shore Shore-based facilities: water, electricity, shops, restaurants, bars, toilets, showers, chandlery, laundry, and possible visitor attractions Points of entry escape points/good communication networking links

Caithness and Sutherland Enterprise, Harbour Faculties Development Study, 2006, TRC

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Joint marketing of facilities with other areas (similar to Sail North).

Below are some examples of other harbour developments, and levels of visiting boat traffic. Lochaline This is owned by Morvern Community Development Company. It developed a 24 berth floating pontoon system with walkway at a cost of 320,000 in 2011. A year later it opened purpose-built shore facilities showers, launderette, toilets, office and Wi-Fi access at a cost of 250,000. Latest figures show a 40% increase in visiting yachts from 775 to 1,100 and with a noticeable increase in the number of chartered vessels. The improved shore facilities have meant a particular boost to local visitors. The average overnight stay is between 1 and 3 nights. Vessels are charged 2.25 per meter (the average vessel is 10 metres in length) for an overnight stay and 5 per meter for short stay (e.g. to top on electricity, use the shower etc). Users are also charged for the shower (1 for 3 minutes), coin operated hair dryers, washing machines (3 for a cycle) and tumble drier. These charges are an important contributor to the harbours annual income. An additional 640 has been raised through an honesty box. In addition, the harbour employs a seasonal marine manager, a cleaner and is currently looking for a funded position for a marketing officer. Kinlochbervie The existing pontoon development that was completed in March 2009 has been further extended in 2013 to accommodate the growing number of visiting yachts and other pleasure craft. The pontoons can now accommodate an additional 8 visitor berths. Figures from the 2013 season (late April to end August) show 80 yachts visited the harbour. They can accommodate 6 visiting boats, and have never been full. Yachts tend to sit there waiting for good weather to get round Cape Wrath to go to Orkney. Of those 80, maybe about 10-15 were going to Scrabster. There was a view that numbers may increase if there was pontoon facility at Eriboll. Lochinver In the 2013 season, there were 157 visiting yachts up to mid-September. The occasional yacht will still use the facilities during the next few months, thus the annual figure will be higher. This represents an increase on previous years, and the trend over time is clearly of an increase in traffic using the facilities. The pontoons have recently

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

been extended, and at the latter end of this year electricity was added. These developments were in response to demand from users. Some yachters use the facility simply to stock up on essentials from local shops/chandlery, whilst others stay for up to a week and spend time and money in the local area visiting other communities/attractions. In some cases, the yachts are left for considerably while the owner goes back home a spell. The experience in Lochinver illustrates the importance of local facilities (shop etc), and transport (whether bus or taxi availability). Sheildaig This is a community-owned, small scale access pontoon which opened this year at a cost of 86,000. The development improved significantly the facilities which were there previously, and were increasingly considered as unsafe for some of the users of the slipway. Early figures suggest that the estimated 2-3 yachts per day between April and September that had been hoped for have been achieved in their first year. Secondary income is regarded as important with visiting yachts using other local facilities such as the local coffee shop and hotel. The improved facilities at Sheildaig have also secured the ongoing return of the Hebridean Princess which now visits once a fortnight and pays 100 for each visit. Prior to the improvements, there was concern that the Ship would cease to visit Sheildaig due to safety concerns of the former slipway. It should be appreciated that, because of its location, a pontoon development at Loch Eriboll may struggle to see the increase in numbers experienced by similar developments on the more sheltered west coast. However, as potentially the only safe harbour between Kinlochbervie and Scrabster there is evidence, based on the experience of other areas that a pontoon and good shore facilities would open up a new market for the area and increase opportunities in the tourism sector. 4.2.7 Boat Construction

One of the business diversifications that would benefit greatly from the Pier project would be a small local boat building operation situated in the craft village in Balnakeil, Durness. The business has been unable to develop or grow for some time due to the lack of harbour facilities close to Durness. At present the business employs 2 full time staff, however should the harbour development go ahead there could be the potential to employ a further 1 to 2 full time staff and the ability to accept work from larger boats means that there would be the potential for significant growth. Lack of non-tidal access to larger boats (20 and larger) in the past has meant that the business has had to turn down significant jobs, which has seen the work go to other

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

major piers such as Stornoway and Scrabster, loosing vital income for the Durness community. 4.2.8 Other Potential Activities

The RNLI has already indicated that it would be keen to locate a service in Loch Eriboll if the proposed development went ahead, on a trial basis originally. The areas of potential economic activity expansion detailed above are based on known levels of interest and demand from existing local businesses. It is likely that if the development did go ahead, entrepreneurs locally and further afield will see other opportunities, and businesses and activities not identified above can be expected to be established. For instance, one possible business might be to operate a pop-up caf/shop near the pontoon to exploit the economic potential of increased visitor numbers from passing yachts and those coming to take part in a boat/fishing tour. 4.3 Methodology As there has been little research conducted into the demand and feasibility of such a development there are very few figurers relating to the current and potential users of the Loch facilities. It has been possible however to get figurers relating to the potential growth of the current aquaculture business. This has enabled us to look at the potential income that could be generated as well as the direct, indirect and induced employment which could be created. The multiplier indices for this industry have been taken from the Scottish Governments Type I and II Output, Income and Employment tables for 2009, the latest figures available and we are using IOC 5 which relates to the Aquaculture industry.10 The use of both Type I and Type II will allow us to estimate both indirect and induced job creation. Once accurate figures can be gathered for the other potential users then similar calculations can be done which when taken together will give an estimate of the economic impact overall. 4.3.1Aquaculture Fish farming It is clear that the biggest impact if this development goes ahead will be on the aquaculture industry. It is estimated that if the harbour development was to go ahead an extra 800T per 2 year cycle would be possible from the existing fish farm resulting in an additional gate value of 2.8 million and the creation of an additional 3

10

If there is an increase in final demand for a particular product, we can assume that there will be an increase in the output of that product, as producers react to meet the increased demand; this is the direct effect. As these producers increase their output, there will also be an increase in demand on their suppliers and so on down the supply chain; this is the indirect effect. As a result of the direct and indirect effects the level of household income throughout the economy will increase as a result of increased employment. A proportion of this increased income will be re-spent on final goods and services: this is the induced effect.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

FT positions and a further 495,000 farm gate value with the creation of 12FTE positions as a direct result of reinstatement and expansion of mussel farm operations. 4.3.2 Economic Impact of growth in the aquaculture industry on Loch Eriboll If the development were to go ahead the most immediate impact would be the retention of 6FT posts and creation of an additional 15 direct FT posts in the aquaculture industry. Using Type I Multipliers the indirect, or downstream, creation of employment would be 21 multiplied by 1.5 equating to 31.5 FTEs of which 10.5 are additional indirect FTEs. If we then calculate the induced increase in employment using Type II Multipliers this would be 21 multiplied by 1.7 equating to 35.7 FTEs which when we subtract the 31.5 FTE already estimated means an additional 4.2 FTE jobs being created as a result of induced demand. However, to fully calculate the net benefits of the indirect and induced job creation on the North West Sutherland economy as a result of the expansion of the aquaculture industry as estimated we must look at what leakages and displacements will occur due to this increased economic activity. Due to the type of jobs being created directly there is unlikely to be much displacement as there are very few similar jobs locally therefore we estimate a reduction in local indirect employment of 25%. However, due to the remoteness of Durness and the lack of substantial indigenous industry most consumer and business supplies are imported into the area, this leads to considerable leakage in the local economy and therefore we estimate that there will be a reduction in local induced employment of 50% thus the total is now: 15 direct FTE 7.8 indirect FTEs 2.1 induced FTEs.

Total additional employment created = 24.9 FTE 4.3.3 Increase in Local Household Expenditure Using the Scottish Executive information it is possible to value the additional expenditure in East Sutherland through the creation of the jobs which could potentially be generated by the potential growth in the aquaculture industry. Using Scottish Government statistics on average pay within the North, West and Central Sutherland Ward, the average wage for 2011 was 18,017 the lowest in Highland, reflecting lower incomes in rural areas11. We can deduce therefore that the 24.9 additional direct, indirect and induced FTEs could bring a further 448,623 into
11

Annual pay Median Gross () - For all employee jobs in England, Wales and Scotland, 2011, ONS

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

the local economy annually. If we take a conservative figure of 40% displacement due to the remoteness of the area and therefore the potential leakage from the local economy we still have an additional 269,174 local household expenditure as a direct result of the expansion, reinstatement and growth of the local aquaculture industry which would not happen if the development didnt go ahead.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Table 4 Economic Impact Table
Area of economic activity Current income per annum Current employment Estimated additional income per annum should the development go ahead 150,000 12(based on an estimate of 300,000) 1.4m (based on an extra 2.8m/2 years) Estimated additional employment should development go ahead

Construction of on shore facilities (short term) Aquaculture: Fish farming

N/A

N/A

1.5 FTE for a period of a year 13

3.25m (based on a 6.5m/2 year cycle) N/A N/A Unknown N/A

6FT

3 additional FT

Mussel farming Oyster /shellfish Fishing Yachting

N/A N/A Unknown N/A

495,000 farm gate value Unknown Unknown 27,500 (based on an estimated 50 yachts in the 1st year, spending on average 2 nights charging 2.25 per metre, average length 10 mtrs, plus an additional 500 for use of facilities) 2 x per annum 100 each time to berth

12 FTE 2.5 FTE Unknown 1 seasonal F/T

Visiting small cruise liner (e.g. Similar to Hebridean Princess)

N/A

N/A

Unknown

12

A reasonable assumption is that every 100,000 of construction expenditure sustains one construction job for one year. In addition, we have assumed that whilst the construction contract is likely to be awarded to a national operator, a percentage of the cost of the contract will remain local as will a percentage of the employment contracts will go to local labour. 13 It would be reasonable to assume a leakage rate of 50 per cent at the local level due to the remoteness of the area.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Boat tours Boat construction TOTAL N/A Unknown 3.25m N/A 2 8FTE Estimated 38,500 per annum Unknown 2.1m and time posts 2FT Approx. 20.25 FTE

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

4.4 Social Impact

In an area like Durness which is dependent largely on employment opportunities which result from tourism and land/sea based activity, many of the social benefits which will result from the development are as a consequence of the economic gains. The additional jobs and income which could result from the development will allows more families to remain in the area, and possibly attract others to move there. This will impact on the viability of local services in the Durness area, such as the local school and shops. The development would also enable a more diverse employment base, some of which would be year-round, thus giving an increased sense of financial security. Employment opportunities would be enhanced in terms of numbers, reduced seasonality, and increased safety. Local people would also benefit from the leisure and recreation opportunities which would be opened up as a result of an enhanced facility in the area. This might be of particular importance for local young people, giving them access to a range of leisure activities not currently safely open to them, thus increasing their satisfaction levels with living in a remote location. These opportunities would also be of relevance to the whole community. 4.5 Environmental Impact

Although not part of this report, there will also be environmental considerations of the proposed developments which will need to be taken into account. The development would change the shore and marine environment, which could impact on flood vulnerability, the fauna, flora and sea life, and pollution. These aspects have been considered in detail previously, and it is recommended that reference is made to existing reports and documents from SEPA etc. on the likely environmental impact.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Section 5 Conclusions and Recommendations

5.1 Conclusions There are a number of different areas of potential economic impact which would result from the development of a harbour and breakwater in Loch Eriboll. The main economic benefits initially would be in relation to the greater capacity for safe aquaculture developments, with increased capacity for fish farming, mussel farming, oyster farming, and a shellfish hatchery. Other economic benefits would result from the re-introduction of sea-tours and fishing tours, and also income from passing leisure craft. The proposed development would enable an existing boat construction business to expand operations. As accurate figures were made available for the existing fish farm and for the reinstatement and development of the mussel farms it was possible to estimate that were the development to go ahead 15 direct FTE, 7.8 indirect FTEs and 2.1 induced FTE jobs would be created, resulting in an additional 269,174 local household expenditure into the local economy. It has been difficult to estimate the additional likely economic impact which would result from other areas due to figures being unavailable. However an extremely conservative estimate would be around 2.1m additional income and an additional 20.25FTE jobs (some possibly seasonal and some possibly only for the life of the construction phase) new jobs created (these figures include the 15 FTE direct employment created by the growth of the aquaculture industry). Additionally, the development would increase community confidence, and help support the retention of the local population. The new jobs created might also attract new people to live in the area, thereby supporting local services such as shops and the schools in Durness and Kinlochbervie. The safety of fishing and related activities would be increased and the potential location of an RNLI post at Loch Eriboll would enhance this further. There is the potential for as-yet unidentified businesses to locate in the area on the back of the development, bringing further economic and social impacts. The need and potential users of the proposed Heritage Centre are not sufficiently scoped at this stage to assess any economic impact of this aspect of the development.

A Strengths, Weaknesses, Opportunities and Threats analysis of the proposed development is shown overleaf.

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

Table 5 SWOT Analysis of Proposed Development Weaknesses Very seasonal and short sailing market, May to September; Very few resident boats A long distance from wider resident markets; Very small local population base Relatively small number of visiting yachts and future potential will grow, but slowly; Poor public transport links Cost to realise project Lack of existing leisure market Burden of fundraising for community Lack of specialist expertise within community Reliance on grant funding Declining & Ageing population Seasonal trade, lack of open facilities during winter months Remoteness Volunteer fatigue

Strengths Land owner buy in: - site & materials- in kind value - Lease term (proposed 99year lease, peppercorn rent for shore facility) Interest and desire to see project go ahead Commitment to community ownership in the long term Possibility of RNLI involvement Proximity to Cape Wrath Sheltered Anchorage No other harbours nearby & no potential for future competition. Increase in active tourism. Strong repeat visitor numbers Unspoilt landscape, perceived wildness. Cleanliness of area Ecology & Biodiversity Remoteness Green credentials Area is designated Geopark (only area in Scotland), could create specialist tourist interest Boat builder in Durness Existing aquaculture industry Opportunities Creation of leisure market for Eriboll: - Small leisure craft - Tour boats - Sailing Club - Yachts Close proximity to theCape; Opportunity to attract a small number of smaller resident

Threats Rival existing harbours in need of funds Otters & other wildlife SEPA/ SNH Visual impacts Construction pollution Bilge Discharge- potential contamination of near pristine waters

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

boats Ensure better public access to the water ie improve berthing and slipway Opportunity to develop facilities to new markets, sightseeing, diving, birdwatching etc. Increased productivity of Fish farmIncreased uptake of Aquaculture- Shellfish Farming Requirement of internet provision for onshore facility could act as catalyst for broadband provision in Laid Bunkerage provision Chandlery provision Increased opportunities for business & employment- tours , taxi service, grocery delivery Relocation of Boat Business- increased opportunities for repairs & maintenance Increased numbers of visitors staying in Laid Establishment of Enterprise zone around shore facility Opportunities for training locals during construction phase Provide access to sea for locally owned leisure craft- need for winter storage provision Heritage projects- potential for more employment CAM areas competing for funding Lack of grant aid Potential loss of Local Development Officers

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Loch Eriboll Harbour Development An Economic and Social Impact Assessment

5.2 Recommendations Given the clear economic impact from the proposed harbour and breakwater development, particularly in aquaculture and fishing sectors, it is recommended that DDG and DCC pursue funding to take the project forward. As an in-depth economic impact assessment was not possible due to a lack of figures, DDG and DDC should consider undertaking a formal market assessment and feasibility study into the other potential activities at the site. This will then enable them to assess the full economic impact of the proposed development. In taking the development forward, DDG and DCC should work closely with a range of partners, such as Crown Estate, HIE, Highland Council, and local businesses. The two groups would also benefit from organised learning trips to other community-owned harbours to learn from their experiences. A further formal market assessment and feasibility study should be done to appraise any likely demand for the heritage centre or similar development with meeting and office facilities for DDG and a harbour office Possible sources of funding that DDG and DCC should approach to support the development are BIG Lottery Coastal Communities Fund, The Crown Estate, HIE, and Highland Council. Consideration should also be given to seeking private investment through the use of tax breaks, crowd-sourcing, and the investment of relevant private businesses with an interest in the development.

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