Campbeltown and Kintyre Final Report

Page 1

yellow book

campbeltown

and kintyre strategy

final report

november 2005



yellow book studio 1010, mile end abbey mill business centre paisley pa1 1js t 0141 562 2325 f 0141 561 2328 mail@yellowbookltd.com

argyll and bute council argyll and the islands enterprise communities scotland

campbeltown and kintyre strategy november 2005

yellow book willie miller urban design ttc international



22112005-id-01//wim

contents

campbeltown and kintyre strategy

section 1

introduction

1

section 2

conditions and prospects

3

section 3

the regeneration strategy

23

section 4

five year action plan

33

section 5

implementing the action plan

37

annex 1

place-making and urban design

41

annex 2

economic audit

52

annex 3

property market

58



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1 introduction Campbeltown and Loch

1.1

In February 2005, a consultant team led by yellow book was appointed to carry out the Campbeltown regeneration study. The consultant team includes Willie Miller Urban Design (WMUD) and Ryden. The study was commissioned by Argyll & Bute Council (ABC) on behalf of a client group that also included Argyll & the Islands Enterprise (AIE) and Communities Scotland (CS).

1.2

Following discussions with the clients, the original brief was extended to include a more wide-ranging review of the Kintyre context and a “whole town” appraisal of Campbeltown.

1.3

The revised brief called for the consultant team to deliver the following outputs: 

a comprehensive review of socio-economic issues in Campbeltown and Kintyre, and an assessment of strengths, weaknesses, opportunities and threats a detailed place competitiveness appraisal of Campbeltown, focusing on the economy, housing, urban design, traffic, image and the environment - there will be a specific focus on the town centre and waterfront development of a regeneration strategy for the town and the wider area; we have agreed provisionally that the objectives of the strategy should be to: campbeltown and kintyre strategy |


Campbeltown Harbour

- attract new investment to Campbeltown and Kintyre - create sustainable, high quality jobs - attract and retain skilled, economically active residents - attract discerning, high spending visitors  an action plan comprising: - strategic projects for Kintyre and Campbeltown - specific proposals to improve the town centre experience and improve linkages between

STRUCTURE OF THE REPORT 1.5

This report is in five sections:  

the town and the waterfront.

1.4

WORK PROGRAMME

We have carried out a four stage work programme, comprising:

a wide-ranging research programme comprising a review of documents and reports, site visits, briefings and consultations a consultation meeting – Campbeltown’s Future – which brought together representatives of the community and business, partner organisations and elected members the development of a regeneration strategy which has been the subject of extensive discussion with the clients

the preparation of a 5-year action plan, together with recommendations on delivery.

1.6

Section 2 sets out an appraisal of conditions and prospects in Campbeltown and Kintyre Section 3 sets out a regeneration strategy for the area, identifies priorities for action, and reviews experience and best practice in small town development Section 4 sets out a recommended action plan, based on 12 key interventions Section 5 contains a commentary and recommendations on implementing the action plan.

There are three annexes:   

Annex 1 sets out urban design proposals for Campbeltown, prepared by WMUD Annex 2 contains an economic audit of Campbeltown and Kintyre Annex 3 contains a review of the Campbeltown and Kintyre property market, prepared by Ryden.


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2 conditions and prospects Campbeltown and Loch

THE ECONOMY 2.1

A recent research study commissioned by the Scottish Executive examined the economic linkages between small towns in Scotland and their surrounding rural areas . The study focused on four areas, Buckie, Campbeltown, Kelso and Selkirk. The findings are of particular significance for this study.

2.2

The report examines these economic linkages by exploring the extent to which:  residents of rural areas spend income in the local town  residents of the towns spend income in the rural hinterland  town businesses source inputs (labour, goods and services) from the hinterland.

2.3

Although Campbeltown’s remote location, a long distance from major centres of population, is often cited as a weakness, the report shows that one positive effect of the town’s peripherality is that a relatively high percentage of expenditure is retained in the local area. Because the Campbeltown area has “fewer leakages and stronger multipliers” than the other locations in the survey, there is evidence of “spill-over effects whereby an injection of

Scottish Agricultural College, Arkleton Institute, University of Gloucestershire, Economic linkages between small towns and surrounding rural areas in Scotland, March 2005 campbeltown and kintyre strategy |


Argyll Arms Hotel off Main Street

expenditure into one locale has a knock-on effect on the other”. 2.4

Key findings for the Campbeltown area include: • •

Campbeltown residents make 88% of their convenience shopping purchases in the town, and residents of the surrounding area spend a similar proportion in Campbeltown (54%) or other local centres (33%) half of all comparison shopping spend by Campbeltown residents is made in the town (compared with 36% for Buckie and 25% for Selkirk), and residents of the surrounding area made a similar proportion of purchases in Campbeltown and other local centres dependence on/loyalty to Campbeltown is strongest among: - retired households - people who have lived in the area for the longest time - people living close to the town - car owners local businesses made 51% of their sales in Campbeltown, higher than for any of the other towns surveyed the businesses most likely to sell into local markets are:

The study defines Campbeltown’s hinterland as Kintyre and Knapdale Including Tarbert

2.5

- located in Campbeltown - small firms - long-established businesses - consumer services businesses 23% of goods purchased by local businesses were sourced from Campbeltown, much higher than any other town in the survey

The report concludes that the spill-over effects in all the areas surveyed were “limited in magnitude”, but greatest in Campbeltown because of its isolated location. It argues that economic growth in and around towns is more likely to stimulate growth in the hinterland than vice versa, because: • linkages are strongest within towns • growth in towns is a pre-requisite for sustainable hinterland areas • targeting development in towns limits negative environmental impacts • towns that provide income and employment for the surrounding area generate stronger linkages • consumer services businesses were most likely to have strong sales links • retailers should be encouraged to source more local products and to adopt local branding • people who work in town are most likely to do their convenience shopping – and more of their comparison shopping – locally.


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Campbeltown Loch and Harbour from Dalintober

2.6

Campbeltown and Kintyre form a relatively self-contained economic area by modern standards (certainly in relation to household income and expenditure), and the town dominates the economy of the peninsula, despite the presence of secondary centres in Tarbert and Carradale. However, the research study shows that many businesses depend primarily on the local market, and that many of these are low-margin, low-productivity enterprises. The implications of this are very significant, and they represent both threats and opportunities:

2.7

Campbeltown is still a town seeking to overcome a jobs deficit. This is a continuation of a very long term historic trend which can only be reversed through the creation and expansion of wealth-creating businesses serving non-local markets and tourists.

ECONOMIC AUDIT 2.8

the local economy is fragile, with low employment rates, low average wages and low productivity, although a small number of businesses export successfully to UK and international markets the economy is susceptible to shocks: it is difficult to replace jobs lost through redundancies and business closures, the resulting loss of household income feeds straight through into reduced spending on goods and services the corollary of this is that the local economy benefits quickly from the spill-over effects of positive economic developments such as the Vestas-Celtic investment, the new call centre operation at Kintyre Business Park, or the possible resumption of the Ballycastle ferry service.

High unemployment and low employment rates confirm that

Annex 1 of this report contains a summary of key data on the Kintyre economy. The data are useful and suggestive, but it must be remembered that: • •

2.9

many of the numbers are very small and subject to a margin of error, and some data are suppressed for reasons of confidentiality and cannot be published.

The population of Kintyre at the 2001 Census was only 10,100, down 7% since the 1991 Census. The decline was particularly severe in South Kintyre (-16%) although there was a 7% increase in North West Kintyre. Population projections point to a continuing steep decline: -11% 20012011, and -21% 2001-2021. This is the result of natural decline due to an ageing population and low levels of inmigration. campbeltown and kintyre strategy |


Car sales outlet in former distillery premises on Saddell Street

Only 57% of the population is of working age, compared with 62% in Scotland, reflecting an ageing population. The proportion of the working age population who were in employment was also well below average, especially in Campbeltown Central, where the unemployment rate is twice the GB average. Only 8% of the working age population of Campbeltown Central were self-employed; the rate was almost 19% in the rest of Kintyre.

2.13

These sectors, all of which have grown at the GB level, are well represented in Kintyre. By contrast, business and financial services are under-represented.

2.14

The 2003 ABI is incomplete because it does not pick up the manufacture of wind turbines by Vestas-Celtic, but it does reflect local specialisation in the manufacture of dairy products and whisky, albeit on the basis of small numbers.

2.11

The 2001 Census showed that there were about 4,000 people in employment or self-employment in Kintyre. We can infer from the Census data (and from sources including the Annual Business Inquiry and the Scottish Agricultural Census) that about three-quarters of these were employed, with the remainder in various forms of self employment, including agricultural occupations .

2.15

2.12

The 2003 ABI recorded 2,900 employee jobs in Kintyre, of which 1,300 were in Campbeltown Central ward. The top employment sectors were:

There is some evidence relating to economic and social exclusion. In addition to high unemployment rates, the average duration of unemployment is well above average: the most recent data show that 27% of claimants had been out of work for a year or more (Scotland 14%). Two adjoining data zones (covering the town centre, Longrow, Mill Knowe and part of Dalintober) are among the 10% most deprived in Scotland, with particularly poor rankings for health, employment and income. By contrast some rural data zones are among the most deprived in Scotland in terms of geographic access to services and telecommunications.

2.10

• • •

wholesale and retail trade health and social work public administration and defence

There has been some useful recent research on agriculture and land-based industries, including a report by Hecla Consulting for AIE and ABC, Argyll and area: survey of agricultural holdings, October 2003.


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Smoke House and Gasometer at Roading

KEY TRENDS AND DEVELOPMENTS 2.16

2.17

2.18

Campbeltown’s long term decline has been characterised by the contraction (and in some cases collapse) of traditional industries including agriculture, fishing, mining, textiles and distilling. A series of economic setbacks culminated in the closures of RAF Machrihanish and the Jaeger clothing factory, and the failure of the Ballycastle ferry service. There were concerns that these major blows to the local economy would compound Campbeltown’s decline to the point where the town was no longer a viable entity, and fears that depopulation would accelerate still faster leaving behind an increasingly elderly and dependent community. Faced with these challenges the public sector agencies embarked on an intensive programme of action in the town designed to: • • •

2.19

attract inward investment to the area stabilise important local businesses, and encourage new firm formation and enterprise.

Anecdotal evidence suggests that, while the local economy continues to be fragile, Campbeltown has begun to turn the corner. Positive developments and/or planned investments include:

• •

the Vestas-Celtic wind turbine manufacturing plant at Machrihanish opened in 2002, and is the most significant and important economic investment in Kintyre for decades; the site currently provides employment for about 200 people, with annual sales in the order of £250m to a wide range of UK and European markets Contact 4U have started call centre operations at Kintyre House Brightside Leisure has secured planning consent for a championship standard links golf course at Machrihanish, with a club house and timeshare lodges Brightside Leisure has also acquired the Royal Hotel and other key sites on Kinloch Road, and has begun to develop proposals for mixed use development in this area the £6m community project, Aqualibrium, due for completion by the end of 2005, will create a £6m swimming pool and other leisure/community facilities at Kinloch Park in September 2005 the Scottish Executive invited tenders to operate the Campbeltown-Ballycastle ferry service with a closing date of January 2006 work is well advanced on an EU-funded project to enlarge and strengthen the new quay to accommodate the increasing demands of the timber trade and VestasCeltic campbeltown and kintyre strategy |


we understand that there has been an increase in the rate of new firm formation in the past year, reflecting an increase in confidence and the improved performance of retail and consumer services businesses.

DEVELOPING KEY INDUSTRIES 2.20

As we have seen, business growth – especially in wealth creating industries – transfers straight to the bottom line in terms of increased income and spending. The key opportunities for growth appear to be in the following sectors: •

• old and new facilities at the harbour

renewable energy: building on the successful introduction and faster than anticipated growth of the Vestas-Celtic operation to capitalise on the growing market for renewable energy sources; the sector faces considerable challenges, including growing resistance to wind farms in some quarters and intense competition, but Campbeltown is well placed to serve Europe’s Atlantic fringe, especially now that the port facilities are being upgraded forest products: Kintyre is an important centre for forestry and increasing use of Campbeltown and other local ports has relieved delays and environmental impacts on the road system; however the sector makes

only a modest contribution to local employment/ income, and we will review opportunities for value added activities in Kintyre the performance of the tourism industry in Kintyre has been constrained by the area’s remote “cul-de-sac” location, but also by the generally indifferent quality of accommodation, restaurants, shopping and attractions; litter and water pollution add to the problems; despite this, the area’s outstanding natural environment, its championship golf course (and the prospect of another) and growth prospects in cultural, green and activitybased tourism are all opportunities to be exploited finally, new firm formation is a key source of economic growth in the most successful rural areas; AIE report recent successes in stimulating the business birth rate in Campbeltown and Kintyre, and creating a positive environment for entrepreneurs will also help to attract new talent to the area and stem the decline in population.


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Campbeltown Town Hall

Campbeltown Heritage Centre

ARTS AND HERITAGE 2.21

A 2003 report on the cultural infrastructure of Campbeltown reviewed key arts and heritage facilities in Campbeltown and the rest of Kintyre . A number of the facilities reviewed are key buildings in the town: •

• •

• •

2.22

Campbeltown Library & Museum (the Burnet building): will lose its principal function when the library relocates to the Community Project: there is “a clear and urgent need to determine the future of this building” Victoria Hall is a valuable community resource, but the facilities are inadequate and require an upgrade Campbeltown Heritage Centre is managed by the Kintyre Heritage Trust; the centre “lacks curatorial direction” and the building is in need of repair Campbeltown Picture House has been upgraded since the report was published Campbeltown Town Hall is in a deteriorating state and “its future as a cultural venue is in doubt”.

With the exception of the refurbished Picture House this assessment remains pertinent, and the lack of an agreed use of the Burnet building and the continuing decline of the landmark Town Hall are a cause for concern.

Mayfield Arts & Media, Campbeltown Arts & Heritage Buildings: Options Study, Report for ABC, Scottish Arts Council and Scottish Screen, June 2003 campbeltown and kintyre strategy |


THE PROPERTY MARKET 2.23

An interim report by Ryden is attached at Annex 3. Some of the key messages relating to the commercial property market are summarised below. We return to housing issues in Section 3.

2.24

The main findings of the Ryden review on business and industrial property can be summarised as follows: •

2.25 10

the structure of the local economy, and the weakness of the private sector mean that Campbeltown does not have a developer-led market the public sector (notably through Argyll and the Islands Enterprise) plays an important role as a provider of modern business premises, and rents are 25-50% below levels in central Scotland: a new call centre operation has taken space at an AIE development at Kintyre Business Park with the exception of the Vestas-Celtic project at Machrihanish there have been very few business and industrial property transactions in the past 5 years efforts to secure a replacement purchaser/tenant for the former Jaeger factory, which closed in 2001, were unsuccessful and the site has been cleared.

Argyll and Bute Council is reviewing its sites and

premises in Campbeltown. Currently, about 190 staff are accommodated in four offices – Dell Road, Old Quay Head, Witchburn Road and the Registrar’s Office – and the Council also has staff in the Town Hall, Victoria Halls, the Library (Burnett building) and the Assessor’s Office. The aspiration is to rationalise the portfolio and consolidate office staff/ services at a single location accessible to the public. We return to the issue of the future of under-used/redundant buildings in the next section. 2.26

In the retail sector, Campbeltown’s small population and catchment area mean that few national multiples have been attracted to the town other than small supermarkets (Tesco, Co-op) and variety stores (Woolworths). As we have seen, there is little leakage of convenience expenditure, and the supermarkets are reported to be trading reasonably well. About half of the comparison shopping expenditure by Kintyre residents leaks out of the region, to the Glasgow area and via internet and mail order shopping.

2.27

Our site visits have noted the important role of independent owner-occupied shops. The quality of these is variable, but the town centre does include a number of attractive and well-presented shops selling quality food and speciality goods.

2.28

Ryden’s review of the residential market notes generally

above: shops in Longrow below: local shop in Millknowe Road


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low prices and low levels of activity in the owner-occupier market, with the notable exception of the Sound of Kintyre development at Machrihanish. 2.29

Annex 3 also highlights the high proportion of local authority housing, especially in Campbeltown, and the likely implications of the proposed housing stock transfer to the Argyll Community Housing Association (ACHA). ACHA has identified the mismatch between demand and supply in the social rented sector, and its plans include early action to clear 134 units in Park Square, Broad Street and Parliament Place.

2.30

ABC’s Local Housing Strategy highlights “static or falling demand” in the public rented sector, reflected in underoccupation and high void rates. Despite a nominal surplus of units, there is a shortage of suitable homes for single persons and the elderly. The strategy notes that “Dalintober, in particular, exhibits high void rates, economic disadvantage and considerable stigmatisation”.

Campbeltown housing: above: Kilkerran Road

below: Broad Street

above: Hillside Road

below: High Askomill Road

Argyll and Bute Local Housing Strategy 2004-2009 c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 11


Figure 2-1: Campbeltown: urban character analysis CAMPBELTOWN: URBAN FORM AND CHARACTER 2.31

Despite its remote rural setting and small population, Campbeltown has an intensely urban character. The town has long suffered from a negative image and reputation, associated with its long decline and periodic crises.

2.32

Despite this, Campbeltown has many assets and positive qualities. It is a handsome town in a fine landscape setting and some notable architecture, and its busy shopping centre and working harbour give Campbeltown an air of liveliness and vitality to counterbalance the evidence of dereliction and decline.

2.33

One fact is unmistakable: Campbeltown has been shrinking for at least 100 years. The town’s business base (and especially the traditional industries) have contracted, and the population has been falling steadily. As a result, there is a lot of under-used, vacant and derelict property and tracts of derelict land, all of which contribute to an image of decline and neglect.

2.34

Figure 2-1 analyses the urban character of Campbeltown.

12


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the superb scenery of Kintyre

APPROACHES AND FIRST IMPRESSIONS 2.35

Arriving in Campbeltown by road is something of a shock. After the long drive through the superb scenery of Kintyre Campbeltown makes a tough and uncompromising first impression. Drivers arriving on the A83 have to navigate through the ragged edges of the town, including bedraggled industrial sites and bleak housing schemes, and then through a semi-derelict post-industrial area before entering the town centre proper, where the quality of the environment improves markedly.

2.36

The other principal points of entry are much better: the approach from Carradale opens up broad views of the town and the loch, and passes the attractive villas of High Askomil; people arriving from the airport approach along Witchburn Road and enter straight into the heart of the town.

THE TOWN CENTRE

2.37

The historic core of Campbeltown is generally of very high quality. The town has a collection of fine buildings, some of outstanding quality, and the townscape of the central area is intact and impressive, although it falls apart on the town centre fringes .

The centre of Campbeltown was the subject of a Stage 1 Townscape Heritage study in 2001. The proposals (costing an estimated at ÂŁ4m) are not currently being pursued. c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 13


view down Main Street to the Town Hall

2.38

Main Street/Castlehill forms an impressive principal axis, with fine views in both directions taking in the landmark Town Hall, sadly much decayed. Longrow South, a new road created at the height of Campbeltown’s prosperity is an attractive secondary shopping street. The area east of Main Street, which is largely residential, is particularly appealing, with imposing tenement buildings and fine houses clustered around a triangular open space, and views up to the Highland Parish Church.

2.39

There are a number of important community facilities in the heart of the town, including: • • • • • •

2.40

14

the Library and Museum, housed in the outstanding Burnet building in St John Street the town’s unique and historic Picture House cinema in Hall Street the Town Hall, still used for Council meetings and other functions Victoria Hall on Kinloch Street the Community Education Centre on Stewart Road, and the Heritage Centre in Big Kiln Street.

Although the town centre has many positive features and assets there is no doubt that it is under severe strain, with a number of buildings in a poor state of repair and others clearly under-used. There is clear evidence of drift from the


november 2005 | yellow book

Kilkerran Road

New Quay Street

the Picture House

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 15


town centre to edge of centre locations, for example: • •

• •

the two principal food stores are both in edge of town locations the Community Project is nearing completion at Kinloch Park, and the library will decant from the purpose-built Burnet building to this new location in late 2005 Strathclyde Police intend to vacate the landmark building at the top of Castlehill the Council is seeking to consolidate its town centre properties.

2.41

These trends create a huge challenge for Campbeltown in terms of conserving its important architectural legacy and finding useful roles for key buildings in the town. In particular, viable solutions must be found to secure the future of the Town Hall and the Burnet building, both of which are of outstanding importance.

2.42

Other key issues relate to the impact of traffic and parking, and the quality of the pedestrian environment. Main roads pass through the town and carry a significant volume of heavy goods vehicles (see below). Historically, the town has enjoyed a parking free-for-all, which may have had some merits in terms of access and drop-in shopping, but has created an unexpectedly hostile environment for pedestrians considering the small size of the town.

16

Unrestricted parking also affects the environmental quality of streets and public spaces, and has invaded potentially attractive spaces such as at Burnside Street. Kilkerran Road


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west Campbeltown Loch and Davaar Island

the harbour

THE WATERFRONT 2.43

Campbeltown has an active working waterfront, with facilities for a small fishing fleet, pontoons for yachts, cargo handling at New Quay and the (currently mothballed) ferry terminal. This is an asset that adds vitality and interest to the life of the town as well as providing some useful employment.

2.44

However, links between the town centre and the waterfront are disappointing, and the quality of most development on the landward side has been poor. Heavy vehicles bring timber and wind turbine sections to the harbour for export; some of this traffic passes through the town centre and it all approaches New Quay past Old Quay Head and along Hall Street, which is a dual carriageway.

2.45

new facilities for leisure craft

The best waterfront space in the town is beyond New Quay, at Quarry Green, which is an attractive and well-maintained green space where views open out to the entrance to the loch and Davaar Island.

c ampbeltow n and k int y r e s t r ate g y | 17


declining urban fabric on the town centre fringes

TOWN CENTRE FRINGES 2.46

If the quality of the town centre environment is generally good – though threatened – the urban fabric falls away disastrously on the fringes of the town centre, and especially in the former industrial area around Longrow, Glebe Street, Kinloch Road and Roading.

2.47

Although a number of businesses continue to operate in this area, including the Springbank Distillery, there are numerous derelict buildings and gap sites. The Transco site at the Roading may constrain redevelopment opportunities, including possible new housing development (see Exhibit 2-1).

18


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Glebe Street / Burnside Street

Exhibit 2-1: Transco site

 Development type 1: People at work, parking  Development type 2: Developments for use by the general public, including housing and hotels  Development type 3: Developments for use by vulnerable people, including children and the elderly  Development type 4: Very large and sensitive developments

The Transco site at the Roading is identified by the Health & Safety Executive (HSE) as a hazardous installation. HSE has set a consultation distance (CD) of 400 metres ; planning applications within this zone are required to be referred to HSE for advice. A map supplied by HSE shows that the area covered by the CD includes most of the Calton Hill and Mill Knowe residential areas; Longrow and Glebe Street as far

Because a three zone map has not been prepared for this site, HSE will provide advice on a case by case only10.

south of the Lorne & Lowland church; Lochend and Saddell Streets; Kinloch Road (north of Burnbank Street); and the west side of Kinloch Park.

However, in general terms, the PADHI guidance indicates that HSE will:  not advise against type 1 development anywhere in the CD  advise against type 2 development in the inner zone, but not in the middle or outer zones  advise against type 3 development in the inner and middle zones, but not in the outer zone  advise against type 4 development anywhere in the CD.

Within the CD, HSE uses a 3 zone system (inner, middle, outer), with the inner zone defining the area of highest risk, but a 3-zone map has not yet been produced for the Transco site . The acceptability of developments is assessed by a combination of the zone and the sensitivity level of the proposal. Developments fall into four categories:

Letter from HSE to Argyll & Bute District Council. 23 January 1987 This commentary based on HSE guidance notes on Planning Advice for Developments near Hazardous Installations (PADHI)

10

Letter from HSE to ABC, 9 February 2005

campbeltown and kint yre strateg y | 19


• •

THE CHALLENGES FOR CAMPBELTOWN 2.48

2.49

Based on this review the study has confirmed that Campbeltown has experienced a modest revival after a prolonged decline. However, major problems and challenges persist, and the economy of the town remains weak. The study by the Scottish Agricultural College and others confirms that Campbeltown remains strongly connected to the surrounding area. Throughout much of Kintyre there is a strong and continuing loyalty to Campbeltown as a local retail and service centre. The area’s remote location is a key factor here, but a combination of internet shopping and greater personality mobility will continue to erode the captive market.

2.50

Positive changes have been achieved in the past few years, but it would very dangerous to assume that Campbeltown is no longer at risk. In our judgement, it continues to be one of the most fragile urban places in Scotland, with a continuing jobs deficit reflected in a very long term tradition of outmigration among the young and talented.

2.51

All this points to the need for a strategy which will:

2.52

For many years Campbeltown has been wrestling to deal with deep seated and systemic difficulties relating to the three pillars of economic development: business, people and place.

2.53

There is no doubt that the root cause of Campbeltown’s long-term decline is economic. The traditional industries that were the basis of its prosperity through to the early years of the 20th century – distilling, mining, farming and fishing – have all declined dramatically. The town’s employment base collapsed, and the story of the past 80 years and more has been of efforts to replace those jobs with employment in new industries including tourism, farm diversification and the public sector. Those efforts have only been partially successful, and have depended heavily on public sector investment. The result there has been a lack of economic opportunity in Campbeltown, especially for the most talented and ambitious members of the community. Out-migration, especially at the point when young people enter higher education, has been the inevitable result.

2.54 •

20

secure and build upon the achievements of the past 35 years

among 16-24 year olds is inevitable in the modern era, and we see no point in trying to stop it. But the lack of opportunities to attract well qualified people of working age and their families is a major problem. The result is that the population of Campbeltown is declining and ageing, and the resident workforce is not highly qualified. Longterm unemployment reflects a persistent jobs deficit, and prolonged worklessness makes it hard for people to return to the labour market.

identify and exploit new economic opportunities, and identify and address continuing weaknesses, liabilities and threats.

This has had profound effects on Campbeltown’s people, and the working age population in particular. Out-migration

2.55

The appearance and character of the town is also a factor. Although information is inevitably anecdotal, many people have reported that what we have called the “intensely urban” character of the town – combined with its remote location – acts as a deterrent to potential migrants and to visitors. Our analysis shows that Campbeltown has many assets and positive qualities, but there is no doubt that it creates an uncompromising first impression, at odds with the outstanding scenic qualities of the Kintyre peninsula. This is, of course, largely the legacy of decline and underinvestment: the quality of Campbeltown’s townscape has been steadily eroded as key buildings have fallen into decay and disuse.

2.56

The inter-connected nature of this analysis is summarised in Figure 2-2, which presents Campbeltown’s cycle of decline in schematic form.


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Figure 2-2: The cycle of decline in Campbeltown

2.57

The reality is that Campbeltown has been in decline for almost a century, and its population today is only half what it was in the town’s Edwardian heyday. This means that there is no quick-fix solution to the problems identified here. We are confident that the clients recognise this, and know that stopping the rot and getting the town pointing in the right direction are only the first steps. Getting Campbeltown back on the growth track for the first time in many years will be a significant achievement in itself. Creating the conditions for sustained growth and regeneration will be a huge challenge, requiring sustained effort for a decade and more.

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 21


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3 the regeneration strategy Kinloch Road

3.1

In Section 2 we set out the case for a strategy which will:  secure and build upon the achievements of the past 35 years  identify and exploit new economic opportunities, and  identify and address continuing weaknesses, liabilities and threats. BUILDING ON ACHIEVEMENT

3.2

The most important development in the Campbeltown area in recent years has been the Vestas-Celtic wind turbine manufacturing site at Machrihanish. Securing the future success of the operation and further rounds of investment in the facility must therefore be top priorities for the regeneration strategy. After a period of high optimism, the renewable energy sector has entered a more challenging phase, with keen competition in the market place, scepticism in some quarters about the potential of wind-powered energy in particular, and growing opposition to large scale wind farms.

3.3

AIE was instrumental in developing advance office space at Kintyre Business Park, the first modern office building in Campbeltown. Both the site and the building are unfortunately undistinguished, and the aim should be to locate future developments in the town centre, where they will contribute to vitality and boost retail turnover. Nevertheless, it is an c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 23


shops on Longrow

important facility which has recently been occupied by Contact 4U Ltd. 3.4

Two major investments are nearing completion: the Community Centre in Kinloch Park will provide a valuable and high quality amenity for local residents and an attraction for visitors to Kintyre; the upgrading of the New Quay will facilitate the expansion of coastal shipping for the timber trade and CelticVestas. IDENTIFYING OPPORTUNITIES

3.5

It is a measure of growing confidence in Campbeltown that the study has identified a number of significant opportunities in the town and the wider Kintyre area.

3.6

In particular, the private sector investors, Brightside Leisure, are pursuing ambitious proposals at Machrihanish and Campbeltown Town Centre. While this interest must be considered to be subject to a significant degree of risk and uncertainty, the opportunities that have been identified are exciting and certainly justify positive engagement from the public sector partners. The key elements of the Brightside proposals are:  plans for a championship standard links golf course at Machrihanish and associated resort development

24

 upgrading of the Royal Hotel as the first stage of a mixed-use development centred on Kinloch Road, potentially including: luxury apartments, an upgraded marina, retail outlets and new office for Argyll & Bute Council 3.7

Another notable opportunity relates to the proposed resumption of the Campbeltown-Ballycastle ferry service. The partners and the tourism industry should be developing plans in readiness for that event. By common consent Kintyre did not take full advantage of the previous service, and it will be important to learn the lessons and avoid repeating those mistakes.

3.8

The Ballycastle ferry is one possible element of a changing tourism industry, and the opportunity to position Kintyre to capitalise on growing short break and specialist markets relating to outdoor activities, green tourism, archaeology, fine food and whisky.

3.9

The planned transfer of Argyll & Bute Council’s housing stock to ACHA is a potentially decisive event, which opens up the opportunity for transformational change in the townscape of Campbeltown, with the removal of tracts of surplus and unpopular housing – mostly apartments – and their replacement by a smaller number of family homes. Additional resources will be made available through Communities


november 2005 | yellow book

Scotland to complement this process. These changes should help to relieve the uncompromising character of parts of Campbeltown, but it is vitally important that the new developments are of high quality, and that the town is not allowed to drift into suburban anonymity. Recent schemes by Fyne Homes, including A’Chrannog in Bute, should help to set the standard. 3.10

 we estimate that planned and possible future developments have the potential to create 200-300 direct jobs in the next 3 years, and a further 100-200 induced jobs. 3.12

Also in the property market, proposals to consolidate Argyll & Bute Council’s fragmented property portfolio present some risks (see below) but they should be treated as an opportunity to create a high quality civic presence in the heart of the town, possibly as part of the redevelopment of Park Square.

 the enlargement of the new quay should facilitate the expansion of sea trade, but it may also lead to an increase in HGV traffic through the town centre, and to potential future conflicts with vehicles arriving for the Ballycastle ferry  consolidation of the Council’s office space will create more redundant buildings in the town: the decision to relocate the library to the new community project already puts a question mark over the future of the Burnet building.

TACKLING WEAKNESSES AND THREATS 3.11

Some of the examples outlined above create opportunities to address known threats and weaknesses directly, for example:  possible new developments, including emerging proposals for Kinloch Road and the replacement of surplus/sub-standard homes should enable Campbeltown to tackle the problem of derelict land and buildings, and to create more attractive and welcoming approaches to the town

Some new developments have a potential downside. For example:

3.13

The strategy also needs to address other challenges and constraints. These include:  the need to enhance the employability of a significant minority of the workforce, by raising skills levels and breaking the cycle of long-term unemployment

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 25


change than there have been for many years. But it is in the nature of a remote and fragile community like this, that such opportunities are characterised by a high level of risk and uncertainty.

 the need to inject enterprise and vitality into a local economy which remains dangerously dependent on the public sector, and on low-skill, low-wage jobs  improving the town’s retail, food, drink and accommodation offer to improve the quality of the visitor experience

3.15

We have been impressed by the mature understanding of the scale of the challenges facing Campbeltown shown by the community and the partner organisations. People recognise that a process of decline spanning many decades cannot be reversed overnight. Long-term economic and demographic decline has diminished the capacity of the community, and the consequences of a remote location cannot be wished away.

3.16

All of this argues against over-ambitious visions for the future, and for a pragmatic and realistic approach that sets tough but realisable goals. We recommend that the community should set a 15-year vision on the following lines:

 reducing the impact of cars and parking on the town centre, to create a more safe, comfortable and attractive pedestrian environment  securing a permanent solution to sewage pollution in Campbeltown Loch; aspirations to improve and enlarge the marina or to develop a green tourism profile will be on hold until this problem has been tackled  development at the west end of the town is constrained by the presence of the Transco LPG site.

A VISION OF THE FUTURE 3.14

26

This study comes at a vital time for Campbeltown. Our research has confirmed that the economy of the town remains weak, and that a further steep decline in population is forecast by 2021. At the same time, there are more opportunities for positive

Campbeltown in 2020 has broken the long-term cycle of decline and is once again a viable, sustainable community. Population has stabilised at the 2010 level, and new economic opportunities – including jobs for skilled workers – have drawn new residents to the town. Private sector employment is growing, based largely on the expanding renewable energy sector and the success of

Kintyre as a centre for outdoor activities and green tourism. Campbeltown’s restaurants and bars are a showcase for Kintyre seafood and farm produce, and have become an attraction in their own right. New residential neighbourhoods and waterfront developments have given the town a lively and welcoming appearance, and have played a key role in attracting new residents to the town.


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STRATEGIC OBJECTIVES 3.19 3.17

In order to work towards this vision of a viable, attractive and sustainable community we have framed five medium-term (5-7 year) objectives:

 to attract new private sector investment in businesses and property development in Kintyre  to create quality jobs which will raise the town’s income base

3.20

 to transform the urban environment and enhance the quality of life  to attract and retain economically active residents, and

3.21

The literature confirms that the fortunes of rural centres have varied widely. As a general rule, small towns close to major centres of population – especially in England – have enjoyed a period of success and popularity. Many have developed into commuter towns, but this is often accompanied by an increase in local employment, especially in personal and consumer services. By contrast, small towns in remote areas have typically found it much harder to create a new economy to replace traditional rural industries and market town functions.

 low crime rates, no congestion and other quality of life advantages  relatively low cost land, property and services  local grant funding and support packages for investors 3.22

But these advantages are offset by barriers and constraints, including:

However, the research highlights some notable success stories in towns that have been revitalised and “re-invented” by a combination of entrepreneurship, good governance and active citizenship.

 the limited organisational and entrepreneurial capacity of local firms

Millard has identified potential sources of competitive advantage in rural areas, such as:

 business and consumer markets lack critical mass to sustain growth

 a low income base and limited purchasing power

 to attract a growing number of high spending visitors.

LEARNING FROM BEST PRACTICE 3.18

In framing this strategy and developing the action plan we have drawn on the growing literature relating to small town and rural regeneration, as well as our own experience.

 low labour costs, a stable and adaptable workforce and (in some cases) under-utilised skilled labour

 the quality of infrastructure (transport, ICT, utilities) does not match urban areas

 distinctive cultural and community characteristics that can provide the basis for niche products and services

 the range and quality of public services is limited

 a high quality natural and built environment

J Millard, ‘Rural areas in the digital economy’, in D Schmeid (ed), Winning and Losing: the changing geography of Europe’s rural areas. 2005

3.23

 the institutional capacity of the public and community sectors is limited. This analysis is certainly relevant for Campbeltown, although it campbeltown and kintyre strategy | 27


is notable the town has not been able to capitalise effectively on some of its (actual or potential) advantages. 3.24

 developing local circuits of exchange for resources and products  using information and communications technology to overcome barriers of time and distance, and to improve access to services  empowering local communities through capacity building.

The Scottish Executive’s vision for rural Scotland reflects this analysis by focusing on the four themes of economy, quality of life, access to services and (natural and cultural) heritage. Economic development is identified as a top priority, and should be based on: 3.26  sustainable employment in green jobs, renewable energy and land-based sectors  modern marketing of natural products and tourism  targeted business support, broadband and ICT advice  skills development and support for research and development.

3.25

A review of approaches to economic development in peripheral areas throughout Europe identified six recurring themes:  adding value to local primary products, especially by creating a local identity  commercialising local cultural heritage such as language or traditions  commercialising the natural environment to attract tourists and achieve marketing advantage

28

3.27

Scottish Enterprise, Annual Rural Report, 2004 J Bryden and G Munro, ‘New approaches to economic development in peripheral rural regions’, Scottish Geographical Journal, Vol 116, 2000

3.28

suggests that this process will be hard to stop, although access to education may help to stem the flow. 3.29

 capitalises on the aspiration for rural lifestyles

Our approach reflects a number of these themes, and we have also drawn on experience relating to specific issues, sectors and activities. Population retention and migration is a recurring theme of the policy debate. In the UK and across Europe there has been a long-term movement of population from urban to rural areas. This is typically associated with accessible rural areas and the phenomenon of the “suburbanised countryside”, but population decline has been the norm in many (but by no means all) remote places. Some parts of the Highlands and Islands have achieved significant population growth in recent years. The literature confirms that migration from rural to urban areas is typical of certain life stages, notably when young people embark on further and higher education, or when young childless adults enter the labour market . The evidence

D Schmeid, ‘Winning and losing in Europe’s rural area’s’, in D Schmeid (ed), Winning and Losing: the changing geography of Europe’s rural areas. 2005

However, some places have succeeded in countering depopulation by attracting working age residents, often couples with young families. Here the formula for success appears to be a place offer that:

 has a dynamic local economy and a cohort of growing businesses  has the ICT infrastructure that enables entrepreneurs to create a residential/working ‘idyll’, underpinned by  active encouragement by the public sector for businesses and residents to move to previously declining areas. 3.30

The key point is that, if out-migration by young people is inevitable in places like Campbeltown, a strategy is required to replace lost talent with well qualified, high achieving in-migrants. These new residents are likely to make a disproportionate contribution to the local economy. Incomers also create demand for better ICT services.


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3.31

3.32

3.33

Shucksmith’s research for the Joseph Rowntree Foundation shows the link between in-migration and business startup rates . In-migrants are more likely to be qualified professionals and/or small business owners, and they may bring much-needed financial, human and social capital to the area. Incomers may be especially aware of the commercial opportunities presented by local crafts, products and traditions. The research literature has also highlighted the importance of social capital and entrepreneurship in rural regeneration. A 2004 report on restructuring in marginal rural areas in Europe notes that the contribution of social capital (human, cultural, symbolic and linguistic resources) helps explain why some places outperform others that are in otherwise similar circumstances. Earlier research from the US Rensselaerville Institute states that “the single most critical ingredient in successful ventures is almost invariably a person…[with] the ability to take risks, accept responsibility, remain focused… that person is the spark of the endeavour”.

be receptive to the values and aspirations of the community, and local groups and organisations need to cooperate, exchange knowledge, learn from each other and form stable partnerships . 3.34

3.35

There is also a growing literature on the role of rural towns in the regeneration process. A recent report for the National Assembly of Wales, reviews some of the critical success factors in dynamic smaller towns . It concludes that the key success factors are:  the quality of the labour supply  the physical quality of the town and the rural area area

UK and European research confirms the importance of commercial and social entrepreneurs, as well as the importance of good governance: public sector bodies need to

M Shucksmith, Exclusive countryside? Social inclusion and regeneration in rural areas, Joseph Rowntree Foundation, 2000 D Schmeid, op cit Meistad, Restructuring in marginal rural areas: the role of social capital in economic development, 2004

Bryden and Munro also highlight the importance of entrepreneurs. Their actions may be “self-interested and/or collective or social…[they] will seek to mould…relationships to their economic interests and, in particular, the gaining of necessary resources, the gaining of new markets, and the reduction of risk and uncertainty”. They can counter the tendency towards parochialism by functioning beyond a place as well as within it, by using their regional, national and international connection.

 the availability of land for housing and development

G Farrell and S Thirion, ‘Social capital and rural development: from win-lose to win-wine with the LEADER initiative’, in D Schmeid, op cit National Assembly for Wales, Dynamic smaller towns: identification of critical success factors. Report by the Uinvoersity of the West of England and Roger Tym & Partners, 2002

(although employment change does not necessarily require new development)  an entrepreneurial business culture linked to inmigration. 3.36

Based on these criteria, the causes of Campbeltown’s decline are easily identified:  the town has a low-skill, low-wage labour force  although the town has a fine landscape setting and architecture, the quality of the built environment has been degraded  historically, the town has a tradition of entrepreneurship, but this has been undermined by depopulation and a talent drain.

3.37

The UWE report highlights the difficulty of closing the gap between successful and struggling small towns: success tends to breed success, and poorer households may find themselves trapped in failing places.

3.38

We have also reviewed the literature relating to specific issues/ sectors. Rural tourism strategies can help to generate jobs and income derived from visitor expenditure, but it can also help to attract investors and immigrants. The potential benefits of tourism10 include:

10 D Hall, ‘Sustainable rural tourism and rural change’, in D Schmeid, op cit. campbeltown and kintyre strategy | 29


 additional income for the farming, craft and service industries  the development of added value food and other products  new uses for redundant buildings  re-evaluating and nurturing culture and heritage  opportunities for new firm formation  supporting economic, social and environmental sustainability. 3.39

3.41

However the performance of the tourism sector in rural areas has been very variable:  the failure rate among micro-tourism businesses, reflecting bad decisions, poor planning and a lack of expertise  the small scale and dispersed nature of the industry limit the employment effects  there may be a low return on investment, and  business owners, farmers and others may lack key tourism skills.

Butler and Hall analyse typical activities designed to develop and market a rural area brand. The four recurring themes are: 3.42  developing a critical mass of visitor attractions and facilities  hosting events and festivals  developing tourism strategies and marketing campaigns  developing leisure and cultural services.

3.40

30

Hall highlights the growing importance of food in rural tourism strategies:  it can stimulate the development of niche products and targeted marketing initiatives  it drives up quality throughout the food chain  food and drink can account for up to 40% of visitor spending in Scotland  it strengthens the image and identity of the area.

Another key theme of the research literature is the potential of ICT to transform the prospects of the rural economy. Millard has identified a number of model ICT strategies for rural development, including:  using ICT to improve the efficiency and profitability of land-based and other traditional industries  exploiting new work modes enabled by ICT, including teleworking and virtual organisations  delivery of public services in rural areas, such as on-line payments, distance learning and access to information, and  creating ICT-enabled businesses such as contact centres and back-office operations, as well as digital media and other enterprises.

3.43

A recent report by the Improvement and Development Agency (I&DEA) highlights the role of local authorities in facilitating rural economic development. Based on a review of best practice in beacon councils in England, the report identified four key factors:  accountability: local authorities have a special role because they are directly accountable to the community, but they need to embed community participation in the decision making process  local knowledge and sensitivity: rural areas face longterm structural problems, but local authorities – and their partners – need to understand specific, microscale conditions and tailor their interventions and use of resources accordingly  pragmatic partnership: local authorities have a pivotal role to play in bringing together local partnerships and providing strategic direction  providing added value: the success of local authorities and others will be reflected in a more efficient and costeffective regeneration process: mobilising resources, using them effectively and achieving bigger outputs and impacts.


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BEST PRACTICE: CONCLUSIONS 3.44

3.45

The literature review provides an extensive account of rural and small town regeneration strategies and projects. It tells us a great deal about partners’ strategic intent and about the activities they are undertaking. However, the evidence on performance is less comprehensive and often anecdotal. We know that some rural places are performing better than other comparable places, but the evidence linking this to the effects of public sector interventions is fragmentary. Nevertheless, a wide-ranging review of recent activity suggests that there are four key themes that recur in most rural/small town strategies:  population: retaining young and economically active residents and attracting immigrants and entrepreneurs  tourism: developing a distinctive local brand to underpin the development of high value products and services  ICT: capitalising on the opportunities created by the new technologies, and  social capital and networks: building community capacity and developing economic linkages.

GUIDING PRINCIPLES FOR THE ACTION PLAN 3.46

Our approach to developing the action plan has been shaped by three key themes:  developing a deep understanding of the driving forces and structural changes that are shaping the economies of remote rural areas  applying good practice lessons from the UK and Europe  addressing the specific opportunities and threats in Campbeltown and Kintyre.

3.48

AILEF’s objectives and priorities are summarised in Table 3-1: Table 3-1: AILEF Strategy

Objective Growing business

Global connections

Skills 3.47

We have also framed the action plan so that it is consistent with the strategy of the Argyll and the Islands local economic forum (AIELEF)11, and its vision of: “…an economy in which vibrant, locally-run businesses thrive alongside enterprises which have chosen to settle in the area. Business growth and continuing innovation will be essential in providing employment and prosperity….” “…economic progress must be complemented by recognition of the key roles of culture, community, and natural heritage…” “Achieving this will…bring to an end the unnecessary outward migration of the area’s people in search of opportunity, and encourage sustainable and economically active inward migration”.

11 AILEF, A Strategy for Argyll and the Islands, 2005

Communities

Environment

3.49

Priorities Entrepreneurial dynamism and creativity e-business Commercialisation Key sectors Digital connectivity Involvement in global markets Globally attractive location Living and working in A&I Improved labour market Best start for young people Narrowing unemployment gap Demand for in-work training Community assets, services, culture Community strengths, leadership, confidence Enhancing environment and culture Realising economic and social benefits Protecting the environment

Our approach is designed to create the conditions for sustained growth and development by reversing the cycle of decline in Campbeltown (Figure 3-1). We have described the systemic failures which have led to economic decline, depopulation and the degradation of the urban environment. This diagnosis calls for a joined-up response, to: c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 31


 grow the business base in Campbeltown and Kintyre

3.50

 enhance the skills and employability of the workforce, and

 the strategy requires an integrated approach to business, people and place, but economic decline is the root cause of Campbeltown’s malaise: we therefore take the view that economic growth is the essential precondition for sustainable regeneration in Campbeltown  a growing economy will increase the town’s income base, and feed additional expenditure into shops, restaurants and local services  …it will restore investor confidence, and help to attract and retain economically active residents  new investment will help to improve the quality of the urban environment and make Campbeltown a more attractive place for residents and visitors  a more prosperous and attractive town will help to reduce dependency, promote enterprise and raise the community’s aspirations and expectations.

 to make Campbeltown an attractive and competitive place.

Figure 3-1: Reversing the cycle of decline

3.51

32

We want a strategy and action plan that addresses the specific challenges of Campbeltown and Kintyre. This has led us to adopt a number of guiding principles:

There is a lot to be done, and achieving the objectives will require a sustained and focused partnership effort. Financial resources are finite, and the capacity of the community and the partner organisations is limited, so it is vital that resources are used wisely.

3.52

We have therefore developed an action plan based firmly on identified priorities for action. The corollary of this is that the partners should not waste time and money on non-essential activities and “wish list” projects. For example, we do not consider parking and/or traffic management measures to be a high priority in Campbeltown, and they form only a small part of our proposals.

3.53

Similarly, we consider some conflicts between activities to be an essential part of the urban condition, and we do not advocate trying to address all of them. For example, HGV traffic to the new quay will have an impact on the town centre and waterfront at certain times. However, with sensible traffic management and signposting, the impact can be kept to acceptable levels; an active port increases the vitality of the town; and, in any event, segregating port traffic is impracticable and unaffordable.


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4 five year action plan 4.1

We have developed a recommended action plan for the

4.3

Figure 4-1: Action plan summary

Figure 4-2: Action plan interventions

Key companies

1.2

Machrihanish golf resort

1.3

Ballycastle ferry initiative

1.4

Kintyre tourism initiative

2.0

Place making

2.1

Town centre masterplan

2.2

Public realm

2.3

Council offices

2.4

Town centre events and animation

3.0

Tackling exclusion

3.1

Training and recruitment initiatives

3.2

Social enterprise

3.3

Transforming the housing stock

The action plan will be implemented via a range of interventions, including:  account management  attracting investment  tourism initiatives

Theme/measure

Key companies

1.2

Golf resort

1.3

Ferry initiative

1.4

Tourism initiative

2.1

Town centre

2.2

Public realm

2.3

Council offices

2.4

Events

3.1

Training/recruitment

3.2

Social enterprise

3.3

Housing stock

4.6

• • • • •

THEME 1: WEALTH CREATION 4.4

Measure 1.1 Key companies: an intensive account management service for Celtic-Vestas, Contact 4 and other key private sector employers, designed to secure future investment in their Kintyre operations. The aim is to provide a positive operating environment which will consolidate firms’ commitment to Kintyre without distorting the market. Where appropriate, support will be linked to the area-wide action themes of the AILEF. Lead role: Argyll and the Islands Enterprise Expenditure: Funded from existing programme budgets

1.1

4.5

Employability initiatives

1.1

Ref

Physical regeneration

Wealth creation

Tourism initiatives

1.0

Attracting investment

4.2

Theme/measure

Figure 4-2 summarises the action plan by intervention type.

Account management

Ref

employment in Kintyre by about 400-500 jobs (+10%) in 3-5 years.

 physical regeneration, and  employability initiatives.

period 2005-2011. The plan is based on three themes and comprises a total 11 key measures, which are summarised in Figure 4-1.

Measure 1.2 Machrihanish golf resort: this is the furthest advanced of the prospective private sector investments highlighted in section 3, and the project has secured planning consent. The proposed new golf course and resort will capitalise of the international reputation of Machrihanish among the golfing community, by creating an outstanding facility for UK and overseas visitors. The project will support one of the priority themes of VisitScotland’s strategy, and will take advantage of the facilities of Machrihanish airport to create multi-centred golf holidays based in Campbeltown.

We propose a series of measures designed to increase total c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 33


Lead role: Argyll and the Islands Enterprise/VisitScotland Expenditure: Exploratory work funded from existing programme budgets, with possible future grant support for capital expenditure 4.7

Measure 1.3 Ballycastle ferry initiative: although resumption of the ferry service is not yet assured, early action is required to prepare for the proposed re-launch of the service in 2006. Hotels, traders, the ferry operator, VisitScotland, ABC and AIE should work together to create an action plan designed to ensure that the benefits of the service for Campbeltown and Kintyre are maximised. Elements of the plan will include short-break packages, marketing, events and promotion, and direct investment in Campbeltown. Lead role: Argyll and the Islands Enterprise/VisitScotland and tourism trade Expenditure: Development of package, marketing and promotion: £50,000. Possible grant support for hotel and catering trade improvements. Environmental and urban design interventions: see Theme 2 Place Making

4.8

34

Measure 1.4 Kintyre tourism initiative: we propose the development of a package of measures designed to promote Kintyre as an outstanding destination for activity holidays

and green tourism; action is required to enhance the quality of aspects of the product (accommodation, restaurants, retail and leisure facilities), and to package and promote features including local seafood and farm produce, whisky, culture, archaeology, wildlife and walks.

 the waterfront from Kinloch Road to Quarry Green  Main Street and the heart of the town  Longrow Lead role: Argyll & Bute Council/Argyll and the Islands Enterprise/Communities Scotland Expenditure: Budget for development of masterplan: £75,000. Implementation will require a combination of investment in the public realm and intervention in the property market, the latter from within existing AIE budgets.

Lead role: Argyll and the Islands Enterprise/VisitScotland Expenditure: Consultancy fees for developing package and business plan: £30,000. Indicative development/promotion costs for elements of the package: £200,000. 4.11 THEME 2: PLACE MAKING 4.9

4.10

We propose a series of urban design and property market interventions designed to upgrade the quality and attractiveness of the town centre and waterfront. Our brief does not extend to the development of a detailed masterplan which is therefore a recommended early action, but we have indicated key locations and guiding principles. Measure 2.1 Town centre masterplan: the partners should commission an urban design strategy/masterplan for the town centre and waterfront. The masterplan should factor in, and influence the form of, planned private sector investment at Kinloch Road. The strategy should focus on three key locations:

Measure 2.2 Public realm: subject to the recommendations of the completed master plan we anticipate a phased programme of townscape, parking and other improvements, to be carried out over a 5-year period. Anticipated priorities for action include:  Kinloch Park and Quarry Green  the sequence of small urban spaces, including Burnside Square  the esplanade at the head of the loch and the old quay  upgrade the Main Street/Castlehill axis, with key interventions at Old Quay Head, the Town Hall and the top of Castlehill


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Lead role: Argyll & Bute Council/Argyll and the Islands Enterprise Expenditure: Costs of the programme to be determined: indicative budget £2m over 5 years

4.13

4.12

Measure 2.3 Council offices: proposals to consolidate the Council’s office requirements and create a new local headquarters buildings are supported, and should be progressed speedily. There is an opportunity to secure a site at Longrow/Park Square as part of the proposed Brightside development. However, we also stress the importance of finding a productive after use for key buildings that are redundant and underused. Top priority should be given to securing the future of:  the Town Hall  the Burnet Building, and  the police station Lead role: Argyll & Bute Council Expenditure: Costs of new Council offices not included in this package; key buildings feasibility study: £25,000 – future capital costs of building restorations and upgrades to be determined.

Options for consideration include: Town Hall: restore and upgrade to create marriage suite and high quality function rooms; Burnet building: consider transfer of heritage centre collections to create a quality museum and art gallery; possible relocation of tourist information centre; police station: conversion to housing.

Measure 2.4 Town centre events and animation: we propose the development of a year round programme of events, trader initiatives and festivities in Campbeltown, complemented by a pro-active campaign to raise service standards, street cleaning and facelifts for derelict sites and buildings. The programme should be linked to the key themes of the tourism strategy, the resumption of ferry services, the arrival of cruise ships and other milestones. We recommend the appointment of a dedicated project manager (see Section 5).

long-term unemployment (LTU) in particular, and to halve the LTU gap compared with the Scottish average. 4.16

Lead role: Argyll & Bute Council Expenditure: Indicative operating budget: £50,000 a year for 3 years. Staff costs: see Section 5.

4.14

A more detailed description of the proposed place-making interventions is contained in Annex 3 which also includes a series of illustrations prepared by WMUD.

THEME 3: TACKLING EXCLUSION 4.15

This theme focuses on the continuing challenges of joblessness and poor quality housing, but also recognises that the prospects for change in Campbeltown are better than for many years. These measures are designed to target

Measure 3.1 Training and recruitment initiatives: we propose the partnership between AIE, Jobcentre Plus and investors to develop specific targeted campaigns to link jobless local residents to opportunities in planned developments including the new call centre, the proposed golf resort and other projects. This approach to linking opportunity and need (LOAN) will comprise work preparation, training and job guarantees. Lead role: Jobcentre Plus/AIE Expenditure: Working within existing budget parameters

4.17

Measure 3.2 Social enterprise: the Campbeltown’s Future workshop identified community support for social enterprise initiatives. We recognise that non-profit community businesses have a valuable role to play, but care must be taken to ensure that they do not cause dependency or displace private sector activity. With this in view, we propose a round of consultations with community groups to identify 1-2 potential projects that will provide useful skills and work experience. c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 35


WHAT WILL IT COST? Lead role: Communities Scotland Expenditure: Feasibility study: £10,000. Possible start-up support for community businesses: £25,000.

4.18

Measure 3.3 Transforming the housing stock: the proposed housing stock transfer from ABC to ACHA creates an unprecedented opportunity to address long-standing problems in the social housing sector, and to replace substandard and redundant units. For the purposes of the regeneration strategy we recommend that the partners should seek to influence key aspects of this process – and planned investment by Fyne Homes - giving priority to:  town centre and infill developments  adaptation and re-use of redundant and derelict buildings  quality of architecture and design and fit with the plain, robust forms and muted palette of the town’s traditional buildings. Lead role: ABC/Communities Scotland in partnership with ACHA, Fyne Homes and the private sector Expenditure: No additional expenditure.

36

4.19

4.20

Table 4-3 presents a summary of the estimated additional costs of the regeneration programme. This excludes the costs of interventions using existing mainstream sources, and activities which are already budgeted for by the partners. We recommend that the partners should carry out an audit of current plans and budgets, to identify opportunities for restructuring, economies and added value. Communities Scotland confirm that a significant proportion of planned housing expenditure in Argyll & Bute will be targeted on Campbeltown, and AIE advise that their expenditure on theme 1 could be in the order of £3m over 5 years.

Figure 4-3 Estimated additional expenditure, years 1-5 Revenue (£) 1.1

Key companies

1.2

Golf resort

1.3

Ferry initiative

1.4

Tourism

2.1

Town centre

2.2

Public realm

2.3

Council offices

2.4

Events

3.1

Training jobs

3.2

Social enterprise

3.3

Housing TOTAL

4.21

On this basis we estimate that the additional costs of the regeneration action plan will be in the order of £2.5 million, including an estimated £2m capital expenditure on public realm projects. The table indicates measures where there is a likelihood of additional downstream expenditure. The costs of appointing a project manager (see Section 5) will be additional.

4.22

A full project appraisal will be required, but we recommend that the partners should adopt an aspirational target to create 500 net additional jobs in Kintyre by 2011.

Capital (£)

Possible future spend Grant support Grant support

50,000 200,000

Grant support

75,000

Gap funding 2,000,000

25,000

Building alterations

150,000

Ongoing revenue support

35,000

Ongoing revenue support

535,000

2,000,000


november 2005 | yellow book

5 implementing the plan 5.1

The action plan will be delivered by the public sector partners, who will take lead responsibility for individual measures as appropriate (see Section 4). A nominal allocation of responsibilities is shown in Figure 5-1.

Figure 5-1: Lead roles JC+

VS

CS

AIE

ABC

• •

1.1

Key companies

1.2

Golf resort

1.3

Ferry initiative

1.4

Tourism

2.1

Town centre

2.2

Public realm

2.3

Council offices

2.5

TCM/events

3.1

Training/recruit

3.2

Social enterprise

3.3

Housing stock

5.3

● ●

● ● ● ●

5.4

Key: ABC – Argyll & Bute Council; AIE – Argyll & the Islands Enterprise; CS – Communities Scotland; VS – Visit Scotland; JC+ - Jobcentre Plus.

5.2

We recommend that the partners should agree in principle to support the strategy set out in this report by the end of 2005. We recommend that the partners should agree a budget (of around £150,000) for a programme of early action, as follows:

5.5

accelerate lobbying for early resumption of the Ballycastle ferry service, and start pre-planning of the ferry initiative (£15,000) commission Kintyre tourism strategy and business plan (£30,000) commission town centre urban design strategy/ master plan (£75,000) commission key buildings feasibility study (£25,000)

In parallel with the early action programme, the partners should prepare a detailed operating plan and budget, agree the project management arrangements, and formally launch the action plan in April 2006. STEERING GROUP Throughout this study we have argued for a “whole place” approach to the regeneration of Campbeltown and Kintyre. A concerted, joined-up effort is required to respond to the challenge of turning the town around, based on an effective partnership between the public sector partners, business and the community.

The role of the steering group should be to: • • • • • • • 5.6

We propose a fixed term 5-year work programme, subject to an interim review after 3 years. The aim is to make a decisive breakthrough in that time frame, and to reverse the cycle of decline. On completion of the action plan, any ongoing projects and programmes should be reviewed and (if it is decided to continue with them) mainstreamed.

5.7

We recommend that the steering group should comprise senior representatives of Argyll & Bute Council (officer plus elected member), Argyll & the Islands Enterprise, Communities Scotland, Jobcentre Plus and Argyll Community Housing Association. We also recommend that up to three senior business figures and community leaders should be invited to join.

5.8

The work of the steering group should be positioned in the

We recommend, therefore, that a steering group should be formed to drive forward the implementation of the strategy.

Explore linkages with possible new application for Townscape Heritage Initiative funding.

champion the strategy and secure partner commitments and funding project management arrangements agree an operating plan and budget set performance targets monitor progress on delivery and performance commission an interim review after 2-3 years, and commission a post hoc evaluation on completion.

campbeltown and kintyre strategy | 37


context of the community planning process in Kintyre, and to the regeneration outcome agreement. These key linkages should inform the selection of steering group members.

• • • • •

PROJECT MANAGER 5.9

Based on our experience elsewhere and the research literature, we recommend that the partners should appoint a project manager to lead the implementation of the action plan.

5.13

5.11

We have discussed this recommendation at length with the clients. Our understanding is that there is a consensus in favour of a project manager, subject to some important conditions.

• • •

We envisage a dual role for the project manager who will act as:

with an option to extend to five years subject to satisfactory performance and the outcome of the interim review. The appointee could be directly recruited, or the post could be offered as a secondment opportunity. 5.16

In the town centre manager role, he or she will have direct managerial responsibility for: •

5.10

ensuring that the partners meet their commitments to deliver the programme, on time and on budget monitoring and reporting on performance and outcomes project managing multi-partner projects coordinating work programmes networking and communications.

developing and implementing a year-round events programme, including special events promoting service, hospitality and marketing initiatives supporting and facilitating trader initiatives working with the Council, traders and property owners to maintain a clean and attractively presented town.

Although the post inevitably has some administrative elements, it is essential that the project manager should add value to the initiative by making things happen more speedily and effectively than would otherwise be the case. He or she must not become a bureaucratic gatekeeper. CONCLUSION

5.17

This report has set out a strategy for the regeneration of Campbeltown and Kintyre, based on: •

• • •

5.12

the executive officer of the steering group, and the town centre manager with direct responsibility for measure 2.5 (events and animation).

5.14

In the former role, he or she will be responsible to the steering group for: 5.15

38

This should be a new post, which will require additional funding, not included in the programme budget outlined in section 4. Based on an annual salary in the order of £30-, on-costs and office expenses we estimate that the total cost of the post will be in the order of £45,000 per annum. The post should be advertised for a fixed term of 3 years,

• •

an honest and robust appraisal of the condition of Campbeltown and the wider area, and of the prospects for the future a carefully balanced strategy, an attractive, challenging but realistic vision for the future, and five key objectives learning lessons from experience and best practice and establishing guiding principles for action a concise, no-frills action plan based on identified priorities for action


november 2005 | yellow book

• •

a modest and realistic programme budget, and clear recommendations for managing and implementing the plan through a multi-partner steering group and a dedicated project manager.

5.18

Campbeltown still faces many severe challenges, but this is a time of optimism and opportunity. There is no room for complacency: many of the emerging opportunities are still subject to a degree of risk and uncertainty, and there will almost certainly be disappointments along the way.

5.19

Nevertheless, Campbeltown’s prospects are brighter than they have been for some years. It is vital that the partners seize the opportunity created by (among others) the Celtic-Vestas investment; the housing stock transfer; the completion of the community project; port improvements; and the planned resumption of the Ballycastle ferry.

5.20

Our aim has been to develop a realistic, relevant and deliverable action plan that will make a positive difference. We recommend these proposals to the partners, and encourage them to commit to the strategy and agree the early action plan.

yellow book WMUD Ryden August 2005 campbeltown and kintyre strategy | 39


40


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1

annex

place-making and urban design ANNEX 1: PLACE-MAKING AND URBAN DESIGN 1.

Section 4 of the final report describes our proposals for place-making projects in Campbeltown, especially in the town centre and waterfront area. This annex, prepared by WMUD, develops these themes in more detail and contains a set of illustrative drawings and images.

2.

Figure 1 summarises the key points of the place-making strategy, and includes some projects/themes not detailed in the action plan, but which should be treated as aspirations for the medium to long-term. In some cases these may be addressed as part of the planned investment in the town’s housing stock.

4.

3.

Key features of the strategy include:  improving the amenity of the principal approaches to the town and key arrival points  clearance and replacement of redundant/poor quality housing  restoring the integrity and vitality of the distinctive townscape of Dalintober  creating a vibrant and distinctive waterfront, with an improved marina and upgraded Kinloch Park  reviving Longrow as a key street and approach and as the preferred location for new Council offices

which carries heavy lorries and will also be the arrival point for ferry traffic when the Ballycastle service resumes  New Quay/Quarry Green, where the working port and an important open space meet: proposals for Quarry Green are set out below and in Figure 8.

 interventions to improve the heart of the town by enhancing the public realm, finding productive new uses for key buildings and developing key gap sites, and  implementing a strategy for improving Campbeltown’s green spaces. Figures 2 and 3 focus on the waterfront strategy. They focus on four key elements:

5.

 reclaiming Burnside Square as a public open space; this will require alternative parking provision, possibly in Argyll Street  restoring and improving the setting of the Town Hall and other landmark buildings in the town centre  progressive upgrading of the streetscape in the Main Street/Castlehill axis, including a quality urban space at the top of Castlehill  creation of a new community space next to the primary school and the learning centre (see also Figure 7).

 the area around Kinloch Park, where WMUD set out suggested guiding principles for residential development on Kinloch Road, and for the proposed Council offices as well as for upgrading the park to complement the new swimming pool; we also set out proposals for reviving the backlands between Kinloch Road and Longrow by making the area more accessible and permeable  the marina and working waterfront, where WMUD highlight the importance of creating a hub of activity, retaining and strengthening the character of the area, and upgrading the drab buildings on the old pier 6.  Quay Head is a key point in the life of the town, and WMUD sketch out proposals to enhance this important space and the extension into Hall Street

The town centre strategy is set out in Figure 4. The key proposals include:

Figure 5 summarises the key features of an open space strategy, which distinguishes between:  waterfront spaces c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 41


library complex will draw Kinloch Park back into the life of the town. There is sufficient space to absorb parking and complementary facilities on the perimeter of the park, but there is clearly a case for significant investment in facilities and landscaping to provide pitches, play environments, paths, avenues of trees and planting.  The regeneration of Kinloch Park as a focus for active recreation should be complemented by a more innovative approach to the treatment of Quarry Green that reflects its more natural spatial and landscape strengths. The rugged water’s edge, the open expanse of the loch and the rising hillsides beyond should be the cue for its future treatment. Instead of municipal mown grass and bedding, a more sensitive, environmentally sensitive and naturalistic landscape treatment could be introduced. WMUD recommend that the entrance to the park next to the ferry terminal could be a more conventional environment with facilities and play space, but that this would be succeeded by a transition into a more naturalistic landscape

 hard urban spaces  soft urban spaces  public parks. 7.

Strategies for each type of space are described in more detail in Figure 6. Figure 7 contains an illustrative treatment of a proposed new community space at the junction of St John’s Street and Stewart Road, which is an important meeting place for children, parents and adult learners. The proposals include:  closing this section of the street to traffic  creating a new square where the two streets meet  upgrading the playground of St Keiran’s School, and  improving the existing green space.

8.

WMUD have developed detailed guidance for two important – but contrasting – green spaces, Kinloch Park and Quarry Green:  Kinloch Park should be seen as Campbeltown’s principal formal public park. It is a generous space, created on land reclaimed in the 19th century, but until recently it has been a dull park, lacking in significant facilities or amenities. The development of the striking new pool and

42

9.

The Quarry Green proposals reflect a significant strand in contemporary European park design, but would be ground

breaking in the west of Scotland. They would create a sustainable, low maintenance facility with high educational and conservation value, and a distinctive new attraction for local people and visitors. Figure 8a contains images from best practice exemplars to illustrate these themes, as well as some of the possibilities for Kinloch Park (Fig 8b).


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Fig 1 Place-making strategy

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 43


Fig 2 Waterfront strategy

44


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Fig 3 Waterfront and park

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 45


Fig 4 Town centre strategy

46


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Fig 5 Open space strategy

campbeltown and kintyre strateg y | 47


Fig 6 Open space typologies

48


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Fig 7 New community space

campbeltown and kintyre strategy | 49


Fig 8a Quarry Green exemplars

50


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Fig 8b Kinloch Park exemplars

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 51


2

annex

economic audit WARD BOUNDARIES

4 Figure 2-1: Distribution of Kintyre population. 2001

1

The Kintyre peninsula (shown in Figure 1-1) includes 4 Census wards:

Population distribution

South Kintyre 2,530, 25% Campbeltown Central 2,516, 25%

 Campbeltown Central  North and West Kintyre (includes the Isle of Gigha)  East and Central Kintyre, and  South Kintyre.

North and West Kintyre 2,376, 24%

Figure 2-3 shows that the Kintyre peninsula experienced a 7% drop in population between from 1991 and 2001. South Kintyre was the worst affected with a 16% reduction; East and Central Kintyre and Campbeltown Central declined by 9% and 6% respectively, but North and West Kintyre grew by 4%. Figure 2-3: Population change, 1991-2001, (%).

East Central Kintyre 2,666, 26%

Scotland

1% -1%

Argyll & Bute Kintyre peninsula

Figure 1-1: Kintyre Ward Map

-7%

Source: Census, 2001

South Kintyre

-16%

North and West Kintyre

3

Figure 2-2 shows that 57% of the population of the Kintyre peninsula (57%) was of working age, well below the Scottish and GB averages.

East Central Kintyre

-9%

Campbeltown Central -20%

Figure 2-2: Working-age population as proportion of total, 2001 (%)

4%

-6% -15%

-10%

-5%

0%

.

ECONOMIC ACTIVITY

5

Table 3-1 below shows economic activity data for Kintyre sourced from the 2001 Census.

63% 62% 61%

POPULATION

60% 59%

Table 3-1: Economic activity, 2001

58%

2

In 2001 the population of the Kintyre peninsula was 10,088. Figure 2-1 shows the distribution of population by ward.

57%

62%

56% 55% 54%

62%

60% 57% 56%

53% 52%

52

Campbeltown Central

Kintyre Peninsula

Argyll and Bute

scotland

GB

All working-age Economically active In employment Employees Self employed Unemployed

C’town Central (%) 1,401 76% 67% 59% 8% 13%

Kintyre (%) 5,739 77% 70% 54% 16% 9%

Argyll & Bute (%)

Great Britain (%)

78% 73% 60% 13% 7%

76% 72% 63% 9% 6%

5%


november 2005 | yellow book

6

In 2001 4,419 residents of the Kintyre peninsula were economically active (77% of the working age population). Although the economic activity rate is similar to Argyll and Bute’s (78%) and GB (76%) as a whole, there are differences within the category and peninsula, namely: • Campbeltown Central has a higher than average level of unemployment – 13% compared with 7% in ABC and 6% in GB • Campbeltown has a lower than average proportion of residents in employment – 67% compared to 73% for ABC and 72% for GB • the Kintyre peninsula has a higher than average level of self-employment (Figure 3-1)

EMPLOYEE JOBS 7

8

13%

South Kintyre 50 workplaces, 11%

East Central Kintyre, 97 workplaces, 21%

Figure 4-1 shows that almost half of the employee jobs in Kintyre are in Campbeltown - the other wards have a higher proportion of agricultural employment that is not included in these figures.

Campbeltown Central, 16 workplaces, 36%

Source: Annual Business Inquiry, 2003

North and West Kintyre, 21%, 615 jobs

South Kintyre, 11%, 315 jobs

Campbeltown Central, 46%, 1,331 jobs

East Central Kintyre, 22%, 645 jobs

10

11

Self employed

70% 8%

North and West Kintyre, 145 workplaces, 32%

Distribution of employee jobs across Kintyre Wards

80%

60%

In 2003 there were 2,906 employee jobs on the Kintyre peninsula. This figure does not include the self-employed or those working in agricultural activities.

Figure 4-1: Distribution of employee jobs, Kintyre 2003

Figure 3-1: Self–employment & employment, (%), 2001

Employees

Figure 4-2: Distribution of workplaces, Kintyre 2003 (%)

9%

Generally speaking the Kintyre peninsula has an above average share of micro-businesses, even though agricultural businesses are not included in this workplace analysis. The Kintyre peninsula also has an above average level of employment in micro-sized firms, and a very low proportion of employment in large workplaces .

16%

INDUSTRY STRUCTURE

50% Source: Annual Business Inquiry, 2003

40% 30%

59%

54%

60%

63%

20% 10%

9

Figure 4-2 shows the distribution of workplaces across the Kintyre peninsula. This does not take account of agricultural holdings.

12

0% Campbeltown Central

Kintyre peninsula

Argyll and Bute

Great Britain

Unfortunately due to disclosure rules details (actual numbers and percentages) of industry structure cannot be presented in this report. Generally speaking the data shows that public and consumer services such as wholesale and retail trade; health Due to confidentiality rules we are unable to provide more detailed information on employment by workplace size

. c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 53


and social work; and public administration account for more than half of employee jobs in Campbeltown Central. 13

Growth-share analyses for the Campbeltown Central ward and the Kintyre peninsula shows that Campbeltown is:  under-represented in some GB growth sectors: education; real estate and business activities; financial intermediation and construction and other community, social and personal services  under-represented in some declining sectors: agriculture, hunting & forestry; electricity, gas and water supply; and manufacturing  over-represented in some GB growth sectors: hotels and restaurants; health and social work; wholesale and retail; public administration, defence and social security  over-represented in some GB declining sectors: mining and quarrying; and fishing.

14

54

15

It should be noted that the growth-share analysis excludes employment on farms. The June 2004 Scottish Agriculture Census indicates that there are approximately 200 people working in farm holdings.

16

The top 15 employment sectors in Campbeltown, as defined by 3-digit SIC codes, account for 1,017 employee jobs (76%) of Campbeltown Central’s employment compared to only 42% in Scotland.

17

This detailed data on industrial activities shows the highest levels of local specialisation are in the manufacturing of dairy products and beverages; however these activities account for a relatively small number of employee jobs.

18

Figure 5-1 shows employment in knowledge intensive

Growth/decline in employment is measured between 1998 to 2003. Share is calculated by comparing the proportion of local jobs in an industry to the Great Britain average for the industry.

industries – defined as those industries in which 25% or more of the workforce is qualified to degree level. Figure 5-1: Employment in knowledge intensive industries, (%), 2003 60% Knowledge intensive public sector employment

Knowledge intensive private sector employment

50% 12% 40%

10%

21%

8%

23%

30%

20%

The Kintyre peninsula as a whole is:  under-represented in some GB growth sectors: real estate and business activities; financial intermediation and construction and other community, social and

personal services  under-represented in some GB declining sectors: agriculture, hunting and forestry; and manufacturing  over-represented in some GB growth sectors: education; hotels and restaurants; health and social work; wholesale and retail; public administration, defence and social security; transport, storage and communication  over-represented in some GB declining sectors: mining and quarrying; fishing and electricity, gas and water supply.

36%

35%

39% 29%

10%

26%

0% Campbeltown Central

19

Kintyre peninsula

Argyll & Bute

Scotland

Great Britain

Figure 5-1 shows that Campbeltown has a below average level of employment in knowledge intensive industries (46%) compared to Scotland (50%) and Great Britain (49%). As well as having a lower overall share of knowledge intensive employment in Campbeltown, the composition is also far more skewed towards public sector employment than the Scottish and British average. At only 10%, private sector knowledge employment in Campbeltown is less than half both Scotland and British averages. However comparisons with the peninsula and Argyll and Bute as a whole are more favourable.


november 2005 | yellow book

EARNINGS 20

SCHOOL PERFORMANCE

Figure 7-1: Claimant count rate, Feb 2004-Feb 2005

Earnings data for Campbeltown are not available. Figure 61 below shows that the earnings of workers in the Kintyre Peninsula were lower than in Scotland and GB in both 2002 and 2003.

7%

23

6% 5% 4%

Figure 6-1: Gross weekly earnings of full-time workers, 2002-3 3%

£500 2002

£450

2003 2%

Figure 8-1: Destination of school leavers, 2004

£400 £350

Campbeltown Central Scotland

0% Feb 2004

£300 £250

£150

100%

1%

£200

£381

£390

£381

£427

£437

£465

Kintyre peninsula Great Britain

May 2004

Aug 2004

Argyll & Bute

90%

Nov 2004

Feb 2005

£476

£100 £50

Figure 7-2 shows that people in Campbeltown and the Kintyre peninsula tend to be unemployed for longer periods: 24.7% and 27.3% respectively had been claiming for 12 months or more compared to a Scottish average of 13.9%.

£0 Scotland

Figure 7-2: Duration of claim

Great Britain

60%

Claiming for over 12 months

40%

CLAIMANT COUNT

36%

42%

40%

10%

Claiming for over 6 months

Employment

25%

50% 14% 14%

20%

45%

Full-time further education

80%

30%

Argyll & Bute

Full-time higher education

70%

22

£295

Kintyre Peninsula

Figure 8.1 shows that 28% of school leavers from Campbeltown Grammar in 2004 progressed into higher education, close to the Scottish average but below Argyll & Bute; progression into FE (14%) was in line with Argyll & Bute, but well below Scotland. The percentage of leavers going straight into employment was exceptionally high (42% against a Scottish average of 25%).

0%

35%

34%

28%

Campbeltown Grammar School

Argyll & Bute

21%

29%

Scotland

30%

21

In Feb 2005 the Kintyre Peninsula had 242 claimants of Job Seekers Allowance, 81 of which were in Campbeltown Central. Figure 7-1 shows that Campbeltown has an unemployment rate almost double the Argyll and Bute and Scottish averages. The co-efficient for Kintyre Peninsula is higher than 5% and so these figures

24

25% 20% 35%

15% 10%

should be treated with caution.

5%

0%

39%

25%

33%

30%

27% 14%

Campbeltown Central

29%

20%

Kintyre peninsula

Argyll & Bute

Great Britain

14%

Figure 8-2 shows that staying on rate is significantly higher in Campbeltown Grammar School than in Argyll & Bute and Scotland. Figure 8-3 shows that S4 exam attainment is on a par with the Scottish average, but slightly below the average for Argyll & Bute. Figure 8-4 shows that S5 attainment has been erratic, but the Grammar School outperformed Scotland and Argyll & Bute in 2004.

Scotland

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 55


Figure 8-2: Students staying on at school post-16 , (%), (2001/2-2003/4)

Figure 8-4: S5 gaining 3+awards at Higher (level 6+), (%), 2001/2-2003/4

Table 9-1: SIMD ranking of data zones, Scotland (2004).

35%

90% 01/02

80%

02/03

03/04

01/02

02/03

03/04

Data zone

30%

70%

25%

60% 20%

50% 40%

79%

78%

83%

74%

74%

74%

30%

30%

15%

65%

64%

26%

64% 10%

23%

26%

26%

23%

23%

19%

22%

20% 5%

10% 0%

0%

Campbeltown Grammar School

Argyll & Bute

Scotland

Figure 8-3: S4 pupils gaining five or more awards at Standard Grade General level (or equivalent) or above, (%), 2001/2-2003/4 90%

01/02

02/03

03/04

80% 70% 60% 50% 40%

76%

80%

78%

85%

82%

82%

77%

76%

76%

30% 20% 10% 0%

Campbeltown Grammar School

Argyll & Bute

Scotland

In order to present a more accurate picture of attainment by an entire cohort, attainment in S5 and S6 is reported as a percentage of the relevant S4 roll. For example, attainment in S5 in 2004 is calculated as a percentage of the September S4 roll in 2002. S6 56 attainment is calculated from the September S4 roll in 2001.

Campbeltown Grammar School

Argyll & Bute

Scotland

DEPRIVATION 25

The Scottish Index of Deprivation (SIMD) 2004 ranks socioeconomic conditions in 6,505 data zones throughout Scotland. Rank 1 is the most deprived and 6,505 the least deprived. Table 9-1 below records the SIMD ranking of data zones in Kintyre.

Rank of 6,505

Wards

S01000711

3,317

South

S01000712

4,076

South, Campbeltown Central

S01000713

2,269

South

S01000714

2,678

South

S01000715

1,851

Campbeltown Central

S01000716

644

Campbeltown Central, East & C

S01000717

597

Campbeltown Central, East & C

S01000718

1,767

Campbeltown Central

S01000719

3,925

East & Central

S01000720

2,622

East & Central

S01000721

2,363

East & Central, North & West

S01000725

2,465

North & West

S01000738

3,905

North & West

S01000739

3,931

North & West

26

There are 14 data zones in Kintyre, some of which span ward boundaries. Data zones 716 and 717, both in Campbeltown, are easily the most deprived in Kintyre and among the 10% most deprived in Scotland (Figures 9-1 and 9-2).


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Figure 9-1: Data zone 717: ranked 597 of 6,505 in Scotland, 2001

Figure 9-2: Data zone 716: ranked 644 of 6,505 in Scotland, 2001

campbeltown and kint yre strateg y | 57


3

annex

property market INTRODUCTION 1 This paper reviews the property market in Campbeltown. It examines market trends and conditions in the residential, business and retail sectors. 2

3

4

The defining economic characteristic of Kintyre is its remoteness from any major centre of population. This means that Campbeltown’s property markets are to some extent self-contained, and have a captive – but thinlypopulated - market. The Campbeltown economy is assessed elsewhere in this report (Annex 2). For the property market, it is important to note the relative importance of agriculture and fishing, public administration and health, defence and the hospitality industry. Generally, these sectors occupy property, but may not stimulate a developer-led market.

transport connections are important. However, any additional market potential available through incremental improvements to transport infrastructure may be comparatively small alongside locally-driven regeneration and growth.

7

Economic activity in Argyll & Bute is above the Scottish average and unemployment is lower. However, the Campbeltown TTWA has comparatively high unemployment in relation to other adjoining areas. Argyll & Bute’s economic output and earnings are lower than the Scottish average, and seasonality of employment deriving from the tourism industry is an issue. For a remote property market such as Campbeltown’s,

58

9

The housing stock in Kintyre substantially exceeds the number of households, at 4730 compared with 3755. Vacant properties account for much of this, particularly in Campbeltown (8.6% vacancies compared with the Argyll & Bute average of 5.2%). However, clearance is underway in areas of low demand for public sector housing, such as Milknowe/ Dalintober. Vacancies and comparatively low asking prices in the private sector housing suggest some fragility in the owner-occupier market as well.

10

54% of Kintyre’s housing stock is owner-occupied (Argyll & Bute 65%). Completion rates for new-build private sector housing are low (41 units 1997 – 2003). Regeneration at Dalintober, Campbeltown, will provide 75 new mixed tenure housing units. Two sites in Campbeltown identified in the Local Plan can accommodate 56 and 23 units respectively, of which 25% affordable housing units will be sought.

11

The proposed local authority housing stock transfer brings

RESIDENTIAL PROPERTY 6 Campbeltown lies at the southern end of the Kintyre Housing Market Area and is the largest town in this sub-market. The area population is 8348, of which two-thirds (5500) are resident in Campbeltown. This is a comparatively selfcontained housing market.

8 5

population overall, with falling numbers of young people and substantial rises in the numbers of the elderly. Unlike other parts of Argyll and Bute, Campbeltown has comparatively little in-migration to offset forecast population losses.

Campbeltown’s population profile is older than Kintyre’s as a whole, which in turn is older than Argyll and Bute and Scotland. Kintyre’s population is forecast to decline by 11% between 2001 and 2011, and by 21% by 2021. However, the number of households is predicted to fall more slowly, by an estimated 5% to 2011, from 3755 to 3580. Smaller households may affect the types of housing appropriate to meet market needs. However, this does not necessarily mean renewed demand for flats as market preferences may be for a less densely-populated form of living. Campbeltown is faced with a particularly acute version of the Scottish demographic challenge – a declining Argyll & Bute Housing Market Strategy 2004-2009

Some flats priced at £20,000 and below, with terraced housing priced at £35,000 - £50,000


november 2005 | yellow book

the prospect of associated investment in Campbeltown , both in direct regeneration activity and indirect economic benefits. The current programme envisages project planning in 2006 followed by demolitions in 2007 and 2008, so the effects of the housing stock transfer would be felt in Campbeltown in the medium to longer term. 12

13

The major new-build housing development locally is at Sound-of Kintyre, Machrihanish. This comprises refurbished ex-RAF properties and a second phase new-build phase of 22 detached and semi-detached 3-5 bedroom homes. Prices for the detached homes in the new-build phase are reported as starting at £185,00. In total, the development will comprise 137 new and refurbished residential properties. Reports suggest that around 60% of sales are to local occupiers, with the remainder being purchased as holiday homes or investments.

Apart from Sound of Kintyre, Campbeltown is one of the few locations in Scotland where house prices are reported to have fallen. In August 2004, average house prices in Campbeltown had declined by 8% since 2000, at a time when Scotland was experiencing average year-on-year increases of 20%.

14

In the social housing sector, Fyne Homes Housing Association is providing four family homes and four cottage flats on the site of the former lemonade factory on Ralston Road.

BUSINESS AND INDUSTRY 15 Campbeltown’s business and industrial sectors are significantly reliant upon local market activity. However, more than the other sectors, the business and industrial property market is also affected substantially by decisions taken beyond the town: decisions to invest or disinvest in local enterprises, infrastructure, transport and public services. 16

The table identifies business premises currently on the market in Campbeltown. These are formally marketed premises and others may also be available informally through local professional agents.

Address

Size

Terms

Comment

Kintyre House, Kintyre Business Park

1000 sq.m.

£86 per sq.m. 5-year FRI lease.

High quality modern building with parking and expansion potential

Unit 7 Tarbert Road, Snipefield Industrial Estate, Drumore

250 sq.m.

£27 per sq.m. Under offer

Industrial/ business unit

17

Both properties are being offered by Argyll and the Islands Enterprise, reflecting the importance of the public sector as a provider of business premises locally. The rents sought are between 25-50% lower than those sought for similar premises in Central Scotland. A call centre operation has taken up the new-build Kintyre House.

18

A March 2005 valuation for Argyll and the Islands Enterprise by Ryden recorded a rent of £75 per sq.m. for a modern office building at Snipefield Industrial Estate. Industrial premises valuations at the same location record rents in the range £21-36 per sq.m. These confirm the comments on rent differentials made in paragraph 3.2 above. Employment land values, meanwhile, are around £50,000 per hectare; this can be regarded as a base level for development land in a local area, reflecting costs of supply rather than competing market demand.

19

The table overleaf identifies recent transactions for business and industrial premises in the Campbeltown area. These examples illustrate the paucity of business and industrial property transactions locally. Excluding the major investment by Vestas, described below, only two small transactions are recorded in Campbeltown. Again, this review may not take account of informal local market activity.

Current plans for central Campbeltown are understood to include around 85 low-cost starter homes on cleared sites to the north of McCallum Street campbeltown and kintyre strateg y | 59


Address 119 Longrow, Campbeltown RAF Machrihanish

Size Terms 914 sq.m. £65,000 price 8.76 ha. £75,000 pa. ground lease

Date Nov 01 Nov 01

RAF Machrihanish

9290 sq.m. £9.54 m.

Nov 01

21 Glebe Street, 470 sq.m. £25,000 Campbeltown (2 properties) 20

Mar 03

Details Warehouse/ storage unit. Highlands & Islands Enterprise 50year ground lease from MOD. HIE arranged the construction of facility for sublease to Vestas. Office sold prior to auction.

As indicated, Campbeltown is a small market which benefits or loses disproportionately from investment decisions made outside the town. Three specific examples – one new investment, one dis-investment and one re-organisation are described below: • In 2002, Vestas-Celtic Wind Technology Ltd opened a wind turbine manufacturing plant on the site of the former RAF Machrihanish base. The HIE-led land acquisition, construction and lease to Vestas is recorded in the table above. In 2003, Vestas was awarded £410,000 by Argyll and the Islands Enterprise

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to assist a new £1.4 million development, which enabled the firm to expand its product range and increase production capacity. The company employs around 200 people. • The former Jaeger factory in Campbeltown closed in 2001. The building was owned by Highlands and Islands Enterprise and leased to Coates plc until 2010, but following an unsuccessful attempt to secure a replacement tenant the company surrendered its lease in 2003. Marketing of the property failed to secure a replacement purchaser or tenant and led to a decision to demolish the building. No long term use has been identified for the site. • Argyll & Bute Council’s Campbeltown Property Options Group is reviewing the authority’s operational premises in the town. The driving forces behind this are the poor condition of existing premises and the efficiencies which could be achieved from a single new building. A total of 187 staff is accommodated across four offices – Dell Road, Old Quay Head, Witchburn Road, Registrar’s Office - and four additional buildings – the Town Hall, Victoria Halls, Burnett Building and the Assessor’s Office. A series of interim measures for this portfolio – involving phased decant and relocation Argyll & Bute Council Corporate Services Strategic Management Team: Campbeltown Property Options paper 11 January 2005

- is proposed prior to consolidation at a single location. An office of around 2500 sq.m. in a location accessible to the public is expected to be required. Any co-location with other public sector partners could take the building requirement closer to 3500 sq.m. The Council’s preferred option will be informed by operational considerations, life-cycle costings and funding options, and the ability to deliver community services and partnership working for Campbeltown. RETAIL 21 Campbeltown is a comparatively self-contained retail market serving the Kintyre peninsula population (identified in Section 2 above). The town’s population and catchment falls well short of the numbers required to attract national multiple retailers in any numbers. The only such retailers in Campbeltown are small supermarkets and variety stores. 22

A recent report included an audit of Campbeltown’s town centre retailing and information on catchment potential provided by specialist data providers . The comments below expand upon the research and findings in that report.

23

Potential catchment expenditure on convenience shopping is £15 million at 2006. Actual expenditure is estimated at

Campbeltown Town Centre Study (GL Hearn, August 2002) Mapinfo Illumine The catchment for retail is defined by Mapinfo Illumine as 10,417 at 2001, larger than the local housing market


november 2005 | yellow book

£14.12 million, suggesting most is retained locally – this is not surprising given the distance to the next available convenience foodstores. The two principal foodstores in Campbeltown, Tesco Metro (849 sq.m.) and Co-Op (768 sq.m.), are reported to be trading relatively well and no additional requirement is identified for food shopping. 24

25

.

Comparison shopping has very different trading patterns. Of potential catchment expenditure close to £19 million, only just over 50% is estimated to be retained in the town at 2006. The remainder flows out to larger centres in West Central Scotland and via internet and mail order shopping. Clothing and footwear is reported as a particular gap in the local market. One local variety store – Woolworth – is represented while the remainder are local shops and retail services. For a stand-alone small town there appear to be fewer in-shop franchise outlets than might be expected. Population forecasts indicate further declines to 2011 and 2021. Slow growth in convenience expenditure (below 2% per annum) is therefore unlikely to yield additional market potential in this sector. Stronger growth in the comparison sector would not necessarily lead to significant benefits locally, as any additional expenditure will probably target higher order shopping and therefore would be directed to larger centres.

Address

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27

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Future market growth is therefore likely to be achieved by a combination of modest increases in Campbeltown residents’ convenience and comparison expenditure, augmented by available visitor spend (including both business and tourism visitors). In terms of demand from retailers, Campbeltown (and its catchment) is generally considered to be too small to attract national or regional Scottish multiples. Any new activity is more likely to come from local expansions, new ventures or perhaps concessions within stores. Retail premises on the market in Campbeltown are identified in the table:

Address

Terms

Comment

16-10 Main Street

£150,000

Retail store for sale.

Ralston Road

£40,000

Post office and general store business for sale.

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30

Both retail premises on the market are offered on an owneroccupied basis. Market evidence of retail property transactions in Campbeltown is extremely limited. Many shops are owneroccupied and new market entrants are rare. Published market transactions are listed below.

2 Union Street

Date Dec 00 Feb 02

Woolworth

1996

Details Shop sold prior to auction. Part of ground floor of a 3 storey building plus 2 adjacent shops – 59 sq.m. and 21 sq.m. Sold at Auction £15,000 Rent review £11 per sq.ft. Zone A (2001 review assumed to have happened but rent not identified)

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The prices achieved suggest that Campbeltown’s retail sector trades at levels associated with district shopping centres rather than town centres elsewhere in Scotland.

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In the commercial property market, more evidence is available for hotels and leisure than retail. The table below identifies some recent transactions.

Address Argyll Hotel, Bellochantuy

Date Apr 04

Seafield Hotel, Kilkerran Road

Sept 02

Dillons Bar, Bolgram Street

Oct 02 Jul 00

Details Hotel. Asking price £298,000. 9 bedrooms, 2 bars, dining room, conservatory, games room and 4-bedroom home. Hotel. Asking price £195,000. 9 en-suite bedrooms, reception/ sitting room, public bar and restaurant/ function bar. Public house sold prior to auction for £20,000. 3-storey end terrace property pub/ ancillary space/ self-contained flat. Sold at Auction for £19,000.

c a m p b e l t o w n a n d k i n t y r e s t r a t e g y | 61


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In addition to these recent transactions, a public house at 42 Main Street marketed at a price of ÂŁ190,000 is reportedly under offer.

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Most significantly in the leisure sector, planning consent was granted in February 2005 for the development of the Machrihanish Golf Links. This ÂŁ20 million development by Brightside Leisure will comprise a championship golf course, ocean-side clubhouse and 32 timeshare lodges. Brightside Leisure is also assembling key sites in central Campbeltown for redevelopment. Plans include an expanded hotel on the site of the Royal Hotel and development of private flats and potentially office accommodation on adjoining mixed-use sites.

Ryden

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