Enterprise agency hails success of Unst islanders

The UK's most northerly populated island appears to have weathered the immediate impact of an economic storm which blew up when its largest employer shut its doors.

Just three years ago, residents of the Shetland island of Unst were left stunned by news that the Ministry of Defence had decided to pull out of RAF Saxa Vord, an early warning radar base and the centrepiece of the island's economy since 1957.

At the time, the outlook seemed bleak for the 720 islanders. Well over a hundred service personnel and civilians depended on the base for their employment, while dozens more jobs were supported in the wider community.

When Highlands and Islands Enterprise (HIE) joined forces with Shetland Islands Council to set up the Unst Response Team in 2005, one of its first actions was to commission an independent economic impact study.

Its conclusions made grim reading. It forecast 172 job losses – 119 at Saxa Vord itself and a further 53 full-time equivalent jobs which depended on the base for employment. Gross household income was predicted to drop by £3,245,000 – £2,470,000 in wages from the base and £775,000 more widely.

Look at Unst today, however, and the reality is far more encouraging.

Unemployment is low and significantly, a number of new businesses have been set up, helping to diversify and strengthen the island's economy.

Military Asset Management (MAM), which bought the former RAF base in 2007, has converted 12 MoD houses into self-catering accommodation and of a new restaurant. A producer of handmade chocolates, Foords, is operating from the site, and plans are well advanced for the island's Valhalla Brewery to relocate and expand.

The Unst Response Team was stood down as a dedicated resource in June 2008, but the island remains a priority for HIE's Shetland area team.

During its lifetime, the team dealt with 144 enquiries from island businesses and social enterprises. This resulted in 36 projects being given advice, and 41 receiving financial assistance totalling £1.2 million.

The team invested £905,552 to support 23 business growth projects which created nine full-time and six part-time jobs.

Seven new business start-ups were awarded a total £46,212 which created six full-time and three part-time jobs.

The team helped fund 11 community projects, investing £230,976 to create or enhance six community assets, including new developments by Unst Heritage Trust.

Four Unst businesses to date have been helped to target international markets.

Ann Black, Highlands and Islands Enterprise area manager for Shetland, says the Unst Response Team has provided effective leadership, and had strong praise for the islanders themselves.

"The people of Unst have proved highly resilient and creative in the face of an economic blow which would have daunted other communities," Ann said.

"In the face of a huge upheaval, they got their sleeves rolled up and worked with the response team to identify new opportunities and plan for the future.

"From the start, we took the view that the former RAF base was an asset which could become a different kind of economic hub for the island, and that's what has been achieved.

"All our outlying islands continue to face serious challenges, but Unst has shown what can be done when people work together for the good of their community.

"Their success to date is a great credit to the Unst Response Team and to all the islanders. It give us great hope that Unst can look to the future and plan ahead with confidence."

Speaking on behalf of Shetland Islands Council's Economic Development Unit, Douglas Irvine said: "Unst has taken its first important steps towards becoming economically independent of the RAF. A broader economic base is emerging in Unst and the Council has also invested in the island's future, particularly through the development of the £3m community pier in Uyeasound and by removing ferry fares between Yell and Unst."