Business / Future workforce and accommodation demands spelled out in new research
SIC leader Emma Macdonald said industries coming to Shetland ‘must provide’ housing solutions for their workforce
UP TO 1,850 temporary jobs could be created in the Shetland economy as energy project construction reaches its peak in the coming years, according to new research.
This figure combines a projected transitional job growth from major projects of 1,490 jobs, and 356 temporary jobs which could be created from the existing economy.
But estimates claim there could be a need for between 1,200 and 1,500 homes in the next 10 years to meet demand, the research adds.
The figures are included in a key worker housing study created by consultants Arneil Johnston on behalf of Shetland Islands Council (SIC), which was presented to the local authority’s development committee on Wednesday.
It comes ahead of another wave of future energy development in and around Shetland which could include substations, pylons, a second HVDC cable to the Scottish mainland, onshore wind farms, offshore wind farms and two ammonia plants.
Concern has been raised in the past about how visiting workforce will be housed during the construction of these projects.
In October SSEN Transmission said an “underutilised hotel”, an accommodation camp and serviced accommodation were among the options it was considering.
At Wednesday’s meeting, SIC development director Neil Grant said discussions with SSEN Transmission have been “positive”.
“They’re recognising that they will need to accommodate workforce in various ways, including probably camps and legacy housing,” he said.
Grant reiterated however that legacy housing – which would support local need after the work is done – needs to feature the right stock, in the right location.
He also said SSEN is “looking to have stock in place in less than three years”, which the development director described as a tight timescale.
But generally Grant said the workforce requirements over the next decade were “really significant” – and warned about the risk of energy projects using up local contractors to the detriment of the council or Hjaltland Housing Association, for example.
Outside of energy there are other large projects potentially on the horizon such as a new Brae school and an ultra deep water quay at Dales Voe.
The workforce pressures were spelled out clearly in the research report on key worker accommodation.
A central message was that the situation remains “fluid” due to the changing nature of future development, and this has resulted in a formal policy not yet being put for approval.
SIC housing manager Anita Jamieson said the report was commissioned against the background of the Scottish Government pledging a fund worth £25 million for key worker housing.
The research included a workforce survey of local businesses, with 72 companies and public sector organisations responding.
It painted a picture of how recruitment and retention can be a challenge – with a lack of housing a key part of this.
But this is already a well-known issue in Shetland.
More than half of employers said they have made a job offer in the last year which was declined by the applicant, with housing a regular reason as to why.
Arneil Johnston’s Donna Milton meanwhile said Shetland was punching above its weight for the Highlands and Islands when it came to economic opportunities in the future.
In addition to the large temporary increase in jobs, the research suggested up to 1,000 permanent operational jobs could be created in the Shetland economy in the next decade.
This covers both the existing economy and new projects too.
Despite the large need for extra accommodation, “housing completion rates in Shetland are at an all-time low with construction costs the highest in Scotland”.
A further policy report will be brought to development committee to “align actions to support key worker accommodation solutions” in the new year.
Shetland North councillor Andrew Hall said it was ironic that although the Highlands and Islands are seen as an economic driver, there is not additional funding coming yet from the Scottish Government for housing.
However SIC leader Emma Macdonald said the issue has been on the agenda during discussions with ministers.
She also said that while future development is seen as an opportunity, “for many people in Shetland they see this as a massive threat” as there is not the required investment and infrastructure in place.
Macdonald was fairly clear – industries coming to Shetland “must provide” housing solutions for their workforce.
“If you want to do business here, there’s a cost to that, and that’s providing workforce housing,” she said.
SSEN previously pledged to support the delivery of more than 1,000 new homes for local communities in the north of Scotland, although details for Shetland remain unclear at this stage.
A spokesperson previously said that the company was “exploring all viable options as part of our accommodation mix”.
This also included bringing empty homes back into long-term use.
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