by William Chalmers
Since the discovery of oil in the North Sea some 25 years ago there has been a dramatic development of the offshore oil industry, with about 40 fields now in production and another 14 under development in the northern and central North Sea. It is envisaged that development will continue and that another 60 fields will come on stream over the next 20 years.
Aberdeen has, over this period, risen to the challenge and can now boast that most of the major oil companies have their North Sea headquarters in the city, while others see the attractions of lower on-costs and continue to move north. Although the drop in the price of oil in 1986 caused a downturn in activity, there is now a renewed confidence in the city; it is interesting to note that, in the Grampian regions, oil-related employment, which stood at 52,000 in 1985 and fell to 40,000 in 1987, is now rising and stands at over 45,000.
To highlight one or two recent developments, a major drilling and technology centre has just received planning permission and it is expected that the project, by the Scottish Development Agency, will comprise a drilling rig, test pits for developing, testing and calibrating well-logging equipment, a sub-sea technology centre for testing underwater equipment and services, and a laboratory to simulate oil, gas and water pipeline flows.
Further, the Aberdeen Beyond 2000 Group, a private sector initiative, are presently engaged in proposals for the development of a multi-million-pound oil experience centre which it is proposed will simulate a helicopter journey to an oil rig and will provide the increasing number of tourists to the area with hands-on experience of working conditions on an oil rig. The city council has agreed in principle to make a site available for the provision of such a centre.
On the property front, since 1976 some 650 acres of industrial land has been developed, with the city council owning about 280 acres most of which has been developed on long-term leases granted to individual companies. The Aberdeen Area Structure Plan and the recently published citywide local plan suggest that a seven-year continuous supply of land is maintained on a variety of sites throughout the city and, as at January 1, there were around 304 acres of industrial land as yet undeveloped.
While the oil industry is vitally important to the economy of the area, the city council has a policy to further the general economic welfare with an emphasis on the retention and expansion of a diversified economic base and the stimulation of employment opportunities, particularly through the encouragement of the traditional non-oil-related industries and tourism. In furtherance of that policy, the council operates three business centres providing accommodation ranging from fully serviced offices to studios, hi-tech units and workshops all available on short-term leases. These centres have been developed specifically to assist new, small businesses with a view to creating employment opportunities. It is significant that, at the most recent development, the Riverside Business Centre, the accommodation was fully let within 10 weeks of completion.
Accommodation has also been provided by the council for an unemployment centre and, in addition to meeting rooms, workshop space has also been provided so that new skills can be taught and developed. Other market niches have been identified and the city council is hopeful that these demands can be developed by means of a rolling investment programme over the next few years.
One of the city’s main traditional industries has been the fishing industry and last year, following a city council initiative, a report was commissioned on its future. That report highlighted the need to improve the quality of fish-processing premises, the areas they occupy, improve fish-processing hygiene, promote added-value products and increase employment and business development.
The traditional fish-processing area of the city has been targeted and Aberdeen District Council in conjunction with Aberdeen Fish Merchants & Curers Association, Aberdeen Harbour Board, British Rail, Grampian Regional Council and the Scottish Development Agency have co-operated to form the Seafood Project with a planned investment programme of £9m, and, it is to be hoped, a further £10m from the private sector.
The results of the first shopping study in some 10 years have supported the existing views and policies of the city council and it has been resolved that these should be maintained and promoted. The study recommends that the city centre should continue as the region’s prime shopping area, particularly for comparison goods, and predicts a demand for additional comparison shopping in the city centre after 1991 and a requirement for additional retail warehousing in the period 1991-96. The city council is seeking to enhance the city centre as the region’s prime shopping area by identifying sites, encouraging environmental improvements and pedestrianisation and looking to achieve a balance between developmental needs, parking, the impact of architectural quality and the environment.
On retail warehousing, the policy records support for non-food retailing only on identified sites and sets criteria in respect of any alternative proposals. On superstores, the policy records recognition of a need for a larger supermarket in the western sector of the city and presumptions in favour of a qualitative upgrading of existing stores and against any additional superstores detached from existing shopping centres.
The city council’s principal initiative and activity in shopping over the past decade has been in the preparation of a developer’s brief and in the progress as a co-partner in the acquisition and development of two adjacent areas of the city centre extending to some 10 acres to produce the St Nicholas and the Bon-Accord centres. The St Nicholas Centre now comprises one major store occupied by John Menzies, 17 individual shop units and some 14,000 sq ft of office space and was opened for trading in late 1985.
The Bon-Accord Centre will comprise two major stores and some 46 units with a food court, all extending to some 270,000 sq ft with associated parking, 20,000 sq ft of offices, housing and an eightlane indoor bowling rink. The centre is due for completion in the summer of 1990 and already the two major stores have been let to C&A and Boots, while negotiations are progressing towards the first lettings to the major key traders.
Aberdeen’s economic future in the industrial and commercial sectors seems bright.
