Hawick companies with different yarns to spin!

by OUR BUSINESS EDITOR

The starkly contrasting fortunes of two of  the leading Scottish luxury knitwear brands which made Hawick-produced cashmere sweaters famous across the world during the Twentieth Century are revealed in the latest financial reports from Pringle of Scotland and Barrie Knitwear.

While Barrie, owned by the Chanel fashion house saw its turnover grow by an impressive 21 per cent in 2023, and its workforce increased to 280, Pringle - now in the same stable as Moss Bros - suffered a 34 per cent decrease in income while staff numbers now total a mere 14, including the company's three directors.

At one time, both businesses were owned by Dawson International, the global textiles group which provided the Scottish Borders with thousands of jobs and considerable economic prosperity.

But after Dawson's financial collapse, the Pringle name was sold to the Chinese-based Fang family for £6 million. And following the liquidation of Dawson's, Chanel acquired Barrie in 2012 in a deal which safeguarded the jobs of the firm's 176 workers in Hawick.

As we reported, Pringle of Scotland was subsequently acquired for £10 million last year by a group called Broadgate 1960 Ltd. without any public statement being made. The ultimate parent company, according to the latest filing at Companies House, is Three Wishes Ltd., a business incorporated in Hong Kong and controlled by Dominican national Menoshi Shina.

But in its first financial report since the takeover, Pringle reports that turnover in the 11 months to December 2023 was £2.669 million, down from £4.045 million in 2022. The firm's gross profit is given as £1.985 million, down from £2.767 million in the previous 12 months under the Fang regime.

Even ten years ago Pringle of Scotland employed over 60 workers although that was a pittance compared to the several thousand on the payroll between the 1940s and 1960s. 

The 2023 accounts include this reassuring paragraph under the heading Going Concern: "After making enquiries of Broadgate 1960 Ltd and its fellow subsidiary Crew Clothing Ltd who are companies under common control, the directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the company to continue as a going concern.

"The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future".

The fairly downbeat figures from Pringle's are at odds with the very positive returns from Barrie - turnover up from £25.636 million in 2022 to £31.069 million last year. Gross profit of £8.599 million is similar to the previous year's figure of £8.264 million.

According to a strategic report from managing director Jan Young: "Turnover increased by £5.433 million due to continued strong demand from the luxury market and very good performance from everyone to consistently develop and deliver pieces in a tight timeframe".

Gross profit margins fell to 28 per cent from 32 per cent due to increased material costs, sub-contracting costs and investment in training of direct labour. Operating profit also fell due to planned expenditure on recruitment, training and consultancy support for business improvement projects.

It is made clear in the report that if Barrie required assistance to meet its financial obligations, Chanel UK would be able to provide that support, if needed.

In the eleven years since Chanel bought Barrie for an undisclosed sum, the workforce has increased from 182 in 2013 to 261 in 2022 and 280 last year. The company's annual bill for wages and salaries now totals £9.409 million.

During 2023, Barrie took out two new leases to establish production facilities in Galashiels and Leicester, adding to their other manufacturing centres in Hawick and Arbroath.

Several years ago the business made a £2 million loan to a company in Mongolia who Barrie is working with to establish an improved supply chain for cashmere fibre.

Wind powering more Borders jobs than textiles

by EWAN LAMB

The booming wind farm industry in the Scottish Borders will require approximately twice as many workers for construction and maintenance next year than the region's dwindling 'traditional' textile trades of spinning and knitting, according to skills forecasters.

But Scotland's wind energy sector is growing so rapidly that wind farm projects in the Borders and elsewhere may not be delivered on time unless there is a major influx of new well trained employees in the rest of the present decade.

It has been estimated the current textile industry workforce in the Borders totals about 1,000 individuals although more than 20 per cent of the posts are part-time.

Meanwhile, a report by Climate X Change, Scotland's centre of expertise connecting climate change and policy, based at Edinburgh University, has predicted wind farm construction and installation in the Borders will require 1,436 staff in 2025 plus a further 123 for operations and maintenance.

The numbers needed for construction in future years are: 2026 - 1,095; 2027 - 909; 2028 - 1,022; 2029 - 981; 2030 - 1,012. At the same time, full time equivalent (FTE) requirements to run developed projects will be: 2026 - 140; 2027 - 154; 2028 - 174; 2029 - 202; and 2030 - 218.

These figures compare to the 2024 numbers of 955 working in the construction of Borders wind farms, and 77 involved in maintenance.

So far as the national picture is concerned, the report states: "To meet the 2030 ambition, the workforce serving the onshore wind sector needs to increase from around 6,900 FTEs in 2024 to a peak of 20,500 in 2027. Over 90% of the roles will be in construction and installation of wind farms".

The report's authors claimed that overall, stakeholders in the industry felt that those working in the sector have the right skills, but there are skilled workforce shortages. 

"In the short term, there is a need for more people to join the sector and for individuals from other sectors to be reskilled/ upskilled. Without this, the sector faces challenges in delivering new projects on time, maintaining existing wind farms and maximising economic and environmental benefits. 

"Not addressing skill shortages is likely to have a severe impact on the ambition to install 20 GW of onshore wind by 2030. By 2027, our model predicts that, on average, four times more FTEs will be required for construction and installation than in 2024. Within this, five times more civil contractors will be required."

Climate X Change has recommended the Scottish Government along with other public agencies, industry and the education sector, take the opportunity to address expected skill shortages in relation to the 20 GW capacity ambition by 2030. 

"Investing in skills development is not only essential for the success of individual onshore wind projects but also for Scotland's broader renewable energy goals. Addressing these shortages will require a comprehensive approach, including workforce development initiatives, training programmes and industry-academy collaborations. In this regard, collaboration between stakeholders from the public, private and education sectors will be crucial to bridge skills divides and unlock the full potential of Scotland's onshore wind resources."

According to the university team, the most pressing action is to raise awareness of the broad range of career opportunities directly or indirectly associated with the onshore wind energy sector, especially for regional workforces. 

"There is scope for targeted campaigns in rural areas where the majority of the new installations will take place – to demonstrate well-paid, highly skilled jobs for local people. For example, according to UK Government statistics a wind turbine technician can expect a starting salary of £25,000 reaching £47,000 with experience. This could also help address population decline, due to younger people moving to more populated parts of the country." 

Troubled waters for Borders flagship scheme

SPECIAL FEATURE by OUR LOCAL GOVERNMENT EDITOR

A £29 million flagship infrastructure project designed to transform the Scottish Borders economy has become totally becalmed after civil servants demanded revised business cases to justify further financial investment.

The Borders Innovation Park [BIP], close to the Tweedbank rail terminus, is already well behind schedule. It was originally intended as a vehicle to provide quality office space for incoming businesses.

But the Covid pandemic in 2019 crushed demand for new offices in the Borders and elsewhere, and the park's promoters Scottish Borders Council decided to revise the make-up of the buildings to deliver a higher proportion of top end industrial units.

The park is being partly funded by a £15 million grant from the Edinburgh & South-east Scotland City Region Deal which is investing £600 million in a bid to bring additional prosperity to the region. 

The original business case for BIP claimed the Tweedbank facility "represents very high value for money". Programme implementation was given as: phase one completion by September 2020; phase two by March 2022, and phase three by March 2024. 

Only the first phase has been completed with most of the space occupied by the council's Inspire Academy and by CGI, the authority's IT provider.

A meeting of the city deal joint committee was told by Andy Nichol, head of the deal's project management office that BIP was due for reconsideration by committee members in December but it was likely that date would need to be rescheduled. 

Said Mr Nichol: "We had hoped to progress changes to the the phase two approach and these were largely in terms of revisions to the proportions of traditional office space and altering that to higher end industrial units on the back of changed behaviours that have arisen following the COVID pandemic. We had hoped to to make those revisions via a change control process, but the government signalled that we're going to have to provide a revised business case instead."

Earlier this year South of Scotland Enterprise confirmed it was providing £3 million in funding to help facilitate phase two of BIP.

At the time Councillor Scott Hamilton, Executive Member for Community & Economic Development at SBC commented: “The announced funding from our partner SOSE is extremely welcome news and helps fund a critical next step in the development of the Borders Innovation Park at Tweedbank. 

"The site has incredible potential and will help to transform our area’s economy by tapping in to nearby transport links like the Borders Railway and attracting new workers, homeowners, businesses and visitors to the region. All of this together will help stimulate new rural economic growth whilst delivering lasting benefits to the wider region.”

The strong feeling of frustration at Scottish Borders Council in the wake of the latest setback was expressed by council leader Euan Jardine when he addressed the city deal committee.

Councillor Jardine told the meeting: "it was disappointing to receive the feedback from the Scottish Government civil servants last week that phase two of the Borders Innovation Park needs an updated full business case to cover the extension of the existing site. 

"Civil servants have also advised they need a separate new full business case for the next [third] phase, which would significantly delay project delivery. This is particularly frustrating as we had requested a simple change control process."

This would have allowed a different business use mix between office and flexible hybrid industrial space to reflect changes in the economy since the pandemic. 

"The experience in both Scottish Borders and in Fife is evidence of demand for business space. It's complex to demonstrate this significant market demand, but that initial phases of development in both Borders and Fife have been successfully let shows the need for public sector intervention to support business growth."

And the Borders council leader added: "Scottish ministers said at the Convention of the South of Scotland in September 2023, that they would explore a more pragmatic and responsive approach to business development in the south to support the development at Tweedbank and other key assets and sites. However, its clear civil servants are struggling to give us that flexibility."

There was support for that view from Midlothian councillor Russell Imrie who commented: "Things are not the same as they were in 2019. Civil servants are going to have to be more nimble on their feet. This may be the first example of its kind, and to hold back on this project is not acceptable".

Officials told Borders councillors in a March 2023 report there would be external funding for BIP of £4.972 million in 2023/24 and £6.183 million in 2024/25.

However, papers for the city deal committee meeting showed a sum of only £1 million for the innovation park in 2024/25. Just £0.1 million had been drawn down in the first quarter of the financial year. In fact total investment from city deal funds is £2.9 million, 20% of the £15 million allocated.

There is said to be considerable concern in local government circles that delays in project delivery like that now emerging in the case of Tweedbank's BIP may soon be commonplace.

We were told: "There is - all of a sudden - a need to “relook” at some projects which everyone thought were progressing OK; more/revised business cases needed.  The Borders BIP seems to be falling foul of a climate of civil servant anxiety about spending commitments in light of budget and monetary worries."

City deal committee members decided the organisation should write to appropriate Scottish ministers expressing their concerns and pressing the case for work on the BIP to restart without any further significant delays.

Teviotdale's new 'residents' may need special treatment!

by LESTER CROSS

The arrival of two majestic incomers to the Teviot valley in the Scottish Borders has prompted reconsideration of the possible impact a 53-turbine windfarm could have on these leading predators of the countryside.

A pair of golden eagles apparently settled in the area where the Teviot windfarm would be constructed in May 2023, introducing the potential for collision risk with turbines and turbine blades.

Now, in a revised submission to the Scottish Government's Energy Consents Unit, wildlife watchdog NatureScot says: "Whilst they do not appear to have to date, if this establishing pair build a nest, and this is close to the proposed development, further consideration of potential impacts would be required."

At the same time, an ornithological report prepared for developers Muirhall Energy concludes there would not be significant loss of golden eagle habitat if the vast project goes ahead.

The various applications seeking permission to deliver the facility across a large swathe of the valley have been under consideration since 2022. The original scheme envisaged 62 turbines before scaled down proposals were substituted earlier this year. Planning authority Scottish Borders Council is expected to take a decision on the application later this year.

Anne Brown, National Operations Officer (South) for NatureScot, writes in the recently published submission: "The AEI [Additional Environmental Information] Report includes an assessment of the impact of the proposed development on resident and dispersing golden eagle. 

"We agree with the report that collision risk is the lesser concern for golden eagles at this location, with displacement the main impact of the proposal. Using the satellite tag data, the report estimates a 3.2% loss of range habitat, which is not of concern in this context. We support the proposal for monitoring of golden eagle and habitat management for them, in consultation and partnership with the South of Scotland Golden Eagles Project (SSGEP)."

The original bird data report lodged by the developers before the arrival of the golden eagles stated: “Surveys have included flight activity surveys, breeding bird surveys (including specific surveys for black grouse, raptors, nightjar and waders), prey transects to assess habitat quality for raptors and winter walkovers. 

"These surveys have found that the site is of overall low ornithological sensitivity in relation to its potential for wind energy development. A number of species of conservation interest are known to pass through the study area, including barnacle geese and hen harrier. Breeding birds of interest include curlew, merlin, peregrine and goshawk.”

The SSGEP has been releasing tagged birds throughout the South of Scotland in recent years. Analysis  had indicated that sufficient habitat exists in the South of Scotland for 14 – 16 pairs of golden eagle, and of relevance to the Teviot windfarms project was the identification of suitable habitat in the nearby hills, mostly to the south-west towards Langholm.

According to the updated ornithological report commissioned by Muirhall: "The Golden Eagles project aims to reinforce the small breeding population of golden eagles in South Scotland through translocation of birds from other parts of Scotland. To date 26 birds have been released with satellite-tags. Satellite tag data was purchased from the project enabling an analysis of potential effects on golden eagles."

A pair of satellite-tagged golden eagles had established a territory which partially overlaps the area where turbines are proposed. 

A widely used approach for evaluating the impact of turbines in a golden eagle's territory showed 6.1% of the birds' range would be lost, marginally over the 5% threshold typically adopted to determine significance in such analyses. 

"However, in this case, due to the availability of satellite tag data from both the male and female birds in the range to define habitat use and loss, a loss of 3.2% is predicted; this is within the 5% threshold and thus on balance the impact is not likely to be significant. 

"Monitoring and habitat management are recommended. Consideration has also been given to the potential for effects on dispersing (non-territorial) birds. Analysis of the satellite tag data set provides strong evidence that there would not be significant loss of good golden eagle habitat used by dispersing golden eagles."

A golden eagle's range or territory can extend to 77 square miles.

Muirhall's report explains that prior to construction, further consultation will be undertaken with the SSGEP. Any additional measures required to mitigate the risk of construction disturbance will be implemented. 

Measures would include: Define any Sensitive Working Zones and Exclusion Zones in consultation with a recognised eagle ecologist following an updated review of sat tag data from (SSGEP), and share details of these zones with SSGEP, NatureScot and Scottish Borders Council’s Ecologist; Schedule works to minimise the level of activity in sensitive working zones during the period February to May inclusive. This restriction to be extended until August should it be confirmed that golden eagles are breeding within the sensitive working zone.

 

Climate change consequences on Borders agenda

by DOUG COLLIE

The likely impact of climate change on residents of the Scottish Borders will be considered at an event in Stow this week following detailed analysis of flood and weather warnings included in a report outlining measures to combat global warming locally.

Scottish Borders Climate Action Network, Change Mental Health and NHS Borders are organising the one-day get-together in a bid to build community resilience and outline ways of supporting rural mental health and combat climate anxiety.

The report - Climate Change Impacts Scottish Borders - is the work of Dr Lisa Adams, Specialist Registrar in Public Health at NHS Borders.

The analysis shows that from September 2023 until the end of January 2024 there had been 35 yellow warnings issued, in comparison to 29 within the same time frame the previous year. The trend in yellow weather warnings was likely to continue to rise. 

"Data regarding flood alerts and warnings (combined) was examined for Scottish Borders over the last 6 years. . When this is looked at annually, it can be seen that the overall trend for flood alerts and warnings is increasing across Borders, with the highest number recorded in 2023. 

"When the alerts and warnings are broken down monthly, the two highest peaks were in February (2020 and 2021). In February 2020, 3 severe flood alerts were issued to Hawick (Slitrig), Hawick (Teviot) and Newcastleton village."

A section of the document explaining the likely impacts of climate change in the Borders region lists areas most at risk.

"Specific high areas of concern for flooding include Hawick, Peebles, Jedburgh, Newcastleton and Eyemouth, based on projected risk and historic events.

"Areas that have a higher number of private water supplies are at increased risk of water quality issues from a number of climate related consequences, as well as water scarcity. New builds, and purpose built flats (especially top floor) are more at risk of overheating and ventilation issues. 

"Care homes, education settings and hospital sites are also at greater risk of overheating. Coastal communities are at risk of sea level rises as well as coastal erosion and the consequences of these. south facing areas, particularly on slopes and with good vegetation are most at risk of wildfire events. Steep sided river valleys are most at risk of landslides. Remote communities are at risk of much if the predicted changes to climate, imminent weather events and further impacts of all of these."

People most at risk, according to Dr Adams' report, will be older adults who are particularly vulnerable to the changes in climate, and some of the events and consequences that are predicted to occur. In the short term.

"The older adults of today are at risk of current climate changes, but it is important to remember that the 45-64 year age group are those that are likely to be most vulnerable to the impacts that are anticipated by the 2050s (which in Borders is our current largest proportion of the population)."

And the report warns: "Those who live in the most deprived areas of Borders are at risk of many of the impacts of climate change due to their baseline vulnerability and inability to adapt quickly to any severe weather events or infrastructure disruption and destruction. 

"They are also at risk of some of the mitigation and adaptation measures for climate change if these are not carefully considered. This is important as 21% of the population of Borders live in [areas of multiple deprivation]. The most deprived areas to consider are Langlee (part of Galashiels), Hawick, and Bannerfield in Selkirk."

As well as raising public awareness, other suggestions outlined in the report include:

*Working with health and social care to identify those who are most at risk from climate change, and to ensure that these services are also resilient to any climate impacts.

*Continue to work towards the actions outlined in the NHS Borders Climate Change and Sustainability Action Plan. Partnership Working.

*Consider specific vulnerable settings such as schools, care homes and workplaces, identifying measures could be put in place in these locations to enhance resilience and reduce vulnerability to some of the health impacts of climate change. 

Huge rise in Borders home educated children

EXCLUSIVE by OUR LOCAL GOVERNMENT EDITOR

The number of school age children in the Scottish Borders being educated at home has increased by a remarkable 770 per cent in seven years, according to new figures obtained by an organisation which supports parents who decide to eschew the state system.

Educational Freedom's joint founder Cheryl Moy submitted Freedom of Information requests to scores of educational authorities throughout England, Scotland and Wales, asking for data and other information relating to home education.

She was told in a response from Scottish Borders Council that as of August 2024 148 children from 120 households were being home taught. 

Figures provided by the local authority in a separate FOI request lodged in 2022 showed that just 17 pupils were receiving their education at home in 2017. The statistics for subsequent years were: 2018 - 67; 2019 - 53; 2020 - 41; 2021 - 73; and 2022 - 110. The 2024 figure for neighbouring Dumfries & Galloway is 185 children from 153 households.

Data from Scotland's education authorities suggests over 2,200 children are currently being schooled at home, up 40% in two years.

Earlier this year the NISAI Educational Institution declared: "This increase is due to lower educational standards and more classroom violence. Scotland’s decrease in international league tables for Reading, Maths and Science among 15-year-olds, along with stories of growing violence in schools, has resulted in a loss of trust in state education." 

Educational Freedom told us their survey work showed more and more people were choosing to self educate their children.

They said: "We really don’t think there’s any one reason, but awareness of home education being an option is probably the most important factor. Years ago parents forced unhappy children into school, kept trying to fight for Sen [Special Education Needs] to be met, but now there’s so much more knowledge about the choice, and people are starting to home educate."

This week the group published a major report based on the findings from their research. 

The report says: "Research and evidence regarding home education remain limited, with the perspectives of home educating parents and children frequently absent from official discourse. Drawing on statistical data from surveys, anecdotal insights from casework and discussions, and information obtained through Freedom of Information (FOI) requests, this report seeks to inform discussions and decision-making around home education."

Educational Freedom has supported tens of thousands of home educators, engaged with the majority of Local Authorities, participated in government consultations, and provided information to the Department for Education.

The report explains that many home educators expressed reluctance to participate in the survey, citing a lack of confidence that their voices would be heard and respected by either their council or the government. 

"This sentiment should be considered by the authorities when formulating policies and legislation, as meaningful consultation with home educators is essential. Home educators take their responsibility to provide a suitable education very seriously, and overwhelmingly oppose further restrictions, registers, or increased involvement from local authorities."

KEY FINDINGS - Researchers were told home education is often not a choice, but a last resort for many families. Those contacted cited a variety of complex reasons for choosing home education.

But even when initiated due to negative circumstances, many families reported wishing they had started home education earlier and intend to continue it. Home education is generally viewed as a positive experience by families. Unmet Special Educational Needs (SEN) were a significant factor for many families, with some feeling that schools and councils did not adequately support their children.

The 2024 survey results includes data from 178 local authorities although some were slow to respond to FOI requests from Educational Freedom.

Information collected shows that across the UK 100,340 children were known to be home educated, with 92,424 being reported as resident in England.

A search for home education guidance and policy on Scottish Borders Council's website produced a set of guidance produced by the Scottish Government in 2007. The authority's Education & Lifelong Learning Home Education policy document is dated 2008. 

'Shameful' cost of Borders PFI schools

by DOUGLAS SHEPHERD

Scottish Borders Council has come under fire from SNP politicians after Not Just Sheep & Rugby revealed the local authority has already paid £153 million for three secondary schools which only cost £72 million when they were built using the controversial Private Finance Initiative [PFI] system.

The drain on council resources via annual payments - currently running at over £16 million per year - is set to continue until 2038 when the deal with Luxembourg-controlled Scottish Borders Education Partnership is due to end.

In a media release issued today, SNP MSP Christine Grahame, who represents the  Midlothian South, Tweeddale and Lauderdale constituency in the Scottish Parliament declared: "It is shameful that at a time when Scottish Borders Council is cutting services to save money, it continues to be obligated to pay millions of taxpayers money to unanswerable, offshore equity firms who make huge profits. 

“Imagine the difference this money could have made if it was spent on local services. As we continue to deal with this horrendous legacy we must ensure it is never, ever allowed to happen again.”

As we reported, it is exactly 20 years since Borders councillors decided by 27 votes to two to use a PFI project to deliver replacement schools for Eyemouth, Earlston and Duns.

As Ms Grahame's statement explains PFI was heralded as a way for local government to fund public construction projects by partnering with private companies. Instead of the Council paying upfront, a private company builds the project, and the Council pays them back over time, meaning the cost can be spread. 

"However, many of the PFI contracts have astronomical charges and interest built into the contracts which leave the final cost often being multiple times more expensive than the original project."

Our analysis of council accounts and papers issued by the Partnership showed, among other things, the owners of the PFI contract made its highest annual profit of £851,000 in 2023 at the expense of the Council by providing operational and maintenance services, including related financial arrangements for the three schools.

SBC's unaudited accounts for 2023/24 reveal the Tory-led council will have to find a total of £16.694 million (including £3.468 million in interest) to meet its PFI commitments this financial year. The payment also includes £8.6 million for maintenance services and £4.623 million for reimbursement of capital expenditure.

Ms Grahame said: “The pursuit and promotion of PFI by successive Tory and Labour governments, until the SNP abolished the practice upon entering government in 2007, continues to be a blight on the public purse.

Meanwhile, Councillor Fay Sinclair [SNP] a Galashiels & District member of the Borders local  authority has submitted a question on PFI spending for consideration at a full council meeting next week.

Councillor Sinclair, who works part-time as a case manager for Ms Grahame, asks: "It is now 20 years since SBC voted to proceed with a PFI scheme to replace three secondary schools.

1. What was the cost of building these three schools?

2. How much has been paid by SBC for the scheme to date?

3. How much will be paid over the remaining 14 years of the deal?

4. What will be the overall cost to SBC of these three schools?