Coronavirus (COVID-19) business support: equality impact assessments

The Ski Centre Fund & Ski Centre and Ski School Fund

Name of Grant:

The Ski Centre Fund & Ski Centre and Ski School Fund

Policy Lead

Philip Raines , Amanda Fox, Paul Rhodes, Roderick Low

Legal power used:

The authorisation for the budget is found in paragraph 8 of Schedule 1 of the Budget (Scotland) Act 2020, which gives the Scottish Ministers the power to fund tourism.

As the funding is being delivered by the Enterprise Agencies, the relevant grant making powers are explained below:

Highlands and Islands Enterprise

Section 26 of the Enterprise and New Towns (Scotland) Act 1990 provides that Scottish Ministers can give grants to Highlands and Islands Enterprise. Section 8(1)(a)(i) of that Act then allows Highlands and Islands Enterprise to provide grants.

Scottish Enterprise

Section 25 and Schedule 2, para 1 of the Enterprise and New Towns (Scotland) Act 1990 provides that Scottish Ministers can give grants to Scottish Enterprise. Section 8(1)(a)(i) of that Act then allows Scottish Enterprise to provide grants.

Grant Overview:

The Fund:

1. The Ski Centre & Ski School Fund is resource funding.

2. Number of centres and ski schools to be included in the fund has been confirmed (please Table 1).

3. Businesses must operate from premises in Scotland.

4. Snowsports centres are to be subdivided to aid delivery of the fund.

a. 3 main categories based on Snowsport Scotland data (size, criticality and financial need):

i. Mountain resorts;

ii. Tier 1 Centres;

iii. Tier 2 Centres.

5. Proposed maximum levels of award - within each sub category - have been determined by Snowsport Scotland as a guide based on the evidence they’ve gained.

6. All grant award levels are subject to the necessary due diligence.

7. Eligibility criteria for the fund are level of financial need (losses up to end of March 2021, loans/debts, any previous grant from SG Ski Centre Fund, etc), financial position as of Dec 2019 (to determine financial sustainability at that point in time) and sustainability of the business for the next 6 months;

8. Those snowsports centres and ski schools that have received public sector funding through eg project specific grants or Pivotal Enterprise Resilience Funding (PERF) are included subject to meeting all other eligibility criteria.

9. A ski school must be able to provide evidence of a clear commercial relationship between the ski school and the snowsports centre at which it provides services.

10. Exclusions from the fund:

a. Ski centres - those who are in public sector ownership or who have a long-term core-funding relationship with the public sector;

b. Those that fail to meet the eligibility criteria.

11. Businesses are eligible for the fund if they are either demonstrating existing Fair Work practices or are committing to working with HIE/SE and/or others on the adoption of these practices where appropriate.

12. The up to £4 m fund will be delivered at one time but delivery of the fund will be prioritised based on need.

13. The agencies will proactively contact each snowsports centre and ski school rather than advertise availability of the fund given the number of businesses concerned.

Published data on level of funding awarded is available at Coronavirus (COVID-19): business support management information - 8 October 2021 - gov.scot (www.gov.scot)

Executive Summary:

The snowsports sector is a key part of Scotland’s rural economy, worth an estimated £30 million per year and providing over 600 jobs ^[232]. Participation in snowsports provides physical activity which contributes to improved health and well-being. Scotland’s snowsports centres can be key elements of the local economy and workforce..

The Ski Centre Fund (£3 million) and Ski Centre and Ski School Fund (£4 million) supported those snowsports centres and ski schools (that had evidence of a clear commercial relationship between the ski school and the snowsports centre at which it provides services) that were identified as being in financial need and met the eligibility criteria for the funds. The two funds were developed at pace to ensure the sustainability of the businesses that the funds supported.

The Health Protection (Coronavirus) (Restrictions) (Scotland) Regulations 2020 (“the first regulations”) implemented physical distancing and imposed restrictions on gatherings, events and the operation of business activity. The first regulations came into force on Thursday 26 March 2020 and resulted in the closure of snowsports centres and ski schools.

A number of successive regulations were put in place to control and suppress the spread of the COVID-19 virus.

The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020 implemented a new Strategic Framework and came into effect on 2 November 2020. This approach resulted in a variable approach to restrictions across Local Authority areas including on travel.

The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Amendment (No. 11) Regulations 2021 set out additional Level 4, or ‘lockdown’, restrictions for mainland Scotland. Regulation 4 required the closure of snowsports centres in Level 4 areas from the 8^th January 2021.

The regulations impacted on the financial viability of snowsports centres and ski schools (where there was evidence of a clear commercial relationship between the ski school and the snowsports centre at which it provides services who were reliant on the operation of the snowsports centres) in two specific ways:

1. Reducing income from customers (skiers) where those skiers resided in areas under travel restrictions through the Strategic Framework and so were unable to travel to snowsports centres even when centres were open.

2. Reducing income due to the closure of snowsports centres when required to do so by regulations.

The University of Glasgow undertook an independent assessment of data that was provided to evidence financial need and all awards that were provided were subject to due diligence by the economic agencies (Highland and Islands Enterprise and Scottish Enterprise) that delivered the fund.

The £3 million Ski Centre Fund was announced on 30 January 2021 after being approved on 21 December 2020 and started being distributed in February 2021 by Highlands and Islands Enterprise and Scottish Enterprise.

A £4 million Ski Centre and Ski School Fund was announced on 4^th February and delivery commenced on 4 March following the requirement for snowsports centres to close in early January. Delivery of the fund by Highlands and Islands Enterprise and Scottish Enterprise started in March 2021

Key Findings - impact assessment of benefits and/or disadvantages.

17^th February 2021

The loss of income at such a peak period would be highly damaging for all ski centres. For several Scotland’s Snowsports centres, the loss would exacerbate vulnerability to the point that there would be a significant risk of individual bankruptcy.

The financial position of those ski schools that had evidence of a clear commercial relationship between the ski school and the snowsports centre at which they provided services deteriorated as the duration of restrictions continued.

Evidence provided by the University of Glasgow identified the net loss for ski schools in Scotland as £750 k from April 2020 to end of March 2021.

The following figures have been derived for the period from April 2020 until March 2021 by University of Glasgow, as part of the work for Snowsports Scotland on the impacts to the whole sector:

• £12.9 m reduction in net income
• 82% of this loss is attributed to ticketing and membership
• £4.3 m in Covid mitigating actions have been applied
• This includes the following measures:
  • £2 m in furlough savings and staff redundancies
  • £960 k in new loans
  • £775 k in unrestricted reserves being applied
  • £570 k in deferred capital payments/ capital costs and grant support was recorded
• This leaves a balance of £8.6 m in net revenue loss.

Timeline for research:

Snowsport Scotland loss data due to COVID-19 7 October 2020

• Self-assessment form shared with SG for Snowsports centres to complete. Form looking at impact of Covid-19

Snowsport Scotland Impact assessment (with analysis by Glasgow) 3 November 2020

• Findings from the Self-Assessment form shared with the SG

Detail show net impacts and mitigations taken by the sector as of 30 September 2020

Updated Glasgow University Report produced 18 February 2021

• Figures referenced above are taken from Glasgow university research findings and illustrate a clear picture of the impact on the sector during the pandemic.

Age: Older People and Children and Young People

Statistically valid data relating to age is unavailable.

Anecdotal evidence has indicated that a mix of ages are engaged in employment across the snowsports sector with young people being more likely to be employed in the food service and teaching roles with older staff being employed in technical roles.

Sex: Men and Women

Statistically valid data relating to gender is unavailable.

The snowsports centres are owned predominantly by men.

Anecdotal evidence indicates that the majority of technical posts at the snowsports centres are filled by men and that food service roles are occupied by women.

All snowsports centres availed of the Job Retention Scheme for their employees.

Race

Statistically valid data relating to race is unavailable.

Anecdotal evidence indicates that the owners and operators of snowsports centres and ski schools are predominantly Caucasian.

Little data is available on the race of visitors to snowsports centres however there is evidence available that has indicated that most of the outdoor visits taken by members of the Black Minority Ethnic community are taken in urban areas with local parks the most popular type of destination^[233]

Disability

Statistically valid data relating to disability is unavailable.

Disability Scotland UK provides adaptive ski lessons at two sites in Scotland (Hill End, Edinburgh an artificial slope and Snowfactor, Glasgow an indoor snowsports centre).

The Ski Centre Fund and Ski Centre and Ski Schools Fund supported Snowfactor and consequently contributes to continued access to skiing opportunities for people with disabilities.

Religion and Belief

Statistically valid data relating to religion and belief is unavailable.

By providing support equally across snowsports centres and to those ski schools with a contractual arrangement with snowports centres all religious and belief groups would have equal access to centres.

Sexual Orientation

Statistically valid data relating to sexual orientation is unavailable.

However, there is no reason to assume there is a particular issue in this area.

Pregnancy and maternity

Statistically valid data relating to pregnancy and maternity is unavailable.

However, there is no reason to assume there is a particular issue in this area.

Gender reassignment

Statistically valid data relating to gender reassignment is unavailable.

However, there is no reason to assume there is a particular issue in this area.

Marriage or Civil Partnership

Statistically valid data relating to marriage or civil partnership is unavailable.

However, there is no reason to assume there is a particular issue in this area.

Socio-economic disadvantage: any people experiencing poverty

The owners/operators of the snowsports centres were direct beneficiaries of the funds and as such unlikely to experience poverty.

Employees of the snowsports centres were placed on the Job Retention Scheme and so unlikely to experience poverty as a result of this fund.

A number of snowsports centres run school engagement programmes some of which will draw on catchment areas that may be identified as low in the Scottish Index of Multiple Deprivation. Maintaining the snowsports centres will enable these groups to continue to access skiing opportunities.

Stakeholder Engagement:

Significant engagement between Scottish Government, Snowsport Scotland and the delivery bodies for the fund (HIE and SE) took place throughout the duration of the fund and beyond.

Scottish Government regularly engaged directly with Tier 1 snowsports centres to keep them fully informed of any changes arising to the regulations and developments in policy and support funds. Engagement with Tier 2 snowsports centres and ski schools was indirect through Snowsport Scotland.

Mitigations -

Worked with the sector to develop guidance to aid operational adjustments to help mitigate disease spread.

Regular discussion and review of feedback from industry and delivery bodies regarding financial need and based on this updated criteria for second fund to include ski schools

Independent verification of financial impacts of COVID-19 on the sector by University Glasgow .

Next Steps (if any)

4 Harms workshop held in August 2021 to support the sector ahead of winter 2021 and ensure any further operational adjustments are put in place in a timely way to mitigate disease spread.

Strategic evidence gathering ongoing to determine the value of the snowsports sector and its supply chain to Scotland (£70,000 Contract Research Fund project).

Development of a Snowsport Strategy - collaboratively with the industry and Scottish Government - to enable a sustainable and resilient snowsports sector. An EQIA will be completed as part of this.

Declaration and Publication

I have read the Equality Impact Assessment and I am satisfied that it represents a fair and reasonable view of the expected equality impact of the measures implemented.

Signed: Philip Raines, Head of Rural Economy and Communities Division

Date: 16 November 2021