That's according to a report from Audit Scotland, covering the period up to March, 2004, and detailing performances of all 32 Scottish councils since 2001.

However, the council improved in 11 areas, such as sickness absence, pre-school provision and special educational needs since 2000-2001.

The 56th Stromness Shopping Week drew to a close on Saturday night with the traditional open dance at the Stromness pierhead.

A fireworks display from Copland's Dock to mark the official end of the week long event began at 11pm.

The Eday show took place on Saturday with a range of horticultural competitions plus arts, crafts and live music this year.

There was also a dance in the evening with live music from Shogun.

A television programme recreating the sinking of the Second World War battleship, Royal Oak, was broadcast on Grampian TV on Friday night.

Using computer animation, dramatic reconstruction, expert and eyewitness accounts, the series built a compelling picture of how the attack took place in October, 1939.

Tragically, the programme claimed that delays in the rescue operation cost the lives of seamen who survived the U-boat attack.

The programme also highlighted failings within the British military meant the defences at Scapa Flow, which were supposed to be impregnable, had been neglected and left the British fleet vulnerable.

Police have confirmed that officers from Merseyside have carried out an extensive search of a property in Eday.

The visiting officers searched South Park, the property bought by David McHugh in 2000, on Wednesday. McHugh was arrested and charged with fraud offences in 2001. He was sentenced earlier this year.

Inspector David Miller said: "Officers from Merseyside police travelled to Orkney to carry out ongoing inquiries. They were assisted by officers from Northern Constabulary".

The Town House will now house a range of OIC services, including the community mental health team, integrated community schools and "hot desks" for staff who may be called to work in Stromness. The Chamber, which will now provide meeting facilities for the community council, has also had a facelift.

Orkney Islands Council held the open afternoon as part of the town's annual Shopping Week festivities.

Historical attractions and gift shops have seen visitor numbers rise way above average since the beginning of the 2004 summer season.

It is believed many British holidaymakers are choosing to stay in the UK for their summer break because of terrorist activities abroad. This has resulted in more visitors than usual deciding to head North for their holiday.

Drug crime is rising in Orkney, but in Shetland, which has a more serious problem with "hardcore drugs" has seen a 16 per cent drop.

The Scottish Executive has revealed an increase in all offences relating to dealing and possession of drugs across much of Scotland - but the problem seems to be getting worse outside the cities.

In 1999 there were 58 cases in Orkney, a figure which rose to 64 in 2003 - a 10.3 per cent rise.

A conman posing as a war hero claiming he was trying to raise cash for a children's charity has been exposed.

Grahem Eckerman preyed on the goodwill of residents when he visited last month, claiming to serve with 42 Commando, Royal Marines, and that he was trying to raise £20,000 to send a friend's son to the USA for a dream holiday.

But a Royal Marine spokesman has confirmed the 23-year-old, who is believed to be from Sunderland, England, has never been in the unit and the Make-A-Wish Foundation have no records of him.

The responses will be considered before the final service specification is drawn up, a spokeswoman from the Executive said.

“We are in the process of assessing the expressions of interest,” she added.

Residents gathered at the island’s community centre to discuss proposals for future projects.

The island was granted Initiative at the Edge Status, along with Eday, in April this year. This allows communities to drive their own projects and can help in securing funding.

A celebrity auction is one of the events planned to raise money for the proposed Orkney Boat Museum.

On Tuesday night the committee of the Friends of the museum agreed that the auction and a sponsored walk would be on the fundraising programme. The Friends will also be at the Dounby show to drum up some more support.

Friends chairman Mick Bain said the meeting was upbeat despite the Hall of Clestrain failing to win the public vote on the BBC's Restoration programme.

A number of reports have been received of bogus callers offering substandard or non-existent goods and services, often targeting the elderly who can be vulnerable to persistent doorstep callers.

The goods and services offered recently include; furniture, carpets, hand tools, road tarring, gardening, roof and window repair, prices quoted for work usually well in excess of the legitimate cost normally charged.

According to Trust manager, Donald Allan, the increase was the first since April 1998 - since when the Trust had spent £3,000 on car park maintenance and £8,000 on demolition to provide more parking.

Mr Wallace responded: "I am not convinced that, after the Scrabster Harbour Trust has received such very substantial sums of public money to build the new terminal for the lifeline ferry service to Orkney, passengers using the ferry should face such high parking charges."

A documentary charting the rise and fall of the oil industry in Orkney - but from the perspective of an apocalyptic future in which the county is deserted - was broadcast on Tuesday night.

Described as "part document of the past, part imagination of the future", Crude Progress mimicked a folk tale warning against the seduction of capitalism and the illusion of progress.

Director James Alcock said: "The vision of what could happen in the Orkney Islands is really just an example of a problem that Britain and much of the western world now faces.

Two motorists were transferred to Kirkwall's Balfour Hospital yesterday after a two vehicle road accident on the main Kirkwall to Stromness road.

The collision between a black Peugeot 206 and a black Citroen ZX took place at the Harray road junction at 4.20pm on Monday. Both cars were extensively damaged.

The drivers, a 37-year-old man and an 17-year-old woman, were treated for injuries. The man is understood to have been detained in Balfour Hospital. Police inquiries are continuing.

The authority wants to know what information should be on the site and what would encourage more people to make use of it.

Chief Executive Alistair Buchan said: "We already know from talking to customers that people want a website that is easy to get around and gives important information such as transport timetables and changes, school closures in bad weather and full details of local activities and events. This is what we are aiming for and I would urge residents to let us know what their priorities are for the council website to help us do the job."

Comments and suggestions can be emailed to Lynette Webb.

A Stromness man appeared in private at Kirkwall Sheriff Court this afternoon on a charge of serious sexual assault.

Robert Stanger, 36, of Pumpwell Park, Stromness, appeared from custody, made no plea or declaration and was committed for further examination.

Stanger was released on bail with the special condition that he leave Orkney.

Among the grants was £18,000 to the Royal Society for the Protection of Birds (RSPB) to help fund the employment of the Hoy countryside ranger, the Orkney field teacher, and an officer for the Corncrake Initiative.

SNH northern isles area manager, John Uttley, said "Orkney's natural heritage is a tremendous asset for people and important in its own right. Helping to fund local community projects will hopefully encourage more people to take an active interest in this asset."

Shopping Week Queen Laura Wilson (centre), with her attendants Serena Harcus (left) and Alison Russell (right).

The sun shone on the opening of the 56th annual Stromness Shopping Week on Monday morning.

This year's event was opened by George Kirkpatrick, of wholesalers James Wilson.

The opening ceremony was followed by the crowning of Shopping Week Queen, Laura Wilson, by last year's queen Briony Hourston.

The Hall of Clestrain open day on Sunday was tinged with sadness, as the organisers broke the news that the Hall had not won the Scottish heat of the Restoration competition.

The result was officially broadcast on BBC2 on Sunday night, where other supporters heard that the successful property was the Knockando mill.

But despite the setback, supporters have vowed to see the Orkney Boat Museum constructed, with the renovated Hall taking its place in the finished site.

Special guest at the open day, Restoration's Marianne Suhr, said she would return for the opening.

Click here for the official Orkney Boat Museum website

Police are seeking information after a road accident in Kirkwall in the early hours of Sunday morning.

The red Mazda estate struck a telegraph pole near the Co-op supermarket on Pickaquoy Road. Kirkwall police inspector David Miller said that the driver had left the scene prior to the police arriving.

Anyone with information should call 872241.

A kayaker circumnavigating Britain arrived in Orkney on Friday after crossing the Pentland Firth.

Sean Morley, who is circumnavigating the British Isles in a kayak, has been paddling since Easter. He left Scrabster, travelling to Stromness via Hoy.

He made his way to North Ronaldsay on Saturday, before setting off for the Fair Isle on Sunday.

Visiting Scottish third-division side Cowdenbeath returned home with two victories under their belts.

The visitors beat Accies 7-0 on Friday night, before notching up a 9-1 victory over the Orkney county side on Saturday afternoon.

Saturday's game saw former St Magnus Cathedral minister, Ron Ferguson, an ardent supporter of Cowdenbeath, take to the field in the last fifteen minutes of the game.

Although the number of boats taking part in this year’s Orkney Challenge race are down, light winds and some sunshine made for a good competition at the weekend.

Krak Alt was first in Class 1, Old Flame took first in Class 2 and Shoe String snapped first place in third Class 3.

Peter Sinclair, skipper of Krak Alt said: “I am absolutely delighted because I defended my title successfully as I won the race last year as well.”

The racers are set to stay in Orkney for another week taking part in the Scargun Quaich Race in Kirkwall Bay tonight.

A £6 million upgrade of a stretch of the A9 trunk road in the Highlands looks set to improves access to and from the ferry terminals serving Orkney.

Work on the first phase, between Helmsdale and the Ord of Caithness, will begin next month and according to Scotland's transport minister will improve safety and journey times.

Nicol Stephen added: “Work to upgrade this strategic route linking Caithness with the rest of Scotland will benefit the local economy, business and tourism.”