PROPOSED TRANSFER OF CAIRNGORM ESTATE POSTPONED

28th May 2007

Plans to transfer public ownership of Cairngorm Estate from Highlands and Islands Enterprise (HIE) to Forestry Commission Scotland have been put on hold for the time being.

The 1,418 hectare estate includes one of Scotland's best known mountain plateaus and provides a spectacular setting for the Cairngorm funicular railway.

It came into the enterprise network's ownership in 1991, when HIE took over the responsibilities of the former Highlands and Islands Development Board.

In recent years, HIE has adopted a policy of land and property disposal, selling assets it no longer requires in order to fund investment in social and economic development across the Highlands and Islands.

In 2005, with no new development then planned on the mountain, HIE decided to add Cairngorm Estate to its disposals list and commissioned property firm Bidwells to examine options for future ownership. Forestry Commission Scotland quickly emerged as the prime candidate.

Discussions between the two agencies have progressed well since then and a public consultation conducted by the Commission last year showed widespread public support for the proposed transfer.

One particular challenge, however, has been the question of the landowner's future liability for the ski area operated by CairnGorm Mountain Limited (CML).

Although the funicular has established itself as a popular year-round visitor attraction in the UK's largest national park, poor Scottish skiing seasons in the past five years have had an adverse effect on the operator's performance.

In addition, CML are developing ideas for a new project, which would almost certainly require further investment by the enterprise network.

HIE has therefore decided to retain its ownership of the estate for the present time and has agreed with the Commission to suspend discussions around a possible transfer.

Keith Bryers, HIE head of property and infrastructure said: "This is a question of timing. Our discussions with Forestry Commission Scotland have been positive and productive and it remains HIE's intention to seek to transfer ownership of Cairngorm Estate at a future date.

"Our priority at present, however, must be to work with the funicular operating company to establish a business which is sustainable in the long term and will not present uncertainties to a future landlord.

"The process which we have gone through with Forestry Commission Scotland has laid valuable groundwork to ensure that, when the time is right, HIE will be able to relinquish its ownership as smoothly as possible."


Hugh Insley, Forestry Commission Scotland, said: "This has been a lengthy process that has consistently highlighted the complex and sensitive nature regarding the management of this iconic area of land. HIE, as landowners have decided they need to postpone proceedings and we respect this decision.

"As neighbours at Glenmore, we look forward to continuing discussions with HIE when the time is right. When such discussions take place, we will ensure that the diverse interests and needs of all neighbouring land managers and especially the local Strathspey community, continue to play an integral part of the process in determining the future ownership of the estate."