HIE Approves Funding for Biggest Community Land Sale In History

15th November 2006

HIGHLANDS and Islands Enterprise (HIE) today agreed to contribute £2million to the purchase of 92,000acre South Uist Estate by its residents - the biggest community land purchase in Scottish history.

The decision secures a £2million contribution to the £4.5million purchase approved by the BIG Lottery Fund's Growing Community Assets Fund last week.

Willy Roe, chairman of HIE said: "I am delighted that our board of directors has agreed to this ambitious application for assistance. South Uist, Benbecula and Eriskay have seen their populations decline in recent years but HIE is convinced that under the control of dynamic community ownership, these islands will now be able to set out on a path to fulfil their potential."

Meetings were first held on South Uist to consider launching a bid to buy the estate in
2003. A ballot by the local population two years later provided convincing support to pursue a purchase and earlier this year an offer of £4.5m by island group Sealladh na Beinne Moire (SnBM) was accepted by the consortium which has owned the sporting and crofting estate for 45 years.

HIE's community land unit has worked closely with SnBM to formulate plans for the islands' economic regeneration which include proposals for the use of Grogarry lodge, together with fishing and shooting opportunities. SnBM has also been working with the Highlands and Islands Community Energy Company on a plan to install grid connected wind turbines which will provide income from electricity sales. The redevelopment of the Tom Morris-designed Askernish Golf Course and the prospect of land release for
regeneration of Lochboisdale harbour area and new accommodation developments also present opportunities to accelerate the islands' prosperity. SnBM will also lead a partnership approach to address integrated land drainage and coastal protection issues which will secure and enhance the celebrated machair area for both human use and its
biodiversity.

Nicol Stephen, Deputy First Minister and Minister for Enterprise welcomed HIE's funding announcement. He said: "The board's decision to support the islanders' ambitious bid to secure community ownership and take responsibility for the long term future of their islands is a very positive development.

"This is an enormous challenge but I am certain the communities have the determination to take forward their plans and build a sustainable future for generations to come.
"This is another example of how the Executive's land reform policy is benefiting remote communities and helping to create new opportunities."

In order to ensure value for the public investment, HIE appointed a team led by Scott Moncrieff (accountants) including lawyers from Gillespie MacAndrew to advise directors on taxation issues, purchase procedures and to understand the drainage and coastal protection liabilities that come with ownership.

The £2,079,953 contribution to the purchase by HIE is broken down into £1,962,000 - a 43per cent share of the total purchase price, and £117,953 - a 25 per cent contribution to funding the posts of development manger, development officer and general manager over the next five years.

Angus Macmillan, Chairman of Sealladh na Beinne Moire said: "We welcome the announcement from HIE of agreeing to contribute £2million for the purchase the South Uist Estate. We have worked very closely with HIE and the Community Land Unit in this project for the last three and a half years and we very much appreciate the work that they have contributed. We now must continue our efforts in our fundraising appeal and look forward to any donations from not only the islands and Scotland but also worldwide.

"We believe that the community ownership of South Uist, Benbecula, and Eriskay presents us with a unique opportunity to develop appropriately the resources that we have. Over the years to come, we will seek to determine the sustainable economic regeneration of these islands, using every means at our disposal. Through this we hope to reverse decline and depopulation and to reduce dependency. We, who more than anyone else know the value of the environment, the history, and the culture that we have, wish to create a community which is confident in its future and which determines the direction of its own development."

Andrew Anderson, head of HIE's community land unit said: "This is the biggest investment that HIE has made in assisting a community to take control of its future. At the heart of our support is the long-term and strategic objective of stemming and then reversing population decline. This bid by SnBM brings a huge boost to local morale and HIE is pleased to be able to support its endeavours with this significant contribution and will continue to assist islanders in the challenges that lie ahead."

Scottish Natural Heritage (SNH) and local authority Comhairle nan Eilean Siar are considering applications to contribute to the islanders own fundraising for the remaining £500,000 of total bid sum.

The population of the land owned by South Uist Estates currently totals 2900. South Uist and Eriskay showed a population decline of 15 per cent between 1981 and 2001 and Benbecula decreased by 31 per cent, as against a rise in the Highland area of 3.5 per cent during the same period.