Coigeach Community Company Ltd

PROPOSAL for COIGACH COMMUNITY COMPANY LTD

Steve Westbrook, Economist, December 2004

1. Introduction
This proposal has been prepared for Coigach Community Company Ltd, which was established to register the community’s interest in purchasing Drumrunie Estate through the provisions of the Land Reform Scotland Act.

2. Study Team
In conjunction with my colleague, accountant Graeme Scott, we have assembled a team to tender for this study with a strong track record in previous community acquisitions, combining knowledge of estate economics and finance, corporate structures and tax planning, and appraisal of potential development projects, with knowledge of crofting and environmental issues.
In particular, Graeme Scott and I produced the Business Plan for the purchase of the North Lochinver Estate by the Assynt Crofters in 1993, and we have since maintained an interest in the area through a number of other studies and Graeme’s role as an accountant to the Assynt Crofters. In 2002, Graeme, Duncan Bryden and I produced a Feasibility Study for the community purchase of North Harris Estate – a complex exercise that involved exploring a number of options and finding a successful formula to combine community ownership of the estate with private ownership of Amhuinnsuidhe Castle.

Our core team would be:
Steve Westbrook, Economist, Nairn
Graeme Scott, Chartered Accountant, Inverness
Duncan Bryden, Consultant specialising in rural development and the environment, Tomatin
Atholl Newlands, Bowlts. Estate Management Specialist, with specific expertise in managing fishing, shooting and forestry interests, Elgin

We would be assisted in organising the community consultation and analysing the findings from this by Assynt Research and Consultancy, although our consultancy team would personally attend the proposed drop-in day (see 6 below), carry out the key contact interviews, and liaise throughout the study with the Community Company’s nominated representatives.

Background
A public meeting was held in Achiltibuie on the 13th of September 2004, at which the possibility of declaring a community interest in a buy out of the Drumrunie Forest Estate was discussed. As a result of those discussions, a steering group was established to progress the matter further.
The steering group held a postal ballot of all of the members of the Coigach community listed on the current Edited Electoral Roll, and 54% (fifty-four) of the members who were balloted returned signed forms in favour.
A postal ballot of the members of the wider community which includes Elphin, Knockan, Badnaban, Strathcanaird and Strathan is currently being conducted. Elphin lies within Assynt parish and is thus also included in the area covered by the Assynt Foundation, which has also registered an interest in purchasing Drumrunie Estate, as well as the adjacent Glencanisp Estate.

The Coigach Community Company seeks to further the sustainable development of the land assets in line with its objectives, which as detailed in its Memorandum and Articles are:
To conserve and manage, for the public benefit, community land and related assets in Coigach and Drumrunie, in Wester Ross as an important part of the protection and sustainable development of Scotland’s natural environment.
To conserve and regenerate the Drumrunie Forest area for the benefit of the community and wider public.
To foster, plan and encourage measures that will be of educational, environmental, cultural, social or recreational benefit to the community and wider public.
To achieve re-declaration of NNR for Drumrunie Forest.

The Coigach Community wishes to be in a position to help the Scottish Executive deliver its rural development policies, i.e:
Stabilising the population and reversing the depopulation of the area, through creating career opportunities for young people.
Identifying and providing sites for affordable housing at Drumrunie junction, within the Ullapool catchment area.
Conservation of the natural heritage.
Creation and enhancement of local employment opportunities.
Involving local people in working for the local community.

4)Study Objectives
As specified in the brief, the study would include:
(i) Analysis of the current income and expenditure pattern of the estate, as much as the available information will allow.
(ii) Analysis of estate viability against a range of development options.
(iii) In consultation with the community, collating and assessing ideas for development opportunities that could arise if the estate were in community ownership. These could involve sporting, environmental, business, renewable energy and tourism activities, together with provision of infrastructure, including land for other economic activities and housing and working with other existing local organisations, businesses and potential partners. An assessment of each area should be included, with priority given to the three areas considered as having the highest potential for development. More detailed business planning should be provided for the three development areas of highest potential.
(iv) Preparation of annual income and expenditure projections, bearing in mind development opportunities.
(v) An analysis of options for raising funds.
(vi) An assessment of the economic impact of selected options, both at a community level and North West Scotland level.

Our report will suggest methods of realising estate assets to cover the 6.25% community investment / funding requirement. The bottom line is to report to the community any long term benefits or liabilities that would result from a community buy out.

The study will investigate opportunities that have already been identified, including:
New croft creation.
Identification of available land for affordable housing in Wester Ross.
Job creation.
Community transport: Ullapool - Achitibuie - Lochinver - Elphin - Ullapool.
Land based entrepreneurial activities.
Supported outdoor pursuits.
Tourism, including eco-tourism.
Supported trout fishing.
Environmental management to enhance the biodiversity and natural regeneration of the native woodlands through management agreements with the relevant government agencies.
Deer management and stalking activities.
Community-based renewable energy development.

Also, the items included in the Annex to the study brief and other opportunities put forward through the consultation stage will be explored to initial feasibility stage. Certain potential projects, however, could require detailed feasibility analysis and business planning that would most appropriately be left until after estate purchase. In any such cases, our study report would specify the terms of reference for any future feasibility analysis.

5). Study Outcomes
As specified in the brief, our report would provide:
An opinion on the medium to long term viability of the existing estate activities.
An opinion on the potential to improve the existing estate activities.
A detailed account of the development opportunities assessed, with in-depth proposals on developing new enterprises / activities.
Detailed consideration to the three areas considered as having highest development potential, including initial viability analysis and business planning.
A series of options on running the estate.
A recommendation on the preferred option for community ownership and management of the estate.
Sufficient qualitative and quantitative information to provide the basis for the development of a 5 year Whole Estate development plan.

A draft report would be produced for consideration by the Community Company and the community as a whole prior to completion of the final report.

6. Methodology
The study will involve both desk and field research, and our core team will take advice from other specialists as appropriate. There is considerable overlap between the research required for this study and that which we are currently carrying out for the Assynt Foundation, but we will ensure, through regular liaison with nominated members of the Community Company, that the perspectives of the Coigach community and the inland settlements that are part of the wider community covered by this feasibility study are kept to the fore.

The details of the community consultation to be carried out as an important part of the study will be agreed at the inception meeting, but we suggest that the following should be included:
A short questionnaire posted to all people on the current edited electoral role inviting views and ideas across the range of relevant topics and estate management options.
A drop-in day (afternoon and evening), possibly including pre-scheduled sessions at which people with an interest in a particular theme could have an informal discussion, with notes taken by a member of our consultancy team. This should be held in the first week of January, and young people (who will be on holiday from school) should be encouraged to attend.
A press release to the local media, promoting the drop-in day and inviting anybody not in receipt of a questionnaire to complete one at the drop-in day.
Scope for co-operation with the Assynt Foundation, in ownership and / or management of the Estate (possibly in conjunction with Glencanisp), would be explored.

Specific aspects that will be covered in our study will include the following:
Environment
We will conduct a desk based appraisal of the natural environment to consider policies, status and trends and the implications and opportunities of community ownership in relation to:
Soils and geology
Water
Landscapes
Biodiversity and ecology

In particular we will consider the implications of natural heritage designations which occur over much of the estate land, including:
SSSI - Inverpolly is of mixed biological and geological interest.
Natura cSAC - Inverpolly SAC has six habitat and one species of European significance and the primary reasons for candidate SAC selection.
Natura SPA - Lochs in the area hold a significant proportion of the UK Black Throated Diver breeding population, the primary reason for SPA selection.
NSA - The estate is part of the Assynt - Coigach NSA.

Environmental management schemes, including Natural Care, are designed to improve the environmental management of SSSIs and Natura sites and financially support the positive contributions made by landowners. We will explore the implications of these schemes and, if appropriate, recommend future possible natural heritage management arrangements for the estates, which could capture income for a community body.

The Inverpolly area, including part of the estate, has recently been de-designated as a National Nature Reserve by SNH due to difficulties over agreement on the 'primacy of nature' condition which National Nature Reserves are obliged to meet. We would wish to explore with the community and SNH, if advantageous to the community, whether this decision could be reconsidered given new arrangements.

We will also consider the likely impacts on the environment of other potential development opportunities.

Renewable Energy

Using published sources, local experience and advice from public sector agencies, including the Community Energy Unit and Highland Council, we will outline the options concerning renewable energy that could be available to a community body. Community groups in Eigg and Knoydart are amongst those that we have worked with who are developing renewable energy schemes.

We consider that the likely opportunities for energy generation and supply chain benefits lie in ‘small/community’ scale, wind, hydro and biomass schemes; other technologies being insufficiently developed at present to offer a realistic return. Commercial scale opportunities are for the most part currently constrained by grid connections and concerns over landscape and environmental impacts.

There are also opportunities at a domestic scale for housing and other properties to adopt sustainable technologies in design and construction and utilise mechanisms such as heat pumps and photovoltaic systems.

Sporting

Drumrunie is marketed as having returned an annual average over the last ten years of 15 stags and 38 hinds. However, deer are rarely confined to one area, and these figures should be seen in the context of an agreed cull for a wider area. Sporting opportunities and associated realistic income projections will be proposed following community consultation on possible objectives for a Deer Management Plan. Liaison with local experts and deer managers should provide essential background experience to allow the community to consider a range of deer management objectives.

Deer Management Plans set out to place deer management in the context of other land uses, neighbouring interests and statutory responsibilities. Deer Management Groups promote consensus of the shared deer resource, including cull targets, habitat assessments, and grazing and trampling impacts based on the principle of sustainable resource use. Income generation from land management agreements , involving deer control will have to be balanced against any impacts on the possible income from stalking and venison sales.

We will also review the status of existing extraction methods, carcass handling and larder facilities.

Fisheries are specified as brown trout fishing, and we will consult with local angling interests and specialists. The Fisheries Trust can provide advice on the potential for habitat and stock improvement.

Tourism and Recreation - Sporting Lets and Eco Tourism
The area has attractions for a variety of visitors, including specialist groups such as shooting parties, anglers, hill walkers and bird watchers. They come as independent visitors and in organised groups. We will review market research relating to accommodation provision, field sports, adventure and eco tourism in a local and Highland context. The 2002/03 Highland Visitor Survey gives the best visitor profile, and local market research sources will be sought and analysed.

Development of Sustainable Private Businesses
We will consider the scope for establishing private business that will deliver clear benefits to the community body and the economy of the surrounding area. We will consider experience from other similar areas.

Brand Development
There is a significant body of research available on the subject of brand development. Branded food and drink products from local areas require a very strong profile to attract a premium price, but we will explore the opportunities. The new Geopark status offers a potential hook.

Land Management
We will identify any existing grazing leases. We will also establish what potential might exist for other land management opportunities, especially in relation to the Rural Stewardship Scheme, which includes capital and annual payments for management options, including, for example, moorland, wetlands and bracken covered areas.

Woodland Management
The North Highland Forest Trust and the Culag Community Woodland Trust have considerable experience in enhancing woodland in the north west. The CCWT already has over 1200ha under management, employs two part time project officers and has bought wood milling equipment. We would seek local advice from them and the Forestry Commission Rural Development Advisor. The Scottish Forestry Grant Scheme provides financial assistance for proposals that:
establish well designed productive woodland
expand the area of native woodland
improve riparian habitat
improve the diversity of farmed landscapes

We will consider any opportunities for using the SFGS to improve existing and establishing new woodland on the estates, in balance with community interests, and in doing so establish possible income streams and any local or regional employment potential.

Archaeological and Other Material and Cultural Assets
We will identify the tourism, recreational and educational opportunities presented by the heritage resource. The study will also consider the implications of any criteria such as listing which might have a financial influence on a community body owning the resource.

Minerals
Subject to establishing the status of mineral rights and Local Plan policies we will identify any opportunities for mineral extraction.

Wider Stakeholder Involvement
We plan full discussion with public bodies, in particular Scottish Natural Heritage at local and regional level. Highland Council planners will be contacted for detailed discussion on possible infrastructural developments. Further contact may be made with neighbours, non-government organisations and special interest groups following discussions with the community.
Potential funding support will be discussed with the Scottish Land Fund, Ross and Cromarty Enterprise and other organisations / sources.

7. Project Team Experience and Personnel

The team proposed for this study has considerable experience in:
Community buyouts and on-going support of community led initiatives in the Highlands
Estate, biodiversity and land management
Economic and statistical analysis
Preparing feasibility studies and business plans for prospective community land trusts
Producing studies on diversification opportunities for crofting and other fragile areas
Drawing up and evaluating rural development programmes, including major EU Programmes for the Highlands and Islands
Animating grassroots community development

Core Team CVs:
Graeme Scott is an Inverness-based chartered accountant who has specialised since the Assynt Crofters buy-out in advising community groups, producing financial projections for their Business Plans, and producing annual accounts for community trusts and subsidiaries. Graeme has been self-employed since 1996, and has worked with Steve Westbrook on many feasibility studies and Business Plans. Prior to self-employment, Graeme was a partner with Angus Mackenzie & Co, Chartered Accountants (who specialise in estate management), and between 1981 and 1986 he was an investment manager with the Highlands and Islands Development Board.
Steve Westbrook holds a BA in Economics from Cambridge University, and has lived and worked in the Highlands for more than twenty years. Before becoming an independent economist in 1992, he worked as an economist for the Highlands and Islands Development Board for ten years and was a consultant for Mackay Consultants for three years. Steve has been involved in surveys and studies across a wide range of economic and social issues, and specialises in policy analysis, community initiatives, impact assessments and feasibility studies.

Steve and Graeme have been at the forefront of the movement towards ownership of land by crofters and other rural communities in the Highlands and Islands through producing business plans that demonstrate sustainability and development opportunities to both local communities and funders. Business plans produced for successful land purchases include Assynt Crofters, Kylesku Crofters, Isle of Eigg Heritage Trust, Knoydart Foundation, and North Harris Trust.

Steve was director for INC’s consultancy for HIE’s Community Land Unit on the Promotion of Community Land Ownership, gave a workshop for representatives of Community Land Trusts on Whole Estate Plans in November 2001, and is currently leading a team assisting Assynt Crofters, Kylesku Crofters and Fernaig Community Trust to produce Whole Estate Plans. With Brian Burns, Steve produced a Monitoring and Evaluation Framework for Community Land Initiatives for the Community Land Unit which entailed detailed economic and demographic analysis of a number of case study areas. Steve was also director of an INC study into the feasibility of establishing a Pan Highland Crofting Land Trust, which included an analysis of all of the SOAFD Estates.

Duncan Bryden holds a BSc Hons in Land & Fisheries Management from Edinburgh University (1982) and an MSc in Heritage Management Birmingham University (1992).He has been a Chartered Biologist - Institute of Biology since 1988
Duncan has had over 20 years experience in practical site management, policy development and facilitation, with a particular specialism in visitor management and the environment. Recent experience in community buyouts includes the North Harris Estate and the neighbouring Loch Seaforth Estate in addition to smaller sites in Lochaber and in his own home community. In a previous role, he was a Director of the Isle of Eigg Heritage Trust and had responsibility for Ben Mor Coigach Estate, on the southern boundary of Drumrunie and is familiar with the area and the issues it faces. A keen walker, he has climbed the main hills on both the estates. He is a Ministerial appointment to the Board of the Cairngorms National Park and is member of the FCS Highland Advisory Panel.

Previously, as Regional Director North for the Scottish Wildlife Trust, Duncan led a team managing over 10,000ha, comprising 22 properties. Prior to that post Duncan was seconded from Highlands and Islands Enterprise to lead the Scottish Tourism and Environment Forum and pioneered the inclusion of ‘green and sustainable tourism’ into national and local tourism strategies. He has held other senior posts in the Highland and Islands Enterprise Network, including Head of Planning and Research with Ross and Cromarty Enterprise and was Visitor Services Manager with a top private Highland estate near Aviemore.

Atholl Newlands (Bowlts)
Bowlts Chartered Surveyors was set up by Ken Bowlt in May 1991 following an 11 year spell with a national firm of land agents.
Since commencing as a sole practitioner, the firm has expanded successfully over the first thirteen years and now employs a total of 21 people. In summary, these are three fully qualified rural practice chartered surveyors, two trainee rural practice chartered surveyors, four foresters, one fully qualified chartered building surveyor, two building/drawing office technicians, two accounts clerks/book-keepers, one accounts assistant, five secretaries and one admin assistant. The main office is located at Pluscarden, some six miles from Elgin, whilst the forestry team plus secretary have a separate office on the eastern edge of Inverness which is also used by surveying staff when working in that area. From both these bases, we are now involved in the management of estates, forestry and a wide range of other property matters throughout the Highlands and Islands and Grampian regions of Scotland, together with an ever-increasing workload further to the south.

Bowlts offer clients the following services:
Policy and Liaison
Estate Records and Notices
Accounting (Full Service)
General Management
Property Insurances
Property Lettings
Forestry - Native Woodlands and Commercial Woodland Management
Rights, Wayleaves and Covenants
Rating
Access
Sales and Purchases
Valuations
Planning and Development Work
Architectural, Building, Surveying and Mapping Services
Environmental and Conservation
Telecommunication and Wind Farm Negotiations
Sporting and Leisure

Atholl D Newlands, BLE (Hons) MRICS : Bowlts Chartered Surveyors
Qualifications: BLE (Honours) Bachelor of Land Economy, Aberdeen University 1994, ARICS 1998
Employment History:
1995 - Present Bowlts, Chartered Surveyors
1994 - 1995 Langley Taylor, Chartered Surveyors, Logie Estate Office, Forres
1988 - 1990 R Newlands, Cluny Farm, Forres

8. Budget

Our fees and expenses for the study would total £4,000 (plus VAT). Of this total, we have allocated approximately £1,000 (fees and expenses) for the community consultation.

Steve Westbrook would take overall responsibility for the study, and would be the main contact between the consultancy team and the Community Company.

Specialist inputs would be provided by other team members, or by other associates with whom we have established working relationships if additional expertise on a particular subject is required. The consultancy team would provide at least eight days with (as previously noted) community consultation support from ARC (led by Issie MacPhail).

9. Timescale

As specified in the brief the draft report would be completed by mid-January, immediately followed by a public meeting to present the draft findings. The final report would be produced by the end of January / early February - the precise date to be agreed.

Appendix 1: Relevant Experience

Studies that Graeme Scott and Steve Westbrook have completed which are of relevance to this proposal are listed below:
Action 35 - Baseline information on crofting; future scenarios for crofting; and survey of active and inactive crofters - all relating to the Western Isles.
for Steering Group comprising HIE, SEERAD, Crofters Commission, CnES, Scottish Crofting Foundation, SNH
Pilot Whole Estate Plans (for Assynt, Kylesku and Fernaig)
for Highlands and Islands Enterprise Community Land Unit
Pan-Highland Crofting Land Trust Feasibility Study