COMMUNITY PURCHASE OF DRUMRUNIE ESTATE

1.0 INTRODUCTION

1.1 The Opportunity

This feasibility study was commissioned by the Coigeach Community Company Ltd (CCC) to investigate the opportunities and viability of community purchase of the Drumrunie Forest Estate in Wester Ross. The Estate was put on the market by the Vestey family through agents CKD Galbraith, together with the neighbouring Glencanisp Estate to the north, and the community reacted by submitting an application to register their interest under Part 2 of the Land Reform (Scotland) Act 2003. Registration was accepted by Scottish Parliament Ministers, and CCC has now progressed to the stage of balloting the community on the purchase – informed by this feasibility study.

Drumrunie (Lot 2 in the sales brochure) comprises Drumrunie Estate and one estate house, Keeper’s Cottage in Elphin, which is occupied on a service tenancy by the Drumrunie keeper.

Almost all of the estate land is covered by natural heritage designations, but the estate has not been managed by the current owner in a way that fully respects the responsibilities of these designations.

Together with Glencanisp. Drumrunie is used predominantly for the sporting interest of the owning family and their paying guests, with Glencanisp Lodge as the accommodation base.

This study examines the scope, under community ownership, for the estate to generate enhanced economic, social and environmental benefits, both for the local community and for the public – in particular, visitors to the area.

1.2 The Community’s Response to the Opportunity

A public meeting was held in Achiltibuie on the 13^th 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 Coigeach community listed on the current Edited Electoral Roll, and 54% (fifty-four) of the members who were balloted returned signed forms in favour.

The members of the wider community, which includes Elphin, Knockan, Badnaban, Strathcanaird and Strathan, were balloted by post subsequently. Elphin lies within Assynt parish and is thus also included in the area covered by the Assynt Foundation. (see below).

As set out in its Memorandum of Association, CCC’s objects are:

· To conserve and regenerate the Coigeach and Drumrunie Forest area for the benefit of the Coigeach Community (as defined by specific postcode areas) and the wider public.

· To foster, plan and encourage measures that will be of educational, environmental, cultural, social or recreational benefit to the Coigeach Community and the wider public.

· To advance the education of the people of Coigeach and the wider public in the sustainable development of the Coigeach and Drumrunie Forest area.

To further these objects, CCC has a wide range of powers, including the ability to buy land and other property and to borrow money.

CCC is a company limited by guarantee without share capital under the Companies Acts, and its purposes are charitable.

In addition to the above objects, the terms of reference for this study included the intention to achieve re-declaration of NNR (i.e. National Nature Reserve) status for Drumrunie Forest.

As set out in the brief for this study, the Coigeach Community wishes to be in a position to help the Scottish Executive deliver its rural development policies through:

· 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.

· Conserving the natural heritage.

· Creating and enhancing local employment opportunities.

· Involving local people in working for the local community.

The formal community consultation process that has been an important part of this feasibility study is summarised at 1.6 below, and the main points from this are discussed in Section 3. In addition, the consultancy team have spoken to individuals in the community with knowledge of the estate and its development potential.

1.3 The Study Team

Our team for the study has comprised:

Graeme Scott, chartered accountant

Steve Westbrook, economist

Duncan Bryden, rural development and conservation specialist

Atholl Newlands (Bowlts), estate management specialist

1.4 Terms of Reference for the Study

As specified in the brief, this study has included:

(i) Analysis of the current income and expenditure pattern of the estate (which has been limited by the availability of information from the estate).

(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. It was envisaged that these might 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. Each of these opportunities have been assessed, with priority given to the three considered as having the highest potential (see Section 7).

(iv) Preparation of annual income and expenditure projections, bearing in mind development opportunities (see Section 6).

(v) An analysis of options for raising funds (see Section 5).

(vi) An assessment of the economic impact of the selected options, both at a community and North West Scotland level (see Section 8).

Opportunities that had already been identified by the Steering Group were investigated, 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.

The Assynt Foundation, which covers the parish of Assynt, has also registered an interest in purchasing Drumrunie, in addition to Glencanisp Estate (including Glencanisp Lodge). Should CCC, rather than Assynt Foundation, be given preference by Ministers in acquiring Drumrunie through the community right to buy, it is considered likely that the Assynt Foundation will be given the right to buy Glencanisp (provided that the community vote in favour of purchase). If so, and if both purchases obtain sufficient funding to proceed, there will be opportunities for collaboration – both in estate management and economic development – between the two communities. Such a working partnership is taken into account in this feasibility study, although co-operation should also be possible if Glencanisp is purchased by another party.

It should be noted that it has not been possible within the time and budgetary constraints of this feasibility study to test rigorously the fundability and operational viability of all of the potential development projects. These would require individual feasibility analysis subsequent to estate purchase; a process which would include the community and other partners making decisions about the precise way that the projects would be developed and taken forward.

1.5 Methodology

Our work for this feasibility study has included:

· Desk and field research on the development opportunities potentially available to the community following acquisition, together with a review of the constraints – most importantly those associated with the area’s conservation designations.

· A formal programme of consultation with the community.

· Preparation of material, and attendance at a drop-in day, with question and answer session, in Achiltibuie on 8 January 2005.

· Attendance at a public meeting in Achiltibuie on 8 February to present and discuss the findings of the study.

· Meetings and general liaison with CCC’s directors.

· Liaising with the Scottish Land Fund (SLF) and Highlands and Islands Enterprise’s Community Land Unit (CLU).

· Assisting CCC in its written representation to the District Valuer, who was instructed by the Scottish Executive as independent valuer to report on the value of the estate.

· Assessing the financial and other support potentially available to the community for the purchase of the estate, development projects and conservation agreements.

· Liaison with relevant public agencies, including Scottish Natural Heritage (SNH), Deer Commission for Scotland (DCS), Forestry Commission Scotland (FCS), Ross and Cromarty Enterprise (RACE), Highland Council (Planning and Development), Crofters Commission, and HIE’s Community Energy Unit.

· Liaison with the John Muir Trust as potential partners in estate purchase and / or operation.

· Discussions with the Highland Small Communities Housing Trust, Albyn Housing Society, Scottish Wildlife Trust and Highland Birchwoods.

CKD Galbraith provided us with information supplementary to that contained in the glossy sales brochure for the estates.

1.6 Programme of Consultation

There were two strands to the formal consultation programme:

Questionnaires

A questionnaire was designed to allow people to give their general views on the community purchase, suggest ideas for development, and indicate the themes or ideas that they would regard as least appropriate.

The questionnaire was sent to every household in the area covered by the registration for a potential community buy-out from a database created from the most recent roll of voters. 189 questionnaires were posted to a population of ____ people. The findings from the survey are summarised in Section 3.1.

This survey was administered and the results processed on the consultancy team’s behalf by Assynt Research and Consultancy (ARC).

The Drop-In Day

This was advertised in the material sent to people with the postal questionnaire and in the local paper.

The responses provided by attendees are summarised in Section 3.2 below.

2.0 BACKGROUND

2.1 Location

Drumrunie estate is part of the parish of Lochbroom within Ross and Cromarty. Since the latter part of the 19^th century, it has been managed in conjuction with Glencanisp; most recently as sporting beats within the larger Assynt Estate portfolio.

Drumrunie has boundaries with five other estates (see below). Common grazings associated with crofting townships abut the property, but there is no land under crofting tenure included in the sale. The path network on the estate is covered in Section 3 below.

Neighbouring Estates:

Glencanisp – Currently Private

Inverpolly – Private

Ben More Coigach – Scottish Wildlife Trust

Ledmore – Private

Langwell – Private

Within the scope of the study, we have not examined the condition of estate fencing (either boundary or internal), footpaths, etc.

2.2 The Estate and its Assets

Drumrunie and Glencanisp Estates are described in some detail by the sales particulars produced by CKD Galbraith. From these, the main Drumrunie assets (Lot 2) can be summarised as follows:

· Approx 11,900 acres, unburdened by crofting, agricultural or other tenancy rights.

· Keeper’s Cottage at Knockan. 3 Bedroom Cottage with Outbuildings and Stone built Larder.

Thought to be in good order, but could be improved through provision of central heating in the future (heating by woodburning stove and storage heaters at present).

· Deer forest and stalking for 15 stags and 38 hinds and calves (average of previous 10 years). Occasional roe and sika are shot. Marauding deer shot out of season are excluded from the figures.

· Brown Trout fishing.

· Druim Runie woodland (subject to Woodland Grant Scheme obligations).

· Natural Heritage and Environmental features.

· Possible Mineral potential.

The comments above and in Section 4 below are based upon information gleaned locally. No inspection of any of the buildings or other assets has been undertaken as part of this study nor has any separate condition survey been undertaken. The District Valuer’s report includes further (although limited) information on the Keeper’s Cottage and outbuildings.

Estate Boundaries

The map provided by the seller’s agents indicates that the boundary of the estate runs along the north shore of Loch Lurgan. We understand, however, that the boundary of the Scottish Wildlife Trust’s property extends only to the medium filium of Loch Lurgan at this point, and recommend that the status of the loch boundary be confirmed with the seller.

2.3 Demography and Economy

The Highland Council Settlement Zone of Achiltibuie, with 299 residents in 2001, covers most of the population of the area. Key statistics from the Census are summarised below:

2001 Census of Population Statistics

Achiltibuie

Ross & Cromarty

Highland

Scotland

Population Change Since 1991

Age Structure

0 – 14

15 – 24

25 – 64

65 + over

Can speak, read or write Gaelic

Were not born in Scotland

Are self-employed

Sector of Employment

(by residence) – selected

Agriculture, Hunting, Forestry

Fishing/Fish Farming

Hotels/Catering

Wholesale, Retail, etc

Public Administration/Defence

Health/Social Work

Households

Owner-Occupied

Rented from Council/Scottish Homes

Rented from Housing Association

Private Rented

Rent Free

Have No Car

Second/Holiday Homes

+ 3.1

21.5

6.9

56.3

15.3

14.1

33.1

24.3

5.4

15.3

13.5

6.1

1.8

5.1

66.3

15.3

0.0

14.6

3.8

11.7

38.0

+ 1.6

20.3

9.3

54.4

16.0

7.5

18.3

10.4

4.2

1.7

6.9

13.8

6.1

11.2

64.9

19.9

3.3

6.6

5.3

22.5

5.5

+ 2.5

18.3

10.6

54.5

16.6

7.5

17.8

10.2

3.7

1.4

9.3

14.7

6.8

12.4

65.7

18.0

3.6

8.5

4.2

25.1

6.2

+ 1.3

17.9

12.5

53.7

15.9

1.4

12.9

6.6

2.1

0.3

5.7

14.4

7.0

12.4