Highland and Islands local councils present united front on Crown Estate reform
Communities in the Highlands and Islands which host marine developments on land owned by the Crown Estate for Scotland must be placed at the heart of decision-making in regard to future investments in their local areas and be the key beneficiaries of developments.
This is the view expressed by the six local councils in the Highlands and Islands in a joint response to an inquiry into the Crown Estate by the UK Government’s Scottish Affairs Committee.
The response from Orkney, Shetland, Western Isles, Argyll and Bute, Highland and Moray councils provides an indicative model and illustrative principles for the management of revenues from seabed and foreshore leases at a regional and local level following reform of the administration of the Crown Estate in Scotland.
In their submission, the Councils say the case for reform of the Crown Estate in Scotland is clear. The removal of significant lease revenues to the UK Treasury and the absence of a local management role for coastal areas in the Highlands and Islands bypassing some of the UK’s most fragile communities, has long been a source of frustration in these communities.
The structures set out in their report are designed primarily in support of this community aspiration whilst also ensuring strategic coherence at a regional and national level.
While current lease revenues from aquaculture developments, harbour dues, foreshore and mooring activities and the embryonic marine renewable energy industry are significant, they are set to increase exponentially as marine renewable energy technology reaches maturity. The Highlands and Islands are home to some of the best marine renewable energy resources in Europe and lease revenues from these deployments could have a transformational impact on coastal communities.
For the first time, the location of choice for a new transformational industry is within and around some of the most fragile communities in the UK.
The proposed structure is based around local decision-making/investment (Area Coastal Partnerships), regional policy formation (Regional Coastal Partnership) and National Interest developments (UK or Scottish Government). This structure will make communities which host marine developments the key beneficiaries of deployments whilst simultaneously supporting national infrastructure developments and ensuring strategic coherence at regional level.
In terms of Crown Estate revenue distribution, it is proposed that approximately 20% is retained at either UK or Scottish Government level, with the remaining 80% split between a Regional Challenge Fund and the local Area Coastal Partnership Fund. The proportional split of these allocations would be for further discussion/consideration.
The Highland Council Leader Michael Foxley said: “I am delighted that we are able to present a united front on this crucially important issue. We want local decision making and local benefits from developments around our coastline. This evidence has been put to the Scottish Affairs Committee. We want the UK Government to action and the Scottish Government to support the devolution of the Crown Estate assets to the people of the Highlands and Islands. For too long we have suffered a loss of significant revenue from a growing marine sector, with no opportunities to manage our own coastline. This has been depriving these communities of making best use of their own resources, thereby compromising the ability of these communities to regenerate themselves.”
He highlighted that communities, such as Eigg, Gigha and South Uist, who owned land, should play a key role in Area Coastal Partnerships, and the Communities land Trust would likewise need to be a key stakeholder. And public sector harbour authorities should be able to retain and reinvest harbour dues, currently paid to the Crown Estate.
Comhairle Leader Angus Campbell said: “Revenues from the Crown Estate are by-passing some of the most economically challenged communities in the UK. There is a huge opportunity to assist those communities and the campaign to get those revenues to the communities who are most affected by developments continues. We have put forward a positive proposal; innovative and beneficial. We are hopeful that the Scottish Affairs Committee are in agreement with us and will work with us to make the case to Treasury and UK Ministers.”
Orkney Islands Council Convener, Councillor Stephen Hagan, said: “It’s vitally important that communities with commercial activity taking place in their coastal waters should directly benefit from developments such as fish farming and wave and tidal energy generation. Starting next year, the Crown Estate will channel some of its income from marine activity back to areas like the Highlands and Islands through a new Coastal Communities Fund. We want to see local control over how that funding is spent. One possibility could be a new body for the Highlands and Islands to administer the fund – ensuring the maximum benefit for our coastal communities.”
Note to editors:
This proposal draws a distinction between NATIONAL INTEREST developments and REGIONAL and LOCAL developments around the Highlands and Islands.
1. NATIONAL INTEREST developments comprise items of infrastructure which will deliver national priorities or are deployments of such a scale that they represent a significant national impact. To allow the Highlands and Islands to make an appropriate contribution to these areas of NATIONAL INTEREST it is proposed that around 20% of lease incomes generated in the Highlands and Islands are retained for National developments.
2. These retained revenues should be ring-fenced for NATIONAL INTEREST investment as they relate to the waters around the Highlands and Islands. This type of NATIONAL INTEREST development may include investments such as inter-regional grid infrastructure; issues surrounding strategic marine spatial planning and licensing (e.g. survey and research), or marine safety initiatives such as the provision of Emergency Towing Vessels etc.
3. The majority of present lease revenues should be retained within the Highlands and Islands in order to support REGIONAL and LOCAL development activity. It is proposed that lease revenues be allocated, via the Regional Coastal Partnership, to the relevant Regional and Area Coastal Funds.
REGIONAL COASTAL PARTNERSHIP
4. The Local Authorities of the Highlands and Islands propose that a REGIONAL COASTAL PARTNERSHIP be established to undertake the Marine Estate management function of The Crown Estate. This Regional Coastal Partnership will comprise representation from The Highland Council, Shetland Islands Council, Orkney Islands Council, Comhairle nan Eilean Siar, Moray Council, Argyll & Bute Council and Highlands and Islands Enterprise.
5. The function of the Regional Coastal Partnership will be to administer and manage the Marine Estate in the Highlands and Islands in a sustainable manner. The Regional Partnership will take a strategic role in the development and management of the marine estate for the benefit of local communities. The Regional Coastal Partnership will develop a Strategic Development Plan for the entire Marine Estate around the Highlands and Islands with full involvement of stakeholders such as inshore fishermen, aquaculture, navigational interests etc. As part of this exercise, they will produce criteria for the disbursement of lease revenues across the Highlands and Islands region. In doing so the Regional Partnership will consider and balance competing interests in the marine environment. Criteria developed by the Regional Partnership will also be applied by the Area Coastal Partnerships when they consider the allocation of resources within their own communities. An Operational Plan will also be developed on issues such as governance and partner, community and stakeholder involvement.
AREA COASTAL PARTNERSHIPS
6. Sitting below the Regional Coastal Partnership will be six AREA COASTAL PARTNERSHIPS, each comprising a partner Local Authority geographical area – Highland, Shetland Islands, Orkney Islands, the Outer Hebrides, Moray and Argyll & Bute.
7. These Area Coastal Partnerships will identify and promote investment opportunities which will stabilise and grow local coastal communities and will also disburse lease revenue funding into these communities in accordance with the strategic criteria set out by the Regional Coastal Partnership.
8. As part of the requirement to reflect local community aspirations the interests of land owned by communities, such as Eigg, Gigha and South Uist, should be reflected in the funding allocation formula and it is envisaged that Community Land Scotland would be one of the key stakeholders involved in the Area Partnerships.
ALLOCATION OF LEASE REVENUES
9. The National Strategic Fund should be disbursed in line with the proposed guidance outlined in paragraph 8 above.
10. The remaining share of lease revenues would be retained by the Regional Coastal Partnership for distribution to: i) a Regional Coastal Challenge Fund; and, ii) the Area Coastal Partnership Fund for the host area. This would include the revenues presently anticipated to be delivered via the National Lottery. The remits of the Regional Coastal Challenge Fund and the Area Coastal Partnership Funds can be summarised as follows:
THE REGIONAL COASTAL CHALLENGE FUND
The purpose of the Regional Coastal Challenge Fund is to provide a challenge fund for strategic, pan-Highlands and Islands projects. By splitting lease revenues between the Regional Coastal Challenge Fund and the host Area Coastal Partnership Fund, the Regional Coastal Partnership will ensure that all six Local Authority areas in the Highlands and Islands benefit appropriately from the development of marine renewable energy.
11. This approach will seek to ensure a significant level of cohesion and solidarity across the Highlands and Islands.
THE AREA COASTAL PARTNERSHIP FUND
12. The Area Coastal Partnership will disburse funding in accordance with a Business Investment Plan according to the criteria set out by the Regional Coastal Partnership and developed in consultation with and agreed by the local community, and local stakeholders.
13. Each Business / Investment Plan will differ from each area depending upon community priorities. The following headings may offer a number of potential investment areas which may be prioritised in each locality:
HARBOURS AND PORTS
14. It is recommended that consideration be given to exempting public sector Harbour Authorities and Trust Ports throughout the Highlands and Islands, as far as possible, from the above arrangements in respect of Harbour Dues formerly paid to The Crown Estate. These Harbour Dues should be retained by the relevant Harbour Authority or Trust Port for re-investment into Harbour or Port infrastructure.