Authors: Amanda Bryan, Aigas Associates & Steve Westbrook, Economist

Transcription

1 Community Land Scotland Summary of Economic Indicator Data March 2014 Authors: Amanda Bryan, Aigas Associates & Steve Westbrook, Economist Funders: Carnegie UK Trust & Highlands and Islands Enterprise Community Land Scotland is the membership organisation for community landowners (CLOs). Formed in 2010 it has 39 members who between them own and manage around 500,000 acres of land. In response to several requests for data about the impact that community landownership has had, a study into the economic impacts was commissioned from 2 independent consultants in late The study focused on collating and analysing a range of financial and output data provided by the 12 CLS members that had owned land for a period of more than 5 years at the date of the analysis. This report collates the findings of that study. 1. Introduction The data in this report has been gathered from the 12 Community Land Scotland members that have been owners of land for over 5 years (Annex 1). The data was gathered using a proforma (Annex 2) which was completed via a combination of telephone interviews and s during November and December Not all organisations were able to provide all data sets requested due to a number of factors including: lack of data from time of land acquisition, dispersed recording of investment and output data and financial records having been archived or being held by others within the organisations. In several instances it wasn t that data was not held but that it was not recorded in a format that was easily accessible. Three types of data were gathered. The first data set covers basic figures about the land owned and the associated community. The second data set relates to financial information extracted from the organisations accounts with cumulative data regarding investment in specific types of initiatives. The final data set brings together information on hard physical outputs. The results from each of these are outlined below. 2. Background/ Community Data Land Area: In total 12 CLS members participated in the study who own a combined total of 359,904 acres (145,648Ha) of land with the smallest area of landholding being 271 acres (110Ha) and the largest being 93,000 acres (37,635Ha). Additional questions were asked about the area of land which encompassed the eligible membership area and about the % of the population that actually lived on community owned land but these figures seemed hard to pin down and were being interpreted differently by respondents so no results have been shown here. 1

2 Duration of Community Ownership: If taking all 12 responding groups into account the average length of ownership is almost 18 years with a range of Stornoway Trust being the oldest CLO at 90 years with Urras Oighreachd Ghabhsainn the youngest at 6 years. If we take out the Stornoway Trust which skews the figures somewhat then the average length of community ownership for the remaining 11 organisations is 11.4 years. Population: All groups except the Stornoway Trust were able to provide population data at the date of acquisition and again more recently. The most recent figures provided were based on a variety of methodologies including recent head counts, 2011 census data and informed estimates. For the 11 groups which provided both data sets the population has increased from 7,970 at acquisition to 8,195 now. These overall figures however mask some interesting details. Only 2 out of the 11 areas have experienced a population decrease (Bhaltos and Galson). The most significant gains have generally been experienced in those communities which have a population of less than 250 e.g. Gigha (increase of 55 or 57%), Eigg (increase of 31 or 47%), Knoydart (increase of 53 or 85%) and Borve and Annishadder (increase of 42 or 43%). 4 out of 11 organisations report no or little change in population, 5 organisations indicate a steady increase which is continuing, 1 reports a steady increase which has now levelled and 1 organisation reports a fluctuating population. In terms of demographic mix of the 11 organisations that could provide data 5 report a good mix across all age ranges, 3 report a population comprising largely working age/ retired with fewer younger people (generally in the age range) and a further 3 report a predominantly older population. Those with a good mix of ages tend to correspond to those areas which have experienced a significant % increase in population. Note that population increases have occurred over variable periods of time as dates of acquisition vary. Other Factors: Respondents were asked to provide data regarding number of children in the community as this may also provide a measure of demographic sustainability. The data gathered here was patchy with only 7 of the 12 organisations able to provide data for under 18s at the time of acquisition with this increasing to 9 out of the 12 organisations providing up to date statistics. Of the 7 that could provide both data sets 4 show an increase in U18s within these communities with 3 showing a decrease. Anecdotal information from the other 2 (Gigha and Eigg) would also indicate that there has also been an increase in children in both of these communities but they do not have the historical figures to hand to back this up. It can reasonably assumed however that 6 out of 9 or two thirds of those areas that have provided some data on U18s have seen an increase. It is notable however that some communities are still struggling e.g. North Harris and Assynt. Organisations were also asked to consider the number of both active community organisations within their area and private enterprises operating. This was more challenging for those communities that are either very large or form part of a wider catchment area e.g. Stòras Uibhist or Bhaltos where many groups cover the wider Uig area. Figures for both acquisition and now were provided by 6 groups and the results are summarised in Table 1 below. 2

3 No. of Community Organisations No. of Private Enterprises Acquisition Variation 25 (Increase) 102 (Increase) Table 1: Variation in Community & Private Sector Activity since Community Acquisition These figures can give an indication of community participation and confidence. Headline Figures 12 Oldest CLS Members own 359,904 acres. 9 of the 11 CLS Members that provided data have populations that have remained steady or increased, with the most marked increases experienced by some remote island and land locked communities. Private enterprise has flourished on community owned estates with the 6 CLS Members who have recorded data for this statistic showing a 123% increase in private businesses operating in their area up from 83 businesses to 185 businesses. In addition wider community activity has also increased with an 86% increase in active community organisations from 29 at time of acquisition to 54 now. Commentary The above data shows a largely positive impact of community land ownership on population stability/growth and on demographics balance. These figures would appear to run counter to evidence that the population within the North and West of Scotland as a whole is showing some decline with a shift towards an increasingly older demographic. Annex 3 provides details of population change in comparable island communities from the most recent Census information along with population change and school roll data collated by HIE as part of their monitoring for their Community Account Management (CAM) system. These figures demonstrate that population trends in the majority of these comparable communities (that are not subject to any degree of community land/asset ownership) are more likely to be downwards with most CAM communities experiencing serious declines in school age children. 3. CLO Financial and Investment Data Variations in Financial Data from Acquisition: Eleven of the twelve participating CLOs provided data from their annual accounts both from the first year of acquisition (except for Stornoway Trust who have provided data from 1993, for purposes of direct comparability) and their most recent set of audited accounts. The twelfth CLO provided only their most recent financial data. While the year of the historic accounts varies considerably, the figures for the most recent accounts tend to cover Financial Years ending sometime in either 2012 or CLOs were asked to provide turnover figures for both the parent company and their subsidiaries taking care to avoid double counting due 3

4 to any transfers between the two. On the whole this was relatively straightforward as many subsidiaries retain any income in order to meet future liabilities e.g. reinvestment in renewable energy infrastructure on Eigg & Knoydart. CLOs were also asked to provide data about excess of income over costs however the data provided here does not provide a true reflection of profitability or otherwise of the businesses due to the skewing of figures by grant related cash flow in several instances losses are shown due to grant payments being awaited to cover part costs of large capital investments. A summary of data collected is provided in Table 2 below. Data from 1 st Year of Trading (Variable dates) Data from Most Recent Accounts (YE 2012/2013) No. of Participating CLOs 11 d 12 d Estate Values ( ) 17,222,734 e 59,340,000 e No. of Trading Subsidiaries Turnover (Main CLO) 1,627,502 a 5,250,794 a Turnover (Trading Subsidiaries) 102, ,854 Turnover (Total) 1,729,502 6,119,648 (254% increase) Value of Contracts Awarded to 20,653 b 897,587 b Local Businesses Direct Staffing Total (FTE) (368% increase) Direct Earnings related expenditure of CLO/ Subsidiaries ( ) Estimate of Volunteer Time (hours) Estimate of Volunteer Time (days) Notes: 455,571 1,646,304 6,972 c 6,462 c 996 days (approx. 2 years and 9 months based on 7 hour days) Table 2: CLO Financial Data at Acquisition and Now General: No account has been taken of inflation. a. Stòras Uibhist figures provided for group and not split into Main CLO/ Subsidiaries 923 days (approx. 2 years and 6 months based on 7 hour days) b. Figures are an under estimate. Some figures based on actual, others based on estimates e.g. local boat hires etc. Does not take into account some significant contracts awarded to external companies who have then sub contracted local suppliers e.g. Stòras Uibhist contracted works to RJ Macleod who then used local contractors for much on-island work estimate value of 8.5m but difficult to verify details. c. Figures are an underestimate and based largely on attendance by volunteer directors at meetings (not including preparation or travel) and for all but 3 CLOs does not take into account additional voluntary input. No volunteer hours data provided by Stornoway Trust or Isle of Gigha Heritage Trust so results for 10 organisations only. 4

5 d. Fernaig historical data not included but as financial activity level low this does not skew the figures at all. Gigha data provided from Steve Westbrook on basis of 2012 HIE commissioned study. All other data provided by organisations via proforma. e. This data comprises a full Estate re-valuation undertaken by Stòras Uibhist in 2013 and a deskbased re-valuation undertaken of 10 of the remaining 11 Estates by the District Valuer Services (DVS) completed in March Only one Estate (Assynt foundation) has not been re-valued at this stage and the figure used here is the value of the estate as stated in their accounts for 2012/13. Estate revaluations are conservative and include residential properties being valued on the basis of rental income rather than vacant possession values, commercial leases having not been seen but assumed to be medium term i.e years with adequate rent review provisions, renewable energy income assumes 25 year generation and lease commensurate with that period and average land sales/ disposals in range of 2k pa for small estates and 20k pa for large estates. Investment Data: In addition CLOs were asked to provide data on cumulative investments, from the time of purchase to now, made in relation to specific areas of activity e.g. Housing. Then for the same areas of activity CLOs outlined planned investments that have already been committed to (not just aspirational plans). Data was supplied by 10 CLOs for all investment areas but one additional CLO was only able to provide a total investment figure and details on housing investments but not for other activity areas which accounts for the Total row not being a sum of all of the preceding rows. The results of this are shown in Table 3 below. An illustrative list of projects supported is provided in Annex 4. Cumulative Investment to Date ( ) Planned Investment ( ) Total Grants Own Investment Total Grants Own Investment Housing 4,505,627 2,667,627 1,838,000 2,126,000 1,110,000 1,016,000 Renewable Energy 16,486,000 5,960,000 10,526,000 10,030,000 3,000,000 a 7,030,000 Land Management 1,334, , , , ,000 11,000 (inc. Forestry & Cons.) Tourism & Recreation 1,136, , ,200 6,525,000 5,210,000 b 1,315,000 Infrastructure Business 1,252, , , , , ,250 Development Communications 4,873,101 2,931,730 1,941,371 5,003,000 5,000,000 c 3,000 Infrastructure Community Facilities 205, ,000 20,000 22, ,000 Training/ Skills 20,550 12,550 8,000 3, ,000 Total 34,428,073 d 16,283,353 18,144,720 25,194,000 15,647,750 9,546,250 Table 3: Cumulative and Planned Investment by CLOs Notes: General: No account has been taken of inflation. Also note that figures do not include any private investment as part of Joint Ventures or similar. a. 3m grant funding for innovative Battery storage project on Gigha 5

6 b. Grant funding comprises significant HLF funding for Parks for People project involving Stornoway Trust to rejuvenate Lews Castle grounds and other sites around Stornoway and contribution towards Stòras Uibhist s marina development as part of Lochboisdale Harbour redevelopment (note SU s contribution all made up front and has already been sunk into project). c. Grant funding comprises contribution towards Stòras Uibhist s Lochboisdale Harbour redevelopment (note SU s contribution all made up front and has already been sunk into project as noted above). d. Not all CLOs provided breakdown of investment figures so Total figure is larger than sum of investments by activity. Headline Figures The twelve estates have seen an increase in capital value from 17.22m to 59.34m (up 244%) based on a conservative desk based valuation exercise undertaken in March 2014 by the DVS. The 12 estates have seen an increase in turnover of 254% rising from 1,729,502 at acquisition to 6,119,648 in 2012/13. Annually the 12 organisations are contributing significantly to local employment and the local economy with over 2.5m spent on staff and local contractors in 2012/13 ( 897,587 on contractors and 1,646,304 on staff) a 434% increase on comparable figures at time of acquisition. Every year at least 2 years and 6 months of voluntary labour is being provided by members of the community to ensure the functioning of these organisations. To date over 34m has been invested in capital projects on the 12 estates directly by the community land owners, 53% of which is the CLO s own funds. Largest areas of investment have been renewable energy, housing and communications infrastructure including piers, roads and broadband. Planned future investment is in the region of 25m. Major projects which are attracting public investment, from HIE, DECC and HLF in particular, include a Parks for People Project focusing on Lews Castle grounds in Stornoway, the development of new harbour and associated onshore facilities in Lochboisdale and an innovative renewable energy storage project on Gigha. CLO investment continues to be focused on providing new and upgraded housing and renewable energy developments to provide revenue income. Commentary Community owned estates have seen a significant increase in value, from 17.22m to 59.34m (up by 244%) since their time of purchase, some of which relates to inflation in land prices but a significant element of which can be attributed to investment in housing and infrastructure including renewable energy development. The ability to generate future income from the asset while essential to community estate s sustainability (to cover operational costs and reinvestment) has been a key component in the DVS valuations. 6

7 This ability to generate income, which is reflected in the increased stated turnover of 254%, means that there is an improved ability to both create additional direct employment (an increase of 434%) and also to reinvest in the estates infrastructure often addressing decades of under investment, particularly in housing. CLOs that participated in the study indicated that their investment strategy was focused on increasing population or stopping population decline and was specifically about bringing in young people, especially families. An equally important priority for CLOs has been generating income to ensure financial sustainability. This has resulted in a policy of improving housing stock for rent, creating new affordable housing and releasing house sites (albeit with mechanisms in place to avoid housing speculation) in partnership with providing suitable business opportunities both for private individuals and for the CLOs themselves. Without such a clear strategic focus and targeting of effort and investment it is unlikely that the progress demonstrated by these figures would have been achieved. In this respect the following observations can be made: The development of business premises whether these are office spaces, workshops or specific retail, accommodation or catering related spaces has been a priority for many CLOs. The availability of business premises is extremely important to attracting young people of working age e.g. North Harris Trust has a marketing budget to attract start up and growth businesses to its new business unit developments and Eigg Box is designed to support growth businesses in the creative industries on the island of Eigg. These types of premises have generally failed to materialise in these types of communities prior to community ownership due to market failure i.e. lack of land availability, the high cost of build/upgrade and low potential rent mean that such developments don t make commercial sense from either an individual business or investor s perspective. The ability of CLOs to develop this type of infrastructure (often in conjunction with community facilities) with grant support from both public and private sources means that rental income can be set at a rate both appropriate to the area and able to cover running costs (and possibly contribute to the CLOs income streams). The rent does not however have to cover the capital costs of such developments as it would be required to do in a functioning open market situation. This arrangement is not available to any other type of landowner. The provision of affordable housing which caters to households of various sizes and needs has been a major priority for CLOs and has resulted in a creative approach to housing upgrade and development. CLOs have not sought to maximise potential income from housing development and sale of land for housing but have looked to provide an appropriate mix of housing solutions to provide accommodation for potential new residents. This has resulted in collaborative working with housing associations (e.g. North Harris Trust, Isle of Gigha Heritage Trust), the private sector (e.g. Knoydart Foundation, Isle of Eigg Heritage Trust, and Stornoway Trust) and other community organisations (e.g. Knoydart Foundation) as well as through their own investment (North Harris Trust, Knoydart Foundation). In addition to this considerable numbers of house sites have been released (often with a shared equity element) to enable investment in private house building. This scale of development, particularly for affordable and low cost housing, has not been seen in other comparable communities and recent figures show that house building across the Highlands and Islands is currently not able to meet demand with housing developers unwilling to develop sites in hand (in Highland estimated demand is for

8 new houses per annum while build completions are currently running at around 1000 per annum (HC, pers. comm.)). Renewable energy schemes have been implemented by several of the CLOs and several more are at various stages of planning. These schemes are relatively modest in scale but have resulted in significant income streams (or steady power supplies). It is worth noting that if a community wholly owns a 1MW wind turbine development their net annual income can be expected to be in the region of 80,000 to 100,000. If however a community is the recipient of a community benefit payment from a commercially developed scheme the same size of scheme would net them just 3,000-5,000 per annum with additional constraints on how that money could be invested in the community. In order for a community to reap a similar income of up to 100,000 per annum through community benefit payments the wind farm would have to be up to 20MW in capacity. While it has not been possible to analyse details of every individual grant awarded to CLOs to develop their ideas it is clear that a significant amount of money has been provided through various lottery streams specifically the Big Lottery Fund (most frequently through Growing Community Assets) and the Heritage Lottery Fund. Public funding accessed has most frequently related to the development of housing and infrastructure for example the Lochboisdale Regeneration Project which has been funded by HIE, ERDF and CnES amongst others and the timber haulage route on North West Mull Community Woodland Company s land which was part funded through the Strategic Timber Transport Fund. 4. Economic Impacts The information obtained through this survey of CLS members enables certain of the impacts that have been generated by the community landowners since their land purchases to be quantified principally their direct employment and the employment supported by purchases from local suppliers. Other information, in particular on capital spend and investment in wind turbines that will generate future income for local investment, indicates the order of magnitude of impacts, but more detailed information would be required to quantify these impacts with any accuracy. This is an area for further study. As illustrated below, the overall cumulative impacts that will have been generated by the member organisations (directly or through their influence) over the period covered by this review will greatly exceed the aspects of impact that can be measured without very detailed studies of each organisation which would need to take into account all relevant activity year-by-year. In summary, the landowning organisations will have generated (or will generate in the future from investments already made or planned) the following nine categories of impact. The larger estates which include settlements that are of a significant size in their local context, such as South Uist and the island of Gigha, might generate impacts in all of these categories. The impacts considered below relate to the local areas of the CLOs. It was only possible to provide hard estimates of both fte and income data for direct CLO spend using standard economic multipliers. However in most cases wider impacts will often be greater for example the workforces employed in construction contracts awarded to businesses out with the areas and employees of tourism-related 8

9 businesses where visitors are en-route to or from the areas covered by the CLOs but it has not been possible to quantify these impacts without further study. In this instance a description of the nature and scale of potential impacts has been given. (i) Direct Employment Impacts The CLOs and their subsidiaries employed a total of 103 full time equivalent (fte) staff in their most recent accounting year, and these employees were paid a total of 1.65 million. In CLOs early years, development officer and other posts are often funded (or part funded) by public sector grants, but as the organisations mature it is usually necessary to cover the costs of direct employees through earned income. The local spending of these direct employees from their incomes will generate additional employment impacts locally through the multiplier, and an average multiplier of 0.1 is applicable within local economies. This would give an overall employment impact of 113 ftes (rounded). If these additional 10.3 ftes pay an average of 20,000 per fte, the overall income impact would be 1.86 million. (ii) Impacts from Annual Purchases The CLOs identified a total value of 898,000 of contracts awarded to local businesses in their most recent trading year, which will relate to a combination of capital and operational expenditures and could be a significant underestimate (since all supply chain impacts would not be known). For the sectors that would benefit from this expenditure, including construction, it is estimated that c 60,000 of expenditure would support 1 fte locally on average (inclusive of the multiplier). This would give an employment impact of 15 ftes. Assuming that earnings might average 22,000 per fte, the earnings associated with this employment impact would be 330,000. (iii) Wider Employment Impacts from CLO Operations These would include employment associated with activities such as hauling and processing timber produced from CLO-owned forests; operating visitor facilities (accommodation, Askernish golf course in South Uist, etc); landing and processing fish facilitated by CLO harbour or pier developments. (iv) Employment Generated as a Result of Capital Developments These impacts would stem from investments by other businesses and organisations stimulated by the CLO or which build on its investments, as well as the investments directly carried out by the CLOs (often with substantial, possibly majority, external funding). Examples include infrastructure development, providing business premises (new or converted buildings) and sites, erecting wind turbines, improving CLO-owned properties for new uses, creating new visitor facilities, building multi-purpose community facilities, etc. CLO activity can provide a significant boost to the local construction sector, which can open up other opportunities to the businesses concerned. Impacts from major infrastructure and property developments can build over a period of years, with short term impacts possibly relatively modest. Illustrative Case Study: Lochboisdale Regeneration Initiative As an example of economic impacts that can be generated by development projects undertaken or facilitated by a community landowner, Stòras Uibhist is currently managing a major 10 million regeneration initiative in Lochboisdale that comprises berthing improvements for fishing boats, a pontoon development for leisure boats, and the creation of sites for industrial and commercial units 9

10 and housing. The impact study for the project estimated that the eventual employment impact in South Uist and Eriskay could be around 125 ftes through construction phase impacts, tourism impacts, fisheries impacts, other business impacts, and population growth impacts. These impacts are additional to those that Stòras Uibhist activities will generate in the future through investment of wind turbine surplus and its other property and activity developments (including Askernish Golf Course). (v) Business Development This can relate to new businesses or the growth / diversification of existing businesses encouraged or facilitated by the CLO or stemming from its initiatives (e.g. croft creation) or lobbying (e.g. for improved broadband). Providing new housing or house plots can have a spin-off benefit of self employment generation (through occupants using the home as an office base, operating B&B, craft working, etc). (vi) Tourism Development Investments by a CLO in visitor amenities, (e.g. new footpaths) or visitor services (e.g. trout fishing) will tend to generate impacts in the local area through the spending of additional visitors while in the area or of visitors who will extend their stay. Investment in key facilities (such as Achamore Gardens in Gigha) or deficit funding to keep facilities operational can have substantial wider visitor spending impacts. (vii) Population Growth and Retention Impacts As stated above the population growth in 9 of the CLO areas can be linked to the activities (in housing and business development infrastructure) of the CLOs and the increasing community confidence that their presence has generated; whilst simply retaining population levels in areas previously considered economically or socially fragile can be a significant achievement. Retaining and growing the local population will tend to at least protect public and private services (and the employment they provide) and can stimulate new service provision. Retaining a primary school within an area can be particularly important in encouraging families with employed parents to stay in the area or attracting in new families. (viii) Impacts through the Spending of Wind Turbine and Other Renewables Surpluses These surpluses can be generated over 25 years (and potentially beyond), and can be invested in new economic development projects, used as match funding in attracting external finance for new developments, or used to create new or fund the operating costs of community facilities, which can both employ staff and play a role in population retention (see above). These impacts should become very substantial in those communities that have made multi-million pound investments in renewable energy. (ix) Training and Work Experience Impacts Investments by CLOs in training, or encouraging participation in courses and events that might be free of charge or subsidised, can improve the job prospects of those trained (possibly in CLO or subsidiary businesses), lead to increased efficiency and profitability in the businesses and organisations in which they are employed (sustaining their viability), or stimulate new businesses development or diversification often through self employment or occupational pluralism, especially in crofting areas. 10

11 5. CLO Output Data Eleven out of the 12 organisations were able to provide output data. The Stornoway Trust was not able to participate in this part of the study due to the dispersed nature of record keeping within the organisation. They have recently taken on a graduate placement that will help to draw some of this information together so it should be available in the future. Output data from the 11 respondents that were able to provide information is given below, with associated notes. An illustrative list of projects supported is provided in Annex 3. Output Description Count Notes No. of houses upgraded by CLO CLOs. Some of these done in partnership e.g. through energy efficiency schemes No. of houses built new by CLO 6 2 CLOs. No. of houses built new in partnership 33 3 CLOs. No. of house plots sold/ released through shared ownership CLOs. Viewed as very important in terms of population expansion. Shared equity often used to combat potential for future absentee/ holiday homes. 20 No. of other buildings upgraded (e.g. Glencanisp Lodge) Renewable Energy Installed Capacity 6,902,496 8 CLOs. Large schemes in Uist, Gigha and Galson. (Watts) No. of commercial facilities provided 24 8 CLOs. Speculative business units and specific commercial facilities e.g. tearooms/ restaurants etc. Estimate of jobs created through investments in commercial infrastructure CLOs. 3 additional CLOs unable to provide any data as not recorded although jobs created. Broadband Capacity installed (Mbps) 16 2 CLOs provided 8Mbps systems. No. of piers upgraded 5 4 CLOs. Length of road or track upgraded (Km) CLOs. Length of road or track built new (Km) CLO. No. of visitor moorings/ berthing 63 2 CLOs. facilities installed Area of new woodland/ forestry created (Ha) (453 ac.) 3 CLOs. Does not take account of crofter forestry or other community woodland schemes etc. Area of woodland/forestry felled and replanted (Ha) 135 (333ac.) 2 CLOs. Does not take account of crofter forestry or other community woodland schemes etc. Area of land under active conservation management agreements (Ha) 24,200 (59,800 ac.) 4 CLOs provided data. An additional 3 not able to provide areas as involved agreements with crofters (Lewis Peatlands, machair in Uist/ Bhaltos) No. of community facilities upgraded 9 3 CLOs. Majority of community facilities upgraded carried out by other community groups. No. of community facilities built new 5 3 CLOs. Majority of community facilities built new carried out by other community groups. Length of paths upgraded (Km) 29 2 CLOs. Significant investment area for Stornoway Trust but details not known. Length of paths built new (Km) CLOs. Significant investment area for Stornoway Trust but details not known. No. of visitor facilities upgraded 13 3 CLOs. Significant investments on Gigha. Includes tourism accommodation units. No. of visitor facilities built new 9 7 CLOs. Several multi-user facilities. 11

12 Output Description Count Notes No. of people supported through CLOs. Under-reported. training No. of crofts created 17 4 CLOs. First forest crofts on Mull. No. of small holdings created 12 2 CLOs. Under reported as also several on Gigha but no figures available. No. of allotments created CLOs. Fencing (Km) 0.5 Not on original template only provided by 1 CLO. Under reported. Length of Drains maintained (km) 32.2 Not on original template only provided by 1 CLO. Under reported. Table 4: Cumulative Outputs Delivered by Participating CLOs since Acquisition Headline Figures Between them 11 estates have upgraded 151 houses, built 6 new houses themselves and a further 33 in partnership with others and released a total of 141 plots of land for housing development, this has contributed significantly to the positive population trends. In addition they have redeveloped 20 other estate buildings for a variety of uses. Collectively they have installed almost 7MW of renewable energy capacity. Greater numbers of people are being encouraged to take an active role in land management and the 11 CLOs have created at least 17 crofts, 12 small holdings and 16 allotments. Investment in physical infrastructure has included the upgrade of 5 piers, 35km of track/ forest road and 29km of footpath with a further 17.5 km of new track/ forest road being built. A total of 21 visitor facilities have been upgrade or built new. These range from tourism accommodation, camping facilities and bunk houses to attractions such as the Suileachan Monument at Bhaltos, Achamore Gardens on Gigha and the Eagle Observatory on North Harris. Commentary The above output figures only show what CLOs have delivered at their own hand. It does not reflect the full scale of what has been delivered through community land ownership which often has at its heart empowering other community led initiatives. Several of the CLOs stated that where possible they looked to release land and assets to other organisations (most frequently community based) where wider community benefits could be delivered. A good example of this is the Stornoway Trust who has a policy of enabling others to deliver what they at their own hand do not have the necessary skills and capacity to deliver on this basis they work extensively with public, private and third sector organisations to deliver wider objectives. Other examples include the Community Hall on Eigg which is owned and has been upgraded through a separate organisation and the Knoydart Forest Trust delivers the majority of land management objectives of the Knoydart Foundation. There is no systematic recording of outputs delivered by these partnership organisations but some examples are provided in Section 6 below. 12

13 6. Investment by Others CLOs were asked to identify investment that had been made by others in which they had played a role. This role varied from releasing land to build houses or other facilities to lobbying for improved service provision in terms of ferry services or broadband bandwidth. While it was relatively straightforward to organisations to describe these investments it was not always possible to quantify either the level of investment or the outputs, within the time constraints of this initial study. This is an area which may benefit from further investigation. A list of the investments identified by 8 out of the 12 CLOs has been given below. Note also that while the remaining CLOs were able to identify investment by other organisations in their area they felt that they had not played a sufficiently enabling role to claim credit. Isle of Eigg Heritage Trust Upgrade to Eigg Primary School and Teacher Accommodation New Pier & Slip provided under Small Isles Pier Project Upgrade to Community Hall Lochaber Housing developed 5 new houses and a day care centre. Latter is now used as volunteer accommodation as elderly population has dropped. Stornoway Trust Ongoing future of Arnish Yard on Lewis secured with 13m of external investment. Land around Stornoway sold for housing in tranches estimate 100 new houses built over the most recent 6-7 year period. Knoydart Foundation Upgrade to Knoydart Primary School and Teacher Accommodation New Pier & Slip provided under Small Isles Pier Project - 6m investment from HC/ ERDF Lochaber Housing developed 2 new houses. Knoydart Forest Trust has secured investment of 1,033,000 for a range of projects including new tree planting, rhododendron clearance, path maintenance and construction between Work undertaken largely on KF land under lease. Stòras Uibhist Askernish Golf Club has secured investments of 500k cash and around 1m in kind for the redevelopment of the golf course. Caledonian MacBrayne has started a trial winter ferry service from Lochboisdale to Mallaig which will reduce travel times from South Uist to the mainland. SNH, Sustrans and Comhairle nan Eilean Siar have invested 600k in the development of the Hebridean Way a long distance footpath/ cycle path covering the length of the Outer Hebrides. A considerable portion of this runs along the length of Stòras Uibhist s estate. Bhaltos Community Trust 13

14 CnES carried out improvements to the pier at Bhaltos worth 57k. Through BT s Connected Communities programme broadband to the area has been improved through the installation of 3 wireless systems. North West Mull Community Woodland Company Forestry Commission Scotland has recently completed a 2.5m new pier for transferring timber off Mull to mainland markets. The case for doing this included the potential timber to be produced by NWMCWC. North Harris Trust Hebridean Housing Partnership have built 8 new houses on land released by NHT. BT have upgrade broadband in the Tarbert area through work with NHT and a number of broadband masts are being installed through Connected Communities to improve coverage in other areas. Scottish Water have upgraded infrastructure in Tarbert and Marig. Proposed 5.5m investment in a new distillery at Tarbert. Isle of Gigha Heritage Trust Fyne Homes invested a total of 3,181,778 in the development of 18 houses to rent on Gigha. Linked to the housing developments a total of 108k was invested in a new play park by the developers. 7. Case Studies In addition to the hard socio-economic figures gathered a number of examples of additional benefits being delivered by community land-ownership were provided. These examples demonstrate some of the spin-off benefits that can accrue from the harder capital investments and from a more joined up approach to community regeneration. Knoydart Foundation Venison Processing Adds Value Up until recently the Knoydart Foundation s trading subsidiary sent deer carcasses to a game dealer for processing and sale with only a small amount being available on the peninsula for local consumption. However with an increasing emphasis on local food production by the community and an increasing demand from visitors steps have been taken to make better use of this local resource. Knoydart Trading has improved its deer larder facilities and associated infrastructure and secured training in butchery skills for a member of the local community who already works part time as a stalker. Retail facilities which can store the venison have also been developed and now further work is going into product development with specialist equipment being secured through a grant of 15,000 from the Santander Foundation. This has resulted in an additional part time job, an increase in income to Knoydart Trading from adding value to a local product as well as providing locally sourced produce to the local community and visitors, reducing food miles. 14

15 Isle of Eigg Heritage Trust Eigg Box Supports Growth in Creative Industries Securing a reliable power supply and a broadband connection of 8Mbps has revolutionised the working environment for residents on Eigg. Not only has this improved the ability of service and tourism providers to do business but it has opened up opportunities for businesses, particularly in the creative industries, that rely heavily on off-island customers. The ability to earn a year round income on Eigg has created a vibrant creative industries sector which in turn has led to the development of Eigg Box, a social enterprise which is developing an eco-built studio and creative workspace due to open in As part of the development process 10 individuals with creative businesses are being provided with a year of talent and business skills training, mentoring and support funded via Eigg Box by Creative Scotland. Eigg Box when it is completed will house self contained studios, shared studios, hot desking facilities, a temporary exhibitions space and meeting room; the facility will be open to both residents and visiting artists. Borve & Anishadder Township A key indicator for BAT is the health of crofting which had been in decline. Since the purchase of the estate in 1993 cattle have been reintroduced to the township and now stock management and cropping is undertaken to maximise the environmental benefits, particularly for birds. North West Mull Community Woodland Company Wood Fuel Development Links to Blanket Bog Restoration NWMCWC recently purchased the assets of a local wood fuel business Crannich Woodfuel and is further developing the business under the name of Island Woodfuels. The plan is to expand the company s products to include chip as well as logs, kindling etc. meeting an on island need that has arisen due to good uptake of woodchip heating systems by local businesses through the provision of the RHI. This expansion will provide an additional local job as well as environmental benefits from the early removal of 80 Ha of poor quality lodge pole pine from a NWMCWC owned area of blanket bog which with some drain blocking has the potential for restoration. Without the development of a local wood fuel market this environmental work would have been unaffordable. Stòras Uibhist Stòras Uibhist has released land to enable the development of 7 wind turbines providing low cost energy for local community halls across the South Uist Estate. Four 6kW turbines and three 5kW turbines are at various stages in the development process. This in-kind support has enabled these individual communities to benefit from improved facilities at a reduced cost. 15

16 Urras Oighreachd Ghabhsainn Since taking ownership UOG have reviewed estate policies for renting and sales of land to ensure full commercial value is secured with resulting benefits for both the community company and the crofting tenants. This has resulted in a 10 fold increase in the funds that have been made available to the crofting grazings committees which has then been reinvested in land management improvements on the ground including fencing and drainage. North Harris Trust NHT have developed a range of facilities and events aimed at attracting greater numbers of visitors to the area throughout the year providing additional income for a significant number of tourism and service providers. One of the main developments has been an Eagle Observatory which cost just 14,600 and was constructed using a team of long-term unemployed people on a training project managed and funded through Comhairle nan Eilean Siar. In the first year alone there have been over 4,000 visitors to this facility. Linked to this, one of the events that have been held since 2011 is the Harris Mountain Festival which takes place towards the end of the main visitor season in September each year and is supported by the John Muir Trust and Scottish Natural Heritage. The event now turns a small profit and since its inception visitor numbers have increased by 50% from 280 in Year 1 to 570 in Year 3 with an expectation of additional growth in the coming year. Bhaltos Community Trust The Trust recently converted an existing building into an office facility, primarily for its own use but which has found a wide range of other community uses. Given that there are no local community facilities and residents have to travel to Uig for most community events and activities the office has found a range of applications. In recent months it has been used by the mothers & toddlers group, to provide staff training for the local GP surgery and also as a first aid post. Assynt Foundation A major area of investment for the Assynt Foundation has been Glencanisp Lodge which has created a number of part time jobs. Having this facility has provided opportunities for other local businesses to offer retreats and activities including creative writing weeks, bottling & preserving days, wildlife watching and hill walking. These are generally held out with the main tourist and stalking seasons which sees the Lodge fully booked. With the Lodge as a hub for activity a number of associated developments have also taken place including a log built artist s studio and pole barn which used local timber and provided local training in traditional building skills. Amanda Bryan & Steve Westbrook, March

17 Annex 1: List of Participating CLS Members Assynt Foundation Bhaltos Community Trust Borve and Annishadder Township Fernaig Community Trust Isle of Eigg Heritage Trust Isle of Gigha Heritage Trust Knoydart Foundation North Harris Trust North West Mull Community Woodland Company Stòras Uibhist Stornoway Trust Urras Oighreachd Ghabhsainn 17

18 Annex 2: Economic Data Study Proforma 18

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25 Annex 3: Population Statistics Comparable Communities Population Change by Region (Source: GROS) Area % Change % Change in population Aged U15 Aged 15 to 64 Aged 65 and over Scotland 5,062,000 5,296, Argyll & Bute 91,300 88, Eilean Siar 26,500 27, Highland 208, , Orkney Islands 19,200 21, Shetland Islands 22,000 23, Notes: 1. Scotland as a whole has an increasing population with both Highland and Orkney showing above average increases and only Argyll and Bute showing a decrease in population between the 2001 census and the 2011 census. 2. Scotland as a whole has an increasingly older demographic due in part to people living longer but also due to older people moving into the area. This becomes more pronounced in the Highlands and Islands. 3. The figures for the Highlands and the Islands groups mask a more localised trend of the populations of the main towns e.g. Inverness, Kirkwall, Stornoway etc increasing while the populations of more outlying areas generally decreasing (and ageing). 4. GROS population projections indicate that by the year 2035 both Argyll & Bute and Eilean Siar will be losing population (-7% and -11.3% respectively), Shetland will remain static (+0.5% growth) while both Orkney and Highland will continue to grow (+6.8% and +15% respectively. In all areas however there will be an increasingly older population with considerable drops in all other age groups (except in Highland). Population Change on Islands (Source: GROS) Island Usual Residents 2001 Usual Residents 2011 % Change Bute 7,228 6,498-10% Gigha % Coll % Islay 3,457 3, % Jura % Kerrera % Lismore % Luing % Tiree % North Uist 1,271 1, % 25

26 Island Usual Residents 2001 Usual Residents 2011 % Change Berneray % North Grimsay % South Grimsay % Eigg % Raasay % Arran 5,045 4, % Eday % North Ronaldsay % Rousay % Bressay % Fetlar % Foula % Notes: 1. The table above is not a complete list but is indicative of the range of population change experienced by Scottish Islands between the 2001 and 2011 censuses. 2. In the 2011 census reports, 100 Scottish islands are registered as being inhabited between 2001 and Of these 44 have recorded a drop in population, 4 have recorded no change in population and 52% have reported an increase in population. Those islands most likely to have reported an increase in population are in the Orkney Islands followed by islands in the Outer Hebrides (where over 50% of the land is under community ownership and where over two thirds of the population live). The areas where there have been the greatest number of islands recording a drop in population are Argyll & Bute and North Ayrshire (Arran & Great Cumbrae). 3. No data is available on the demographic change in islands but anecdotal evidence indicates that in the majority of cases this is skewing older. Population Change in Community Account Managed Area (Source: HIE) Area Population in 2001 (census) Population Measured % Population Change % Change in Primary School Roll over same period Coigach % -11% Colonsay % -45.5% Morvern % % North Uist & 1,657 1, % -41.2% Berneray Melness, Tongue % -31.4% & Skerray Applecross % -37.5% Raasay % -35.3% Coll % +20% Rum % -66.7% 26