Community stewardship reverses decline on Hebridean island of Gigha
When the Hebridean island of Gigha was put up for sale in August 2001, a
steering group of islanders put forward the radical idea of a community buy-out.
Three years later, the island is in community ownership and social and
economic decline has been reversed. For the first time in many years, the
population is increasing, new businesses have been created and new houses are on
site.
‘Our island went into receivership and islanders came home one day to
eviction notices. The achievements on the Isle of Eigg land trust were crucial
as an example of what could be done. At the beginning there was no concept of
what community ownership meant. We now have a five-year development plan around
debt repayment, sustainable development, social infrastructure and the local
economy. None of this would have happened if the community did not own the
island.’
Alan Hobbett, Isle of Gigha Heritage Trust
In a secret ballot in 2001, the community buy-out proposal was supported by
76 per cent of the islanders. The Isle of Gigha Heritage Trust (IGHT) was set up
and the Scottish Land Fund (SLF) was approached for a small grant to develop
proposals for the future of the 3,400-acre island.
In seven weeks the Trust produced a feasibility study and business plan,
which was overwhelmingly approved by fellow residents, and submitted a bid to
the SLF for funding to buy the island. Convinced by the arguments, the
Lottery-backed fund put £3.5 million towards the purchase price of £4.15
million. The owner deferred £150,000 of the purchase price for a year and a
grant of £500,000 from Highland and Islands Enterprise (HIE) made up the
balance.
£1 million of the SLF money was in the form of a loan, repayable by March
2004. Along with the deferred payment, it was paid on time.
Only two years later, the fund’s faith in the islanders’ vision of mutual
ownership has been rewarded. After years of decline, uncertainty and neglect by
some of the absentee landlords –7 in the previous 20 years - community
stewardship is having a profound impact.
Population growing
The island’s population has grown to 123, the school roll has risen from 6 to
14 and the waiting list of people who want move to the island is growing.
Already, new businesses have started, 6 privately owned houses are on site and a
local housing association has started work on 18 homes.
The £1 million repaid to the Lottery has been recycled to help other rural
communities eager to follow in the footsteps of the people of Gigha. Most of the
money was raised through the sale of the ‘Big House’, the main residence on the
island, for £640,000 to American businessman Don Dennis. In addition, he has
created local jobs by moving his flower essence business to the island from the
South of England.
Community control
The IGHT is a company limited by guarantee with charitable status. Membership
is open to all residents aged 18 or more. Each has one vote and elect the
Trust’s directors. All major decisions are referred back to the members.
Preferring sustainable agriculture to second homes, for instance, they
unanimously rejected a developer’s proposal to convert the Big House into a golf
club and build 50 new homes with golfing shares on some the best agricultural
land on the island.
The IGHT five-year development plan has
six main aims:
- Debt repayment
- Affordable housing for all
- Agricultural restructuring and the
creation of modern Gigha crofts
- Development of the social infrastructure
- Economic growth.
- Ensuring all development is sustainable
Commercial development
Gigha Trading Ltd, which operates a hotel and other commercial activities for
the benefit of the island, is the vehicle for commercial development. Trust
members elect its directors.
During the last two years, the Trust has restructured the farmland to good
purpose, increasing the size and output of the three established dairy farms and
letting an additional farm. In doing so, it has secured continued milk
collection from the island for the creamery in nearby Campbeltown, an
arrangement that is vital to the island’s economy.
New businesses
In the three years before the buy-out, no new businesses had been established
on the island. All that has changed. Seven new businesses have opened their
doors since 2002, among them a tea-room, a catering firm and a publishing
company. One business has relocated from the South of England. Another, based on
the Outer Hebridean island of Barra, has opened a branch on Gigha.
Community-owned wind farm
The Trust’s most ambitious project to date, Scotland's first community-owned
wind farm, began generating electricity in October 2004 on Cnoc na Sgine – ‘The
Hill of the Fairies’. Sales of electricity from three 40-metre turbines are
expected to yield up to £140,000-a-year, paying for their own upkeep, eventual
replacement and funding development projects on the island.
Gigha Renewable Energy Ltd, a new company, limited by shares, runs the
£400,000 project. With customary Scottish prudence, it has bought three
second-hand 225 kilowatt turbines, which were dismantled on their site in
Cumbria and rebuilt on the island. Electricity generated on Gigha will be sold
to a registered power supply company.
Funding
for the wind farm has been raised through:
- A Social Investment Scotland loan of
£148,000.
- £50,000 from the Big Lottery Fund's Fresh
Futures
- £40,000 from IGHT reserves.
- £82,000 grant from the Scottish
Executive's Scottish Community and Household Renewables Initiative (HIE).
In addition, HIE is buying shares in the wind farm worth £80,000. The Trust
is committed to buying the shares back by 2009 with revenue from the project.
Tackling housing problems
The Trust has responded swiftly to the Gigha’s housing problems. It owns 41
of the 67 houses on the island and took an early decision not to sell any of
them. Residents who were tenants of the previous landowner are now tenants of
the Trust. Before buy out, only one house had been added to the island’s housing
stock in 34 years. The housing stock, generally, had been badly neglected.
The island saw a housing sea change in 2004. Work began on a £3 million
housing improvement programme funded by a housing improvement grant and 20-year
loans.
Meanwhile, Fyne Homes Housing Association is building 18 new homes, 16 for
rent and 2 for shared ownership on land bought from the Trust for £150,000.
Local people or those moving to the island to live and work will be given
priority. Income from the sale of the two shared ownership homes will
cross-subsidise the cost of the rented homes.
The Trust has set up a construction consortium as a joint venture with Fyne
Homes and three local builders to carry out the improvements and build the new
homes. Building apprenticeships will be created, and a small island quarry will
be opened to provide local materials for the work and create new jobs.
Fund raising
The success of the Gigha community has been marked by a successful search for
funding to underwrite the regeneration of the island. Money has been found in
various pots of Government funding, the Lottery and the sale of the Big House.
The people of Gigha have raised more than £200,000 through a huge range of
activities, among them coffee mornings, ceilidhs, sponsored balloon races and
pantomimes.
The past two years have been a challenge for island, Willie McSporran, MBE,
Chairman of the Trust, told The Independent in July 2004.
‘It has been a difficult couple of years, but it will be worth it. Nobody can
realise what a community like this can suffer through bad lairdship. But
whatever happens now, the island can never be sold again. Children on the island
can be secure that a laird will not come along and sell of their homes for
profit’.
More information: Alan Hobbett, Development Manager, IGHT
Land reform in Scotland
The islanders of Gigha were pushing at an open door when they sought the
Government’s help to buy their island. Legislation that would finally be
approved in 2004 as the Land Reform (Scotland) Act was high on the Scottish
Executive’s agenda.
The Act introduced a Community Right to Buy that gives local groups in rural
areas anywhere in Scotland first refusal to buy the land where they live when it
comes up for sale. However, they have to prove a buyout will contribute towards
the sustainable future of their community and is not a negative attempt to block
new development.
Almost all of the Highlands and Islands outside Inverness are covered by the
Act, which gives communities with a population up to 10,000 the right to buy. In
crofting areas, the law goes further. Landlords can be forced to sell their land
where it can be shown it will be beneficial to the community.
Under the Act, landlords are theoretically guaranteed a fair market price. In
each bid the community must raise about 6 per cent of the purchase price. The
lion’s share is provided by the Scottish Land Fund (SLF), which makes grants and
repayable loans available from its treasure chest of £15 million of Lottery
money. Repaid loans, like that honoured in only two years by the people of
Gigha, go back into the fund to help other communities.
The inspiration for the reform was The Assynt Crofters' Trust, which bought
the 21,000-acre North Assynt Estate in 1993 for £300,000 from a Swedish property
company. A total of 120 families live and work in 13 crofting townships on the
estate. The biggest buy out so far was completed in 2003 when the community of
North Harris completed the £4.5m takeover of the 55,000 Amhuinnsuidhe Castle
estate.
The idea is spreading like a fire in the heather. Islanders on the
93,000-acre South Uist estate in the Western Isles have been awarded £7,000 to
conduct a feasibility study into what could be Scotland's largest community land
buy-out. The estate comprises the islands of Eriskay and South Uist and a large
proportion of Benbecula.
The SLF has awarded similar grants to communities in Lewis, Harris and South
Lanarkshire to fund investigations into community buy-outs.