Tag Archives: Crofting Commission Plan

Common Grazings and the Spirit of the Law

Patrick Krause

Patrick Krause

I continue to catch up with news of ‘The Common Clearances‘ since I returned from holiday. With the amount of new news on this topic being generated daily this week that is a difficult task!

On 25 May 2016 Patrick Krause, Chief Executive of the Scottish Crofting Federation, published a piece on the Federation’s website. I now reproduce it here in its entirety with a small comment at the end from myself on the question of the will of Parliament.

 

The Spirit of the Law
The inexplicable case of a public body confusing legal dogma with good sense 

The Crofting Commission website says “The Crofting Commission regulates and promotes the
interests of crofting in Scotland to secure the future of crofting.” Following the summary
dismissal of two (or more) grazings committees; the foisting of grazings constables upon the
dismembered grazings; the demolition of crofters’ characters; the contradiction and confusion,
it is no wonder that crofters and those with crofting interests are standing agog and are asking
“What is going on in the Crofting Commission?” It is not for me to make any judgement on the
legalities of the fracas that has been taking place over the past month – crofting lawyers are
willingly giving opinion – but I will attempt to explain the essence. Common grazings are the
epitome of communal working, yet this is a spectacularly detrimental exercise in public
relations by the Commission that threatens the very core of crofting communities. I wonder
what the motive is.

One committee was summarily dismissed for not presenting fully audited accounts. Previously
the Commission had issued official guidance that ‘audited’ did not mean fully audited in the
legal (and expensive) sense, but could be taken to mean an independent examination – the
Commission were taking a “light-touch approach”. At the demand by the Commission for five
years annual accounts, the committee presented an independent examination of its accounts,
as is usual for small businesses and social enterprises and is perfectly acceptable to HMRC,
Companies House and the Charities Regulator. They were summarily dismissed for failing the
demand. This subsequent heavy-handed bombshell has naturally caused fear throughout
regulated grazings that they also are in breach for not having fully audited accounts.

A second committee was also summarily dismissed (both grazings then had a constable foisted
upon them by the Commission, which a leading crofting lawyer claims is not legal in these
circumstances), in this case for not distributing income from resumption. Though the only
shareholder asking for his tiny share of the resumption money was an absentee, legally he had
the right to it, we are told by the Commission.

It is hard to understand why this committee was unexpectedly sacked when it had attempted
to pay the absentee, under guidance of the Commission (and the other was also instantly
sacked even though it had seemed to have complied with all the demands of the Commission).
But let’s leave the detail and look at the principle.

The law says that money due as part value of resumption may be paid by the landlord to the
clerk of the committee for distribution by the clerk among the crofters concerned. The law is
not prescriptive in saying when or how the distribution is to take place. The Commission has
added in its regulations the word “immediate”.

For years grazings committees have managed finance in a workable, business-like fashion.
Income generated from anything, such as resumption of land, schemes for development or
through managing agri-environment schemes, is put in the bank. As in any business,
expenditure on carrying out maintenance or improvements is deducted before any profit is
disbursed to shareholders. If a grazings committee was expected to take all income and pay it
out as dividends to shareholders before deducting expenditure, only to then have to recover
from all shareholders their share of the expenditure, it would be a complete nonsense.

Hobbling grazings by making them produce fully audited accounts, when other similar
businesses or voluntary groups don’t, and making them run an unworkable cash-flow, that no
business would, could not have been the intention of the law, but this is what it seems the
Crofting Commission is trying to enforce, presumably at considerable public cost.

The Commission argue that it is only carrying out its interpretation of the law; but why now
and so destructively? If the Crofting Act is wrong (as much of it has proven to be) it could be
put in ‘The Crofting Law Sump’ for future rectification and the Commission could quietly
resolve the issues, rather than turning this into a public, highly-charged stand-off. If it is
enforced, grazings committees cannot comply so will resign (or be dismissed) and the grazings
will leave regulation – unless the Commission then imposes constables on all grazings.

The Commission clearly knows a lot more about regulation than I, and knows what the
consequences of this will be, but are keeping quiet about its objective. How does this fit with
the Crofting Commission Policy Plan in which it says “The Commission regards the shared
management and productive use of the common grazing to be essential for the sustainability
of crofting. To that end it will … work with crofting communities to promote the establishment
of effective grazing committees and will actively support established committees”?

The Convener of the Crofting Commission is implicated in the fracas perhaps more than a
convener ought to be, having had complaints raised against him for behaviour at one of the
grazings meetings and having turned up unannounced at the other. He came to ‘observe’
apparently. The chair would not allow him to participate as he had a conflict of interest, and it
was surely odd that he was allowed to stay at all, this being the case, and it being against the
wishes of crofters present.

The convener has been widely quoted as saying the Commission is to deliver “the express will
of Parliament”. He would do well to go back and look at the passage of the Bill that became the
2010 Act to see what the will of Parliament was. The will of Parliament is not necessarily the
letter of the law, or in this case, the Crofting Commission interpretation of it, if it is bringing
about the demise of regulated common grazings.

Patrick Krause (Chief Executive of the Scottish Crofting Federation)

Comment on the Will of Parliament

Patrick is correct to highlight the fact that the Commission are certainly not delivering “the express will of Parliament”. This is something I will return to in detail in a later blog post with a clear analysis of what the will of Parliament actually is on this issue. This should also, actually, help to spell out the letter of the law on the matter. It should be noted that to date the Crofting Commission has not given any explanation with reference to the law as to why they are taking the stance or actions that they are and have been taking.

Brian Inkster

Update – 20 June 2016: Crofting Commission flouts the will of Parliament

Future of Crofting Conference in Tweets

Future of Crofting Conference - Jean Urquhart MSPI was live tweeting from @croftinglaw yesterday at The Future of Crofting Conference in Inverness. Here is what I tweeted:-

The Future of Crofting Conference gets underway #croftingfuture

Future of Crofting Conference gets underway

Importance of crofting to the economy and need for practical measures to assist being espoused by @JamieMcGrigor #croftingfuture

We can now see but not hear @AileenMcLeodMSP. Technical issues with video sound hopefully be resolved shortly! #croftingfuture

We now have @AileenMcLeodMSP on screen both vision and sound. #croftingfuture

Hearing about @AileenMcLeodMSP’s visits around Crofting Counties (including Orkney and Shetland) and visits to @CroftingScot #croftingfuture

Meant to tweet a pic of @AileenMcLeodMSP at #croftingfuture conference. Here it is:

Aileen McLeod at Future of Crofting Conference

Now hearing from @AileenMcLeodMSP about the Vision for Crofting being formulated by various stakeholder groups #croftingfuture

Discussion by @AileenMcLeodMSP about @CroftingLawSump and taking crofting legislation forward in next parliamentary session #croftingfuture

Importance of young crofters being highlighted by @AileenMcLeodMSP #croftingfuture

Reference by @JamieMcGrigor to @AileenMcLeodMSP being an early SPICE girl! #croftingfuture

Next up @MarkShucksmith #croftingfuture

Crofting “a smallholding entirely surrounded by regulations… OR a model for the 21st century?” @MarkShucksmith #croftingfuture

Four main issues emerged from @MarkShucksmith’s report #croftingfuture

Mark Shucksmith - four main crofting issues

Working the land was the message @MarkShucksmith got over and over again #croftingfuture

Key diagram for better governance @MarkShucksmith #croftingfuture

Mark Shucksmith - Key Crofting Diagram for Better Governance

Regulation half the story need development @MarkShucksmith #croftingfuture

Early cross party support but that turned by some into bin @MarkShucksmith #croftingfuture

Bin @MarkShucksmith’s Report image #croftingfuture:

Mark Shucksmith - Bin the Crofting Report Campaign

Unfinished business @MarkShucksmith #croftingfuture

Mark Shucksmith - Unfinished Crofting Business

Evidence from @MarkShucksmith’s Report still there but does anyone refer to it today? Should still do so when considering #croftingfuture

Report by @MarkShucksmith been translated into Japanese. Norway, Ireland and West Virginia all looking at it. #croftingfuture

Introduction given by @iangeorgemacdo1 in Gaelic. Now speaking (in English) about the ‘new’ Crofting Commission #croftingfuture

Latest @CroftingScot Plan more fully aligned with legislation @iangeorgemacdo1 #croftingfuture perhaps depending on your interpretation 😉

Large amount of cooperation with @coftingscot at roadshows from all stakeholders #croftingfuture

5 main areas to focus on in #croftingfuture….

1. Simplify crofting legislation #croftingfuture

2. Make crofts available to new entrants #croftingfuture

3. Increase affordable housing with meaningful grants and loans #croftingfuture

4. Provide specific ring fenced funding to a lead body to develop crofting #croftingfuture

5. Provide financial incentives through Pillars 1 and 2 #croftingfuture

RT @culcairn Mr Inksters addressing conference #croftingfuture

Future of Crofting Conference - Brian Inkster - The Sump

View from the fank: Young crofters need help with housing and crofters need less forms to fill out. #croftingfuture

Strong sense at #croftingfuture conference that croft mortgages should have been introduced in 2010 Act as originally intended. @scotgov

Get @BillGates to come to crofting counties + use renewable energy on crofts to power @Microsoft servers located in Scotland #croftingfuture

Prof @FrankRennie‘s #croftingfuture presentation ‘The Wider Cultural Context’ is available here:

Now Neil Ross of HIE on Crofting development #croftingfuture

Importance of working together – collaboration #croftingfuture

Future of Crofting Conference - Neil Ross - Collaboration

Now discussing wooly willows in species re-introductions to Scotland #croftingfuture

Panel discussion on crofting development #croftingfuture

Future of Crofting Conference - Panel on Development

More crofts needed #croftingfuture – perhaps reallocating absent and neglected crofts first rather than creating more that may go that way?

How do you actually bring crofting to Moray and Nairnshire? #croftingfuture – no easy answer to that one!

RT @kate4SLB Great quote at #futureofcrofting ‘should do away with the word ‘remote’ – anywhere outside the Highlands is remote for us!’

Only crofters themselves and those that aspire to be crofters can drive the future of crofting @JimHunter22 #croftingfuture

Can buy 200,000 acres of land in Sutherland and no regulation affecting it but not the case with a 5 acre croft @JimHunter22 #croftingfuture

Land Reform the elephant in the room. Crofting not a poor man’s farm. Need to know what we want, clarify that + move forward #croftingfuture

#croftingfuture afternoon session opened and to be facilitated by @JeanUrquhartMSP

Gordon Jackson of @scotgov now looking at the Vision #croftingfuture

Future of Crofting Conference - Gordon Jackson - Vision

Average age of a farmer = 58. Crofter probably a bit higher. #croftingfuture

Hearing about croftingconnections.com -exemplary and of national importance #croftingfuture

Now hearing about @SCFYC #croftingfuture

View from the fank on #croftingfuture is an optimistic one.

Final panel Q&A of the day at #croftingfuture

Future of Crofting Conference - Final Panel Session

Landlords who created crofts made them too small to force crofters into other work as well @JimHunter22 #croftingfuture

Very positive to hear young folk positive about the future of crofting @JimHunter22 #croftingfuture

Need to expand @WoodlandCrofts being discussed #croftingfuture

Commitment from @SCFHq to help create new crofts #croftingfuture

Can create new crofts from large ones. One big croft could be divided into several smaller ones. #croftingfuture

Best time to plant a tree was 30 years ago. Second best time is today. @JeanUrquhartMSP recommends we take action asap #croftingfuture

RT @SCFYC “Let’s not stand back & watch while crofting disappears, we are a vital part of agriculture in Scotland” – Jean Urquhart MSP

#croftingfuture conference comes to an end. Interesting day and look forward to @scotgov action on @CroftingLawSump in 2016.

Brian Inkster

The Crofting Commission now have a Plan

The Crofting Commission Plan is not a cunning one Baldrick

I have a plan so cunning you could stick a tail on it and call it a weasel

The Crofting Commission had six months from 17 March 2012 to prepare and submit a Plan to the Scottish Ministers. I am not sure exactly when the Crofting Commission did so but the Scottish Ministers only approved that Plan today. So more than 15 months after the Crofting Commission elections were held the Crofting Commission now have a Plan. It will be interesting to see whether this brings clarity to their regulatory functions. There will no doubt be future posts on the Crofting Law Blog on specific aspects of the Plan. In the meantime the official line from the Crofting Commission reads as follows:-

After celebrating a first anniversary in April, the Crofting Commission now has another landmark to celebrate, with the formal approval of the Policy Plan for its term of office, by Paul Wheelhouse, Minister for the Environment and Climate Change.

For Convener Susan Walker this marks the end of one period and an exciting beginning. Speaking from Skye Susan said, “We are delighted to receive formal approval of the Plan from the Minister. This is our blueprint for action for the rest of our term in office, as the first Commissioners of the newly created Crofting Commission. The primary focus of our first six months at the helm of the new organisation was spent drafting and consulting on the Plan. It contains our aspirations and ambitions for crofting and reflects our belief that crofting has a significant role to play in things such as population retention. The Plan also sets out our strategic policy and will be underpinned by more detailed individual policies, covering the whole gambit of crofting regulation.”

The Plan stems from provisions in the 2010 Crofting Reform (Scotland) Act, which saw the birth of the Crofting Commission and charged the Commissioners with the task of developing a Plan. As part of that process, the Commission consulted widely on the draft Plan and carefully considered all of the responses received before submitting a final draft to the Minister.

The Plan explains to tenant and owner-occupier crofts, landlords, organisations and agencies involved in crofting, how the Crofting Commission will make decisions on regulatory cases, in line with legislation and why consistent regulation of crofting is important.

In this way, the Commission seeks to balance the interests of crofting communities, landlords, crofters and the wider community – a balance which is essential if crofting is to continue to contribute to the development of some of the most fragile rural areas in Scotland.

There is a particular focus in the Plan on the need for crofting to play a part in retaining population in remote communities, through the occupation of crofts. The Crofting Act requires the Commission to ensure all tenants and owner-occupier crofters reside on or within 32km of their crofts.

The Commission wishes to encourage crofters to use Succession and other regulatory means to increase access to crofts for new entrants.

“People sometimes associate crofting with the past,” Susan Walker observed, “but while an awareness and understanding of the past is important, through our Plan, the Commission has clearly set its sights on the future of crofting”.

You can read the Plan in its full glory here: Crofting Commission Policy Plan (Word Doc)

Brian Inkster

[Photo Credit: Blackadder © BBC]

The time is ripe for a crofting law blog

The time is ripe for a crofting law blogOver the past three weeks eleven crofting law related news items have been posted at inksters.com:-

Crofting Commission halts decrofting process for owner-occupier crofters

Alternative opinion on owner-occupier crofters’ right to apply for a decrofting direction

When (if ever) is an owner-occupied croft vacant?

Call on Crofting Commission to reverse decrofting decision

Inaction over decrofting debacle – what now for crofters?

Minister re-affirms position on decrofting

Decrofting debated on BBC Radio Shetland

Raasay highlights problems with external ownership in crofting communities

Pairc legal challenge rejected

Inksters and Scottish Crofting Federation launch crofting law helpline

Crofting Law in North and South Uist and Benbecula

Most of these (the first seven listed) relate to the decrofting debacle created by the Crofting Commission when they suddenly announced that they were no longer processing applications to decroft made by owner-occupier crofters. The Crofting Commission believes that it is illegal for them to do so based on an interpretation of the Crofters (Scotland) Act 1993 sought and obtained by them from their legal advisers. I have an alternative interpretation on that. I may not be correct. Crofting law is complex and often open to different interpretations. However, given that it is so complex, I do not believe that the Crofting Regulator should cease the work it has been doing, without question, to date and decree that the interpretation that it has obtained is the correct one. Surely that is the job of the Scottish Land Court and should follow on from an actual challenge of the procedures adopted by the Crofting Commission.

A week before the announcement on owner-occupied croft decrofting a more low key announcement was made on a change of policy by the Commission for decrofting and letting applications. This new policy is that all decrofting and letting applications in respect of crofts with multiple owners, must be submitted by all the owners, in their capacity collectively as the ‘landlord’ of the croft, even in those cases where the application related to a part of the croft held in title by only one of their number.This policy announcement has been overshadowed by the owner-occupier crofter decrofting debacle. It is, however, also a significant matter that needs careful consideration as to the consequenses that the Crofting Commission have now unleashed on that front, again as a result of their particular interpretation of the law. We will no doubt look at this in detail in a specific blog post on the Crofting Law Blog.

The Crofting Commission is new, in that it was established on 1 April 2012 to take over the regulation of crofting from the Crofters Commission. For the first time it consists of six Commissioners elected by crofters with the other three Commissioners having been appointed by Scottish Ministers. Only one of the nine Commissioners served on the former Crofters Commission. They have been in power for less than a year and are already making their mark on the world of crofting law even although they have yet to publish their Plan (it has to date been seen in draft form only). Perhaps that should have come first before pulling apart the Crofters (Scotland) Act 1993.

Just before the decrofting debacle began we had the surprise decision by the Scottish Government not to renew the lease of sporting rights to the crofters of Raasay and grant it instead to a company from Ayrshire. This caused uproar and there was a sudden U-Turn by the Scottish Government.

Crofting law appears to be in turmoil in a way that has possibly not been seen since it was introduced in 1886. The time is surely ripe for a crofting law blog to air the issues arising in an open, clear and transparent way.

Brian Inkster