Tag Archives: financial management

The Crofting Bat Phone

The Crofting Bat Phone

Commissioner Gordon and Batman didn’t have a look in to the lines of communication available between the Crofting Commissioner(s) and their Grazings Constable!

There have been quite a few comments of late about the difficulties of getting a statement from the Convener of the Crofting Commission, Colin Kennedy. He is elusive to say the least and seldom represents the views of the Board to the general public despite this being one of his “particular responsibilities” .

Other Commissioners have been thin on the ground of late as well with no Commissioner replacing the Convener when he failed to attend the Scottish Government Crofting Stakeholder Forum in Inverness on Tuesday. This left the Chief Executive, Catriona Maclean, representing the views of the Commission in front of BBC Alba after the meeting.

Getting clear and unambiguous information out of Commissioners when you can pin them down is also often a challenge.

One person who seems to have direct access without difficulty to Commissioners (which might include, or indeed mean, the Convener) is the Grazings ‘Constable’ of Upper Coll, Colin Souter. He certainly appears to be in possession of information that only Commissioners would have and that well in advance of such information being made available to anyone else outside of Great Glen House.

One example of that became clear at the meeting of the Scottish Government Crofting Stakeholder Forum in Inverness on Tuesday.

I had been aware from the published Agenda that the Board of the Commission had considered a paper at their meeting on 17th August on ‘Grazings Committees – A Practical Approach to the Management of Common Grazings’. There was no mention of that at the Stakeholder Forum so I enquired about it.

I was advised that the Crofting Commission was setting up a Stakeholders’ Working Group to advise on the revision of common grazings regulations and guidance. This paper from 17th August would be considered by that group at a meeting on 20th September. Only after that meeting would the paper in question (possibly after refinement? – but that was not made clear) be circulated to the wider Stakeholder Forum.

So at the moment members of the Stakeholder Forum had no knowledge of or access to what the paper in question said. A stark contrast to the access to that paper apparently afforded to Grazings ‘Constable’ Colin Souter.

In the letter issued by Colin Souter to Shareholders of the Upper Coll Common Grazings on 29th August he states:-

The Board of Commissioners at a recent meeting, considered a submission along the lines I set out at the July meeting, whereby Committees can operate within a defined financial framework which allows retention of funds (from any legitimate source) in the bank, up to a maximum agreed by shareholders, taking account of any commitments under Schemes and projects ongoing and an Emergency Reserve (set at perhaps 3-4 times the 3-year average annual maintenance costs) and exceeding that amount automatically triggers payment to shareholders, three or four times a year. In doing so, the administrative burden is minimised for the Committee and they are seen to be operating within an agreed and better regulated financial framework. Whilst the Commission has a clear role, as regulator, in ensuring feu monies are distributed to shareholders, I understand it does not otherwise seek any direct involvement in other areas of finance affecting shareholders. The proposal tabled is seen as an initiative worthy of testing, for the benefit of Upper Coll and the wider crofting community but it is a choice for shareholders to make.

So even before the Commission has had the first meeting of its new Stakeholders’ Working Group, to advise on the revision of common grazings regulations and guidance, Colin Souter is seeking to impose the guidance so far produced (that no one other than Commissioners, Commission Officials and Colin Souter have seen) upon one particular Common Grazings, namely Upper Coll.

The same is true about his access to an Opinion from Queen’s Counsel which it is presumed was instructed by the Crofting Commission. In his said letter to shareholders at Upper Coll he said:-

Following receipt of legal opinion from Queen’s Counsel, the position of Grazings Committees being able to register for VAT as trading entities in order to reclaim VAT has come under scrutiny. The dialogue with HMRC regarding VAT status remains ongoing and once concluded, I will be able to advise on the outcome.

When I asked about this opinion at the Crofting Stakeholder Forum there was “no comment” from the Chief Executive of the Crofting Commission on behalf of the Board.

It is highly unusual for the Crofting Commission to publish legal advice received by them in any event.

On the topic of legal advice: Colin Souter seems very ready to challenge what he considers to be illegal activities at Upper Coll. It would be very unusual for a clerk in a common grazings (that is effectively what Colin Souter is had he been legally appointed) to appear so sure about crofting law without having sought legal advice. Not that I would give much weight to any advice that Colin Souter is getting given, in my view, a clear misunderstanding on his part as to what the law actually is.

We know that he thinks that legal advice cannot be paid for from grazings funds. So where is he getting his crofting law advice from? Is it likewise coming from Commission officials and/or from Commissioners and/or from a Commissioner? An organisation with a Board that has been shown to ignore the law and lawyers.

Why and how did one grazings clerk (i.e. Colin Souter) get privileged access to all of this information before any other grazings clerk in the land and before the members of the Crofting Stakeholder Forum? In the case of the opinion from Queen’s Counsel this may never be divulged to any other grazings clerks or to any members of the Crofting Stakeholder Forum.

The only explanation can be direct and special contact between him and a Commissioner and/or Commissioners and/or officials within the Crofting Commission.

So much for the assertion that he is acting at arms length and independent from the Commission.

It also again highlights the fact that he is under the control of and acting at the behest of the Crofting Commission. A reader of this blog having referred to him as a “maor” (or ground officer).

Serious questions must be asked by the Scottish Government about this arrangement and, in the circumstances, the validity of any pronouncements by the Crofting Commission and/or their ‘Constable’ over the situation at Upper Coll.

The Crofting Commission will no doubt say that the Scottish Government cannot investigate the situation when it is subject to on going court proceedings. Those court proceedings may touch upon the legality of the appointment of the Grazings ‘Constable’ in the first place.

But even if we take it that the appointment was legal (although that is denied) then the Scottish Government should be looking at the propriety of the relationship that exists between such a legally appointed grazings constable and the Crofting Commission.

Is it correct and proper that he has been given an investigative remit? Is it correct and proper that he is being supplied with the information that he has been? If it is not then who gave that remit and/or supplied that information?

If that was a Commissioner are they therefore, in all the circumstances, “unable or unfit to exercise the functions of a member” or “unsuitable to continue as a member”? As such should the Scottish Ministers remove them from office under and in terms of the Crofters (Scotland) Act 1993?

Even worse if it were to transpire that it was the Convener who was embroiled in all of this. After all he has, for some time, been the subject of complaints about his handling of the affair at Upper Coll and so should not be involving himself in matters concerning Upper Coll until the relevant complaints process has been completed. To do so would be a clear conflict of interest. But there again that has not stopped him before.

Brian Inkster

Image Credit: The Bat Phone from Batman (TV Series) © Greenway Productions / 20th Century Fox Television

Not a Grazings ‘gamechanger’

Not a grazings gamechanger

The new, badly programmed, Robotic Grazings Cop introduced by the Crofting Commission unfortunately did not prove to be a gamechanger!

This week’s front page headline in The Scottish Farmer is Grazings ‘gamechanger’.

The news item by Gordon Davidson states that:-

New evidence has been revealed that appears to justify the Crofting Commission’s unpopular intervention in the financial affairs of a common grazings committee.

Colin Souter, the constable controversially appointed to replace the grazings committee at Upper Coll, on the Isle of Lewis, this week wrote to all its shareholders itemising examples of that committee’s “arbitrary decision making” on how shareholders money was spent.

Quite the contrary is in fact the case.

A proper analysis of the ‘findings’ of Colin Souter demonstrates his complete lack of understanding of (a) what the role of a legally appointed grazings constable is (he, of course, being illegally appointed); (b) crofting law; and (c) duties and responsibilities that a grazings constable has towards shareholders in the common grazings.

It also, alarmingly, exposes the true relationship between Colin Souter and the Crofting Commission. More significantly it also exposes a new scandal to hit the Crofting Commission, namely (assuming that Colin Souter is not solely behind it) their attempt to deprive common grazings of finance by seeking to prevent them being VAT registered.

This follows hot on the heels of revelations that the Convener of the Crofting Commission, Colin Kennedy, was seeking to prevent common grazings from receiving SRDP funding!

This attempt by the Crofting Commission and/or their Convener to meddle once more in matters that have nothing to do with their role as a regulator and seek, in so doing, to deprive crofters of finance is the real story here. That is the story that should have made front page news in The Scottish Farmer had Gordon Davidson been tuned into the actual facts involved or had contacted myself or former committee members at Upper Coll for a truer picture. Instead he appeared to rely only on the word of Ivor Matheson (the aggrieved crofter who originally complained to the Crofting Commission) and the misguided ‘findings’ of an illegally appointed grazings ‘constable’.

In subsequent posts on this blog I will consider some of the more salient ‘findings’ by Colin Souter and expose them for what they really are. I will also look at the cosy relationship that Colin Souter appears to enjoy with the Crofting Commission and the real significance of what could easily be referred to as Crofting VATgate.

Brian Inkster

Image Credit: Robocop © Orion Pictures

Update – 4 September 2016: Crofters and Lawyers + The Wrong Grazings Committee!

Reports from a ‘Grazing Constable’

 

Reports from a Grazings Constable

The ‘Grazings Constable’ was under the false impression that he was a Police Constable come Court Reporter!

One of the more surprising episodes of ‘The Common Clearances‘ has been the issuing of press releases by the ‘Grazing Constable’ (illegally appointed, in my opinion and the opinion of others) of the Upper Coll Common Grazings.

To my knowledge that ‘Grazings Constable’, Colin Souter, has issued three such press releases to date. I now reproduce those here, with my comments on each added.

‘Grazing Constable’ Report #1 – 12 June 2016

I write briefly in connection with the Common Grazings at Upper Coll, having been appointed as Constable in recent weeks, by the Crofting Commission.

I should firstly stress such appointees are independent of the Commission. One of the main functions is to assume the role and responsibilities of the former Committee, representing the interests of the Crofters, whilst moving as swiftly as possible back to a situation of normality, with crofters being collectively in control of managing their own interests.

I am confident readers will appreciate the resolution to current difficulties will not be achieved overnight. I note there has been much interest, speculation and comment made on behalf of individuals who, I acknowledge, feel genuinely aggrieved with decisions the Commission has made.

On the other hand, it is only right and proper that the Commission, as a public body, should not comment on the specifics of any individual case.

Preliminary legal proceedings are currently underway at the Scottish Land Court, where it remains to be decided if the Appeal against Commission decisions will progress to the next stage. An Interim Interdict application at Inverness Sheriff Court to prevent the appointment of a Constable and further action by the Commission, was heard and refused.

It is likely that the process of the Land Court Appeal, if progressed, will take some considerable time to conclude. I will not be formally commenting in the media on the specifics of matters at Upper Coll, nor in relation to any single individual.

I do however wish to publicly acknowledge and thank those individuals at Upper Coll and elsewhere who have already contacted me since my appointment, to firstly share a collective view that there are matters at Upper Coll which need to be addressed and secondly to voice their support for a co-operative resolution over the coming weeks and months. All impartial observers must surely agree it is in the best interests of all parties to co-operate, to ensure the interests of all the crofters at Upper Coll are and continue to be properly protected.

Comment on ‘Grazing Constable’ Report #1by the Crofting Law Blog

Why, I wonder, did Colin Souter feel it necessary to issue such a statement? Was it because the Crofting Commission were staying silent on the matter? Did they sanction/encourage this statement?

How independent can Colin Souter really be? Did the Crofting Commission not provide him with a list of their ‘concerns’ for his investigation?

He has apparently stated to the shareholders at Upper Coll that his role is an investigative one. Nothing in the Crofters (Scotland) Act 1993 gives him such power other than, perhaps, the duty to report to the Crofting Commission on the condition of the Common Grazings and crofts with a share in the Common Grazings.

If investigations were required concerning any alleged financial impropriety on the part of the former grazings committee that would have been a role for the actual boys in blue and not for a retired police Chief Inspector who appears to think he, once more, has powers he once did. He does not.

If legally appointed, which is disputed, Colin Souter simply has to take on the role of committee and clerk. He is responsible to the shareholders. His role is purely administrative.

‘Grazing Constable’ Report #2 – 23 June 2016

On the evening of 22 June the Constable of the Upper Coll Common Grazings chaired a meeting of shareholders at Tong Village Hall. The meeting, which was well attended, discussed a number of issues and during the closed part of the meeting, the Constable, Mr Colin Souter shared a level of detail around issues and concerns which was clearly unknown to many of those present, prior to the meeting.

Mr Souter, a retired police Chief Inspector explained to the meeting that his appointment followed a communication to the Commission by the former Clerk to the Grazing, highlighting that 12 points of business needed to be addressed as soon as possible.

Mr Souter also explained that the Crofting Commission, as a public body, is unable to comment in the media on issues relating to specific individuals and their conduct but that being independent of the Commission, it was appropriate for him to share more information with the shareholders affected. At the meeting, he received further joint intimation in writing from Upper Coll shareholders, of their dissatisfaction with the conduct of the former Committee and will determine in due course whether that should be considered separately from other matters currently under investigation.

The meeting acknowledged the current position as laid out and discussed a constructive way forward, with a revised set of draft local Grazing Regulations being circulated by the Constable to all shareholders at Upper Coll to replace the current Regulations which date back to 1987. Mr Souter is also inviting contributions and comment more widely, from the Scottish Crofting Federation and National Farmers Union Scotland, as representative bodies, in an effort to secure a wide consensus of agreement. He intimated to the meeting that he was, very reluctantly, being forced to consider Court action as a last resort, in order to recover the Committee records from the former Grazings Clerk. A large number of those shareholders present expressed the view that withholding the records was not helping, declaring that it was acting against the interests of the shareholders and instead invited former Committee members to bear the cost of the Court action, should it go ahead.

The meeting closed on a positive note with an expression of thanks to Mr Souter, from the floor, for an open, informative and well-run meeting.

Mr Souter later said, “I appreciate there is a wide body of interest in events here at Upper Coll. I would like to publicly express my own thanks and appreciation to Upper Coll shareholders able to attend the meeting tonight, for their positive contributions and their willingness to begin moving forward to the point where a new Grazing Committee can be elected. Whilst that outcome is still in the distance, it has moved significantly closer, with a clearer path now defined, and shareholders having a better understanding of the concerns and the issues which brought us to where we are now.”

Note to Editor – the Upper Coll Grazings Committee was removed from office by the Crofting Commission on 15 April after failing to adequately address concerns raised by the Crofting Commission about the manner in which aspects of its business were being conducted, including the content and presentation of financial information reported to shareholders. On 16 May, some former committee members made an unsuccessful attempt to interdict the Crofting Commission from further action at Upper Coll. This was followed by submission of papers to the Scottish Land Court, seeking to Appeal against the Commission’s decision to remove them from office. The Land Court is currently awaiting submissions on jurisdiction from both sides, to help determine whether it can hear the Appeal. If the jurisdiction argument is won, the case will become sub judice until eventually concluded.

Comment on ‘Grazing Constable’ Report #2 by the Crofting Law Blog

I wonder if Mr Souter thinks that all grazings clerks should be issuing press releases about shareholders meetings held throughout the crofting counties? Local newspapers could have sections devoted to ‘Common Grazings Reports’ instead of, or in addition to, their usual ‘Court Reports’!

Where did the “issues and concerns” that Mr Souter had to share come from? I trust not from the Crofting Commission that he is apparently independent of?

Interesting that the Crofting Commission cannot comment on matters arising to the media but Mr Souter can. Has he therefore become their spokesman and if so how does that enable him to retain the supposed independence that he claims to have?

Mr Souter refers to “matters currently under investigation”. As commented on by me in connection with his first Report, his role is not an investigative one but merely an administrative one and then only if his appointment was legal which I, and others, maintain it is not.

Why was Mr Souter circulating new Grazings Regulations and who had drafted them and on what basis?

It would seem unusual for a Grazings Clerk to seek views from the Scottish Crofting Federation or the National Farmers Union Scotland on Grazings Regulations specific to a particular grazings.

Court action by a potentially illegally appointed ‘Grazings Constable’ to recover documentation he might have no right to hold would have made for interesting debate in the Sheriff Court! A suggestion that those against whom such an action was to be raised should fund the raising of the action is absurd to say the least.

Why is the election of a new Grazings Committee in the distance? What is preventing that happening sooner rather than later?

Is it perhaps in Mr Souter’s personal interest to delay the election of a new Grazings Committee. The longer he remains in ‘office‘ the longer he receives an income from the arrangement – albeit potentially an illegal arrangement that he should not actually be receiving a penny for.

Mr Souter states that “the Upper Coll Grazings Committee was removed from office by the Crofting Commission on 15 April after failing to adequately address concerns raised by the Crofting Commission about the manner in which aspects of its business were being conducted, including the content and presentation of financial information reported to shareholders.”

However, the only reason actually given by the Crofting Commission for the ultimate removal from office of the grazings committee was the failure to produce to them five years ‘audited’ accounts. The grazings committee produced financial statements produced by accountants. The irrationality, inconsistency and departure from legal advice obtained by the Crofting Commission on this point is one I will return to in future posts on this blog.

‘Grazing Constable’ Report #3 – 12 July 2016

Upper Coll shareholders met again on 11 July at a meeting chaired by the Grazings Constable, Colin Souter, who was appointed by the Crofting Commission in May. At this second meeting, shareholders covered a busy Agenda on a range of topics, including the resolution of a long-standing issue on the access of a bull owned by two shareholders, on the common grazings. Shareholders accepted the pragmatic resolution suggested by the Constable, which preserves shareholders rights to graze livestock but at the same time, acknowledges the responsibilities that go with these rights.

Shareholders also voted in favour of a revised set of Grazing Regulations which would encompass key elements of the previous regulations which dated back to 1987. Mr Souter hoped the final draft of the document which had already been subject to wide-ranging consultation would be ready to send to the Crofting Commission for approval, in the next few weeks. During a candid and honest discussion, some of those present, including former Committee members advised they had been entirely unaware of the existence of the 1987 Regulations.

After the meeting, Mr Souter said, “The key to progress here is an acceptance from shareholders that good Regulations make it easier for shareholders and for Committees to interact and minimise the potential for friction or conflict. We are nearly there, in terms of a finished product and whilst there are still a number of other issues for me to resolve with shareholders, we are steadily moving in the right direction. I am grateful for the support shown by shareholders this evening, in voting to move ahead.”

A number of other issues, including finances and areas of activity permissible for a Grazings Committee or Constable on behalf of shareholders, under the 1993 Crofting Act were explored in a closed session. No date was set for the next meeting, with Mr Souter indicating he would distribute a final updated draft set of Regulations amongst all shareholders. And once approved by the Commission, every shareholder would receive a personal copy of the revised Regulations.

ends

Note – Mr Souter is a retired police Chief Inspector, appointed to the role of Constable at Upper Coll after the previous Committee were removed from office by the Crofting Commission. Following their removal, it was reported to the Commission that shareholder business remained outstanding and unresolved. Whilst he is appointed by the Commission, Mr Souter has successfully gained acceptance that he is independent of the Commission in all his decision-making.

Comment on ‘Grazing Constable’ Report #3 by the Crofting Law Blog

I asked shareholders of the Upper Coll Common Grazings for their views on this latest Report from Colin Souter. Here is a selection of comments received from them:-

  • The new regs would certainly have to come before shareholders again before being submitted. There will be nothing to stop us bringing in further changes at a full meeting of shareholders at a later date if that is needed.
  • The Grazings Regulations are at the “discussion” stage and still have much work to be done on them. There was no revised Regulations issued with no mention of changes some of us suggested. They are far from being at a stage for presenting to the Commission.
  • The constable has thus far refused to protect the interests of shareholders by bringing any scrutiny to bear on the  Commission’s own dubious actions of the recent past. This goes to prove that he is not wholly independent of the Commission and shows that he who pays the piper calls the tune.
  • The majority of shareholders are still of the view that the position of Constable has been illegally imposed on the Upper Coll Grazings. These shareholders do not have any personal prejudice against Mr Souter but it is his position they question.
  • Shareholders were of the view that the Constable should be working “for” the shareholders and should therefore be working to see that some of the injustices done to the previous Committee are redressed. As he seems to be investigating the work of the previous committee then this “investigative” role should also be targeted at the Crofting Commission’s actions.
  • The minute of meeting of the 11th should also clearly show that we considered that the Commission had erred greatly in dismissing a democratically elected voluntary committee when they had legal obligations instead to advice and support it in the first instance. We suggested that this is going to be costly to the Commission.
  • The meaning of “audit” given by the Constable is not one shared by the vast majority of shareholders.
  • It is felt by the majority of shareholders that the term “financial irregularities” used by the Commission in relation to the Upper Coll Grazings Committee should be withdrawn and an apology issued to the committee by the Commission.
  • Mr Kennedy’s continued presence as Convenor of the Crofting Commission is in the opinion of the majority of shareholders untenable.

So clearly a different slant on things from the propaganda issued by the ‘Grazings Constable’. This demonstrates the nonsense of the whole situation.

Why is Colin Souter seeking to introduce new regulations? What is wrong with the existing ones other than perhaps the use of the word “audit”, which has caused much of the problems encountered by the former committee in their dealings with the Crofting Commission?

The former grazings committee were actually in the process of amending their regulations prior to being removed from office by the Crofting Commission. Why did the Crofting Commission not allow them to amend the regulations as they wished to do so?

Are the Crofting Commission influencing the new regulations proposed by Colin Souter? Do these new regulations follow the latest template promoted by the Crofting Commission which do not actually reflect the law as set out in the Crofters (Scotland) Act 1993?

Mr Souter refers to his “decision making”. What ability does he actually have to take decisions that are contrary to the wishes of the shareholders?

Mr Souter states:-

No date was set for the next meeting, with Mr Souter indicating he would distribute a final updated draft set of Regulations amongst all shareholders. And once approved by the Commission, every shareholder would receive a personal copy of the revised Regulations.

This suggests that Mr Souter is going to finalise the draft Grazings Regulations without necessarily calling a meeting to approve them. He appears to simply be planning to get the approval of the Crofting Commission. If this is indeed the case it is outrageous.

However, it should always be borne in mind that Mr Souter’s appointment was, in my view and the view of others, illegal and any action taken by him is simply null and void.

Brian Inkster

You might think that, I couldn’t possibly comment

You might think that, I couldnt possibly comment - Common Grazings Crisis - Crofting Commission - Scottish Government

There comes a point where actions speak louder than words

To date the Cabinet Secretary for the Rural Economy and Connectivity with responsibility for Crofting, Fergus Ewing MSP, has not said much on the question of  ‘The Common Clearances‘.

Rhoda Grant MSP asked the Scottish Government:-

whether it is satisfied with how the Crofting Commission has acted in all matters relating to the dismissal of the Mangersta grazing committee.

Fergus Ewing MSP answered:-

The Crofting Commission is a non-departmental public body that takes regulatory decisions within the bounds of its duties and powers. Such decisions are taken independently and at arm’s length from Scottish Government.

Rhoda Grant MSP also asked the Scottish Government:-

whether it will establish an inquiry into the workings of the Crofting Commission.

Fergus Ewing MSP answered:-

The Scottish Government has no current plans to do so.

In addition Rhoda Grant MSP asked the Scottish Government:-

whether it has confidence in the convener of the Crofting Commission.

Fergus Ewing MSP answered:-

The Scottish Government is confident that the Crofting Commission board is able to deliver the functions of the commission.

That may have been the Scottish Government’s position on 27 June 2016. The massive U-turn taken by the Crofting Commission on 29 June 2016 should change that stance.

That U-turn and the manner in which it was executed demonstrates that the Crofting Commission got it wrong. They handled the whole Mangersta affair very badly indeed from start to finish. In light of this there can be no confidence that the board or their Convener is able to deliver the functions of the Commission.

The watershed moment was reached on 29 June. The Scottish Government can no longer sit on the fence. There has been as good an admission as any that the Crofting Commission failed the shareholders of Mangersta. In so doing they failed in their regulatory duties and should be made to account for those failings.

A day before the U-turn representatives of the Scottish Crofting Federation met with Fergus Ewing MSP. Commenting on that meeting the Chair of the Federation, Fiona Mandeville, said:-

We also had constructive discussion on the Crofting Commission crisis. We are very supportive of a majority elected Commission and fear that the common grazings debacle can jeopardise this. We therefore asked Mr Ewing to consider a procedural review of the Commission. At his request, we will send him a note outlining details of our recommendations forthwith.

In the wake of the U-turn, Fergus Ewing MSP should take heed of that request for a procedural review and actually now instigate it.

The Scottish Government can no longer hide behind suggestions that the Crofting Commission are at “arm’s length” from the Scottish Government.

The fact is that the Crofting Commission and their Commissioners are answerable to the Scottish Government.

Under and in terms of the Crofters (Scotland) Act 1993:-

  • The Crofting Commission shall discharge their functions in accordance with such directions of a general or specific character as may from time to time be given to them in writing by the Scottish Ministers. [Section 1(3)]
  • The Scottish Ministers may (a) confer functions on; (b) remove functions from; (c) otherwise modify functions of, the Crofting Commission, where they consider it appropriate to do so to ensure that the Crofting Commission carry out their functions efficiently and effectively. [Section 2A(1) and (2)]
  • In so doing Scottish Ministers may modify any enactment (including the 1993 Act). [Section 2A(3)(b)]
  • The Scottish Ministers may remove a member of the Crofting Commission from office if satisfied that the member is unable or unfit to exercise the functions of a member or is unsuitable to continue as a member. [Paragraph 9(1)(e) of Schedule 1]
  • The Crofting Commission must provide the Scottish Ministers with such information in respect of the exercise, or proposed exercise, of the Crofting Commission’s functions as the Scottish Ministers may, from time to time, require. [Paragraph 20 of Schedule 1]

So, far from being a body that the Scottish Government should consider to be at arms length from it, the Crofting Commission is one that is directly accountable to and ultimately under the control of the Scottish Ministers.

That being the case the Scottish Government should not, like the Crofting Commission, ignore the law involved. They should apply the law, as set out above, as necessary to make the Crofting Commission accountable for their actions over the Mangersta debacle.

Following the U-turn by the Crofting Commission, former members of Mangersta Common Grazing Committee stated:-

We continue to believe that there should be an inquiry into the functioning of the Crofting Commission.

An inquiry is necessary to answer questions such as:-

  • Why did the Crofting Commission reopen a case investigated, resolved and closed by the Crofters Commission?
  • On whose insistence and on what evidence was the case reopened?
  • Was there undeclared conflicts of interest by Crofting Commissioners involved in the matter?
  • What legal advice was sought by the Crofting Commission on the matter? From whom, when, on whose insistence and on what basis? Was such legal advice followed?
  • Why were inconsistencies applied by the Crofting Commission to the handling of this case compared to others being dealt with contemporaneously?
  • Why was the removal from office of the Grazings Committee at the time deemed justifiable and necessary?
  • Why did the Crofting Commission ignore and not respond to the legal position put forward on behalf of members of the dismissed Grazings Committee?
  • Why did the Crofting Commission refuse to revisit their decision (saying that they could not in law do so) but ultimately did just that?
  • Why did the Crofting Commission ignore their own guidelines on the investigation of questions of financial impropriety which they had stated were a matter for the civil or criminal courts?
  • Why did the Crofting Commission purport to appoint a Grazings Constable when there is no basis in law to do so and then sought to extend that appointment, again when there is no basis in law to do so?
  • Why was the particular Grazings Constable in question appointed, on what basis and was a conflict of interest declared by any Commissioners relative to that appointment?
  • Was the Grazings Constable really independent and impartial or was he provided with instructions for the discharge of his appointment by the Crofting Commission?
  • Why did the Convener of the Crofting Commission, Colin Kennedy, attend a meeting of the shareholders of the Mangersta Common Grazings and refuse to leave when a conflict of interest had been declared by him?
  • Why and on what basis in law, when shareholders questioned the legality of the Commissioners proposals at that meeting, were they told that if all shareholders did not accept them, the Commission would not allow shareholders to reform a committee?
  • Did the Crofting Commission’s handling of the matter result in the resignation of William Swann as a Commissioner?
  • Why did the Crofting Commission issue guidelines on the management of grazings funds, then delete those guidelines and claim that they had never said what they had said in them?
  • Why did the Crofting Commission insist that funds had to be paid out by Grazings Clerks to shareholders “immediately” when Roseanna Cunningham MSP, on behalf of the Scottish Government, clarified on 21 June 2016 that “the Crofters (Scotland) Act 1993 does not require the immediate disbursement of funds by a grazings committee”?
  • Why did the Crofting Commission insist on common grazings funds being managed in a way that defied logic and was not set out anywhere in law?
  • Why did the Crofting Commission not take cognisance of the statement by Minister of State for Scotland, Lord Kirkhill, in the House of Lords on 6 April 1976 regarding the Crofting Reform (Scotland) Bill that “there would seem to be nothing [in the bill] to prevent a voluntary arrangement being made whereby any crofter’s share would be diverted to the grazings committee”?

These are questions that the Scottish Ministers can no longer ignore following the recent U-turn by the Crofting Commission. The Scottish Ministers must comment properly on them and, if necessary, take appropriate action under and in terms of the Crofters (Scotland) Act 1993.

The only way that they will be able to properly pass such comment and take such action is following a focused and detailed investigation into how and why the Crofting Commission handled the Mangersta situation in the manner that they did.

That case is no longer ongoing and is not subject to court proceedings. The Crofting Commission therefore cannot hide from, prevent or delay an investigation specifically focussed thereon. Fergus Ewing MSP must now instigate just such an investigation for the future stability, survival and sustainability of crofting in Scotland.

Brian Inkster

Image Credit: House of Cards © BBC

Ignore the law and the lawyers

Ignore the Law and the Lawyers

Hear no crofting law, See no crofting law and Speak no crofting law

I have been blogging for some time about the Crofting Commission ignoring the law.

They have done so in relation to, amongst other things:-

They have, however, this past week made a massive U-turn which could just mean they now actually accept that they did in fact completely ignore the law.

It also, unfortunately, transpired at the meeting of the Cross Party Group on Crofting on Wednesday that they are now simply ignoring lawyers who take a different viewpoint from them and/or represent crofters challenging their stance.

When Commissioner Murdo Maclennan announced that he “thought we have a conclusion” on Mangersta and there was “no grazing constable in place at the moment“, I asked how this could be when I thought that the Commission had purported to extend the appointment of the Grazing Constable (illegally appointed in my opinion and in the opinion of others) for a further six months from and after 6 June 2016.

Chief Executive of the Crofting Commission, Catriona Maclean, interjected that:-

there is no constable at present, the case is over and the people of Mangersta will be advised.

I questioned why they had not advised the solicitor acting of this (i.e. me) and she responded:-

We have been in correspondence with the people of Mangersta and that is who we will respond to.

I pointed out that they had been in correspondence with a solicitor representing former members of the (unlawfully in my opinion) removed grazings committee and they should be responding to that solicitor.

There then appeared to be a reluctant acceptance that I might hear from them!

Astounding.

The Crofting Commission appear to think they can simply bury their ignorance of the law by taking a U-turn and not responding to questions raised by a solicitor concerning that ignorance of the law. The fact that they have acted contrary to the law remains and they do require to answer outstanding points in correspondence that sits unanswered on the desk of their Chief Executive.

They still need to answer, amongst other things:-

  • Where in law it is stated that the Crofting Commission cannot revisit its own decisions.
  • Where in law it is stated that the Crofting Commission has the power to appoint a Grazings Constable when they remove members of a grazing committee from office.
  • Where in law it is stated that the Crofting Commission can extend the appointment of a Grazings Constable.
  • Why the Crofting Commission is ignoring its own guidelines on the investigation of financial irregularities.

Perhaps they do now accept, given that U-turn, that nowhere in law is any of this stated and therefore they are unable to answer my questions. They should, if that is the case, at least have the dignity to say so.

I will let you know if and when the Crofting Commission deign to respond to me.

Brian Inkster

The deleted Crofting Commission post

Rebel Crofters store the data from the Crofting Commission

The Crofting Commission did not bank on the Rebel Alliance of Crofters having the technology to store and retrieve data

In the last post on this blog reference was made to the Crofting Commission deleting its history. The possible purpose for this historical revisionism will become apparent in subsequent posts on this blog. For now we reproduce, for posterity, that deleted post from 25 April 2016 (the Crofting Commission clearly not being technologically savvy enough to completely cover their tracks):-

COMMON GRAZINGS THE RIGHTS OF CROFTERS AND THE DUTIES OF
GRAZINGS COMMITTEES AND THEIR GRAZINGS CLERKS

It seems to me like a very good time to remind shareholders in Common Grazings
what their rights are and what the duties of the Grazings committee and their
Grazings clerk are. The following is a brief overview of the key points that everyone
involved should understand. Many people reading this may think that this is not what
happens in their village and may feel that it is overly bureaucratic but this is what is
contained in the Crofting Acts. If this process is not what is now required then the
only way to address it would be to ensure that any new Act reflects current
requirements. Until then the Commission have a responsibility for regulating crofting
within current legislation.

Shareholders

  • Crofters who share in a common grazing have certain rights over the land. These
    rights, or pertinents, include the grazing of stock, access to a house or pier or
    foreshore, an area for laying up a boat, the right to collect seaware, the right to cut
    peat, the right to use heather and grass for thatching. These rights, shared with
    others, are over the whole area comprising the common grazing. There are also
    certain common Grazings used as arable machairs, particularly in the Western Isles,
    where the crofters may have a right of cropping. The crofting acts state that the only
    way this can be changed is:-
  • If the landlord resumes an area of the Grazings for a reasonable purpose and
    the shareholders are compensated for their loss and obtain a share of the
    development value of the resumed land.
  • An individual gets an apportionment when his souming may be adjusted.
  • If shareholders enter into a forestry project in terms of section 50 or 50A of the
    crofting Act.
  • If the land court has agreed to a scheme for development under section 19A
    which is binding on all parties.
  • If the majority of the shareholders voting and the Grazings committee or
    constable have obtained the Commission’s consent to use part of the
    Grazings for some other purposeful use under section 50B.
  • Through Compulsory purchase by an acquiring authority with powers of
    compulsory purchase under section 37 of the Act, subject to compensation
    and share in the development value as with resumption.
  • By a reorganisation scheme.
  • Any other local Grazings arrangement is not binding on shareholders who, if they
    choose to do so retain the right to graze stock equivalent to their souming over the
    whole Grazings and the committee and clerk should ensure that any shareholder
    wishing to use the Grazings is accommodated.

Grazings Committees

The most important thing that shareholders in a common Grazings need to
understand is that the Grazings committee act as trustees of the shareholders. The
Land Court has stated that:-

..they (that is the Grazings committee) have clear duty to act as trustees of
the WHOLE shareholders in the Grazings and therefore it is their duty to act
impartially and judicially, keep in view what is their paramount consideration
– how the common Grazings can best be administered to the greatest
advantage of ALL of the tenants sharing in the Grazings….

The general responsibilities of the Committee are to:-

  • Make regulations (which require the consent of the Commission and) which
    should in the spirit of their primary duty to accommodate the requirements of
    all shareholders. Regulations cannot themselves curtail the right of any
    shareholder to graze his souming across the whole Grazings other than in the
    circumstances detailed under the paragraph entitled ‘Shareholders’ or to meet
    any specific environmental designations.
  • Hold an annual general meeting and the clerk should give the meeting an
    account of the work of the committee and of the financial position. At this
    meeting the committee should answer the questions of the shareholders
    whom they represent.
  • MAINTAIN the Grazings and any fixed equipment. That is clearly any existing
    fixed equipment such as fences. They can do this without reference to the
    shareholders and they should claim back any costs INCURRED from each of
    the shareholders whether they are actively using the Common Grazing or
    not.
  • Should the committee wish to carry out any IMPROVEMENTS to the Grazings
    they cannot do so unless they have served notice on each shareholder and
    told them how much the shareholder’s proportion of the cost will be. This
    gives the shareholder the opportunity to make representations against any
    such proposal to the Commission.

Financial management

As trustees any money received by the committee belongs to the shareholders and
should be distributed to them as soon as is reasonably practicable. It is NOT the
township’s or the committee’s money and as such it is the duty of the Grazings Clerk
to distribute any money received from whatever source, but in particular
resumptions, according to each individual shareholder’s share entitlement whether or
not they are active crofters.

When the Grazings Committee require monies to maintain the common Grazings
and the fixed equipment or to carry out works for improvements, the committee must
levy and recover the required monies directly from the shareholders for onward
payment to any third parties.

The rights of crofters have been detailed above and there is no explicit provision
in the crofting acts for the Grazings committee or clerk to be involved in the
administration or coordination of schemes falling within the provisions of
IACS regulations. So any involvement or concern regarding this should be directed
to the scheme administrators. Notwithstanding that fact, as the committee are acting
on behalf of the shareholders, any monies received and lodged in the Grazing
Committee Bank Account belongs to shareholders and must be distributed to each
shareholder in accordance with their share entitlement. It is important that all monies
are distributed to all shareholders timeously in order to assist correct financial
accounting by each individual shareholder should they require to make an annual
return to the HMRC.

There is nowhere in the Crofting Acts that allows a Grazings Committee to retain and
spend shareholders’ money on projects, village improvement works, or make gifts or
donations no matter how altruistic the purpose for which that money is to be spent.
Should townships wish to do this they should set up a separate, appropriate,
mechanism to do so and gather in any necessary funds from those willing to
participate.

Finally, I would like to say that the Crofting Commission is keen to see, wherever
possible, that crofting communities regulate themselves. It may be that shareholders
in your Common Grazings were unaware of the law and your committee has not
been being run in line with the requirements of the Crofting Act. If this is the case it
is important that shareholders and the committee hold a meeting to discuss this and
work together to ensure your Grazings Committee functions within the requirements
of the Crofting Acts.

Colin N Kennedy
Convener
Crofting Commission

Image Credit: Star Wars: Episode IV – A New Hope © Lucasfilm Ltd

Update: Is this why the post was deleted?: Oh yes you did!