Notes from Meeting held in Garve Village Hall 27th October 2009. (Received for publication 3 February 2010)
Purpose of meeting:
To discuss options for setting up trust or similar body to administer Community Benefit.
Bob Cameron, Corporate Manager with Highland Council welcomed those attending and gave a brief outline of the purpose of the meeting, which was to look at mechanisms to manage community benefit.
Robbie Bain, Ward Manager, Highland Council outlined the discussions to date with the developer Infinergy (Lochluichart). It has been agreed that the Community will be paid £2750 per mega watt of installed capacity; the wind farm will have 17 turbines producing 51 mega watts. It is not proposed that the project will start until 2012/2013. The Community Benefit will be paid for the 25 years life span of the project. During discussions with the developer and Highland Council they decided on using the concentric circle method, which means that the following Community Council areas would receive the following, Garve 89%, Contin 3% and Marybank, Scatwell & Strathconon 8%. Legal agreements still have to be finalised with developer.
There are various options for setting up a “trust” for Community Benefit. One option is to set up a Company Limited by guarantee with charitable status, and have nominations and elections to form a board. This might mean that only those residents in the area who are on the electoral roll (edited version) would be eligible for nomination and election.
A further option is to use an organisation that is already in existence such as the Scottish Community Foundation (SCF) who acts on behalf of communities to deliver community benefit; this would still mean that a board/panel would be formed from the Community to act as directors. SCF would obviously charge fees for their management services.
At the end of the meeting it was agreed to seek a presentation from SCF.
Questions
Q During discussion you said that the monies were splint in a pre-determined way, 89% Garve, 8% Marybank and 3% Contin. You said that monies should be kept as one fund.
A Money can be managed in any way.
Q Any reason why benefit is not restricted to Garve only?
A No official reason.
Q Does the 15Km area determine the wind farm.
A No that is the area of the concentric circle.
Q One Community then benefits twice from wind farms.
A There is no way to resolve this with the number of wind farms in the area.
The concentric circle system is based on guidance from Scottish Government. It makes for an open process. It is based on the visual impact.
Q Is it possible to adopt the circle but exclude those who are already benefiting from other wind farms.
A The developer could insist on an alternative approach.
Q Have you any advice on how to avoid problems which have occurred with other funds.
A There have been problems when a deal has been completed between 2 communities and then an extension has been applied for and granted but the extension was not on the original community’s area.
Q With the prospect of another wind farm, who will negotiate this?
A Council does not have to, one recommendation would be that any “trust” that is set up takes into account future developments.
Q As there is currently a consultation of the boundaries of Community Councils, what will happen with any agreement that is in place i.e percentage split.
A Agreement would have to state the boundaries that are currently in place.
Q If fund was kept for Garve, could Garve grant funds to other Community Councils?
A This would mainly be up to the board, but the organisation would have to allocate the funds as laid down in its constitution.
Q I am not on electoral roll as I have ticked box, how do I get back on.
A The register is published on 1st December each year and the registration forms are circulated in the October/November period. Changes of address can be notified at any time.
Q If the money is being managed by a board would they be paid?
A Understanding is that you are not paid, being a trustee is usually voluntary.
Q Has Highland Council completed a full negotiation to its final point.
A Yes we have done others
Q Which system works best?
A All have been different, most involving smaller sums of money.
Q Has concentric circle approach been adopted at other negotiations?
A Yes, used in a number.
Q How many schemes has the council assisted in and do they represent best practice?
A There is no published list to compare.
Q In the circle format is it the population within the circles or the inhabited households?
A Inhabited households.
Q Was council involved in Fairburn negotiations and was the circle format used?
A No, the Council was not involved. They used different method; they have included communities who would be disturbed during the construction phase for example.
Q If a Local body is set up who looks after this.
A You would control appointment of directors etc – best set up as charity then it can be controlled by the Office of the Scottish Charities Regulator.
Q Is election the most appropriate method to enable a suitable spread of skills.
A One of the advantages of using a body such as the SCF is that they have a large skills base which could be used along with local knowledge of community members.
Q To the Marybank, Scatwell & Strathconon CC representative – have you set up a trust and if so how was it done?
A Not as yet – they have involvement from SCF. They do have restrictions in place from developer.
Points made – no direct question.
* How do you get accountability? Meetings should be minuted and available to the public.
* Man who started fund is offering his help, community member felt he should be talked to.
* Lochluichart Community Trust – member felt this was a good name for “trust” another member felt that this was not and should be an all encompassing name.
* If money is split it should be a clear split – other Community Councils should be given their share each year.
* Developer has not stated what money can be spent on but it cannot be spent on any facilities or services that Highland Council would normally provide, promotion of political/religious groups or anything against the interests of the windfarm.
* One member of the community felt that it would be wise to keep monies separate and hand over monies to other Community Councils to keep within their own Community. He had some experience of being a trustee and pointed out that it was difficult to put funds aside while maintaining charitable status and this also made it difficult to claim grants from organisations such as the Lottery. Setting up a Company Limited by guarantee was not expensive.