This item was published during the term of a previous administration that ended in April 2007
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Crofters first to benefit from job relocation
28/10/2002
A review of the Crofters Building Grants and Loans
Scheme (CBGLS) is to be the first step in a process that
could see public service jobs relocated to the Highlands
and Islands or other rural areas.
The Convention of the Highlands and Islands in Oban
today heard that - following a review of the scheme early
next year - the administration of the scheme is a candidate
for relocation to the Highlands and Islands.
First Minister Jack McConnell said:
"Relatively small numbers of jobs can make a big
difference to communities in rural areas and modern
technology means that these areas should not be
disadvantaged solely because of their remoteness.
"The CBGLS review is an example of what can be achieved
and there is no reason why jobs like these should not be
based in Scotland's crofting heartland.
"The 10 jobs here are the first to be identified under
the review of our relocation policy, announced earlier
today, which I hope will benefit communities throughout
rural Scotland. I believe our review of the relocation
policy firmly demonstrates our commitment to sharing the
benefits of public sector employment throughout
Scotland."
Environment and Rural Development Minister Ross Finnie
told the convention that he wanted to review the rates of
assistance for building croft houses, and consider whether
new people, previously excluded from the scheme should
benefit. There will be a public consultation to determine
the future shape of the scheme.
Mr Finnie said:
"CBGLS is recognised as a very cost-effective way of
providing housing in the Highlands and Islands, and we want
to keep it that way. We want to work with crofting
representatives and others to make further improvements to
the scheme, particularly in targeting it at the right
people, within financial constraints."
To improve and maintain the standards of crofter
housing, Ministers provide grants and loans to crofters
towards the erection, improvement or rebuilding of dwelling
houses, and thereby help retain the population in remote
areas.
CBGLS is a discretionary scheme in which there is no
automatic entitlement to assistance and where each
application must be decided on the merits of a number of
considerations. In CBGLS, grants of £11,500 are available
for building a new house and £2,000 for improvement of
existing houses. Loans of £17,500 and up to £10,500
respectively are available at a fixed 7% interest rate over
periods of up to 40 years for new houses and 20 years for
house improvements. The total assistance available under
the Scheme for someone building a new house is £29,000.
While assistance for a new house was changed from a
percentage basis to the maximum 3 years ago, arguably it
has been 12 years since these rates were increased.
Total grant and loan assistance paid out in recent years
-
1998/99 1999/00 2000/01 2001/02
£2.3m £2.3m £2.3m £2.7m
There are several aspects to the work of administering
CBGLS. Many of these are already handled by the nine SEERAD
Area Offices in the Highlands and Islands (e.g. authorising
and managing payments of grant and loan, technical checks
on progress of supported building projects, and ensuring
compliance with conditions of grant).
The work of considering grant and loan applications, and
of pursuing loan repayments, is undertaken in Edinburgh by
nine FTE staff. Six staff process applications and three
deal with loan repayments and arrears. This can be complex,
involving consideration of a number of criteria, discretion
in making decisions and sometimes liaison with legal
advisers. It is the work currently undertaken in Edinburgh,
which will be considered for relocation.