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Parliament approves Agricultural Holdings Bill

12/03/2003

The Agricultural Holdings (Scotland) Bill - viewed by the Executive as a key part of its land reform agenda - was today passed by the Scottish Parliament by 93 votes to 15.

Environment and Rural Development Minister Ross Finnie welcomed the decision by MSPs to back the legislation and said the Bill would provide new opportunities to reinvigorate the tenanted farm sector.

Mr Finne said:

"This Bill is the most ambitious piece of legislation to affect the tenanted farm sector in Scotland for over fifty years. It offers tenants and landowners a firm and secure basis to address new opportunities to gear their businesses to meet the challenges of the 21st century.

"Central to the Bill is the creation of new types of agricultural tenancy which, I believe, address many of the inequities and anomalies which have been a blight on the industry's progress for generations.

"Without the establishment of the Scottish Parliament this issue which affects 16,000 tenant farmers in Scotland, would never have been addressed and scrutinised.

"Today's debate demonstrated the commitment and importance both the Parliament and the Executive attach to developing a vibrant tenanted farm sector in Scotland.

"The Scottish Executive is proud of this ambitious piece of legislation which has been developed with the industry. Today's decision by the Parliament fulfils our determination to reform land ownership in Scotland in order to offer rural communities the chance to take greater control of their own development."

The Agricultural Holdings (Scotland) Bill was introduced to the Scottish Parliament on September 16, 2002.

It addresses:

  • new limited duration tenancies to provide for a safe vehicle for landowners to let land and encourage small landowners to enter the market, giving greater flexibility and diversification opportunities for tenant farmers.
  • cheaper and easier procedures for resolving disputes
  • a new pre-emptive Right to Buy for tenants when the landowner wishes to sell.
  • anomalies in the tenanted farmer sector such as potential avoidance mechanisms in the form of limited partnerships
  • the operation of the Rent Review process which was felt to have insufficient regard to the economic conditions in which farming operates
  • the use of write down or post lease agreements which often worked against the tenants interests
  • problems in ensuring smooth succession of the tenancy to the next generation which often left tenanted businesses unable to plan ahead

The Agricultural Holdings (Scotland) Bill now awaits Royal Assent and a Commencement Order in which it will come into force.

Page updated: Wednesday, July 21, 2004