Land Reform: Proposals for Legislation

5 New Compulsory Purchase Power in the Public Interest

5.1 It is proposed that there should be a new compulsory purchase power exercisable where it seems to Scottish Ministers to be in the public interest. The intention is to introduce a deterrent to evasion of the proposed legislation. It is hoped that the very existence of this power should in most cases be enough to discourage evasion: it is certainly not intended for general use. The proposed legislation will define the specific purposes for which the new power may be exercised; and apply normal provisions relating to compulsory purchase process.

Circumstances of use

5.2 It is envisaged that Scottish Ministers would publish a policy statement setting out the circumstances in which this power would normally be exercised. This might cover:

• When the beneficial ownership of relevant property in the relevant areas is transferred (for example in circumstances when it is shares in a company which are traded rather than the land itself) without a duly constituted community group being given the opportunity to exercise a right to buy; and
• Gross cases of non-compliance with the duty to notify intention to sell, or with the minimum period between notice to sell and closing date.

Compulsory purchase process

5.3 There is no single or simple way of discovering that a transfer of ownership has taken place bypassing the terms of the other proposed new legislation. It will often be the local community itself which notices changes. It will be open to any individual or body to present evidence to Scottish Ministers that a change of ownership has taken place without the terms of the proposed new legislation coming into operation as they should have.

5.4 The relevant Scottish Minister will have to be satisfied (if necessary by further enquiries):

• That there has indeed been a change of ownership;
• That it has occurred within the time limit set;
• That the disposal of this property would have been covered by the proposed new legislation;
• That the rights of community bodies have indeed been infringed by the way that the transfer has taken place;
• That this infringement is sufficiently serious as to warrant the exercise of the compulsory purchase power.

5.5 The Scottish Minister will also at this stage establish whether there is interest in the property from relevant community bodies. If the Scottish Minister is satisfied that these are circumstances in which he/she should exercise the compulsory purchase power he/she will so notify the owner.

5.6 Normal compulsory purchase arrangements will then apply.

Time limit

5.7 It would be inequitable for this new compulsory purchase power to be exercisable on an open-ended basis. On the other hand, it may take some time for a change of ownership to become apparent, which argues for a relatively long period during which the power may be exercised. There will therefore be a time limit of 10 years.