Secondary legislation proposals for Part 3A of the Land Reform (Scotland) Act 2003: the community right to buy abandoned, neglected or detrimental land as introduced by the Community Empowerment (Scotland) Act 2015

14. Entitlement to compensation

Background

Section 97T of the 2003 Act allows any person, in the circumstances listed in section 97T(1) of the 2003 Act, including the current or former landowner, to recover loss or expense from either the Part 3A community body (if the application was consented to) or Scottish Ministers (if the application was refused).

Proposals

The Scottish Government considers that the following procedures should apply in order for an application for compensation to be made:

• The claim for compensation is to be made within 90 days of: (i) the final settlement date for the purchase of the land by the Part 3A community body, (ii) the date the Part 3A community body withdraw their application, or (iii) the date Ministers rejected the Part 3A community right to buy application, as is applicable in the circumstances;
• The claim for compensation is to be sent to the Part 3A community body's address as noted on the application, if the compensation is payable by the Part 3A community body;
• The claim for compensation is to be sent to Scottish Ministers if the compensation is to be paid by Ministers;
• The claim for compensation must be fully vouched and be accompanied by all original invoice(s) in respect of the fees, costs or expenses for which compensation is claimed, together with a clear explanation and complete breakdown of the compensation which is sought. Sufficient information must be provided to determine whether or not the amount is relevant to the claim being made, and that it is within the correct timescales;
• Ministers or the community body, as appropriate, will have 40 days to consider the application for compensation and determine the amount payable.

Question 12: Do you agree with these proposals?
There were five responses to this question. Two agreed and three disagreed with the proposals.

Question 12a: If not, please explain
There were four responses to this question.

Community Land Advisory Service disagreed with the 90 day time limit for the compensation claim. It considered that some consequences of the sale may not become apparent for some time.

Friends of Midmar Inn Community Company pointed out that the act did not specify how the calculation of compensation was to be carried out. In addition, it considered that both parties should be responsible for their own costs.

Community Energy Scotland considered that only necessary expenses should be claimed.

Scottish Land & Estates stated that there should be parity between the level of detail sought to justify a compensation claim and the detail provided in return in determining the relative success or otherwise of a claim. It proposed that there should be a set period between receipt of a claim and the decision by Ministers to avoid the process becoming drawn out.