Chamber
Meeting of the Parliament 28 March 2012
28 Mar 2012 · S4 · Meeting of the Parliament
Item of business
Agricultural Holdings (Amendment) (Scotland) Bill: Stage 1
It might seem to be a great leap of imagination to compare this consensual stage 1 debate on the Agricultural Holdings (Amendment) (Scotland) Bill with the radical, pioneering and tempestuous work of the Highland Land League of the 1880s, but I will show that there is a link, if members are patient.
As members will know, the Highland Land League was the radical crofters’ movement that won a clutch of Westminster seats, including my home city of Inverness, in the 1885 general election. Members will probably know that the Highland Land League was instrumental in the passage of the Crofters’ Holdings (Scotland) Act 1886, which gave tenants—mainly crofters—security of tenure, rights and compensation for improvements, which survive today. I understand that the league’s best-known slogan was:
“The people are mightier than a lord”.
It has a contemporary ring to it, and would not be out of place in this week’s edition of the West Highland Free Press.
The relationship between landlords and tenants, access to land, security of tenure and the role of community ownership have all radically changed since the days of the battle of the braes, when the famous dispute between crofters and landlords on Skye in the 1880s culminated in that battle between the police and crofters. As members may know, that led to the Napier commission, which radically changed crofting legislation. Coming to the present day, one of the great successes of devolution has been community land buyouts, from the island of Eigg to Eriskay in the Western Isles.
I agree with other members that the bill is not, on the surface, contentious, but there are deeper and wider issues, which many members have raised. That was touched on in particular by the Scottish Tenant Farmers Association, which I will come to later.
I congratulate Rob Gibson—who, unfortunately, is not in the chamber—and his committee for their thorough work on the stage 1 report. As we have heard, the committee has asked the Scottish Government to re-examine the definition of “near relative” to consider including, for example, nieces and nephews.
As for rent reviews, the committee is right to support the removal of upward-only rent reviews. The other main substantive area in the bill is the disapplication of VAT-rate changes from being variations in rent that prevent rent reviews.
I welcome the theme that emerged in the committee’s evidence sessions that the bill will not end the need for further reform of agricultural tenancy law. However, a number of fundamental issues need to be resolved in future legislation—dispute resolution being the main one. As members will know, until 2003 arbitration was a statutory requirement. The Scottish Land Court is—outwith the Court of Session appeal powers—the only body that is able to rule on disputes, but that is not a very practical option for most tenants. There has been only one order setting the rent in one rent review since the 2003 act came into force. Clearly, expense and time are huge barriers to tenant farmers.
What is needed? I believe that alternative cheaper methods of dispute resolution are required, including facilitated dispute resolution and mediation. Perhaps the minister could say whether other opportunities that could be helpful are available under the Arbitration (Scotland) Act 2010.
I am also concerned about the current tenancy laws. We have heard about the Court of Session ruling in the case of Salvesen v Riddell. Lord Gill ruled that section 72 of the Agricultural Holdings (Scotland) Act 2003 was not compatible with the European convention on human rights. The STFA’s chairman, Angus McCall, has said that the mood among farm tenants is now one of despondency. That is not surprising, given how the law has failed them and is sending out the wrong messages to wealthy and powerful landlords. It is of great concern that talented and able young tenant farmers are being lost to the sector.
I support the bill, but it is a work in progress. Future legislation is required to deal with the issues of new entrants, access to land and dispute resolution.
15:13
As members will know, the Highland Land League was the radical crofters’ movement that won a clutch of Westminster seats, including my home city of Inverness, in the 1885 general election. Members will probably know that the Highland Land League was instrumental in the passage of the Crofters’ Holdings (Scotland) Act 1886, which gave tenants—mainly crofters—security of tenure, rights and compensation for improvements, which survive today. I understand that the league’s best-known slogan was:
“The people are mightier than a lord”.
It has a contemporary ring to it, and would not be out of place in this week’s edition of the West Highland Free Press.
The relationship between landlords and tenants, access to land, security of tenure and the role of community ownership have all radically changed since the days of the battle of the braes, when the famous dispute between crofters and landlords on Skye in the 1880s culminated in that battle between the police and crofters. As members may know, that led to the Napier commission, which radically changed crofting legislation. Coming to the present day, one of the great successes of devolution has been community land buyouts, from the island of Eigg to Eriskay in the Western Isles.
I agree with other members that the bill is not, on the surface, contentious, but there are deeper and wider issues, which many members have raised. That was touched on in particular by the Scottish Tenant Farmers Association, which I will come to later.
I congratulate Rob Gibson—who, unfortunately, is not in the chamber—and his committee for their thorough work on the stage 1 report. As we have heard, the committee has asked the Scottish Government to re-examine the definition of “near relative” to consider including, for example, nieces and nephews.
As for rent reviews, the committee is right to support the removal of upward-only rent reviews. The other main substantive area in the bill is the disapplication of VAT-rate changes from being variations in rent that prevent rent reviews.
I welcome the theme that emerged in the committee’s evidence sessions that the bill will not end the need for further reform of agricultural tenancy law. However, a number of fundamental issues need to be resolved in future legislation—dispute resolution being the main one. As members will know, until 2003 arbitration was a statutory requirement. The Scottish Land Court is—outwith the Court of Session appeal powers—the only body that is able to rule on disputes, but that is not a very practical option for most tenants. There has been only one order setting the rent in one rent review since the 2003 act came into force. Clearly, expense and time are huge barriers to tenant farmers.
What is needed? I believe that alternative cheaper methods of dispute resolution are required, including facilitated dispute resolution and mediation. Perhaps the minister could say whether other opportunities that could be helpful are available under the Arbitration (Scotland) Act 2010.
I am also concerned about the current tenancy laws. We have heard about the Court of Session ruling in the case of Salvesen v Riddell. Lord Gill ruled that section 72 of the Agricultural Holdings (Scotland) Act 2003 was not compatible with the European convention on human rights. The STFA’s chairman, Angus McCall, has said that the mood among farm tenants is now one of despondency. That is not surprising, given how the law has failed them and is sending out the wrong messages to wealthy and powerful landlords. It is of great concern that talented and able young tenant farmers are being lost to the sector.
I support the bill, but it is a work in progress. Future legislation is required to deal with the issues of new entrants, access to land and dispute resolution.
15:13
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-02495, in the name of Richard Lochhead, on the Agricultural Holdings (Amendment) (Scotland) Bill. I call ...
The Cabinet Secretary for Rural Affairs and the Environment (Richard Lochhead)
SNP
Thank you, Presiding Officer.This Government has two key policy objectives for tenant farming in Scotland: first, to ensure that tenant farmers have legislat...
The Presiding Officer
NPA
I call Rob Gibson to speak on behalf of the Rural Affairs, Climate Change and Environment Committee.14:44
Rob Gibson (Caithness, Sutherland and Ross) (SNP)
SNP
There is an old Highland joke about a croft being a small piece of land surrounded entirely by large amounts of legislation. Given the amount of legislation ...
Alex Fergusson (Galloway and West Dumfries) (Con)
Con
Will the member take an intervention?
Rob Gibson
SNP
I will take a brief one. I have a lot to say.
Alex Fergusson
Con
Given that the tax regime is the same throughout the United Kingdom and that farm business tenancies south of the border are similar to limited duration tena...
Rob Gibson
SNP
I think that there has been enough speculation, but I suppose that, even in the member’s devo plus proposals, there might be a decision to take forward these...
Claire Baker (Mid Scotland and Fife) (Lab)
Lab
I am pleased to be speaking in this afternoon’s debate. As an MSP who is not on the Rural Affairs, Climate Change and Environment Committee, I thank the comm...
John Lamont (Ettrick, Roxburgh and Berwickshire) (Con)
Con
The Scottish Conservatives are pleased to support the bill’s general principles. A vibrant tenanted sector is vital to Scottish farming. As a Parliament, we ...
Annabelle Ewing (Mid Scotland and Fife) (SNP)
SNP
John Lamont will obviously have read the committee’s wonderful report, which he was involved in producing. Paragraph 37, which refers to the oral evidence th...
John Lamont
Con
That was very helpful, but it does not necessarily mean that I have to agree with that view. I agree with the cabinet secretary’s view that there could be un...
Annabelle Ewing (Mid Scotland and Fife) (SNP)
SNP
Although I have the privilege of being the deputy convener of the Rural Affairs, Climate Change and Environment Committee, I speak not on behalf of the commi...
David Stewart (Highlands and Islands) (Lab)
Lab
It might seem to be a great leap of imagination to compare this consensual stage 1 debate on the Agricultural Holdings (Amendment) (Scotland) Bill with the r...
Graeme Dey (Angus South) (SNP)
SNP
One issue that came through loud and clear in the committee’s inquires on the bill was that of land agents and their practices. In his evidence, NFUS chief e...
The Deputy Presiding Officer (John Scott)
Con
You must close now, please.
Graeme Dey
SNP
The TFF is looking to arbitration as a way in which to resolve that issue. I suggest that that is the way forward.15:17
Angus MacDonald (Falkirk East) (SNP)
SNP
I am pleased to speak in this stage 1 debate. Although I am not a member of the Rural Affairs, Climate Change and Environment Committee, my Economy, Energy a...
Jim Hume (South Scotland) (LD)
LD
I declare a farming interest.The provisions in the Agricultural Holdings (Scotland) Bill are overdue. It is important that trust between tenants and landlord...
Dennis Robertson (Aberdeenshire West) (SNP)
SNP
As many members have already discussed the “near relatives” provision in the bill, I will not go down that route. Instead, I want to focus not on the legisla...
David Stewart
Lab
Does the member share my view that tenants are concerned about Lord Gill’s decision in the Court of Session, which effectively says that the Scottish Parliam...
Dennis Robertson
SNP
We are moving forward and the bill and amendments to it will try to address what happened in 2003.We certainly need to consider the arbitration provisions in...
Margaret McDougall (West Scotland) (Lab)
Lab
The bill aims to create a better environment for the letting of farmland to the tenant farming sector of the agricultural industry and to encourage new entra...
Mark McDonald (North East Scotland) (SNP)
SNP
Presiding Officer, as a former member of the Rural Affairs, Climate Change and Environment Committee—although, to be frank, if you had blinked, you would hav...
David Stewart
Lab
The Court of Session overturned the Scottish Land Court in relation to the role of single farm payments and argued that they are a factor in open-market rent...
Mark McDonald
SNP
A number of factors prevent new entrants from coming into the sector—I certainly do not think that there is just a single contributory factor in that regard....
Alex Fergusson (Galloway and West Dumfries) (Con)
Con
This has been a welcome debate on the general principles of the Agricultural Holdings (Amendment) (Scotland) Bill.I am happy to welcome the three changes to ...
Claudia Beamish (South Scotland) (Lab)
Lab
I am pleased to speak in this debate, which is so significant for Scotland’s vibrant agriculture sector. I thank the cabinet secretary for setting the contex...
Alex Fergusson
Con
Why does the member feel that disharmony would be a good thing in an area—that is, the TFF—where harmony exists?
Claudia Beamish
Lab
That is certainly not what I am saying. Whenever consensus is possible, it is an excellent idea. However, a range of perspectives must be taken into account,...