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Justice 1 Committee, 10 Dec 2002

10 Dec 2002 · S1 · Justice 1 Committee

Item of business

Title Conditions (Scotland) Bill: Stage 2

Wallace, Mr Jim LD Orkney Watch on SPTV

Amendment 87 will introduce into the bill economic development burdens as one of the exceptions to the general rule that burdens must benefit other land.Amendment 106 is the main amendment in the group. It introduces section 42A, which provides for a new category of personal burdens on land. Those burdens will require no benefited property. Local authorities will be able to create economic development burdens in circumstances in which they wish to sell land with a view to encouraging economic development within their area. They might wish to impose a burden that includes a clawback condition if there is likely to be a windfall increase in the value of land as a result of a change in use. Authorities will be able to use the new burdens for that purpose. Subsection (3) of the proposed new section provides specifically for the burden to comprise or include an obligation to pay money.The new burdens will be subject to the law of real burdens as reformed and codified by the bill; they will also be subject to the jurisdiction of the Lands Tribunal for Scotland. It is intended that economic development burdens will also be available to Scottish ministers, as occasions might well arise on which they wish to sell land for the purposes of economic development. Although it will be possible for bodies other than local authorities or Scottish ministers to create an economic development burden, it will be necessary for them first to obtain the consent of the authority or the ministers whom they intend should have the right to enforce the burden.In evidence to the committee, the Convention of Scottish Local Authorities argued that there is a strong public interest in the protection of public funds. In the stage 1 debate, I indicated that the Executive agrees that there is a compelling argument that, when the public sector sells or gives land for economic development, there should be a means of protecting the purpose of the transfer of the land and the public funds that are involved. Amendment 107 ensures that the holder of an economic development burden will have a presumed interest to enforce. Amendment 108 is one of a number of amendments that are required to ensure that economic development burdens will get the same treatment in law as other kinds of personal burdens. Amendment 108 will ensure that economic development burdens will be discharged by registering a deed of discharge against the burdened property. The discharge will have to be made by the holder of the burden.Amendment 208 builds on amendment 106 by allowing a normal burden of this type that was imposed in the past to be converted into an economic development burden. Amendments 233, 235, 64, 67, 69, 70, 71, 72 and 75 are all consequential to amendments 106 and 208.Amendment 239 is consequential to the insertion by section 102 of the bill of the various new sections in the Abolition of Feudal Tenure etc (Scotland) Act 2000. Amendment 208, on the conversion of feudal burdens into economic development burdens, will insert section 18B in the 2000 act. Amendment 238 is consequential.Amendment 75 sets out the notice that is to be given by local authorities that convert a real burden into an economic development burden. It is consequential to amendment 208, which will convert feudal burdens into economic development burdens.I move amendment 87.