Good News for Highland Coastal Communities

Credit where credit is due.  Today's announcement from George Osborne and Danny Alexander that a new development fund will be available to coastal communities around the UK, derived from Crown Estate revenues, is good news for the Highlands.  As offshore wind and wave power develops, these communities will start to get some direct benefit.

From my political perspective, its frustrating that this welcome initiative has come from the Coalition and not as a result of Scottish Labour pushing the idea, as I argued in my blog last month. Ed Milliband and the shadow team are doing well at Westminster but we seem to be a policy & ideas free zone in Scotland at the moment.  The sooner we get over the May elections, stop arguing about internal organisation, contracts and rulebooks, the better.  We need to get back out there campaigning again.

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New Ideas for Scottish Labour....

In my last post, I argued that Scottish Labour needed to start developing policies which would fit with a distinctive Scottish agenda, but which also needed to reflect economic and social needs in different parts of the country. Here’s a first example of what I mean.

Like many Labour politicians, I’ve long argued the need for link “green“ investments to the creation of real jobs and other economic infrastructure. This wont just happen, it needs government policy, planning and pump-priming. The Highlands are at the centre of developments in off-shore wind and wave power but how do we ensure that benefits don’t just go to the developers, manufacturers elsewhere or specific communities – welcome though that would be locally - but are shared across the whole area?

The Crown Estate Commission (CEC) owns the rights to developments on the seabed for up to 12 miles offshore. In recent years, the CEC has used that right to levy charges on businesses operating offshore, first on major fishing companies and now on the offshore wind and wave developers, most of whom are operating on sea-beds off the Highland coastline. The potential revenues are growing rapidly as the scale of offshore development ramps up.

At present, all that money goes to the UK Treasury.

Highland Council, HIE and others have long argued that a slice of this revenue should be earmarked for economic and social development in the Highlands and Islands, in the same way as the Shetland Oil Fund was used back in the 1970s.

The LibDems used to support just such a policy but seem to have abandoned it now. No doubt vetoed by Chief Secretary to the Treasury Danny Alexander as part of the same deal which saw the LibDems sell out on Student Fees, VAT and the Cuts. The SNP want all the CEC’s powers and revenues transferred to Scottish Control. There’s a strong case for that, but there need to be assurances about how such powers will be used to benefit specific regions and not just fund favoured projects elsewhere.

We promised a Scottish Crown Estate Commissioner in our 2011 Scottish Manifesto. Should Scottish Labour seize the initiative and make the case for a Highlands Renewables Fund - kick-started from a share of CEC Revenues – which could be used to benefit the region socially and economically?

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