/ Bute Community Land Company - a company limited by guarantee.
Registered in Scotland with company no. SC365515 and charity no SC041414.
Registered address: Ardmore, 15 Crichton Road, Rothesay Isle of Bute PA20 9JR

Draft Business Plan 2010 - 2015

Environment – People – Finance

Creativity – Innovation – Sustainability

Communication – Collaboration – Passion

Stability – Control - Quality

Executive Summary

1.1 Summary description of the business

1.2 The Opportunity

1.3 The Strategy

1.4 The Economics

1.5 The Team

The Project

2.1 Strategic Context

2.2 Socio-Economic Context

2.3 Community Consultation

2.4 Project Delivery

2.5 Project Resources

2.6 Project Costs

Financial Appraisal

3.1 Projected income and expenditure 2010 - 2015

3.2 Projected 12 Month Cash Flow Statement for Year 1

3.3 Projected Summary Annual Cash Flow Statements for Years 1-5

3.4 Projected Balance Sheets as at end of Years 1-5

3.5 Workings Schedules – Fixed Assets, Debtors and Creditor

3.6 Analysis of Projected Financial Statements

Marketing and Communications Strategy

4.1 Overall marketing strategy

4.2 Product, Pricing, Promotion, and Place

4.3 Community Engagement and Consultation

4.4 Key Stakeholders and Partners

Monitoring and Evaluation

5.1 Baseline

5.2 Management Controls

5.3 Projects Governance

5.4 Key Performance Indicators

5.5 Personnel Development Plan

Risk Analysis

Supporting Information

1

1

Executive Summary

1.1 Summary description of the business

Bute Community Land Company (BCLC) is a company limited by guarantee, formed in September 2009 with a view to supporting the development and regeneration of the Island of Bute. The BCLC board members are from a wide range of backgrounds with substantial skills and experience. They have enthusiastically and energetically led the buyout with a vision which is now shared across the community of Bute.

Vision

Through the purchase and sensitive development of RhubodachForest the vision of the Bute Community Land Company is to:

Provide a catalyst for the Isle of Bute to become an exemplar in sustainable renewable energy and environmental management, whilst providing community, economic and environmental benefits to the Island.

Objectives

This vision will be achieved through establishing a commercially viable operation following purchase of the forest which will:

  • Improve the environmental quality and diversity of RhubodachForest
  • Facilitate and encourage community access and use of the forest
  • Establish a number of renewable energy projects which will both efficiently generate energy and provide a demonstration to encourage adoption by others
  • Create business, employment and training opportunities for the people of Bute
  • Attract additional visitors and associated spend to Bute

BCLC was formed in response to a significant view within the community of Bute that the forest should be acquired for community benefit and that this ‘once in a generation’ opportunity to acquire such as sizeable piece of land, with its potential to transform the island’s economy, could not be missed.

1.2 The Opportunity

The directors of BCLC regard the development of activities in RhubodachForest as the first important step in the revival of Bute’s economic, social and environmental fortunes.

Bute was until the 1960s a lively seaside resort much frequented by those from Glasgow and the Central Belt. Since then tourist numbers have decreased dramatically and continue to fall. Many retail businesses find it hard to make ends meet, especially outside the limited tourist season. There is a large elderly population and too few people in their 20s, 30s or 40s with good jobs and families.

The directors of BCLC believe that this can be changed since Bute has tremendous assets and advantages. It has a beautifully un-spoilt landscape and exceptional views from across the island; it has excellent communications with the mainland; and it is near Glasgow and the Central Belt from where there are good communications with London and the south. Bute evokes fond memories from those in their late 40s and older and has the potential to become a popular tourist destination again. Potential visitors, if facilities and services can be developed, include those seeking a green tourist destination, an interest in outdoor pursuits, wildlife, the natural environment, archaeology or even just a more carbon friendly beach holiday closer to home.

There are already a number of good initiatives taking place. However in order for these to succeed in changing Bute’s prospects a major and dramatic step is required. This can give those on the island the confidence to guide their own destiny and believe that things can change for the better, and to put Bute on the map. The directors of BCLC believe that the acquisition and development of the forest will achieve this.

The acquisition and development of the forest is the first important part of the jigsaw in the revival of “Bute plc”. There are other initiatives which are either just starting or which are being carried on in a small scale way in which BCLC is also interested. These projects include:

  • The refurbishment of the Pavilion, an excellent example of an art deco building in Rothesay. It is important that this is refurbished and then marketed in a way which meets not only the needs of various community groups but also hosts activities which will attract visitors to the island.
  • The Rothesay Townscape Heritage Initiative. The buildings within this initiative, together with the Pavilion, form the first impressions of visitors from WemyssBay. It is vital that dilapidated buildings are properly repaired and kept in good order.
  • Discussions with the Isle of Bute Marking Board and the Food and Craft Group and the recent Bute 2020 Event at MountStuarthave underlined the importance of a coherent vision for marketing Bute and encouraging the various groups to work together with a common objective. BCLC is seeking to help co-ordinate this initiative. Current proposals being considering include setting up aBute website portal to attract visitors and promote the island’s produce,and a dedicated shop on the island for crafts and food. `
  • The Fyne Futures initiatives of Towards Zero Carbon Bute, Bute Produce and the Recycling Project are of keen interest to BCLC. They provide opportunities to promote the island as an exemplar for green initiatives and thus to attract green tourism. They fit well with BCLC’s concern to ensure that activities in the forest are carbon neutral and use renewable energy.

BCLC considers that within a 5 year timescale it ought to be possible to make a significant difference to the tourist numbers coming to Bute and to make a positive impact on the economy. This will result in increased economic prosperity, create jobs, attract younger people to the island and make it more likely that those bornon Bute will stay or return. The people of Bute are rightly proud of their heritage, their island and their sense of community. BCLC’s aim is nothing less than to preserve and enhance these, taking advantage of Bute’s natural assets and advantages and helping it find its place in the modern world.

1.3 The Strategy

The long-term goal for the Forest project will be achieved through establishing commercially viable operations

The main objectives are:

  • Improve the environmental quality and diversity of the forest
  • Facilitate and encourage community access and use of the forest
  • Establish renewable energy projects which will both efficiently generate energy and provide a demonstration to encourage adoption by others
  • Create business, employment and training opportunities for the people of Bute
  • Attract additional visitors and associated spend to Bute

The proposed activities that will deliver the goal and main objectives are:

  • Environmental management of the forest with increased biodiversity and visitor interest
  • Hydro power unit on most viable and sustainable site, other renewable energy initiatives that support forest activities and provide a demonstration to encourage adoption by others
  • Eco lodges sensitively set into the forest to attract new visitors to Bute year-round
  • A Forest Centre/Hub, which will incorporate a visitor centre, orientation, interpretation of the forest, with small related business units, café, shop, meeting rooms and recycling point
  • Improved accessibility for all to and within the forest, including pathways, cycle ways,with improved signage, interpretation, viewpoints, natural play areas and picnic areas

The long term aim is to generate profit to further our social and environmental goals, with the local community thinking and acting together as owners to provide services needed by the local population.

We will monitor our actions to assess effectiveness and modify strategies and/or actions as necessary.

1.4 The Economics

At this stage of the business the intention is to secure public and charitable funding for the first 5 years and combine with own funds following successful resale of commercial forestry, which will provide an opportunity for the organization to develop and establish more sustainable forms of income. The initial fundraising strategy is for a package comprising own funds, SRDP, Big Lottery, various Trusts and grants connected to management of SSSI land. These are expected (indicatively) to include:

Activity / Funding Source
Hydro Electric Units / 75% from public source (SRDP, Big Lottery and other)
Eco Lodges / 50% funding from SRDP
Forest Hub / 90% of funding from SRDP and others?
Forestry Management / SNH (for SSSI) and other charitable trusts, donations for remainder

We have secured funding from HIE and LEADER for the set up of an Executive Office and Forest Project Manager for 2 years. (Appendix 1).

The overall financial projections set out over ten years forecasts that income and/or cost savings from the project activities will generate progressive profit that will take the company into the position of a self-sustainable social enterprise. (Appendix 2)

1.5 The Team

The directors and company secretary of BCLC are:

John McGhee QC. Chair. Co-opted Director

Based in London he has family associations with Bute and is a frequent visitor to his second home on the island.

Christine McArthur, Director

A native islander, married to a fisherman, Christine is a physiotherapist currently involved in research into public involvement in healthcare.

Sara Melvin, Director

Sara travelled and worked extensively in Asia where she had a successful career in public relations before returning to Bute in 2000. She runs twosuccessful businesses on the island including the well known B&B the Boathouse.

James Mitchell, Director

A lifelong visitor, James built a house in 2000 on the island and came to stay. A Conservation Engineer, he consults throughout the UK and overseas from his island base. His focus is on the built heritage with a strong interest in traditional skills training.

Susan McFarlane, Director

Originally from Fife working as a horticulturalist, Susan came to Bute in 2003 to marry and funs a dairy farm on the island with her husband, William.

Sam Tweedlie, Director

Sam is a well known musician and promoter on the Isle of Bute having toured extensively throughout Europe. Sam is now employed as Marketing Manager for Argyll College UHI.

2

The Project

2.1 Strategic Context

The development of RhubodachForest needs to take account of the policies and objectives of key organisations with a role in helping the island to achieve a sustainable and more prosperous future – both to establish partnerships and to meet funding support criteria.

Highlands and Islands Enterprise

HIE has recently designated Rothesay as an area of employment deficit. This means that Rothesay and the surrounding area (i.e. Bute as a whole) will be eligible for relatively high levels of grant for relevant projects and that the area will be given policy priority.

Argyll and Bute Woodland and Forestry, February 2010

In February 2010, Argyll and Bute Council published a consultation draft on the development and use of woodland and forestry in Argyll and Bute.

Within this consultation draft, they recommend, ‘The few large forest blocks that exist, particularly those overlooking the Kyles of Bute, will benefit from restructuring as they currently have strong geometric forms and could be more effectively incorporated into the landscape. More naturalistic planting and the use of native species to create interface habitats will benefit both biodiversity and scenic values. Ensuring continued public access to the woodland resource, particularly in the estate woodlands that are popular with visitors, will enhance their contribution to the tourism value of the area.’

Argyll and Bute Structure Plan

The Structure Plan (SP) sets out policy for investment and land use in Argyll and Bute and includes more detailed Local Plans.

The SP encourages regeneration and economically focussed initiatives. Aims include:

  • promote appropriate planning responses to the strategic, economic, environmental and land use issues facing Argyll and Bute
  • promote ‘sustainable development’ within short and long term, economic, social and environmental perspectives.
  • promote the safeguarding and the enhancement of the natural and historic environment and the maintenance of biodiversity with Argyll and Bute.

Strategy AC1 of the Strategic Plan covers agricultural holdings such as farms, crofts and estates. This allows non-agricultural forms of building on estates if it contributes to the economic and social way of life as well as preserving and sustaining the environment. An estate development programme is expected to be drawn up and provide supportive information to any planning application. This may also include an environmental assessment.

There are a number of constraints on development in Bute such as SSSI, Designed Landscape, Kyles of Bute National Scenic Area, Rothesay Conservation Area and the Settlement Buffer Zones

The Local Plans for Bute (LP) became operative on 6th August 2009 and are now adoptive. Consultation is continuing through March and submissions are encouraged.

Argyll and Bute Council is also developing an economic development action plan within the Structure Plan which highlights forestry, renewables and tourism as priorities.

Access, Recreation and Tourism Policy Context

The Land Reform (Scotland) Act 2003 establishes new statutory rights of public access to the outdoors. Guidance is provided in the new Scottish Outdoor Access Code. Land managers (including community bodies) must act responsibly by

  • Respecting access rights while managing their land.
  • Acting reasonably when asking people to avoid land management operations.
  • Working with the Local Authority and other bodies to help integrate access.

Under the 1960 Occupiers Liability (Scotland) Act the land occupier has to show a duty of care towards people on that land. Taking ‘reasonable’ care is only really defined through case law, but if an occupier can show evidence of tackling foreseeable hazards through a documented risk management process they are normally covered. If children use a site, particular care has to be taken. During forest operations, stricter health and safety legislation applies.

Section 17 of the Land Reform Act also places a duty on Councils to draw up a Core Path Plan. Core Paths may include rights of way, paths, footways, footpaths, cycle tracks and other paths. Sections 18, 19 and 20 of the Act give further guidance on preparing Core Path Plans, maintaining paths and reviewing plans.

The Disability Discrimination Act 1995, which came into operation in 2004, requires providers (including managers of community woodlands) to make ‘reasonable adjustments’ to meet the needs of disabled people.

Scottish Natural Heritage and Sites of Special Scientific Interest

SNH is an organisation which devolves power and influence to local officers. Its headquarters are in Inverness although the Isle of Bute is covered by the Argyll and Stirling office. The officer covering Bute is Elizabeth Pryor.

SNH designates Sites of Special Scientific Interest (SSSIs) to protect the best natural heritage by making sure that decision-makers, managers of land and their advisors, as well as the planning authorities and other public bodies, are aware of these special sites when considering changes in land-use or other activities which might affect them.

SSSIs represent the best of Scotland’s natural heritage. They are ‘special’ for their plants, animals or habitats, their rocks or landforms, or a combination of such natural features.

There are two Sites of Special Scientific Interest (SSSI) on Bute. One, the Central Lochs, Bute SSSI comprises six separate sites. The other is at Rhubodach.

There is no blanket policy which covers the development on SSSIs, and SNH needs to be approached on a case by case basis. Local staff will seek to become involved early in the planning process.

2.2 Socio-Economic Context

The development of the forest is for the benefit of Bute as a whole, and the socio-economic summary below relates mainly to the island rather than the local Rhubodach area. As illustrated, Bute is a high priority for employment generating initiatives, with the highest rate of unemployment of the sub-regions within the Highlands and Islands.

Population

Bute had a total 2008 population of 7,001, giving the island a population density of 58 people per km2, significantly higher than that of Argyll and the Islands (10 people per km2). The population of Bute fell by 3.2% between 2001 and 2008, in contrast to the increase across Argyll and the Islands of 1.5%.

Argyll and Bute Council has forecast the population of Bute and Cowal to increase by 7.9% between 2008 and 2024, contrasting with a fall of 3.4% in the Argyll and Bute Council area. However, Bute makes up only 30.2% of the population of Bute and Cowal, and trends on the mainland may not apply to Bute.

The population of Bute is not only falling but also ageing. In 2001, 54.9% of the population was under 49 and, by 2008, the number of people in that category dropped by 9.6%, to a share of 51.2% of the population. Argyll and the Islands had a lesser drop of 4.0%, from a population share of 57.8% to 54.7%. The number of people over 65 did not increase as rapidly in Bute as in Argyll and the Islands (3.6% compared to 11.0%), but the share of the population in this age group is still greater in Bute (26.0%) than Argyll and the Islands (22.4%). The high proportion of the population aged over 65 means that the proportion of the population of working age is lower in Bute (53.7%) than in Argyll and the Islands (57.2%).