8 March 2002

COMHAIRLE NAN EILEAN SIAR

Minute of Meeting held in the Council Offices, Stornoway, on Friday 8 March 2002 at 10.00 am.

PRESENT

Mr Alexander A MacDonald (Chairman)

Mr Roderick J Murray (Vice-Chairman)

Mr Donald I Nicholson

Mrs Katie M Mackenzie

Mr Norman M Macleod

Mr Malcolm J Macleod

Mr Donald J Macsween

Mr Iain Morrison

Mr Finlay Morrison

Mr Roderick Morrison

Mr Donald M Mackay

Mr Norman A Macdonald

Mrs Morag Munro

Mr Malcolm J Graham

Mr Donald Macdonald

Mr Ian M Macleod

Mr Archie K Campbell

Mr Murdo Macleod

Mr Donald Maclean

Mr Norman L Macdonald

Mrs Mary Bremner

Mr Alasdair G Macrae

Mr Ronald J Mackinnon

Mr Angus Campbell

Mr Donald Manford

APOLOGIES

Mr George Lonie

Mr Philip R McLean

Mr David Blaney

Prayer

The Meeting was opened with Prayer led by Mr Donald I Nicholson.

MINUTES

Comhairle

1

The Minute of Meeting of 19 February 2002 was approved.

CONSTITUTION

Requisition

2

A requisition for a Special Meeting of the Comhairle signed by 14 members to refer a decision of the Policy and Finance Committee of 19 February 2002 relating to Heather Isle Meats Ltd and Lewis and Harris Auction Mart Ltd was submitted and noted.

REFERRED BUSINESS

Mr Alex A Macdonald seconded by Roderick J Murray, moved that the public, including the press, be excluded from the meeting during consideration of Item 3, Western Isles Slaughterhouses, below on the grounds of exempt information as defined in paragraph 6 of Schedule 7A of the Local Government (Scotland) 1973 would be disclosed namely, information relating to the financial or business affairs of any particular person (other than the Comhairle).

Mr Donald J Macsween seconded by Mr Donald I Nicholson, moved as an amendment that the Public, including the press, be not excluded from the meeting during consideration of Item 3, Western Isles Slaughterhouses, below.

On the matter being put to the vote, the motion received the majority of votes cast and became the finding of the meeting.

Western Isles Slaughterhouses

3

The following were submitted:

1) The Report by the Western Isles Slaughterhouses Member/Officer Working Group regarding the systems to the Western Isles for Slaughterhouses the Report set out progress regarding restoration and possible rescue and restructuring aid under the terms of the relevant European Community Guidelines in conjunction with the Scottish Executive for the Environment and Rural Affairs Department and Slaughterhouse Operators. The Guidelines on State Aid for rescue and restructuring in terms of difficulty were summarised.

2) A letter from Company Secretary, Heather Isle Meats Ltd, agreeing to the circulation of the Company's Business Plan to Members.

3) A Business Plan prepared on behalf of Heather Isle Meats Ltd examining what possible combination of measures, within a rescue and restructure context, could be implemented to result in a viable company within a limited timescale. The proposed rescue and restructure scenario was set out in the business plan together with estimates of the costs associated with the rescue and restructure strategy. The plan contained detailed financial projections incorporating implementation of the proposed measures.

4) An assessment of the Business Plan prepared by the Director of Finance and the Director for Sustainable Communities.

5) Correspondence relating to Heather Isle Meats.

6) Letter from the of Chairman, Western Isles Slaughterhouses Member/Officer Working Group to the Chairman of Western Isles Enterprise asking that Western Isles Enterprise commission an independent evaluation of the Business Plan submitted by Heather Isle Meats Ltd. It was noted in the letter that Heather Isle Meats Ltd had sought assistance from Western Isles Enterprise for the Company to commission an assessment of the Business Plan.

7) Letters to the Chief Executive, Western Isles Enterprise, and the Manager, Royal Bank of Scotland Plc, Stornoway, asking the Enterprise Company and the Bank if they had come to any view on the Business Plan submitted by Heather Isles Meats Ltd.

It was reported that the assessment of the Business Plan commissioned by Heather Isle Meats Ltd had been undertaken. With the approval of the Company's Directors the assessment was circulated to the Members present.

Mr Roderick J Murray, Seconded by Mr Norman L Macdonald, moved that the Comhairle confirm the decision of the Policy and Finance Committee of 19 February 2002 that no notification for Rescue and Restructuring Aid be submitted to the European Commission for any of the four existing slaughterhouse operators in the Western Isles under the terms of Community Guidelines 1999/C288/02.

Mr Donald J Macsween seconded by Mr Malcolm J Graham moved as an amendment that notification for rescue and restructuring aid be submitted to the European Commission in respect of Heather Isle Meats Ltd under the terms of Community Guidelines 1999/C288/02.

It was agreed that the vote be taken by roll call, in terms of Standing Order 53.

On the matter being put to the vote, the vote was as follows:

Motion Amendment

Mr Alexander A Macdonald Mrs Katie M Mackenzie

Mr Roderick J Murray Mr Malcolm J Graham

Mr Malcolm J Macleod Mr Donald J Macsween

Mr Iain Morrison Mr Donald Macdonald

Mr Roderick Morrison

Mr Norman A Macdonald

Mr Ian M Macleod

Mr Murdo Macleod

Mr Norman L Macdonald

Mr Alasdair G Macrae

Mr Angus Campbell

Mr Donald I Nicholson

Mr Norman M Macleod

Mr Finlay Morrison

Mr Donald M Mackay

Mrs Morag Munro

Mr Archie Campbell

Mr Donald Maclean

Mrs Mary Bremner

Mr Ronald J Mackinnon

Mr Donald Manford

The Chairman declared that the motion had received the majority of votes cast and had become the finding of the meeting.

It was agreed that the public, including the press, be excluded from the meeting during consideration of item 4 below on the grounds that exempt information as defined in paragraph 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to the financial or business affairs of any particular person (other than the Comhairle).

Lewis and Harris Auction Mart Ltd

4

The Director of Corporate Services submitted a Report regarding the proposal from Lewis and Harris Auction Mart Ltd that the Comhairle purchase the Auction Mart at Steinish, Stornoway from them. The background to the matter was set out in the Report, together with a summary of the options arising from the proposals.

It was agreed to confirm the decision of the Policy and Finance Committee of 19 February 2002 to defer consideration of the detail of the Report until further information is available and to authorise officers to explore the options available in relation to the Auction Mart.

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PRESENT	Mr Alexander A MacDonald (Chairman)
	Mr Roderick J Murray (Vice-Chairman)	Mr Donald I Nicholson
	Mrs Katie M Mackenzie	Mr Norman M Macleod
	Mr Malcolm J Macleod	Mr Donald J Macsween
	Mr Iain Morrison	Mr Finlay Morrison
	Mr Roderick Morrison	Mr Donald M Mackay
	Mr Norman A Macdonald	Mrs Morag Munro
	Mr Malcolm J Graham	Mr Donald Macdonald
	Mr Ian M Macleod	Mr Archie K Campbell
	Mr Murdo Macleod	Mr Donald Maclean
	Mr Norman L Macdonald	Mrs Mary Bremner
	Mr Alasdair G Macrae	Mr Ronald J Mackinnon
	Mr Angus Campbell	Mr Donald Manford

APOLOGIES	Mr George Lonie
	Mr Philip R McLean
	Mr David Blaney

Prayer		The Meeting was opened with Prayer led by Mr Donald I Nicholson.

		MINUTES
Comhairle	1	The Minute of Meeting of 19 February 2002 was approved.

		CONSTITUTION
Requisition	2	A requisition for a Special Meeting of the Comhairle signed by 14 members to refer a decision of the Policy and Finance Committee of 19 February 2002 relating to Heather Isle Meats Ltd and Lewis and Harris Auction Mart Ltd was submitted and noted.
		REFERRED BUSINESS
		Mr Alex A Macdonald seconded by Roderick J Murray, moved that the public, including the press, be excluded from the meeting during consideration of Item 3, Western Isles Slaughterhouses, below on the grounds of exempt information as defined in paragraph 6 of Schedule 7A of the Local Government (Scotland) 1973 would be disclosed namely, information relating to the financial or business affairs of any particular person (other than the Comhairle).
		Mr Donald J Macsween seconded by Mr Donald I Nicholson, moved as an amendment that the Public, including the press, be not excluded from the meeting during consideration of Item 3, Western Isles Slaughterhouses, below.
		On the matter being put to the vote, the motion received the majority of votes cast and became the finding of the meeting.

Western Isles Slaughterhouses	3	The following were submitted: 1) The Report by the Western Isles Slaughterhouses Member/Officer Working Group regarding the systems to the Western Isles for Slaughterhouses the Report set out progress regarding restoration and possible rescue and restructuring aid under the terms of the relevant European Community Guidelines in conjunction with the Scottish Executive for the Environment and Rural Affairs Department and Slaughterhouse Operators. The Guidelines on State Aid for rescue and restructuring in terms of difficulty were summarised. 2) A letter from Company Secretary, Heather Isle Meats Ltd, agreeing to the circulation of the Company's Business Plan to Members. 3) A Business Plan prepared on behalf of Heather Isle Meats Ltd examining what possible combination of measures, within a rescue and restructure context, could be implemented to result in a viable company within a limited timescale. The proposed rescue and restructure scenario was set out in the business plan together with estimates of the costs associated with the rescue and restructure strategy. The plan contained detailed financial projections incorporating implementation of the proposed measures. 4) An assessment of the Business Plan prepared by the Director of Finance and the Director for Sustainable Communities. 5) Correspondence relating to Heather Isle Meats. 6) Letter from the of Chairman, Western Isles Slaughterhouses Member/Officer Working Group to the Chairman of Western Isles Enterprise asking that Western Isles Enterprise commission an independent evaluation of the Business Plan submitted by Heather Isle Meats Ltd. It was noted in the letter that Heather Isle Meats Ltd had sought assistance from Western Isles Enterprise for the Company to commission an assessment of the Business Plan. 7) Letters to the Chief Executive, Western Isles Enterprise, and the Manager, Royal Bank of Scotland Plc, Stornoway, asking the Enterprise Company and the Bank if they had come to any view on the Business Plan submitted by Heather Isles Meats Ltd.
		It was reported that the assessment of the Business Plan commissioned by Heather Isle Meats Ltd had been undertaken. With the approval of the Company's Directors the assessment was circulated to the Members present.
		Mr Roderick J Murray, Seconded by Mr Norman L Macdonald, moved that the Comhairle confirm the decision of the Policy and Finance Committee of 19 February 2002 that no notification for Rescue and Restructuring Aid be submitted to the European Commission for any of the four existing slaughterhouse operators in the Western Isles under the terms of Community Guidelines 1999/C288/02.
		Mr Donald J Macsween seconded by Mr Malcolm J Graham moved as an amendment that notification for rescue and restructuring aid be submitted to the European Commission in respect of Heather Isle Meats Ltd under the terms of Community Guidelines 1999/C288/02.

		It was agreed that the vote be taken by roll call, in terms of Standing Order 53.
		On the matter being put to the vote, the vote was as follows: Motion Amendment Mr Alexander A Macdonald Mrs Katie M Mackenzie Mr Roderick J Murray Mr Malcolm J Graham Mr Malcolm J Macleod Mr Donald J Macsween Mr Iain Morrison Mr Donald Macdonald Mr Roderick Morrison Mr Norman A Macdonald Mr Ian M Macleod Mr Murdo Macleod Mr Norman L Macdonald Mr Alasdair G Macrae Mr Angus Campbell Mr Donald I Nicholson Mr Norman M Macleod Mr Finlay Morrison Mr Donald M Mackay Mrs Morag Munro Mr Archie Campbell Mr Donald Maclean Mrs Mary Bremner Mr Ronald J Mackinnon Mr Donald Manford
		The Chairman declared that the motion had received the majority of votes cast and had become the finding of the meeting.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of item 4 below on the grounds that exempt information as defined in paragraph 6 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to the financial or business affairs of any particular person (other than the Comhairle).
Lewis and Harris Auction Mart Ltd	4	The Director of Corporate Services submitted a Report regarding the proposal from Lewis and Harris Auction Mart Ltd that the Comhairle purchase the Auction Mart at Steinish, Stornoway from them. The background to the matter was set out in the Report, together with a summary of the options arising from the proposals.
		It was agreed to confirm the decision of the Policy and Finance Committee of 19 February 2002 to defer consideration of the detail of the Report until further information is available and to authorise officers to explore the options available in relation to the Auction Mart.

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