Comhairle nan Eilean Siar is lobbying the Scottish Executive over the issue of capital grants for community organisations following a change in interpretation of the Local Government in Scotland Act 2003 by Audit Scotland.

The change indicates that capital funds cannot be used as grants from the local authority to community organisations.

Comhairle nan Eilean Siar’s Vice-Convener, Angus Campbell, has now written to Tom McCabe, Minister for Finance and Public Services, to ask the Minister to introduce Regulations that would allow the Comhairle, and other local authorities, to continue with the practice.

In his letter Cllr Campbell states the reasons for the Comhairle wishing to continue:

"To provide services more cheaply than the Comhairle could itself; public convience grants and private cemetery grants are good examples of this.

To lever in contributions from other organisations; rural sewerage grants and lottery funding are examples and to fulfil community aspirations, for example, with our community initiated projects we help fund leisure facilities in rural areas and provide the infrastructure to support cultural activities.”

The Comhairle’s capital programme for 2004-08 allocated over £9m to third parties. This allocation is expected to lever in additional funds of around £17m creating investment in the Western Isles totalling over £26m.

Mr Campbell said: “Clearly the Comhairle will meet any obligation it has for projects that are already under way. However, we cannot continue with the programme as it stands.

The most straightforward solution to the problem is for the Scottish Executive to issue Regulation or guidance permitting us to continue with the previous approach.”

Nigel Scott
Communications Officer
Comhairle nan Eilean Siar

Tel: 01851 709389 (Work)
Tel: 07884 236103 (Mobile)
email: nscott@cne-siar.gov.uk