Windfarm cash frozen by community fund legal omission 29/11/13
Windfarm cash earmarked for community projects is still frozen until a council blunder
is sorted out.
The first tranche of around £200,000 held by the Western Isles Development Trust
(WIDT) should have been distributed to local improvements and community projects
by now.
But the body failed to apply for charitable status as required.
The money was received from the Muaitheabhal Community Wind Farm Trust as part of
a community deal linked to the giant Eishken windfarm in South Lochs.
The Muaitheabhal body, which is diverting 30% of its own income from the Eishken
energy development, has halted all payments to the fund until the legalities are
dealt with.
The rest of the earmarked £12 million community benefit over 25 years will not be
paid to the development fund until the mess is sorted out.
The error was revealed by Hebrides News in September.
It has now emerged that a belated application to set up a charity fund has been held
up until the WIDT is revamped.
It has too many councillors on its board and cllr Roddie Mackay has volunteered to
stand down to try and speed up the bid for charitable status.
A report by council lawyer Lesley McDonald states: “When reviewing its constitution,
it was agreed that the new charitable company would have four Comhairle directors
rather than the five currently appointed.”
She adds: “It is intended, prior to the next Comhairle in 2017, to establish a related
company which would be able to administer funds which did not require to be applied
towards charitable purposes.
Ms Macdonald continues: “The trust is in receipt of a sum for which it hopes to invite
applications from community groups early in 2014.”
The WIDT was set up by Western Isles Council to reinvest millions of millions of
pounds worth of windfarm community benefit into economic, educational, environmental,
cultural, social and recreational projects for the benefit of islanders.
Its business plan places great emphasis on local co-operation and is complementary
to the work of local agencies and existing mainstream support programmes.
Giving financial support for business and community projects, research into renewable
energy and encouraging energy efficiency measures are its main aims once it gets
off the ground.
Funding applications are expected from village halls, historical societies, and Gaelic
language schemes as well as initiatives which encourage youth to stay on the islands.