Gairloch concerns publicly funded Shieling deal could ‘create unfair competition’
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A WESTER Ross community group’s use of hundreds of thousands of pounds of public funding to create a new hub has been called into question over fears it will take trade from others.
The Gairloch and Loch Ewe Action Forum (GALE) announced earlier this week that it had successfully concluded the purchase of a building known as The Shieling which it says will drive benefits for the local economy and act as a catalyst for social, cultural, and economic development.
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But the deal has sparked a row over the possible use of public funding to create unfair competition locally - with Gairloch Community Council amongst those unhappy with the turn of events.
The Scottish Land Fund (SLF) awarded GALE a grant of £337,724. The Community Ownership Fund (COF) awarded GALE a grant of £128,129.
Possible projects include a community pub, a local bakery, a refillery, pop-up restaurants, additional office accommodation and meeting space, kitchen facilities, and expanded growing space.
GALE says it wants the community to join “this exciting and ever evolving endeavour” by signing up for their blog, where regular updates and insights will be provided.
In a statement on the acquisition, Gairloch Community Council stated: “Gairloch Community Council would like to make it known that it shares the concerns of a large number of businesses and individuals in our community regarding the purchase of The Shieling restaurant by Gairloch and Loch Ewe Action Forum (GALE).
“In January 2023, GALE requested a letter of support from GCC for their proposal to purchase The Shieling. In this letter, GCC stated the following:
‘Based on the proposal submitted [by GALE], the Community Council supports those ideas that constitute new and important community development initiatives within the area, and do not displace economic activity from other businesses and community groups’.
“GCC subsequently raised a concern with the Scottish Land Fund (SLF) in August 2023, citing, inter alia, concerns about economic displacement among the local business community.
“In December 2023 a meeting took place between Highlands and Islands Enterprise (HIE) and a consortium of local businesses, supported by the Federation of Small Businesses (FSB). Members of GCC (and other local Community Councils) were present at this meeting and serious questions were raised about the impact on local businesses of funding GALE’s purchase of the Shieling, as well as staffing and other costs.
“Despite follow up emails, no response was received from HIE to the questions raised until 9th April, the day after The Shieling purchase went through. GCC considers this response from HIE to be wholly inadequate both in its timing and in answering the questions that were raised at the meeting.
“At its monthly meeting on 8th April, members of the Gairloch Community Council firmly reinforced their view that the activities proposed by GALE for The Shieling building (as laid out in GALE's email sent the same day) had the potential to displace economic activity from other local businesses.
“The view was expressed that, in order for this project to have any real benefit for the communities that GALE is constituted to serve, the board of GALE needs to listen to the concerns of businesses within these communities and avoid the further use of public funding to create unfair competition.”
GALE and HIE have been approached for comment.
