Briefings

That elusive yardstick

May 3, 2017

<p class="MsoNormal">Scottish Government may have created a rod for its back by committing itself to developing a new framework for measuring social impact. This has long been the Holy Grail and thus far, proved completely elusive. Proponents of social auditing, balanced score card, social return on investment and other hybrids have all failed to hit the mark. Perhaps the answer is that social impact is so multi-dimensional as to render any single measurement irrelevant. After 20 years of community ownership, the islanders of Eigg wouldn&rsquo;t know where to start. The impact is everywhere.</p>

 

Author: Mike Merritt. The Herald

An amazing film about the island (ers) of Eigg. Watch here

THE isle of Eigg – the centre of a famous buyout by islanders 20 years ago – is celebrating after hitting a population milestone by passing 100 residents.

A trust that runs the Hebridean isle now believes there are 105 islanders, but only realised they had hit the historic threshold after doing a mental calculation. When Eigg was bought out in 1997 it had just 64 people.

However, the century milestone almost went unnoticed until some islanders started to do the maths.

Maggie Fyffe, secretary of the trust, said: “I think what we have achieved is fantastic. Eigg is very much a different place now.

“We only recently realised we have passed 100 residents. We never really set targets – slow and sustainable growth is what is important.

“It is also pleasing to see such a diverse population with a healthy demographic. To have 19 children here is wonderful and the oldest resident is in her 80s.

“It is a good and varied mix. We have achieved a lot and we hope to achieve even more in the years to come.

“There is no question [the buyout] has been worth it. The employment opportunities have increased considerably and we have renovated a lot of houses and improved the environment. We have a lot to be proud of.”

It is believed the 100th resident was a baby boy born in January, but there have also been new residents moving to Eigg, including the new owner of a stunning home said to have inspired parts of JRR Tolkien’s Lord of the Rings trilogy, which was put up for sale for £230,000.

Eigg was Scotland’s first major community buy-out and came after decades of problems with absentee landlords. The purchase paved the way in the land reform movement throughout Scotland.

Among its achievements, Eigg has the first completely wind, water and sun-powered electricity grid in the world. It was on 12 June 1997 the residents bought the island for £1.75 million, aided by a £1m gift from an anonymous donor.

Her identity still remains a closely guarded secret. In the 20 years of community ownership, the population of Eigg has increased more than 60 per cent.

Five children now attend the primary school and are among the 19 children on the island – older youngsters attend Mallaig High School, 18 miles away on the mainland. The Isle of Eigg Heritage Trust, which owns the island, has over the years built a tea shop and set-up forestry projects and created much other employment. It even runs its own building company.

Eigg’s former owners included former Olympic bobsleigher, Keith Schellenberg, who brought many of Eigg’s current residents to the island – but ended-up being booed off the isle.

Briefings

Loch Carron no more

<p>Marine conservation tends not to make the headlines - unless you&rsquo;re a diver or someone who seeks a sustainable living from the sea, it&rsquo;s hard to become excited about what&rsquo;s happening out of sight and under the surface. But this is becoming an increasingly contentious area of public policy. Some communities, most notably on <a href="http://www.arrancoast.com/">Arran</a>, are leading the way on this but shocking destruction of seabed habitats continues unabated. The most recent example of &lsquo;demolition by dredger&rsquo; occurring in Loch Carron.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Nick Underdown – Open Seas

To read the full blog which includes video evidence of the destruction – click here

What Happened?

This month a scallop dredger working along the west coast of Scotland, to the east of Skye and intermittently transmitting from its Automatic Information Service (AIS) transponder, entered Loch Carron. The vessel was observed in the sea loch – by several witnesses – towing around the area known to hold fragile and productive flame shell beds (we have spoken to several of these people directly). The flame shell reefs were well-known to many, and local fishermen attest that they hadn’t been dredged for at least 10 years, perhaps 15 or 20.

A squad of dedicated divers arrived at the site just a few days later and documented significant and extensive damage to the reef. (Flame shells recover at a rate of about 12% a year and videos show broken flame shells scattered across the seafloor). The footage on Facebook was quickly shared 100+ times. News travels fast in Scotland the village.

A lot of people have asked us whether this is legal? Why isn’t there protection to stop dredgers towing over known reefs? Here’s our view.

We’re not interested in exposing the skipper or boat, but what happened in Loch Carron exemplifies a much broader problem about the state and management of our inshore waters and is a story that deserves telling.

What’s the Problem?

Causing damage like this is legal. Under existing fishing regulations, scallop dredgers can operate in Loch Carron for 6 months of the year.

Although scallop dredging is one of the most destructive forms of fishing in Europe, it is banned in just 4.4% of Scottish inshore waters (waters inside of 12 nautical miles). Outside this 4.4% there are some seasonal restrictions (Loch Carron was included in one), but other than that it’s a free-for-all. For decades now, people have questioned this situation, but the regulatory response has been inadequate and piecemeal. New rules designed to regulate scallop dredging are due to come into force in June. Yet these only make incremental steps toward changing the number of dredges a boat can use, and the size of scallops that can be landed. The measures also ignore the Scottish Government’s own expert advice to protect reefs from dredging.

The event in Loch Carron has caused nothing short of outrage and bewilderment. Divers are as devastated as the reef itself. Local fishermen are up in arms but few feel able to speak up publicly due to fear of recriminations from other fishermen on the water (gear conflict is acknowledged as a major problem and can stymie open debate about inshore management). Unfortunately this is not – contrary to some comments – an isolated incident. We have received frequent reports of other rich areas of seabed (essential fish habitats) being dredged or intensively trawled.

Like everyone else we think we should be basking in the reflected glory of our fishing heritage, proud of the healthy and tasty seafood sourced from our coastal seas. The trouble is that the current resource mismanagement of our inshore waters does not allow it.

Briefings

Throw away no more

<p>It&rsquo;s fast becoming a lost art &ndash; mending things. We live in an age in which almost every item we buy is assumed to be disposable. Something breaks or looks worn out and the default response is to head to the shops for a replacement. But it wasn&rsquo;t always this way and within the next couple of years the Scottish Government will bring forward legislation that will promote the idea of the <em>circular economy</em> &ndash; aiming to keep resources usefully employed in the economy for much longer. As ever, communities are already in the vanguard of this much needed behaviour shift.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Christine Cole, Alex Gnanapragasam. The Conversation

A not-so-quiet repair revolution is taking place in communities across Britain. Consumers, fed up with having to throw away broken phones, toasters and other appliances, are instead meeting to learn how to repair them and to extend the lifetime of their products. These repair “pop-up parties”, where like-minded people can improve or learn new skills in a supportive environment, can prevent still-useful products from ending up in the bin, while saving money.

Advances in technology and new applications, combined with faster product obsolescence, means that electrical and electronic equipment make up one of the fastest growing waste streams in the world. The growing demand for these products is also driving unprecedented levels of resource extraction to keep up with increased rates of manufacturing of everyday goods – something that the planet can hardly support.

The number of electrical appliances and devices in UK households tripled between 1970 and 2002 and it continues to grow – the average household now owns around 41 electrical items. Many products develop simple faults which are challenging for the amateur to repair, resulting in replacement products being purchased and equipment with small faults being disposed of. For many consumers, repair is now only an option for high cost items such as cars and personal computers, or for household fixtures such as heating systems – washing machines, kettles and toasters are easier just to throw away.

The ability to repair goods is key to maintaining the functionality of products and delaying, or avoiding, their disposal. The government recognises the value of repair as part of a waste reduction strategy, and the Welsh and Scottish governments have also signalled strong backing for practical action that encourages a circular economy. In Sweden, there are plans to reduce the VAT on repair work from 25% to 12%, and in France there are penalties for “planned obsolescence”, intentionally producing goods with short lives. Germany and Spain have also been looking at the issue.

Restarts and pop-ups

Community-based organisations are providing innovative approaches to the repair of a variety of products including clothing and electrical equipment. Access to information, spare parts and tools is available on websites like iFixit, which publishes guides that teach people “how to fix almost anything” and invites users to create new ones.

SEE THE AWARD WINNING EDINBURGH REMAKERY

The London-based Restart Project is a community-based repair initiative that runs a forum for motivated individuals to attempt repairs that extend the working lifetime of a variety of items, concentrating primarily on electrical and electronic equipment, and promotes awareness of recycling routes for items they can’t fix.

Restart also arranges pop-up events, where members of the public can take along broken electrical items and attempt to repair them with some support. Restart do not charge a membership fee, and admission to the events they organise is also free. Their aim is simply to enable repair to help extend the lifetime of electrical and electronic equipment and reduce the number of these items that become waste. Restart’s volunteers act as “repair coaches”.

They are also social gatherings, so even if repairs are unsuccessful, participants are still happy to go along and have a go.

Restart also acts as an education tool: through a variety of media channels they distribute information and raise awareness about the environmental impacts of end-of-life products and signpost those with unsuccessful repairs to recycling schemes. Some local authorities have also shown support for these initiatives.

Extending the network

Despite the good work being done, the repair network is complex and fragmented – there could be more of them, more widely located, and better known to consumers. Some consumers lack the skills, knowledge or confidence to attempt repairs, even when the resources are available. In a recent study conducted in partnership with The Restart Project, we asked participants at pop-up repair events about their previous experiences of repair. We also asked them about their recycling behaviours and their experiences at the pop-ups. Over half the participants had previously attempted to repair items on their own with different levels of success.

Confidence appears to play an important role in willingness to attempt repairs. It’s often easy to learn how to repair and purchase the tools and parts online, but the compact design of electricals and electronics often makes it an unforgiving task. Pop-up repair events offer a supportive environment in which you can receive help and support completing repairs, building your confidence.

Participants also described a lack of trust in commercial repair services with nearly half of the participants unable to name a repairer they trusted. Several mentioned that the perceived cost of a repair would discourage them from using local, paid-for repair services.

Informal community-based enterprises such as The Restart Project appear ideally placed to develop local networks and respond to the gap in trust.

We also identified that participants were less likely to recycle their electrical items than other waste such as paper, glass and tins. This is a problem because electrical items contain materials which require large energy inputs to create and transport. Nevertheless, pop-up repair events may be able to encourage correct disposal of broken and unwanted household items by telling people how best to dispose of them.

Pop-up repair events, such as those organised by Restart, have the potential to reinvigorate our enthusiasm for repair.

Briefings

Toolbox to go

<p>A publication that has been around for a while but for some reason has remained pretty much under the radar in Scotland is <em>STIR &ndash; the magazine for the new economy</em>. Last month&rsquo;s edition contained a whole range of how-to guides covering loads of useful stuff that communities might want to look at. We have acquired some free copies to distribute to anyone who&rsquo;d like one. Fingers on buzzers. First come, first served.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: STIR

Stir to Action is a community organisation that publishes a quarterly magazine, runs workshop programmes and short courses, produces how-to resources for setting up co-operatives and community enterprises, commissions original artwork and facilitates social economy start-ups.

“The best magazine on the commons out there.”          Michel Bauwens, P2P Foundation

STIR magazine is filled with so much that matters for the future, that it was a real find. My day job is heading the Plunkett Foundation, which brings co-operative solutions to rural communities, and STIR is exploring the issues that, looking ahead, will matter to all communities and to the most forward thinking now.”         Peter Couchman, Plunkett Foundation

“Stir To Action is proof of the remarkable things a small group of passionate people can achieve when they put their minds to the grindstone.”         Robert MacFarlane, Author

“In a world crowded with opinions but often empty of hope, STIR magazine is essential reading. You won’t find its combination of provocative theory and practical example anywhere else. I’m yet to finish an edition of STIR without changing the way I see the world.”     Anna Laycock, Finance Innovation Lab

“Stir is fast becoming the house magazine of the cooperative commons movement. Each issue brings together serious and authoritative editorial on a wide range of UK and international subjects. It’s a must-read.”        Sion Whellens, Calverts Co-operative

“Stir Magazine is deeply informative, radically inspiring and totally damn beautiful. This is what I want the future to look like.”        Brett Scott, Author of The Heretic’s Guide to Global Finance

Briefings

Local taxes for local services

<p>If democracy is about holding people to account for their actions, perhaps one of the reasons so many people have decided to turn their backs on the ballot box is because councils have so little fiscal autonomy. Councils are forced to rely on Scottish Government for 85% of their income, and so the extent to which they are really accountable for what they do is extremely limited. Think tank Reform Scotland argue that complete control over all local tax revenues is the only way to revitalise local government.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Nathanael Williams, Commonspace

A REVOLUTION in local government can only happen if local councils control and raise all the local taxes in their areas, according to leading pro-market thinktank, Reform Scotland.

This week the body warned that unless all local taxes were put under the complete control of councils “real democracy” would be weakened.

In the group’s manifesto, to be published before the local elections on 4 May, Reform Scotland will also state that such a policy would strengthen local democracy and make councils more accountable.

Geoff Mawdsley, director of Reform Scotland, said: “At the moment local democracy is severely constrained because councils have insufficient power to do what they would like to do and are not genuinely accountable to voters. The key point is that it should be up to the people we elect next month to run our councils to decide how much, and how, we should be taxed in order for those councils to be run.

“Genuine political and fiscal power should be in the hands of local communities.” Andy Wightman MSP

“If voters don’t like how they decide to do it, then they can remove them, just as they can at Holyrood or Westminster. That’s real democracy.”

The Scottish Government recently ended the council tax freeze, but Reform states that the main issue is who is in control of local rates.

Reform Scotland said it believed that local democracy in Scotland was being eroded because power over local taxation was not under effective control of councillors, and it called for council tax to be devolved in full.

Mawdsley also said that not only local taxes but business rates should be fully devolved with councils being given the power to introduce new taxes, or scrap existing ones, to suit their local circumstances.

“At the moment local democracy is severely constrained because councils have insufficient power to do what they would like to do.” Geoff Mawdsley

Together, these changes would give councils complete power over about half the money that they spend, with the rest coming from central government.

Andy Wightman MSP, local government spokesperson for the Scottish Greens, said: “Genuine political and fiscal power should be in the hands of local communities. Instead, we’ve seen increasing centralisation that undermines councils and the services they deliver. Reform Scotland’s contribution is well timed and well made.

 “In November, I led a Holyrood debate on local democracy, in which SNP and Conservative MSPs disappointingly voted against a motion endorsing the final report of COSLA’s cross-party Strengthening Local Democracy commission. In parliament, I have argued for a fiscal framework for local government, reform of local taxation and will be consulting shortly on incorporating the European charter of local self-government into Scots law.

“Greens at council level are fighting hard to revitalise local democracy, pushing for every community to have a say in council budgets and for councils to have the powers other European towns and cities take for granted. While some other parties are shamefully treating the council elections as a proxy for constitutional issues, Greens are clear that local services matter, communities should be trusted to decide their future, and that local democracy is worth fighting for.”

Briefings

Crowdsourced support

<p>Crowdfunding started out as a platform for budding musicians seeking donations from their fans in order to fund digital recordings. It subsequently exploded into multiple platforms that are used by anyone needing to raise funds for virtually anything. In some cases, crowdfunding campaigns assume a significance that extends beyond the original purpose. Andy Wightman has done more than anyone to advance the cause of land reform in Scotland and when his investigative work resulted in him being sued for libel, he put out a call for help. Within hours his funding target had been smashed.&nbsp;</p> <p class="MsoNormal">&nbsp;</p>

 

Author: BBC

A defamation case against a Green MSP for a “substantial” sum of money has begun at the Court of Session.

Wildcat Haven Enterprises has taken Andy Wightman to court over posts he published on his personal blog.

The Lothians MSP and land reform campaigner has crowdfunded more than £30,000 to fight the case.

Wildcat Haven have been ordered to put up a security of £50,000 in order to push on with the action, with defences to be lodged after this is paid.

The company sells “souvenir” plots of land measuring one square foot, which it says can allow backers to “help us by actually buying part of the land we plan to conserve”. Mr Wightman had written a blog questioning their approach.

The MSP has said losing the case could force him into bankruptcy, potentially costing him the seat at Holyrood he won in 2016.

Mr Wightman is being represented in court by Roddy Dunlop QC, who said it appeared the pursuers had assets of less than £5,000. Due to this, he asked for them to put up a “caution”, a bond of security, of £50,000 for the case.

This was not opposed by lawyers for Wildcat Haven Enterprises, and Lord Uist approved the motion. He said if the caution was produced, defences should be lodged in the first week of May.

Mr Dunlop described the damages being sought by the pursuers as “substantial”. Mr Wightman has previously stated that the claim against him is of up to £750,000, plus interest.

Briefings

Counting begins

<p>Two years ago, the most comprehensive attempt yet to describe the scale and scope of social enterprise in Scotland was undertaken. Once under the skin of this &lsquo;sector&rsquo;, the researchers discovered just how tricky the task of producing a precise picture would prove to be. For instance, 36% of social enterprises that they had identified didn&rsquo;t even consider themselves to be a social enterprise. Undaunted, the doughty team of researchers are embarking on Census 2017. If you can answer yes to five simple questions, they&rsquo;d really appreciate 15 minutes of your time.&nbsp;</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Social Value Lab

Welcome to the second official count of enterprising charities and social enterprises – organisations operating for the public good and generating income from trading activities. The project is being carried out on behalf of the Scottish Government, Highlands and Islands Enterprise, Scottish Enterprise, Big Lottery Fund, and others.

The aim is to ensure that the work of organisations like yours is better understood and better supported. The findings from the earlier 2015 Social Enterprise Census have already been widely used and made a huge difference. For example, they have been used to lobby on important issues for the sector, informed the Scottish Parliament’s first debate on social enterprise, and informed Scotland’s bold new strategy to support social enterprises. See the results of the 2015 Census here.

If you can answer ‘yes’ to the following questions we want to hear from you:

– Does your organisation have social or environmental goals?

– Are you earning income from selling goods, charging for services, or delivering contracts?

– Do you aspire to greater financial independence through earned income (reducing reliance on grants)?

– Do you reinvest your surpluses and retain assets to further your social/environmental goals?

– Are you operating independently (not as a public body)?

You may generate income from fees or contracts, doing anything from running a village hall, to providing arts activities, to delivering a care service. Whatever the case we want to hear from you. 

Please take just 15 minutes to register some basic information about your organisation and its work. While you don’t need to answer every question it will be very helpful to us if you can. 

Any information that you provide will be treated in the strictest confidence and no information will be released that can separately identify the views of you or your organisation.

Respond soon to enter our FREE PRIZE DRAW, and you could be the lucky recipient of one of three iPads up for grabs. Respondents will also be the first to receive a copy of the published findings.

Just click here to get started.

Briefings

Solution to dereliction

<p>The Community Empowerment Act has many components to it and there is a serious discussion to be had with Scottish Government about how these opportunities are to be promoted and indeed how they all connect to the many other bits of related legislation and policy. SCDC have produced an excellent and easy to read <a href="http://www.scdc.org.uk/what/community-empowerment-scotland-act/">summary of the Act</a>. A new piece of research by Common Weal looks at how the Act could support communities to redevelop the many derelict sites that blight some of the most disadvantaged parts of Glasgow.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Nan Spowart, The National

A POVERTY-STRICKEN part of Glasgow could be transformed by a community takeover of derelict sites, according to a report.

The new study by the Common Weal think tank argues that the local economy of Glasgow north-east could be rebuilt if the many derelict sites were used by the community.

The findings, released ahead of this week’s local elections, are based on an analysis of the area which identified 40 derelict sites that could be utilised under the Scottish Government’s Community Empowerment Act for the good of the local community and economy.

The report, Mapping economic potential in north-east Glasgow, advocates asset based community development (ABCD) as a new regeneration strategy for the area.

“ABCD is the theory of utilising a community’s skills and strengths including those not traditionally included in conventional economic analysis to empower and motivate the community to build a better, more prosperous environment,” said the report’s author Mhairi Love, an economics student and parliamentary assistant from Glasgow.

“Communities are not problems that can be fixed within a specific time frame; and equally, lasting change is not something which can be ‘done’ to people.

“This means of achieving change advocates a proactive, citizen-led approach, as opposed to citizens being passive recipients of policies which have led to gentrification, unaffordable housing and unsustainable models of employment such as low wage jobs in large retail outlets.”

The report cites examples of community projects that have used the Community Empowerment Act to good effect in the area, including the Barmulloch Community Development Company’s community buyout of a disused church hall which now has community facilities and holds regular welfare advice clinics and classes for women who have been victims of trauma. It also hosts community engagement processes as well as fun family events like C in the Park, their annual community festival.

“Barmulloch Community Development Company started from nothing and was led by the community in establishing itself as an institution providing services for everyone in the area to enjoy,” said Love.

Other examples include Young People’s Futures in Possilpark which has built a job club and a community centre, and MsMissMrs, a social enterprise that started in Balgrayhill Community Centre making superhero-style underwear called “empowerment pants”, which reinvests profits into running “self-empowerment” programmes for girls and women to encourage them to fulfill their potential “Two problems that Glasgow faces are poor use of derelict land in parts of the city and also poor levels of economic development in parts of the city,” said Robin McAlpine, director of Common Weal.

“The fact that these two problems tend to occur in the same places should be showing us the way forward, because if the city is more imaginative it could see that each of these helps to solve the other. Give people access to the land resources which help them to regenerate their communities. Surely that just makes common sense?”

Anne McLaughlin, the MP for Glasgow North East, has been an advocate of urban land reform since elected and helped write the report.

She said: “The Scottish Government has put in place the legislation and the funding for communities to take control of neglected land and buildings.

“My team offers practical help, for example, by training them to access funding. I am saying to the people of north-east Glasgow, have confidence in yourselves, you are the assets here and it’s time you were recognised.”

Briefings

Islands stand firm with EU

April 19, 2017

<p>For those who choose life on Scotland&rsquo;s islands, it must require some kind of trade-off &ndash; dealing with the particular challenges of living in remote locations in order to enjoy the most spectacular of settings surrounded by sea. Many of these challenges are common to all islands and for some years now, the Scottish Islands Federation has been linking with other island networks around Europe to build a collective voice in Brussels. Last month&rsquo;s signing of the Smart Islands Declaration signals another example of what Scotland stands to lose when Brexit really does become Brexit.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Alkisti Florou EU Affairs Advisor, DAFNI Network of Sustainable Greek Islands

28 March 2017 marks a strong comeback of islands in the European Parliament. The “Smart Islands Event: Creating New Pathways for EU islands” gathered over 100 European island representatives, stakeholders and policy-makers to officially present the Smart Islands Initiative, one that sheds light on the potential of islands to emerge as ideal territories for the deployment of innovative technologies in the fields of energy, transport & mobility, water & waste management and ICT.

During the event 36 island representatives from Croatia, Cyprus, Denmark, Estonia, France, Germany, Greece, Italy, Ireland, Malta, Portugal, Spain, Sweden, the Netherlands and the UK signed the Smart Islands Declaration, cornerstone document of the Smart Islands Initiative.

The event was co-hosted and warmly supported by a group of 11 MEPs from Member States with islands, led by MEP Eva Kaili. Mrs Kaili also expressed her intention to table, in the coming months, a Motion for Resolution so that the Smart Islands Declaration is formally endorsed by the European Parliament.

In his intervention, Director-General for Energy Dominique Ristori pointed to the immense potential of islands to host innovative projects that can have a positive impact on local economies, all while helping Europe meet the goals it has set in a number of key policy areas, including climate, energy, transport and mobility.

The two roundtables, composed of experts from the European Commission, European Investment Bank, European Economic Social Committee, Committee of the Regions, Conference of Peripheral and Maritime Regions, FEDARENE and EURELECTRIC along with market and civil society representatives, provided useful insights on islands’ intrinsic characteristics, as much as on the smart technologies, financing instruments and policies available which, if properly combined, can boost local sustainable development on islands.

Revealing of the on-going work to bring islands on top of the EU policy agenda was the reference by Clive Gerada, Chair of the Energy Working Party of the Maltese Presidency, on the Political Declaration on Islands to be signed during the Informal Meeting of Energy Ministers on 18 May in Valetta.

The Smart Islands Event marks an important milestone on islands’ pathway to becoming smart, inclusive and thriving societies, contributing to an innovative and sustainable Europe.

For more information, please visit www.smartislandsinitiative.eu

 

Camille Dressler is chairperson of Scottish islands Federation

Briefings

Debate and challenge is important

<p>Scottish Government&rsquo;s <a href="http://www.gov.scot/Resource/0051/00516611.pdf">3 year action plan</a> to support the growth and development of social enterprise was launched a fortnight ago. The plan contains 92 separate actions &ndash; some costed over three years, with others of a more short term nature. The plan is well thought through and ambitious in its scope. But with so many new developments being funded, it&rsquo;s vital that a level of healthy debate and challenge is maintained within the sector so that unintentional (or even intentional) drift doesn&rsquo;t take place. A few people, including myself, became a bit exercised about an example of this last week.</p> <p class="MsoNormal">&nbsp;</p>

 

Author: Graham Martin, Third Force News

A backlash is building over moves to let private companies get their hands on third sector cash.

Lender Social Investment Scotland (SIS) has said it has Scottish Government backing to launch a new fund which will be open to the private sector.

SIS currently provides cash – much of it public money – to charities and social enterprises.

A proviso for funding has been that organisations have an “asset lock” – which means profits are put back into the business rather than going to shareholders or into the pockets of individuals.

Now, however, it seems that SIS is set to bust the asset lock by setting up a new fund for private companies – as long as they use the cash to do social good.

It will still offer funds to charities and social enteprises in the old way, but a backlash is building over its plans to open the new fund – backed by Scottish Government cash – to the private sector.

SIS chief executive Alastair Davis told TFN: “SIS has been awarded funding from the Scottish Government under a programme of early interventions to support the delivery of the new ten year strategy for social enterprise.

“SIS is planning a programme of awareness raising and education with a range of stakeholders… in the future, this work is expected to include the development of a new fund to support mission-led businesses and entrepreneurs.

“Please note that there has been no change to the eligibility criteria for all existing SIS funds and these remain open only to those organisations with an appropriate asset lock. There are no plans to change the eligibility criteria for these funds. SIS will continue to grow its support for these organisations with new programmes of investment and support.”

However, this has caused a furious backlash from leading third sector figures, who questioned whether cash which could go to the third sector is now been offered to the private sector.

Angus Hardie, director of the Scottish Community Alliance, said: “Obviously SIS can do what it wants with its money. But if it’s not its own money – indeed if it’s public money that was given to it to support the third sector – then it is clearly unacceptable if that money goes to private enterprises irrespective of whether they are mission led or with social purpose or whatever other weasle words are used to get round the fact that they are not part of our sector.

“What’s going on here is a deliberate blurring of a line which should be very clear and unequivocal.

“It separates those enterprises that are for private profit and those that aren’t. The only reason I can see that people want to blur this line is because it suits their organisation’s best interests – and that is irrespective of whether it is in the third sector’s best interests.”

Aiden Pia, executive director of social enterprise network Senscot, was equally scathing.

He said: “Some of what we call social investment is too often driven by the pressure on lenders to get money out the door. SIS announced that it is to open products to profit for purpose private businesses.

“However, the third sector is a valuable brand which the general public associates with charities and asset-locked social enterprises – and which both eschew private profit.

“Simply widening eligibility to include unregulated private profit may get more money out the door, but at the expense of third sector clarity.

“SIS can obviously lend the funds it holds to whoever it chooses – but there is the question as to whether or not this activity should be supported by Scottish Government’s Third Sector Division.”

A Scottish Government spokesman stressed it is not currently backing a new Social Investment Scotland fund.

He said: “In December 2016, the Scottish Government published Scotland’s Social Enterprise Strategy. This ten-year strategy was fully co-produced with the social enterprise community and aims to build and strengthen the social enterprise sector. The priorities outlined in the strategy will be delivered through a series of underpinning action plans, the first of which is due for publication on 12 April.

“Social Investment Scotland delivers the £16 million Social Growth Fund, which is supported by Big Society Capital and Scottish Government. The fund provides loans of between £100,000 and £1 million to eligible third sector organisations. There are no plans to change the eligibility criteria for this fund.”

The Scottish Government announced a £1 million package of support for social enterprise in Febraury this year following the publication of its 10 year social enterprise strategy. Of that £25,000 was provided to Social Investment Scotland to investigate options to attract new private investment to the sector more generally. In addition, £50,000 was provided to deliver a programme of awareness raising activities, events and materials to raise the profile of social enterprise to aspiring entrepreneurs. 

“Earlier this year, Social Investment Scotland received support from the Scottish Government to raise awareness about social enterprise to aspiring entrepreneurs and to investigate options to attract new investment for the sector more generally. The Scottish Government has not been asked to contribute to the establishment of any new Social Investment Scotland investment funds.”