Jackie McCreery

The rural business organisation was speaking after giving evidence to the Scottish Parliament’s Net Zero, Energy and Transport Committee on the Land Reform (Scotland) Bill.

SLE in-house counsel, Jackie McCreery, who appeared on the panel providing evidence said retrospective interference in existing contracts by the Scottish government will only compound the problems faced by the sector in creating opportunities to let land to next-generation tenants.

Ms McCreery said: “The bill as currently drafted will further strengthen the position for 1991 Act secure tenants but do little to inject the vibrancy we need in the sector by encouraging opportunities for new tenants.

“Tinkering retrospectively with the fixed-term tenancies created by the 2003 Act – which were which were once considered ‘safe’ from such interventions – will destroy any trust that government won’t later move the goalposts again.

“We have repeatedly tried to get government to believe us that landlords need certainty that agreements they enter into now will be honoured in future if they are to bring land forward for letting. It is hugely frustrating and ultimately to the detriment of the whole sector, that this message is not being heard. We know from our members that they are still keen to let land and create opportunities but this requires a supportive legislative environment to give confidence for the long term.

“The Scottish government’s stated policy aim is to help tenants plan with certainty and promoting a thriving tenanted farming sector. If this is to be achieved, it needs to radically rethink its plans regarding compensation for resumption.”

SLE added that it was fully supportive of tenants being compensated for losses they incur as a result of land being resumed from the tenancy but requiring landlords to also pay a percentage of the capital value of the land was an ill-founded move.

Ms McCreery added: “We are on record as stating that tenants should be fairly compensated where land is being resumed by a landlord. This should recognise not only the costs attached to reorganising their business operations but also where investment in improvements have been made to the land by the tenant.

“Yet, by the government pursuing a new head of payment to reflect a percentage of the value of the land, it is going far beyond the principle of ensuring a tenant is in the same position as they would have been prior to resumption.

“We also don’t recognise the unsubstantiated claims made by tenant groups that more intervention by government is required in order to protect tenants from landlords. If there is any poor behaviour happening, we would ask for evidence of this so that those isolated cases could be dealt with. Even more regulation is not the answer to isolated issues.

“It is vital that public policy seeks to maximise opportunities to enhance both food production and restore nature and the environment from use of Scotland’s land. By disproportionately favouring one participant or disproportionality penalising another, the Scottish government risks denting that achievable goal. Where land is rented then both landlord and tenant will need to work together to achieve meaningful change in terms of net zero and biodiversity enhancement. This Bill should be creating mechanisms to facilitate and encourage joint working and collaboration rather than pitching parties against each other.”