NFU Scotland says it is opposed to the introduction of an absolute right to buy (ARTB), warning it could have “significant ramifications” for agriculture.
In its submission to the Scottish Government’s review of agricultural holdings legislation, the union instead called for a “complementary package of measures” to restore health in Scotland’s tenanted sector.
It has called for the creation of an independent land adjudicator which could act as an intervention vehicle when parties – either landlord or tenant – fail to deliver basic standards of operation.
President Nigel Miller last night said the union had spent considerable time discussing tenancy issues with members – including tenants, landlords, owner-occupiers and new entrants – before compiling its submission to the government review group.
“Tenure and arrangements must support and encourage investment by either party, and establish systems which see all parties share risk and reward,” said Mr Miller.
“It is clear that delivering positive outcomes for the tenanted sector needs a wide-ranging complementary package of legal standards, industry codes, tax incentives, dispute resolution systems, and an intervention vehicle where parties fail to deliver basic standards of operation.”
He said the industry needed, in the first instance, to establish a robust set of guidelines to govern how it operates and the practices of professionals involved in it.
There was also a need, said Mr Miller, for low-cost dispute resolution and the ability to intervene when systems fail.
“That is why we are promoting the creation of an independent adjudicator. Working alongside an alternative dispute resolution process, where expert determination is the preferred option, the adjudicator would monitor and encourage best practice in the tenanted sector,” said Mr Miller.
“Crucially, it would deal with those who repeatedly fail – the ultimate sanction for failure for landlords being compulsory purchase or, if a tenant, notice to quit.”
On the contentious ARTB issue, Mr Miller said: “As a tool to resolve failures, absolute right to buy may be an answer to some but it has wider, significant ramifications for agriculture.”
He said many NFUS members felt ARTB was just an “escape route” from what they perceived as a dysfunctional tenanted farming system, while others believed it would close down opportunities to access land, and stifle the development of long-term letting arrangements.
The union also called for changes to Section 13 of the current legislation to rebalance the basis of rent determination.
Mr Miller added: “Amendments to legislation addressing issues could also go some considerable way towards achieving this. As could some form of assignation to open up opportunities for new and developing farmers.”