Clachan Flats Windfarm Trust: Appointment of Trustees
Argyll and Bute Council · 2 September 2025
Back to Bute and Cowal Area Committee — 2 September 2025 and its agenda
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ARGYLL AND BUTE COUNCIL BUTE & COWAL AREA COMMITTEE CUSTOMER SERVICES 2 SEPTEMBER 2025 CLACHAN FLATS WINDFARM TRUST: APPOINTMENT OF TRUSTEES 1.0 EXECUTIVE SUMMARY The Section 75 Agreement associated with planning application reference 02/00953/DET obligated the Council to establish a community trust fund to allow those communities directly affected by the windfarm to administer certain funds for charitable, educational, environmental or other appropriate purposes which do not adversely affect or work against the interest of the windfarm. In response to this clause the Clachan Flats Windfarm Trust has been operating as an unincorporated trust since being established in 2008. The purpose of the report is to advise of work undertaken to formally establish the Trust as a corporate body, and to invite the Committee to consider the composition of the Trust, taking into account changes through the passage of time since the in Area Committee first considered the establishment of arms length Windfarm Trusts, the S75 Agreement, discussion with the current chair of the Clachan Flats Windfarm Trust, and discussions with Scottish Power Renewables who are the current benefactors. The report recommends changes to the trustees identified in 2008, given considerations outlined in the foregoing paragraph and feedback received both from Scottish Power Renewables, and from the Windfarm Trust members. There may be some financial implications in terms of increasing the number of community representatives via an electoral process although this would depend on whether an election was contested. It is however anticipated that any cost could be accommodated within existing budget.
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ARGYLL AND BUTE COUNCIL BUTE & COWAL AREA COMMITTEE CUSTOMER SERVICES 2 SEPTEMBER 2025 CLACHAN FLATS WINDFARM TRUST: APPOINTMENT OF TRUSTEES 2.0 INTRODUCTION 2.1 Bute & Cowal Area Committee agreed in November 2007 to recommend a policy that “In all circumstances that a Community Trust is established this will be along the lines of the Cruach Mhor Trust as an independent Trust at arms length from the Council and that the question of whether Councillors would serve on that Trust be determined at a later date once the Council has resolved its consideration of its further arrangements for dealing with planning applications”. On 20 December 2007, the Executive Committee, taking account of recommendations on the same matter from the Mid Argyll, Kintyre and the Islands Area Committee, agreed “that the existing local Area arrangements for the administration of community payments and the make up of the Trusts continue” and that the question of Councillors being Trustees would be determined at a later date in view of discussions regarding restructuring the planning committee which were being progressed at this time. On 4 November 2008, the first Councillor representing the council on the Clachan Flats Windfarm Trust was appointed per those decisions, and Area Corporate Services Manager proceeded to formally constitute the group based on the model for the Cruach Mhor Windfarm Trust, to be known as Clachan Flats Windfarm Trust. This report invites the Area Committee to further consider the matter of Trustees in light of work undertaken to formalise the Trust by way of a more formal Trust Deed. 3.0 RECOMMENDATIONS 3.1 It is recommended that the Committee agree to revise the list of Trustees appointed to the Clachan Flats Windfarm Trust by:
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1. Agreeing that the Trust Deed reflect that Scottish Power Renewables have declined the offer of appointment as a Trustee; and 2. Resolving to increase in terms of the number of community representative positions on the trust from one to two, and that arrangements for the election of community representatives be delegated to the Returning Officer to progress. 4.0 DETAIL 4.1 The Clachan Flats Windfarm Trust was established in 2008 following agreement of a policy position that the existing local Area arrangements for the administration of community payments and the make up of the Trusts continue. A report to the Bute & Cowal Area Committee reported on various arrangements including composition of the Trust as follows: 2 Representatives from Cairndow Community Council; 1 Elected Member for Ward 6 (Cowal) of Argyll and Bute Council; A representative from Scottish Power Renewables; and 1 Locally elected member of the community who is not an employee of Scottish Power Renewables or the Council. 4.2 Member of the Bute & Cowal Area Committee may recall that Officers of the Council had initially taken forward a similar paper in September 2023 regarding the Cruach Mhor Windfarm Trust. In a similar vein, while there was no specification for the Trust to be established by way of a formal Trust Deed, the manner in which the Trust has been established gives some concerns about the exposure of its members and it is the opinion of officers that a more formal set up would be more appropriate. A draft trust deed has been prepared and has been submitted to the Clachan Flats Windfarm Trust to obtain their feedback. Following discussion with the Chair of the Windfarm Trust, the Trustees have agreed that an increase from one to two locally elected members of the community would be beneficial. 4.3 In taking this piece of forward it has also been established that Scottish Power Renewables do not feel it is appropriate for them to be Trustees given the community aspect of the Trust and have indicated that they will decline any offer to serve as a Trustee. Their participation is not necessary in terms of the S75 Agreement which stipulated that funds should be awarded following consultation with the relevant local community councillor, local authority councillor, and the council. On the basis that they have confirmed that they do not wish to be a serving Trustee, it is recommended this be reflected in the trust deed for the Clachan Flats Windfarm Trust.
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4.4 Given the foregoing comments it would also be appropriate to revisit the matter of Trustees and having had discussions with the Trust on this matter, it is suggested that number of elected local representatives increase from one to two. 5.0 CONCLUSION 5.1 While the decision to establish a community trust to disperse community benefit funding from the Clachan Flats Windfarm was taken forward, it has recently come to light that this does not provide the most adequate legal protection. Given the work to remedy that is ongoing, it would be appropriate to review decisions regarding trustees for the reasons set out in section 4 of the report. 6.0 IMPLICATIONS 6.1 Policy – recommendations are consistent with the agreed position reached in 2007 that the existing local Area arrangements for the administration of community payments and the make-up of the Trusts continue. 6.2 Financial – There may be increased cost to the council in organising a second election for a further community representative. 6.3 Legal – changes to the Trust will provide more protection for members that the current unincorporated status offers 6.4 HR - None 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics - None 6.5.2 Socio-economic Duty - None 6.5.3 Islands – N/a due to area covered by the trust 6.6 Climate Change – Depending on how the trust meets, there may be additional travel undertaken in attending meetings. 6.7 Risk - None 6.8 Customer Service - None Douglas Hendry Executive Director with responsibility for Legal & Regulatory Support Policy Lead – Councillor Mark Irvine, Community Planning and Corporate Services 12 May 2025 For further information contact: David Logan, Head of Legal & Regulatory Support, Kilmory, Lochgilphead (01546 604322) or Melissa Stewart, Democratic Services Manager, Kilmory, Lochgilphead (01546 604331)