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Community co-operatives are multi-functional businesses run for the benefit of the residents of geographical communities or neighbourhoods, and directly owned and controlled by them. [1] During the 1970s and 1980s, about two dozen of them were established in peripheral communities in the north and west of Scotland, often with public support provided through the Highlands and Islands Development Board (HIDB). Typical commercial activities were general shops, agricultural supply, craft workshops, hostels and other tourism projects. They have helped to stem depopulation, encouraged the development of the local economy, provided jobs, and improved local infrastructure and living conditions. [2]
A fuller definition of the wider community business movement (of which community co-operatives in the Highlands and Islands are part) is:
Community co-operatives are an expression of what has become known as a community-led local development (CLLD) approach.
The HIDB had powers to encourage the formation and growth of community co-operatives, under the powers given to it under the Highland and Islands Development (Scotland) Act 1965, which had established the board with "the purpose of assisting the people of the Highlands and Islands to improve their economic and social conditions." [4]
The development of HIDB's community co-operative scheme can be traced back to 1976, following contact with similar schemes on the west coast of Ireland, mainly in Glencolumkille in Donegal and Innisman in the Aran islands. [5] [6] [7] [8]
In November 1977, as a result of the lessons from Ireland, and a series of public meetings, [9] the HIDB launched a community co-operative support programme to encourage enterprise initiatives in marginal areas where its conventional approach to economic development was less successful and where depopulation was increasing. [10] In the Western Isles, where the programme was initially developed, the co-operative businesses used the Gaelic name co-chomunn (plural co-chomuinn). The pilot programme, using the 'multi functional community co-operative model', [11] appointed two field workers to stimulate interest and offer practical support. The first phase demonstrated some valuable lessons, with successful co-ops being established in communities ranging from Ness in Lewis (population 2,500) [12] to the island of Vatersay in the south (population 150). [13]
A year after the launch of the HIDB community co-operative support scheme, with increasing interest arising in other communities, the programme was extended throughout the rest of the Highlands and Islands, and a third field worker, based initially in Inverness, was appointed to cover the Argyll, Highland, Orkney and Shetland council areas. [14]
The successful development of community co-operatives took a bottom-up approach [15] with initial financial incentives and support from dedicated development workers. The process involved estimating feasibility, business planning and building community support.
If economic viability and community support could be demonstrated, HIDB considered grant assistance to match share capital raised by the community, on the basis that all shareholders had one vote irrespective of their shareholding. Many communities reached out to former residents as well as those living in the area and set the minimum share at £25 or £50.
Community co-operatives were registered as industrial and provident societies using rules developed for the purpose. [16] In the early years, a successful community co-op could also secure funding from HIDB to employ a manager for up to five years. Further funding was possible if a successful grant application was made for individual business units managed by the co-operative. These were eligible for a normal regional development grant and loan package, if considered sustainable by HIDB finance officers.
In 1982 the programme-specific field officers (by that time six in number, based in Orkney, Inverness and the Western Isles) were absorbed into the wider functions of HIDB. 'They had been able to operate alongside local steering groups and provide dedicated support. Under a new plan these workers were encouraged to apply for posts in the finance department of HIDB ..but with a less proactive job description.' [17] However, by 1985 specialised field workers were re-established through the newly-formed Association of Community Enterprises in the Highlands & Islands [ACE-HI] which, with the support of HIDB, continued the expansion of community co-operatives. ACE-HI provided significant technical support, advice and training. It was also instrumental in the very early development of electronic communication and networking through the pioneering use of RURTEL. [18]
For smaller, more remote communities in the Highlands and Islands, "the co-operatives created relatively modest – though locally important – numbers of new jobs, services, and enterprises. [19] The initial focus of the majority of co-ops was in providing local services: they often started by taking on threatened core services like retail shops, petrol stations, without which communities would decline quickly. However, there were instances in which the investment by communities and the HIDB levered wider economic benefits from external sales. Some co-ops developed activities that generated revenue from external sales. For example Co-Chomunn na Pairc (the community co-operative in South Lochs, Isle of Lewis [20]) 'exported' knitwear and farmed fish, the latter with a multinational partner. In Harris, Co-Chomunn na Hearadh, the Harris community co-op, [21] formed a partnership with History Craft of Cirencester to manufacture locally high-quality artifacts for museums and craft centres like its own in Leverburgh [22], which resulted in four new jobs created.
The community co-operatives programme and the HIDB facilitated a range of positive results not the least of which was the creation and nurturing of an internal development dynamic based on community development principles. The ability of communities, with support from agencies like HIDB (which changed to Highlands and Islands Enterprise (HIE) in 1991 [23]) to establish income-generating enterprises paved the way for future community land ownership [24] and community renewable energy projects. [25] Some of these later initiatives were led by people who had gained experience through their involvement in community co-operatives. [26]
HIE continues to support community-led local development as part of its 'Support for Communities Framework 2022-2026'. [27]
New community co-operatives continue to be established in the 21st century, typically to carry on an existing business threatened with closure.
Name | Location | Year established |
---|---|---|
Co-Chomunn Nis Ltd | Lewis | 1979 |
Co-Chomunn Bhatarsaidh Ltd | South Uist (Vatersay) | 1979 |
Co-Chomunn Eirisgeidh Ltd | South Uist (Eriskay) | 1979 |
Co-Chomunn na Hearadh Ltd | Harris | 1979 |
Co-Chomunn na Pairc Ltd | Lewis | 1979 |
Co-Chomunn Scalpaidh Ltd | Scalpay, Harris | 1982 |
Eday Community Enterprise Ltd | (North Isles) Orkney | 1982 |
Hoy Community Co-operative Ltd | (South Isles) Orkney | 1982 |
Co-Chomunn an Iochdair Ltd | South Uist | 1980 |
Papay Community Co-operative Ltd | (North Isles) Orkney | 1980 |
Barra Community Co-operative Ltd | Barra | 1981 |
Hope Workshop Ltd [32] | St Margaret's Hope, Orkney | 1982 |
Kyles of Bute Knitwear Ltd | Argyll & Butes | 1982 |
Balnakeil Craft Village Community Co-operative Ltd | Sutherland | 1983 |
Co-Chomunn Staffain Ltd | Isle of Skye | 1983 |
Fyrish Community Enterprises Ltd | Ross & Cromarty | 1983 |
Mossbank & Firth Community Co-operative Ltd | Shetland Islands | 1983 |
Skerries Community Enterprises Ltd | Shetland Islands | 1983 |
Appin Community Co-operative Ltd | Argyll | 1984 |
Kilchrennan Community Co-operative Ltd | Argyll | 1984 |
Laggan Community Trading Ltd | Lochaber | 1985 |
Fetlar Community Enterprises Ltd | Shetland Islands | 1986 |
Helmsdale Heritage Society Ltd | Sutherland | 1986 |
Foula Community Co-operative Ltd | Shetland Islands | 1987 |
North Isles Community Enterprises Ltd | Shetland Islands | 1987 |
Eid Community Co-operative Ltd | Aith, Shetland Islands | 2002 |
Uig Community Co-operative Ltd | Lewis | 2003 |
Búth Tholastaidh Ltd | North Tolsta, Lewis | 2010 |
Category:Co-operatives in Scotland Category:Highlands and Islands of Scotland