Council Ready to Act if Stalemate Continues over Nigg Yard

Highland Councillors have confirmed their readiness to act if a stalemate continues over the sale of the disused Nigg oil fabrication yard, Easter Ross.
The Council’s Planning Environment and Development Committee has agreed procedures for compulsorily purchasing land - procedures that could be used in the potential compulsory purchase of the Nigg facility.
At Nigg, both the Cromarty Firth Port Authority and DSM, from the West Midlands, have separately held preferred bidder status with the current yard operator, KBR, but have failed in their negotiations to purchase the land, part of which is leased from the Wakelyn Trust.

Following the committee meeting, the Council’s Administration confirmed that the first phase of the agreed procedure has already been triggered as the result of  both the CFPA and DSM failing to agree a deal with KBR to allow either of them to take forward redevelopment of the yard.

This will now allow the Council to determine whether the compulsory acquisition of the yard will satisfy the statutory test under the Town and Country Planning (Scotland) Act 1997. 

Councillor Drew Hendry, Chairman of the Council’s Planning Environment and Development Committee, said: “The public can be assured that we are proceeding as carefully, but as quickly, as possible to ensure that this hugely important  Highland asset is brought back into productive, long term and varied use as soon as possible. As a Council, we have to make sure that Nigg is not allowed to deteriorate further and that is why this Administration is continuing this course of action. I feel sure that this approach will gather wide support."
Councillor Richard Durham is pleased that the Council is showing such a strong lead in breaking a stalemate over the future of the yard. He said: “I am delighted that the procedures have been put in place so promptly to purchase the land, which will allow us to find a new operator.”
                                                          
The council recently agreed that, in conjunction with Highlands and Islands Entrerprise, it would engage a specialist consultancy to develop a long term Vision and Master Plan for the Nigg Yard and adjoining undeveloped zoned land.

Note:  The Nigg yard, which was established in 1972 but has stood substantially vacant for four years, is in two ownerships. The northerly two-thirds is in the ownership of KBR and the remaining southern section, including the dock, is in the ownership of the Wakelyn Trust, but leased to KBR until 2031, with a break clause in 2021. KBR put their land up for sale in February 2005 and had sought to reach terms for the termination of their lease. The Cromarty Firth Port Authority and subsequently DSM, from the West Midlands, had secured ‘preferred bidder’ status to acquire the ownership and secure a new lease with the Wakelyn Trust but neither have been successful and at this time there is no preferred bidder for the yard.