Convener, this might be the appropriate time for me to give notice that I do not intend to participate in the discussion on PE620 because I was involved in the case in a ministerial capacity earlier this year.
Official Report · Committee
New Petitions
Historic Scotland (Church Building Restoration) (PE620)
Speakers
Choose an MSP to read only their contributions- Michael McMahon Lab 15
- Robert McWilliam 10
- Linda Fabiani SNP 10
- Margaret Jamieson Lab 6
- Carolyn Leckie SSP 4
- Jackie Baillie Lab 3
- Sandra White SNP 2
- John Scott Con 2
- Mike Watson Lab 1
The record
53 contributionsThank you for clarifying that. Thank you for attending this morning, Mr McWilliam. You are joined by Margaret Jamieson, your local MSP. You have three minutes in which to outline the reasons for your petition. We will then take questions, before moving on to a discussion.
First, thank you for agreeing to hear my evidence. I am the session clerk at Riccarton parish church in Kilmarnock. The church was built in 1825 and is a B-listed building. It stands on a hill and is the most prominent landmark at the south of Kilmarnock, just off the bypass. In 1997, the church entered into an agreement with Historic Scotland concerning restoration work. That came about because there were serious structural problems with the chancel of the church. We were faced with a choice between instructing that the work be carried out almost immediately or vacating the church. The congregation could not have coped with the cost involved in restoration and decided to vacate the church, at least temporarily, and worship elsewhere. However, at that point our structural engineer brought us into contact with Historic Scotland, which offered us a grant of 60 per cent towards the cost of restoring the chancel. After careful consideration, the congregation decided to accept the offer, which meant that it had the responsibility of finding the remaining 40 per cent. However, before the grant could be made, Historic Scotland required the congregation to agree to carry out all restoration work that Historic Scotland considered necessary. There were six phases to that work. The congregation had to agree that it would carry out all six phases, although no time scale was placed on that. However, there was a time scale for the work on the chancel, which became phase 1A. The congregation had already carried out a phase previously. There was a time scale for the work on the chancel because of its structural problems. That work was carried out with 60 per cent funding from Historic Scotland. The congregation is grateful for the financial help that we have received so far from Historic Scotland because we are fully aware of the many demands that are made of the organisation, but I have to say that, the congregation would not have agreed to carry out all six phases if we had not made the reasonable presumption that 60 per cent funding would be available for each phase.When the chancel was completed, we had to proceed to phases 2 and 3, expecting to receive 60 per cent funding from Historic Scotland. Phase 2 involved repairs to the roof and putting back the original tiles and phase 3 involved the steeple, which had become dangerous and had had an order placed on it under section 13 of the Building (Scotland) Act 1959, meaning that it had to be inspected every three months and that the church could have been closed at any time. When we entered into the agreement, there was no Heritage Lottery Fund and we gave the undertaking without any knowledge of that source. However, the 40 per cent funding that the congregation found for phase 1 of the project is more than 10 per cent of the cost of all six of the phases, which is estimated at £1.2 million. When planning our financial arrangements for phases 2 and 3, again, we based our plans on the assumption that we would receive 60 per cent funding—
You have spoken for almost five minutes. Could you wind up, please?
I will be quick.Our point is that, in our case, the system that is operated by Historic Scotland is morally wrong. I have five letters from which I can quote that demonstrate that it was always understood that there would be 60 per cent funding at each phase. A figure of less than 60 per cent was not mentioned by Historic Scotland until two weeks after the work on phases 2 and 3 had started. Admittedly, that was because our architects asked whether the work could start because of the section 13 order. Historic Scotland, of course, states that, if permission is granted for work to begin before the grant has been awarded, it does not undertake to fund the work that has been done if no grant is awarded. However, the project was so far advanced that our architect had every reason to expect that the grant was coming and that it would amount to 60 per cent of the cost.When we were told that we would receive only 45 per cent, the work had been started and we had no alternative but reluctantly to ask the Church of Scotland to agree that the work carry on. However, even with the Heritage Lottery Fund grant, there is a shortfall of £41,000, which we—
I will have to ask you to come to a conclusion.
Certainly. We are asking for the 60 per cent funding arrangement to be reinstated in our case as that was the understanding at the start.
I should point out that the Public Petitions Committee's duty is to consider the general case that your situation highlights. Margaret Jamieson, do you want to make a couple of brief comments?
I will try to be brief. I am here supporting the petitioners because this is the second time since my election in 1999 that I have been involved in a case concerning Historic Scotland's funding for places of worship. I have found the system that is operated by Historic Scotland to be archaic and lacking in openness and transparency. In my view, a lot of hoodwinking goes on.Mr McWilliam is quite correct to say that the general impression at phase 1 was that the funding would be at 60 per cent but that that percentage was reduced at each later phase. I have been unable to obtain any information that would assist Riccarton parish church to get any other funding because, if more external funding is obtained, Historic Scotland will reduce the amount of money that it contributes. The point that needs to be understood is that Historic Scotland determines what work will be undertaken and by whom. Historic Scotland seems to be in charge but it uses somebody else's funding stream.I have a problem with the way in which Historic Scotland has treated churches in particular. Riccarton parish church has used up money that it had set aside from its church hall to make the church compliant with the Disability Discrimination Act 1995. The church will find itself unable to be DDA compliant because of the actions of Historic Scotland.
Thank you. Do members have any questions?
Hello, Mr McWilliam. I want to ask a couple of questions to get the situation clear in my own mind. We are talking about a tax offset that allows Historic Scotland to reduce its support. Does Historic Scotland work out the grant, or whatever it is that it eventually gives, by looking at the total cost, including the VAT and all other costs, and then giving a percentage of that? Is that why you say that Historic Scotland takes the benefit from the tax offset?
Yes. Historic Scotland gives us a percentage of the total estimated cost.
So, if VAT went up, Historic Scotland would still give the same percentage of the total cost.My other question is about the six phases. Is each phase a stand-alone job? For example, do phases 4 and 5 have to be done after phases 1, 2 and 3?
Phases 2 and 3 were put together because it was felt that if work was done at a later phase on the steeple, damage might be done to the roof. We expect that each of the other phases will be taken as a separate entity.
That is fine. So, although the work was defined as separate phases, the impression was certainly given that the same grant level would apply throughout.
Yes. I have several letters to indicate that, including a letter from Historic Scotland in which the only figure that is mentioned is 60 per cent. Until this time, Historic Scotland has never mentioned any figure other than 60 per cent in any of the correspondence. Before we decided to go ahead with the work, we were told in a letter from our architect:"The offer of grant, if made, will set a precedent for the percentage offered for future phases of the work. With each phase of the work, the church will be asked to submit documentary evidence of the church's financial position, including accounts, and the percentage offered by Historic Scotland will only be varied if the church's financial position is seen to have improved disproportionately."
Is Historic Scotland basically now saying that the church is so well off that the grant will be cut?
That argument has never been used.
Historic Scotland regularly receives details of our financial position whenever they are requested. It is fully aware of our church's financial position. The annual income from our congregation is enough to cover the normal running of a church with very little left over. The fact is that, by a combination of means, we have already raised in phases 1 and 1A more than 10 per cent of the total because we had no other option. Therefore, we should not be asked for any more. If all the work had been done in one phase instead of six, we would already have raised more than the 10 per cent. Just because the work has been split up into six phases, we do not see why that means that the more than 10 per cent of £1.2 million that we have already raised should not be counted.
I am trying to get at Historic Scotland's reasoning. Margaret Jamieson is right to say that Historic Scotland is not transparent or open. It is difficult to get information from and people have to try to work through the machinations of what it does.
That is not really a question. Sandra White has a question.
It is a particular interest of mine.
I understand that, but I am trying to give everyone the opportunity to ask questions.
The petition calls on the Scottish Parliament to investigate whether the grant practices of Historic Scotland are fair and reasonable, as well as whether its use of the listed places of worship grant scheme is proper. In your submission, you said that you wanted the 60 per cent grant reinstated for your church. If the committee wrote to Historic Scotland or the Executive, we would be writing for all places of worship and not just for your particular case.
Yes.
This is the first time that I have heard about the issue of listed places of worship funding although, like Margaret Jamieson and others, I have spoken to Historic Scotland and tried to get information about other areas. Is there a list of other churches that have been through this particular process?
The other church that I have been involved with is St Sophia's in Galston. Again, it needed work done in a number of phases and it had difficulty in having that work started because of the state of the building. The parishioners have been out of the church for three years. Recently, I went to look at the work that is going on just now and learned that it is anticipated that the parishioners will be back in the church by Christmas. Again, the work carried on over several phases and at each phase, the church was required to make that financial commitment. That was not explained at day one.Forgive me if I revert to calling it "Hysteric Scotland", but I would like it just to explain exactly what the funding mechanisms are to be and to say, if there are six phases, or 10, or two, that a certain percentage will have to be paid at each phase. I have spoken to Mr McWilliam and others from the church who said that if they had known that, they would not have made the commitment and would have decided to close the church.
Mr McWilliam, it seems to be unfair that the congregation has to make a commitment to pay its share of the renovation but, it appears, Historic Scotland does not. I find that bizarre.You said that you have five letters that, in your view, expressed a commitment from Historic Scotland. Do those letters constitute a contract? Have you given those letters to your solicitors to see whether they form an undertaking that you could use to tell Historic Scotland that it must pay the 60 per cent grant?
The letters do not constitute a contract and Historic Scotland would be able to say that. I refer you to one of the letters. We wrote to our architects, who have experience of dealing with Historic Scotland, to ask for their view on the commitment of Historic Scotland. The reply that we received was as follows:"Further to receipt of your letter dated 16 November … we would only comment that Historic Scotland ‘allowed' the congregation and the design team to assume that the original grant level would carry forward into later phases, as all the figures quoted in letter form and discussion throughout the application process referred to a grant level of 60%."
In that case, would it not be wise to run it past your solicitors?
That would cost money.
As someone who has dealt with such matters, I have a point of information. The correct term is not a contract—it is an offer of grant, which is based on the condition of acceptance.
After Carolyn Leckie has asked her question, I am keen that we get a chance to discuss what to do with the petition.
Will you clarify when you understood that the grant level would not be 60 per cent and how that was communicated and explained? Do you have anything in writing to that effect?
Yes. The work on phases 2 and 3, which have now been completed, started in March 2002. The work started two weeks before we received the letter stating that the grant was being reduced from 60 per cent to 45 per cent. I have correspondence that shows the reason for that. Our architects requested that the work begin, because everything was in place—the contractor had been selected and all the finances seemed to be in place—and they were getting very worried about the steeple. Therefore, they asked whether the work could start before the grant had received formal approval from Historic Scotland. HS wrote back to the architects and said that the work could start, although it reminded them that it had no responsibility for work that started before the grant had been approved if, for example, it decided that there would be no grant. In other words, we would have been responsible for the amount of money that was spent in the two weeks prior to the decision on the grant. However, I am sure that our experienced architects were fully aware that the process was in place and the grant would come through. We had the six-phase agreement. The architects took their action in good faith; they assumed that within two weeks we would be informed that we would receive 60 per cent.After two weeks, we received the letter that said that the level of grant would be 45 per cent. When we asked why we had not been told about that in advance, we were told that the architects had asked for permission to start the work. We probably would not have gone ahead with phases 2 and 3 if we had known about the reduction in the grant, but by that point, as two weeks' work had been done and quite a lot of money had already been spent, we felt that we had no option other than to tell the general trustees of the Church of Scotland to approve and accept the 45 per cent grant.
I was coming to that. You said earlier that Historic Scotland seemed to be able to make decisions about work that is to be carried out and to give people the idea that money will be available. Do you suspect that its intention is to obtain commitments from the other funding bodies, to get that funding in place and to get the work started, so that situations in which decisions to close a church, for example, which might be made if people were fully informed, do not arise? Is that your suspicion?
I ask you to be careful about asking for Mr McWilliam's impressions of whether someone did something right or wrong, as it might be difficult to establish the motivation.
The term "hoodwinking" was mentioned.
I used that term.
I do not want anything to come back on anyone if they start making accusations.
I am just trying to understand—
I understand, but I am asking you not to put Mr McWilliam in a situation in which he says something that could be difficult to substantiate in the longer term. I am just trying to be careful.
A difficulty is that the people who are in charge of the funding at Historic Scotland are not up front early enough in the process and do not indicate to people what level of funding they are talking about. The congregation at Riccarton was under the impression that 60 per cent funding would be available for the whole contract. It found out that 60 per cent had become 45 per cent only when it signed on the dotted line and even that level of funding is not guaranteed for future work.Our point is that it would be helpful for Historic Scotland to be open and transparent at day one, by letting people know that whatever level of funding is available for the first phase of a project will not necessarily be available for its duration. If that had been made clear, a different position would have been adopted at Riccarton.
I would like us to have a discussion about what we do with the petition. Do members have suggestions?
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In a slightly different guise, I have come across Historic Scotland before and have been aware of the difficulties expressed about its grant-awarding practices, so I am conscious that what the petitioner is calling for relates to more than just its use of grant funding for listed places of worship. Therefore I suggest that the committee write to the Executive seeking an explanation of the grant-awarding practice. We should ask specifically whether in the review of Historic Scotland's structure and functions that was announced in February particular consideration could be given to grant-awarding practices, because they have caused people difficulties.
That would form the basis of a good question to ask about Historic Scotland. If no members have other suggestions for questions to ask, we will write to the Executive as Jackie Baillie suggested and await the response. I thank the petitioners for coming along this morning.I am going to seek the committee's advice, because a number of MSPs are here for a specific petition. I wonder whether we should move forward consideration of that petition or whether we should stick with the agenda as it stands.
For which petition is everybody here? I am desperate to know.
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Petition PE647 on Falkirk Football Club—as if you did not know.
I am not saying that one petition is more important than another, but spaces in the public gallery are being taken up by MSPs and I am a bit concerned that the gallery is becoming overcrowded with them.
Just send them away.
I would like to make that suggestion as well. If members are happy to stick to the agenda, we will do so.
I am easy.
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In fairness we should stick to the agenda. I am sure that the MSPs will not mind and the other petitioners who have been waiting patiently should have their say.
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