NTS to be told: sell treasures or go bust

Published on Saturday 7 August 2010 14:31

THE National Trust for Scotland is in line for a major review of its heritage treasures to identify which properties can be sold off to turn round its troubled finances.

• George Reid's report will recommend that the upkeep of ruins such as Strome Castle be transferred to Historic Scotland

A radical re-organisation of the conservation charity - including a management overhaul - will be outlined when the nine-month strategic review, led by former Holyrood presiding officer George Reid, into the NTS's future is published this week.

Scotland on Sunday understands Reid's report will express astonishment the NTS did not hold a single inventory of all its assets and that it did not appear to know how much it costs to maintain its estate, which includes treasures such as St Kilda, Culzean Castle and Glencoe.

A full property portfolio review of the NTS will be launched to find out the cost of maintenance and look at its future management structure.

Reid's report will point out that only 12 of NTS's 130 properties are fully endowed and therefore the estate exerts a constant pressure on the charity's cash flow.

The NTS governance structure, which was described by one Scottish minister as "Byzantine" will also be re-organised with the number of NTS trustees being cut from 87 to 15. Reid, who has previously warned that the trust was "over-governed and under-managed," is expected to say that decisions on whether or not to sell specific parts of the NTS estate ought to be delayed until after the portfolio review is complete - unless the properties are of no heritage significance. The strategic review will also call for new, more cost effective methods of managing properties to be introduced as the charity attempts to come to terms with a struggling balance sheet that has led to sites being mothballed and job losses.

For example, Reid will suggest that management of ruins such as Strome Castle in the North-west Highlands and Balmerino Abbey in Fife ought to be transferred to Historic Scotland. In that way, the properties could remain within NTS ownership but benefit from the government agency's expertise in dealing with dilapidated properties.

His review will look at involving government bodies, including the Forestry Commission, National Parks and Scottish Natural Heritage, in the management of some properties. It is also hoped to spread the burden by striking more partnerships with local volunteers and businesses. Such an approach is being explored on Arran, where NTS is in discussion with local businesses thinking of investing in Brodick Castle.

Reid's review is expected to criticise the approach of previous years, which led to the financial problems that the NTS now finds itself in.Reid, who has been helped by a steering group led by the NTS president, the Duke of Buccleuch, will say that the way it has been run is unsustainable, pointing out that its books had been balanced by dipping into legacies, selling assets and delaying work.

The much criticised management structure that developed at the NTS over the years should be tackled, the report will say. Reid will also confess that he struggled to understand why the NTS had not tackled its financial problems earlier, blaming the unwieldy nature of its governance structure for its inaction.

But he will acknowledge recent redundancies, legacies and cutting back of maintenance work had improved the financial situation. But more radical action had to be taken. Current chief executive Kate Mavor only took up post in March last year.

Reid will recommend the number of NTS Trustees is cut from 87 to 15 and call for a new board to be elected by next April to drive reform. The board will be led by Sir Kenneth Calman, former chairman of the Calman Commission which recommended transferring more power to the Scottish Parliament.

Reid's report will suggest a five-year strategic plan is put in place outlining specific objectives and project deadlines.

Reid was commissioned to write his report by the trust last November, after a 13 million black hole in finances led to the loss of 45 jobs and the mothballing of four sites.

A grassroots revolt forced the trust to scale back plans to close 11 sites and shed 91 jobs. Members were also furious it decided to sell off its Charlotte Square base without consultation. Some 10,000 people took part in Reid's review, with 32 meetings across Scotland.