Sutherland councillor in mix-up over Carbisdale Castle shareholdings
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A Highland councillor who is currently subject to an ongoing investigation by the Ethical Standards Commissioner has incorrectly declared a private investment on his Registers of Interest.
Cllr Baird, who represents the North, West and Sutherland ward on the council, was reported to the Ethical Standards Commissioner over concerns that he had not declared an investment in a firm set up by Samantha Kane, the high-profile owner of Carbisdale Castle.
Kane, who styles herself Lady Carbisdale, bought the iconic castle in 2022 for £1 million.
She pledged investment in the castle, and aims to establish the castle as an exclusive members club.
To support the club and her wider ambitions for the property, Kane has registered two firms. One is called Carbisdale Castle Ltd, and the other is a social enterprise called the Lady Carbisdale Community Interest Company (CIC).
According to Cllr Baird’s entry on the Highland Council website he holds “shares and securities” in the Lady Carbisdale Community Interest Company. However, Ms Kane confirmed that he has in fact invested in the for-profit Carbisdale Castle Ltd company.
Kane estimates that Carbisdale Castle Ltd will generate a profit after five years, and she intends to donate some of this profit to the Lady Carbisdale Community Interest Company.
She did not confirm whether shareholders of the Carbisdale Castle Ltd company could also expect a dividend payment if the firm turned a profit.
Asked to provide more information about his investment, Cllr Baird said he believed he was investing into the social enterprise, although he provided the registration number for the for-profit firm, when asked to confirm which company he had paid into.
“The CIC takes membership fees for the members club – and when you join you get a share in the company. If the members club is successful, I expect to receive a 7% return in year five, when the club is projected to be profitable,” he said.
“I updated my registers of interest after taking advice from the legal services department at Highland Council.”
Ardgay resident Kerry Hawthorne first submitted a complaint in December to Highland Council after it was alleged locally that Cllr Baird had an undeclared financial interest in the redevelopment of Carbisdale Castle.
Hawthorne was then advised by council officials to submit a further complaint to the Ethical Standards Commissioner. The Commissioner’s investigation is ongoing.
But Cllr Baird did update his registers of interest following Hawthorne’s initial complaint to the council.
On January 23, Cllr Baird sat as a member of the Sutherland County Committee. The meeting considered a £75,000 grant application submitted by the Lady Carbisdale Community Interest Company. Although the committee deferred a decision on whether to fund the application, records from the meeting do not show that Cllr Baird declared his investment in a membership at the castle.
Hawthorne said she submitted the complaints because Cllr Baird had refused to confirm or deny publicly whether he had a financial interest in the businesses at Carbisdale Castle.
“I said to his face, that if he would not declare his interest we would do it for him. On that basis I have submitted formal complaints and requested an investigation.”
After learning of the errors in Cllr Baird’s register of interest, Hawthorne said: “I think the confusion over the investment is interesting and I do wonder if Cllr Baird has fully understood the financial position and the differences between the two bodies.
“However, regardless of which of the two linked companies he holds shares and securities in, he should under the councillors’ code of conduct have declared his interest.”
Ms Kane confirmed that membership fees paid to the castle members club are received by Carbisdale Castle Ltd, not the Lady Carbisdale Community Interest Company.
“We have a limited company and a CIC. Membership relates to the limited company, with each member entitled to purchase a share,” she said.
“We envisage a profit from the limited company in Year 5, and we envisage a percentage of the profit going into the CIC.
“We are planning to give the CIC a permanent office at the castle, so it can take on some activities from the castle, particularly in the field of education and tours around the historic building and its grounds.
“I also envisage building a small hub for my legacy, and various legacy programmes, to put in place after my demise, where the castle will turn into a museum in my memory.”
