Stone dead; After fighting bitterly for 13 years, French firm Lafarge

Norman Macleod didn't hear the little piece of history that had just been announced in the Harris Hotel in Tarbert because he was, in his own words, "very old and very deaf". But when the chairwoman explained it to him, his reaction was memorable. The retired policeman slowly put his huge hands together and started clapping. Like all the other islanders in the room, he was overcome with relief. A long, painful saga was at last at an end.

The French multinational giant, Lafarge, came to the island of Harris on Friday to tell the people that it was abandoning its fiercely disputed plan for a superquarry. "It's all over, completely," said one of the company's vice-presidents, Philippe Hardouin. "For us Harris is no longer a subject, now or in the future."

It was, by any standards, an extraordinary occasion. Three senior executives from one of the world's biggest corporations flew in from Paris by private jet to announce that they weren't planning any business. In fluent English they talked about respect - for the local community, for the environment and for people - and in a few minutes ended 13 years of blight and conflict. Against the background clatter of hotel dishes being washed, they were warmly thanked by both those who had opposed and those who had supported the superquarry.

"I felt quite choked up," said Patricia Martin afterwards, a quarry opponent who runs another local hotel. "I felt a huge sense of relief, and a slight sense of disbelief."

Lafarge's decision to withdraw from Harris brings to a close one of Scotland's most prolonged environmental battles. It also rewrites the ground rules for global environmental politics, and gives real meaning to the much-abused mantra of corporate social responsibility.

The inside story of how the company came to make its decision is as remarkable as the event itself. Warring business executives, environmental organisations and islanders all played a crucial role, politely prodded by a spiritually-minded deep-green campaigner and TV game-show winner.

The application for planning permission to dig Britain's biggest quarry near Lingerbay in southernmost Harris was first made by a UK firm, Redland Aggregates, in 1991. The idea was to carve out the side of the mountain of Roineabhal to extract up to 600 million tonnes of rock over 60 years for building roads and railways across Europe.

At first many islanders thought it was a good idea that would bring jobs and wealth to a remote rural community, and it was approved by Western Isles Council. But as details of the (pounds) 70 million plan emerged during a 100-day public inquiry in 1994 and 1995, most changed their minds. A 62% majority in favour of the superquarry turned into a 68% majority against it, and the council abandoned its support for the scheme. More than anything, it was the gigantic scale of Redland's plans that worried people.

At the end of its life, the quarry would leave a crater one kilometre wide and two kilometres long, stretching 180 metres below sea level. The scar on the landscape in a designated National Scenic Area would be six times the height of the White Cliffs of Dover.

In 1997, after its share price plummeted, Redland became the victim of a hostile takeover by Lafarge. But the Harris superquarry saga rumbled on, dragging the company, the Scottish Executive, ministers and the court of session into a series of increasingly byzantine confrontations.

Throughout, though, there was never any sign of wavering by Lafarge. By legally challenging the Executive's decision to refuse planning permission, then resurrecting and going to court over a separate quarrying consent from 1965, the company looked like a dog that was determined to hang on to its bone.

Even as recently as January, after the Sunday Herald discovered that three Lafarge executives from Paris had paid a secret fact- finding mission to Harris, the company's Scottish spokesman adamantly denied that they were having any second thoughts. But, as events have now demonstrated, they obviously were.

Lafarge inherited the superquarry proposal from Redland, and was reluctant to interfere in the operation of its newly established UK business unit. But other circumstances conspired to ensure that the parent company could not ignore the issue. In 2000, Lafarge signed a (pounds) 3.5m, five-year partnership deal with the global environmental network WWF International, in Switzerland. But as the superquarry had been vigorously opposed by WWF in the UK, it soon became a thorn in the flesh of the partnership.

Last year, the Sunday Herald revealed that WWF UK had rejected its share of Lafarge's millions because of the company's refusal to cancel the superquarry. The money was sent back by WWF UK's chief executive, Robert Napier, whose previous job had been as chief executive of Redland.

"WWF was very pushy. They constantly reiterated their views on Harris," Hardouin told the Sunday Herald. "It was becoming important to discuss every time we met."

Meanwhile, WWF was also feeling the pressure from other environmental groups, who accused it of selling the credibility of its world-famous panda logo to an environmentally irresponsible company. The panda is proudly on display in the foyer of Lafarge's Paris headquarters.

Friends of the Earth launched an international campaign demanding that WWF pull out of the partnership with Lafarge. Although this soured relations between the two groups, the combination of one agitating on the inside while the other agitated on the outside has proved a winner.

"We believe this decision vindicates our tactic of sticking with Lafarge, and arguing from the inside," said director of WWF Scotland, Simon Pepper. "We have great respect for the somewhat purist approach of Friends of the Earth, but we believe pragmatists are also needed.

"We can't be really effective without money. Business and industry have to be seen as the solution as well as the problem. And they won't change without close engagement with organisations like ours."

Duncan McLaren, the chief executive of Friends of the Earth Scotland, agreed that inside pressure from WWF and others had been invaluable. "But without strong campaigns by Friends of the Earth and the community, the opportunity to change Lafarge's mind would not have arisen," he argued. "Engagement with companies alone will always carry a risk that companies will abuse the relationship to 'greenwash' their image."

Along with the pragmatists and the purists, Lafarge also needed a catalyst. This came in the unusual form of a passionate, ginger- bearded quaker with a knack, as he puts it, of being in the right place at the right time. Alastair McIntosh is best known for winning (pounds) 50,000 last year in a Channel 4 reality TV game show about personal morality called Without Prejudice. But he also has a strong track record as an environmental campaigner, writer and academic, and is a fellow of the Centre for Human Ecology in Edinburgh.

Brought up in Lewis, he has fought for years against the superquarry, and over the last six months has played a vital behind- the-scenes role in turning Lafarge round. He was contacted by a French banker who had read his book, Soil And Soul: People Versus Corporate Power. The banker knew someone who knew senior people in Lafarge, so McIntosh was able to fix up a meeting to discuss the superquarry.

Last October, he delivered a short presentation on his laptop to company executives in Paris, showing the environmental damage that would be done by the superquarry. He then arranged for three company vice-presidents - Philippe Hardouin, Michel Picard and Gaelle Monteiller - to visit Harris and talk to local residents in January.

Impressed by what they heard and saw, the trio returned to Paris and convinced the company that it had to withdraw. They then returned to the island on Friday, as they had promised they would, to unveil their decision.

Although it was carefully presented as a joint agreement with the UK arm of Lafarge, it was clear that the French parent company had told its British subsidiary what to do. While the French executives talked cheerily of fulfilling their corporate principles in Harris, the two British managers present warned gloomily of the need to find other ways of meeting future demand for aggregates.

"This is a triumph for both Scotland and the corporate ethics of Lafarge," declared McIntosh. "Here is a French company that acquired Redland as its English subsidiary. It has taken a far-sighted decision in agreeing not to violate a Scottish National Scenic Area in a way that could not have been justified were it in France."

Lafarge's decision was not, of course, entirely altruistic. The economic case for the superquarry was much weaker than it used to be, since annual demand for aggregates in the UK dropped from around 400 million tonnes in the mid-1980s to 270 million tonnes today.

But the company insisted that its code of social and environmental ethics was also key. "We have to create value for shareholders, but we want to do it by respecting some values. The combination of both dictates our decisions," said Hardouin. "We recognise that if we are acting in the best-possible way from an environmental standpoint, we will get a competitive advantage."

Whatever the reasons for Lafarge's dramatic U-turn, in South Harris this week the wild red mountain of Roineabhal will rise to the sky and catch the eye as it has always done. And the wind will heave a sigh of relief for a landscape that remains immutable.

But back in the business world, something has changed. Multinational companies no longer look quite as invulnerable as they did last week, and the balance of power between people, the environment and corporations has shifted - for once in the right direction.

TIMELINE 1965 Planning permission granted for a small quarry at Lingerbay in south Harris.

1988 Redland Aggregates starts preparing an application to dig a huge superquarry at Lingerbay to extract anorthosite.

March 1991 The company applies to Western Isles Council for planning permission for the (pounds) 70 million superquarry.

June 1993 In a referendum, 62% of Harris residents support the superquarry; Western Isles Council grants it planning permission.

October 1994 A public inquiry into the superquarry opens in Stornoway on Lewis.

May 1995 In a second referendum, 68% of Harris residents oppose the superquarry.

June 1995 As the public inquiry closes, Western Isles Council abandons its support and joins the objectors. The inquiry was the longest in Scottish planning history.

December 1997 French multinational Lafarge takes over Redland Aggregates.

March 2000 The public inquiry's report finally lands on new Scottish environment minister Sarah Boyack's desk.

September 2000 Lafarge launches a legal action against the Scottish Executive, alleging that the delay in coming to a decision breaches the company's rights. It is revealed in court that the public inquiry recommended giving planning permission.

October 2000 The court of session rules that the delay is of "scandalous proportions" and orders the Executive to make a decision within 21 days. Boyack is replaced as environment minister by Sam Galbraith.

November 2000 Galbraith refuses planning permission arguing that the inquiry "seriously underestimated" the impact it would have on scenery.

December 2000 Lafarge lodges an appeal at the court of session.

May 2001 Lafarge claims the planning consent issued in 1965 is still valid.

November 2001 A five-day public inquiry into the validity of the 1965 consent takes place on Harris.

May 2002 The Executive Inquiry Reporters Unit rules that, although the 1965 consent is still valid, it is only for five hectares, not the 600 hectares sought by Lafarge.

August 2002 Lafarge appeals to the court of session against the Executive ruling.

November 2003 The court of session hears Lafarge's appeal on the 1965 consent.

January 2004 Lafarge's appeal on the 1965 consent is rejected.

April 2004 At a meeting in Harris, Lafarge announces it is abandoning the superquarry.

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