Mr Wilson's announcement of the new scheme followed remarks by David Stewart, Labour MP for Inverness East, Nairn & Lochaber, about the future of the Knoydart estate in the Scottish Highlands.

"I believe the community can control their own future by buying the estate," Mr Wilson told the Commons during the short debate.

"I make a plea for the owner to sell, I make a plea for the Bank of Scotland the creditor to sell and I make a plea to the government to support the community in any and every way they can," he said.

Mr Wilson agreed that the Knoydart estate was a "long-running sore" that had "come to represent the unacceptable face of Highland ownership".

He confirmed the need for the issue to be resolved to ensure that "local interests are neither overlooked or overwritten".

The new Land Purchase Fund could well be used should the Knoydart community make a bid to purchase the estate. However, the Scottish Office Minister made it clear the details of the scheme were still under discussion.

But, Mr Wilson was keen to emphasis that "there are no blank cheques" and exorbitant price demands by current land owners would not be tolerated.