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The Scottish Executive: Draft Budget 2004-05 Summary

Chapter 10 Environment and Rural Development

To help the people in Scotland to secure a life of quality and prosperity through sensitive stewardship and sustainable development of the natural resources of Scotland; in particular by securing a clean, healthy and safe environment and effective water industry and improving people's enjoyment of the environment.

OBJECTIVES AND TARGETS

Objective 1: A modern, effective and publicly-owned water and sewerage industry, unlocking efficiency gains for its owner and delivering the outputs agreed in the Quality and Standards process, within the agreed revenue cap at a fair price for all customers.

• Target 1: Improve public water supplies by increasing the compliance rate to at least 985 as measured by the Water Quality 1000 index by 2006.
• Target 2: Reduce the number of sewage treatment works not in compliance with consents to less than 45 by 2006.

Objective 2: Conserve and enhance the natural heritage of Scotland and promote enjoyment of it.

• Target 3: Improved public enjoyment and protection of the countryside, measured by increases in numbers of walkers visiting.

Objective 3: Ensure progress towards sustainable management of Scotland's waste and achievement of EU landfill reduction targets by 2010, 2013 and 2020.

• Target 4: Increase the amount of waste collected by local authorities which is recycled or composted from 6% to 25% by 2006.
• Target 5: Reduce landfilling of biodegradable waste collected by local authorities from 1.8 to 1.5 million tonnes by 2006.

Objective 4: A clean and safe environment, tackling climate change and complying with domestic, EU and international standards.

• Target 6: Through the introduction of flood prevention measures, 1,850 properties to have their risk of flooding reduced to below 1% by 2006.
• Target 7: Scottish Environment Protection Agency (SEPA) to deliver a comprehensive assessment of the state of Scotland's water environment by 2004 (as required by the Water Environment and Water Services Bill) and extend its water quality monitoring network by 15% by 2006.

Objective 5: An improved environment for our urban communities.

• Target 8: SEPA to complete the implementation of its on-line emissions inventory by the end of 2005.

Objective 6: Reduce the opportunity gap by promoting economic development, social justice, better service delivery and sustainable development in rural communities in Scotland.

• Target 9: Encourage more sustainable agricultural activity on 13,500 farm businesses in Scotland's remote hills by 2006.
• Target 10: Deliver better service provision to rural communities through support for around 80 new rural development projects each year and funding for three or four joint initiatives a year with other Executive Departments or Agencies, by 2006.
• Target 11: Monitor delivery of the Partnership Agreement commitments with a rural dimension and report on progress, annually, from March 2004.

Objective 7: Support a high quality Scottish agricultural and biological science base which delivers innovative research, relevant to the needs of agriculture, the environment and human health.

• Target 12: Secure a satisfactory outcome from the next 4-yearly external assessment of our research organisations in 2007, against the objectives set out in our new Research Strategy.

Objective 8: Seek to ensure that Scottish priorities are reflected in the outcome of international negotiations on the management of marine fisheries.

• Target 13: Negotiate stock recovery plans that are implementable, enforceable and result in stocks that can support sustainable fisheries, with manageable socio-economic impacts on the fishing industry and communities.

Objective 9: Maintain progress on the implementation of the Forward Strategy for Scottish Agriculture making full use of the flexibilities now available under the CAP Reform Settlement.

• Target 14: Make effective use of the newly-enhanced flexibilities under the CAP to make Scottish agriculture more competitive and sustainable.
• Target 15: Produce, by summer 2004, a working model of Land Management Contracts within the flexibilities now available under CAP Reform.

Objective 10: Increase the economic, environmental and social benefits of Scotland's woods and forests through implementation of the Scottish Forestry Strategy.

• Target 16: To support the development of new products, markets and infrastructure to enable the full potential of Scotland's growing timber resource to be realised.
• Target 17: To develop the contribution of woods and forests to healthy living, environmental enhancement, the social and economic well-being of local communities, and to continue encouraging greater use of native species.

Spending plans 2003-06

Table 10.01 Spending (level 2)

What the budget does

Both SEERAD and the Forestry Commission are charged with implementation of Environment and Rural Development policies. SEERAD has responsibility for monitoring the activities and performance of, and setting the spending limits for, Scottish Water, Scottish Natural Heritage (SNH) and the Scottish Environment Protection Agency (SEPA). These bodies deliver water and sewerage services, conserve and improve Scotland's natural heritage and protect and improve Scotland's environment. The Department has an important wider role in promoting rural issues but the delivery of our rural commitment is dependent on spending from across the Executive's Departments, and is not restricted to the Environment and Rural Development Budget set out here. Rural Development portfolio spending by SEERAD is mainly in support of the farming and fishing sectors. The Department also provides significant continuing support for the contribution made by the Scottish Agricultural and Biological Research Institutes, Scottish Agricultural College and Royal Botanic Garden, Edinburgh to the UK science base in agricultural, biological and related sciences. Spending by the Forestry Commission promotes sustainable forestry, mainly through grant aid and partnership working, and management of publicly-owned forests.

Portfolio priorities

In 2004-05 we will focus our resources on:

• further improvements in the quality and standard of water supplies and sewerage treatment;
• increasing the amount of waste collected by local authorities which is recycled or composted;
• maintaining support for livestock farmers in Scotland's remote hills;
• increasing the budget for the Scottish Rural Partnership Fund to support innovative projects which will provide better facilities and services in rural communities;
• improving the quality and range of business and other advice available to Scotland's farmers;
• supporting and encouraging innovative research in Scotland's Agricultural and Biological Research Institutes;
• investing in the reduction of the level of pollution from farms which ends up in our rivers;
• maintaining support for the seafishing and aquaculture industries from European and domestic grant schemes; and
• implementing the Scottish Forestry Strategy, with particular emphasis on recreational and tourist-related facilities.

New resources

As a result of the announcement by the Chancellor of the Exchequer in his November 2002 pre-Budget report, approximately 100 million a year has been transferred from the Landfill Tax Credit (LFTC) Scheme to a public spending scheme. Scotland receives a Barnett share as consequentials of this allocation, amounting to additional resources of 8.6/9.4/9.4 million in the three years beginning 2003-04. These funds will be used to assist with implementation of the National Waste Plan, including interim support to community groups and others with commitment to funding from the previous LFTC Scheme.

Closing the opportunity gap

Economic development, social inclusion, the provision of key services and sustainable development are important across all Scotland. All Scottish Executive policies in these areas, and the methods of implementing them, must recognise and take full account of rural circumstances. We will maintain the rural dimension in policy formulation and implementation. Through the Scottish Rural Partnership Fund we will directly assist small scale projects in rural areas that would otherwise face funding difficulties. The fund will also be used to promote partnership working between service deliverers and innovative ways of delivering services to rural communities.

We will contribute to the long-term sustainable growth rate in the Scottish economy by:

• maximising the value of the wood resource in Scotland, in a variety of ways, from increasing competitiveness, to improving the timber transport infrastructure; from exploring the potential for wood as fuel helping to meet the need for a greater proportion of renewable energy to promoting greater use of wood, the versatile and environmentally friendly material for construction; and
• working with Scottish Enterprise and partners, through the Scottish Forest Industries Cluster Group, to develop new products and markets and new investment to take advantage of the opportunities offered by the increasing timber production from Scotland's forests.

By creating a diverse forest resource of high quality we will:

• create opportunities for employment;
• make a significant contribution to tourism;
• contribute to the local economy; and
• help to make communities sustainable in fragile rural areas.

By working with partners on urban forestry programmes, we will work with local communities and promote and encourage the role of woodlands in and around our towns to benefit these communities. These programmes will:

• regenerate derelict land;
• spread benefits to a wider cross section of people, by providing woods and forests on the doorstep;
• provide recreation opportunities and consequent health benefits for communities in and around towns; and
• assist regeneration of the surrounding area by attracting housing and commercial development to an enhanced environment in and around our towns.

Sustainable development

The Partnership Agreement re-emphasises that the Executive wants a Scotland that delivers sustainable development; that puts environmental concerns at the heart of public policy. The commitment is demonstrated throughout the Partnership Agreement. In April 2002, the Executive published "Meeting the Needs...Priorities, Actions and Targets for Sustainable Development in Scotland", which sets out its vision for sustainable development in Scotland. The Executive has identified resource use, energy and travel as the main priority areas for action on sustainable development, and policy makers across the Executive are encouraged to take these priority areas into account when policy decisions are made. "Meeting the Needs..." sets out a range of actions being taken to address these priority areas. It also lists a set of indicators and targets to help us to monitor our progress.

Through the Cabinet Sub-committee on Sustainable Scotland we will continue to pursue sustainable development across all portfolios in the Executive.

Making our waste management system more sustainable is a key Executive commitment. Landfilling more than 90% of our waste is a waste of resources and has environmental impacts. Implementing the National Waste Plan will lead to kerbside recycling systems for more than 90% of households, by 2020, with recycling of 55% of municipal waste, and only 30% deposited in landfill.

The over-arching principle for the Scottish Forestry Strategy is sustainability. Scottish forestry must contribute positively to sustainable development, and meet internationally recognised standards of sustainable forest management.

We will raise the long-term sustainable growth rate of the Scottish economy by working with Scottish Enterprise and the Forest Industries Cluster group to develop new products and markets to take advantage of the business opportunities offered by the increasing timber production from Scotland's forests. We will continue to work with the tourism sector by promoting opportunities and providing the infrastructure for outdoor recreation and rural tourism.

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