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CHAPTER 2: THE SCOTTISH CONTEXT
Geography and demography
2.1 Although Scotland comprises one third of the UK's landmass it is home to less that one tenth of the UK's total population, and this population is not spread evenly, as the vast bulk is fairly densely concentrated in the central belt and parts of the North-East. The rest of Scotland is predominantly rural and sparsely populated. This contrasts with England, for example, where population density is on average much higher across the whole country and, therefore, more evenly spread.
2.2 For some time, Scotland's population has been declining and, while this tendency recently appeared to have temporarily halted, the downward trend is expected to persist (Scottish Executive, 2005: 4). Furthermore, the profile of the population is an increasingly ageing one, which has considerable implications for sustainable development, not least given Scotland's lower than average productivity within the UK. Meanwhile, the number of households in Scotland increased by 18% between 1981 and 2002 and continues to rise, with additional impacts for sustainable development in terms of the additional land and materials needed for housing and an increased demand for the goods and services which are required at household level.
2.3 Scotland's location raises obvious issues of peripherality within the EU and the UK. The impact of EU enlargement on Scotland's peripherality, which has arguably been exacerbated by recent enlargement shifting the centre of gravity further east, is noted in the National Planning Framework for Scotland (Scottish Executive 2004c: para 3). Additionally, Scotland also has to contend with substantial internal issues given the distances of the Highlands and Islands from the population concentrations of the central belt. Internal peripherality clearly has implications for transport, waste management, energy generation and transmission, economic development and enterprise, digital connectivity, housing, public service provision, and agriculture. There are, however, some important positive examples of such issues being addressed, for example, through the Highlands and Islands Telecom Initiative (Scottish Executive, 2004c: 10).
Natural heritage and environment
2.4 In general terms, Scotland enjoys high quality natural heritage. This is not simply intrinsically valuable but also has very significant economic implications for tourism and other activities such as food and drink production and indeed the attractiveness of the country for inward investment (Scottish Executive, 2000: 12). Much of the information in this section derives from Key Scottish Environment Statistics 2005 (Scottish Executive, 2005) and Indicators of Sustainable Development for Scotland: Progress Report 2005 (Scottish Executive 2005a).
Habitat and landscapes
2.5 Scotland contains extensive, remote and valuable habitats and landscapes. For example, the area of land designated for nature conservation purposes has expanded considerably since the early 1990s. Areas designated as Sites of Special Scientific Interest ( SSSIs) have increased from 804ha in 1991 to 1008ha in 2005 (Scottish Executive, 2005, 35). This amounts to 13% of the land area of Scotland. The amount of land used for agricultural purposes declined by 4% between 1982 and 2004, while set-aside land increased from 17900ha in 1990 to 71700 ha in 2004, a fall from 93600ha in 2003, but still of considerable benefit in the terms of wildlife (ibid).
2.6 Agri-environment schemes have helped to minimise the impact of agriculture on the environment (Scottish Executive 2005, 36). Of thirty-one key habitats, 16% are increasing and 29% stable, with 26% declining (Scottish Exec, 2005a, Indicator 10). The picture in relation to 173 priority species is perhaps not so positive, however, with 3% becoming extinct, 18% at various rates of decline, 5% fluctuating with no clear trend, 27% stable, only 2% increasing and no less than 46% being unknown (ibid).
Water quality
2.7 Generally, Scotland enjoys very high water quality, and the overall length of Scottish rivers that are categorised as either seriously polluted or poor has declined from 1169km in 1999 to 768 km in 2004 (Scottish Executive, 2005a, Indicator 9). Notably, the seriously polluted category has declined from 91km to 51km in the same period. Bathing water quality, which is particularly significant in the context of tourism, has also improved, increasing from 52% compliance with mandatory standards and 9% compliance with guideline standards in 1988 to 93% compliance with mandatory standards and 55% compliance with guideline standards in 2004.
2.8 The number of identified coastal bathing waters increased from 23 in the period 1988-1999 to 58 in 2000. Compliance with discharge consents has increased from 73% in 1996-97 to 86% in 2003 (Scottish Executive, 2005: 27). Diffuse pollution issues connected, for example, with agricultural run-off have been identified but are being addressed, for example, through the system of Nitrate Vulnerable Zones which now cover some 15% of the land area of Scotland and through the statutory Prevention of Environmental Pollution from Agricultural Activity Code of Practice ( SEPA, 2004).
Landfill and waste
2.9 Reliance on landfill is an environmental problem for Scotland, in terms of the amount of land devoted to landfill, the loss of potentially valuable materials and the consequent environmental problems of substances such as leachate and methane gas ( SEPA, 1999). These are being addressed through higher landfill engineering standards (Environmental Protection Act 1990 Pt II, Waste Management Licensing Regulations 1994 and the Landfill (Scotland) Regulations 2003) which implement the requirements of the EU Landfill Directive.
2.10 Landfill reliance has decreased overall from a peak of 15.8 mt in 1994 to 7.88mt in 2003, but this is largely due to the reduction in the amount of construction and demolition waste going to landfill ( SEPA, 2005). However, the amount of biodegradable municipal waste ( BMW), which is going to landfill, has remained fairly constant with minor fluctuations between 1991 and 2003 at around 1.8mt (Scottish Executive, 2005: 31). This is despite the fact that BMW is subject to major binding reduction targets under the EU Landfill Directive with an initial target of a reduction of 25% based on 1995 levels by 2006 (Directive 99/31 on landfill).
2.11 Indeed, although the levels of recycling of household waste more than doubled between 1999 and 2000 (5.1%) and in 2003-04 (12.9%) (Scottish Executive, 2005: 31), and although recycling and recovery infrastructure is clearly developing, these increases may, to date at least, merely be preventing an increase in the amount of BMW going to landfill rather than actually bringing about a reduction. Furthermore, recycling levels are still relatively low compared with other EU member states such as Denmark and Germany. The National Waste Strategy (1999) seeks to achieve the Landfill Directive BMW reduction targets using the voluntary principle.
2.12 There are doubts about whether this principle will enable achievement of the targets and mandatory targets have been advocated, supported by the judicious use of financial resources (Birley, 2001, paras 25, 39). Although the Local Government in Scotland Act 2003 requires local authorities to produce integrated waste management plans by February 2007 to indicate how they will meet the targets the Executive has so refrained from moving towards a mandatory regime (Scottish Executive, 2005a).
2.13 Reliance has been placed on the £335 m in the Strategic Waste Fund to assist local authorities in this regard (ibid). This has helped a number of local authorities to roll out doorstep-waste separation and collection schemes to boost recycling rates. However, more recently, a mandatory scheme has been established with the Landfill Allowances Scheme (Scotland) (Regulations 2005, SSI 2005/157), which will see tradable landfill allowances given to all local authorities to facilitate their achievement of Landfill Directive targets.
2.14 Some limited industrial pollution problems remain ( SEPA, 2004) although notably SO2 and NOx emissions have declined significantly as a result of international and EU commitments and domestic implementing legislation (Scottish Executive, 2005: 21). However, recent research by Fairburn et al (2005) has pointed to environmental justice issues in the context of industrial pollution in that such plants tend to be located in or near disadvantaged communities.
2.15 There are undoubtedly air quality problems in some urban areas brought about principally by emissions from road traffic. There are currently three Air Quality Management Areas designated in Scotland, an increase from one in 2000 (Scottish Executive, 2005a - Indicator 8).
2.16 Scotland also suffers from a range of "environmental incivilities", including notably fly-tipping, noise and graffiti, all of which are linked to the environmental justice agenda. It is more often than not disadvantaged communities who suffer, disproportionately, from such problems (First Minister, Environmental Justice Speech, 2002; SNIFFER 2005).
Natural resources and energy
2.17 Scotland benefits from very considerable natural resources, such as coal, oil, gas, fish, water and timber and has great potential as a major source of renewable energy. Oil is not considered here since its extraction is the subject of UK regulatory structures and the Executive has no direct control over oil as a resource.
Coal
2.18 Scotland remains a considerable source of coal despite the demise of the deep mining industry. Recent research indicates that while Scottish opencast production represented 31.5% of UK production in 1994 it represented no less than 54.3% in 2002 (Pollock, 2004). Although opencast production peaked at 8.0mt in 2001, 7.1mt was produced in 2002 and consented reserves have also increased marginally from 32.4mt in 2000 to 36.1mt in 2003 (ibid). The continued extraction of coal raises a range of sustainable development issues. First is the sustainable consumption of an exhaustible fossil fuel. Second, there are transport issues, given that most of the coal is destined for English power stations. Thirdly, there are considerable local environmental impacts caused by the mining (dust, noise, traffic), although this have to be seen against the lesser environmental damage from Scottish coal due its relatively lower sulphur content, which poses less of problem through acidification caused by acid rain. The Executive has recently enhanced planning guidance to protect communities from the negative effects of opencast mining (Scottish Executive, 2005b).
Fishing
2.19 Although there is obviously evidence of the over-exploitation of fish stocks, there is recent evidence of some improvement in the level, with 24% of such stocks within safe biological limits in 2003, significantly better than the 14% in 2000 and 2001 (Scottish Executive, 2005a: Indicator 11). Perhaps surprisingly, there is no target beyond an "ambition" that all major stocks within Scottish waters are within safe biological limits. However, outside coastal waters, the EU Common Fisheries Policy is applicable so the Executive has little direct role to play in the regulation of fish stocks, although it may clearly seek to influence EU policy.
Water
2.20 Water is obviously significant in Scotland, not simply for the production of renewable energy, but as a key resource for food and drink production and also for recreation. In those contexts, the quality of water is very significant.
Woodland
2.21 The area of woodland in Scotland has significantly expanded from 435,000ha in 1924, to 656,000ha in 1965, to 920,000 ha in 1980 and 1,330,000ha in 2005 (Scottish Executive, 2005: 37). Obviously not all this area is devoted to timber production and clearly the expanding area of woodland is very valuable in terms of habitat and the environment generally as well as providing opportunities for human recreation. Aside from environmental or economic consideration, the health benefits of being able to access outdoors areas, including forests, are being increasingly recognised.
Electricity
2.22 There has previously been estimated to be almost 100% over-capacity in generating capacity in Scotland, although it should be noted that a proportion of electricity is exported to England through the Interconnector and further electricity will be exported to Northern Ireland via a separate Interconnector. The relative contributions of nuclear and coal fired power stations are likely to decline within the next 20 years because of the decommissioning of end-of-life plant.
2.23 The Executive is free to set its own targets for electricity generated from renewable sources under the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc) (No 2) Order 2000, SI 2000/3253). It has set a target of 18% by 2010 and a mandatory target is set by the Renewables (Scotland) Obligation, which requires generators to supply 5.5% from renewable sources in 2005-6, rising year on year to 10.4% in 2010-11 and 15.4% by 2015-6. The obligation remains in force until 2027.
2.24 The percentage of electricity generated from renewable sources has varied considerably since 2000, largely due to variations in hydro-electricity production, which is dependent on precipitation levels in catchment areas. Thus, in 2000, 9.9% of electricity came from renewables, falling to 8.6% in 2001, rising again to 10.3% in 2002, but falling back to 10.3% and in 2003 to 7.7%. However, behind these figures is a steady increase between 2000 and 2003 in the amount of renewable energy produced from wind (predominantly), wave and solar power (0.4 to 0.9%) and other sources (0.2% to 0.8%), with more wind and hydro capacity to come on line.
2.25 Although there has been notable and considerable opposition to on-shore wind farm developments in Scotland, the Executive is currently engaging in a public debate to attempt to persuade the public of the benefits of wind energy. Nonetheless, it is clear that the benefits of certain renewable energy developments may be offset to some extent by localised environmental impacts and possible longer-term socio-economic impacts, through, for example, the effects on tourism if the landscape becomes less attractive and accessible because of the presence of large-scale developments.
Transport infrastructure
2.26 The transport infrastructure has received considerable attention from both commentators and the Executive itself. The state of Scotland's transport infrastructure has been identified as a weakness in the context of the country's economy (Scottish Executive, 2000: 12) and is plainly significant to the issue of peripherality. The Executive and the Scottish Office before it made significant commitments towards enhancing sustainable transport through improving public transport. This has not simply been a commitment to reduce car use but also to enhance the opportunities of those without cars to access education and jobs, so transport policy has contained a strong social justice element. Planning guidance has also encouraged travel minimisation, reduced car use and development well served by public transport.
2.27 Research has certainly indicated some progress although public transport enhancements have been delivered much more slowly than anticipated and there has been a considerable expansion of the road-building programme, and expansion of air travel and airports also very much on the agenda (Transform Scotland, 2003). Research by Transform Scotland (2003) characterised this as a "more of everything" agenda rather than a more sustainable approach to transport.
2.28 However, since that research was published there has been significant progress with rail projects in particular, although their delivery remains slow (Modern Railways, 2005), enhancements to park and ride (Croy and Ferrytoll, 2005), and bus services in some areas. Funding for rail and water freight facilities grants has also been maintained, while equivalent schemes in England have been put on hold (Scottish Executive, 2002: 23). Legislative provision also exists to introduce congestion charging by the Transport (Scotland) Act 2001 (Scottish Executive, 2002: 16), but has yet to generate any schemes.
2.29 One possible factor in the delay of rail projects was that rail functions were not fully devolved under the original devolution arrangements. This has recently changed with the devolution of most railway functions to the Executive, (Scotland Act 1998 (Modification of Schedule 5, Order 2004, SI 2004/3329; Railways Act 2005).
2.30 Meanwhile, a number of major road schemes have either been completed, received approval, or are under construction, for example, the M77 and A1 extensions have been completed, the M74 extension has been approved (although it is subject to a legal challenge) and the A8000 M9-Forth Road Bridge replacement dual carriageway link road was under construction at the time of writing. However, the Edinburgh Congestion Charge was not approved by a referendum conducted in the city in 2005.
2.31 Reviewing the Executive's spending on transport, it is apparent that, firstly, the total spend (at 2000-01 prices) has increased from £256m in 1995-96 to £586 m in 2003-04 and, secondly, that the motorway and trunk road share of this budget has declined from 88% in 1995-96 to 43% in 2003-04 with the public transport budget expanding from 12% in 1995-96 to 62% in 2003-4 (Scottish Executive, 2002: 23). This suggests much greater prioritisation for public transport than, for example, Transform Scotland has so far acknowledged. However, the figures do require further disaggregation in that the public transport budget has, since 2001-02, included the subsidy paid to Scotrail, which in that year amounted to £171.5m (Scottish Executive, 2002: 23). Thus, the figure cannot be said to represent investment in public transport alone.
Economy
2.32 This section provides a brief outline of some notable features of the Scottish economy, in terms of both the service and manufacturing sectors, including overall strengths and weaknesses and long-term trends. The growth of the service sector and the relative decline of manufacturing have for some time been dominant trends shaping the current economy (Scottish Executive, 2002). Within the former, both tourism and retail are major industries along with financial services. Oil and gas and construction remain major sectors, and there has been growth in the food and drink and renewables sectors within manufacturing. Agriculture, forestry and fisheries are relatively small sectors overall, in terms of numbers employed and percentage of Gross Value Added ( GVA), but are an important part of the Scottish rural economy. For example, best estimates suggest that in the Western Isles, Shetland and Berwickshire over 20% of jobs are fisheries-dependent, while in Banff and Buchan the figure is estimated to be 33% . In terms of agriculture, crofting is also significant in the Highlands and Islands with around 25% of the area's agricultural land devoted to crofting and about 10% of the Highlands and Islands population engaged in it in some way.
2.33 Overall strengths of the Scottish economy include: adaptability to structural change, strengths in specific sectors (such as finance, tourism, oil and gas, and whisky); inward investment; strong export performance relative to the whole UK (17% as compared to 15% of gross output); generally high quality of life and natural environment; and a high proportion of graduates in the population (Scottish Executive, 2000). Weaknesses include low productivity, lagging behind Europe, Japan, the USA and indeed the rest of the UK (Scottish Executive, 2000: 2.1 and 4.1); relatively low spending on R and D compared with the rest of the UK, Europe and the US; low business birth-rate; over-dependence on the electronics sector; poor levels of workforce training; geographic peripherality; a culture of risk-aversion in Scottish society; problems of poverty and social exclusion combined with a downward population trend; and physical infrastructure problems, particularly in relation to, for instance, the transport infrastructure and digital connectivity.
2.34 Scottish GDP index increased from 56.8 to 104.9 over the period 1970 to 2004, representing an annual growth rate of 1.8%, and indeed a growth rate of 2.1% since 1990 (Scottish Executive, 2005), which does not necessarily indicate sustainable growth. Although not dealt with in detail in this report, Scotland is having to engage in debates over the relative meaningfulness of GDP as a measure of progress within the context of moving towards more sustainable development.
2.35 There is evidence that the carbon intensity of the economy is declining (Scottish Executive, 2005a, Indicator 1) furthering the goal of decoupling growth from environmental pressure. However, there is insufficient data on energy consumption to identify any trends at present (Scottish Executive, 2005a, Indicator 12).
2.36 Another clear long-term trend is the decline of manufacturing. Its share now represents one fifth of total output, whereas it was one-third in 1966 (Scottish Executive, 2000: 11). Within the manufacturing sector, there has been a significant shift away from heavier and traditional manufacturing, such as metal and metal products, food, drink and tobacco, and textiles and leather goods, to lighter manufacturing industries where 140% growth has been seen in the engineering and allied sector (largely electronics sector growth) and 37% in chemicals.
2.37 In the primary sector, there has been strong growth in productivity in agriculture, forestry and fisheries against a backdrop of a falling share of Scottish output. The service sector has increased from one half of output in 1966 to two thirds today with strong growth in all service sectors, including 79% in business, financial and public services, 70% in distribution, hotels and catering and 53% in transport, storage and communications. Trends in the labour market have reflected the changes in the output of the various sectors with the share of employee jobs in manufacturing falling from 23% to 15% in 2005 and the share in the service sector growing in the same period from 65% to 75% (ibid). There has also been a shift towards greater female and part-time employment. Average weekly earnings placed Scotland tenth out of the eleven British regions in 1970 but Scotland had risen to sixth place in 1999.
2.38 The percentage of unemployed people of working age in Scotland has fallen from 10.2% in 1993 to 5.9% in 2004 (Scottish Executive, 2005a, Indicator 2). In 1999, urban and rural areas had similar unemployment rates, 7.6% and 7.4% respectively. Since then unemployment in rural areas has reduced by a greater extent: by 2004, unemployment in urban areas was 6.7%, whereas in rural areas it was 4.2%.
Governance and structures for promoting sustainable development
2.39 Since 1999, Scotland has enjoyed a system of legislative devolution rather than simply administrative devolution, which existed prior to that. The relative competences of Westminster and Holyrood are established by the Scotland Act 1998, which reserves certain functions to Westminster; if a function is not reserved, it is devolved to Holyrood. A very wide range of issues which touch on sustainable development are devolved to Scotland, including the promotion of economic development, housing, health, education, environmental protection, and town and country planning. Some key areas, however, are reserved, such as energy, although planning and related processes for energy projects are devolved and the Executive is now free to set its own targets for electricity generated from renewables in Scotland. Importantly, taxation is reserved, so economic instruments, like the Climate Change Levy, can only be established by UK Parliament. Since the original devolution arrangements, more powers over the railways, for instance, have been devolved, which significantly enables the Executive to pursue a more integrated transport agenda.
2.40 Constraints on the ability of the Executive to promote sustainable development inevitably include the need to comply with EU Directives, which may limit the scope for a different approach from the rest of the UK.
2.41 Although the Labour administration pledged in 1997 that all new public bodies established by it would be made subject to a duty to further or contribute to sustainable development, or to draw up a plan to promote sustainable development, and this was applied, for example, in the case of the Welsh Assembly (Government of Wales Act, 1998), such a duty was not imposed on the Scottish Parliament or Executive (for a general discussion, see Jenkins, 2002). Many bodies within Scotland are, however, now under obligations (usually qualified) to act sustainably or to contribute to sustainable development. Local authorities in their capacity as planning authorities are also obliged to take account of government planning policy, which includes a strong commitment to sustainable development.
2.42 All primary legislation is subjected to a "sustainable development compliance test", and the policy memorandum accompanying all Executive Bills in Parliament contains a statement as to whether the Bill touches on sustainable development and, if so, how. The approach is similar to that taken in relation to human rights compliance (Scotland Act 1998; Human Rights (Scotland) Act, 1998). Parliamentary scrutiny of Executive action on sustainable development has been characterised by insufficient by Birley (2001), who called for a specific committee to assume that role. At UK level, the Environment Audit Committee performs that role and considerable research has focused on its effectiveness (Ross, 2000, 2003 and 2004).
2.43 The need for leadership within the Executive to ensure the centrality of sustainable development across government area was stressed in an early report by the Secretary of State's Advisory Group on Sustainable Development ( AGSD, 1999). Birley (2002) subsequently identified a lack of leadership on the issue of sustainable development as a problem for Scottish government, which had resulted in a failure to put sustainable development at its heart. Despite pre-devolution, high-level rhetoric and a widely supportive context, Birley (2002: paras 9-10, 20) argued there had been little follow up by Ministers and indeed a relative downgrading of commitments from the comprehensive aim of integrating economic, environmental and social policies in 1999 to a concern in 2001, focusing on waste, energy and travel.
2.44 Although this approach was criticised by the UK Sustainable Development Commission as an inadequate basis for a sustainable development strategy, Meeting the Needs, the last sustainable development strategy for Scotland (Scottish Executive Environment Group, 2002) was overly focused on the themes of waste (characterised more positively as resource use), energy and transport. However, Meeting the Needs did also highlight the need for holistic thinking, beyond a simple focus on W-E-T. It received a qualified welcome, as did the Executive's Indicators of Sustainable Development, which were published at the same time and on which the Executive has since reported annually (for the latest progress report, see Scottish Executive, 2005a).
2.45 The First Minister's speech on environmental justice in February 2002, and his decision to chair the Cabinet Sub-Committee on Sustainable Development provided significant indication of a strong lead being taken on sustainable development at the centre of the Executive and have received a qualified welcome (Birley; 200; Scottish Environment Link, March 2003: 21-23). The theme of that speech also gives some clues as to how significant and influential the social justice dimension has been to recent thinking on sustainable development in Scotland.
2.46 The Secretary of State's Advisory Group on Sustainable Development undertook early supporting work on sustainable development in Scotland ( AGSD, 1999). However, this body and a number of others, notably the Education for Sustainable Development Group and the Scottish Environmental Education Council, were stood down in 1999 pending the establishment of a Scottish Sustainable Development Commission, the establishment of which had been recommended by the AGSD.
2.47 The Cabinet Sub-Committee on Sustainable Development, which replaced the Ministerial Group on Sustainable Scotland, is chaired by the First Minister and currently has three external members. It was established to co-ordinate and support the Cabinet on sustainable policy decisions and information is available on the Executive's website. Its remit includes:
- Identifying priorities for action on sustainable development in Scotland;
- Deciding issues of timing and implementation relating to the action to be taken forward in each portfolio;
- Determining how the resources agreed by Cabinet should be used;
- Monitoring the overall Executive performance in relation to environmental commitments in the partnership agreement;
- Supporting Cabinet colleagues in embedding sustainable development in their policies and programmes.
2.48 The Sustainable Scotland Network brings together Scottish local authorities to advance sustainable development action, previously under the name Local Agenda 21. This group includes representatives from all local councils and encourages networking and discussion on the implementation and monitoring of policies and projects on sustainable development.
2.49 As part of the Executive's Action Plan on Sustainable Development, the Minister for Environment and Rural Development, Ross Finnie, announced in autumn 2001 that the Executive would set up a forum to bring together members of the UK Sustainable Development Commission, business, the trade unions, NDPBs and NGOs to build broad partnerships to work towards a sustainable Scotland. The Scottish Sustainable Development Forum is now well established and provides a forum across Scotland for any organisation of individuals interested in debate, participation, awareness-raising and good practice-sharing.
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