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CHAPTER 1 - SETTING THE SCENE

INTRODUCTION

1. Scotland is a maritime nation. More than half of Scotland is water and the vast majority of Scots live within 10km of the sea. The sea shapes us and sustains us.

2. Our seas are special. They are among the most biologically productive in the world, containing over 40,000 species and internationally important populations of marine mammals and sea birds. We have 10% of Europe's coast, of which large stretches are sparsely populated and little developed.

3. The seas are a major asset for Scotland and generate more than £2.2 billion for the Scottish economy (Figure 1.1). Interest has soared in how our coasts and seas are managed for future generations. For example:

• the Scottish fishing zone is one of the largest of any EU nation and sea fishing has always been a part of Scottish life;
• aquaculture has increased substantially over the last two decades and Scotland is one of the largest producers of farmed finned fish in the EU;
• oil and gas exploitation has been a major activity in the waters around Scotland since the 1970s and contributes significantly to the Scottish economy, directly supporting 145,000 jobs, and many more indirectly;
• Scotland has more than 100 ports, in one year handling over 100 million tonnes of cargo and 8 million passengers;
• wildlife tourism and leisure interests in the sea are growing year on year, providing an increasingly important source of income and jobs to coastal communities and remote areas; and
• understanding of how our seas help maintain our ecosystem is increasing.

Figure 1.1 The value of Scotland's seas

4. Scotland is world renowned for its seabird populations and has around 30% of the world population of grey seals, 45% of the EC population of common seals, and 22 species of porpoise, dolphin and whale can be found in Scottish waters. Some of the finest marine habitats in Europe can be found in Scottish waters, including rocky reefs carpeted in soft corals, sea fans, sponges and fragile and extremely rare tubeworm reefs (found at only a handful of localities in the world).

5. The Scottish Government's purpose is to focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish through increasing sustainable economic growth. The seas around Scotland can contribute to delivering on the following national outcomes.

• We live in a Scotland that is the most attractive place to do business in Europe. Scotland's businesses are the principal driver of increased productivity, employment growth, competition and innovation. Growing businesses bolster prosperity at a personal and national level, and the income that they generate underpins our quality of life. Scotland's seas have much to offer. Our role is to foster the conditions that will give Scotland a competitive edge. We do this by taking actions that will improve the attractiveness of Scotland as a place to do business.
• We reduce the local and global environmental impact of our consumption and production. We face other increasing environmental pressures too, such as constantly rising levels of consumption and ever greater competition for natural resources fossil fuels, air, timber, water and land - all of which are already under pressure. Scotland aims to become a leading nation in developing a sustainable way of life, reducing the impact we have on our local and global environment. The choices we make will be critical to shaping a modern, successful and sustainable Scotland.
• We take pride in a strong, fair and inclusive national identity. We want all of Scotland's people to take pride in their country, in particular the quality of our landscapes and seascapes and our heritage and our diverse and vibrant cultural life. Working with key partners and stakeholders to promote and protect our natural assets, while investing in green tourism and renewable energy technologies.

6. There is excellent potential for renewable energy generation around Scotland's coasts. Scottish Ministers intend that the changes proposed in the planning and licensing sections of this consultation will enable developers to meet the Scottish Government's ambitious target of 31% of Scotland's electricity to come from renewable sources by 2011. Scottish Ministers are also committed to seeing 10 MW of wave and tidal energy deployed by 2010.

7. We need to ensure that we sustain the wealth and other benefits that the sea can offer Scotland for the future. Our seas support half of the key economic sectors identified for delivering sustainable economic growth in our Government Economic Strategy. ¹

• Energy. Scotland has 25% of Europe's total tidal and offshore wind resource and 10% of its potential in wave power. Scotland is well placed to become a European leader in renewable resources in addition to the continued importance of oil and gas resources.
• Food. Many communities around Scotland's coasts depend on fishing and fish farming for their livelihoods and these are industries accounting for 60% of all food exports from Scotland, valued at £422 million. Achieving sustainability is key to the long term viability of these industries. It is commendable that around 50% of Scottish fisheries are currently being assessed for Marine Stewardship Council sustainability certification. With more upstream exploitation of Scottish fish resources, these industries could be even more important in the Scottish economy.
• Tourism. With its high quality scenery, wildlife, sailing and its culture, history and people, Scotland is potentially a top marine and coastal recreation destination. Tourists are increasingly looking for authentic experiences with high quality, good value services and facilities.

8. The sea has a special place in the social and economic life of Scotland. However, the links between us and the sea are becoming more fragile and with technological advances and societal changes, the competition for the sea's resources is growing. Direct conflicts are rising, for example, between the needs of protected wildlife and exploitation of marine resources (Box 1.1 and 1.3).

A GROWING CONSENSUS ON CHANGE

9. In recent years there has been a growing consensus in Scotland that change is needed to balance resource use and resource protection. A recent inventory, Scotland's Seas: Towards Understanding their State (published in April 2008) ², provides valuable baseline data about our seas as context against which change can be set (Box 1.2). The case for change has notably been presented in two reports published last year, a report of the previous Parliament's Environment and Rural Development Committee ³ and the report of the Advisory Group on Marine and Coastal Strategy ⁴. And building on this work more recently, the Scottish Government's Sustainable Seas Task Force ⁵ have developed the more detailed proposals presented in this paper. This process also includes evolution of an Inshore Fishery Group ( IFG) concept that seeks to produce a well governed fishery that has sustainability, profitability and subsidiarity at its core.

10. The Environment and Rural Development Committee ( ERDC) of the Scottish Parliament, following its Inquiry in 2007 into the Marine Environment, identified Scotland's seas as rich and biologically productive, a dynamic, robust and yet delicately balanced resource, and having an immense economic and iconic value to Scotland. The Committee's report focused on how to effectively manage the pressures on the marine environment from the inter-connected impacts of different uses, conflict between competing uses, and natural processes. Recommendations called for a new statutory system of marine spatial planning in Scotland, and the need for steps towards a less complex, single integrated regulatory system for all marine activities. They also considered marine protected areas to be a significant objective of legislative reform and separately noted the need for further developments on marine data and research, objectives and indicators. In relation to delivery arrangements, they considered it essential that a marine management organisation for Scotland must simplify governance and not add another layer to existing regulation, and that any new management system must be properly accountable to the Parliament.

11. The Advisory Group on Marine and Coastal Strategy ( AGMACS) also recommended changes to the legislative framework for the marine environment, calling for statutory marine spatial planning and a three pillar approach to nature conservation, with specific measures for species conservation, policy, and site protection. They additionally called for a Scottish marine management organisation, which would also have responsibility for national coordination of integrated coastal zone management and marine spatial planning delivery with national and local dimensions. They also recommended that consideration should be given to a Scottish marine management organisation having responsibility for marine nature conservation and fisheries out to 200 nautical miles (nm). The Scottish marine management organisation is referred to as Marine Scotland in this document.

12. In January 2008 the Cabinet Secretary for Rural Affairs and the Environment convened the Sustainable Seas Task Force ( SSTF) ⁵, a 25 member stakeholder group. The membership of the SSTF is listed in Annex A. The remit of the Task Force was to input into the development of the Scottish Government's proposals for a Scottish marine bill, building on and taking forward the work of ERDC and AGMACS. The detailed proposals in Chapters 2-6 of this paper have been developed out of this work.

Why change is needed

13. As successive inquiries have found, change is needed in the management of Scotland's marine environment for the following reasons:

• to clarify overall objectives for the marine environment and meet them more effectively and affordably;
• to manage growing, often competing demands for use of marine space, including balancing environmental and socio-economic considerations. This includes a need to provide greater certainty for those proposing developments in marine areas;
• to meet existing and new marine obligations and aspirations. We need to develop and implement ecosystem-based approaches to marine management and make improvements to marine nature conservation;
• to improve integration and reduce complexity of marine management and regulation, in line with wider Scottish Government and EU policy aims.
• to give local communities a stronger voice in marine matters and to ensure accountability at the local and Scottish levels on marine decision making.
• to ensure a strong and coherent Scottish voice and play an effective role in the wider management of UK seas; and
• to lead the way in Scotland on how the seas in North West Europe can be managed to strike the right balance between economic, social and environmental priorities.

14. There is also a need to consider the possible risks of management and organisational changes. These include:

• introducing a further layer of regulation or bureaucracy without offsetting savings;
• loss of the advantages of the existing 'horizontal' approaches to management ( e.g. on a sectoral basis and/or which cross the marine/terrestrial divide); and

the financial and other ( e.g. disruption) costs involved - costs need to be affordable and justified on the basis of the anticipated benefits of change.

PROPOSALS FOR CHANGE

15. This paper outlines a new more strategic approach to managing Scotland's seas and invites views and ideas on our proposals for the way forward. We will separately publish, during the consultation period, information on the impact of the proposals in this document, to better inform consideration of the costs and benefits of our approach.

16. Specifically this paper proposes a new legislative and management framework for the delivery of sustainable economic growth in the marine environment, with proposals relating to creating a stable investment environment, reducing the regulatory burden, nature conservation, improving our understanding of the seas with delivery through a Scottish marine management organisation - Marine Scotland.

Marine planning

17. This paper proposes to: provide greater certainty for marine developers and marine users; maximise the social, economic and environmental value of the marine resource; and ensure an overall sustainable development approach. Lead responsibility for securing the sustainable growth in Scotland's seas should lie with the Scottish Ministers and Parliament through the introduction of a new statutory system of marine planning (chapter 2) with distinct national and regional structures and priorities. At the Scotland level, a national marine plan would be prepared, setting out our national strategic objectives and priorities for the marine environment. This could include improved measures to protect and restore
the natural marine environment. The delivery of sustainable growth in Scotland's seas will require effective co-operation with Scotland's partners within the UK and beyond. The proposed management body Marine Scotland will be well placed to develop cooperation.

18. At the regional or local level we intend to create Scottish Marine Regions ( SMRs). These will be led by local stakeholders and interested individuals who will set out local objectives and develop local plans for the marine area. These structures will deliver local accountability in decision making and we envisage
a leading role for local authorities. Decisions made locally, based on good information will provide a sound basis for local stewardship of the coast and sea area. As far as possible these will use existing structures and partnerships and will be compatible with existing fishery management tools ( i.e.IFGs).

Licensing and enforcement

19. The paper proposes to reduce the burden on developers by streamlining and modernising marine licensing and consents system (chapter 3) to deliver quicker and clearer decisions. The paper proposes integrating the planning and licensing system to allow developers a better understanding of what activities might be suited to certain sites. The overall approach is aimed at delivering a more streamlined approach, more tailored to the needs of prospective developers and reducing the regulatory burden.

Marine nature conservation

20. The proposals in this paper will help us to maximise sustainable economic growth for the marine environment, this can only be realised alongside proposals that protect and preserve the important natural asset upon which growth is based. At the heart of our proposals for improving the system of marine nature conservation (chapter 4) are planning and management tools that deliver practical nature conservation at the ecosystem level. The seas around Scotland form a distinctive natural ecosystem. Put simply, this means the communities of marine plants and animals living in marine habitats, and forming an integrated whole. Ecosystems are the basis of the productivity of the seas whether it is the fish, animals and marine plants, the natural environmental processes that deliver stable weather and climate, or their contribution to our health and wellbeing through our enjoyment of everything Scotland's rich seascapes have to offer. The marine ecosystem is therefore the key asset that we must safeguard.

21. This paper outlines improvements to our three pillar approach to marine nature conservation: the application of ecosystem level policy measures; specific measures to enhance protection for certain species, for example seals; and the application of site protection mechanisms including powers to designate a new type of Marine Protected Area ( MPA) identified on the basis of objective scientific assessment.

Science and data

22. To realise our aims for delivering a sustainable marine environment, we need the decisions backed by robust and informative science and research. The proposals in the paper (chapter 5) outline our overall approach to marine science.

Marine management

23. The paper outlines our proposals to set up a new structure to champion Scotland's seas, leading on the delivery of the Scottish Government's vision of sustainable seas for all. Marine Scotland (chapter 6) would have the following functions:

• collection and co-ordination of marine data, and marine science strategy;
• lead responsibility for marine planning, integrated marine consents (streamlining the many licensing systems now applicable), marine management, compliance monitoring and nature conservation;
• a co-ordination role for aquaculture, marine renewable consents and management of marine and coastal areas, working closely with IFGs, local partnerships and wider stakeholders.

24. Marine Scotland can either be a Directorate of the Scottish Government or a separate body such as an agency. Chapter 6 also explores this issue.

25. A key duty on Marine Scotland will be to deliver increased economic growth for the marine area. This paper also proposes that Marine Scotland should have the lead responsibility for achieving the sustainable use of all waters around Scotland.

26. Figure 1.2 gives an illustration of how the overall regulatory regime might be simplified for prospective developers as a result of our proposals for marine planning, licensing and enforcement, and establishing Marine Scotland.

Figure 1.2 Schematic representation of how the marine bill would change regulatory regime

Scotland's seas - Scotland's decisions

27. Key to the new system will be people getting involved in resolving issues using partnership rather than conflict. Those who make their living from the sea need to align themselves with those who care about conservation. Champions of the natural environment need to support the exploitation of natural resources. It will bring in simpler decision making, using sensible pragmatic processes. Decisions will be soundly based with scientists and users of the sea sharing knowledge and data, respecting the different perspectives which each party brings. We will be working to build shared commitment to common objectives for the good of both Scotland's economy and Scotland's environment. Regulation will still be part of the picture because there needs to be a bottom line to protect precious resources. Regulation will be undertaken in a way that ensures that the protection of Scotland's seas and getting the most from them are entirely compatible.

Scotland's seas- the case for devolution

28. The seas around Scotland are subject to a complicated mix of reserved and devolved regulatory activity (Figure 1.3). With Marine Bills being developed for the Scottish and UK Parliaments and the prospect of future Northern Ireland legislation, there is the prospect of securing a comprehensive framework for protecting and managing the seas around the UK.

Figure 1.3 Scotland's seas: boundaries and responsibilities

29. Scottish Ministers are seeking additional devolution of marine planning and nature conservation matters in the offshore area around Scotland, between 12nm and 200nm. We believe that is the most effective and practical way of improving the management of the seas around Scotland and delivering UK and EU priorities. This view is supported by the Scottish Parliament. We believe it is right that the new responsibilities being proposed for marine conservation and planning should come to Scottish Ministers. The population of Scotland has a strong affinity with these waters. They are fished by the Scottish fleet, they provide jobs for Scots and Scots study them. Scottish Ministers can deliver planning, management and conservation in the seas around Scotland more effectively than others. Scottish Ministers believe that further devolution would simplify the management of the seas, reducing the number of management regimes from three to two. Scottish Ministers acknowledge the necessity to deliver a joined-up system of marine planning in the UK and would seek to agree mechanisms which respect constitutional difference but deliver an effective management system.

30. Delivery from Scotland is in our view more effective in practice for the following reasons:

• proximity - Scotland is closer, response times are faster and the resources required to deliver are lower;
• practicality - Scottish administrative centres are where a large proportion of the stakeholders live and where any enforcement action is likely to come to court;
• management - Scottish Ministers manage, amongst others, the fishing function, critical in terms of delivering sustainable development; and
• resources - Scottish Ministers already have a credible compliance monitoring and enforcement body, the Scottish Fisheries Protection Agency ( SFPA), operating in the offshore area. The SFPA, acting on behalf of the Secretary of State, already ensures compliance with the Birds and Habitats Directives in the offshore area.

31. Over and above the issues of effective delivery, there is the principle of subsidiarity that decisions are best taken as close as possible to the people and stakeholders who will be affected by them. Additional devolution would clearly deliver this principle. Additionally, proposals for ship-to-ship transfer of oil in the Firth of Forth (Box 1.4) have identified limitations on Scottish Ministers' powers to deliver nature conservation objectives inside 12nm. We believe there is a strong case for further devolution inside 12nm to clarify Scottish Ministers' lead role.

What difference would these changes make?

Renewable energy generation

32. The introduction of long term planning will provide greater certainty for developers making investment decisions easier and delivering higher economic growth. The marine planning system can be used to set objectives at a national level that prioritise key sectors, such as marine renewables. Also a more streamlined and modernised licensing system will reduce the regulatory burden facing prospective renewable energy developments. Scotland is well placed to expand the exploitation of wind and wave power and an effective marine management framework will provide focus and support the industry needs. Also the streamlining of licensing will substantially reduce the administrative burden on developers.

Fishing and aquaculture

33. It will allow the fishing industry to be more actively involved in how we safeguard the harvest of the seas responsibly ensuring that the ecosystem that produces the harvest remains in good shape. It will also help in resolving conflicts between different forms of fishing, for example mobile versus static operators such as creelers. These changes will make it easier for fishermen to take steps to safeguard the fishing stocks by protecting fishing grounds from other users of the sea which challenge that livelihood. Our aim is that aquaculture operators would see a marked reduction in the number of separate licence applications they would need to prepare.

Local communities

34. These changes aim to empower local communities to make an input into the future of their local coasts and seas. Involvement at local level, balancing cooperating interests will better reflect local needs and ambitions in marine issues.

Nature conservation

35. These changes will put the "ecosystem" at the heart of our management of Scotland's seas whilst contributing to sustainable economic growth. The changes outlined in this consultation paper will ensure that Scotland's marine and coastal environment is "clean, healthy, safe, productive and biologically diverse" and "managed to meet the long-term needs of nature and people" while recognising important sites and protecting vulnerable species. Decision making will be based on sound science.

Q1 Do you agree that change is needed to the management and legislative framework for managing Scotland's seas?

Q2 For each of the following areas, do you agree that Scottish Ministers/Scottish Parliament should put in place a new legislative and management framework to deliver:

a) a new system of marine planning for the sustainable use of Scotland's seas;

b) improvements to marine nature conservation to safeguard and protect Scotland's marine assets;

c) a streamlined and modernised marine licensing and consents system;

d) better stewardship backed up by robust science and data; and
e) a new structure, Marine Scotland, to deliver sustainable seas for all?

Q3 What difference would these changes make to your area of interest?

Q4 Scottish Ministers believe there are strong practical reasons for further discussion with the UK Government on the allocation of responsibilities around the seas of Scotland. Do you agree with this approach?

APPENDIX TO CHAPTER 1

SCOTLAND'S MARINE HISTORIC ENVIRONMENT

36. The harbours and lighthouses, the wrecks of ships and aircraft, and the many prehistoric sites found along our coasts (Figure 1.3) provide a rich historic dimension to Scotland's marine environment which adds to its quality and character.

37. Whether by direct enjoyment by visitors of the remaining wrecks of the German High Seas Fleet, scuttled in Scapa Flow in 1919, or simply by understanding that remains dating from the earliest recorded human occupation of Scotland 10,000 years ago may be found at the coast edge or further offshore, it is clear that Scotland's marine historic environment has a positive contribution to make to the economic, social and cultural fabric of today's Scotland.

38. Scottish Ministers are committed to the sustainable use and management of the historic environment. This means meeting the needs of today without compromising the opportunity for future generations to understand, appreciate and benefit from the historic environment. This principle extends seamlessly from land out to sea.

39. Scottish Ministers' policies for the historic environment are set out in the Scottish Historic Environment Policy ( SHEP) series. SHEPs provide a framework to inform the day-to-day work of a range of organisations that have a role and interest in managing the historic environment. These include the Scottish Government, local authorities and the range of bodies that are accountable to Scottish Ministers, including Historic Scotland.

40. In March 2008, Scottish Ministers launched a SHEP consultation "The Marine Historic Environment". ⁶ Policy proposals include consideration of the marine historic environment within planning processes. The SHEP also sets out a new mechanism to protect Scotland's most important marine historic assets as existing site protection legislation for the historic environment is widely considered ineffective underwater. The new mechanism would: broaden the range of historic assets that can be designated if they are of national importance; set out consultation procedures prior to designation; provide powers of interim protection during consultation; and ensure that controls are more effectively targeted at the needs of each site, ensuring that non-damaging seabed activities would not be unreasonably prohibited or the subject of burdensome licensing.

41. Although the SHEP consultation has been undertaken separately, it is intended that the policies and provisions set out will be integrated within the holistic management framework we are proposing in this consultation paper.

Figure 1.3 Prehistoric scheduled monuments on Scotland's foreshore

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