The Scottish Government

Note of National Stakeholder Forum meeting

16 November, Royal Lodge Hotel,BridgeofAllan

Introduction & welcome

Elinor Mitchell welcomed attendees to the meeting. She outlined progress to date since the last meeting of the NSF in April 2004, on matters including:

• Controlled Activities Regulation consultation
• Development of of GBRs
• Charging Scheme
• Diffuse Pollution
• Remedial & Restoration work
• Executive attendance at European meetings to increase Scottish profile.

She set out plans for 2004/05:

• SEPA will finalise its Characterisation report by December
• SE will finalise Controlled Activities Regulations in the spring
• Diffuse Pollution - a working group had been established to take this forward and the SE invited stakeholders' help in developing this area of control

Agenda items and key points :

1. Revised Proposals for Regulation -Joyce Carr, Scottish Executive

Joyce Carr outlined the revised proposals for the Controlled Activities Regulations, focusing on the new structure of controls. She welcomed comments and feedback from stakeholders, inviting questions to a panel consisting of Elinor Mitchell and Joyce Carr from the Executive, and Martin Marsden and Dougie Johnstone from SEPA.

Stakeholders broadly welcomed the revised proposals.

There was some discussion on the role of the risk assessment and how SEPA's characterisation exercise would inform the regulatory process. Consideration had been given whether it was possible to set different regulatory controls for different parts of Scotland. The tiers set out in the diagrams were indicative of the likely level of control, and the Regulations would be designed to be sufficiently flexible to allow SEPA's risk assessment process to set the appropriate level of control for the area.

Stakeholders would like to see some examples of simple licences.

There was considerable discussion on the development of SEPA's risk assessment and the nature of the risk being assessed - whether current impact or potential impact. SEPA were in the process of developing their risk assessment which would be discussed and considered at their Regulatory Stakeholder Group.

Joyce Carr undertook to produce a more detailed paper on how the revised controls would permit flexibility of regulation. It was agreed that a meeting in late January would be a good opportunity for stakeholders to review and provide comment on the revised Regulations

2. Transitional Arrangements Update - Dougie Johnstone, SEPA

Dougie Johnstone outlined the proposed transitional arrangements including the transfer of existing consents into the new regime.

In response to queries, Dougie explained that with regard to the concept of a "Responsible Person", either a person or corporate body can be named. Holders of IPPC Permits would still have to apply for an abstraction permit under WEWS as well as having an IPPC permit. In the longer term the SE were planning to consider how these regimes might be merged.

Stakeholders expressed considerable concern about the data requirements, workloads, amnd budget implications. It would be useful to see proposals for the format in which data will be required to be prepared.

There was some general discussion about the draft general binding rules. These were still working drafts, and once these had been refined they would be issued to stakeholders for comment, within a couple of weeks. SEPA would also make available information on the detailed transfer requirements by early December. They would also discuss the requirements directly with stakeholders.

3. Executive progress report - John Langlands & Ian Speirs, Scottish Executive

John Langlands and Ian Speirs gave a brief outline of the Executive's general progress on implementing WFD, including the designation of protected areas, diffuse pollution and remedial & restoration works.

4. SEPA progress report - Colin Bayes, SEPA

Colin Bayes presented a summary of SEPAs work on two major activities, the analysis of pressures and impacts on Scotland's water environment, and SEPA's consultation on river basin management planning.

5. Economics - Evan Williams, SEPA

Evan Williams presented the initial findings of SEPA's economics characterisation report, required to support the environmental characterisation of Scotland's waters.

Some stakeholders expressed disagreement with the findings of the draft economic report, and with its focus. There was also considerable concern about the future use of this report. Moreover such a report could only reflect averages, not site specific data. It was agreed that some of these concerns would be set out in the revised report.

The Executive recognised that this report was a useful starting point but that the contents should not be taken as definitive.

5. Regulatory Impact Assessment - Jenna Coull, Scottish Executive

Stakeholders commented that the RIA should demonstrate greater benefits as a result of the increased regulation. There was also some discussion about the respective costs. It was emphasised that this was a very early draft and that the Executive proposed to seek both SEPA's and stakeholders' input to the further development of the RIA.

6. Charging Scheme - Martin Marsden SEPA

Martin Marsden outlined the work that had been done to develop SEPA's charging scheme. A revised work plan had identified a reduction in costs of around 30-35% per year, resulting in a cost estimate of around £10m pa for the additional cost of implementing WFD. Of these costs, it was expected that some £3.5m would be spent on regulation, £5.4m on monitoring, and £1.1m on river basin management planning.

SEPA was in the process of developing appropriate bands and multipliers for the charging scheme. This work will be taken forward through SEPA's Regulatory Stakeholders Group.