The Scottish Government

REGULATORY IMPACT ASSESSMENT

1. Title of regulatory proposal:

2. The Environmental Impact Assessment (Uncultivated land or Semi-Natural Areas) (Scotland) Regulations 2002.

3. Purpose and intended effect of the measure

1. Issue and objective

Issue: To implement obligations arising under Directive 85/337/EEC (as amended by Directive 97/11/EC) as far as they relate to the provisions on uncultivated land or semi-natural areas.

Objectives:

1. Risk Assessment

Failure to implement these measures would risk further land of environmental value being brought into intensive use without the environmental effects of the change being considered. Non implementation or failure to implement EU obligations fully would also lead to infraction proceedings being brought against the UK at the European Court of Justice.

3. Options for Implementation

Three options have been identified - do nothing, voluntary scheme or regulation. The first two options are not analysed further since they do not meet the objective of introducing statutory protection for uncultivated land as required by the Directive.

Issues of Equity and Fairness

The Regulations would apply equally to all those proposing projects to bring uncultivated land or semi-natural area into intensive agricultural use.

4. Benefits

1. Identifying the benefits

2. The measures would assist in safeguarding Scotland's historic and natural heritage, biodiversity, wildlife and landscape, supplementing existing voluntary and statutory measures.

3. Quantifiable and value benefits

Indicative figures show that in recent years up to 10,000 hectares or 1% of uncultivated land or semi-natural areas (depending how this is defined) has been lost annually to all uses. For example, the Countryside Survey 2000 estimated that the area of semi-natural 'acid' and 'calcareous' grasslands had fallen by 10% and 18% respectively in the UK in the last 10 years. Plant diversity also showed a continued decline in the least agriculturally improved grasslands. Plant diversity in some meadows fell by 8% including losses of meadow species important to butterflies.

A regulatory approach will help ensure that the likely environmental impacts of proposed projects are fully considered before work on them may start. The areas of uncultivated land or semi-natural areas that might be safeguarded are impossible to predict with accuracy. This will depend on the nature of a particular project, the expected impacts to which it might give rise, and the scope for alternative approaches such as entering the land in a SEERAD agri-environment scheme.

5. Compliance Costs

i. businesses affected

Potentially any landowner or business intending to bring uncultivated land or semi-natural areas into intensive agricultural use, which may give rise to environmentally significant effects.

ii. compliance costs for a typical business

Indicative costs are as follows:

Implementation costs may include the cost of preparing an application (say 4 hours, depending on the level of detail required) and employing a consultant (possible cost £1000-2000) to prepare an Environmental Statement if the farmer himself or herself was unable to complete this. In practice however SEERAD will only seek details in a statement which can 'reasonably be required' and will use other sources of data where available.

Policy costs may arise to the extent that the Regulations would preclude changes in land use which could otherwise generate additional income to the farmer. The net surplus foregone from such a project to cover labour and rent or finance charges could be in the region of £800/ha (based on 2001 data for non-IACS crops - potatoes or other high value vegetable crops). This calculation is obviously subject to very wide variation depending on the nature of the project, future movements in costs and prices and the revenue, if any, generated from the previous land use.

iii. total compliance costs

As an illustration, the costs arising for 100 projects in Scotland subject to an application, of which 10 led to an Environmental Statement prepared by a consultant, could be as follows

Applications £5,000

Statements £15,000

Policy costs (if consent refused) £8,000

Total £28,000

6. Impact on Small Businesses

The assessment above applies typically to small and medium-sized farm businesses.

SEERAD will provide advice and guidance on the EIA requirements, and on measures that can be taken to minimise the need to produce Environmental Statements. Other sources of advice may also be available, for example through the Scottish Agricultural College and other advisory services. This collaborative approach to implementing the Regulations will be of particular benefit to small and medium-sized businesses which may lack resources or information to carry out environmental assessments of projects or to research alternative options.

7. Other Costs

The costs to SEERAD of implementing the Regulations cannot be estimated accurately without knowing in advance the number of projects subject to EIA. Costs for statutory consultees are not possible to estimate at this stage.

8. Results of consultation

One formal consultation exercise has been carried out in 2001 and the views of statutory agencies, bodies representing environmental and historic heritage interests and the farming industry have helped to formulate the policy underlying the Regulations and associated guidelines on implementation.

9. Summary and Recommendation

The Regulations need to be made in order to implement European Community obligations and will extend the range of safeguards protecting the Scottish countryside while keeping implementation costs to a minimum.

10. Enforcement, Sanctions, Monitoring and Review.

The Regulations will be implemented by SEERAD, and include provisions for consultation of statutory agencies and other bodies on individual cases, and penalty and appeal provisions. The implementation procedures will be reviewed in the light of experience within 18 months of the Regulations coming into force.