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Chamber and committees

Finance Committee, 11 Nov 2003

Meeting date: Tuesday, November 11, 2003


Contents


Nature Conservation (Scotland) Bill: Financial Memorandum

The Convener (Des McNulty):

I welcome the press and public to the 13th meeting of the Finance Committee in session 2. I remind members and everyone else that all pagers and mobile phones should be switched off.

The first agenda item is consideration of the Nature Conservation (Scotland) Bill, which was introduced on 29 September 2003 by Ross Finnie. To assist our consideration of the financial memorandum that accompanies the bill, we have two witnesses from Scottish Natural Heritage: Jeff Watson, who is director of strategy and operations, north, and Alan Hampson, who is national strategy officer. We also have with us Alan Stewart, who is a wildlife and environment officer from Tayside police.

I remind members that our focus for consideration is not the bill's policy issues but its financial memorandum. As we must deal with the bill within a short time scale, we will take evidence from the Scottish Executive immediately after we have heard from our first witnesses. At the end of our evidence-taking session, I will give members an opportunity to discuss the key points that they would like to see incorporated in the committee's report.

Members have a copy of the written submissions from SNH and from Alan Stewart. In addition, we have received submissions from the Scottish Land Court, the Crown Office and Procurator Fiscal Service, the Scottish Court Service, the Advisory Committee on Sites of Special Scientific Interest, Registers of Scotland and the Convention of Scottish Local Authorities.

I hope that we will finish the first bit of evidence taking before 11 o'clock, but I indicate to everyone that it is my intention to hold a two-minute silence at 11 o'clock in recognition of remembrance day.

I invite the witnesses to make an opening statement, unless they want to go straight to questions.

Jeff Watson (Scottish Natural Heritage):

Scottish Natural Heritage warmly welcomes the bill and its objectives of securing better protection of nature conservation assets and wider public support for biodiversity conservation.

For the biodiversity duty and the measures to deal with species protection and wildlife crime, we do not expect that significant new work will fall to SNH. We envisage modest amounts of new work for SNH over the short term as we prepare for enactment of the changes to the sites of special scientific interest system.

We expect the major requirement for new work to arise during the six years after April 2005, when SNH responds to the provision in section 6 for the review of operations requiring consent for the 1,450 existing SSSIs and the associated consultation with the 10,000-plus owners and occupiers of those sites.

Dr Elaine Murray (Dumfries) (Lab):

I want to relay one or two comments on the financial memorandum that have been made by RSPB Scotland and the Scottish Wildlife Trust. Those organisations welcome the bill but they have asked about the move from the negative management of SSSIs—which basically means that we pay people not to do things—to a system of positive management, whereby people are paid to manage SSSIs in a beneficial fashion. The organisations felt that the funding streams were not absolutely clear. The suspicion was that a financial burden would be associated with the move. It was not quite clear how much would come from the natural care programme, how much would come from the rural stewardship scheme and how the budget streams that are to be associated with positive management are to be identified.

Jeff Watson:

We have identified a forward programme under the natural care strategy that will reach the predetermined target of about £7.5 million from the SNH budget by about 2008-09. That is in our forward projections. We also hope that, as well as other contributions to natural care, there will be an increasing contribution from the rural stewardship scheme and the Scottish forestry grants scheme. However, we are confident that the moneys that will come from our contribution are accounted for in the budget.

As a matter of interest, will you advise us what percentage of SSSIs are farmed and what percentage are not farmed?

Jeff Watson:

I cannot give a clear answer on that today. Large areas of upland are farmed to a low intensity because of sheep management. Obviously, there are large areas of deer cover that are not farmed. I am afraid that I cannot give an immediate answer to your question, but I could come back to you on it.

Mr Ted Brocklebank (Mid Scotland and Fife) (Con):

From a financial point of view, many of the bill's provisions appear either to be relatively cost neutral or to involve increases that are not particularly significant. However, I am interested in the paragraph in the financial memorandum about compensatory management agreements. The memorandum states:

"SNH estimates for ongoing agreements are £1,010,000 in 2003/04, dropping to £740,000 by 2005/06."

Why do those figures appear to be dropping?

Jeff Watson:

Those figures are for compensatory management agreement payments. It is our intention that, as agreements come to an end, we should encourage people to enter into the positive management schemes that are available under the natural care scheme. In so far as the bill deals with established management and provides the opportunity for people to continue with compensatory arrangements, that is clearly something that would need to be considered at the time. However, as we hope that the majority of people will move into the positive management schemes, the amount of money that is set aside for compensation will drop as current agreements come to an end.

Mr Brocklebank:

I remember the rather famous case of a landowner—in Lochaber or somewhere like that—who had an SSSI in his grounds and who was paid large sums of public money to protect a particular wildlife species. Are you saying that, because agreements are coming to an end, such cases will be less likely in the future?

Jeff Watson:

Absolutely. As I understand it, the intention is that the availability of compensatory management agreements will be much more circumscribed under the bill than under the current arrangements.

The Convener:

I want to ask about the extra responsibilities for the police under the bill and about the remit and work load of wildlife liaison officers. Is Alan Stewart content that what is required can be met within the costs that have been identified for the bill?

Alan Stewart (Tayside Police):

I think that the bill will have little financial implication for us either on the practical enforcement side or on the training side. We are very much going down the road of trying to ensure that people comply with the law. Many of our activities are directed at training, giving talks and ensuring that people are aware of the law and understand it. If such preventive measures are successful, I hope that we will have relatively little enforcement to do. That is the road that wildlife crime officers take to try to prevent crime.

We hope very much to work a wee bit more closely with SNH, particularly in relation to SSSIs, to try to prevent crimes from happening and to ensure that, where there is evidence, gross breaches of the legislation are reported to the procurator fiscal. Most of those matters are non-urgent and can be dealt with as and when officers become available. Again, I foresee the proposed changes having little financial implication.

Mr Brocklebank:

Your submission indicates that police officers take on a lot of the work without any remuneration—they get days off and that kind of thing, but little overtime is involved. That is creditable and I am impressed. However, it is suggested that, under the bill, you will also have responsibilities for policing the trade in eggs and the theft of eggs in relation to non-European Union countries. If you investigate cases that arise outside the United Kingdom, will that require extra expenditure?

Alan Stewart:

That is always an unknown quantity. I think that such cases will be relatively uncommon, although they could happen. If we are investigating a case involving eggs that are taken from other countries, the chances are that those eggs will have been recovered in this country. Some inquiries abroad might be required, but we have good links through the national wildlife crime and intelligence unit, which can facilitate most of those inquiries. It is always difficult to foresee what expense might be involved, but I cannot think of any cases that would cost a lot of money.

Jim Mather (Highlands and Islands) (SNP):

Paragraph 356 in the financial memorandum states:

"A key financial effect of the new provisions in the Bill will be to ensure that existing resources can be deployed more efficiently and effectively, producing improved results for the same input of resources."

How will SNH measure the results? What targets will be put in place? What will change? What will be done more effectively? What added value will be delivered through the process?

Jeff Watson:

I would start from the policy intention of "The Nature of Scotland", which discusses the need to make the current, bureaucratic system of SSSIs more user friendly and, by so doing, to secure a wider public commitment to the protection of nature, particularly from the people who live and work on the sites. The mechanism that we envisage being used will reduce the number of occasions on which people require consultation with SNH and the length of the list. That is a significant piece of work for us, but we believe that it will enable us to measure greater support for the SSSI system from owners and occupiers and more positive management of the sites, including greater uptake of the natural care programme.

We will measure the effectiveness of the system in two ways. One relates to the way in which people take up natural care and are involved in positive management and the other is through our periodic customer surveys of owners and occupiers of SSSIs, through which we can gauge—as we have already done—the changes in attitude towards the sites.

Beyond those surveys, who else should we look to for corroboration of that information after the event?

Jeff Watson:

In relation to SSSIs, we will be under scrutiny from organisations that have a particular interest in nature conservation, whether those be non-governmental organisations or parts of the Executive. Questions will undoubtedly be asked of us from time to time about how effectively we are looking after the sites and about the incidence of damage on the sites—if the incidence of damage is reducing, that will be another positive measure.

You mentioned damage, which is tangible, but public perception of SNH is very much more intangible. Is that as far is it goes in terms of producing improved results?

Jeff Watson:

No. We must look at the issue from both perspectives. We must ensure that we have adequate ways of measuring the benefits for nature and the nature conservation interest directly as a result of the intervention, in particular as a result of the natural care management scheme, because that involves significant sums of money. We are also aware that one of the difficulties that we face is that, as a result of the complexity of the existing system, there is a lack of public support. Although that is intangible, it represents a constraint in delivering the appropriate management.

What mechanisms do you have for measuring public support?

Jeff Watson:

We have undertaken one comprehensive survey of owners and occupiers. That has been revealing. Although it indicated a positive outcome across the board, it showed that there are areas of difficulty, which we are looking to address. People have indicated how they would like us to relate to them. As a result of that, we have, in anticipation of the bill, produced site management statements, which are a means of articulating the best management for the site. We are now looking to agree those statements with owners and occupiers. Rather than leave everything to chance and waiting for people to contact us, we are being more proactive.

Ms Wendy Alexander (Paisley North) (Lab):

My question is about the implications of part 3 of the bill, which concerns wildlife crime. The policy memorandum mentions the additional functions that you mention, including objectives to

"respond to public concern about the misuse and abuse of snares … enhance the protection available to birds at a European Union level … provide additional protection to the endangered capercaillie … improve the protection enjoyed by … whales, dolphins and porpoises"

and

"extend in a consistent manner the existing measures … to target employers who ‘cause or permit' wildlife offences."

Anybody who reads that would think that some additional resource will be required to fulfil all those functions, yet the assumption in the financial memorandum is that all of it will be integrated in the remit and work load of the existing wildlife liaison officers and be balanced out by the deterrent effect. Is there really no need to increase the number of wildlife crime officers or the number of people in the police service who are specially trained in those matters? The policy memorandum sets a pretty high bar for a new set of functions, so not to have set aside money for more officers or more training might seem slightly imprudent.

Alan Stewart:

It is down to each chief constable to decide whether to have more police officers specially trained. There are more than 1,000 officers in Tayside and there are considerably more than that in a force such as Strathclyde. All those officers have the knowledge, through their general training, to deal more or less with any type of crime that they encounter, with a wee bit of specialist help. In the Northern constabulary, for example, the wildlife crime officers seldom deal with such cases alone; they offer assistance to other officers who might have arrived on the scene first. It is not always the wildlife crime officers who deal with a particular offence. They offer assistance and advice to their colleagues and they know where to get other specialist help from, for example, RSPB Scotland, SNH or a museum.

Ms Alexander:

I take the point that it is for chief constables to allocate their resources appropriately. However, I am slightly uncomfortable with the fact—I will probably leave the issue on the table, because it may not be a matter for you—that the financial memorandum does not state that the police will need, within current resources, to find more time to train their officers, especially as the range of functions mentioned implies a slightly larger volume of work that will involve a slightly greater number of people.

As I said, the issue may be one for chief constables. However, although the financial memorandum suggests that the improved measures will be a deterrent—which will mean that there will not be resulting additional costs, either to the wildlife police or to the courts—I am not sure that that captures what will happen. That is a danger, but I simply leave the issue on the table.

The Convener:

On that note, I thank the witnesses for their written and oral evidence, which has been helpful to us in considering the financial memorandum. We need to deal with the bill quickly and get our report through the system to the Environment and Rural Development Committee.

We will now take evidence from Scottish Executive officials. I welcome Jane Dalgleish, who is the head of the wildlife and habitats unit; David Reid, who is the head of the finance division that is responsible for rural affairs; and Duncan Isles, who is the bill team manager. I invite the witnesses to make a short opening statement—if they do not wish to do so, we will proceed straight to questions.

Jane Dalgleish (Scottish Executive Environment and Rural Affairs Department):

We are happy to proceed straight to questions.

Will you pick up on the point that Wendy Alexander has just made?

Duncan Isles (Scottish Executive Environment and Rural Affairs Department):

We appreciate Wendy Alexander's point and I refer members to Alan Stewart's answer. Relatively minimal additional work will be required to produce significant additional results. As Alan Stewart said, the additional work that police officers will be asked to carry out will, in essence, be the work that they carry out at present but with mechanisms through which they can make a difference. For example, police officers are aware of incidents involving harassment of cetaceans, but at present they can do relatively little formally to address such situations. However, as a result of the bill, they will be able to take more concrete action.

As Alan Stewart mentioned in his written evidence, the Executive provides support for training in addition to the funding for training that normally flows to the Scottish Police College and to chief constables. For example, £15,000 has been provided for the training CD-ROM that Alan Stewart mentioned in his written evidence. Police officers can also tap into support through the partnership for action against wildlife crime, which the Executive assists.

Dr Murray:

The bill will introduce a new exceptional mechanism—the land management order. You have calculated the costs of those orders on the basis that they are expected to be extremely rare and be made only once every five years. Given that the mechanism will be new, on what basis did you estimate the costs and the frequency of use?

Duncan Isles:

The estimated costs are based on the experience of nature conservation orders. While LMOs are a new mechanism, we see them as being akin to the current NCOs. In particular, LMOs will have to be registered and a certain amount of administrative work will be involved. It is difficult to estimate how often LMOs will be required. Our estimate that there will be one LMO every five years balances our knowledge of NCOs, which, until now, have occurred on average once a year—that figure will drop as a result of the bill to perhaps once every two or three years—and the much more unlikely scenario of compulsory purchase orders, which, for the purposes of the financial memorandum, we estimated as occurring once every 10 years. We assumed that the frequency of LMOs will sit somewhere in between, at once every five years. We hope that they will in reality be required even less frequently than that, but that was our assumption for the purposes of the financial memorandum.

Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):

The written evidence from COSLA states:

"The Scottish Biodiversity Strategy underpins the entire Bill and its absence at this crucial consultation stage does create a difficulty for COSLA in assessing the Bill's full financial impact."

Will you comment on that point? I presume that you do not agree with it.

Jane Dalgleish:

That is a fair point from COSLA because, obviously, it would be helpful to have the Scottish biodiversity strategy in a more finalised form. However, COSLA is fully involved in the on-going consultation on the strategy. Under the strategy, the participants will sign up to activities in which they will be involved through the implementation plans that will accompany the strategy. The strategy will be used to develop work on biodiversity, but that will be done voluntarily—the bill will not compel organisations to do such work.

Jeremy Purvis:

We are tasked with considering the bill's financial memorandum. Is it fair to say that the strategy—which will, in effect, implement the bill—could have financial implications and that, because we are unable to scrutinise the strategy, we are in the difficult position of being expected to scrutinise either obligations or non-obligations on local authorities?

Jane Dalgleish:

It is probably not quite fair to say that because we do not see the strategy as implementing the bill; we see it as standing on its own but guiding public authorities in their implementation of the biodiversity duty under the bill. Public authorities have a choice: they must look at sections 1 and 2 and consider how to implement the biodiversity duty.

Jeremy Purvis:

Paragraph 389 in the financial memorandum states that respondents from local authorities to the consultation raised the question of resourcing for local projects, but that, because they did not give specific examples, it is difficult to quantify the cost involved. Will you give us a little more information about that? What kind of responses did you get from local authorities on the resources that they felt they needed to implement such projects?

Jane Dalgleish:

The authorities were keen to have more stable funding for local biodiversity officers, although SNH has been improving its contribution to that for some years. The need for central co-ordination of local work on biodiversity was also raised. We are interested in that issue and want to discuss it in more detail with COSLA, although it does not arise as a direct consequence of the bill. Co-ordination might help to promote the implementation of the bill, but it is not an essential part of the implementation.

Jeremy Purvis:

Paragraph 388 of the explanatory notes states:

"The biodiversity duty is expected to be cost-neutral for local authorities".

Are you saying that the duty will not be cost neutral, but that the money to support the local authorities is expected to come from SNH?

Jane Dalgleish:

The money already comes from SNH to support them. I think that, in its evidence to the Environment and Rural Development Committee, COSLA said that it expected the bill to be broadly cost neutral. That was the picture that we reflected. We hope that the bill will enshrine current good practice. In an awful lot of local authorities, there are local biodiversity officers who do terrific work. The bill offers a framework for, supports and encourages that work, which we hope will continue.

A recent RSPB report makes the point that a recent study shows that the overall health of many SSSIs is declining and that less than half the sites are in good condition. Will the budgeted costs be sufficient to remedy that?

Duncan Isles:

You heard Jeff Watson talk about SNH's spending on natural care being increased. Over the next couple of years, something in the order of £16 million will be spent on natural care programmes, which encourage land managers—the people responsible for SSSIs—not only to keep sites at the existing standard but to do positive things beyond that. As we discussed in relation to the financial memorandum, the bill also contains a compensatory management component: where, for one reason or another, changes need to be made to something that is being done on a site and those changes affect the established management practice, money will be provided. The existing system and the one that the bill will bring into effect contain quite a lot of money that will allow positive action to be taken.

Are you aware of the criteria that the RSPB applied when reaching its conclusions about many of the SSSIs?

Duncan Isles:

I am afraid that I am not able to answer that. It is more a question for SNH colleagues to respond to.

I will leave you to pass it on to them.

The Convener:

I thank the witnesses for giving evidence. I do not think that we were going to fire any questions at them by e-mail, but we will have to reach a rapid conclusion in our consideration of the financial memorandum.

Do committee members wish to highlight any key issues that they wish to be incorporated into the draft report on the financial memorandum? We will have to produce it to a tighter time scale than we usually do, but I give members a brief opportunity to highlight anything.

Jeremy Purvis:

We have difficulty in scrutinising when we are considering a bill that it is part of an overall strategy or when other work is being done that is crucial to the implementation of a bill that we are considering. Such work inevitably has an impact on the financial memorandum, which we are unable to scrutinise, especially when a large strategy is already being implemented, as is the case with the Nature Conservation (Scotland) Bill. It would have been better if the financial memorandum could have contained more information about the strategy's progress. I expect that we will hear the same about the Criminal Procedure (Amendment) (Scotland) Bill.

That is a fair general point but, as you know, we are in discussion with the Executive about the shape and format of financial memoranda. It would be fair to admit your point as a general issue.

Ms Alexander:

We cannot assume that all chief constables care about wildlife crime and will do the right thing. Therefore, we should flag up the fact that we cannot believe that the bill will be cost neutral if all the functions in it are pursued. That should be noted.

My other point links to what Jeremy Purvis said, and I am happy to submit a couple of paragraphs to the clerks on it. The financial memorandum is accurate as far as it goes in establishing the costs that are associated with the precise measures in the bill. However, understandably, it does not get at the implications of the culture change that the bill tries to bring about, away from compensating for bad management towards proactively rewarding good management. That is obviously about the speed of resources that come from the common agricultural policy and about moving to more agri-environmental measures. In fairness to the bill team, those are not really appropriate for the bill, but they are important for the committee's scrutiny of the issues. Perhaps I could suggest to the clerks a couple of questions that the subject committees could use to probe the bill team further.

I am content with that.

Mr Brocklebank:

I do not disagree totally with Wendy Alexander's first point, but my experience suggests that the police are extremely good at allocating resources—particularly in the outlying parts of Scotland—where there is evidence of wild birds' nests being disturbed or rare species' eggs being seized. My experience suggests that they make the personnel available and do not necessarily have to wait until a wildlife specialist comes from Tayside or Inverness. I have been involved in a number of cases in which fairly senior plain-clothes police in the islands have dealt with such matters and have managed to cope with them extremely effectively. Their biggest complaint has always been that they do not have the powers—which, I hope, the bill will give them.

The Convener:

That is useful. Another issue is that we would not want the Finance Committee to be viewed as encouraging witnesses or anyone else to make bids for additional resources that are attached to bills. The committee has been hard on that with previous groups of witnesses, so a balance needs to be struck.