Scottish Government

We will implement Land Management Contracts to deliver reformed Common Agricultural Policy ( CAP) support which takes account of the diversity of Scottish agriculture and its economic, social and environmental impact.

On track. Land Management Contracts ( LMCs) consist of three tiers. Tiers 1 and 2 were introduced in 2005 through the Single Farm Payment and the LMC Menu Scheme respectively. A public consultation in 2006 on the 2007-13 Scotland Rural Development Programme has fed into the identification of measures and the design of a delivery model for Tier 3. Tier 3 will be introduced in 2007, most likely in the autumn. This depends on when the EC regulations are finalised, and when approval can be obtained and the necessary regulations made.

We will implement the Organic Action Plan to develop the infrastructure needed to increase Scotland's share of the organic food market and increase the proportion of organic food available in Scotland.

Achieved. Scottish farmers now produce enough to meet the 70% target of the market for indigenous Scottish organic produce and increased actual market penetration level from 35% to 50% between 2003 and 2005, while still succeeding in the wider UK and international markets. The 2006 Organic Aid Scheme offered funding for 161 applications (104 conversions and 57 maintenance) at a 5 year cost of over £11 million, double the amount committed last year.

We will increase the finance available for farmers wishing to convert to organic farming.

Achieved. Legislation to change the Organic Aid Scheme came into effect in May 2004. Further legislation revising payment rates came into force in December 2005, helping to support farmers who have completed their organic conversion and wish to maintain their organic status. This provides increased rates for all successful applications from 2003 to 2006. Funding allocated to the 2006 Organic Aid Scheme round exceeded £11 million, double the amount allocated last year.

We will implement the reformed Common Fisheries Policy ( CFP) founded on relative stability, maintenance of 6 and 12-mile limits, the Hague Preference and the Shetland Box and promote conservation measures based on sound, independent science and the involvement of industry stakeholders through CFP regional advisory councils. We will work at UK level to secure a sustainable future for the industry.

We will support the growth of an aquaculture industry in salmon, other fin-fish and shellfish that is sustainable, diverse and competitive.

On track. A Bill covering Aquaculture and Freshwater fisheries has been introduced into the Parliament which will introduce light touch controls which fit with industry's own code of practice. The Bill is expected to complete Parliamentary process by March 2007.

We will reduce the number of bodies involved in regulating and controlling the aquaculture industry.

On track. A series of measures undertaken will help to improve the regulatory process facing the aquaculture industry, leading to a streamlined regulatory framework.

We are committed to sustainable local management and control of the fishing resource in inshore waters. We will set in place an urgent review of the management of all fisheries within the 12-mile coastal zone with a view to delegating responsibility to local stakeholders, if necessary through reform of the Inshore Fisheries Act and other regulatory measures for inshore fisheries.

Achieved. The strategic review of inshore fisheries management has been carried out. A strategic framework for inshore fisheries was launched in March 2006, providing for the establishment of a new inshore fisheries management regime with clear objectives and stakeholder involvement.

We will work with the industry to ensure that more Scottish produce is processed in Scotland.

Delayed. Since 2001 we have made four rounds of awards each year to food processors, which will result in over £290 million new investment in the food industry by the end of March 2007.

We will continue to take every opportunity to expand the export potential of Scottish produce through the marketing opportunities of 'Scotland the Brand'.

On track. Scottish Development International's Food Industries Team continues to work closely with key sector bodies and trade associations (such as Food From Britain, Quality Meat Scotland, Seafood Scotland and the British Potato Council) to develop targeted business opportunities overseas for Scottish companies. Although no longer operating now, Scotland the Brand helped companies to promote high quality Scottish products and services for over nine years.

We will seek to increase forestry and primary wood processing production over the next 15 years.

Achieved and requires sustaining. The increase in timber production is rising in line with forecasts and sawn wood production from Scottish sawmills has increased by 8% over the last two years. Timber and business development are two key themes of the revised Scottish Forestry Strategy published in October 2006, which provides a roadmap for maximising the contribution of Scotland's wood resources to economic development and renewable energy production. We have also approved the first awards under the Strategic Timber Transport Scheme to reduce the impact of bringing timber to the market on communities and the environment.

We will promote diversification in the use of forests and of timber; a greater use of native species; and continue to encourage the use of forest products in buildings.

Achieved and requires sustaining. Over the past five years almost half the grant aided planting has been of native species, and great advances are being made in encouraging people to use more wood, for example, in affordable rural housing. The role of Scottish forests in mitigating climate change has been highlighted in the Scottish Climate Change Programme with an ambitious forest related carbon savings target. Climate Change and biodiversity are two key themes of the revised Scottish Forestry Strategy published in October 2006.

We will provide practical support for innovation and enterprise in our rural communities. We will promote better collaboration between agencies with expertise in rural development, including the Scottish Agricultural College and the Enterprise Networks, and examine the longer term case for the establishment of a Rural Development Institute combining their functions and responsibilities.

Achieved and requires sustaining. Support for innovation is a priority in the refreshed A Smart, Successful Scotland ( SSS), which also highlights partnership working as vital to delivery. Scottish Enterprise and Highlands and Islands Enterprise collaborate effectively with rural development agencies across a wide spectrum of activities. In view of the ongoing business transformation programme in the Scottish Agricultural College, and the recent refresh of SSS, Ministers decided not to examine the longer term case for a Rural Development Institute at this time.

We will encourage local authorities to protect and develop rural services by utilising their community planning powers.

On track. The Executive has been working with an advisory group of representatives from key delivery agencies and rural communities to agree rural areas to be targeted, consult with local communities to identify the key services to be improved, and agree with community planning partnerships specific targets for improvements to accessibility and quality.

We will ensure that rural Community Planning Partnerships ( CPPs) work with and report to their local communities. We will encourage them to work together to develop best practice and share ideas on rural development.

On track. We are engaged in a range of activity aimed at encouraging our rural communities to contribute directly to local decision-making. Our sponsorship of the Rural Community Gateway website promotes the sharing of information, views and experiences. Our funding of community groups encourages capacity building amongst local delivery agents and the voluntary sector. Tackling rural deprivation as part of our Closing the Opportunity Gap initiative has involved close partnership working between eight rural CPPs and the Executive to ensure delivery by 2008 of agreed improvements to the quality of and access to locally defined services.

We will continue to develop, and keep under review, a scheme to assist users of water supplies not connected to the public system to bring those supplies up to modern standards and to ensure that rural consumers are not disadvantaged.

Achieved. New Private Water Supplies Regulations came into force in July 2006 ensuring the provision of clean and wholesome drinking water, delivering significant health benefits to those using such supplies - most of whom are located in rural areas. A grant Scheme to provide financial assistance to help users bring supplies up to modern standards also came into force at that time.

We will implement the Water Environment and Water Services Act to ensure the sustainable management and integration of all policies affecting Scotland's water environment, including aquaculture, planning, land management, flood prevention and environmental policies.

On track. In April 2005 SEPA received an extra £2.8 million funding to allow them to carry out the extra duties associated with implementing the Directive. The Controlled Activities Regulations came into effect in April 2006, providing a holistic set of controls to protect the water environment. Stakeholders continue to be involved in policy development as we move into the next phase in implementing - River Basin Management Planning.

We will consult on the best strategy for protecting and enhancing all of Scotland's coastline, building on existing policies and including the options of establishing a national coastline park and marine national parks, and consideration of current management and rental arrangements for the sea-bed.

On track. Following consultation, Seas the opportunity: a Strategy for the Long Term Sustainability of Scotland's Coasts and Seas was published in September 2005. As part of a wider consultation on developing a strategic framework for Scotland's marine environment, we consulted broadly on the options for a national coastline park and marine national parks. We continue to engage with the Crown Office on current management and rental arrangements for the sea-bed.

We will develop the core path network to promote and provide access to the countryside and mountain areas throughout Scotland.

On track. Part one of the Land Reform (Scotland) Act 2003 came into force in February 2005. It requires local authorities to draw up plans for a system of core paths not later than three years after the legislation comes into effect. Local Access Forums have been established in all access authority areas; and informal consultation has been initiated in most authorities' areas on core path proposals.

We will maintain our protection for the rare bird species found in Scotland through our moorland management schemes.

Achieved and requires sustaining. Scottish Natural Heritage spending on the 'Natural Care' positive management initiative is expected to rise from £4.8 million in 2003-04 to £7.6 million per annum in 2008-09. Management schemes have been introduced in, amongst other areas, Skye, Mull and Orkney. Moorland Management Schemes are now available over 75% (by area) of the Special Protection Areas classified for moorland breeding birds.

We will seek reform of the Common Agricultural Policy to secure improvements for Scotland and to shift subsidies away from merely supporting production to those that recognise the economic, social and environmental contribution agriculture makes to rural development.

Achieved. An announcement on how CAP Reform would be implemented in Scotland was made in February 2004. The changes are reflected in a number of the aims set out in A Forward Strategy for Scottish Agriculture: Next Steps, such as developing a more integrated food supply chain, responsive to market demand.

We will encourage more sustainable agricultural activity on 13,500 farm businesses in Scotland's remote hills.

Achieved and requires sustaining. This commitment is linked to ERAD Target 6 of Spending Review 2004 'Maintain at least 95% of agricultural land in the Scottish LFA in productive use over the Spending Review period, except where that land is converted to other sustainable uses.' This measure - currently being met - is considered to be a more accurate indicator of activity since business amalgamations could reduce the overall number of farm businesses.

We will implement a Crofting Reform Bill, while supporting the retention of a grant scheme for crofting counties.

On track. The Crofting Reform etc (Scotland) Bill is currently before Parliament, and is due to complete its Parliamentary stages in early 2007.

We will rigorously apply the precautionary principle in our approach to the planting of GM crops. We will assess the results of the GM farm scale trials ensuring that there are opportunities for peer review and assessment by others including environmental organisations. Until this process is concluded, we will not permit further GM trials or commercial growing of GM crops.

Achieved and requires sustaining. The Executive's approach to GM crops is both cautious and precautionary. We will be consulting on proposed measures for the coexistence of GM and non- GM crops. Coexistence measures seek to manage the way GM crops might be grown, providing a level of control for non- GM conventional farmers that they would not otherwise have had. We are committed to the case-by-case risk assessment of individual GMOs. Approval is not given where there is any substantiated evidence of an increased risk to human health or the environment. Results of farm scale trials have been published, with an opportunity for stakeholders to comment.

We will introduce a Protection of Animals Bill.

Achieved. The Animal Health and Welfare (Scotland) Act 2006 was passed in July 2006. It represents a significant step toward the vision of improved animal health and welfare standards set out in the Animal Health and Welfare Strategy published by the Executive in 2004.

We will retain the current practice of widely dispersing Government Veterinary Centres and improve animal health and surveillance services.

Achieved and requires sustaining. Alongside better use of existing surveillance mechanisms, infrastructure provided by the Scottish Agricultural College to the Executive has been used to support EU wide surveillance for avian influenza, and a surveillance database has been funded by the Department for Environment and Rural Affairs on a UK basis. There are no current plans to change the regional spread of centres.

We will continue to promote access for anglers to watercourses and the removal of prohibitive restrictions; promote the local management of watercourses and a proper balance between exploitation and conservation of freshwater species; and seek enhanced access whenever public investment improves fisheries.

On track. A Freshwater Fisheries Forum and Steering Group comprising key stakeholders has been examining these issues. The Aquaculture and Fisheries (Scotland) Bill, presented to the Parliament in June 2006, proposes a number of changes to the application process and to Ministers' powers to vary Protection Orders. The Forum continues to examine ways in which to develop integrated fisheries management plans.

We will legislate to permit enforcement of regulating orders within the range of activities of the SFPA.

Achieved. This commitment was achieved by provisions contained in the Police, Public Order and Criminal Justice (Scotland) Act 2006 which came into force in September 2006.

We will continue to support research into fisheries including the development of centres of excellence and innovation.

Achieved. The Executive funds Fisheries Research Services ( FRS) to provide advice and undertake fisheries research. In 2004 £4 million was allocated to replace an FRS research vessel and £9 million for a new fish veterinary and aquarium development in Aberdeen and good progress has been made with both projects. We have also drawn in other funders to commissioning of research. The Scottish Aquaculture Research Forum was formed in 2004 to jointly fund research, including representatives from the aquaculture industry, government organisations, wild fish groups and environmental NGOs. FRS has established partnerships with academics in Aberdeen and Strathclyde Universities.

We will continue to support the enforcement of food safety standards and high quality in the food chain through improved farm standards, rigorous monitoring of food quality control regimes and more effective restaurant and food premises inspection.

On track. Scottish Ministers are advised on all food safety and standards issues by the Food Standards Agency ( FSA). The FSA has been working with local authorities to help food businesses introduce Hazard Analysis and Critical Control Point ( HACCP) systems to drive up food hygiene standards. The target of 9,000 businesses has been exceeded, and over 45,000 training hours have been received by businesses.

We will ensure that the Animal Waste Directive is effectively implemented.

Achieved and requires sustaining. The Directive was implemented in Scotland by The Animal-By-Products (Scotland) Regulations 2003, which enhance the protection of public and animal health and the environment, and meet our EU obligations. To aid implementation we launched the National Fallen Stock Collection Service in November 2004.

We will encourage localised food distribution systems involving more local processing of produce.

Achieved and requires sustaining. The Executive is working with supermarkets, procurers and the food service sector. The Processing and Marketing Grant scheme has been used to encourage progress, and the majority of major retailers now have local sourcing policies. We have encouraged procurers to source locally via guidance presented to Association of Public Service Excellence.

We will support local marketing schemes, with clear accreditation and labelling of local produce to increase consumers' power to identify and choose Scottish produce.

Achieved and requires sustaining. Support has been given to various local initiatives, for example, Orkney Producers and Taste of Arran. Indirect support continues to be given to farmers markets via the Scottish Agricultural Organisation Society. The Food Standards Agency has undertaken a country of origin survey to investigate whether best practice guidance is being followed. As a result revision of the guidance is currently underway.

We will work with supermarkets and farming representatives to encourage greater sourcing and clear labelling of local food items and food produced by organic and sustainable farming methods such as LEAF (Linking Environment and Farming).

Achieved and requires sustaining. The Executive has been working closely with major retailers to encourage them to source and label quality Scottish produce. The majority now have local sourcing policies. Organic produce is easily recognisable in retail stores. Voluntary regional labelling can be used and guidance is provided on this by Food Standards Agency.

We will support regional marketing co-operatives where this is necessary to enhance the marketing strength of food producers.

Achieved and requires sustaining. We have continued to provide assistance to the Scottish Agricultural Organisation Society, the central body for co-operative development and farmer-controlled businesses in Scotland. Support is also given to allow key marketing personnel to take forward local marketing initiatives such as Taste of Arran.