Assessing the Sustainable Aquaculture Innovation Cluster (SAIC): Consumer Duty impact assessment

Consumer Duty Impact Assessment - Assessing the Sustainable Aquaculture Innovation Cluster Business case

Title of the policy/proposal/decision

Sustainable Aquaculture Innovation Cluster (SAIC) Business case

This is a consumer duty impact assessment to accompany the Scottish Government’s Sustainable Aquaculture and innovation Cluster (SAIC) Business case. The proposal is to establish SAIC as an independent entity to support innovation and investment in the aquaculture sector through funding and coordination of activity between industry and academia. The objective is to improve productivity, sustainability and long-term sector performance.

Although SAIC will not exercise regulatory enforcement powers, its role in shaping access to finance and partnerships has the potential to influence market behaviour and competitive conditions.

Directorate/Division/Team

Marine Directorate, Marine Economy and Communities Portfolio, Aquaculture Vision Team

Planning

In developing the business case to consider the options for establishing SAIC, officials considered at an early stage the potential implications for consumers recognising that, although the new SAIC will not interact directly with consumers, its activities may indirectly affect consumers through impacts on the aquaculture sector.

Consumers are not direct recipients of SAIC services. However, indirect impacts are expected including:

• Improved quality and availability of aquaculture products
• Enhanced environmental performance of production
• Potential long-term price stability through productivity improvements.

Is it likely that harm will be experienced by consumers?

No significant direct harm has been identified. Potential risks include:

• Concentration of innovation benefits among larger firms
• Limited pass-through of productivity gains to consumers.

These risks are considered low.

The Consumer Duty was therefore applied proportionately at the strategic design stage.

Evidence Gathering

Evidence has been drawn from:

• Existing analysis of the work of the original SAIC
• Stakeholder engagement with industry, academia and public bodies

The evidence indicates that innovation and investment support in aquaculture is likely to deliver indirect consumer benefits as mentioned in the section above.

Assessment and Improvement of Proposal

The proposal has been assessed for potential impacts on consumers, including risks of unintended harm such as:

• Concentration of funding among larger firms,
• Limited pass-through of benefits to consumers
• Uneven geographic distribution of impacts

To address these risks, it is recommended that the new SAIC follows the following:

• Transparent and inclusive funding processes
• Monitoring of competition and market concentration
• Consideration of geographic balance in funding decisions
• Periodic review of consumer-relevant outcomes.

These measures are intended to improve the extent to which consumer outcomes are considered and to reduce the likelihood of harm.

Decision

Having applied the Consumer Duty, officials consider the establishing of the new SAIC as an independent entity is likely to have a net positive indirect impact on consumers, and that potential risks are low with proportionate mitigations are in place. The business case therefore meets the requirements of the Consumer Act 2020.

SCS Sign Off

I am satisfied that the impact on consumers as required by the Consumer Scotland Act 2020 in completion of the Consumer Duty Impact Assessment has been met.

Name: Malcolm Pentland

Job title: Deputy Director, Marine Economy and Communities

Date: 13 February 2026

Ministerial Sign Off

I am satisfied that officials have considered the impact on consumers as required by the Consumer Scotland Act 2020 in completion of the Consumer Duty Impact Assessment.

Minister's name: Mairi Gougeon

Minister's title: Cabinet Secretary for Rural Affairs, Land Reform & Islands

Date: 5/3/2026

Scottish Government Contact point: Julien Lake, Julien.lake@gov.scot

Publication

Date published to SG website: 23/3/2026

Monitoring and Review

The impact of the new SAIC on consumers will be monitored on an ongoing basis through the organisation’s governance and performance management arrangements. As the new SAIC will not directly engage with consumers, monitoring will focus on indirect consumer outcomes.