Fish farm consenting pre-application pilots: independent evaluation report

1. Introduction

1.1 Background Context

Finfish farming forms a significant part of the Scottish economy, with Scottish salmon the UK’s biggest food export (Scottish Government, 2024a). According to industry association - Salmon Scotland – the farmed Atlantic salmon sector contributes over £760 million to the Scottish economy each year (Salmon Scotland, 2024). Scotland’s major salmon producers directly employ more than 2,200 people (Salmon Scotland 2023, Scot Gov 2024a). In addition, local supply chains for Scottish finfish farming support another 10,000 jobs over 3,600 companies (Salmon Scotland, 2024; Scot Gov, 2024b). From 2013 to 2022, Scottish Aquaculture Production Surveys indicate the long-term trend in Scottish aquaculture employment increased by 14% (Scot Gov 2024b). As a key component of the blue economy, sustainable aquaculture practices are essential for conservation of marine biodiversity, mitigating environmental risks, and supporting the livelihoods of coastal communities. With increasing global demand for seafood and mounting environmental concerns, maintaining a balance between industry growth and environmental stewardship is paramount.

The industry continues to evolve and advances in technology means that production units are getting larger and moving further offshore into deeper waters. However, progress in the industry has been reported to face challenges due to aspects of the regulatory system that contribute to variable or lengthy consenting timescales (Griggs, 2022). The Independent Review of the Aquaculture Regulatory Process in Scotland (Griggs, 2022) observed that the current system does not always function as effectively as it might, with scope for improving coordination and streamlining process across regulatory bodies. It was specifically noted in Griggs (2002) that “[the consenting process] has many regulators and the process is sequential but not linear so you can start anywhere, with any of the regulators, which in itself leads to inconsistency and process delays.”

The consenting process, which governs the installation and operation of aquaculture facilities, encompasses various permissions and stages, including pre-application consultation, environmental assessments, and formal application processes. A robust and efficient consenting system ensures regulatory compliance, facilitates industry innovation, and promotes meaningful stakeholder engagement. Following the independent review of aquaculture regulatory processes in Scotland (Griggs, 2022) a Consenting Task Group (CTG) was established to inform improvements to the current consenting regime, reporting to Scottish Ministers and the Scottish Aquaculture Council (SAC). The CTG provides a platform through which regulators, industry, and government can collaborate to realise improvements in efficiency and outcomes for all concerned across the consenting landscape (Scottish Government, 2023). To action the recommendations from Griggs (2022), the 2023/24 Programme for Government committed to ‘pilot a new aquaculture consenting process in two local authority areas to help deliver a more streamlined regime across Scotland’ (Scottish Government, 2023). Scottish Government are actively working towards a streamlined and fit-for-purpose consenting regime that is acknowledged to be fundamental to fostering the sustainable growth of Scotland's finfish farming sector. The CTG is supported by an Advisory Group (CTG-AG), which brings together key stakeholders to provide guidance and expertise.

Against this backdrop, a proposed new management process for pre-application activities within the existing aquaculture consenting process has been developed collaboratively by the CTG and CTG Advisory Group and trialed through four pilot sites in Shetland Council and the Highland Council areas. To ensure successful understanding of the pilot sites and what they achieve from the perspective of different stakeholder groups, the Scottish Ministers required an independent evaluator to help inform further stages of the project and ensure evidence-based interventions and improvements to the consenting process. Aquatera Ltd. has undertaken an independent evaluation of this management process to evaluate the effectiveness of the proposed new system, by gathering feedback from each of the stakeholder groups across the consenting landscape (developers, regulators, advisory bodies and other interested parties) to help deliver a more streamlined consenting regime across Scotland. These pilots sought to address the challenges head-on by trialing a new management process. By streamlining pre-application activities, improving efficiencies in processes , and fostering closer cooperation between industry stakeholders and regulatory bodies, the pilots aimed to deliver a more efficient, consistent, predictable, and effective consenting regime.

In evaluating these pilot sites, the proposed new four stage pre application process has been compared with the current pre-application process with the aim of identifying evidence-based interventions and improvements that will aid in streamlining the consenting process by minimising delays and improving communication between parties. Furthermore, the evaluation endeavoured to assess the effectiveness of the pre application process utilised at the pilot sites in achieving their stated objectives, gathering feedback from participants, and identifying areas for improvement. Through comprehensive data collection, analysis, and stakeholder engagement, the evaluation aimed to provide valuable insights into the strengths, weaknesses, and opportunities of the proposed pre application process.

By promoting evidence-based decision-making, and continuous improvement, is it hoped that this evaluation will play a crucial role in informing future policy interventions, regulatory reforms, and industry best practices through improvements to the pre application process. Ultimately, the goal is to ensure that Scotland's aquaculture industry continues to thrive as a sustainable and responsible sector, contributing to the nation's economic prosperity, environmental stewardship, and social well-being for generations to come.

1.1.1 CTG Outcomes

The below list is the four agreed outcomes for the CTG.

1. Delays in the consenting process are minimised by removing unnecessary downtime, duplication, and non- value-added steps. Improved co-ordination between regulators to facilitate communication and streamline the consenting process.

2. The consenting process provides developers with an early understanding of potential constraints, leading to a reduced time to achieve all consents and ensures developers know and understand information required to support a regulatory decision.

3. The consenting process includes simple, clear mechanisms for informing and facilitating third party engagement. Improved transparency and community engagement by ensuring an effective and meaningful opportunity for communities, consultees, and other interest groups.

4. Identification of any remaining issues or areas for further exploration within a continuous improvement project.

Alongside the CTG outcomes, are the core ‘Pilot process principles’. These are as follows:

1. A request to one regulator is treated as a request to all;

2. Pre-application advice should be properly and efficiently targeted from the start;

3. Capturing stakeholder knowledge of relevant material considerations early in the development process can avoid later delays and improve relationships; and

4. Information requirements should be targeted and clear to avoid unnecessary work.

1.2 Pre application pilot process

There were four pilot sites that used the new pre-application process and were evaluated as part of this project.

The pilots were designed with the intention of achieving the CTG outcomes by developing a pre-application process which would replace the previous working arrangements for pre-application where applicants would seek advice from Local Authority and SEPA independently of each other and in many cases seeking that advice sequentially

Through the pilot pre application process, a four stage process was put in place designed to work towards the outcomes and principles stated above.

The four stages of the process are as follows*:

• Stage one: Request of joint report for pre-application advice
• Stage two: Provision of joint report for pre-application advice
• Stage three: Community and third-party engagement
• Stage four: Screening/ Scoping Opinion Request and Issue of a Joint Scoping Opinion Report and Advice

*Note that Stages one and two have subsequently been combined into one stage.

The pilot pre application process aimed to deliver the following outcomes:

• A single case flow process, with dedicated lead case officers, which is coordinated amongst regulators: A request to one regulator is a request to all, improved communication between regulators
• A pre-application process which handles SEPA and Local Authority activities in parallel, rather than sequentially, and which clearly identifies constraints and sets out requirements to support the application process: reduce the time to achieve all consents, pre-application advice should be efficiently targeted from the start, developers know and understand information required to support a regulatory decision.
• A pre application process where community engagement and third-party processes being developed and tested, are transparent (publication and engagement on documents), with review and consideration of those issues is considered jointly by the local authority and SEPA: effective and transparent community engagement.

1.3 Aims and objectives

The aim of the project was to evaluate the effectiveness of the proposed new pre-application process through engagement with stakeholders involved in the pilot sites in Highland and Shetland Council areas. In doing so, the current pre-application consenting process could be compared with the proposed new process. In achieving this aim, the following objectives were targeted.

• Engage with the CTG to fully understand the background and context of the proposed improvements to the pre-application process;
• Collect evidence through quantitative and qualitative data collection exercises to support Scottish Ministers in making evidence-based interventions and improvements to the consenting process;
• Focus data collection efforts on resource requirements, financial cost, timescales and perceived or identified barriers to delivery;
• Determine whether the CTG outcomes have been met;
• Consider the impacts of the pilots in the context of downstream application activities;
• Make recommendations on areas that could be improved including how those improvements could be achieved and by whom; and
• Compile results of independent evaluation and recommendations into single final report and oral presentation.