Sea of Hebrides Marine Protected Area: business and regulatory impact assessment

Consultation

Within Government

Consultation has been undertaken with policy colleagues within Marine Scotland, including aquaculture, nature conservation, marine renewables, fisheries and freshwater fisheries.

Public Consultation

A stakeholder workshop took place during the development of the underpinning Sustainability Appraisal.

A public consultation ran from 07 June 2019 to 30 August 2019 and included 14 local information events. Consultation responses and feedback from events have been used to finalise the proposals. No changes have been made to the Sea of the Hebrides proposal as a result of responses received.

Options

Option 1 - Do nothing

Option 1 is the 'Do nothing' option; this is the baseline scenario. Under this option, there is no designation at the Sea of the Hebrides.

Option 2: Designate site as a Marine Protected Area

Option 2 involves the formal designation of the Sea of the Hebrides. Designation would provide recognition and protection to the natural features of the site while also contributing to the national and international MPA networks.

Sectors and groups affected

The following activities have been identified as present (or possibly present in the future) within the Sea of the Hebrides pMPA and potentially interact with one or more of the features:

• Finfish Aquaculture
• Shellfish Aquaculture
• Coastal Protection
• Commercial Fisheries
• Ports and Harbours
• Recreational Boating
• Commercial Shipping
• Telecommunication Cables

Affected sectors may be impacted to a greater or lesser degree by designation depending on which scenario is pursued and which management option is preferred. While the above sectors are all potentially operational within the site, not all will necessarily be impacted by designation and management measures.

Benefits

Option 1: Do nothing

No additional benefits are expected to arise from this policy option.

Option 2: Designate site as a Marine Protected Area

Designation will help to conserve the range of biodiversity in Scottish waters. It will complement other types of designation and provide an essential contribution to establishing an ecologically coherent network of MPAs. This would also safeguard the ecosystem services and benefits provided by the marine environment

Appropriate management will reduce the risk that the extent, population, structure, natural environmental quality and processes of features protected will decrease or degrade over time.

Contribution to an Ecologically Coherent MPA network

Scotland's seas support a huge diversity of marine life and habitats, with around 6,500 species of plants and animals, with plenty more to be found in the undiscovered depths of the north and west of Scotland. Our seas account for 61% of UK waters and remain at the forefront of our food and energy needs, through fishing, aquaculture, oil and gas, and new industries such as renewables, as well as recreation activities and ecotourism. It is likely that an MPA network will demonstrate beneficial effects greater than the sum of the benefits from the individual areas.

MPA designation will help to conserve the range of biodiversity in the Sea of the Hebrides and for Scotland as a whole, and will contribute to establishing an ecologically coherent network of marine protected areas.

Ecosystem services benefits

Ecosystems are very complex, and it is thought that the more complex an ecosystem is the more resilient it is to change. Therefore, if it is damaged or if a species or habitat is removed from that ecosystem, the chances of survival for those services reduce as the ecosystem becomes weaker. However, by conserving or allowing the species and habitats that make up that ecosystem to recover, we can be more confident of the continuation of the long-term benefits the marine environment provides.

Non-use value of the natural environment is the benefit people get simply from being aware of a diverse and sustainable marine environment even if they do not themselves 'use it'. We take for granted many of the things we read about or watch, such as bright colourful fish, reefs and strange shaped deep sea curiosities, to lose them would be a loss to future generations that will not be able to experience them. Due to the scientific uncertainty involved it is challenging to put a true value on this, but the high quality experience and increasing knowledge of Scotland's seas can be better preserved through measures such as MPAs. It is expected that non-use value will be attained as a result of designation both from the knowledge that the features are receiving adequate protection along with the wider conservation objectives that designation supports.

In the case of the Sea of the Hebrides, it is estimated that effective management of protected features may provide wider benefits over and above these non-use values society places on a healthy and productive marine environment.

Annex A summarises the ecosystem benefits that can be derived from designation of the Sea of the Hebrides.

Summary of Benefits

While it may not be possible with current levels of research to monetise benefits with a satisfactory degree of rigour, it is clear that many of the benefits relate to aspects of our lives that we take for granted and for which it is good practice and common sense to maintain through protection measures. These benefits include use values, such as recreational use of the marine environment, as well as non-use values, such as the value that people place on simply knowing that something exists, even if they will never see it or use it.

Kenter et al. examined the value of creating a network of marine protected areas in the UK. From the study it is estimated that, in 2019 prices, the total economic valuation of the Sea of the Hebrides site designation is £5.61 million, rising to £6.36 million when designation is accompanied by management measures^[1].

Treating marine protected areas as a collection of individual and separate features providing separate ecosystem services potentially ignores any network effects that could occur from a set of MPAs. A number of adjacent marine reserves may demonstrate network effects, i.e. the benefit from the networks may be greater (or less) than the sum of the benefits from the individual MPAs. Kenter et al. estimated total value of non-use benefits of designating all four sites as £28 million in 2019 prices.

Costs

Option 1: Do nothing

This option is not predicted to create any additional costs to the sectors and groups outlined above. However, it should be noted that the societal cost of not designating could be both large and irreversible relative to the current condition of the marine environment. The absence of management measures to conserve the identified features may produce future economic and social costs^[2] in terms of increased marine habitat and biodiversity degradation. The option to not designate holds the potential to undermine the overall ecological coherence of the Scottish MPA Network.

Option 2: Designate site as a Marine Protected Area

Costs have been evaluated based on the implementation of potential management measures. Where feasible costs have been quantified, where this has not been possible costs are stated qualitatively. All quantified costs have been discounted in line with HM Treasury guidance using a discount rate of 3.5% to reflect preference for current consumption over future consumption.

Finfish aquaculture

There are currently 4 finfish aquaculture sites within the Sea of the Hebrides pMPA, and a further 2 finfish sites in a 1 km buffer around the site. Of these sites, five are within the Inner Hebrides and the Minches SAC. It is expected that finfish aquaculture in the Sea of the Hebrides pMPA will expand over the assessment period, and an assumption has been used below that there will be 9 applications for new or expanding sites every 10 years in Sea of the Hebrides. Of the sites in the Sea of the Hebrides pMPA it is assumed that all will currently use acoustic deterrent devices (ADDs) devices, intended to reduce predation of stocks by seals.

It is possible that there may be costs incurred as a result of potential future development in the area, with associated impacts on project delays, on consenting and on wider investment opportunities. Possible social impacts may flow from these economic costs; there may be reduced future employment opportunities if additional costs are significant and render development projects economically unviable or if delays arising from designation impact on potential investment opportunities. However, at this stage it is not possible to quantify these potential future impacts.

Economic Impacts arising from Designation of the site as an MPA (2019 to 2038)

		Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts		There will be 9 applications every 10 years in SOH (7 of which also overlap Inner Hebrides and the Minches SAC). Additional assessment to support new applications will cost £5,600 per assessment. Development of and compliance with vessel management plan will cost £1,000 per new application.	There will be 9 applications every 10 years in SOH (7 of which also overlap Inner Hebrides and the Minches SAC). Additional assessment to support new applications will cost £5,600 per assessment. The additional cost of installing 50% cetacean friendly ADD is £11,500 per site. Development of and compliance with vessel management plan will cost £1,000 per new application.	There will be 9 applications every 10 years in SOH (7 of which also overlap Inner Hebrides and the Minches SAC). Additional assessment to support new applications will cost £5,600 per assessment. Development of and compliance with vessel management plan will cost £1,000 per new application. The additional cost of installing antipredator nets is £48,000 per site. It is assumed that the cost associated with antipredator nets will be phased in associated with the replacement of end-of life ADDs. There is no additional cost due to restriction of vessel speeds to <6 knots in shark awareness zones.
Description of quantified one-off impacts - (on site)		Additional assessment is required to assess the potential impact of new fishfarms on MPA features to support planning applications. Total cost = £22,400 Development of and compliance with vessel management plan. Total cost = £18,000	Additional assessment is required to assess the potential impact of new fishfarms on MPA features to support planning applications. Total cost = £22,400 Development of and compliance with vessel management plan. Total cost = £18,000 Replacement of 50% of end of life ADD with cetacean / basking shark appropriate devices. Total cost = £250,000	Additional assessment is required to assess the potential impact of new fishfarms on MPA features to support planning applications. Total cost = £22,400 Development of and compliance with vessel management plan. Total cost = £18,000 Restriction of vessel speeds to <6 knots in shark awareness zones. Total cost = £0 Replacement of ADD with antipredator nets. Total cost = £384,000
Description of quantified recurring impacts		N/A	N/A	N/A
Description of non-quantified costs	On-site	Cost of uncertainty and delays in planning applications.	Cost of uncertainty and delays in planning applications.	Cost of uncertainty and delays in planning applications.
	Off-site	Potential displacement of new aquaculture sites to areas outwith the pMPA	Potential displacement of new aquaculture sites to areas outwith the pMPA	Potential displacement of new aquaculture sites to areas outwith the pMPA
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)		40	290	424
Average annual costs		2	14	21
Present value of total costs (2019–2038)		29	198	300

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period. Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20). Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Shellfish aquaculture

There are currently 3 shellfish aquaculture sites within the Sea of the Hebrides pMPA, and a further 3 shellfish sites within a 1 km buffer around the site. Of these, three are within the Inner Hebrides and the Minches SAC. It is expected that the shellfish aquaculture in the Sea of the Hebrides pMPA will expand over the assessment period, and an assumption has been used below that there will be 7 applications for new or expanding sites every 10 years in Sea of the Hebrides.

Economic Impacts arising from Designation of the site as an MPA (2019 to 2038)

		Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts		It has been assumed that there will be 7 new applications in SOH every 10 years. Additional assessment of the impact on MPA features from new sites will cost £5,600 per application. Development of and compliance with a vessel management plan associated with new applications will cost £1,000 per application.	It has been assumed that there will be 7 new applications in SOH every 10 years. Additional assessment of the impact on MPA features from new sites will cost £5,600 per application. Development of and compliance with a vessel management plan associated with new applications will cost £1,000 per application.	It has been assumed that there will be 7 new applications in SOH every 10 years. Additional assessment of the impact on MPA features from new sites will cost £5,600 per application. Development of and compliance with a vessel management plan associated with new applications will cost £1,000 per application. It is assumed that the restriction of vessel speeds within the shark awareness zones has no additional associated cost.
Description of quantified one-off impacts - (on-site)		Additional assessment is required to assess the potential impact of new aquaculture sites on MPA features to support planning applications. Total cost = £78,000 Development of and compliance with vessel management plan. Total cost = £14,000	Additional assessment is required to assess the potential impact of new aquaculture sites on MPA features to support planning applications. Total cost = £78,000 Development of and compliance with vessel management plan. Total cost = £14,000	Additional assessment is required to assess the potential impact of new aquaculture sites on MPA features to support planning applications. Total cost = £78,000 Development of and compliance with vessel management plan. Total cost = £14,000
Description of quantified recurring impacts		N/A	N/A	N/A
Description of non-quantified impacts	On-site	Cost of uncertainty and delays	Cost of uncertainty and delays	Cost of uncertainty and delays
	Off-site	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019 to 2038)		92	92	92
Average annual costs		5	5	5
Present value of total costs (2019 to 2038)		66	66	66

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period.
Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20).
Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Coastal protection

The data currently available through the Eurosion database currently identifies no coastal protection assets within the site. However, it is thought that there are some areas of hard defence which are likely to require maintenance, and therefore assumptions made as summarised below.

In order to maintain protection from coastal erosion and flooding events, coastal protection assets require maintenance activities. Maintenance activities introduce the requirement for assessments in order to gain marine licences and planning permissions, which will need to be expanded to include the protected features of the site.

Economic Costs on the Activity of Designation of the Site as an MPA (2019-20138)

		Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts		It has been assumed that there is one application every 5 years in SOH for maintenance of a coastal protection asset Additional assessment of the impact on MPA features from new sites will cost £5,600 per application.	It has been assumed that there is one application every 5 years in SOH for maintenance of a coastal protection asset Additional assessment of the impact on MPA features from new sites will cost £5,600 per application.	It has been assumed that there is one application every 5 years in SOH for maintenance of a coastal protection asset Additional assessment of the impact on MPA features from new sites will cost £5,600 per application.
Description of quantified one-off impacts - (on-site)		Additional assessment is required to assess the potential impact of new coastal protection projects on MPA features to support planning applications. Total cost = £22,400	Additional assessment is required to assess the potential impact of new coastal protection projects on MPA features to support planning applications. Total cost = £22,400	Additional assessment is required to assess the potential impact of new coastal protection projects on MPA features to support planning applications. Total cost = £22,400
Description of quantified recurring impacts – (on-site)*		N/A	N/A	N/A
Description of non-quantified impacts	On-site	N/A	N/A	N/A
	Off-site	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)		22	22	22
Average annual costs		1	1	1
Present value of total costs (2019–2038)		16	16	16

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period.
Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20).
Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Commercial fisheries

Sea of the Hebrides pMPA lies within nine ICES rectangles covering the Sea of the Hebrides, from the Isle of Mull in the south to Skye in the north and the Outer Hebrides to the west, in ICES Division VIa. Approximately 8,580 tonnes of fish and shellfish were landed from these ICES rectangles per annum (2012-2016), predominantly shellfish species by weight (over 50%) and value (over 75%). The main gear types were demersal trawls and creels.

VMS-based estimates and ICES rectangle landings statistics indicate that demersal trawls and mechanical dredges (over-12m vessels) and demersal trawls and creels (under-12m vessels) are the main gear types that operate within the Sea of the Hebrides pMPA. The value of landings from the pMPA was £9.5 million (over-12m vessels, from VMS data) and £12.9 million (under-12m vessels, indicated from ICES rectangle landings data) (annual average for 2012–2016, 2019 prices).

Vessels fishing in the Sea of the Hebrides pMPA predominantly operate from: Mallaig, Stornoway, Fraserburgh and Oban (over-12m vessels) and Portree, Stornoway and Oban (under-12m vessels).

Landings from the over-12m vessels were made predominantly into Mallaig (57 %), Oban (13 %) and Northbay (9 %). Landings from the under-12m vessels were made predominantly into Strathaird (18 %), Mallaig (11 %) and Dunvegan (10 %).

For the over-12m vessels, demersal trawls operated in particular across the eastern and central parts of the pMPA while creels operated mainly in the north-west and mechanical dredges operated in the south-east part of the pMPA. For the under-12m vessels, demersal trawls operated in particular in the northern part of the pMPA.

Economic Impacts arising from the Management Scenarios for the pMPA (2019 to 2038)

		Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts		Follow best practice for mobile bottom-contacting gear to minimise risk of bycatch of basking shark. Reduce risk of entanglement of basking shark and minke whale with static gear by following best practice. Reduce risk of entanglement of minke whale and basking shark with pelagic gear by following best practice. It is assumed these scenarios entail no extra cost on the industry.	Follow best practice for mobile bottom-contacting gear to minimise risk of bycatch of basking shark. Reduce risk of entanglement of basking shark and minke whale with static gear by following best practice. Reduce risk of entanglement of minke whale and basking shark with pelagic gear by following best practice. Exclusion of hydraulic gear from sandeel habitat. Exclude targeted fishing for sandeels. Exclusion of drift nets and set nets between April and October in 'shark awareness zones'.	Follow best practice for mobile bottom-contacting gear to minimise risk of bycatch of basking shark. Reduce risk of entanglement of basking shark and minke whale with static gear by following best practice. Reduce risk of entanglement of minke whale and basking shark with pelagic gear by following best practice Exclusion of hydraulic gear from sandeel habitat. Exclude targeted fishing for sandeels. Exclusion of drift nets and set nets between April and October across site. Limit herring and sprat fishing effort to current levels.
One-off impacts (on-site)		None	None	None
Recurring impacts – cost impacts per fleet segment (annual values, £000s, 2019 prices) (on-site)*	Under & Over-12m vessels	Loss of fishing income:	Loss of fishing income:	Loss of fishing income:
	Suction dredges & set nets	0.0	2.4	3.5
	Total all vessels	0.0	2.4	3.5
Description of non-quantified impacts	On-site	None	None	None
	Off-site	None	If activity is displaced rather than lost, there is potential for: Additional abrasion Potential for gear conflict Additional impacts onspecies outside of site Potential changes to vessel costs/revenues	If activity is displaced rather than lost, there is potential for: Additional abrasion Potential for gear conflict Additional impacts on species outside of site Potential changes to vessel costs/revenues

Unlike most other sectors, the potential cost of designation on commercial fisheries is a loss or displacement of current (and future) output, caused by restrictions on fishing activities. Any decrease in output will, all else being equal, reduce the Gross Value Added (GVA) generated by the sector and have knock-on effects on the GVA generated by those industries that supply commercial fishing vessels. The costs estimates for this sector have therefore been estimated in terms of GVA, which more accurately reflects the wider value of the sector to the local area and economy beyond the market value of the landed catch.^[3] Costs are presented in terms of the reduction in full-time equivalent (FTE) employment. It is also possible that effort not continuing in the area could be transferred to other locations resulting in no or reduced loss of income.

GVA estimates have been generated by applying fleet segment-specific 'GVA/total income' ratios to the value of landings affected. The GVA ratios have been calculated using data on total income and GVA from the Sea Fish Industry Authority Multi-year Fleet Economic Performance Dataset (published Sept 2014). Further details on the GVA ratios and the methodology for estimating GVA and employment impacts applied are presented in Appendix C.

It is important to note that all costs presented below assume that all affected landings are lost; that there is no displacement of fishing activity to alternative fishing grounds. In reality, some displacement is likely to occur and hence the cost, GVA and employment impacts presented in this table are likely to overestimate costs.

Quantified Costs on the Activity of Designation of the Site as an MPA (£Million)

	Lower	Intermediate	Upper
Total change in GVA (2014–2033)	0.0	0.022	0.034
Average annual change to GVA	0.0	0.001	0.002
Present value of total change in GVA (2019–2038)	0.0	0.016	0.025
Direct and Indirect reduction in Employment	0.0	0.0	0.1

The results presented here represent a 'worst case' scenario for each scenario. In reality vessels are likely to react to any management measures in place in order to maintain profitability (i.e. by changing target species/gear type). Displacement could well negate some of the cost impacts stated above (i.e. by fishing 'elsewhere'), but conversely could also add to them (i.e. the extra fuel cost associated with fishing 'elsewhere'). This uncertainty is the reasoning behind not attempting to quantify this cost impact. Other non-quantified costs include: potential conflict with other fishing vessels, environmental consequences of targeting new areas, longer steaming times and increased fuel costs, changes in costs and earnings, gear development and adaptation costs, and additional quota costs.

Ports and harbours

There are 11 minor ports and harbours within or within a 1 km buffer of the Sea of the Hebrides pMPA (Baile Mor, Canna, Coll, Fionnphort, Galmisdale (Eigg), Hynish (Tiree), Meanish (Loch Pooltiel), Port Mor (Muck), Scarinish (Tiree), Milton (Tiree) and Gott Bay (Tiree)). Of these, six are within the Shark Awareness Zones, but of the six only Canna, Coll and Gott Bay (Tiree) are of sufficient size to issue notices to mariners.

It should be noted that additional cost impacts could arise as a result of consenting delays. The cost impacts and uncertainty associated with MPA designation may affect investor confidence.

Economic Costs on the Activity of Designation of the Site as an MPA (2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts	New development proposals affecting MPAs will require additional assessment of impacts to protected features. Additional assessment costs are estimated to be £7,600 (at 2019 prices) per licence application. Costs are incurred by all major ports within 5km of new MPAs or all non-major ports within 1km of new MPAs. All major ports submit development applications every 5 years starting in 2021 and all other ports submit development applications every 20 years starting in 2029.	New development proposals affecting MPAs will require additional assessment of impacts to protected features. Additional assessment costs are estimated to be £7,600 (at 2019 prices) per licence application. Costs are incurred by all major ports within 5km of new MPAs or all non-major ports within 1km of new MPAs. All major ports submit development applications every 5 years starting in 2021 and all other ports submit development applications every 20 years starting in 2029.	New development proposals affecting MPAs will require additional assessment of impacts to protected features. Additional assessment costs are estimated to be £7,600 (at 2019 prices) per licence application. Costs are incurred by all major ports within 5km of new MPAs or all non-major ports within 1km of new MPAs. All major ports submit development applications every 5 years starting in 2021 and all other ports submit development applications every 20 years starting in 2029. The cost to a port or harbour within the shark awareness zones to issue a Notice to Mariners is assumed to be £1,000.
Description of quantified one-off impacts – (on-site)	Additional assessment cost for development of major ports. Total cost = £0 Additional assessment cost for development of minor ports. Total cost = £84,000	Additional assessment cost for development of major ports. Total cost = £0 Additional assessment cost for development of minor ports. Total cost = £84,000	Additional assessment cost for development of major ports. Total cost = £0 Additional assessment cost for development of minor ports. Total cost = £84,000 Cost to ports or harbours of issuing Notice to Mariners for speed restrictions in shark awareness zones. Total cost = £3,000
Description of quantified recurring impacts – (on-site)	N/A	N/A	N/A
Description of non-quantified costs	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)	84	84	87
Average annual costs	4	4	4
Present value of total costs (2019–2038)	59	59	62

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period. Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20). Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Recreational boating

There is a high density of recreational boating within the Sea of the Hebrides pMPA, concentrated near the coastline, with facilities and stopping points for recreational yachts within the site, including RYA clubs and training facilities on Coll and Tiree, within the shark awareness zone.

Economic Costs on the Activity of Designation of the Site as an MPA (2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts	No additional costs	No additional costs	It has been assumed that the cost to the RYA for disseminating data regarding shark awareness zones is £1,000.
Description of quantified one-off impacts – (on-site)	N/A	N/A	Cost of disseminating information regarding speed restrictions. Total cost = £1,000
Description of quantified recurring impacts – (on-site)	N/A	N/A	N/A
Description of non-quantified costs	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)	0	0	1
Average annual costs	0	0	0
Present value of total costs (2019–2038)	0	0	1

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period. Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20). Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Commercial shipping

There is some commercial shipping activity throughout the Sea of the Hebrides pMPA. This activity includes considerable numbers of lifeline ferry transits connecting mainland Scotland to the Hebrides, alongside ships transiting through the Minches, where an International Maritime Organisation (IMO) traffic separation scheme (TSS) is in place to manage the high density of traffic in the region. Traffic through the area of the shark awareness zone is dominated by ferry routes, which are excluded from management scenarios, with small amounts of additional traffic transiting through the regions.

Economic Costs on the Activity of Designation of the Site as an MPA (2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts	No additional cost	No additional cost	It has been assumed that, given the low level of transits, and the exclusion of ferries from the management measure, there is no significant impact on shipping traffic from the <6 knots speed restriction. It has been assumed that the cost to the UKHO to integrate the speed restrictions onto nautical charts is £1,000.
Description of quantified one-off impacts – (on-site)	N/A	N/A	Cost to UKHO to update nautical charts. Total cost = £1,000
Description of quantified recurring impacts – (on-site)	N/A	N/A	N/A
Description of non-quantified costs	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)	0	0	1
Average annual costs	0	0	0
Present value of total costs (2019–2038)	0	0	1

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period. Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20). Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Telecommunication cables

There are two telecommunication cables which transit through Sea of the Hebrides (BT-HIE Seg1.17 and BT-HIE Seg1.15) totalling approximately 65 km of length within the site. These link mainland Scotland with the Hebridean islands of Tiree and Uist.

Economic Costs on the Activity of Designation of the Site as an MPA (2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Assumptions for impacts	It has been assumed that the cost associated with additional assessment to support planning applications is £5,600 in 2019 prices. It has been assumed that the cable is replaced during the assessment period.	It has been assumed that the cost associated with additional assessment to support planning applications is £5,600 in 2019 prices. It has been assumed that the cable is replaced during the assessment period.	It has been assumed that the cost associated with additional assessment to support planning applications is £5,600 in 2019 prices. It has been assumed that the cable is replaced during the assessment period.
Description of quantified one-off impacts – (on-site)	Cost of additional assessment. Total cost = £5,600	Cost of additional assessment. Total cost = £5,600	Cost of additional assessment. Total cost = £5,600
Description of quantified recurring impacts – (on-site)	N/A	N/A	N/A
Description of non-quantified costs	N/A	N/A	N/A
Quantified Costs on the Activity of Designation of the Site as an MPA (in £000s)
Total costs (2019–2038)	6	6	6
Average annual costs	0	0	0
Present value of total costs (2019–2038)	4	4	4

Total costs = Sum of one-off costs and recurring costs for the site summed over the 20 year period. Average annual costs = Total costs divided by the total number of years under analysis (i.e. 20). Present value of total costs = Total costs discounted to their current value, using a discount rate of 3.5%.

Public sector

The decision to designate the Sea of the Hebrides as an MPA, would result in costs being incurred by the public sector in the following areas:

• Preparation of Statutory Instruments
• Preparation of a Management Scheme
• Development of voluntary measures
• Site monitoring
• Regulatory and advisory costs associated with licensing decisions

The majority of these costs will accrue at the national level and as such have not been disaggregated to site level. Only the preparation of Statutory Instruments and regulatory and advisory costs associated with licensing decisions have been estimated at the site level

Site-specific Public Sector Costs (£Million, 2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Preparation of Statutory Instruments	0	0.0042	0.0042
Preparation of a Management Scheme	0.0278	0.0278	0.0278
Development of Voluntary Measures	0.0042	0.0042	0.0042
Monitoring of Protected Features	0.324	0.324	0.324
Regulatory costs	0.018	0.018	0.018
Total Quantified Public Sector Costs	0.374	0.378	0.378
Average annual costs	0.019	0.019	0.019
Present value of total costs (2019 to 2038)	0.285	0.289	0.289

Total costs

Total quantified costs are presented in present value terms. Commercial fisheries costs are presented in terms of GVA.

Total Present Value of Quantified Costs (£Million, 2019-2038)

	Lower Estimate	Intermediate Estimate	Upper Estimate
Finfish Aquaculture	0.029	0.198	0.3
Shellfish Aquaculture	0.066	0.066	0.066
Coastal Protection	0.016	0.016	0.016
Ports and Harbours	0.059	0.059	0.062
Recreational Boating	0	0	0.001
Commercial Shipping	0	0	0.001
Telecommunication Cables	0.004	0.004	0.004
Total Quantified Economic Costs	0.175	0.344	0.451

GVA Impacts (£million 2019-2038)

Commercial Fisheries	0	0.016	0.025

Total Non-Quantified Costs

Scenario	Lower	Intermediate	Upper
Sector/Group
Finfish Aquaculture	Cost of uncertainty and delays. Potential displacement of new aquaculture sites to areas outwith the pMPA.	Cost of uncertainty and delays. Potential displacement of new aquaculture sites to areas outwith the pMPA.	Cost of uncertainty and delays. Potential displacement of new aquaculture sites to areas outwith the pMPA.
Shellfish Aquaculture	Cost of uncertainty and delays.	Cost of uncertainty and delays.	Cost of uncertainty and delays.
Commercial Fisheries	None	If activity is displaced rather than lost, there is potential for: Additional abrasion. Gear conflict. Additional impacts on species outside of site. Changes to vessel costs/revenues.	If activity is displaced rather than lost, there is potential for: Additional abrasion. Gear conflict. Additional impacts on species outside of site. Changes to vessel costs/revenues.
Power Interconnectors	Cost of uncertainty and delays to licence applications.	Cost of uncertainty and delays to licence applications.	Cost of uncertainty and delays to licence applications.