Control of Potato Cyst Nematodes: Consultation on the Implementation in Scotland of Directive 2007/33/EC

10. Costs

61. At present, no charge is made for PCN soil testing within the SPCS (charges are made for consignment or other additional testing required for exports). The UK is in a minority in the EU in not charging for this service. However, implementing the 2007 Directive will require a significant increase in the amount of soil to be sampled and tested. The Scottish Government is investigating more efficient methods for analysing soil samples, but there is still expected to be a substantial increase in the costs of the PCN testing service as a whole.

62. Having considered a range of options, Scottish Ministers have concluded that the additional costs cannot be absorbed by the Scottish Government without a knock-on effect on the quality of this and other services to the farming industry. They therefore propose that the additional costs of implementing the new PCN Directive should be covered by charges for PCN testing. The Scottish Government will continue to cover an amount equivalent to the costs of the current regime from its own budget.

63. The exact mechanism for calculating charges to growers will be subject to further consideration and a separate consultation. Some factors contributing to the overall cost of the service will depend on the detailed implementation of the new regime, informed by responses to this consultation, and others on choices made by individual growers. As a rough guide, we have estimated that the new requirements are likely to increase total annual costs from just over £400,000 (in 2006) to between £600,000 and £840,000 (at 2006 prices). To cover the additional costs the annual charge for an individual grower is likely to range from around £250, for a small grower, to upwards of £2500 for the largest 5% of businesses.

Question 13: What are your views on the proposed introduction of charging to cover the additional costs of the new PCN testing regime?

Please note that we would welcome specific information on the potential impact charging would have on businesses, to assist in developing a Regulatory Impact Assessment.