Scottish Crown Estate strategic management plan: business and regulatory impact assessment

Scottish Firms Impact Test

The Scottish Government continued engagement with the Stakeholder Advisory Group throughout the development of the Scottish Crown Estate Bill and following the Act receiving Royal Assent. Stakeholders were given the opportunity to provide verbal and written comments on the high level objectives contained in the draft Strategic Management Plan.

The diverse membership of the Group brings together the perspectives of many Scottish Crown Estate portfolio interests. This includes representatives of relevant small businesses and other industries.

Competition Assessment

The Strategic Management Plan is not expected to have an impact on competition as it provides high level objectives, priorities and policies on the management of the Scottish Crown Estate which align with Scottish Ministers' wider objectives, priorities and policies. Any manager of a Scottish Crown Estate asset is required to have regard to the Plan and decisions on management of the Scottish Crown Estate must comply with the wider legal framework for public bodies in Scotland.

None of the measures, or objectives, priorities and policies, contained in the Plan will directly or indirectly limit the number or range of suppliers or limit the ability of suppliers to compete, and nor will they limit the choices and information available to consumers.

Consumer Assessment

The Scottish Government definition of a consumer is "anyone who buys goods or digital content, or uses goods or services either in the private or public sector, now or in the future".

None of the proposals contained in the Plan will have an impact on consumers, including consumers whose circumstances make them more vulnerable. The Plan provides high level objectives, priorities and policies on the management of the Scottish Crown Estate which align with Scottish Ministers' wider objectives, priorities and policies. Any manager of a Scottish Crown Estate asset is required to have regard to the Plan and decisions on management of the Scottish Crown Estate must comply with the wider legal framework for public bodies in Scotland. In particular, none of the proposals:

• affect the quality, availability or price of any goods or services in a market or the essential services market, such as energy or water.
• involve storage or increased use of consumer data.
• increase opportunities for unscrupulous suppliers to target consumers.
• impact on the information available to consumers on either goods or services, or their rights in relation to these.
• affect routes for consumers to seek advice or raise complaints on consumer issues.

Test run of business forms

No new forms are proposed at this stage.

Digital Impact Test

The Plan does not involve direct provision of services and the consultation is being undertaken via a web-based consultation. The Plan does not therefore provide direct opportunities for enhancing digital provision of services. The Plan provides high level objectives, priorities and policies on the management of the Scottish Crown Estate which align with Scottish Ministers' wider objectives, priorities and policies. Any manager of a Scottish Crown Estate asset is required to have regard to the Plan and decisions on management of the Scottish Crown Estate must comply with the wider legal framework for public bodies in Scotland.

Implementation of the Plan will provide an opportunity for a manager of a Scottish Crown Estate asset to consider within this wider policy and regulatory framework whether there are opportunities for a manager to enhance digital provision of services and contribute to the increasing shift of economic, social and governmental interactions online with appropriate arrangements, where necessary, to mitigate any adverse impact on traditional or offline businesses.

Legal Aid Impact Test

It is not expected that the proposals will have any impact on the current level of use that an individual makes to access justice through legal aid or on the possible expenditure from the legal aid fund.

Enforcement, sanctions and monitoring

The Scottish Crown Estate Act 2019 provides the new legal framework for the management of the Scottish Crown Estate. Under sections 22 and 23 of Act, Scottish Ministers must prepare a Plan for the management of the Scottish Crown Estate. The Plan must set out Scottish Ministers' objectives, priorities and policies in relation to the management of the Estate and an assessment of how those objectives, priorities and policies align with the Scottish Ministers' other objectives, priorities and policies. Section 23 of the Act outlines requirements for review of the Plan.

Implementation and delivery plan

The Scottish Crown Estate Act 2019 is being commenced in phases. Phase one includes sections relating to the Strategic Management Plan and other Scottish Ministers' powers and duties which enable the Scottish Ministers to perform a number of activities in respect of management of the Scottish Crown Estate.

Crown Estate Scotland is currently responsible for the management of the Scottish Crown Estate. The Scottish Ministers' Strategic Management Plan and Crown Estate Scotland's new three year Corporate Plan (2020-23) are related and complementary. The Strategic Management Plan will be implemented and delivered via this Corporate Plan in the first three years of operations and via the updated Corporate Plan, and the Management Plan for any other future manager of a Scottish Crown Estate asset, in the remaining years of the implementation of the Strategic Management Plan.

To ensure the finalised Strategic Management Plan was published in advance of Crown Estate Scotland 's Corporate Plan, the Strategic Management Plan was published on 31 March 2020.

Post-implementation review

A five-yearly review of the Plan is to take place in accordance with section 23 of the Scottish Crown Estate Act. A review may either result in a revised Plan being prepared (subject to the same consultation, laying and publication requirements) or in the Scottish Ministers laying a statement before the Scottish Parliament that they consider the Plan should not be revised.

Summary and recommendation

A summary of the options with recommendations is outlined below:

Theme 1 – Delivering Benefits and Realising Opportunities

Summary of key criteria and assessment of each option

The options are ranked 'low, medium or high' in terms of their ability to meet the criteria:

Criteria	Option 1 – Pursue new opportunities to enhance the value and revenue of the Scottish Crown Estate and wider benefits outlined in Strategic Management Plan	Option 2 – Maintain the current structure/content of the Scottish Crown Estate and current pattern of investment	Option 3 – To go significantly beyond option 1 by focusing investment to an even greater extent on the new opportunities that would be delivered under objectives, priorities and policies in the Strategic Management Plan
1. Maximise opportunity to increase return to estate (both commercial and public good)	High	Low	High
2. Maximise flexibility to adapt to changing context (e.g. new opportunities may require purchasing new assets or selling existing ones)	High	Low	High
3. Ensure adequate funds available for all parts of the estate	High	Low	Low

Theme 2 – How the Scottish Crown Estate assets are managed

Summary of key criteria and assessment of each option

The options are ranked 'low, medium or high' in terms of their ability to meet the criteria:

Criteria	Option 1 – Retain management of all Scottish Crown Estate assets at the national level	Option 2 – Devolve management of all assets to local authorities, community organisations or Scottish harbour authorities	Option 3 – Different levels of control based on the diversity of the Scottish Crown Estate with the manager of the asset to be decided on a case-by-case basis
1. Administration costs (whether likely to be higher/lower relative to baseline	Low or zero	High	Medium
2. Ability to share risk across portfolio of assets (opportunities to offset short-term losses on assets)	High	Low	High
3. Opportunity to take advantage of synergies across assets (this could be phrased as economies of scope)	High	Low	High
4. Opportunity for local influence	Medium	High	High
5. Opportunity to focus on individual asset/s and use local knowledge	Medium	High	High
6. Maximise opportunity to keep seabed unfragmented	High	Low	High

Theme 3 – Guidance

Summary of key criteria and assessment of each option

The options are ranked 'low, medium or high' in terms of their ability to meet the criteria:

Criteria	Option 1 - Scottish Ministers develop guidance or directions for a manager of a Scottish Crown Estate asset that is tailored to the Scottish Crown Estate and aligns with the Scottish Government's Purpose and the National Performance Framework	Option 2 - Scottish Ministers do not produce specific directions or guidance for a manager of a Scottish Crown Estate asset using the powers under sections 37 and 38 of the Scottish Crown Estate Act 2019
1. Alignment with Scottish Government objectives	High	Low
2. Administrative costs	Higher in short term	Lower in short term but higher in medium and long term
3. Maximise flexibility – ability of estate managers to respond to changing context	High	High

Recommendations

The following options are preferred:

Theme	Preferred Option
1. Delivering Benefits and Realising Opportunities	Option 1: Pursue new opportunities to enhance the value and revenue of the estate and wider benefits outlined in the Strategic Management Plan.
2.How the Scottish Crown Estate assets are managed	Option 3: There will be different levels of control based on the diversity of the Scottish Crown Estate with the manager of the asset to be decided on a case-by-case basis.
3. Guidance	Option 1: Scottish Ministers develop guidance or directions for a manager of a Scottish Crown Estate asset that is tailored to the Scottish Crown Estate and aligns with the Scottish Government's Purpose and the National Performance Framework.

I have read the Partial Business and Regulatory Impact Assessment and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

Signed:
Date: 9 April 2020
Minister's name Roseanna Cunningham
Minister's title Cabinet Secretary for the Environment, Land Reform and Climate Change
Scottish Government Contact point: Eleanor.Smith@gov.scot