West Coast of Outer Hebrides Special Protection Area: business and regulatory impact assessment
An assessment of the business and regulatory impacts of classifying the West Coast of Outer Hebrides Special Protection Area.
Options
Option 1: Do nothing
Option 1 is the ‘Do nothing’ option; this is the baseline scenario. Under this option, the proposed West Coast of the Outer Hebrides site is not classified. Accordingly, no additional management measures would be required.
Option 2: Classify site as a Special Protection Area
Option 2 involves the formal classification of the West Coast of the Outer Hebrides site. Classification would provide recognition and protection to the natural features of the site while also contributing to the wider Scottish and UK SPA network. Requisite management would be required to maintain the status of the site.
Sectors and groups affected
The following sectors have been identified as present (or possibly present in the future) within the proposed West Coast of the Outer Hebrides site and potentially interact with one or more of the features:
- Aquaculture (Finfish)
- Aquaculture (Shellfish)
- Coastal defence and flood protection
- Commercial fisheries (GVA)
- Energy generation
- Military
- Ports and harbours
- Telecom cables
- Public Sector
Affected sectors may be impacted to a greater or lesser degree by classification depending on which scenario is pursued and which management option is preferred.
Benefits
Option 1: Do nothing
No additional benefits are expected to arise from this policy option.
Option 2: Designate site as a Special Protection Area
The extent and quality of habitat and available food around Scotland’s coast supports huge numbers of different species of seabirds. Few countries can match this and we have an international responsibility to protect what we have around Scotland. Therefore the appropriate action is to protect and maintain Scotland’s seabird and water bird populations and meet the requirements of the EU Wild Birds Directive.
SPAs are created to meet international commitments under the EU Wild Birds Directive, which promotes the conservation of wild birds. SPAs are managed to safeguard the birds and avoid significant disturbance and deterioration of their habitats. This means that proposed activities likely to affect an SPA are assessed for their potential to cause such disturbance or deterioration. The relevant consenting authority must ensure beyond reasonable scientific doubt that any impact is not significant before permitting the activity.
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 such as SPAs.
Contribution to an Ecologically Coherent 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 no doubt to be found in the undiscovered deeps 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. This SPA is a contribution to a wider network of Marine Protected Areas designed to conserve and regenerate our seas. This in turn will help ensure that ecosystem goods and services continue to support current and future generations. It is likely that an ecologically coherent network of marine protected areas is likely to provide greater benefit than the sum of its individual components.
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 Values
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. It is challenging to put a precise value on this, but the high quality experience derived from Scotland’s seas can be better preserved through measures such as SPAs.
It is expected that non-use value will be attained as a result of classification and the support of wider conservation objectives. Whilst ecosystem services benefits at an individual site level cannot be readily calculated, the one-off non-use value to Scottish households of marine conservation in Scottish waters generated by the additional 14 SPAs is estimated to be in the region of £74 million.[4] This figure uses valuation evidence across several sites with similar features and characteristics and highlights the significant positive non-use value that divers and anglers within the Scottish marine environment place on securing the quality of the marine resources they use as a result of protection against degradation.
Use Values
There could be a major transformative effect on inshore habitat and a significantly enhanced flow of environmental goods and services. We know the inherent capacity of the system and the flora and fauna that it could support. Achieving that could see the expansion of recreational activities such as diving, sea-angling, and other tourism alongside sustainable methods of fishing.
Research by Kenter et al[5] has been used to estimate the use benefits to divers and anglers specifically, as a result of classifications safeguarding the total recreational value of the sites. The additional increase in recreational value as result of implementing management measures for the 14 new SPAs has an estimated total present value of £2.1-6.2 million over the 20 year assessment period.[6]
In addition there is likely to be increased activity for businesses in the marine wildlife and tourism sector. This includes those directly involved (e.g. operating boat trips) and those benefiting indirectly (e.g. accommodation providers). The scale of this increase across the proposed sites cannot be quantified, but it can be expected to be some increment of the existing value of these activities. Given the marine wildlife tourism market is currently estimated to be worth £100’s of millions per year, an increment of this could be expected to be worth in the region of £10 million per year across the network to the Scottish wildlife tourism market.[7]
Summary of Benefits
The uncertainties in each of the benefits assessed result in a large range of estimated values. Based on the available evidence, the combined total present value of the benefits for the new network (based on the additional benefits of the 14 new proposals) is tentatively estimated to be between in the region of £80 million over the 20 year assessment period. This is comprised of a one-off non-use value attained at designation to Scottish households of marine conservation in Scottish waters generated by the additional 14 SPAs of £74 million and an additional use value as result of implementing management measures for the 14 new SPAs of £2.1-£6.2 million.
For a qualitative summary of anticipated benefits to ecosystem services in this particular site see appendix A.
Costs
Option 1: Do nothing
This option is not predicted to create any additional costs to the sectors and groups outlined above.
However failure to classify the “most suitable territories” as SPAs would leave the Scottish Government exposed to a high risk of EC infraction proceedings, which may result in substantial one off and recurring fines.
In addition 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 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 SPA Network. This potentially large and irreversible societal cost avoided is presented within the benefits section of the ‘do designate’ scenario (option 2) to avoid double counting the same impact.
Option 2: Designate site as a Special Protection 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%. Discounting reflects the fact that individuals prefer present consumption over future consumption.
Aquaculture (Finfish)
There are five finfish aquaculture sites within the boundary of the WOH SPA. These are Sound of Harris, West Loch Tarbert, Ardhasaig I, Ardhasaig II and Soay. There are a further three additional finfish farms within 1km of the SPA. These are Grey Horse Channel, Hellisay and Rodel.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs | Under all scenarios: SSPO estimates that there will be a 12 planning applications across the SPAs in the next five years. For the purposes of this assessment, it has been assumed that similar rates of application occur in subsequent periods of the impact assessment and the distribution of planning applications is in proportion to the number of existing sites in each SPA. It is assumed that the additional assessments will fall in 2017, 2022, 2027 and 2032 and the costs of each assessment will be £5.2k; and It has been assumed that additional assessment will be required to support CAR licence applications at a cost of £5.2k per licence application incurred once every 10 years for each finfish farm installation within 1km of a new marine SPA where these installations are not already within an existing site (SAC, SPA or MPA). The CAR licence applications are assumed to be in 2020 and 2030 for all installations. For upper scenario only: It is assumed that a condition of the licence for each of the 12 planning applications will be to provide annual monitoring returns of bird entanglement at a cost of £0.5k per site per year starting in the year following submission of the planning application. |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2015–2034) | 0.027 | 0.027 | 0.046 |
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Average annual costs | 0.001 | 0.001 | 0.002 |
Present value of total costs (2015–2034) | 0.020 | 0.020 | 0.032 |
Aquaculture (Shellfish)
There are three shellfish aquaculture sites within the boundary of the WOH SPA. These are Biadh na Gradh, Garbh Lingeigh and Sound of Harris (Shellfish). There are a further four additional shellfish sites within 1km of the pSPA. These are Fuiay Rock South of Hellisay, Nursery Site, Rubha Charnain and Sounds of Barra.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs | Under all scenarios: It has been assumed that there will be 15 planning applications (new installations or extensions) that may be submitted at a national level in the next five years within or adjacent (within 1km) to new SPA proposals. For subsequent periods of the IA, it has been assumed that this number will reduce to 10 planning applications within new SPAs every 5 years. The total number of planning applications in each five year period has bene assigned to individual new SPAs based on the relative number of existing installations within each new SPA. It is assumed that the additional assessments will fall in 2017, 2022, 2027 and 2032 and the costs of each assessment will be £5.2k. |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2015–2034) | 0.026 | 0.026 | 0.026 |
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Average annual costs | 0.001 | 0.001 | 0.001 |
Present value of total costs (2015–2034) | 0.020 | 0.020 | 0.020 |
Coastal defence and flood protection
There are five coast protection and flood defence structures (1 x Artificial protection (dykes), 3 x rock armour, 1 x breakwater) which overlap the WOH SPA boundary or within the 10km buffer. Therefore, management costs may be incurred under the assumption structures will require maintenance or construction works once every 20 years (starting in 2024).
Seasonal controls will be applied to construction activity, where necessary, to minimise impacts to protected features. It has been assumed that these seasonal restrictions can be accommodated without imposing any additional cost on the construction programme.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2015–2034) | 0.026 | 0.026 | 0.026 |
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Average annual costs | 0.001 | 0.001 | 0.001 |
Present value of total costs (2015 –2034) |
0.019 | 0.019 | 0.019 |
Commercial Fisheries:
According to VMS-based estimates and ICES rectangle landings statistics, pots, dredges, and trawls (over-15m) and dredges and trawls (under-15m vessels) operate within the WOH SPA. The value of catches from the WOH area was £35,000 (over-15m vessels) and £746,000 (under-15m vessels, indicated from ICES rectangle landings data) (annual average for 2009–2013, 2015 prices). Landings from the over-15m vessels are predominantly into Stocknish (23% by value), Uig (22%) and Kallin (13%). For the over-15m fleet, a total of 66 UK vessels operated in the WOH area in the period 2009-2013, including nephrops trawls (32), dredges (20) and pots (14). Pots operate mainly in the west part of the SPA and in the east in the channels between Isle of Harris and North Uist and between South Uist and Barra.
Management measures for the scenarios have been developed based on the sensitivity and vulnerability of the features to the pressures caused by different gear types and SNH recommendations.
Uprated ScotMap data (under-15m vessels) indicate that the annual average earnings from the WOH SPA was £2,965,000 for the period 2007-2011, with pots contributing the highest value. The coverage for ScotMap interviews in the region was 87% (total value of reported landings from the Fisheries Information Network for those vessels included in the ScotMap value analysis expressed as a percentage of the total reported landings for all vessels <15m); the spatial representation of the value of fishing is more robust in regions where coverage is higher.
Non-UK VMS ping data indicate that 1 non-UK vessel was active in the WOH area in 2011 to 2013, from Norway. No information on gear types used by the Norwegian vessel was available.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs |
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Description of recurring costs |
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Description of non-quantified costs |
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Commercial fisheries costs are presented below in terms of Gross Value Added (GVA). GVA more accurately reflects the wider value of the sector to the local area and economy beyond the market value of the landed catch. Stating costs purely in terms of landed value would overstate the true economic cost of not fishing. If fishermen are prevented from catching fish they forgo the landed value of those fish but subsequently forgo the payment of intermediate costs such as fuel (it is assumed that no fishing activity is displaced). Costs are also 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.
Total change in GVA (2015–2034) | 0.000 | 0.049 | 0.148 |
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Average annual change to GVA | 0.000 | 0.003 | 0.007 |
Present value of total change in GVA (2015–2034) | 0.000 | 0.036 | 0.109 |
Direct and Indirect reduction in Employment | 0.0 jobs | 0.1 jobs | 0.2 jobs |
These estimates represent a worst-case scenario, based on the assumption of zero displacement of fishing activity. In reality, it is likely that some commercial fishing activity will be displaced to other grounds and hence it is likely that the impacts on employment are likely to be lower than those estimated. A recent Marine Scotland study on fisheries displacement in relation to the 2015 Nature Conservation MPA classifications[8] indicated that a significant proportion of fishing effort affected by the classifications was likely to relocate elsewhere. 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) but this could add to their costs (i.e. the extra fuel cost associated with fishing elsewhere). This uncertainty surrounding the change in behaviour 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.
Energy Generation:
There are no energy generation developments within the WOH SPA boundary (or 10 km buffer); thus economic costs and management measures associated with energy generation in this SPA are described in light of known possible future developments.
One wave energy generation development, the Harris Demonstration Project (test site), is currently planned (pre-consent) to be located within 10 km of the WOH SPA boundary. There are currently no offshore wind or tidal energy generation developments within the WOH SPA boundary (or 10 km buffer).
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2015–2034) | 0.013 | 0.013 | 0.133 |
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Average annual costs | 0.001 | 0.001 | 0.007 |
Present value of total costs (2015 –2034) |
0.012 | 0.012 | 0.094 |
Possible social impacts may flow from the economic costs resulting from classification. There may be reduced future employment opportunities if additional costs are significant and render development projects economically unviable or if delays arising from classification impact on potential investment opportunities. It is not possible to assess potential cost impacts relating to potential future development areas, such as the Sectoral Marine Plan options, that could be affected due to the uncertainty surrounding the location and nature of future development.
Military
8 military practice areas (Fleet Exercise Area (North) (X5501), Barra (X5633), Ushenish (X5712), Hebrides (D701), Loch Maddy (X5713), Hebrides (D701A), Hebrides (D701C) and Hebrides (D701E); All firing danger areas) overlap with the WOH SPA.
The features which overlap with military activities have not been described as vulnerable to MoD activities in this SPA. It is assumed that management relating to MoD activity will be coordinated through the MoD’s Maritime Environmental Sustainability Appraisal Tool (MESAT) which the MoD uses to assist in meeting its environmental obligations. This process will include operational guidance to reduce significant impacts of military activities on SPAs. It is assumed that the MoD will incur additional costs in adjusting MESAT and other MoD environmental assessment tools in order to consider whether its activities will impact on the conservation objectives of SPAs and also incur additional costs in adjusting electronic charts to consider SPAs. However, these costs will be incurred at national level and hence no site-specific cost assessments have been made.
Ports and Harbours
There are 15 minor ports/harbours (Acarsaid, Aird Ma Ruibhe Terminal, Aird Mhor, Ardhasaig, Ardveenish, Barra, Castlebay, Ceann a Gharaidh, Eriskay, Haunn, Hougharry, Leverburgh, Ludag, Northbay and Pol nan Crann) located within the WOH SPA boundary or within the 1km buffer. Therefore, management costs may be incurred under the assumption that minor ports/harbours will undertake development every 10 years (starting in 2025) within the assessment period (2015-2034).
There are no open disposal sites within the WOH SPA boundary (or 1km buffer).
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2015–2034) | 0.092 | 0.092 | 0.092 |
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Average annual costs | 0.005 | 0.005 | 0.005 |
Present value of total costs (2015–2034) | 0.065 | 0.065 | 0.065 |
It should be noted that additional cost impacts could also arise as a result of consenting delays. The cost impacts and uncertainty associated with SPA classification may impact on potential investment opportunities.
Telecom Cables
There are three telecom cables (Leverburgh to Lochmaddy, Balla to Ludag and North Bay to Coilleag) located within the WOH SPA boundary. Therefore, management measures associated with the replacement of telecom cables (additional assessment) during the assessment period could lead to cost impacts.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Assumptions for cost impacts |
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Description of one-off costs |
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Description of recurring costs |
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Description of non-quantified costs |
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Total costs (2014–2033) | 0.008 | 0.008 | 0.008 |
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Average annual costs | <0.001 | <0.001 | <0.001 |
Present value of total costs (2014–2033) | 0.006 | 0.006 | 0.006 |
It should be noted that additional cost impacts could also arise as a result of consenting delays. The cost impacts and uncertainty associated with SPA classification may impact on potential investment opportunities.
Public Sector:
The decision to designate the West Coast of the Outer Hebrides site as a SPA, would result in costs being incurred by the public sector in the following areas:
- Preparation of Marine Management Schemes
- Preparation of Statutory Instruments
- Development of voluntary instruments
- Site monitoring
- Compliance and enforcement
- Promotion of public understanding
- Regulatory and advisory costs associated with licensing decisions
Some of these costs will accrue at the national level and as such have not been disaggregated to site level.
Lower Estimate | Intermediate Estimate | Upper Estimate | |
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Preparation of Marine Management Schemes | 0.025 | 0.025 | 0.025 |
Preparation of Statutory Instruments | 0.000 | 0.004 | 0.004 |
Development of voluntary measures | 0.000 | 0.000 | 0.000 |
Site monitoring | 0.088 | 0.088 | 0.088 |
Regulatory and advisory costs associated with licensing decisions | 0.014 | 0.014 | 0.014 |
Total Quantified Public Sector Costs | 0.127 | 0.131 | 0.131 |
Total Costs
Total quantified costs are presented in present value terms. Commercial fisheries costs are presented in terms of GVA.
Sector | Lower Estimate | Intermediate Estimate | Upper Estimate |
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Aquaculture (Finfish) | 0.020 | 0.020 | 0.032 |
Aquaculture (Shellfish) | 0.020 | 0.020 | 0.020 |
Coastal defence and flood protection | 0.019 | 0.019 | 0.019 |
Energy generation | 0.012 | 0.012 | 0.094 |
Military | See National Costs | See National Costs | See National Costs |
Ports and harbours | 0.065 | 0.065 | 0.065 |
Telecom cables | 0.006 | 0.006 | 0.006 |
Public Sector | 0.127 | 0.131 | 0.131 |
Total Present Value of Costs | 0.269 | 0.273 | 0.367 |
Commercial Fisheries | 0.000 | 0.036 | 0.109 |
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Scenario Sector/Group |
Low | Intermediate | Upper |
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Aquaculture (Finfish) |
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Aquaculture (Shellfish) |
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Coastal defence and flood protection |
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Commercial fisheries |
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Energy generation |
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Ports and harbours |
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Telecom cables |
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Contact
Email: marine_conservation@gov.scot
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