Partial Business and Regulatory Impact Assessment
Purpose and intended effect
Background Seed certification is a European Community requirement to ensure that farmers and growers receive seeds of a known minimum quality. This is achieved in Scotland through marketing regulations, which ensure that seeds of the main agricultural and vegetable species can be marketed only after being examined and certified as meeting specified minimum EU standards and as being derived from crops which have also met specific EU variety registration standards.
Objective Charging for services transfers the cost from the taxpayer to the user who benefit directly, giving a fairer distribution of public resources and lowering public expenditure. This means charging for these services at full cost recovery.
Rationale for Government intervention Scottish Government policy for setting fees and charges for all statutory and commercial services is for full cost recovery with charges set accordingly. Scottish Ministers have given their assurance to the Rural Affairs, Climate Change and Environment Committee, that the statutory fees charged for seed testing, seed certification, and associated licensed activities should be reviewed on an annual basis. They have reviewed the processes and procedures and have work closely with RPID and the OSTS Scotland to identify cost effective ways of carrying out this work. SASA have provided the cost for undertaking this work and predicted the increases required to make full cost recovery in financial year 2014/15.
Public This partial BRIA will accompany the consultation which will be issued on the 7March2014. The consultation documents will be sent electronically and by post to all interested parties registered with Scottish Government. An electronic copy will also be placed on the Scottish Government website. No informal consultation has taken place.
Business During the consultation period, Scottish Government will meet with a cross section of the seed industry.
Option 2 Increase fees to achieve full cost recovery in financial year 2014/15.
Sectors and groups affected Seed Merchants, Processors and Packers Licensed Seed Testing Stations (LSTS) Licensed Seed Samplers Licensed Crop inspectors Farmers Benefits Option1 no increases to fees. Public money continues to be used to subsidise services that will directly benefit industry.
Option2 Scottish Government achieves full cost recovery and allows for the service to continue at a sustainable level.
Costs Option 1
Scottish tax payers subsidising the agricultural industry, would require additional funding to the agriculture budget. The current cost of providing statutory services for seed marketing is 205,000. In 2013/13 a total of 193,000 was recovered through fees. If this is not addressed, the deficit will increase over each financial year and would see the tax payer subsidising services that should be covered by the industry using it.
Will introduce increases of between 0.5 16.7% for the seed industry, to insure full cost christian louboutin outlet recovery and no subsidisation. Scottish Government can produce rough estimates of increased costs on the services they provide, based on the information available to them through the certification system. However, we cannot account for cost that cover labour, fertiliser, agrochemicals, equipment or other overheads that could be associated with producing grain. Grasses costings example (only Scots Timothy grown and Certified in Scotland)
Statutory Service/Function Proposed Fee Fee (per tonne, assuming 10 tonne lot) Init christian louboutin outlet ial Fees 4.25 per ha 3.19 Crop Inspection Fee 18.50 per ha 13.88 Seed Lot Fee 33.00 3.30 Seed Lot Re Entry Fee 35.00 3.50 (not applied) Sampling Fee 50.12 5.01 (not applied) Seed Testing 74.34 7.43 HVS verification 7.00 not applicable Fee cost per tonne 27.80 per tonne. Scottish Firms Impact Test
To get a better idea of what these proposed increases will mean for Scottish individuals / companies, Scottish Government will need to speak to a cross section of the seed industry. Interviews will take place during March/April and our findings will be summarised in the christian louboutin outlet Final BRIA, which will be published christian louboutin outlet along with any responses we receive.
Competition Assessment We do not anticipate any impact on competition however we will update this section after interviews with industry.
Test run of business forms No new forms for business to fill in will be introduced as a result of our proposals.