Orkney Islands Regional Marine Plan

Business and Regulatory Impact Assessment

IMAGE: The cover identifies the publication as the “Orkney Islands Regional Marine Plan Business and Regulatory Impact Assessment”. It includes a stylised map of Orkney and surrounding Scotland, together with the Orkney Islands Council and Scottish Government logos.

Title of Proposal

Orkney Islands Regional Marine Plan

Purpose and intended effect

Background

Marine planning in Scotland’s inshore waters is governed by the Marine (Scotland) Act 2010 and in offshore waters by the Marine and Coastal Access Act (2009). Following the creation of the National Marine Plan (NMP) in 2015, 11 Scottish Marine Regions were created in Scotland each extending to 12 nautical miles. Within these regions, regional marine plans may be developed by delegates, often referred to as Marine Planning Partnerships (MPPs). MPPs are made up of marine stakeholders who reflect marine interests in their region and are established to take account of local circumstances.

The Orkney Islands Regional Marine Plan (OIRMP) has been prepared by Orkney Islands Council (OIC), as per the Delegation of Functions (Regional Marine Plan for the Scottish Marine Region for the Orkney Islands) Direction 2020. The preparation of the OIRMP is supported by the Orkney Marine Planning Advisory Group (OMPAG), which comprises stakeholders representing environmental, social, economic and recreational interests. Collectively, OIC and the OMPAG form the Orkney Marine Planning Partnership. For clarity, the delegated regional marine plan making functions remain with OIC as the single delegate identified in the Direction.

The Plan conforms with both the National Marine Plan (NMP), unless relevant considerations indicate otherwise, and the Marine Policy Statement. It adds value to the existing policy frameworks outlined in the NMP by taking into account local circumstance and reflecting local priorities and opportunities. It seeks to achieve a balance between national and local interests, helping to address local challenges. The OIRMP sits alongside and integrates with land use planning policy, in particular the National Planning Framework 4 (NPF4), the indicative Orkney Regional Spatial Strategy and the Orkney Local Development Plan (OLDP).

The National Planning Framework (NPF) is a long-term plan for Scotland that sets out where development and infrastructure is needed. Scotland’s fourth National Planning Framework (NPF4) looks forward to 2045 to guide spatial development, sets out national planning policies, designates national developments and highlights regional spatial priorities. NPF4 forms part of the development plan and so influences planning decisions across Scotland.

OIRMP Objectives

The OIRMP has been developed to help ensure that development and activities in the Orkney Islands marine region are sustainable. Orkney’s vision for the marine and coastal environment is:

Orkney Islands’ regional marine waters are clean, healthy, safe and productive; the marine and coastal environment is rich in biodiversity and managed sustainably to support thriving and resilient local communities.

The objectives of the OIRMP are:

1. A clear strategic direction is provided for development, activities and use in the Orkney Islands marine region and there is greater certainty for prospective developers, investors and local communities.
2. Development, activities and use are managed within an ecosystem approach, to protect and, where appropriate, enhance the biological, chemical and physical functioning of the marine and coastal environment, including the management of cumulative impacts.
3. A rapid and just transition to a low-carbon economy is supported to achieve net-zero commitments.
4. Mitigation of, and adaptation to, climate change is supported.
5. Socio-economic benefits and prosperity are delivered for local communities and the wider economy.
6. The well-being of local communities and the amenity of marine and coastal places are protected and enhanced.
7. Reliable information is provided on existing and proposed coastal and marine development, activities, use and assets.
8. Spatial planning and data are provided, enabling sustainable coexistence and synergies between existing and new marine development, activities and use, and the environment.
9. Plan users are assisted in navigating the relevant legislative and policy frameworks more easily and effectively.
10. Local communities are effectively engaged in decisions affecting the Orkney Islands marine region.

The Plan objectives align with the shared vision of the UK and Scottish Governments as set out in the UK Marine Policy Statement and National Marine Plan respectively, for the marine environment: clean, healthy, safe, productive and biologically diverse oceans and seas, managed to meet the long-term needs of nature and people.

The main purpose of the OIRMP is to provide policies and supporting guidance to assist current and future planning, regulation and management of marine and coastal development and activities.

Rationale for Government intervention

The marine environment around Scotland contains a wide variety of important and rare natural features and species, which support a range of valuable goods and services. The National Marine Plan provides a high-level strategic direction to decision-makers in Scottish Waters. Regional marine plans aim to provide a similar strategic direction to decisions within their regions. The OIRMP aims to provide a strategic framework for the management of development and activities in the Orkney Islands marine region, as defined in the Scottish Marine Regions Order 2015, and associated decision-making. By providing this framework, a high level of detail will be available to decisions makers and developers to assist in the planning process, thus improving clarity, improving efficiency and providing more certainty to the consent application processes. It will ensure that decisions within the Orkney Islands marine region will not be made in isolation and will consider both the complex nature and the different uses and users of the marine environment.

The OIRMP vision is that the marine and coastal environment is one that is clean, healthy, safe and productive; the marine and coastal environment is rich in biodiversity and managed sustainably to support thriving and resilient local communities. The Plan will therefore contribute to National Outcomes in the National Performance Framework including for the environment, economy and communities.

Stakeholder Engagement and Consultation

Advisory Group

Regular meetings with the OMPAG have been held to guide the development of the Plan. In addition, general and sectoral specific policy sub-group meetings have been held with environmental, community and industry interests to inform the preparation of all the OIRMP policies, the results of which were reported back to the main advisory group and subject to further discussion and refinement.

The Orkney Marine Planning Advisory Group comprises:

Within Government

Consultation with officials within the Marine Directorate and the wider Scottish Government has been conducted from the outset of the plan-making process. In addition, the following statutory bodies have been consulted throughout the plan-making process and have representation on the OMPAG:

• NatureScot
• Scottish Environment Protection Agency (SEPA)
• Historic Environment Scotland (HES)

Six-monthly reports are provided to the Marine Directorate outlining the progress made in the plan-making process. Orkney Islands Council meet regularly with the Marine Directorate to discuss regional marine plan making matters.

Stakeholder/Community Engagement

Early stakeholder engagement has been undertaken in the form of stakeholder workshops to inform the preparation of the Orkney Islands Marine Region: State of the Environment Assessment (SoEA). This included meetings with island development trusts e.g. Westray and public presentations on North Ronaldsay. As part of these engagement events, participants were able to raise issues and were introduced to the principles of marine planning and the proposed outline for the Orkney marine plan-making process.

The Regional Marine Plan for the Orkney Islands: Statement of Public Participation provides information on the plan making timeline and opportunities for stakeholder engagement.

During April to June 2022, further public engagement events were held in Stronsay, Hoy, Sanday and Westray to engage with island communities on the development of the marine plan. OIC Development and Marine Planning delivered a range of activities in the Stronsay, Sanday and Westray schools to support learning on marine planning, the environment and the purpose of OIRMP. Community engagement workshops were held for mainland communities in Kirkwall, Stromness and St Margaret’s Hope.

Through these early engagement methods, opinions and comments were sought on a variety of issues including opportunities and challenges for business growth and locations where economic growth is considered less suitable.

Formal public consultation

A public consultation on the Orkney Islands Regional Marine Plan: Consultation Draft was held from 1 August to 25 October 2024. This consultation included a Strategic Environmental Assessment (SEA), Habitats Regulations Appraisal (HRA), partial Business and Regulatory Impact Assessment (pBRIA), Equalities Impact Assessment (EqIA), Child Rights and Wellbeing Impact Assessment (CRWIA) and Island Communities Impact Assessment (ICIA). Stakeholder workshops, public drop-in sessions and individual meetings with stakeholders have and will continue take place to discuss the Plan and supporting assessments.

Engagement with businesses

Representatives from relevant sectors have frequently been involved in the development of the Plan’s aims, objectives and policies throughout the development of the Plan. Representatives from many business sectors are represented on the OMPAG, as outlined above e.g. aquaculture, oil and gas, harbours, commercial fishing, tourism and recreation and the local marine supply chain.

In February 2022, sector policy subgroups were set up to support the preparation of all the Plan’s sector policies i.e. for fishing, aquaculture, harbours and shipping, cables, renewable energy, zero carbon fuels/oil and gas and tourism and recreation.

In addition, several informal meetings have been conducted with businesses and industry organisations. These include the Orkney Shellfish Hatchery, European Marine Energy Centre, Scottish and Southern Energy Networks, Orkney Sustainable Fisheries, Orkney Regional Inshore Fisheries Group, Salmon Scotland, Orkney Islands Council Marine Services, Orkney Marinas and Visit Orkney.

Initial discussions with the businesses and industry organisations indicate that the predominant concerns are:

• the need to strike an appropriate balance between sustainable economic growth and the conservation of the natural and historic environment e.g. the impact of European sites, and associated regulation, on their ability to develop business opportunities. European sites (Special Protection Areas and Special Areas of Conservation) are afforded protected by Scottish Law under Conservation (Natural habitats, & c.) Regulations 1994.
• the need for infrastructure to support sustainable economic growth e.g. piers and harbours.
• the ability for businesses to coexist in an increasingly busy marine space.
• the need for greater clarity and certainty when seeking consent for marine development and activities.
• the need to access new markets.

As part of the initial Orkney Islands Marine Region: State of the Environment Assessment, business-specific questionnaires were publicised and circulated to gather baseline information on business and economic activities. The information received informed the data in Section 6: Productive seas and coasts in the assessment.

As part of the formal consultation on the Orkney Islands Regional Marine Plan: Consultation Draft interview meetings have been held with six businesses from across Orkney’s marine economy. These meetings were held between November and December 2024. Businesses involved in these discussions included those potentially affected by the OIRMP from a range of sectors:

• Fish Processing
• Aquaculture
• Tourism
• Renewable energy

The meetings focused on drawing out the potential business impacts associated with the implementation of the OIRMP including the identification of potential costs and benefits.

Face-to-face discussions were conducted with businesses representing various sizes and sectors. Questions relating to the potential costs and benefits of implementing the OIRMP, and questions relating to competition assessment and business size were covered in the interviews as detailed in the questionnaire (Appendix 2).

Further engagement with fishing, aquaculture, ports and harbours, and recreation businesses has been carried out utilising industry organisation networks via the OMPAG and regular stakeholder updates to c. 360+ stakeholders to disseminate information about the OIRMP and collect and collate any responses. The results of the informal and formal consultation with businesses, including any results obtained during the public consultation, will form the main part of the Scottish Firms Impact Assessment.

Options

The options to be considered in this BRIA are:

1. Option 1. Do nothing: continue under the current approach to marine planning and management including using the Pentland Firth and Orkney Waters Marine and Spatial Plan (PFOW MSP) that was adopted as non-statutory planning guidance in 2016, the National Marine Plan and National Planning Framework.
2. Option 2. Use the policies within the PFOW MSP to form a regional marine plan without updates or additions.
3. Option 3. Adoption of the OIRMP after stakeholder engagement on the preparation of the policies guided by the public consultation and further engagement with stakeholders.

Option 1 Do nothing Appraisal

Continue under the current approach to marine planning and management including using the PFOW MSP as non-statutory planning guidance, National Marine Plan and National Planning Framework.

Under this option a regional marine plan would not be developed/adopted and there would be no change to current arrangements. As the PFOW MSP is non-statutory it does not carry the same weight in decision making as a statutory regional marine plan and would therefore provide less certainty in decision making.

The PFOW MSP has been adopted by the Scottish Government, Highland Council and Orkney Islands Council as non-statutory planning guidance. The Plan has not been adopted by other decision makers. This option therefore potentially creates inconsistency and uncertainty in decision making.

Option 1 does not bring marine planning in Orkney in alignment with:

• the provision for Regional Marine Planning set out in the Marine (Scotland) Act 2010, National Marine Plan or the National Planning Framework.

Option 1 is not perceived as a viable option

Option 2: Use the policies within the PFOW MSP to form a regional marine plan without updates or additions

Under this option the PFOW MSP would be put forward unamended, to be adopted as a regional marine plan. This option would place the existing local marine planning framework on a statutory footing. However, this would not allow for the review and refinement of the objectives, policies and supporting data in light of changing legislation, priorities, opportunities, challenges and new data. This option would not align with current national policy or deliver local community objectives and priorities.

Option 2 does not bring marine planning in Orkney in alignment with:

• the provision for Regional Marine Planning set out in the Marine (Scotland) Act 2010, National Marine Plan or the National Planning Framework.

Option 2 is not perceived as a viable option

Option 3: Adoption of the Orkney Islands Regional Marine Plan (Preferred Option)

After stakeholder engagement on the preparation of the policies guided by the public consultation and further engagement with stakeholders.

Under this option an OIRMP will be prepared giving all stakeholders the opportunity to contribute towards setting objectives and policies to achieve sustainable development in the Orkney Islands marine region. This option will ensure that regional marine planning policy in Orkney contributes towards national priorities and outcomes e.g. climate change mitigation and adaption, reversing biodiversity loss and sustainable economic development. It would also ensure that the impacts of the Plan would be fully assessed via SEA, HRA, ICIA, BRIA, CRWIA and EqIA.

Option 3 is the preferred viable option

Sectors and groups affected

A range of sectors will be affected by the adoption of the OIRMP:

• Developers including renewable energy, ports and harbours, oil and gas, aquaculture and all other development and activities requiring authorisation from a public authority. These developments and activities could be Scottish-owned, rest of UK-owned or foreign-owned;
• Marine users exercising use under a public right or use that does not require authorisation from a public authority e.g. shipping/navigation or recreational activities;
• Commercial fishing and processing businesses;
• Public bodies and regulators/authorities discharging statutory duties, and;
• Local communities and businesses.

Benefits

Option 1. Do nothing

No additional benefits are expected to arise from this option. The potential benefits to businesses from this option is that they would continue to work to existing arrangements. There would therefore be no direct additional costs.

Although national marine planning policies are over 10 years old and may become outdated and not reflect current national or regional priorities on policy matters, for example, climate change and nature. This could lead to possible uncertainty and delays to the preparation of development proposals and decision making on planning or consent applications. Such uncertainties would likely have significant impacts on businesses and could lead to greater costs in bringing forward development proposals. On balance, the potential benefits are anticipated to be outweighed by the potential risks and costs to businesses.

Option 2: Use the policies within the PFOW MSP

No additional benefits are expected to arise from this option.

The potential benefits to businesses from this option is that they would continue to work broadly to existing arrangements. There would therefore be no direct additional costs. Although, the PFOW MSP is nine years old and may not reflect current national or regional priorities on policy matters, for example, climate change and nature. This could lead to possible uncertainty and delays to the preparation of development proposals and decision making on planning or consent applications. Such uncertainties would likely have significant impacts on businesses and could lead to greater costs in bringing forward development proposals. On balance, the potential benefits are anticipated to be outweighed by the potential risks and costs to businesses.

Option 3: Adoption of the Orkney Islands Regional Marine Plan

Adopting and implementing the OIRMP will provide an up-to-date statutory policy framework for decision making and help to deliver the following benefits:

• A reduction in authorisation uncertainty and the associated risk to investment in development and activities.
• The provision of statutory policies and supporting spatial guidance to inform site selection process for development and activities.
• Efficient use of Orkney’s marine space and resources.
• Reduced conflict between existing marine users and future/existing development and activities.
• Increased stakeholder engagement and involvement of local communities in setting objectives and policy.
• Compliance with plan policies can help businesses to demonstrate their social licence to operate by delivering for example socioeconomic benefits, contribution to renewable energy targets and supporting research and development.
• Greater clarity and consistent implementation of protection of internationally, nationally and locally important nature conservation and biodiversity sites and interests.
• Incorporation of environmental, economic and community objectives into the planning process and decision making.
• Improvement in the natural environment and sustainability would result in potential benefits to businesses.

The identification of these benefits has been informed by responses to the public consultation on the OIRMP and the BRIA meetings with businesses.

Costs

Option 1: Do nothing

This option would not create direct additional costs to the sectors and groups identified in this BRIA as none of the existing policies or associated costs would change.

However, developers could experience a lack clarity and uncertainty with licence applications/decisions, due to differences in local and national policy, which could result in inefficiencies in project development and assessment, and higher costs.

Option 2: Use the policies within the PFOW MSP to form a regional marine plan without updates or additions

Under this option the PFOW MSP would be put forward unamended, to be adopted as a regional marine plan. This would not allow for the review and refinement of the objectives, policies and supporting data in light of changing legislation, priorities, opportunities, challenges and new data. There is potential for this option to provide outdated information to developers on the legislative requirements and create unforeseen costs and delays in licensing and consenting processes.

Option 3: Adoption of the OIRMP after stakeholder engagement

The OIRMP updates many existing policies in the PFOW MSP and creates new policies where appropriate. All policies have been either updated, replaced or amended to meet the OIRMP objectives, align with national/local policy and the current legal framework providing greater clarity and further guidance.

The OIRMP will be a statutory marine plan once adopted by Scottish Ministers after a statutory public consultation. The policies within the Plan may influence:

• The preparation of consent/licence applications by developers.
• The assessment of consent/licence applications by public authorities.
• The choice of location of marine developments and activities.
• Specific requirements for the construction, operation, expansion and decommissioning of marine developments and activities.

The potential impact and costs specifically associated with the implementation of the OIRMP has been assessed and recorded, based on each policy, as shown in Table 1 below.

The OIRMP policies should be applied proportionately by public authority decision makers, as detailed in Section 1 of the Plan. Section 1 of the Plan states that ‘decision makers need to consider whether the type, location and/or scale of a development or activity, and its associated impacts or effects, justify the application of a specific policy or a provision within a policy’, and that ‘the level of detail required to demonstrate compliance with Plan policies should be proportionate to a proposal’s scale and potential impacts, and in accordance with any relevant assessment requirements’. This approach has been taken so that a reasonable and proportionate approach is taken by decision makers when implementing the Plan policies. This is intended to appropriately manage potential costs for consent applicants (e.g. smaller projects/applications by small businesses) whilst ensuring a robust approach to the assessment of the impacts and benefits associated with development or activities proposals.

OIRMP policies may require additional assessment by developers resulting in additional costs, for example, in the form of employee time or consultancy costs. The additional nature of any assessment requirements for developers, and associated costs, are considered in Table 1. It should be noted that OIRMP policies may provide further clarity on existing assessment requirements, for example, existing assessments required under the NMP, NPF4, OLDP or PFOW MSP. Where this is the case, the implementation of OIRMP policy may not result in additional costs over and above existing requirements. The OIRMP could result in cost reduction by providing further clarity on existing assessment requirements.

Following the consideration of relevant responses received during the formal consultation process, the OIRMP and its policies have been re-assessed and modified, as appropriate.

During the consultation process and face-to-face meetings with businesses, respondents stated it was hard for them to quantify costs at this time, therefore a qualitative approach has been taken, as appropriate.

Table 1: Potential impacts, on business, of policies contained within the Orkney Islands Regional Marine Plan

Other Costs

The structured BRIA interviews with businesses investigated the potential for other costs not directly associated with a specific policy or policies. Businesses interviewed raised concerned about potential additional administrative process and costs rather than direct impacts on their day-to-day operational costs. They were concerned about the possibility of overlapping policy requirements from different regulating authorities. Businesses were concerned that this could cause delays and additional costs when navigating multiple regulatory frameworks.

These views from businesses regarding overlapping policy requirements from different regulating authorities have been carefully considered. In accordance with OIRMP objective 9, the plan policies have been prepared to assist plan users to navigate the relevant legislative and policy frameworks more easily and effectively.

Another concern raised was the amount of evidence needed to support applications, particularly when it came to potential additional survey requirements resulting from the OIRMP policies. Businesses identified that additional requirements could potentially lead to higher costs and time delays. This was attributed to the OIRMP policy emphasis on environmental protection and climate change, which could create further requirements for evidence in applications to ensure compliance.

These views from businesses regarding additional survey costs have been assessed under the relevant policies in Table 1.

Scottish Firms Impact Test

This section has been informed by the evidence gathered during the formal consultation held from 1 August to 25 October 2024. The consultation process involved consultation and meetings with six businesses of different sizes and sectors that are likely to be affected by the Plan’s policies. This engagement with business was undertaken to quality assure the assessment of cost or benefit to businesses and to build on consultation feedback from business in response to the formal consultation.

Face-to-face discussions were conducted with businesses representing various sizes and sectors. Questions relating to the potential costs and benefits of implementing the OIRMP, and questions relating to competition assessment and business size were covered in the interviews as detailed in the questionnaire (Appendix 2).

Policies within the OIRMP may affect a variety of marine developments and activities, specifically those which already require a licence to carry out new activities or for amended operations such as renewable energy developments, aquaculture sites, ports and harbours.

Sectors affected by the Plan include small/micro businesses. The consultation has further informed the final BRIA and the impact of Plan policies on small/micro businesses and self-employed.

Small Business Impact Assessment

The BRIA process has included an assessment of impacts on small businesses.

Feedback received from small businesses interviewed and via the formal consultation includes:

• Concerns were raised that larger businesses are increasingly being used by developers in Orkney rather than smaller local supply chain businesses. The approach taken in General Policy 4 was broadly supported by small businesses interviewed as part of the BRIA process.
• Orkney lacks the infrastructure to support small scale businesses that operate in the marine environment. For example, there are limited suitable cranes or boat lifts, making it extremely expensive and difficult to service vessels. Views were expressed that available infrastructure is mostly utilised by larger businesses such as aquaculture and renewables. It was suggested that the OIRMP should encourage better local infrastructure, if possible.
• Concerns were raised that development investment is being secured by companies outwith Orkney. It was suggested that procurement policies need to prioritise the use of local companies and that OIRMP policy requiring the use of local supply chains needs to be stronger.
• Marine decision-making in general does not have the same protections for local companies as land-based decision-making, which was a concern for businesses interviewed.
• Concern that ‘newer’ developments and larger businesses, particularly fish farming and offshore wind farms, are taking workers away from some of the more traditional industries e.g. fishing and farming, and this is decimating local workforces for these traditional sectors.

Careful consideration has been given to the issues raised by small businesses as part of the Small Business Impact Assessment. The key policy provisions that addressed the issues raised are:

• General Policy 4 makes provision for developers to demonstrate that opportunities have been considered to maximise sustainable employment benefits and create skilled employment in local communities, support local businesses, skills development, supply chains and research and development.
• General Policy 4 includes provisions for the consideration of impacts on local infrastructure, services and other marine and coastal users.
• General Policy 1 makes provision to ensure the effective and efficient use of existing infrastructure and/or services, and that new development and activities will not create an unacceptable burden on existing infrastructure and/or services that cannot be addressed as part of the consenting process.

It has been identified through the consultation analysis that guidance to support the implementation of General Policy 4 would be helpful for developers and decision makers. This policy has been modified to make provide for this guidance. This guidance will aim to address how displacement effects on the local workforce in Orkney should be assessed and potentially mitigated.

Will the measure directly or indirectly impact small businesses in a greater capacity than businesses of greater size?

Limited impact. In light of the OIRMP policy and guidance provisions outlined in this Small Business Impact Assessment, it is not anticipated that the OIRMP will disproportionately impact small businesses to a significant degree compared to businesses of greater size.

Competition Assessment

Policies within the OIRMP may affect a variety of marine developments and activities, specifically those which require consent and/or a licence to carry out new development, activities or for amended operations, such as renewable energy developments, aquaculture, ports and harbours.

Will the measure directly or indirectly limit the number or range of suppliers?

No/Limited impact. It is not likely that the number or range of suppliers will be directly limited by the adoption of the OIRMP. All policies will apply to new and existing developers in equal measure. The policies will not be applied retrospectively to existing consented development or activities.

Will the measure limit the ability of suppliers to compete?

No/Limited impact. The policies within the OIRMP will not directly limit suppliers’ ability to compete. The policies will not affect businesses’ route to market or the geographical markets they can sell to.

Will the measure limit suppliers’ incentives to compete vigorously?

No/Limited impact. The policies within the OIRMP will not directly limit the suppliers’ incentives to compete.

Will the measure limit the choices and information available to consumers?

No/Limited impact. The policies within the OIRMP will not directly limit the choices and information available to consumers.

Will the measure affect suppliers’ ability and/or incentive to introduce new technologies, products or business models?

No/Limited impact. The policies within the OIRMP will not directly limit suppliers’ ability and/or incentive to introduce technologies, products or business models.

Competition Assessment Conclusion

It is concluded that OIRMP will not distort or restrict competition between firms or suppliers selling the same or similar products or services as it does not:

• directly limit the number or range of suppliers;
• indirectly limit the number or range of suppliers;
• limit the ability of suppliers to compete;
• reduce suppliers' incentives to compete vigorously; or
• limit the ability of suppliers to introduce new technologies, products or business models.

The OIRMP General Policy 4 aims to enable incentives to introduce new technologies, products or business models by supporting research and development, and skills development.

Consumer assessment

The OIRMP will not affect the consumer as the quality, availability or price of goods or services in a market are not likely to be affected.

Upstream and downstream assessment

The OIRMP will not negatively impact the businesses upstream and downstream within the local marine supply chain.

Digital impact assessment

The OIRMP has been designed for use in both a digital and non-digital format and can be applied effectively in both a digital and non-digital format. Therefore, no effects are anticipated.

Test run of business forms

No new forms will be introduced.

Legal Aid Impact Test

It is not envisaged that the OIRMP will have any impact on the current levels of justice through availability of legal aid or on the possible expenditure from the legal aid fund.

Enforcement, sanctions and monitoring

Monitoring the effectiveness of the OIRMP will be undertaken as part of the 5-year review process.

Enforcement advice from the Delegate will be provided through responses to marine licence and planning consultations from the relevant regulatory authorities.

Implementation and delivery plan

The Plan will be kept under review to consider the effectiveness of the policies in securing that the Plan objectives, and other relevant matters, in accordance with the Marine (Scotland) Act 2010.

Summary and recommendation

Option 3: Adoption of the OIRMP following public consultation and in accordance with statutory requirements. The final OIRMP has been informed by the public consultation and further engagement with key stakeholders. During the consultation process and face-to-face interviews, businesses stated that the implementation of the plan would have limited additional cost impacts on their sectors. Where potential additional costs were identified by businesses, this BRIA has identified appropriate mitigation to address these matters.

Adopting and implementing the OIRMP will build on the work of the PFOW MSP and help deliver the benefits of a marine planning system as set out in the Final Regulatory Impact Assessment for the Marine (Scotland) Act 2010.

Under Option 3, the OIRMP would be reviewed in accordance with the Marine (Scotland) Act 2010 requirements, providing the opportunity to consider whether the Plan is still fit for purpose.

This option will create consistency between national and local policy and decision making, and the impacts of the OIRMP have been fully assessed via SEA, HRA, ICIA, BRIA, CRWIA and EqIA.

Appendix 1: Acronyms

Appendix 2

Assessing the potential impacts of implementing the Orkney Islands Regional Marine Plan on businesses – A survey to inform the Business Regulatory Impact Assessment

What is the Orkney Islands Regional Marine Plan?

The Orkney Islands Regional Marine Plan will provide a framework for decision making to help deliver the Plan’s environmental, social, economic, marine ecosystem and community well-being objectives, including the provision of social and economic benefits for local communities and businesses.

The Plan will provide a policy framework for public authorities to make decisions on proposed developments and activities and will be used by public authorities in the determination of relevant licences and consents within the Orkney Islands Marine Region.

Orkney Islands Council on behalf of the Scottish Ministers, has developed the Orkney Islands Regional Marine Plan through an inclusive process of partnership working and stakeholder participation. The vision of the Orkney Islands Regional Marine Plan is ‘The Orkney Islands marine region is clean, healthy, safe and productive; Orkney’s marine and coastal environment is rich in biodiversity and managed sustainably to support thriving and resilient local communities’.

What is the relationship between the Orkney Islands Regional Marine Plan and other existing legislation?

The Orkney Islands Regional Marine Plan must be in accordance with Scotland’s National Marine Plan, the UK Marine Policy Statement and will be adopted in accordance with the Marine (Scotland) Act 2010. The Plan does not replace or remove existing regulatory regimes or legislative requirements. It provides a localised overarching framework to be used when reaching decisions about development and activities in the Orkney Islands marine region.

The policies in the Orkney Islands Regional Marine Plan: Consultation Draft aim to add value to the National Marine Plan and other legislation and regulations; based on local priorities and relevant matters identified in the Orkney Islands State of the Environment Assessment (2020). The policies express intent and guide decisions in order to deliver the vision, aims and objectives of the Plan and the delivery of sustainable development in Orkney. Some policies integrate existing regulations to provide clarity to marine users. Other policies provide additional detail to help deliver existing national policies at a regional level.

What is the purpose of this survey?

This survey aims to gather evidence about any potential positive and negative impacts on businesses as a result of implementing the Orkney Islands Regional Marine Plan. Data collected will contribute towards informing the final Business Regulatory Impact Assessment. This data will support an assessment of the potential impacts the Plan may have on businesses. Findings from this survey may lead to further policy updates if appropriate. Initial policy impacts have been assessed in the partial Business Regulatory Impact Assessment which accompanies the consultation draft of the Plan and which can be read here.

START SURVEY

Name of business:

………………………….………………………………………………………………………………

……..

Type of business / sector:

…………………….……………………………………………………………………………….........

...

Location of your business and/or area in which your business operates:

………………………………....................................................................................

Estimated annual turnover (optional) (£):

…………………………………………………………………………….....................................

How many people do you employ in total:

………………………………………………………………………………………..........................

How many people do you employ locally in Orkney:

…………………………………………………………….....................................................

1. POLICY IMPACTS ON BUSINESSES

1.1. OPPORTUNITIES FOR BUSINESSES

1. When thinking about the future of your business, including any intentions you may have to expand/grow, which of the policies in the Plan do you feel might provide benefits or opportunities? Please select a maximum of five policies and for each one, explain briefly why you think it represents an opportunity and/or a benefit. Give examples if possible.

• No opportunity/benefit identified [GO TO 4.]

2. Considering all the potential opportunities and/or benefits listed above, approximately how much benefit do you think your business might gain as a result of the implementation of the Orkney Islands Regional Marine Plan? It is OK to tick an answer in each column if relevant.

• If the benefit of the Plan is unknown or non-economic [GO TO 3]

3. In addition to the opportunities/benefits noted above, do you think the implementation of the Orkney Islands Regional Marine Plan will provide any other opportunities/benefits to your business? Please include any benefits that are harder to valuate/monetise, such as providing greater clarify/certainty in consenting processes, supporting ecosystem services¹ or improved social licence to operate², in your answer. Please quantify the value of the benefit and give examples where possible.

For example, reflect on some of the marine and coastal ecosystem services your business relies on and think about whether the Plan will enhance some of the benefits you receive from these ecosystem services. Thinking about the community in which your business operates, could the Plan help improve your business’ social licence to operate and how could this benefit your business?

Explain benefits/opportunities, with examples if possible

4. Thinking about how your business accesses investment, do you think the implementation of the Plan would positively impact your business’ ability to access investments? i.e. In the absence of the plan would this be more or less straightforward? Does the Plan clarify the probability of success of an investment or not? Does the plan help to de-risk consenting and therefore help to unlock investment?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

5. Overall, do you consider the benefits associated with implementing the Orkney Islands Regional Marine Plan to be:

• Very significant? [ ]
• Significant? [ ]
• Moderate? [ ]
• Insignificant? [ ]

¹ Marine habitats and species provide society with a range of ecosystem services. These include: the provision of food (e.g. fish, shellfish and seaweed); coastal protection; waste breakdown; carbon storage; climate regulation; access to recreation, tourism, education and research opportunities; and improved water quality.

² A social license to operate refers to the perceptions of local stakeholders that a project, a company, or an industry that operates in a given area or region is socially acceptable or legitimate.

1.2. COSTS TO BUSINESSES

6. When thinking about the future of your business, including any intentions you may have to expand/grow, which of the policies in the Plan do you feel might provide additional costs and/or risks and why? Please select a maximum of five policies and for each one, explain briefly why you think it represents a cost and/or risk. Give examples if possible. Many of the plan policy aim to clarify existing requirements. Consideration should be given to the extent to which the plan policies do or not introduces new requirements.

• No cost/risk identified [GO TO 8.]

7. Considering all these potential costs and/or risks together, please indicate the approximate extra cost to your business associated with the implementation of the Orkney Islands Regional Marine Plan. Treat a loss of income as an extra cost. It is OK to tick an answer in each column if this is relevant.

8. In addition to the costs/risks noted above, do you think the implementation of the Orkney Islands Regional Marine Plan will provide any other costs/risk to your business? You may want to include costs/risks that are harder to valuate/monetise, such as reputational damage if policies are not adequately adhered to or unknown additional costs associated with changes in technological requirements/staff capacity/additional research, in your answer. Give examples where possible.

Explain costs/risks, with examples if possible

9. Thinking about how your business accesses finance/investment, do you think the implementation of the Plan would negatively impact your business’ ability to access finance and/or investments?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

10. Overall, do you consider the costs (or losses) associated with implementing the Orkney Islands Regional Marine Plan to be:

• Very significant? [ ]
• Significant? [ ]
• Moderate? [ ]
• Insignificant? [ ]

2. COMPETITION ASSESSMENT

Competition is a process of rivalry between businesses within industries and, where it is effective, encourages businesses to deliver benefits to consumers in terms of lower prices, higher quality and more choice. The impact on consumers should be noted, for example when their access to goods or services is restricted or is likely to become more expensive. When considering the impact of policies, the effect on the ability of businesses to compete in the market and what effect this might have on consumers should be considered.

11. Within your industry, do you think there are any competition related impacts within the Plan?

• Yes [GO TO 12]
• No [GO TO 3]

12. Within your industry, do you think the Plan will directly or indirectly limit the number or range of suppliers within your sector/industry? e.g. will the Plan result in exclusive rights to a supplier or significantly raise the cost of existing suppliers relative to new suppliers and cause them to exit the market?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

13. Within your industry, do you think the Plan will limit the ability of suppliers to compete? e.g. will the Plan reduce the geographic area a supplier can operate in compared to other suppliers, or substantially influence the price a supplier may charge?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

14. Within your industry, do you think the Plan will reduce suppliers’ incentives to compete vigorously? Will it encourage or enable the exchange of information on prices, costs, sales or outputs between suppliers?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

15. Within your industry, do you think the Plan will limit the choices and information available to consumers? Will it limit the ability of consumers to decide from whom they purchase?

• Yes [ ]
• No [ ]

Explain why, with examples if possible

16. Within your industry, will the Plan affect suppliers’ ability and/or incentive to introduce new technologies, products or business models? e.g. will the Plan limit the prospect of future innovation?

Explain why, with examples if possible

3. IMPACTS ON BUSINESSES BY SIZE

3.1. INTRODUCTORY QUESTION

17. How many employees does your business have?

• Self-employed [GO TO 3.2]
• <10 employees (micro business) [GO TO 3.2]
• 10 – 49 employees (small business) [GO TO 3.2]
• 50 – 249 employees (medium-sized business) [GO TO 3.3]
• 250+ employees (large business) [GO TO 3.3]

3.2. IMPACT ON SMALL AND MICRO BUSINESSES

18. Thinking about how your small/micro business operates, which of the policies in the Plan would benefit your business more than businesses of greater size and why? Please select a maximum of five policies and for each one, explain briefly why you think it will positively impact your small/micro business.

• No positive impact identified [GO TO 19.]

19. Thinking about how your small/micro business operates, which of the policies in the Plan would negatively impact your business more than businesses of greater size and why? Please select a maximum of five policies and for each one, explain briefly why you think it will negatively impact your small/micro business.

• No negative impact identified [GO TO 3.3]

3.3. IMPACT ON ALL BUSINESSES

20. Does your business have a good understanding of some of the upstream and downstream businesses within your sector/industry?

Upstream and downstream businesses refer to different stages in a supply chain or production process:

• Upstream activities occur earlier in the process, such as raw material production (e.g. equipment providers).

• Downstream activities happen later in the process, such as refining, distribution, and sales (e.g. fish processing plants, supermarkets).

• Yes [GO TO 3.4]

• No [GO TO 3.5]

3.4. IMPACT ON DOWNSTREAM AND UPSTREAM BUSINESSES

21. Given your understanding of some of the downstream and upstream businesses within your sector/industry, do you think the implementation of the Orkney Islands Regional Marine Plan will positively and/or negatively impact these businesses? Please explain why you think the Plan would positively and/or negatively impact some businesses and which businesses would be impacted (either specific businesses or types of businesses, e.g. fish processing plants).

• Positive impact(s) [ ]
• Negative impact(s) [ ]
• Both positive and negative impacts [ ]

Explain why, with examples if possible

3.5. FURTHER INFORMATION

22. Do you have any further comments, or would you like to provide additional information? For example, complete the box below if you would experience losses or benefits if the Orkney Islands Regional Marine Plan is NOT adopted and implemented. Give examples if possible.

To find out how Orkney Islands Council handles your personal data, please see our privacy policy. By providing your response, you are agreeing to the privacy policy.

IMAGE: The final page displays the Orkney Islands Council and Scottish Government logos beside the text “This publication is available at www.orkney.gov.uk” and “Published by Orkney Islands Council 2026.”