OECD Rural Policy Review Scotland

1. OECD Rural Policy ReviewScotland Rural Development Council Inverness 8 September 2008

2. “The environment is one of Scotland’s chief assets – a source of natural capital that can drive broad-based sustainable growth” Alex Salmond Aug 2008

3. Recent reviews to guide us • A Charter for Rural Communities – Carnegie Commission • Rural advocacy in Scotland – Scottish Consumer Council • Rural Scotland: Better Still, Naturally – Scottish Executive • Rural Policy Review, Scotland – by Organisation for Economic Co operation and Development

4. Strengths • Rural areas in Scotland show better socioeconomic and wellbeing indicators than urban areas: • Accessible rural areas have the highest levels of income. • £22,010 (114%) in accessible rural areas, • £19,878 (103%) in remote rural areas • £18,867 (98%) in the rest of Scotland. • Rural areas show comparable or better health standards and practices than urban areas: • Life expectancy 3 years higher, • Cancer and emergency admissions lower • Prevalence of smoking and drug use lower

5. Strengths • Higher tertiary educational attainment figures • Predominantly rural regions 32% • Intermediate 27% • Urban regions 28% • Scotland’s rural regions have the highest levels of tertiary education attainment for predominantly rural regions in the OECD. • Rural areas have higher employment (79%) and lower unemployment (3%) than urban areas.

6. Strengths • Higher perceived liveability and neighbourhood safety. • Higher levels of home ownership • Rural 33% • Urban 25% • Net receivers of population • 19% in 2001 • 21% in 2004

7. Weakness • Problem of economic development in remote rural areas, • Help SMEs with human resource and IT development • Improve services for potentially expanding businesses • Better target support to avoid market distortions Action in hand • Enterprise networks in the Highland and Islands and South of Scotland have been reformed and operations streamlined in order that they can make the greatest impact in the areas most in need of support

8. Weakness • Lack of integration of policy design (rural, regional and sectors) • Weak; no unified vision; over centralisation; lack of bottom up participation; proliferation of approaches; plurality of operational classifications of rural areas for policy purposes contributes to complex delivery mechanisms. Action in hand • New SRDP based on clear programme objectives, based in national outcomes and vision of sustainable economic growth • Regional engagement and decision making within SRDP based on policies joined up with local authorities, enterprise network etc (part of Single Outcome Agreement approach) • Looking to move boundaries of agencies to a common set, based on local authority boundaries (SEARS priority) and reducing number of bodies • Work commissioned on rural KPIs for rural Scotland should help clarity of approach

9. Weakness • SRDP • Too high expenditure on agriculture. • LFAS too narrow in focus. • Too much focus on environmental issues at the expense of wider rural development Action in response • Scale of support to wider rural development and community based activity depends on quality of applications and relevance to national and local outcomes • LFAS about to be subject to consultation, so stakeholders can consider if too narrow • New LEADER networks need to help determine local priorities between rural development and environment

10. Distribution of funding

11. Weakness • Service delivery to rural areas • Challenges in delivery must be addressed if rural Scotland is to thrive Action in hand • Under Concordat, responsibility given to local government • Scrapping of specific grants creates new freedoms to deliver where needed • Community Planning Partnerships being brought in

12. Weakness • Scotland’s rural policy would benefit by more circulation of good practices • Internally amongst stakeholders, community groups • Externally – we can learn from other countries. Action in hand • Considering creation of Scottish National Rural Network • Learned from “Rural Parliament”, Swedish style • Drawing on learning from OECD, EU conferences

13. Weakness • Land use regulation is inflexible • Lack of interest in diversification. • Lack of affordable housing. Action in hand • Land Reform Act measures being monitored • Planning policies being updated in new development plans across Scotland • Government encouraging rural diversification in those plans • Crofting Inquiry published; action to be considered • New planning guidance issued encouraging affordable housing provision • Rural Homes for Rent pilot

14. Weakness • ‘Governance of forests’ is needed to balance differing needs • Research for a better base for decisions on support schemes Action • For consideration in land use review

15. Challenge • Need to support niche tourism based on area specific activities Action in hand • Forestry Commission mountain biking • VisitScotland Adventure Pass • Homecoming 2009 • LEADER groups and National Parks

16. Challenge • Renewable energy sources • Have considerable potential • Must be handled carefully: balance environmental impact and economic development Action • SG about to publish plan showing how renewables target will be reached • Decision process accelerated • First Minister enthusiastic about micro hydro schemes • New Planning Advice Note on dealing with renewable energy applications • Western Isles study

17. Challenge • Too much concentration on the north of Scotland at the expense of the south Action • Not convinced that this is true • Single Scottish Enterprise Region for South of Scotland created