DIFFER ENTIAL DEVOLUTION

1. COSLA CONFERENCE 2014 DIFFERENTIAL DEVOLUTION A perspective of the Islands Councils Dr Steven Heddle Leader, Orkney Islands Council

2. Our premise • One size does not fit all • Nor should it • Article 174 • Montgomery • Localism • Lerwick Declaration – a response to our campaign

3. Demonstrably things are different in the Islands • Geography • Range of issues • and a range of issues…

4. Range of Services Harbour Authority

5. Range of Services Nine Inter-Islands Ferries – serving our Island Communities 300,000 plus passengers a year 3,000,000 litres of fuel 14 MWh ‘round trip’ fuel burn

6. Range of Services Renewables “At no other site in the world would you find such an array of tidal energy devices than at the quay at Hatson” Eileen Linklater – Client Relationship Manager at the European Marine Energy Centre (EMEC)

7. Range of Services Oil Port

8. Range of services Internal Air Services and Airfields Eday North Ronaldsay Papa Westray Sanday Stronsay Westray

9. And culturally as well

10. In reality local government has been different here • Always unitary authorities since 1974 • Limited extra powers • Orkney County Council Act • Zetland County Council Act • Shetland Shellfish Act

11. We’ve seen too much centralisation over time • Tax • Customs • Coastguard • Lighthouse Board • Local Enterprise Control • Police and Fire • What next?

12. What else are we planning to do?

13. We have a once in a lifetime opportunity to establish the place of the islands in this country, and we would not be forgiven if we missed this opportunity. Western Isles Shetland Orkney A COMBINED VOICE

14. 17 June 2013 Launch of Our Islands Our Future 19 & 20 September 2013 Our Islands Our Future Conference in Kirkwall 24 June 2013 29 August 2013 Support from the Islands Commission First meeting of the Island Areas Ministerial Working Group 25 July 2013 Scottish Govt. ‘Lerwick Declaration’ and Ministerial Working Group 14 August 2013 UK Secretary of State for Scotland invites Islands Leaders to talk “...my strongest feeling leaving Orkney was a strong sense of pride that our local politicians had stood together for their own and each other’s communities” An Island delegate

15. 17 February 2014 14 & 15 October 2013 Fourth Meeting of the Island Areas Ministerial Working Group Westminster Discussions – Secretary of State for Scotland and UK Ministers 29 November 2013 14 November 2013 31 January 2014 Stornoway Discussions – Secretary of State for Scotland Three Leaders named Herald’s Scottish Local Politician of the Year Formal Talks with Scottish Labour – the Leaders meet with Sarah Boyack MSP and David Stewart MSP 29 October 2013 Second Meeting of the Island Areas Ministerial Working Group 21 November 2013 Third Meeting of the Island Areas Ministerial Working Group “These islands have been quick off the mark. I like this initiative. It represents a lesson for other parts of Scotland.” Professor James Mitchell University of Edinburgh

16. DRAFT PROGRAMME MANAGEMENT – WORK STREAMS GOING INTO 2014 June – December 2013 2014 2015 - 2016 Local Media interviews / press releases / key achievements Develop and implement Public Engagement Recognisable Branding and Logos LOCAL Updates to Partners at Community Planning Partnership Meetings Our Islands-Our Future Conference Kirkwall 19 & 20th September 2013 Elected Member / Staff Newsletter Scottish Government Discussions “CHINESE WALL” Lerwick Declaration: 24 July 2013 – announcement of Island Areas Ministerial Working Group 1stIAMWG 29.08.13 Crown Estate 2ndIAMWG 29.10.13 Marine Planning Energy – Oil, Gas & Renewables Island Proofing 3rd IAMWG 21.11.13 Enterprise Responsibilities Fishing Aquaculture Crown Estate (return of paper) 4th IAMWG 17.2.14 5th IAMWG 24. 05.14 6th IAMWG 24. 05.14 Purdah 21.08.14 VOTE 18.09.14 SG VOTE 5.05.16 Draft Prospectus Conversion Work (YES VOTE) for Prospectus promises or detailed negotiation to convert areas related to devolved matters (NO VOTE) (based on principle of ‘no reason to refuse’ ). Scottish Government New Papers Workplan Consideration of offer by Islands Councils Returning Papers Act for the Islands Ongoing research, briefing papers , lobbying & negotiation Ongoing research, briefing papers , lobbying & negotiation Ongoing research, briefing papers , lobbying & negotiation Develop discussions and secondary work streams with other major political parties (awareness of the Scottish Parliament Elections in May 2016) Our Islands Our Future Launch 17 June 2013 UK Government Discussions “CHINESE WALL” UK VOTE 7.05.15 Programme Management Activity – planning ‘opportunity’ & ‘quick wins’ 14 & 15.10.13 Meetings with the UK Government / Scotland Office 29.11.13 Meetings with the Scotland Office – planning Ongoing longer-term goals Work Streams: Public Sector Change, Ofgem, Energy, Crown Estate, Europe UK Government Conversion of ‘’quick wins’ prior to September 20134 New Work Streams: e.g. Innovation, Trade and Industry (UKTI) Identifying opportunity Ongoing research, briefing papers , lobbying & negotiation Ongoing research, briefing papers , lobbying & negotiation Develop discussions and secondary work streams with other major political parties (awareness of the UK Parliament Elections in May 2015) UK Government support to open doors into Europe 14 & 15.10.13 European Opportunities - Scotland Office, FCO, and Cabinet Office • Potential meetings in Brussels: • Support for the Principles – Articles 5, 170 and 174 • Support for EU Charter of Local Self Government (implementation) • Representation in Europe • Role in influencing policy EUROPE Negotiate and drive change Ongoing research, briefing papers , lobbying & negotiation Ongoing research, briefing papers , lobbying & negotiation

17. Campaign Area 1: Focus of Campaign a c d FOCUS Area 1: Marine Resources & Energy Growth Greater Local Control of Overall Marine Resources Local Authority direction of sea-bed resources ‘Resource Rights’ – e.g. Aquaculture, sea water resource rights Marine Spatial Planning, Marine Scotland – local control (Article 5) Crown Estate Article 174 • Key elements • Crown Estate • Sea bed / territorial – ownership / use / investment • Planning • Environmental Issues • Oil & Gas exploration • Key elements • Sea bed ownership – including minerals etc. • Key elements • Marine Scotland – Marine planning • Consent processes b f Renewable Energy Obligation Certificates Regional Government means ‘regional’ – EU principle re: Energy (Article 170) • Key elements • Renewable Obligation Certificates • Transmission Charges • Key elements • Transmission charge parity • Electricity infrastructure parity • Investment and legislation • International North Sea Power Grid • Interconnector g • Key elements • Fishing Rights • Territorial Waters • Sea Fish Levy • Inshore Fisheries – control & regulation Fisheries Control of Inshore Fishing h Aquaculture Aquaculture – costs, transport Oil & Gas Marine tourism, recreation, culture and heritage In progress: further phase of work being developed Environmental management and protection in the marine area e • Key elements • Blue Economy Rights Other Areas Blue Economy SHEET 2 Campaign Area 1 Components 14 August 2013

18. Campaign Areas 2 and 3: Focus of Campaign a FOCUS Area 2: Constitutional Status & Public Sector Change An Act for the Islands • Key elements • Status embodied in legislation • Local Act powers • Competences • Parliamentary boundaries b Article 174 • Key elements • Island Article 174 status • Recognition at Government Level (Art. 174) • Local Govt. as regional tier of government • EU relationship/representation • Access to EU funding and mechanisms for distribution c Democracy “A New Body” • Key elements • Public sector structures • Public Service Reform • Local efficiency d Funding, Revenue, Sustainability • Key elements • Taxation and revenues • Sea-bed rights and revenues • Funding Settlement • Ship Registry • Fishing Boat Licensing e Proportionality, Specific Measures for Islands, The ‘neighbour authorities’ principle • Key elements • State Aid • Marine Planning • Land Based Planning • ‘Island Proofing’ • Insularity / Rural Deprivation • Right of Appeal f Subsidiarity in our own area • Key elements • Article 5 “Subsidiarity Principle” a Area 3: Economic Drivers and Island Wellbeing Greater Subsidiarity • Key elements • Article 5 • Crown Estate • Planning • Public Service reform • Enterprise responsibilities • European Programmes and Funding • Transport Bodies • Island Ferry Services • Local Taxes / Revenue • Tax levies b • Key elements • Legislative protection e.g. Island Strike Price • Universal Service – postal • Next Generation Mobile Services • Universal Broadband Services • Road Equivalent Tariff • Air Discount Scheme • Article 170 A Level Playing Field c An Islands Innovation Zone • Key elements • Islands Innovation Zone • Levy on energy production (Island retention) • Community Benefit • Air Passenger Duty exemption • Aggregate Levy In progress: further phase of work being developed SHEET 3 Campaign Areas 2 and 3 Components 14 August 2013

19. DRAFT Work Plan: Ministerial Working Group – input from the Campaign Areas • The Overall Package – what it now looks like and tying up the loose ends • The Final Report Economic Drivers, Innovation Zones, Funding and Revenue, Role of HIE, Article 170 Principles (Trans European Networks – Transport) Island Wellbeing, Culture and Level Playing Field, Article 174, Article 170 Principles (Trans-European Networks – Communications) Constitutional Status and Public Sector Change, EU Relationship and Representation Energy Growth (Oil, Gas, Renewables), Marine Planning and Article 170 Principles (Trans European Networks – Energy Infrastructure) Crown Estate and Marine Resource Management Aug. 1 Sept. Oct. 2 Nov. 3 Dec. Jan. Feb. 4 Mar. 5 Apr. May. June. 6 2013 2014 a Input from all Campaign Areas / all subject areas Marine Spatial Planning, Marine Scotland – local control (Article 5) Crown Estate Article 174 Local Authority direction of sea-bed resources c ‘Resource Rights’ – e.g. Aquaculture, sea water resource rights f Regional Government means ‘regional’ – EU principle re: Energy (Article 170) d Marine Spatial Planning, Marine Scotland – local control (Article 5) Crown Estate Article 174 g b Control of Inshore Fishing Marine tourism, recreation, culture and heritage Article 174 d Funding, Revenue, Sustainability h Oil & Gas Aquaculture – costs, transport Environmental management and protection in the marine area a e An Act for the Islands e Proportionality, Specific Measures for Islands, The ‘neighbour authorities’ principle Blue Economy b b b Article 174 Article 174 b Article 174 f Article 174 Subsidiarity in our own area d d c a Funding, Revenue, Sustainability Funding, Revenue, Sustainability Greater Subsidiarity Democracy “A New Body” c f Democracy “A New Body” b A Level Playing Field Subsidiarity in our own area f a d Subsidiarity in our own area c Funding, Revenue, Sustainability An Islands Innovation Zone d Greater Subsidiarity Funding, Revenue, Sustainability a Greater Subsidiarity e Note: These are the Subject Areas from which the ‘key elements’ are drawn for each meeting Proportionality, Specific Measures for Islands, The ‘neighbour authorities’ principle e Proportionality, Specific Measures for Islands, The ‘neighbour authorities’ principle b A Level Playing Field SHEET 4 Work Plan – input from Campaign Areas (Subject Areas) 14 August 2013 f c An Islands Innovation Zone Subsidiarity in our own area f Subsidiarity in our own area a Greater Subsidiarity b A Level Playing Field

20. Crown Estate – looking to ensure revenues remain on the islands Oil & Gas – community benefit for the Islands Renewables – community benefit and supporting the sector Community Benefit – to support services, to support communities Marine Planning – more local influence and control “Island Proofing” – making sure common sense prevails Economic Drivers and Enterprise – business support and jobs Fisheries, Agriculture, Crofting – support for our traditional industries Aquaculture – community benefit for the Islands Islands Innovation Zone – attracting funding and new businesses Transport – a fair deal

21. Tourism – supporting and growing a key sector Engineering and Construction – levelling the playing field Digital Connectivity – faster, more, better coverage Special Status in Europe Single Public Authority – more efficient, local delivery Legal & Constitutional Status – ensure we have a Council in the future Funding Settlement and Revenues – money to run our services State Aid – recognising the difficulties our Islands face Land Based Planning – local decision making and the right of appeal Culture and Creative Industries – recognising just what is so special …and much, much more …

22. Five main themes • Local control and local decision making • Community Benefit • Island Proofing • Better representation and a closer working with Europe • Constitutional Status and Public Sector Change

23. Our asks to government are: • Reasonable and well founded • Not unusual when you consider other islands

24. When does this come to fruition? • April/May 2014 for UK Gov Concordat • June 2014 for SG prospectus • Ongoing with Labour for manifesto

25. To what extent will our dreams be realised? • Dependent on commitment and principles of government • Dependent on referendum • Dependent on next Scottish Government • Meanwhile commitment to Act for Islands and White Paper commitments

26. To what extent will our dreams be realised? Ask us in October – we’re not going away

27. We understand what our Islands need to thrive Give us the tools to do it ourselves