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The Government Economic Strategy sets out our approach to supporting sustainable economic growth in Scotland, with an update of the strategy published in September 2011. We engaged widely in the development of the update of strategy with key partners from across the business, public and third sectors and continue to work with all of Scottish society to deliver on these ambitions.

The Scottish Government remains committed to sustainable development as defined in the 2005 UK shared framework, One future, different paths. The key principles identified in the framework are reflected in our Government Economic Strategy and other key policy documents, including the Energy Efficiency Action Plan and Zero Waste Plan. These principles also form a key part of the National Performance Framework which includes indicators on waste, transport, energy and Scotland’s carbon footprint to support the national outcomes and our strategic objectives. The fundamental principle of sustainable development is that it integrates economic, social and environmental objectives. This principle is reflected in both the Scottish Government’s definition of sustainable economic growth and in the five guiding principles set out in the UK shared framework for sustainable development.

It is the clear view of the Scottish Government that on independence Scotland would remain part of the EU as it is at present, fulfilling the responsibilities which membership brings, and maintaining its political, economic and social links to Europe. A Scotland at the heart of European activity enables us to benefit from the opportunities membership brings and ensure Scotland has a full role in the development of EU affairs including its terms under the Common Agricultural policy.

At present, all funding for climate change activity and almost all for fuel poverty activity in 2012-13 and 2013-14 is funded by the Scottish Government through the funding settlement, with the exception of a £16 million transfer from the Department of Energy & Climate Change for the Green Homes Cash Back Scheme and £5 million for the Gas Infill Fund which is loan funding repayable to HM Treasury.

The financial costs of measures in the Reports on Proposals and Policies (RPP) to meet Scotland’s climate change targets will fall across government, business and consumers. The Scottish Spending Review 2011 set out plans for more than £700 million to help deliver emissions cuts. This will ensure that we will continue to make progress delivering the policy framework set out in Low Carbon Scotland: Meeting the Emissions Reductions Targets 2010 – 2022, our first climate change RPP.

The Energy, Enterprise and Tourism Committee report into fuel poverty in February 2012 recommended a budget of at least £200 million a year from both Government and energy company obligation funding was required to tackle fuel poverty. The Scottish Government is therefore working closely with utility companies to ensure that Scotland receives an appropriate share of Energy Company Obligation funding, being around £120 million. Combined with Scottish Government funding, this should provide a funding pot of at least £200 million per annum from 2013-14.

A draft budget summary document detailing spending supporting the delivery of measures to reduce greenhouse gas emissions and tackle fuel poverty is available online http://www.scotland.gov.uk/Topics/Environment/climatechange/climatechangefundingdocument Copies have also been placed in the Scottish Parliament’s Reference Centre (Bib number 54423).

Forestry Commission scientists have been aware of ash dieback as one of a number of potential threats to tree health for a number of years. Ash dieback symptoms were first observed in Poland in 1992 and since then the disease has spread to other parts of Europe.

There was significant uncertainty regarding the identity of the causal agent of the disease until 2010. In 2010 European scientists identified a new species, Hymenoscyphus pseudoalbidus, as the correct fungus causing the damage. Until then it was thought that the causal agent was a fungus that was already widespread throughout Great Britain.

In line with the policy of successive Governments, the Scottish Government does not currently plan to pay compensation for plants and trees lost through pest and diseases or the measure required to eradicate them. Nursery owners are advised of the need to ensure all stock is disease free prior to importation to the UK.

As at 9 November the majority of the confirmed cases in Scotland related to new planting sites, mostly likely related to imported ash trees. However there were two sites in the wider environment; for one of these sites the cause is unclear while in the other the cause may be wind born transmission.

Testing for Chalara fraxinea is currently being carried out by Forest Research and the Food and Environmental Research Agency. Both are primarily funded by the Department of Environment, Food and Rural Affairs. Until the likely scale of testing requirements is known it is not possible to identify what the cost will be. Samples taken as part of the Scottish horticultural inspections are progressed by Science and Advice for Scottish Agriculture (SASA, a Division of the Scottish Government’s Agriculture, Food and Rural Communities Directorate) as part of existing arrangements.

The European Commission’s draft Direct Payment Regulation includes a convergence proposal that would see Member States with average per hectare payment rates below 90% of the EU-27 average rate per hectare have one third of the gap between their current level and 90% of the EU-27 average rate closed between 2014 and 2020.

Based on this proposal, Scottish Government analysts have estimated the impact of the convergence mechanism for Scotland as an independent Member State. This indicates that approximately £150 million extra would be needed to close one third of the gap between Scotland’s current average rate per hectare and 90% of the EU average rate per hectare. Dividing this £150 million by the typical annual number of Single Application Forms (SAF) submitted is equivalent to around £6,000 each.

Chalara fraxinea fungus is one of a number of new tree and plant health threats which have emerged as significant risks over recent years.

In 2011 Forestry Commission and the Department for Environment, Food and Rural affairs published an Action Plan for Tree Health and Biosecurity which focuses on four key areas: protecting the UK; practical actions; public and stakeholder engagement and research opportunities and evidence priorities.

Forestry Commission Scotland and the Scottish Government were closely involved in developing this action plan and have taken forward a number of specific actions including increasing the resources allocated to tree health work, improving awareness and understanding on biosecurity measures and running seminars and tree health days to alert woodland managers to the potential threats.

In addition Scottish Government horticultural inspectors have been checking ash trees during plant inspections at Scottish nurseries and garden centres since May 2012 and in established gardens as part of the wider plant health inspection programme.