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We plan to consult on proposals in spring 2015, subject to development of options through our work with external stakeholders. The consultation will include questions on the level of regulation and the sectors it will apply to.

Scotland’s Sustainable Housing Strategy, published in June 2013, set out our commitment to consult on draft regulations on the energy efficiency of existing private sector homes. This work is being taken forward with input from a steering group including representatives of fuel poverty and consumer interests. The consultation exercise will seek views from all parts of Scotland and Scottish Ministers will take account of the responses received in considering the final level of regulations for consideration by the Scottish Parliament.

Scottish Government funding for our Home Energy Efficiency Programme: Area Based Schemes (HEEPS: ABS) is distributed across all local authorities in Scotland and is allocated on the basis of need, taking into account levels of fuel poverty and the types of properties within areas. This ensures that funding is directed to those areas most in need of assistance, particularly in rural areas which are likely to have a higher proportion of homes in fuel poverty, particularly those where heating oil or electricity is their main source of heating. We allocated over £5 million more in HEEPS: ABS funding to rural authorities this year than in 2013-14.

Proposals for draft regulations are planned to be published for public consultation in spring 2015. The consultation will set out proposals for the operation of the regulations. The final decision on the enforcement of regulations would take into account responses received through the public consultation process.

Proposals for minimum energy efficiency standards for private sector housing are still under development with stakeholders for proposed public consultation in spring 2015. The public consultation will include proposals on the level at which regulations may be set and what homes may be affected by the standard.

Independence will create a more democratic Scotland that will always get the government it votes for and have a strong voice for Scotland’s islands at the heart of government. Island communities already benefit from direct engagement from Scottish Ministers on devolved issues, for example at recent visits by the Scottish Cabinet to the Shetland Islands and the Western Isles, and from a higher level of parliamentary representation with an MSP for each Island local authority area. The Scottish Government’s proposals in ‘Empowering Scotland’s Island Communities’, such as designating a ‘minister for island communities’, protecting the position of island MSPs and bringing forward a bill for an islands Act upon independence, will ensure island communities have full access to ministers on all issues.

The benefit of island-proofing, and of making it a binding duty in an Islands Act in the event of independence, is that the needs and circumstances of island communities will be considered throughout the legislative process, including before a proposed Bill reaches Parliament. Where, as a consequence of the island-proofing process, it is considered appropriate to vary the application of legislation by geographical area, this will be decided upon through discussion between the islands communities and the Scottish Government and Scottish Parliament.

The key financial mechanism that will unlock island grid upgrades is the extension of the Scottish island strike price beyond the first Electricity Market Reform Delivery Plan period, which ends in 2018-19. The UK Department of Energy and Climate Change have the power to make that happen now.

Working together with the island councils, the Scottish Government has argued strongly for the UK Government to recognise the additional support needed to enable the delivery of island renewables projects, given the higher costs they face. As a result of our representations to the Secretary of State for Energy and Climate Change, a delivery forum to facilitate connections between the Scottish islands and the Great Britain transmission grid has been established.

At a meeting of the delivery forum on 26 June 2014, the UK Secretary of State agreed to consider what reassurances could be given regarding the longer term future Scottish island strike price. Progress on the actions agreed will be reported at the next meeting of the delivery forum which is due in September 2014.

The Scottish Government’s preference will always be to have a fair and equitable settlement for all councils that is based on local needs and gives the maximum opportunity to deliver strong local services for local people and we will continue to work closely with COSLA to ensure that is achieved.

During the ferries review, Transport Scotland carried out some basic modelling of RET fares for Orkney Islands Council’s, and Shetland Islands Council’s, inter-island ferry services.

As set out in Scotland’s Future, Scotland will inherit the prevailing UK tax code at the point of independence, including tax rates, reliefs and allowances. These will remain in place until changes are made by future Scottish Governments.