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As these are operational matters for Scottish Water, I have asked the Chief Executive of Scottish Water to write to you on this.

Ministers set objectives for the water industry after extensive consultation. Based on the objectives specified in the statement that ministers made to Parliament in February this year, Scottish Water submitted an integrated investment programme to the Water Industry Commission (WIC) as part of the Strategic Review of Charges (SRC) process. As required under the system of independent economic regulation set up, the WIC has assessed the lowest, overall, reasonable cost of delivering ministers’ objectives and the draft determination sets out its conclusions. The consultation period ends on the 23 September with an expectation that the final determination will be published at the end of November.

Ministers have not set Scottish Water specific objectives for the reduction of leakage. Instead, they have set objectives based upon the performance of Scottish Water’s assets according to a set of industry standard measures. They have also set further objectives. Taken as a whole, this effect is likely to bring about a reduction in the quantity of treated water lost by leakage.

The Executive has no plans at present to extend or replace the Rural Challenge Fund.

In 2004, a review and full consultation exercise was carried out on the Scottish Rural Partnership Fund (SRPF). We are considering the outcome of that review and the fit of the SRPF in the context of our wider rural policy and range of support mechanisms. An announcement about future arrangements will be made in due course.

The Executive has no plans at present to extend or replace the Rural Challenge Fund. An announcement about future arrangements will be made in due course.

These issues will be explored through the strategic environmental assessment (SEA) that is being undertaken as part of the review process. The SEA will inform revised policies that will be prepared in consultation with the Environmental Advisory Forum on Renewable Energy and following full public consultation.

No hybrid plants resistant to herbicides have been detected in or adjacent to fields used for farm-scale evaluations in Scotland.

In a Department for Environment Food and Rural Affairs funded research project, the Centre of Ecology and Hydrology investigated the level of gene flow between cultivated crops and wild relatives in or adjacent to fields used for the farm-scale evaluations (FSE) of genetically modified crops. Scottish sites were included in this study. The results of the study were recently published. No tests were carried out to establish whether any horizontal gene transfer has taken place from plants to other organisms such as bacteria or fungi.

In a Department for Environment Food and Rural Affairs funded research project, the Centre of Ecology and Hydrology investigated the level of gene flow between cultivated crops and wild relatives in or adjacent to fields used for the Farm Scale Evaluations (FSE) of genetically modified crops. Scottish sites were included in this study. The results of the study were recently published. No tests were carried out to establish whether any horizontal gene transfer has taken place from plants to other organisms such as bacteria or fungi.

The consultation paperrefers to a case raised by the European Commission, who do not consider thecurrent definition to fully implement Article 6(1) of the EIA Directive. The UKGovernment received a letter of formal notice, which is the first stage ofproceedings under Article 226 of the Treaty, from the European Commission inOctober 2003. In the letter  the Commission refers, as an example, to ahypothetical development situated in England but close to the Scottish border in order to illustratewhat they see as a potential weakness in the transposition of Directive85/337/EEC with regard to the definition of “consultation bodies”. Consistentwith the approach adopted by the ODPM on this issue, the Executive is proposingthe changes outlined in the above consultation paper as a means of ensuring thedefinition is sufficiently transparent.

Local authorities are responsible for the enforcement of the genetically modified organisms (GMO) Traceability and Labelling Regulations and the GM Food and Feed Regulations in Scotland. If an illegal GMO was found in an import of grain Local Authorities are required to inform the Competent Authority. No such reports have been made.