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My officials have written to all members of the Less Favoured Area (LFA) stakeholders group inviting them to join a small technical working group to discuss detailed rules for the future of the Less Favoured Area Support Scheme (LFASS). The following organisations have accepted the invitation: NFU Scotland, Scottish Rural Property Business Association (SRPBA), Scottish Natural Heritage (SNH), Environmental Link, National Sheep Association (NSA), Scottish Crofting Foundation (SCF), Scottish Beef Cattle Association (SBCA), and National Beef Association (NBA) Scotland.

The future of the Less Favoured Area Support Scheme (LFASS) post-2010 has already been subject to a full public consultation. Following an analysis of the consultation responses, it was the consensus view that LFASS payments must be linked to activity. At the combined CAP/LFASS stakeholder meeting held on 16 June, it was agreed that a small technical working group would be set up. The purpose of this group will be for members to look closely at the more detailed rules of the scheme, including a definition of the active farming requirement.

Many bodies have concerns about the consequences of depletion of our valuable biodiversity and natural resources. There is general agreement that, while significant improvements have been achieved, EU member states will not achieve the ambitious target adopted by the European Union to halt the loss of biodiversity by 2010. The Scottish Government is however committed to delivering policies within the context of the National Performance Framework which will lead to continuing improvements in the state of Scotland''s biodiversity; non-governmental organisations and private sector representatives are partners with the public sector in taking forward actions under the Scottish Biodiversity Strategy.

The Scottish Government is also continuing to work with the UK authorities in contributing to international debate on measures to address global biodiversity loss in the lead up to the 2010 Nagoya Conference of Parties on the UN Convention on Biological Diversity.

The Joint Nature Conservation Committee is currently analysing data collected across the UK in the recent reporting round for 2008. This will form the basis for reporting against 2010 targets.

Full information is available at http://www.ukbap-reporting.org.uk/.

Actions from the draft Scottish Biodiversity Strategy implementation plans, which have been the subject of public consultation by Scottish Natural Heritage, are being incorporated into delivery plans for the five ecosystem groups - upland, woodland, marine and coastal, freshwater and wetland, and lowland and farming. Further information is available at:

http://www.biodiversityscotland.gov.uk/.

Regular assessments of the progress made by EU member states towards biodiversity targets are made by the European Commission. These are available at: http://ec.europa.eu/environment/nature/biodiversity/comm2006/index_en.htm.

The Scottish Government continues to work at ministerial and official levels with the European Commission, the UK Government and other member states to achieve the best possible solution for Scottish farmers on the EU proposals for electronic identification of sheep.

The Scottish Government raised electronic identification with Secretary of State Hilary Benn and other devolved administrations ministers at a meeting on 2 June and a common strategy was agreed for engagement across Europe. The Scottish Government has already achieved concessions on the implementation of electronic identification of sheep and further proposals are currently under consideration. Whether there will be a need to meet with the European Commissioner for Health will be considered in the light of further developments across member states and at Commission level.

The joint review of the local government finance distribution methodology is now well underway. The review group has been asked to make recommendations by the end of October 2009. Any agreed conclusions are likely to be announced shortly after that in order to inform the allocation of funding to local government from 2011-12.

The Scottish Government continues to work at ministerial and official levels with the European Commission, the UK Government and other member states to achieve the best possible solution for Scottish farmers on the EU proposals for electronic identification of sheep.

Richard Lochhead raised electronic identification with Secretary of State Hilary Benn and other devolved administrations ministers when they met on 2 June and a common strategy was agreed for engagement across Europe. The Scottish Government has already achieved concessions on the implementation of electronic identification of sheep and further proposals are currently under consideration. Whether there will be the need to have a further meeting with the European Commissioner for Health will be considered in the light of further developments across member states and at Commission level.

From the 1 October the Scottish Land Court will take over the responsibility for administering a new streamlined EU agricultural subsidy appeals procedure. Under this new arrangement the government and the appellant will now be on an equal footing in all appeal cases and the process will be independent and quicker. I announced this change, which addressed the main recommendations contained in the Report A Review of the European Union Agricultural Subsidy Appeals Procedure in Scotland, in my speech to the National Farmers'' Union (NFU) Scotland''s AGM in February. This fundamental change to the appeals procedure has been the main focus of our efforts.

Work is on-going on how we take forward the other recommendations contained in the report which covered areas like creating greater dialogue between government and farmers and improving our application forms and guidance.

On the latter, a great deal is already done along the lines suggested in the report and we will continue to build on current practises. A recommendation was also made that we encourage greater use of electronic submission of claims. This has been an action for us for some years. In 2008, 28% of all single application forms were submitted electronically which has risen to just under 32% in 2009. We will continue to develop and promote this means of delivery.

I will make a further announcement on the details of the new arrangements in advance of the handover of responsibility to the Scottish Land Court.