FEESFEES

Amendments to the marine Amendments to the marine fee licensing structure from fee licensing structure from

April 2011 under the MCA ActApril 2011 under the MCA Act

BackgroundBackground

• MCA Act 2009 will replace FEPA with MCA Act 2009 will replace FEPA with respect to marine licensing respect to marine licensing

• Comes into effect on the 1Comes into effect on the 1stst April 2011 April 2011 through a Commencement order drafted through a Commencement order drafted by DEFRAby DEFRA

• Section 67 of MCA Act allows for a fee to Section 67 of MCA Act allows for a fee to be charged in accordance with be charged in accordance with Regulations made by the licensing Regulations made by the licensing authority (DOE).authority (DOE).

Why Increase Fees and Why Increase Fees and Amend the Existing Fee Amend the Existing Fee Structure?Structure?

• To meet the inflationary pressures of To meet the inflationary pressures of the costs of administration and the costs of administration and regulatory enforcementregulatory enforcement

• To meet the needs of the new To meet the needs of the new regulatory regimeregulatory regime

Fee LevelsFee Levels

• The DOE and NIEA The DOE and NIEA are required by the are required by the DFPNI policy DFPNI policy document ‘Managing document ‘Managing Public Money Public Money Northern Ireland Northern Ireland (June 2008)’ to (June 2008)’ to achieve ‘full cost achieve ‘full cost recovery’ recovery’

Fee LevelsFee LevelsMain Points of NIEA’s Charging Policy Main Points of NIEA’s Charging Policy (April 2010 – March 2013)(April 2010 – March 2013)

• NIEA is required to achieve full cost NIEA is required to achieve full cost recoveryrecovery

• Charging is applied only to the Charging is applied only to the function to which it relatesfunction to which it relates

• Consultation is required where Consultation is required where substantial changes take place in substantial changes take place in existing schemes existing schemes

Fee LevelsFee LevelsMain Points of NIEA’s Charging Policy Main Points of NIEA’s Charging Policy (April 2010 – March 2013)(April 2010 – March 2013)

• It was decided to use It was decided to use the GDP deflator to the GDP deflator to obtain the inflationary obtain the inflationary figure to amend fees figure to amend fees each financial yeareach financial year

Fee IncreasesFee Increases

• April 2010 – Fees were to be April 2010 – Fees were to be increased by 2.25%increased by 2.25%. This was . This was delayed and will be applied in delayed and will be applied in October 2010.October 2010.

• Fees will be increased by the GDP Fees will be increased by the GDP deflator value in April 2011 for the deflator value in April 2011 for the next financial year.next financial year.

Fee StructureFee StructureGeneral PointsGeneral Points

• Basic FEPA fee structure was retained Basic FEPA fee structure was retained with amendments and additions.with amendments and additions.

• A single application form to be used with A single application form to be used with applicants completing the relevant parts applicants completing the relevant parts and paying the fees associated with those and paying the fees associated with those parts.parts.

• Restructuring of fees to reflect regulatory Restructuring of fees to reflect regulatory effort (will not affect the overall amount of effort (will not affect the overall amount of fee to be paid).fee to be paid).

Sea disposal licences for capital dredging (FEPA table)

BANDLOW RANGE

TONNES

HIGH RANGETONNES

LICENCEAPPLICATION

FEECAPITAL

DREDGING

LICENCEISSUE FEECAPITAL

DREDGING

ENFORCEMENT &MONITORING FEE

TOTAL

BAND 1 0 9,999 £820 £1,640 £125 £2,585

BAND 2 10,000 24,999 £1,140 £2,280 £125 £3,545

BAND 3 25,000 49,999 £1,600 £3,190 £180 £4,970

BAND 4 50,000 99,999 £2,280 £4,570 £180 £7,030

BAND 5 100,000 499,999 £3,200 £6,390 £300 £9,890

BAND 6 500,000 999,999 £4,570 £9,130 £300 £14,000

BAND 7 1000,000+ £7,760 £15,530 £300 £23,590

BANDEDCONSTRUCTION

VALUES

TOTALLICENCE

FEE

DETERMINATION FEE

ISSUE FEEMONITORING

FEE

BAND 10 – 9,999t £2,702 £1,952 £500 £250

BAND 210 ,000t – 24,999t £3, 705 £2,855 £500 £350

BAND 325 ,000t – 49,999t £5,195 £4,195 £500 £500

BAND 450 ,000t – 99,999t £7,349 £6,149 £500 £700

BAND 5100 ,000t – 499,999t

£10,339 £8,839 £500 £1,000

BAND 6500 ,000t – 999,999t

£14,637 £12,737 £500 £1,400

BAND 71,000,000t + £24,662 £21,662 £500 £2,500

Sea disposal licences for capital dredging (MCA Act table)

Proposed Fee Categories for Proposed Fee Categories for Marine LicensingMarine Licensing• Marine ConstructionMarine Construction

• Maintenance DredgingMaintenance Dredging

• Capital Dredging Capital Dredging

• Capital Dredge DisposalCapital Dredge Disposal

• Maintenance Dredge DisposalMaintenance Dredge Disposal

• Deposits (Tracer Dyes, Biocides etc)Deposits (Tracer Dyes, Biocides etc)

• Marine Minerals ExtractionMarine Minerals Extraction

• Marine Renewable Energy ProjectsMarine Renewable Energy Projects

Marine ConstructionMarine ConstructionChangesChanges

• Weighting of fee Weighting of fee structure to reflect structure to reflect regulatory effort.regulatory effort.

• Addition of a site Addition of a site sensitivity sensitivity supplement.supplement.

• Totally new licence fee.Totally new licence fee.

• Section 75 of MCA Act allows for Section 75 of MCA Act allows for Exemptions. Exemptions.

• Development of fee table to reflect Development of fee table to reflect nature of applicants.nature of applicants.

Maintenance DredgingMaintenance DredgingChangesChanges

Capital DredgingCapital DredgingChangesChanges

• Totally new licence fee.Totally new licence fee.

• The associated fee table has more bands The associated fee table has more bands to reflect the higher quantities of materials to reflect the higher quantities of materials usually dredged during this activity.usually dredged during this activity.

• The fees themselves are greater than The fees themselves are greater than those associated with the equivalent those associated with the equivalent maintenance dredging tonnages (band). maintenance dredging tonnages (band). This reflects the greater regulatory effort This reflects the greater regulatory effort needed to assess the licence application.needed to assess the licence application.

Capital and Maintenance Capital and Maintenance Dredge DisposalDredge DisposalChangesChanges

• Weighting of fee Weighting of fee structure to reflect structure to reflect regulatory effortregulatory effort

• Existing structure Existing structure under FEPA remains under FEPA remains largely unaffectedlargely unaffected

Deposits (Deposits (Tracers, dyes & biocides)Tracers, dyes & biocides)

• Small change in Small change in the weighting of the weighting of the fee structure to the fee structure to reflect regulatory reflect regulatory efforteffort

Marine Mineral ExtractionMarine Mineral ExtractionChangesChanges

• No Changes to the fee structure or No Changes to the fee structure or level beyond that required by the level beyond that required by the GDP deflator.GDP deflator.

• Legislation controlling this activity is Legislation controlling this activity is to be amendedto be amended when brought under when brought under the control of the MCA Actthe control of the MCA Act

Marine Renewable Energy Marine Renewable Energy ProjectsProjectsChangesChanges• Method of measurement changedMethod of measurement changed

• Additional band added.Additional band added.

• Site sensitivity supplement modified.Site sensitivity supplement modified.

• All applications are for permanent All applications are for permanent works. Temporary aspect removed works. Temporary aspect removed from table. from table.

• Weighting of fee structure to reflect Weighting of fee structure to reflect regulatory effort.regulatory effort.

Variation of a Licence FeeVariation of a Licence Fee

• Variations will now Variations will now be charged at 25% be charged at 25% of the original of the original combined combined determination and determination and issue feesissue fees

Any QuestionsAny Questions