1. FEES Amendments to the marine fee licensing structure from April 2011 under the MCA Act

2. Background MCA Act 2009 will replace FEPA with respect to marine licensing MCA Act 2009 will replace FEPA with respect to marine licensing Comes into effect on the 1 st April 2011 through a Commencement order drafted by DEFRA Comes into effect on the 1 st April 2011 through a Commencement order drafted by DEFRA Section 67 of MCA Act allows for a fee to be charged in accordance with Regulations made by the licensing authority (DOE). Section 67 of MCA Act allows for a fee to be charged in accordance with Regulations made by the licensing authority (DOE).

3. Why Increase Fees and Amend the Existing Fee Structure? To meet the inflationary pressures of the costs of administration and regulatory enforcement To meet the inflationary pressures of the costs of administration and regulatory enforcement To meet the needs of the new regulatory regime To meet the needs of the new regulatory regime

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

5. Fee Levels Main Points of NIEA’s Charging Policy (April 2010 – March 2013) NIEA is required to achieve full cost recovery NIEA is required to achieve full cost recovery Charging is applied only to the function to which it relates Charging is applied only to the function to which it relates Consultation is required where substantial changes take place in existing schemes Consultation is required where substantial changes take place in existing schemes

6. Fee Levels Main Points of NIEA’s Charging Policy (April 2010 – March 2013) It was decided to use the GDP deflator to obtain the inflationary figure to amend fees each financial year It was decided to use the GDP deflator to obtain the inflationary figure to amend fees each financial year

7. Fee Increases April 2010 – Fees were to be increased by 2.25%. This was delayed and will be applied in October 2010. April 2010 – Fees were to be increased by 2.25%. This was delayed and will be applied in October 2010. Fees will be increased by the GDP deflator value in April 2011 for the next financial year. Fees will be increased by the GDP deflator value in April 2011 for the next financial year.

8. Fee Structure General Points Basic FEPA fee structure was retained with amendments and additions. Basic FEPA fee structure was retained with amendments and additions. A single application form to be used with applicants completing the relevant parts and paying the fees associated with those parts. A single application form to be used with applicants completing the relevant parts and paying the fees associated with those parts. Restructuring of fees to reflect regulatory effort (will not affect the overall amount of fee to be paid). Restructuring of fees to reflect regulatory effort (will not affect the overall amount of fee to be paid).

9. Sea disposal licences for capital dredging (FEPA table) BAND LOW RANGE TONNES HIGH RANGE TONNES LICENCE APPLICATION FEE CAPITAL DREDGING LICENCE ISSUE FEE CAPITAL DREDGING ENFORCEMENT & MONITORING FEE TOTAL BAND 109,999£820£1,640£125£2,585 BAND 210,00024,999£1,140£2,280£125£3,545 BAND 325,00049,999£1,600£3,190£180£4,970 BAND 450,00099,999£2,280£4,570£180£7,030 BAND 5100,000499,999£3,200£6,390£300£9,890 BAND 6500,000999,999£4,570£9,130£300£14,000 BAND 71000,000+£7,760£15,530£300£23,590

10. BANDED CONSTRUCTION VALUES TOTAL LICENCE FEE DETERMINATION FEE ISSUE FEEMONITORING FEE BAND 1 0 – 9,999t £2,702£1,952£500£250 BAND 2 10,000t – 24,999t £3, 705£2,855£500£350 BAND 3 25,000t – 49,999t £5,195£4,195£500 BAND 4 50,000t – 99,999t £7,349£6,149£500£700 BAND 5 100,000t – 499,999t £10,339£8,839£500£1,000 BAND 6 500,000t – 999,999t £14,637£12,737£500£1,400 BAND 7 1,000,000t + £24,662 £21,662£500£2,500 Sea disposal licences for capital dredging (MCA Act table)

11. Proposed Fee Categories for Marine Licensing Marine Construction Marine Construction Maintenance Dredging Maintenance Dredging Capital Dredging Capital Dredging Capital Dredge Disposal Capital Dredge Disposal Maintenance Dredge Disposal Maintenance Dredge Disposal Deposits (Tracer Dyes, Biocides etc) Deposits (Tracer Dyes, Biocides etc) Marine Minerals Extraction Marine Minerals Extraction Marine Renewable Energy Projects Marine Renewable Energy Projects

12. Marine Construction Changes Weighting of fee structure to reflect regulatory effort. Weighting of fee structure to reflect regulatory effort. Addition of a site sensitivity supplement. Addition of a site sensitivity supplement.

13. Totally new licence fee. Totally new licence fee. Section 75 of MCA Act allows for Exemptions. Section 75 of MCA Act allows for Exemptions. Development of fee table to reflect nature of applicants. Development of fee table to reflect nature of applicants. Maintenance Dredging Changes

14. Capital Dredging Changes Totally new licence fee. Totally new licence fee. The associated fee table has more bands to reflect the higher quantities of materials usually dredged during this activity. The associated fee table has more bands to reflect the higher quantities of materials usually dredged during this activity. The fees themselves are greater than those associated with the equivalent maintenance dredging tonnages (band). This reflects the greater regulatory effort needed to assess the licence application. The fees themselves are greater than those associated with the equivalent maintenance dredging tonnages (band). This reflects the greater regulatory effort needed to assess the licence application.

15. Capital and Maintenance Dredge Disposal Changes Weighting of fee structure to reflect regulatory effort Weighting of fee structure to reflect regulatory effort Existing structure under FEPA remains largely unaffected Existing structure under FEPA remains largely unaffected

16. Deposits ( Tracers, dyes & biocides) Small change in the weighting of the fee structure to reflect regulatory effort Small change in the weighting of the fee structure to reflect regulatory effort

17. Marine Mineral Extraction Changes No Changes to the fee structure or level beyond that required by the GDP deflator. No Changes to the fee structure or level beyond that required by the GDP deflator. Legislation controlling this activity is to be amended when brought under the control of the MCA Act Legislation controlling this activity is to be amended when brought under the control of the MCA Act

18. Marine Renewable Energy Projects Changes Method of measurement changed Method of measurement changed Additional band added. Additional band added. Site sensitivity supplement modified. Site sensitivity supplement modified. All applications are for permanent works. Temporary aspect removed from table. All applications are for permanent works. Temporary aspect removed from table. Weighting of fee structure to reflect regulatory effort. Weighting of fee structure to reflect regulatory effort.

19. Variation of a Licence Fee Variations will now be charged at 25% of the original combined determination and issue fees Variations will now be charged at 25% of the original combined determination and issue fees

20. Any Questions