Why does it take so long?

SCOTLAND is losing billions of pounds in revenue and its economy is falling behind the rest of the UK because of long delays faced by major planning applications, one of the country's business leaders said last night.

Iain McMillan, the director of CBI Scotland, warned ministers and council leaders that Scotland had to accelerate the planning process or it would fail to hit its 2011 target of equalling the UK's growth rate.

His comments come amid growing controversy over the planning process in Scotland, with a series of large developments hit by delays.

Alex Salmond, the First Minister, has already had to defend the Scottish Government's approach to planning after the decision to call in the planned 1 billion Trump golf and housing development in the North-east. An application was made last year but there is still no indication of when a decision will be made on its future.

Ministers have yet to decide whether to give the go-ahead to the huge wind farm proposed for the Isle of Lewis, which could meet 11 per cent of Scotland's electricity needs.

Also, despite a 10 million, three-month public inquiry, a decision has still to be reached on Scottish Hydro Electric Transmission's proposal for a 137-mile new power line between Beauly and Denny.

Councils are supposed to process 80 per cent of all major planning applications within four months, but fewer than half are decided within this deadline. And the situation is getting worse, with delays more common now than two years ago.

The latest figures from the Scottish Government show that in 2006-7, only 46 per cent of major applications were determined within the four-month target, compared with 51 per cent in 2004-5.

The actual number of applications decided within four months is also down. In 2004-5, the total was 1,021; by 2005-6, this dropped to 980, and by 2006-7, it was down again, to 904.

The Scottish CBI has calculated in the past that planning delays cost the Scottish economy 600 million a year in lost turnover, the deferred benefits of new infrastructure and the impact of higher housing costs on salaries. Mr McMillan told The Scotsman the planning process was "truly shocking", particularly as there was still a "presumption against development".

"If Alex Salmond and his government rely simply on legislation, that will not be enough," he said. "They need to drive this greater presumption in favour of development, rather than the current presumption against."

The Scottish CBI chief said ministers had to set new guidelines for groups such as Scottish Natural Heritage and the Scottish Environment Protection Agency, forcing them to consider the economy when responding to planning applications.

He said both organisations routinely objected to developments that would help the economy, without any thought for Scotland's economic future.

Some local authorities did the same, he said, adding: "Last year, one council declined a planning application that would have been good for business and the economy, and the chairman of the planning committee declined the application, saying it wasn't his job to consider the needs of the economy.

"That decision was overturned later, but it shows that not enough weight is being given to the economy."

Mr McMillan will tell an enterprise conference in Glasgow today that "local authorities and the Scottish Government need to get a firm grip and apply the appropriate resources" to rectify the situation.

He will warn:

"If the Scottish Government does not deal with this, ministers' own ambitions to equal the UK's rate of economic growth by 2011 will be put at serious risk."

The SNP government has pledged to improve Scotland's growth rate of about 1.7 per cent a year to the 2.25 per cent achieved by the UK as a whole, which means an improvement of about a third in three years.

But a Scottish Government spokesman insisted the SNP administration had to work with the system it inherited.

He said: "This is a comment on the planning system inherited from the previous administration, which we have already acted to improve, and we are now seeing more rapid decision-making. For example, in terms of electricity consents, the previous administration averaged 3.7 consents per year over all technologies, while this administration has already consented seven applications within our first nine months – including the second and third largest onshore wind farms.

"To give an indication of priority, planning was the first issue the Council of Economic Advisers focused on."

The Greens were critical of CBI Scotland for pushing development over everything else. A spokesman for the Scottish Green Party said: "There is some truth in the CBI's position, but there is also some serious misrepresentation.

"The planning process is, indeed, cumbersome and slow, and it remains hard for individuals and communities to contribute to. However, developers can lodge appeals, while local communities have no such right, however unsuitable an individual scheme may be.

"We cannot understand how the CBI can say with a straight face that this leads to bias against development."

There are between 50,000 and 60,000 planning applications lodged every year. Very few are for major developments. But all are submitted to – and decided by – local councils.

There are about 1,050 appeals a year against decisions made by local authorities. Most are decided by reporters (generally, qualified planners) appointed by the Scottish Government – which calls in about 25 to 30 applications each year.

To speed up the process, ministers want more applications to be decided by planning officers, rather than by councillors sitting on planning committees.

KEY PRIORITIES

MINISTERS have identified nine key infrastructure projects which they believe are vital to Scotland's economic growth.

These will be given priority treatment to get them through the planning process.

The projects are:

GRID WORK TO BOOST RENEWABLE ENERGY

Plans include reinforcing the subsea cable between Orkney and the mainland.

COMMONWEALTH GAMES PREPARATIONS

Based in Dalmarnock, facilities will include an athletes' village, indoor sports arena, velodrome and hockey centre.

GLASGOW AIRPORT IMPROVEMENTS

The airport has been earmarked for rail links to the city centre and work is also planned to improve junction 28 of the M8 for extra traffic.

GLASGOW STRATEGIC DRAINAGE SCHEME

Would see a complete upgrading of the drainage system, with new water treatment plants, flood-reduction measures, sewers and pumping stations.

BETTER ACCESS TO GRANGEMOUTH FREIGHT HUB

This means improving road and rail links to support the hub's role as Scotland's largest container port.

SCAPA FLOW CONTAINER BASE

Proposals mean new infrastructure to cope with the bigger ships now in operation.

ROSYTH CONTAINER TERMINAL

This would see improved road and rail links to meet the increased demand for containerised freight, which is expected to exceed Scotland's existing capacity by 2015.

IMPROVING EDINBURGH AIRPORT

Plans include an expanded terminal, reconfigured taxiways, new plane stands and maintenance hangars.

REPLACEMENT FORTH CROSSING

Already announced, a new bridge is being planned west of the existing structure, costing about 4 billion.