What steps it is taking to promote the principle that the polluter pays in respect of environmental impact.

Some Scottish legislation requires polluters to pay for damage to the environment. For example the Water Environment and Water Services (Scotland) Act 2003 sets out a framework for improving Scotland's water environment, underpinned by the principle that the polluter will pay for the required improvements. The secondary legislation currently being developed shall also promote this fundamental principle, as will any charging schemes developed under the provisions of the act. This will be balanced by the need to take into account the social and economic impact of enforcing full cost recovery on business or industry. The contaminated land regime established under Part ll A of the Environmental Protection Act 1990 enshrines the principle that those responsible for causing pollution of land should pay to clean it up. A framework for establishing who is responsible for remediation costs is set out in the legislation, alongside arrangements for taking into account hardship issues. The Scottish Environment Protection Agency also recovers the cost of its regulatory duties through charges levied on holders of environmental permits and licences.The Scottish Executive is currently monitoring the passage of the Environmental Liability Directive through the European legislative process to see what change might be required to our domestic arrangements.