Environment Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 10th March 2020 Public Bill Committees

[Dr Whitehead]

Q You reflected on the independence of the OEP and have suggested that concerns might be raised about its funding and funding cycle. Are there amendments you would like to see to the Bill to establish that independence in a clearcut way? Along with the OEP’s potential independence, would you like to see something specific in the Bill that protects its remit and funding cycle so we can be assured that it will not be subject to the vicissitudes of the Department or the Exchequer?

Signe Norberg: With regards to the specific areas of the Bill, there could be strengthening amendments to schedule 1, which sets out the appointment process. A paragraph in there to specify the role of the Select Committee in appointing the chair would strengthen the Bill, because the OEP’s chair has the power to select the other members. Within that, there is also a funding section, which could establish the five-year process. The important thing is that the OEP, with its formidable remit, will have independence and certainty in the long term. That should go beyond this Government, secure in the fact that successive Governments will deliver on the commitments. It should have a baseline budget to operate from, regardless of economic circumstances. If the funding mechanism in schedule 1 is strengthened, that would be welcome and really bolster the OEP’s ability to do its work.

Martin Baxter: In terms of a specific amendment, paragraph 2(1) of schedule 1 could be changed. It says:

“Non-executive members are to be appointed by the Secretary of State” ,

but you could add to that, “with confirmation from the Environmental Audit Committee and/or Environment, Food and Rural Affairs Committee.” That would give Parliament enhanced power in that appointments process. That is a targeted, small amendment that could enhance independence in the process.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rebecca Pow)]

Q Thank you so much for coming in; it is really appreciated. I have two points to pick up, one of which was raised by Ms Norberg. I think you suggested that the Office for Environmental Protection, the overarching body that will hold public bodies to account, ought to be more like the Office for Budget Responsibility, but that body does not have the enforcement functions that the OEP will have. Do you have any views about that?

Signe Norberg: The point about appointing the chair is more about ensuring that there is scrutiny around who is appointed as chair. We fully recognise that the OEP will have a different remit compared to the OBR. It is more about ensuring that Parliament has a role in appointing the chair.

[Rebecca Pow]

Q The OBR and what we are proposing for the Office for Environmental Protection are quite different in terms of functions. The Office for Environmental Protection is more like the Equality and Human Rights Commission and very much set up on those lines. Do the others have views on that?

Martin Baxter: Given the importance of the OEP and questions about independence and holding public authorities, including Government, to account, stakeholders feel that that enhanced independence is very important. The model of having a confirmatory vote from the appropriate Select Committee in that appointments process is something that the OBR has in its remit, and we think that could be transferred across to the OEP as well. That is not to say that they do not have very different functions as bodies; we fully accept that.

[Rebecca Pow]

Q Could I widen it out a bit? Industry and business have been very engaged in the development of the Bill, which is much appreciated. One of the strong messages we got from your two groups, in particular, was that you wanted legally binding targets and strong direction in the Bill. Why do you feel that is so important? Can you help the Committee understand whether the Bill is strong enough and why you want that?

Edward Lockhart-Mummery: You are absolutely right. We have been working on this for about two or three years with a wide group of business organisations. We have got 20 of the main business groups, covering all sectors, from the Federation of Small Businesses to the CBI, Make UK, Water UK and the Home Builders Federation. Consistently across that group, the notion of a long-term framework for the environment is incredibly important.

We did a bit of research looking at the timescales over which businesses take decisions, whether it is project cycles, investment cycles for capital, or whatever. A lot of the investment cycles are very long. Unless you have a long-term framework for the environment, it is difficult to make the kind of improvements that we would all like to see.

In the past, we have often had very short-term decision making on the environment, which makes it difficult for business to adjust. If we are constantly in that cycle of responding very quickly and introducing policies on a one or two-year basis, it is very hard for business. Everyone—human beings—wants to see a clean and good environment. Business supports that as much as everyone else. If they have clarity over the long-term direction of policy and a clear set of targets, they can start designing. Whatever sector you are in, you can start designing.

Let me give you a quick example. We are working with the home building sector on a sectoral plan for all new houses, for the environment, because we have got the clarity of net zero and because we are getting clarity on targets through the Environment Bill. The sector can suddenly sit down and start saying, “Right, these are the long-term things we need to plan for—water efficiency, flood resilience and air quality.” They can start investing in the R&D and driving innovation.

We think that is very important, and we advocated very strongly right from the start. We put together a blueprint for the Environment Bill. We have advocated very strongly to Treasury and others that that long-term framework is important. We think it is a game changer, in the sense that, as soon as you have that, rather than environment being a compliance issue within firms, it becomes a strategic issue within firms, sectors and local areas, where everyone can build this into what they are doing.

In principle, we think targets are fantastic and we really welcome them in the Bill. We also think that there are some small changes that could be made to the target-setting framework that would be win-wins. They would improve the ability to achieve environmental outcomes but also reduce costs and increase certainty for business. I will focus on two—so that I am not hogging the microphone, I might then hand over to colleagues. One is that we would really like to see clear objectives in the Bill. At the moment, there is a target-setting mechanism, but it is not exactly clear. It says that four targets will be set in four areas, but it is not clear exactly what targets would be set. It would give greater clarity to have objectives that consistently show what kind of targets are going to be set and give that long-term clarity for everyone.

We have often made the point that, in the past 10 years, we have had eight different Secretaries of State at the Department for Environment, Food and Rural Affairs. If they all set their own targets, depending on what they are interested in, you could end up with a patchwork of targets. We would really like to see clarity on the objectives. This is the kind of thing we are talking about. If the Bill said something like environmental objectives would be to have a healthy, resilient and biodiverse natural environment, an environment that supports human health and wellbeing for everyone, and sustainable use of resources, those would be high-level objectives but would give everyone clarity, as to how targets would be set.

[Rebecca Pow]

May I just interrupt you there for a second? I might bring the other gentleman in from the Broadway group—

[The Chair]

Minister, if anybody brings him in, it will be me. May we please finish hearing what is being said and then you can come back in?

Edward Lockhart-Mummery: One thing we did with IEMA is a big survey of about 370 people working in businesses and different organisations. I think 95% of them supported having objectives in the Bill. That is that one.

The other thing is to have a clearer duty right at the start that environmental improvement plans have to enable the targets to be met. At the moment, the targets are legally binding in the sense that if you miss a target, Government have to make amends and take action, and there is a reporting mechanism. What is missing—and is in the Climate Change Act 2008—is what we call a day one duty, something that says there is a duty on the Secretary of State to make sure that they are putting in place the right policies to support this. These two things would underline that clarity and long-term certainty for business and reduce long-term costs for business to achieve the outcomes.

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[The Chair]

Thank you. In the light of all of that, are there any final questions from the Minister?

[Rebecca Pow]

Q On a related point, do you think it is important to have an equivalent governance framework to the OEP in Scotland and Wales? Northern Ireland is already committed to joining the OEP, as is set out in the Bill. The other two have close liaison with all the teams and countries, but at the moment they have said they are going to set up their own bodies. How important is it, from a business point of view, that they function in as similar way as possible?

Martin Baxter: In terms of functioning, the really important thing is common standards driving common outcomes. Businesses are working across the UK and beyond, so having a harmonised approach to the environmental outcomes we are looking to achieve is very important.

In terms of the governance mechanisms, the Scottish Government announced last week that they were looking to create an independent body and watchdog. For Northern Ireland, there are obviously the provisions in the Bill. Wales is perhaps on a slightly different track at the moment. I am not entirely sure where it is in terms of an independent body.

There is clearly an opportunity to drive efficiency by having a common framework, maybe for an overarching view. Yes, I agree with common governance frameworks and ensuring that there is co-operation and collaboration, so that where we have shared environments, such as shared catchments, we are managing those and setting targets and objectives for improvement on a common basis. That is very important.

I also think there is the potential within the UK that, if we start to set different standards, we will shift burdens from one place to another. If you end up with very different policies on waste, for example, you might end up shipping waste from one part of the UK to the other, just because it happens to be easier or cheaper. Those overarching mechanisms of co-operation and collaboration are very important.

[The Chair]

Thank you very much indeed. Ladies and gentlemen, that brings this session to a conclusion. Ms Norberg, Mr Lockhart-Mummery and Mr Baxter, thank you all very much indeed for coming along and affording the Committee the benefit of your observations. We are deeply grateful to you.

Examination of Witnesses

Martin Curtois, Andrew Poole and David Bellamy gave evidence.

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[The Chair]

Finally in response to this point, Mr Curtois.

Martin Curtois: On the point made earlier about plastic, post the David Attenborough programme and others, there was almost an overreaction against plastic, in the sense that people to some extent forgot its value in food preservation and were effectively looking to ban it. One problem we have to take into account, so far as plastics are concerned, is that, as was mentioned, the environmental consequences of using other products can sometimes be worse. That is obviously something that we want to steer clear of.

We also need to be careful about using the right plastics. Moving to a system in which products are manufactured primarily from high-density polyethylene, polypropylene or polyethylene terephthalate, or from a single-source product—with one plastic used for the bottle top as well as the bottle, for example—would make it a great deal easier to recycle. For example, we have a plant in Dagenham, in east London, where we effectively recycle many of the plastic milk bottles used in London, turning them into plastic pellets. Obviously, from our point of view, that single-source aspect is very important. That element needs to be taken into account.

I can understand why the focus has been on single-use plastic items first, because it has been the biggest element that the public have leapt on, in terms of recycling and in terms of wanting change, so I can see why priority has been given to that. If we can start to get that right and start to make changes that mean—for example, we have developed some kit that recognises the black plastic used in TRESemmé shampoo bottles, because of the pigment within it, which allows us to recycle that more efficiently. Significant changes can be made that could start to reduce the environmental impact quickly, which I think we all want.

[Rebecca Pow]

Q Mr Bellamy clearly highlighted the legal requirements already in place on a lot of waste and recycling issues. There is the waste strategy, which has the reuse, recycle, longer-life element to it, which is very strong. Will you give us business’s point of view on how the Bill will move us towards what we call the circular economy? What opportunities will that provide for businesses in particular? Maybe you could give special thought to the Bill aligning all local authority recycling collection services across the country. What sort of opportunities might that, among other measures, offer businesses?

[The Chair]

Mr Bellamy, you appear to be in the firing line this morning.

[Rebecca Pow]

Sorry about that.

David Bellamy: Clearly, the powers in the Bill on extended producer responsibility, introducing a deposit return system and collection consistency—provided these systems are developed holistically together, and are joined up—will, combined, revolutionise our recycling system in the UK. As I say, we need to be mindful of unintended consequences. That is why they need to be developed holistically: so we have a coherent system.

Consistency is an essential piece of this jigsaw that we do not want overlooked in taking these reforms forward. If producers are asked, for example, to label their packaging as either recyclable or non-recyclable in a binary system, it is vital that we bring the public with us on that journey. The collection system needs to be in line with that change, and consistency will need to be in place, ready, in time for this new producer responsibility system. That is vital for the FDF and its members. We support that approach.

We would also like a very early signal from Government that they plan to include plastic film in that core set of materials, for consistency. We may even be able to accelerate that faster than the work of the UK plastics pact, which I think is looking at 2025. We may be able to do that sooner with the right co-operation in the chain. We would like to be ambitious in that regard. By that, we mean mono-material and multi-material films, and we include cartons in that aspiration as well. We would like the Government to be more ambitious on that. Let’s get this right from the start, so the local authorities have the right signals from Government about the consistency in the core set of materials, and develop the infrastructure accordingly from the outset. That is very important to us.

I mentioned earlier that it is important that all the money raised by producers in this new system goes towards improving the system. That is why we have separate issues with the plastics tax; it does not adhere to that principle, because we have a policy of non-hypothecation in the UK. We are not in support of a plastics tax; we are in support of reforming the producer responsibility system through a few modulated fees, which would then be used to improve the system.

One specific issue we have is the exponential cost our members face in buying the packaging recovery notes. You may be aware that these prices have gone up exponentially over the past year or so for plastics and aluminium. There is no evidence that this additional money—our members are paying hundreds of millions of extra pounds in these costs—is going towards improving the recycling system. We are happy to pay the extra money, but we want to see the improvements in the system. We would like a meeting with the Minister as soon as can be arranged to discuss a range of options that we have set out in a written submission to Government about things that can be done in the shorter term to address this PRN crisis, as we regard it, within our membership. We would like the Minister to reconsider our request to have that meeting as soon as possible.

[The Chair]

There is no requirement on everybody to answer every question, but gentlemen, do either of you wish to add anything to that?

Andrew Poole: From our point of view, one of the things that has become abundantly clear over the past few years is that our members as small businesses are saying that they want to do the right thing, and they want to demonstrate to their customers that they are doing the right thing. Talking about the holistic approach to waste and recycling, a lot of these issues are pragmatic. How do we make it easy for small firms to play their role? On local authorities, obviously, small businesses are not allowed to take their waste to municipal sites. They are not eligible for municipal waste collections in the way that many domestic householders are, despite many of them not using many more different types of waste than those households. Again, that is in the spirit of making it as easy as possible for small firms to comply and play their role. That would be one element of it.