Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 27th March 2018 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I am delighted to bring forward this important set of regulations which introduce a new system of local authority licensing of activities involving animals in England. The regulations form part of an important package of reforms that the Government are delivering to improve animal welfare.

These regulations meet the Government’s manifesto commitment to continue their review and reform of the pet licensing controls and specifically to update the licensing system for dog breeding, pet sales, riding establishments and animal boarding establishments. They also modernise the system for animal exhibits, which are currently regulated under the Performing Animals Act 1925. The current licensing and registration system that covers these five animal activities is outdated and complex. The new regulations create up-to-date minimum welfare standards for these five activities in England, while streamlining the system for both local authorities and businesses. We have worked closely with stakeholders from the sector, animal welfare organisations, local authorities and veterinary bodies in drafting these regulations and are very grateful for their support, in particular the work of the Canine and Feline Sector Group and the Equine Sector Council for helping to co-ordinate this.

One of the key issues with the current licensing system is that the animal welfare standards with which businesses are required to comply have not been updated for many years. The schedules to the new regulations include detailed animal welfare standards for each of the activities that have been developed in close consultation with stakeholders. These will ensure that anyone who receives a licence for dog breeding, selling pets, boarding dogs and cats, hiring out horses or keeping or training animals for exhibit will need to meet these new minimum welfare standards. This should help to drive up animal welfare standards across all of these sectors.

Many people and organisations have been calling for more restrictions to be placed in particular on the breeding and selling of dogs, where it is felt that there are unscrupulous businesses that breed dogs in poor conditions for maximum profit. The regulations address this issue in a number of ways. We are making changes to the definition of dog breeding so as to ensure that the regulations capture both large-scale dog breeders as well as smaller-scale dog breeding businesses. Under the new regulations, anyone who is in the business of breeding and selling dogs will need a licence. In addition, breeders that are not classed as a business will also need a licence if they breed three or more litters a year and sell any of them. Overall, this will ensure that more breeders are captured under the regulations and will need to comply with the high animal welfare requirements set out within them. They ensure that we can crack down on unregulated backstreet breeding.

It is important to acknowledge the sad fact that many unsuspecting potential buyers are providing a lucrative market for rogue dog breeders and animal dealers who work illegally outside the licensing system. The regulations therefore include a number of measures that will help consumers to identify these rogue traders and make more informed decisions when purchasing an animal. No licensed breeder or pet seller will be able to sell a puppy, kitten, ferret or rabbit which is below eight weeks of age. In addition, we have ensured that the recently updated welfare codes for cats and dogs carry the same requirement, so that no one should be separating puppies or kittens from their mothers before eight weeks of age unless there are genuine welfare reasons for the mother or the offspring.

Following the excellent work undertaken by the Pet Advertising Advisory Group, we have placed a number of the PAAG voluntary minimum standards in the regulations. Licence holders are now required to publish their licence number on all adverts, including online adverts, so that consumers can check this with the relevant local authority to make sure that it is a legitimate business. Adverts will also have to include a photograph of the animal and state its country of residence and origin. All licensed businesses will also receive a risk rating from one to five stars, based on the welfare standards that they adopt and their compliance record. This is a similar system to the one used in the food hygiene rating scheme.

For puppies, there is an additional requirement for any sale of a puppy to be completed at the premises where the puppy was bred, to make sure that the purchaser sees the puppy and the conditions that it has been kept in before making the final purchase. All licensed breeders can only show a puppy to a prospective purchaser if it is together with its mother, unless separation from the mother is necessary for welfare reasons. All licensed pet sellers are also required to provide purchasers with information about how to care for the animal they are buying. These measures will ensure that consumers are able to make more informed decisions when buying an animal, and are better able to care for it once they have taken it home. This is particularly important for more exotic species such as reptiles.

Many people are concerned about the increase in the online sale of pets. Currently, the legislation is not clear on whether or not these businesses require a licence, and so enforcement is inconsistent across the country. Under the new regulations, all commercial sales require a licence, including those that take place online. All of these businesses will have to comply with the minimum welfare standards set out in the regulations. These measures will ensure that the licensing system is consistent and fit for purpose in this modern age.

The licensing system is run by local authorities and funded by full cost recovery, so there is no financial burden on local authorities. Licences can be issued at any point in the calendar year, which will help to spread the workload across the year. The maximum licence length that can be issued is increased from one to three years, with longer licences going to businesses with earned recognition. This should reduce the workload for local authorities, allowing them to spend more time on enforcement of unlicensed businesses and on the less compliant businesses.

This will also reduce the burden on good businesses, such as those that operate to a particularly high standard of animal welfare and those associated with a body accredited by UKAS—for example, breeders in the Kennel Club’s assured breeder scheme. Such businesses will already be exceeding the requirements of the regulations and so will be able to achieve longer licences for a lower fee. This clearly also provides an incentive for businesses to improve welfare standards.

We recognise that the implementation of these regulations will be crucial to their success, and so local authority inspectors will be required to undertake specific training on licensing and inspection. This will ensure that they are suitably qualified to undertake inspections for all of the animal activities covered by the regulations. To that end, the City of London has worked with the pet industry to develop a syllabus for a level 3 training course for animal activities inspection, which inspectors will be required to attend. Local authorities will be able to recoup all their reasonable costs for this training from the licensing regime.

The regulations have been drafted in consultation with stakeholders from the industry, animal welfare organisations, local authorities and veterinary bodies, and we are very grateful for their assistance. The regulations are proportionate and targeted and will help to improve animal welfare across a number of sectors. For these reasons, I commend the regulations to the Committee. I beg to move.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister and his officials for their time and explanations regarding this SI and for his comprehensive introductory remarks. I declare my interest as a district councillor. It is now two years since Defra’s initial consultation on this important issue and I welcome moving it forward.

This SI covers a number of domestic animal welfare issues that are of great concern to the public, including the breeding and selling of animals, animal boarding establishments and, as the Minister said, the hiring out of horses. While it is essential to ensure that animal welfare is paramount, I welcome the introduction of requiring only one licence instead of the two previously needed. This is a sensible cut in bureaucracy. The Minister has provided assurances that those working in the sector have been consulted in the form of the equine, feline and canine organisations and that the Government have been working closely with them and with vets. A licence lasting up to two years instead of being renewed every year will be welcomed, as will the risk-based approach to the length of the licence and the ability for it to be given at any time during the year, not just at the year end.

My colleague and noble friend Lady Parminter has raised the issue of puppy farming on a number of occasions inside and outside the Chamber, and was extremely concerned that there should be adequate regulation of this often very distressing industry. Defra launched a call for evidence on the third-party sale of puppies and kittens on 8 February. This consultation will close on 2 May and we look forward to its results. We would be grateful if the Minister could give us an indication of when the results might be published.

We welcome the restriction of the number of litters that a bitch may have to one a year as a great step forward. The prohibition of the sale of a puppy—as well as kittens and other animals—below the age of eight weeks, and the need for a puppy to be shown with its mother by breeders prior to sale, will also be welcomed by those legitimate breeders and owners who have the best interests of their animals at heart. Similarly, the detailed restrictions on the size, height and type of boarding kennels and catteries should ensure that domestic animals can be left by their owners, in confidence that their pets will be well looked after during their absence.

As a local councillor, I am aware that local authorities are under tremendous pressure with budget restraints. I fully support the move to allow them to have full-cost recovery for their work in granting licences, as well as being able to raise fees for reasonable enforcement. In the past, it has not always been possible for the cost of extra work passed to local authorities to be recouped in this way. There will, of course, need to be an adequate number of suitably qualified inspectors to ensure that this legislation is properly enforced. I welcome the comments that the Minister made about the new qualification. I understand that it will take three years to meet the necessary standard and that vets on the list of the Royal College of Veterinary Surgeons will carry out some of this work.

While Defra is going to publish guidance, this will not be available until the regulations come into force. Does the Minister believe that this will give enough time to local authorities to be prepared to issue the new licences in an efficient and responsive manner?

I fully support the measures covered by this SI but I have one concern. Part 4 of the schedule, which covers the hiring out of horses, does not appear to cover riding for the disabled. While the regulations cover the welfare of animals in a commercial operation, they do not apply to those which operate on a charitable basis. I would be grateful if the Minister could reassure us that if establishments which offer riding for the disabled are operating not on a charitable basis but as a business, they will be covered by this new legislation. That apart, I believe that this is a great step forward and look forward to its implementation eagerly.

[Lord De Mauley (Con)]

My Lords, I generally welcome these regulations. I declare an interest as an owner of a rescue mutt, which we are told is a cross between a poodle and a Shih Tzu. I would welcome suggestions from noble Lords as to what we should call that breed.

It must be right that puppies are not sold below the age of eight weeks. It is also right to draw the line at three litters a year. I am in favour of a risk-based approach to licensing and inspections by local authorities. In the same vein, it is helpful to avoid a backlog of inspections by operating on a basis of fixed-term licences set at any point in the year. I support the regulation of advertisements, as these regulations do, although I ask my noble friend how this will all be enforced. Are there the funds to allow the necessary inspections and monitoring of advertising? Perhaps PAAG and the excellent dog charities can help with the latter. However, what about enforcement?

I note that these regulations apply in England and I wonder what discussions my noble friend has had with the Welsh Government with a view to ascertaining whether they might do something similar. Not that it is introduced by these regulations, although they refer to it, but I have a concern about the dead hand of bureaucracy, which demands that someone who very occasionally looks after someone else’s dog, and perhaps has done so for years, should be required to obtain a licence if they are to be even modestly recompensed. Having said that, there is no excuse for poor welfare conditions for animals, and, as I have said, I generally support these regulations.

Mandatory Use of Closed Circuit Television in Slaughterhouses (England) Regulations 2018

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 27th March 2018 Grand Committee

[Lord Curry of Kirkharle]

My Lords, I have had some experience of this subject over the last 20 years. I declare an interest in that I farm in Northumberland and have livestock. During the 1990s I chaired the Meat and Livestock Commission for eight years, during which time we had the outbreaks of BSE and foot and mouth disease. Noble Lords might be interested to know that when I took over there were about 750 abattoirs, and I presided over the decline of a large number during that period.

Noble Lords have quite rightly highlighted concern about the geographic positioning of abattoirs and their importance to local and regional food production. I continue to monitor this as chair of the Prince’s Countryside Fund because we have been requested to assist where abattoirs appear to be under threat. The most recent case was in Orkney where the abattoir was closed, although it is crucial to the economy of Orkney. Work has been taking place to try to assist in the retention of critical small abattoirs. However, according to the association, over the last two years the decline has stabilised and the number of closures has been matched largely by new abattoirs opening. I am quite encouraged by that recent data.

I will ask the Minister four questions and then make a final comment. First, I absolutely agree with the noble Lord, Lord Campbell-Savours, that inspections should be unannounced and made at random. I assume and hope that the Food Standards Agency will adopt the practice. Secondly, I hope that the CCTV system will include views of the lairages so that the standard of animal welfare there is also monitored by the cameras. Thirdly, I hope that if CCTV footage is not retained for 90 days, and there is evidence, it would fall under a penalty. I know that mistakes can be made and footage can be lost, but it is often too easy to lose the CCTV footage to cover up potential breaches in regulations. I hope that that will also be regarded as attracting a penalty.

Fourthly and finally, on the issue of proportionate penalties, like the noble Baroness, Lady Byford, I was horrified to read of these suspended sentences. If that is an example of how penalties will be applied under this legislation, it is not good enough. We need to make sure that the penalties are penalties and that they are meaningful so that businesses are stopped if it is proved that their animal welfare standards have fallen short of what is desirable.

My final comment is that the Secretary of State has made it very clear that he wants Britain to be seen, post Brexit, as a nation with very high animal welfare standards. We should be trading in a world where animal welfare standards are recognised and provide us with a potential commercial advantage. It is essential that that happens and that we use this regulation to help present ourselves as having very high animal welfare standards. I remember only too well through the 1990s how confidence in our abattoirs and our meat processing was at an all-time low. That was because of bad practice. We must never let that happen again.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, again I thank the Minister and his officials for their time and extensive briefing ahead of today’s debate, and for the Minister’s introduction. We welcome these regulations. I declare my interest as a district councillor.

The public are extremely concerned about animal welfare in slaughterhouses, regardless of whether they eat meat or are vegetarian, as everybody has demonstrated. Currently, CCTV is in place in some slaughterhouses but the coverage is not comprehensive and the cameras may not be in the right places. CCTV is present, as the noble Lord has said, in 50% of red meat and 70% of poultry slaughterhouses. Making it compulsory in all slaughterhouses regardless of size will reassure the public and, we hope, ensure that animal distress is kept to a minimum. We note that the CCTV film has to be kept for 90 days and be available for inspectors to scrutinise at all times. The film and equipment will be owned by the slaughterhouses but they are still required to conform to the regulations. Enforcement for slaughterhouses with no CCTV is to be welcomed, as is making it an offence to obstruct an inspector in his or her duty.

We are concerned about the cost of installation for smaller slaughterhouses, and I agree with the noble Earl, Lord Cathcart, about this. We understand that installation can cost about £2,500, although there seems to be some debate about the actual cost. Obviously systems will be proportional and therefore smaller outfits will need smaller installations, but we do not want smaller slaughterhouses to be put out of business, resulting in animals having to travel further to the next nearest slaughterhouse. The transportation of live animals is in itself a stressful process for them, as has already been said by the noble Earl, Lord Cathcart, and the noble Baroness, Lady Byford. I attempted to find a map of the slaughterhouses in England on the Food Standards Agency website, but I was not successful. We would be grateful if the Minister could provide such a map so that it is possible to see just what kind of coverage there is, especially in deeply rural areas.

There has been a lot of debate about the reduction in the number of slaughterhouses. Since 2001, many slaughterhouses have fallen victim to the catastrophic foot and mouth outbreak in that year. I have not seen the figures on the reduction but I suspect that quite a number will have closed as a result of that outbreak. There are 290 slaughterhouses in England—or 270, depending on your maths—and it is of some concern that there may not be enough staff and vets to oversee what is going on. Other Members have made that comment. Many vets are EU migrants. Is the Minister confident that there are currently sufficient numbers to ensure animal welfare at the point of slaughter? What are the arrangements for overseeing vets? As well as the issue of the sufficiency of overseeing vets, is he confident that the current numbers can be retained, given the impact of the impending Brexit Bill? Official veterinarians are currently partly paid for by the slaughterhouses themselves, as the noble Lord, Lord Trees, has said, and partly by the Food Standards Agency—that is, by the taxpayer—so we need to ensure that there are sufficient OVs.

As well as CCTV monitoring, there are also meat hygiene responsibilities. We understand that 80% of the slaughterhouses in England are owned by two companies—although that is not what the noble Baroness, Lady Byford, said, so there may be some discrepancy in the figure. This has led to larger rather than smaller operations. In the larger plants, meat inspectors will also be needed on site. Given their current budget constraints, are local authorities able to fulfil their requirement to provide meat hygiene inspectors for those larger plants?

We fully support the introduction of this statutory instrument, which comes into place in May, with enforcement coming in six months later. I thank the Minister for his time and effort in explaining the processes.

Brexit: Fisheries Management

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 20th March 2018 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, along with my colleagues in the department we share the disappointment that the noble Baroness has suggested, but of course the UK share of quotas will not change during the implementation period and we will be attending the international negotiations. This is an extension, and the implementation period is due to conclude in December 2020, so that during that time we will be in a position to advance the things we think are absolutely right and to ensure that we fish in a sustainable manner. This country has been in the lead on that and we want to ensure, through our negotiations not only with EU members but with other independent coastal states, that the fisheries in this part of the planet are sustainably fished. That is a very important prize for us because the seafaring communities of this country are vital to us and, as I say, the changes that our negotiators have been able to secure are valuable because there is certainty. However, now we shall work on the access that we will have as an independent coastal nation, which I think is a very strong prospect for the future.

[Baroness Bakewell of Hardington Mandeville (LD)]

I thank the Minister for repeating the Answer. This issue has caused a great deal of unrest and anger among Scottish fishermen. It had been anticipated that the UK would withdraw from the common fisheries policy on the day after leaving the EU. Indeed, the Government promised that they would take back control of the UK’s fishing waters after Brexit. While Michel Barnier and David Davis may agree that the transition period is a decisive step, I fear that that view is not shared by the Scottish Fishermen’s Federation. Bertie Armstrong of the SFF has expressed the view that the Scottish industry does not trust the EU to look after its interests. Is the Minister surprised by his reaction? Why have the Government sold the fishing industry short by agreeing to this transition period? Can the Minister confirm that there has been consultation with the industry and that it was satisfied with the outcome? Are the Government prepared to let our fleet continue to be governed by rules in which our Government have had no say, and what is the Secretary of State doing to achieve a sustainable supply of fish and to avoid depleting numbers?

Trust takes a long time to build but it can be destroyed in a moment. How are the Government going to restore confidence that they do indeed have the best interests of our fishermen at heart?

[Lord Gardiner of Kimble]

My Lords, it is in the national interest that we have a vibrant fishing industry and we support fishermen in all parts of the United Kingdom. I heard Bertie Armstrong on the radio this morning and the accusation about the implementation period and the year. Interestingly, he also said that it was ironic that, regarding those parties which do not wish to leave the common fisheries policy because they do not wish to leave the EU, we would never be in a position to have the negotiation we will have when we leave the CFP. We will have access to our own waters and we will be able to decide that access for ourselves based on the science. It is important to ensure that we fish our waters sustainably and that we base our judgments on the best scientific advice available.

Water Supply Disruption

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 6th March 2018 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for repeating the Statement and I pay tribute to the emergency services, who once again made us proud of their dedication and humanity when struggling in the worst of weather to provide healthcare and reach out to people cut off by the snow. I also thank many of the staff in the utilities—the engineers and the linesmen who worked in atrocious conditions to try to repair services, so that supplies of heating and water were retained. But the individual commitment of the staff cannot disguise the huge failings in the response of the water companies themselves in the recent bad weather.

I appreciate the update that the Minister has given today but as of yesterday, 5,000 homes were still without water in Kent and thousands of properties across Wales, parts of the Midlands and Scotland were waiting to have their supplies reconnected. In London, 12,000 households were still without water last night and relying on bottled water, but even supplies of bottled water were running out at some of the distribution points. This really is a very poor response. It is not as if the bad weather was a freak occurrence. The Met Office was warning of the predicted freeze weeks in advance. Yes, of course pipes are liable to freeze when the temperature drops but, equally, we should measure water companies’ success by the speed of their response and the interim help and support they provide to their customers.

I absolutely agree with Rachel Fletcher, Ofwat’s chief executive, who is quoted in the Financial Times today as saying:

“While the recent severe weather conditions have undoubtedly had an impact on pipes and infrastructure, water companies have been warned time and again that they need to be better at planning ahead to deal with these sorts of situations, including proactively communicating with customers when they anticipate issues”.


I really struggle to understand why the water companies are so poor at this. Anyone with any business involvement knows that risk assessments and the mitigating actions that follow are fundamental to the planning process, as is having in place a proper disaster recovery system. This should be ingrained in the systems of utilities because, for example, water companies are inevitably at risk of extremes of weather, whether flood, drought or snow. I hope when the Minister met Ofwat and Water UK today they were able to reassure her that supplies will have been reconnected to all affected homes by the end of the day and that, despite the review the Minister referred to, compensation will be provided to individuals and businesses affected by the loss of supply on this occasion.

There is a wider challenge here. It is not just about the aftermath of one week of bad weather. The performance of the water companies has been under criticism for some time. Six companies missed their leakage targets for 2016-17, with Thames Water’s performance data showing that 670 million litres are being lost to leakages every single day. This total works out at an average of 180 litres per day being lost for each property the company supplies. Despite these failings on leakages, water bills have increased by more than 40% since privatisation, with many consumers set to have another rise in a few weeks’ time. Meanwhile, rather than fix the problems the private water companies are paying out huge dividends to investors. For example, the owners of the top nine water companies paid out more than £18 billion in dividends in the 10 years to 2016, and their CEOs are being paid huge salaries and bonuses. Clearly, these companies have got their priorities wrong.

I therefore have to say that the Secretary of State was quite right to criticise the water companies in his speech last week, including their tendency to avoid paying tax and to hide their earnings offshore, but like many of his speeches it lacked a follow-up action plan. These problems have been known about for some time. I hope the Minister can also confirm that as part of the review, Ofwat will be given new powers to tackle excessive pay in this sector and to require a greater proportion of profits to be reinvested in service delivery and resilience. I hope he can also confirm that Ofwat will be instructed to use its existing powers more actively to ensure that water companies plan effectively for adverse weather events in future, as we all expect of them. Finally, can the Minister confirm that Ofwat will take a more active role in overseeing companies’ delivery of leakage repairs, intervening where necessary and increasing fines for missed deadlines so that real incentives are put in place to deliver the change that we should all expect? I look forward to his response.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for repeating the Statement and the noble Baroness, Lady Jones of Whitchurch, for her comments. I agree with everything she said. The freezing weather at the end of last week was not a surprise—it had been well trailed and advertised for some time. It is therefore extremely disappointing that some water companies did not appear to respond quickly to the demand on their services by identifying and correcting burst pipes and leaks. This has caused great distress and inconvenience to thousands of households. It is unacceptable that water bill payers have been left without running water while schools and businesses across the UK are being forced to close because of water shortages. While this is a period of extreme short-term pressure, the vast amount of water that leaks from companies’ pipes every day has not decreased for the past four years. Data from the water industry regulator Ofwat shows that more than 3 billion litres leaks every day. What are the Government going to do to ensure this problem is addressed in the long term?

While expressing disappointment at the response of the water companies, I pay tribute and express the thanks of these Benches to the engineers who have worked long hours, often through the night, to reconnect households to their water supplies and to mend burst pipes and leaks. Their efforts should be recognised.

There is a real gap in the market when it comes to providing capital for critical infrastructure. A housing investment bank is needed to provide long-term capital for major new developments, to guarantee proper infrastructure and services. Locally led housing delivery must be integrated into infrastructure delivery to ensure vital utilities such as water are available at all times.

A public awareness campaign is needed to help residents insulate pipes to prevent bursting in extreme weather conditions. Can the Minister give a commitment that such a campaign will receive priority before we suffer another freezing spell from Siberia?

[Lord Gardiner of Kimble]

My Lords, I entirely agree with the noble Baronesses about the courage and fortitude of the emergency services, often in very difficult circumstances, and I begin by thanking them. I was on the conference call with the chief executives of the water companies, Ofwat and Water UK, and from the update that I have received during the course of the day it is very clear that the priority is to restore the water supply, particularly for vulnerable people and for hospitals and other institutions in the care sector. I think we are all in agreement—which may be an inconvenience—that the water companies clearly need to do better. Some are better than others. It is very important that Ofwat conducts a review and looks at the issues of preparedness and lack of preparedness. We are expecting an interim report on that by the end of the month so that we are clear about this. I emphasise “interim”—obviously we want a thorough report but we want early consideration of those matters. There have undoubtedly been some failings, and I think some of the water companies have acknowledged that as well.

The noble Baroness, Lady Jones of Whitchurch, in particular asked for some reassurances. I have outlined the numbers of households that were without supply this morning and the intelligence that we got from the water companies at the 10.30 am meeting as to their plans for restoration of supply during the day. I will obviously get constant reports on that, as will my honourable friend.

I think there has been general reflection on this—indeed, my right honourable friend reflected on it in his speech last week at the Water UK City Conference. He called on the boards of water companies to address urgently pay, terms and conditions and so forth, to demonstrate value for money, to up their game and to lower bills. Ofwat will report to the Secretary of State on corporate behaviour by the beginning of April. If Ofwat needs further powers, it should include that in that report.

Ofwat is taking enforcement action. For instance, a large fine was imposed on Thames Water for missing the leakage target and it has set the lowest cost of capital ever for the 2019 price review. I should say that water bills have in fact fallen in real terms over the last five years by 5%, and since 1994 bills are 3% higher. Since privatisation, £140 billion has been invested in infrastructure, but we need to do more. Simply put, in a country like ours we need to invest more, and we are going to look to the water companies to do so.

I was quite shocked by some of the leakage figures and tried to imagine what they meant in terms of millions of litres per day; it is really extraordinary. Ofwat has set a challenging target of 15% by 2025, and the 25-year environment plan also set out that leakages should be minimised and go down year on year. We will ask Ofwat to consider the campaign on insulating pipes, which was mentioned by the noble Baroness, Lady Bakewell, as part of its review. That is something else that we need to work on.

The points that the noble Baroness has made have been absolutely fair. I thought it was very interesting to see different chief executives’ reports into the issues that they were facing. One of the things that we are continually assessing is the situation with the thaw. As we all know, the pipes burst on the thaw, and of course the rapid thaw has probably precipitated some considerable bursts in smaller pipes rather than in the mains. This has been one of the practical issues; there have been many small bursts as the thaw has been so rapid. I think we all look forward to hearing more about what Ofwat reports on preparedness, and on what better work needs to be done in preparing should we have a similar occurrence in future, as undoubtedly we will with the climate as it is.

Waste Enforcement (England and Wales) Regulations 2018

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 27th February 2018 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, these regulations are a single composite statutory instrument which applies to both England and Wales but is made by the UK Government in relation to England and by the Welsh Government in relation to Wales. The Welsh Assembly is due to debate the regulations on 6 March. These regulations will strengthen the regulators’ arsenal to deal with non-compliant activity at waste sites by providing them with a further two powers: the power to restrict entry of persons and further waste to the site, and the power to require the removal of all waste at a non-compliant site.

Your Lordships are aware that, to minimise waste, our aim is to have a more circular economy so that resources are used more efficiently and kept in use for longer. A well-functioning waste industry, operating within a regulatory framework and in accordance with environmental permits or registered exemptions, is essential to achieve this. A small number in the industry hamper resource efficiency, damage the environment and seek to gain profit illegitimately by operating outside the regulatory framework. Ensuring that the regulators have a full range of enforcement powers is essential to bear down on that non-compliant part of the industry to ensure that waste is managed properly with no damage to the environment or to local communities.

Over the past 25 years, the nature of the waste industry has changed and government action has been needed to meet the challenges. As well as ensuring that the regulators have robust powers, since 2014 we have given the Environment Agency an additional £60 million for waste enforcement, and have recently published a consultation on proposals to tighten up the waste permitting and exemptions regime.

The two powers before your Lordships today are technical in nature. The development of these regulations included a public consultation in both England and Wales with a range of organisations, including various parts of the waste industry, the regulators, local authorities, householders and NGOs. The regulations insert new sections into the Environment Act 1995. It is a power just for the Environment Agency. If a waste site currently stockpiles more waste on its site than its permit allows, the Environment Agency is able to restrict access in certain circumstances. This can be done only in order to remove waste that is causing a serious pollution risk and only after giving a waste operator five days’ notice. This clearly limits the agency’s ability to act quickly to stop further waste entering a site and does not put the onus on the waste site operators to be responsible for waste on their site. The agency can also revoke a permit and close down a site, therefore restricting access, but it is not always proportionate to close down a waste site immediately if it does not comply with its permit.

This first new power will therefore fill this gap. The Environment Agency will be able to act immediately to restrict access by locking the gates or barring access to stop more waste coming on to a site. The Environment Agency will be able to issue an immediate restriction notice for up to 72 hours where there is a risk of serious pollution to the environment or harm to human health as a result of the waste on the site and action is necessary to prevent the risks continuing. The Environment Agency will also be able to apply to a magistrates’ court for a restriction order for an initial period of six months when there is a risk of serious pollution to the environment or harm to human health, or when an offence, such as a breach in permit conditions, has been committed which is resulting in pollution. No legitimate waste operator should fear the introduction of this new power. It has been drafted in a proportionate way and includes a right to appeal a restriction order within 21 days of the order being made. Access will remain restricted pending the determination of the appeal.

The regulations also introduce new sections into the Environmental Protection Act 1990. The second power will be available to the Environment Agency and local authorities in their capacity as waste-collection authorities, because both the agency and local authorities are responsible for different aspects of waste management regulation under the Environmental Protection Act 1990. As with the previous power, the Environment Agency and local authorities’ ability to require the clearance of waste at non-compliant sites needs strengthening. Currently, the Environment Agency and local authorities can require an occupier or a landowner to remove only waste that has been illegally deposited at a non-compliant site; for example, waste not deposited in line with the conditions of a permit. We are therefore extending the scope of the current power to enable the Environment Agency and local authorities to require operators or landowners to clear all the waste at a non-compliant site, so no waste is left at the site. The power will not be applied retrospectively and will include a two-month transition period. Like the previous power, we think it is proportionate for operators and landowners to have the ability to appeal. Giving the regulators these two additional powers will bear down on the non-compliant part of the waste industry with rigour, as part of our quest for a healthy environment for future generations. That is why I commend the draft regulations to your Lordships. I beg to move.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister for his detailed introduction of this waste enforcement SI. There are many SIs coming down the track and a great deal of detailed and complex information for your Lordships to get their heads around. It is estimated that there are currently around 600 illegal sites operating in England, Wales and Northern Ireland. The Environment Agency already has the power to shut down illegal waste sites due to the damage they cause to their surroundings.

In 2016, the Environment Agency prosecuted 110 businesses and individuals for offences related to illegal waste sites. In some cases, landowners caught by this illegal activity were unaware of it taking place. Illegal waste sites are a blight on communities and undermine legitimate landfill operators. It is to be welcomed that the Government have listened to concerns raised by businesses and local communities and are taking action to tackle this crime—a crime which not everyone in society will recognise, but doubtless it goes towards the ever-increasing crime figures, which are regularly published.

In 2015, waste crime cost the English economy more than £600 million. This included lost landfill tax revenues and clean-up costs. It creates severe problems for people who live or work nearby, with odour, dust, litter, vermin, fly infestations, pollution and fires blighting lives. These criminals undercut genuine businesses that dispose of waste responsibly. The new powers introduced for the Environment Agency to lock the gates or block access to problem waste sites to prevent thousands of tonnes of waste illegally building up are very welcome. The powers will also enable the Environment Agency to force operators to clear all the waste at a problem site, not just the illegal waste, as the Minister has just said.

I have consulted with my local waste authorities and they report that there is little or no problem in Somerset with either waste sites operating without a licence or in breach of their licence. That is good news, but it would appear that the north of England and London are the worst-hit areas. During 2016-17, more than 850 new illegal waste sites were discovered by the Environment Agency. While an average of two illegal waste sites are shut down every day, they continue to create problems for local communities and businesses, as well as posing a risk to key national infrastructure. In 2013 a fire at a waste site in Stockport resulted in the closure of the M60 and three weeks of disruption to traffic, residents and businesses.

I am grateful to the Minister for sending me the sentencing guidelines for the offences committed by these environmental criminals. I found them most interesting. The range of classifications gives due consideration to whether the offence was deliberate, reckless, negligent or of no culpability; in other words, those who deliberately and knowingly flout the law and cause the most harm to the environment can expect the penalty to be severe, whereas those who find they are the subject of a breach of the law through no fault of their own, and little harm ensues, will be penalised at a much lower level. The range of fines, from £100 to £3 million, gives plenty of scope to the Environment Agency to ensure that culprits, both unwitting and serial offenders, realise that they cannot continue to flout the law and pollute the countryside.

However, I am concerned that the extra £30 million over four years that is to be made available to the Environment Agency to tackle waste crime, in the form of illegal sites and misclassification of waste, may not be enough. That sum sounds a lot but equates to only £7.5 million a year. Given the scale of the problem in recent years, I am not convinced that this sum will be adequate. I seek assurance from the Minister that sufficient resources will be made available to the Environment Agency to enable it to carry out its new legal duties to the degree that we all wish to see. That apart, I am happy to support this very important statutory instrument.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I am grateful to the Minister for introducing these regulations and for our earlier meeting to talk through the proposals, which I found very useful. We support these new powers: obviously, they will help tackle illegal activity at waste sites and will be an important additional tool for waste regulation and collection authorities in tackling the growing menace of waste crime. As we know, this takes many forms, from fly-tipping by builders and illegal dumping on farmland to large-scale criminal activity involving illegal sites and operators misclassifying waste to evade millions of pounds of tax, and so on. It is definitely time to take action.

Diverting waste from landfill, and increasing our capacity to store, sort and treat it for recycling and recovery, has to be an essential element of a future circular economy based on the waste hierarchy. If it is done well, it will bring economic and environmental benefits. In that context, the majority of waste sites play within the rules and understand their responsibilities. Unfortunately, there appears to be a sizeable minority of sites which seem to take pleasure in stretching the rules or operating completely outside the legislation. Not only is this illegal but it creates an unfair advantage over the more responsible operators. As the Explanatory Notes make clear, illegal waste sites can cause pollution to the environment as well as endanger public health. They pose a risk of fire, water pollution and other irritants such as odour, litter and fly infestations, which can cause misery for nearby communities. All too often, it is left to public bodies and owners of land to clear up the mess.

The recent Environmental Services Association Education Trust report, Waste Crime: Tackling Britain’s Dirty Secret, estimates that waste crime costs the UK £560 million a year. The Chief Fire Officers Association estimates that the cost of dealing with fires at waste sites across the UK is around £16 million a year. By any measure of cost-benefit analysis, it makes sense to crack down on the gangsters who are creating the problems in the first place, rather than leaving it to the public purse to clear up the mess. So these measures to restrict access to sites and to enforce clean-ups, as well as to fine and in more serious cases to jail those involved, have to be welcomed.

Air Quality

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 22nd February 2018 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I think that all your Lordships want clean and cleaner air. That is why the Government have invested considerable sums of money, amounting to £3.5 billion. I can go through some of that expenditure in detail, but much of it is in support of things such as cleaner buses. For instance, retrofitting school buses in Manchester has resulted in a 92% reduction in emissions; the level of nitrogen dioxide fell by 27% from 2010 to 2016 and by 10% from 2015 to 2016. So progress is being made, but we want to do more. That is why, across the piece, we are going to bring forward our clean air strategy.

However, I want to be clear to the noble Baroness that the judge acknowledged that very considerable time and effort had been invested by both Ministers and officials. The judge also said, in relation to the five main cities where there is a considerable problem, that what was being brought forward was lawful. I do not want to trade elements of the judgment, because we should take it seriously. That is why, instead of requesting the 33 local authorities to undertake measures, we will be requiring and directing them to do so, because we want to make progress.

It is interesting that, of those 33 areas—which is really what the judgment came down to: what we are going to do about those 33 areas where we need to achieve compliance—10 are projected to come into compliance next year, 13 in 2020 and the final 10 in 2021. In looking at this, a lot of what can be done could be done comparatively cheaply—for instance, the rephasing of traffic lights, including at roundabouts. There are a number of ways in which we want to work with the individual local authorities concerned. The reason we have requested and required the leaders to come to the meeting next Wednesday is precisely so we can get what we all want, which is cleaner air for everyone.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for repeating the reply to the Urgent Question. In the “Conclusions” section of the hearing referred to earlier on the air quality plan, Mr Justice Garnham said:

“In its application to the 45 local authority areas, it does not contain measures sufficient to ensure substantive compliance with the 2008 Directive and the English Regulations”.


The Minister has stressed that the Government are fulfilling their legal requirements under the UK plan for tackling nitrogen dioxide concentrations, but I put it to him that those legal requirements fall a long way short of what is required to improve air quality in the 45 cities—never mind the 33—that were the subject of the court action taken by ClientEarth. The residents of those 45 cities deserve better for their children and elderly. Air pollution costs the UK economy £20 billion every year. Sick and vulnerable people, the elderly and children are particularly at risk. The health problems resulting from exposure to air pollution have a high cost to NHS services and business. As an asthmatic, I find that I am severely affected by poor quality air.

The Government’s success in banning the use of microbeads in wash-off cosmetic products could be extended to assist with the air pollution in the country. Research suggests that chemicals in everyday consumer products, including perfumes and paints, have been revealed as a major source of air pollution, comparable with emissions from the transport sector. This research suggests that these products emit significant quantities of petroleum-based chemicals, rivalling cars and other vehicles as the top source of urban air pollution. What steps are the Government taking to tackle this source of air pollution?

[Lord Gardiner of Kimble]

My Lords, the clean air strategy we are bringing forward is designed to deal with all elements of air pollution, because we think that is very important. I should have said to the noble Baroness, Lady Smith, that we are not intending to appeal; we want to implement what the judge has said. We are working actively, in different ways, with all the cities involved, helping them to tackle their NO₂ exceedances, and that is an issue for the whole United Kingdom. Wales, which was a separate party to the action, has conceded that it needs to do more and will be bringing forward a new plan in July. There are exceedances in Scotland and Northern Ireland—in fact, 22 of the 28 countries of the EU are in exceedance—so this is an issue we all need to grapple with very seriously. I am confident that my honourable friend Minister Coffey is dealing with this with rigour and drive.

Environment: 25-year Plan

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 29th January 2018 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, this has been a most fascinating and informed debate. We have listened to many speakers with a wealth of experience in protecting and enhancing the environment. I thank the Minister for delivering on his promise to secure a debate on this subject so quickly and at such a timely moment, when it can feed into the debate on the European Union (Withdrawal) Bill, which will start tomorrow and continue on Wednesday.

We have heard some marvellous speeches about the importance of trees, about ancient woodlands from the noble Baroness, Lady Young of Old Scone, and about the dangers of ivy on healthy trees from the noble Lord, Lord Framlingham. I wholeheartedly agree with him. It is one of the bugbears of my life as well. We heard about carbon and green gas emissions from my noble friend Lady Featherstone and about the need to restore peat lands, soil welfare and the importance of water quality, which were spoken about by the noble Baroness, Lady Byford. Pressure groups around the UK are mentioned in the plan. As my noble friend Lady Scott of Needham Market said, water quality is vital to the life of the planet and to this country.

The plan is extensive and aspirational. Most environmental groups that have contacted me have welcomed the plan as a step in the right direction but felt it could go much further and be more strongly enshrined in law. The exception was ClientEarth, which felt the plan was full of empty promises. While being aspirational, which is good, the plan certainly needs to be grounded in statute and to be enforced if it is to deliver as the Government hope it will. As the noble Lord, Lord Cameron, so eloquently said, it has to deliver for the sake of our young people who care so passionately about the environment. My noble friend Lady Miller asked how success will be measured. That is a question the Minister needs to answer. How will we know? What about the ecologically coherent aspects of the plan that have to be addressed across all sectors? The noble Earl, Lord Caithness, said that we have some hard decisions to make on wildlife. I agree that that is important. The examples he gave are food for thought. Tenant farmers need to benefit from efforts to make their farms sustainable. The benefits should not be going to landlords.

Last week, with the noble Baroness, Lady Byford, and the noble Earl, Lord Caithness, I met the Nature Friendly Farming Network, a self-organised group of farmers from across the UK with a passion for sustainable farming and nature. Formed last year, it welcomes the 25-year environment plan and the commitment to the environment it shows, including the commitment to put the environment first when it comes to future agriculture support. The Secretary of State recognises that the common agricultural policy has in the past led to environmental damage and that direct payments are a largely inefficient use of taxpayer money. He has said that he will replace the basic payment scheme with a system of investment in public goods, and the environment is the principal public good. It will be important for the public money invested to be equal to the task.

There is a positive recognition that productivity and sustainability go hand in hand and need to be addressed in tandem. This is an important change from previous attempts to deal with them separately or even to see them as in opposition. A real test of the plan will be how it delivers on both of these.

The continued investment in technical advice and landscape co-ordination is also welcome. Farmers are pleased to see references to this in the plan, as they know that working in partnership, whether with other farmers, landowners or advisers, is often the key to achieving great things for nature and the environment.

All this is very positive, but this view is not shared across the whole UK. When the Secretary of State, Michael Gove, visited Ireland recently to talk to the Northern Ireland farming conference, he talked about England, England, England. This left those in southern and Northern Ireland wondering just what it was he has planned for the farming communities there. If the plan is to be successful, there has to be widespread co-operation across the whole of the UK, including the devolved Administrations. As previous speakers have said, the Government must tackle this issue and not leave it to others.

The role of insects is vital, as detailed by the noble Lord, Lord Oxburgh. Pollinators are important to growing crops, plant survival and honey production. They are both at the bottom of the food chain, but are a vital part of it.

As many have spotted, there are anomalies in the rhetoric coming from Government. The Prime Minister and Secretary of State have stated forcefully their wish to see a reduction in the use of plastics in the UK. They have set a target of 2042, which is far too late. Yet, while regretting the use of plastics on one hand, on the other the Government have cut their funding to WRAP, resulting in WRAP having to make 25 staff redundant. WRAP is the very organisation which would have helped the Prime Minister to deliver her waste reduction plan. These redundancies came just one week after the launch of the 25-year environment plan. Targets need to be set on recycling waste plastic coffee cups or to phase out their use, as the right reverend Prelate the Bishop of Salisbury has already flagged up.

All the way through the plan, the text is all about co-operation with other countries, both within the EU and worldwide. However, there is sadly more evidence that the Government are talking the talk, but not walking the walk on this issue. As we know, the country’s recycling rate has flatlined at 44%, short of the EU target of 50% by 2020. Despite the Prime Minster and Secretary of State’s reassurance of commitment to recycling, the Unearthed project has discovered from an EU delegation’s notes that UK officials have indicated the UK will not support an EU-wide target of recycling 65% of all municipal waste. If this is correct, this is a scandalous backtracking even before the new plan is put into operation. Can the Minister confirm whether this is true?

Throughout the plan, the Government indicate they will set up bodies to enforce the aims of the plan. It talks about “a responsible body” to oversee covenants. Can the Government now say exactly how the enforcement body will be set up, who will sit on it and whether it will be independent of government?

We would also like to know when Defra will set out the process for developing further objectives and milestones for delivery. What standing will those objectives have in law? If the objectives are voluntary, what assurances can the Minister give the House that the plan will be delivered, a point raised by the noble Lords, Lord Krebs, and the noble Lord, Lord Judd?

What discussions have the Government had with the devolved Administrations about new, shared environment goals? What format will the annual progress reports take in public and in Parliament? Does the Minister expect the new statutory environment body to have the power to bring a legal challenge if the Government fail to meet the objectives of the 25-year environment plan?

I was disappointed not to see a specific date when the Government will implement a total ban on the sale, import and export of ivory from the UK. In the debate in the House on the last Thursday before Christmas, the majority of those taking part were in favour of a ban on ivory sales, and this move would be supported by the majority of the public. I look forward to the Minister’s response to this important debate, on a subject which I know is dear to his heart, as it is to many here today.

Environmental Permitting (England and Wales) (Amendment) Regulations 2018

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 22nd January 2018 Lords Chamber

[Lord Jones (Lab)]

My Lords, as ever, the Minister has made helpful and succinct introductory remarks to this statutory instrument, for which I thank him. Can he confirm that recently there have been changes at the top of the natural resources body for Wales? Is there a new director and a new chair? Are there any details he can give, either now or at a later date, about the principles of the chair and the director of that body in Wales? What is the extent of the contact and co-operation between the Environment Agency and Natural Resources Wales, bearing in mind that we now have devolved government operating in Cardiff? Can he say what his department’s experience is of dealing with our Government in Cardiff?

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister for his helpful and constructive introduction to these regulations. As has been said, they bring into line medium combustion generators with larger ones. However, in applying these regulations to 1 to 50 megawatt generators, it has to be said that 50 megawatts would be capable of powering up to 8,000 homes. That is not a small undertaking and is therefore, quite rightly, worthy of regulation. This size is typical of the generators used, as the noble Lord has said, for a range of purposes including electricity generation, domestic and residential heating and cooling, providing heat and steam for industrial processes and so on. Generators of this capacity are inherently diesel or gas powered, and these regulations bring diesel down to the level of gas-powered generators.

The Government are rightly attempting to reduce the level of emissions in this country. Poor air quality is the largest environmental risk to public health in the UK. However, they are presently 10 years late in meeting air quality standards. Public health is at risk and there is no time to lose if the NHS is not to be overburdened with patients with respiratory problems. Government estimates show that in 2008, the number of deaths attributable to fine particulate matter—that is, poor air quality—was 29,000. In 2016, the Royal College of Physicians estimated that the cost of the health impacts of air pollution to the UK was £20 billion.

There are approximately 143,000 medium combustion plants in the European Union, with an estimated 30,000 in the UK. The increase in the use of such generators has been identified as a source of avoidable increases in national emissions. Many generator farms have been set up solely to sell electricity back to the national grid. While this is very enterprising, it is having an effect on the nation’s health. The National Audit Office identified in 2017 that the Government will not achieve compliance with EU limits on nitrogen dioxide until 2021, some 11 years later than the deadline of 2010. In 2016, more than 85% of air quality zones in the UK, 37 out of 43, did not meet EU nitrogen dioxide limits and government estimates show that all 43 air quality zones will not be compliant with the limits until 2026. The measures being taken today are a step in the right direction, but there is still much more to do, and faster.

While I am happy with agreeing to the regulations, I would like to raise a point about flooding. In paragraphs 7.9 and 7.10 of the Explanatory Memorandum, the regulations indicate that the Environment Agency can use enforcement undertakings for a number of activities. In those areas of the country prone to continual flooding, such as the Somerset Levels, householders and businesses are often flooded to varying degrees of depth. Many have standby generators to pump water out of their premises when levels do not subside in an acceptable timescale, and often much larger generators have to be brought in to ease widespread flooding. Will the Minister give a reassurance that in such cases, enforcement action would not be taken if the generator in use did not comply with the regulations we are approving today?

I fully support the move to improve air quality as indicated in the air quality strategy and agree that tackling the most polluting generators must come into line first. However, an FOI request in October 2017 revealed that the Government had spent £370,000 in unsuccessfully challenging two court claims that their plans to tackle air pollution were “illegally poor”. Was this a wise use of money and could it not have been better spent on tackling air pollution itself? It is important to ensure that enforcement powers not only continue to remain available to tackle pollutants, but that the culture shift we are beginning to see in government from defending flawed environmental policy to enabling and adequately funding the means to safeguard air quality moves ahead at a much faster pace. These regulations are a welcome step in the right direction and I support them.

[Lord Grantchester (Lab)]

My Lords, I thank the Minister for his introduction to the regulations before your Lordships’ House. I am also grateful to him for facilitating a meeting last week with his officials, Sejal Mahida, Andrew Baxter and Katie Doubleday, who explained many of the technical details and issues behind the regulations and the medium combustion plant directive.

Poor air quality is the biggest public health risk facing the UK. The Government’s slow and inadequate response to the situation has led to several infraction proceedings in the courts, brought by ClientEarth. As the noble Baroness, Lady Bakewell, has said, 29,000 people suffer prematurely due to problems from breathing poor-quality air. Children are also bearing the brunt of this air quality crisis, as the worst pollution hotspots often occur around schools due to the concentration of diesel fumes from vehicles discharging at idling speed at a low height, at which children are vulnerable.

The European Commission has recognised the seriousness of the situation and, from its review, published in 2013 the clean air package. It has issued various emissions directives concerning different sizes of plants. It is from the Government’s failures to meet air quality standards that ClientEarth has secured court rulings that the Government must bring forward and implement clean air strategies. It can be argued that this experience has highlighted the need to create an effective enforcement agency to assist Governments to meet their environmental responsibilities. It is to the Government’s credit that they have finally accepted this and will bring forward proposals for this new governance structure. Perhaps the Minister could say how the Government are developing their thoughts, what their proposals are and whether they will be ready by the time the UK leaves the EU.

It is to be recognised that the Government have consolidated previous amending instruments into the 2016 regulations. These regulations will continue the process of bringing these amendments into a single set of regulations. They will apply to combustion plants and generators, some of which will feed into the grid. There are 23,000 such plants and generators, which have proliferated in recent years.

Labour has been very critical of the Government for allowing polluting diesel to bid into the capacity market as this could be said to have contributed to the problem. Notwithstanding that Labour may not have allowed access to the capacity market, bearing in mind that both BEIS and National Grid are confident that there will continue to be sufficient liquidity and security of supply will be unaffected by this supply, it is nevertheless accepted that these amendment regulations fall outside the capacity market’s regulations and rules, and so are not strictly a relevant consideration and allow the capacity market the stance of technology neutrality. In allowing this diesel technology, it must comply with all the directives concerning emissions and air quality.

The important point highlighted by your Lordships’ Secondary Legislation Scrutiny Committee is that old and new combustion plants and generators must comply with the emission standards by the end of December 2018. This will avoid the unintended consequence that older diesel plants will not receive a competitive advantage from unabated emissions that new modern equipment has to adhere to. Labour supports the Government in that operators bidding for new agreements will need to meet the same emissions controls, irrespective of whether they are existing or new generators. In that sense it will be a level playing field.

I support the regulations before your Lordships’ House and welcome the early implementation of the higher standards being imposed from 2019. Indeed, from 2019 emissions will have to be reduced to the extent that emissions from diesel plants and generators will be on a par with gas. These amendment regulations will result in new agreements signing up to higher standards sooner. Existing and older plants will have to clean up sooner. It is recognised that the greater polluters—existing plants—are being tackled first to meet the standard achieved by newer plants.

While recognising that this will have an impact on several stakeholders, the explanatory documents underline the greater public benefit of air improvements, with savings to the National Health Service welcomed by several foundations including the heart and lung foundations. For this reason, we endorse the shorter timeframes coming into play and recognise that they will be significant in helping the UK meet its 2030 reduction targets.

Water Abstraction Regulations

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 15th January 2018 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I pursue this Motion to Regret the four water abstraction regulations that have been tabled for three main reasons: first, the policy implications contained therein; secondly, the pattern of delays in Defra dealing with regulations; and, thirdly, the wider capacity issues within the department to deal with future legislation.

The background to the Motion is the excellent report of the Secondary Legislation Scrutiny Committee, which was published on 16 November 2017. As ever, the committee has carried out its responsibility with scrupulous attention to detail and to the public policy implications of the regulations. The report describes how the four sets of regulations have the combined effect of ending exemptions from the requirement to obtain a licence to abstract water. This has significant environmental implications as, in the past, unfettered water abstraction—for example, in the use of irrigation—has impacted on the flow of water available for other users further downstream. As the Defra Explanatory Memorandum makes clear, currently 5,000 significant water abstractions are exempt from licensing, compared to 20,000 that do have to have a licence. This creates an unfair playing field and allows unlicensed abstractors to put pressure on the environment and other water users.

Given the environmental importance of this issue and our understanding of the need for careful management of water catchment areas, particularly in the light of recent flooding crises, I would have thought that the Government would have been keen to act. Sadly, the opposite has been the case. As the Secondary Legislation Scrutiny Committee has highlighted, these regulations have been tabled 14 years after the requirement to do so in the Water Act 2003, and five years after a deadline set by the EU water framework directive. Not only is this negligent but it put us at odds with our EU obligations, which could have led to the Commission bringing formal proceeding against us, which, in turn, could have led to taxpayers funding the Government’s defence. I have to ask: why did it take so long to act on this issue?

Over this period, the Government carried out two consultations on proposals to remove the licensing exemptions. The first was instigated in 2009, resulting from the Labour Government’s decision to consult on the need to comply with the EU directive. Not surprisingly, those who already had licences and those concerned with the environment supported the regulations, and, again not surprisingly, those who did not have licences were resistant to the proposals. When the new Government came in in 2010, they failed to implement the changes required as they decided that the business concerns were more important than the environmental concerns. It then took another six years for the Government to decide that a new consultation was necessary. As the SLSC report makes clear, this proposed a,

“light-touch, risk based approach to licensing … which is now being taken forward”.

Indeed, the impact assessment concentrates its concerns on the cost to business of making these changes. As the SLSC report concludes:

“It is clear that Defra’s concern to mitigate the impacts on business has been an important cause of the protracted timescale for removing these licensing exemptions”.


My first reason for pursuing this Motion to Regret is to highlight our concerns that business interests are being put before environmental interests and before the need for fair play between those who are already in compliance and those who seem to want to continue to act outside the system. Is this the way that the Government are going to go forward? If it is, it rather contradicts everything that the Secretary of State has said about putting the environment first, and the rather lofty ambitions of the 25-year environment plan, which will require some hard choices, considerable behaviour change and potential costs on the part of business. It would be helpful if the Minister could clarify whether the Government’s policy in the most recent consultation, based on prioritising business needs over environmental objectives, remains the same.

Secondly, I would like to raise the inconceivable delay in bringing forward these regulations. We are now 12 years past the Water Act 2003 and five years past the deadline for compliance with the EU directive. How can the Minister justify this delay? I raise this with particular concern, because it is not a one-off event. This is not the first time that the SLSC has criticised Defra’s treatment of secondary legislation. In July, the SLSC noted that the Marketing of Fruit Plant and Propagating Material (England) Regulations 2017, which transposed three EU directives, missed the transposition deadline of 1 January 2017. The Commission issued a formal notice to the UK in late January and, in response, the department set a revised transposition deadline of June. In the same week, the committee also noted that the Single Common Market Organisation (Emergency Aid) (England and Northern Ireland) Regulations 2017 were based on a short, two-week consultation in September and October 2016. That was done for good reason, but the committee questioned why, given the early October consultation deadline, it then took six months for the regulations to be laid.

In March, the committee noted that Defra’s answers to its questions on the Commons (Registration of Town or Village Greens) and Dedicated Highways (Landowner Statements and Declarations) (England) (Amendment) Regulations 2016 had misrepresented the position of user groups. The committee wrote to the Minister to bring the case to his attention. In his response, he acknowledged that the department may have given the committee the wrong impression. I would be grateful if the Minister could explain why these delays and mistakes are taking place and what is being done to address these failures. The prompt and accurate processing of secondary legislation is an essential part of legislative scrutiny and I hope he can confirm that it will be taken more seriously in the future.

Finally, I want to raise the wider issue of the department’s capacity to handle forthcoming legislation. We already know that 80% of legislation affecting Defra is derived from the EU level. The European Union (Withdrawal) Bill will give ongoing legal effect to the directly applicable legislation, which the UK will of course take on board. At the same time, the technical details, in the form of statutory instruments, will need to be crafted accurately and in a timely manner.

The noble Lord will know that the January 2017 House of Commons Library briefing found there are 922 regulations relating to agriculture, 1,122 to fisheries and 527 in the field of environment, consumer and health protection. While not all of these will be relevant to the UK, it is clear that Defra will have a significant amount of extra work to carry out between now and March 2019. At the same time, we already have promises for an animal sentience Bill, a fisheries Bill and an agriculture Bill—all of which are expected this year.

In November 2015, RSPB and Wildlife Trusts economists said that cuts to Defra’s budget would be equivalent to 57% in real terms over the course of two Parliaments. I accept that this has been partially mitigated as, in October, the Government confirmed extra funding for Defra in order to prepare for Brexit. At the time, the department said that it expected to hire an additional 1,200 civil servants to cope with its extra workload. However, a National Audit Office report published this month suggests that only half this number of posts had been filled as at November, and of course these posts are only intended to cover the work of Brexit, not the wider day-to-day running of the department. Is the Minister satisfied that Defra now has the resources necessary, at the right level of knowledge and training, to process the huge workload linked to Brexit, as well as the day-to-day work such as preparing primary and secondary legislation and rolling out the 25-year environment plan?

I look forward to the Minister’s response on these three challenges—the Government’s approach to regulating business in the context of environmental priorities, the need to address the delays and errors in the processing of secondary legislation, and the overall capacity of the department to deal with the upcoming workload.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am very grateful to the noble Baroness, Lady Jones of Whitchurch, for putting down this Motion to Regret. I am able to support all of her arguments in this vital matter. The use and retention of water is key to the way in which the country is able to function, both in terms of domestic properties, farming and business.

As the noble Baroness said, the 10th report of the Secondary Legislation Scrutiny Committee back in November made it very clear that the Government have taken an exceedingly long time to reach the point where they feel they can move forward with secondary legislation—some 14 years after the parent Act. Currently around 5,000 significant water abstractions are exempt from licensing, while some 20,000 abstractions have licences. There does not appear to be any substantial reason why licences should not apply to all abstractors. This is clearly inequitable.

Keeping our rivers flowing must be a priority as overabstraction is damaging diverse wildlife populations. It would seem, from the Prime Minister’s speech last Thursday, that the Government have now woken up to this fact. Analysis shows that the economic and social costs of drought far exceed the costs of addressing the problem and that the rate of return on investment of improving river health is high.

Nearly a quarter of rivers in England are at risk from unsustainable water abstraction, with 14% classified as overabstracted, meaning that water removal is causing rivers to drop below levels required to sustain wildlife. Some 9% are overlicensed, meaning that the river would be overabstracted if licence-holders took all the water they were entitled to. This situation is critical and should not have had to wait 14 years to be addressed.

As we heard, the Government conducted a consultation in 2009 and then again in 2016. I wonder if having consulted in 2009, the incoming Government did not like the responses and shelved the document. I have looked at the responses to the 2016 consultation. Farmers and the mining and quarrying industries were the highest responders, but some responders did not reply to all questions, as they did not all apply to them. Somerset has farming, mining and quarrying industries that are highly dependent on water abstraction. I found the responses of the water level management contributors most interesting, as I live close to the Somerset Levels. The internal drainage boards are only a small section of responders, but they are extremely important.

I was also interested in the response to Question 3 on excluding compensation provisions for future abstractors, with all six environmental groups agreeing with the proposal and all seven in the quarrying and mining sector disagreeing. I understand the Government’s dilemma in trying to please everyone. But water, as we know, needs to be both harvested and protected for the environment. The Government must transpose the water framework directive in full, establishing mechanisms and sanctions to enforce its implementation, even if we leave the EU. The 2027 deadline to increase the proportion of water bodies in good ecological status should be upheld.

The Government’s Brexit White Paper guaranteed that this important piece of legislation and its 2027 deadline would be transposed into UK law. Will the Minister now confirm that this will happen? In its Water for Life White Paper, Defra set out its intention to reform the abstraction regime to ensure sufficient water for wildlife and economic growth. The resulting legislation to make this a reality was due this spring. But in April 2017, the Minister confirmed that new legislation was on hold due to insufficient parliamentary time to take it forward.

In 2016-2017, Britain experienced the driest winter and early spring for more than 20 years according to the Met Office. But Parliament appears not to have been able to allow time for the Government to implement the vital legislation covered in the Water for Life White Paper.

As well as wildlife and biodiversity, water abstraction featured in last week’s 25-year environment plan. The Government aim to amend licences in cases of unsustainable abstraction; encourage water trading and storage; introduce more low-flow controls to protect the environment; and replace seasonal constraints to allow extra abstraction at high flows. They will be extremely busy and it will be good if all that comes to pass.

In many parts of the country, severe drought is a real issue, but in others, the problem is flooding. Managing water flow, storage and movement is key to all those areas affected. Not taking action on the directive for 14 years seems to these Benches to be dilatory in the extreme. I look forward to the Minister’s response on this important matter.

[Baroness Byford (Con)]

My Lords, I should perhaps declare an interest as a farmer in Suffolk. I do not think that we use any irrigation on our crops because the land is pretty heavy and wet—but I will correct that in the future if I am wrong.

Tonight is a slightly odd circumstance for me and for the noble Lord, Lord Whitty, who is in his place opposite. He and I took the Water Bill through the House back in 2003. I remind noble Lords who are contributing today that one of the things that we did with that Bill was to exclude small businesses from having to have a licence control certificate if they took less than 20 cubic metres a day. I think that that is still the position today.

I, too, pay tribute to the Secondary Legislation Scrutiny Committee. When I was in the same position as the noble Baroness, Lady Jones, as shadow Minister with the agriculture brief for 10 years, I relied on the committee a lot and I was very grateful to it for bringing certain things to my attention. The delay that it referred to at the end is certainly accepted as far as I am concerned—and I am sure will be by my noble friend the Minister when he comes to respond.

I will refer to one or two things within the section that we are dealing with. In fact, the Act came into being in 2003. If one were casting aspersions at the present Government taking a long while, I cannot remember why on earth in 2003 we did not move it on quicker and have the consultation earlier. Perhaps the noble Lord, Lord Whitty, will be able to remind me. There was quite a long time between the Act coming into being and going out to consultation in the first place. Again, the noble Baroness, Lady Jones, or the noble Lord will have more information than I do.

Fisheries: London Convention—Withdrawal

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 11th January 2018 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, the countries involved in the London Fisheries Convention expected this to happen. It deals with the six to 12 miles issue when already we will leave the 12 to 200 miles agreement when we leave the common fisheries policy and the EU. This is why we took the decision that we did. As I have said, we want to work with partners, because fish stocks need to be sustainably driven. However, it gives an opportunity for the excellent fishing fleets in all parts of our kingdom to fish productively, sustainably and profitably.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I have heard what the Minister has said, but does he not agree that the Government must allow full parliamentary scrutiny of decisions affecting historic rights of access to UK and European waters?

[Lord Gardiner of Kimble]

My Lords, as I have said, a great deal of consideration went into this. Article 5 and annexe 1 of the Council regulation deal with historic rights. They are already in the common fisheries policy and it was a moot point as to whether we needed to address this issue at all. We thought it would be open and honest with the partners we have in the London convention formally to trigger that we would be leaving in two years’ time.