Waste Industry: Criminality and Regulation
Debate between Lord Beamish and Gary Streeter(2 years, 10 months ago)
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Mr Kevan Jones (North Durham) (Lab)
I congratulate the hon. Member for Newcastle-under-Lyme (Aaron Bell) on securing the debate. He has summed up the situation well.
I have been involved trying to expose this issue for the last 10 years, along with the right hon. Member for Haltemprice and Howden (Mr Davis). Everyone knows what is going on. They know about the lack of regulation, the low threshold for getting into the industry and the involvement of organised crime. HMRC itself in its tax gap report recognises that some 22% of landfill tax is not being paid, although it actually put a profit warning on that. The Environment Agency knows not only what has been lost in tax revenues, but that the clean-up costs will fall on the taxpayer. Everyone knows that the matter involves organised crime. I have raised it for the last 10 years, and I am sure the right hon. Gentleman will allude to that as well. We have explained all this to the Government, but there seems to be inaction in respect of getting the agencies together.
The Environment Agency is not capable of addressing the matter. It may be good at cuddling newts and protecting forests, but it is not good at having an enforcement attitude. HMRC is frankly a disgrace, and I will give an example of why I say that. I got involved in the matter because of a company in the north-east called Niramax. I only had to look at the directors of the company to see something was wrong. Organised criminals—one of them is in prison for murder, and the police told me that his associates had convictions and were involved in a whole host of organised crime—suddenly got involved in waste management. They bought a landfill site in the constituency of the right hon. Member for Haltemprice and Howden, which I know he will talk about, and one or two in the north-east. They then set out to undercut legitimate businesses. Talking to people in the waste industry, there is no way they could pick up that waste for the amounts they charged.
It ended up with Operation Nosedive, which HMRC instigated in 2014. HMRC raided the premises and claimed £78 million was to be reclaimed. That was suddenly halted in 2020. The right hon. Member for Haltemprice and Howden and I asked why it had been halted and we were told, “No, no. You can’t look into this because it is HMRC.” The National Audit Office has done a very good investigation that showed HMRC spent six years and £3.5 million of public money, but there were no convictions and there was no outcome.
Everyone knows what the problem is, but there has got to be action. I say to the Minister, I do not want more initiatives about fly-tipping and this, that and the other; I want co-ordinated action between the agencies that have the powers to crack down on this.
Sir Gary Streeter (in the Chair)
You have two and a half minutes each, colleagues.