Environment Bill

Lord Blencathra Excerpts

Committee stage
Wednesday 7th July 2021 Lords Chamber

Our Amendments 196, 201AZA and 201AZB address this concern and would ensure that habitats created under net gain would be secured in perpetuity. I ask the Minister to take our concerns about this seriously.

[Lord Blencathra (Con)]

My Lords, I declare my interests as on the register. It was an absolute pleasure to hear my noble friend introduce this vital new clause, which is quite superb. It is also amazing to hear that he has accepted every recommendation of the Delegated Powers and Regulatory Reform Committee, which I am privileged to chair. I think, in all my time in the House, I have never known a Minister or a department accept every single recommendation. I have already said to another very big, powerful government department that if it wants to see how to do delegated powers properly, it should look at the Defra Delegated Powers Memorandum and see the way in which it has drafted a very large Bill, in eight parts, covering an awful lot of delegated powers, and done so with proper parliamentary scrutiny. I commend that to every other department.

Officially, I shall speak to Amendments 200 and 201 on biodiversity net gain—or nature net gain, as I would love to have it called—and to support my noble friend the Minister and his wonderful, large new clause. As someone who passionately believes in recovering our nature, I consider this to be one of the most important clauses in the Bill. When we add up the clauses on biodiversity targets, local nature recovery strategies, species conservation targets and now 10% minimum net gain, this is the greatest step forward this country has ever taken to bend the curve of nature loss and begin full-scale nature recovery. The only principal differences between my noble friend’s amendments and mine are that mine attempt to apply biodiversity net gain to the first two legs of HS2 and the Minister’s amendments are much longer with a lot of detail—that always makes me slightly suspicious, of course. However, my noble friend has pulled off an absolute blinder in getting other departments to agree to extend net gain to all national strategic infrastructure projects.

A few months ago, I and others made the case in this Chamber that 10% net gain be extended to HS— the Birmingham to Crewe leg—but that was resisted by the DfT. To be fair, the excellent Transport Minister in the other place, Andrew Stephenson MP, has been pressing HS2 to go further than “no net loss”—the current policy—and it seems to be moving in that direction. I want the Government to make sure that HS2 follows up on the welcome aspiration of a commitment to BNG.

I hope that will not be a watered-down version of net gain—it should be open, transparent and open to scrutiny. Net gain should be net gain, whether its supported by legislation or not. While we in this Committee may be urging my noble friend to go faster or do more, we must acknowledge that he and Defra have persuaded the Treasury, BEIS and DfT to accept 10% biodiversity net gain for all national strategic infrastructure projects. Quite frankly, that is an astonishing achievement and I did not expect to see it. It is important that NSIPs can and should deliver BNG to at least the same standards as those expected for other developments.

I welcome the reference to NSIPs having access to the statutory biodiversity credits scheme in the case of market failure. Natural England is currently developing this credits scheme. I like how BNG is to be embedded within national policy statements through biodiversity net gain statements and that there are mechanisms to be put in place for those sectors where the NSIPs have yet to be updated or where there is no national policy statements. I consider that this will allow for sufficient flexibility to allow biodiversity net gain to be tailored to any sector requirements if and where needed.

I am delighted to see it also extended to marine. That issue is contained in my amendments and I thought that I would have to argue the case for it. All I need to do instead is say, “Well done, Minister.”

That is enough praise—now for a few little queries. As I said at the beginning, I am always suspicious when we get a massive new clause to deal with what is really a simple matter of amending the schedule. First, I note that the amendment allows for developments to be excluded from this requirement by the Secretary of State. I cannot see grounds for granting such an exclusion and would not wish to see it enacted. However, I suspect that it is perhaps one of those safeguards Defra had to offer in order to get the other departments to sign up to BNG in the first place. I hope that it is merely a comfort blanket for the Treasury.

I hope that the requirement for NSIP net gain will be the same as for TCPA schemes. I would like to be reassured on this. Also, there is no commitment to a minimum period in which the biodiversity net gain must be secured on or off-site in the legislation. TCPA schemes are required to legally secure biodiversity net gain for a minimum of 30 years. I would expect NSIP schemes to secure outcomes for at least the same period, if not longer. Will my noble friend assure me that this omission is simply because the Government expect these schemes to last for evermore and thus a 30-year requirement is not necessary? I cannot imagine that in 30 years’ time any Government would consent to NSIP net gain schemes being ploughed up. Of course, the better guarantee of schemes lasting more than 30 years is conservation covenants—an excellent innovation in the Bill that we will come to in due course.

I note that there is reference to the use of alternative metrics other than the one developed by Natural England, metric 3.0, for use by TCPA developments. I can see no reason why NSIPs should not use the same metric. Any alternative metrics developed would mean that one NSIP’s 10% BNG would not necessarily be comparable with another’s. The current version of this metric is in use by major infrastructure delivery bodies such as Network Rail, Highways England, National Grid, et cetera. Of course, as my noble friend has said, no metric currently exists for marine developments; these will require a specific approach to be agreed on, and then some statutory instruments made in due course. It is a complicated area; it is better we get it right than rush it.

Finally, I note that there is no requirement for land delivering NSIPs’ biodiversity net gain to be registered on the national net-gain register developed for TCPA schemes. As I understand it, the statement by the developers must set out the gain to be achieved and how it is to be recorded. If they do not use the same register as the TCPA then, even if they are publicly available elsewhere, that is an unnecessary hassle. I would expect to see all terrestrial and intertidal NSIPs using the national net-gain register. There is nothing about the design of that register that would preclude its usage by such NSIP schemes. Furthermore, as quasi-government-funded projects, I cannot see an argument why there should be any reason why an NSIP should not see its net gain registered in a public and transparent manner in the same way that we expect private developments to be. NSIPs and TCPA schemes will both be engaging in the same net-gain market and it is critical that each is held to the same high standards that having net gains registered on the national register will provide for.

The only exception I can see to the above is an argument possibly requiring a different mechanism for marine NSIPs. At present, the register has been designed for terrestrial and intertidal schemes, and it does not cover sub-tidal. However, as soon as there is greater clarity about the nature of marine net-gain schemes I think that Defra and Natural England can discuss how the register could be adapted, and what resources would be needed to allow it to accommodate marine net gain.

With these technical queries—and they are technical queries. not criticisms—I am delighted to support this excellent new clause. I reiterate that it is an incredible achievement for my noble friend and Defra to get BNG for national infrastructure projects, and get every other department, including the Treasury, to sign up to it. I will be happy to accept my noble friend’s amendment.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, in following the noble Lord, Lord Blencathra, it is a particular pleasure to commend his Amendment 201, also backed by the noble Baroness, Lady Parminter, although my perspective on it is a little different. This is potentially one of the most important amendments that has been tabled. If we are to see biodiversity net gain actually survive and thrive, we should look at the last paragraph of the lines that would be left out by Amendment 201:

“Paragraph 13 does not apply in relation to … development of such other description as the Secretary of State may by regulations specify.”


That is a get-out clause for the Government. The noble Lord, Lord Blencathra—perhaps being very charitable and coming from a slightly different political perspective —said, “This is perhaps just a comfort blanket for the Treasury.” I think it is a get-out-of-jail-free card that simply cannot be allowed to remain in the Bill. That is absolutely crucial.

This is a very long list of amendments, and amendments to amendments, so the easiest way of approaching it might be to run through them chronologically. I am happy to commend all the amendments in this group, including the government amendments. I agree with the noble Lord, Lord Blencathra, that the Minister can be proud of the additions that are here. This is a very clear sign that campaigning works: we know that a great many NGOs, campaign groups, individuals and Members of your Lordships’ House have been working very hard to ensure that biodiversity net gain covers our nationally significant infrastructure projects. There is real progress in government Amendment 194B. However, the number of amendments shows how much that still needs to be strengthened.

Running through some of the most significant of those, and those to which I have added my name or tabled myself, I begin with Amendment 196 in the name of the noble Baroness, Lady Jones of Whitchurch, also signed by the noble Baroness, Lady Parminter, the noble Lord, Lord Teverson, and myself. Obviously,

“maintained for at least 30 years”

is grossly inadequately in the kind of circumstances that we are talking about. As noble Lords have already said, the destruction is going to effectively be permanent. If we are seeing replacement structures and natural conditions put in, they have to continue indefinitely. Thirty years, in terms of nature, is merely a blink of an eye.

Amendments 198 and 199, both of which appear in my name—also kindly backed by the noble Lord, Lord Teverson—seek to ensure that what is done in securing biodiversity gain continues. Amendment 198 refers to

“proof that sufficient funds have been allocated to implement the plan in full, including contingencies.”

As the noble Lord, Lord Blencathra, was referring to HS2, I was thinking about some horrific case studies associated with that from a couple of years ago. We saw trees—little saplings that were planted as part of HS2 offsetting plans in a very dry, hot year—left to die because it was cheaper to do that and replant them than to water them. That really is a demonstration of the way in which externalised costs and the need to ensure that biodiversity is allowed to establish and thrive have to be built into the Bill. Ensuring that the money is there is not going to guarantee that totally, but at least it is a start.

Amendment 199 strengthens the argument on sufficient funds. Of course, we know that many developers of all kinds of projects go broke. They undergo restructuring; they mysteriously disappear into offshore entities that are impossible to trace, and ownership is impossible to trace. We need to ensure that the funding for any biodiversity net gain is fully provided.

Amendment 201AB on monitoring is particularly important, and I commend those who identified the issue. It requires that an independent body be established to check the reality of biodiversity gain. Reading this, I was thinking about the practical reality of the huge issue we have with building standards, and the fact that we know that most of the buildings constructed in the UK now do not even meet our inadequate standards to which they are supposed to be built when they are actually put to the test. That is very often under a self-certification scheme. It is absolutely crucial that we have genuinely independent verification of this gain being made.

--- Later in debate ---

[Lord Blencathra (Con)]

My Lords, I do not need the Minister to respond to the points I am about to make. First, I thank him for his detailed response to all points raised in this debate. I raised a few technical queries, but I do not need to press him today or need a detailed response from him, because I assure him of this: officials at Natural England, at all levels, are working hand in glove with his officials to address all aspects of net gain—to make sure we have the registers up and running, to figure out how to extend it to marine and to figure out the credit system. I am confident that, if funding allows, we will produce detailed proposals as soon as possible.

The main reason I got up to speak—I do so with considerable trepidation—is to challenge some of the comments made by the noble and learned Lord, Lord Hope of Craighead. He seemed to imply, and indeed said to me during our last HS2 debate, that, if we extend net gain to the first two legs of HS2, it will require the compulsory purchase of more land. No, it will not. That is where, in the distinguished job the noble and learned Lord did in chairing the committee, the promoters of the Bill misinformed him, no doubt inadvertently. You can get net gain from HS2 or any other project, without changing a single item in the HS2 Bill. One does not need to change the planning application and, more importantly, one does not need to buy a single extra square inch of land. Net gain is not about that.

Theoretically, one could buy more land on either side of HS2 and have wider embankments, but net gain can be delivered by HS2 funding projects off site, near the railway line. Neighbouring farmers may voluntarily wish to add some net gain. It requires only that HS2 funds it and I suggest that there are adequate funds. I believe the cost of HS2 went up another £1.5 billion last week. The cost of increasing from no net loss to some net gain would be quite insignificant, in comparison to the overall costs.

My final point for the noble and learned Lord is this: net gain is already moving away from no net loss, from what I hear. I know my noble friend Lord Randall of Uxbridge is slightly more cynical about this but, if HS2 can now move slightly beyond no net loss to some net gain, and can do it without changing the hybrid Bill or applying for more planning permission, we should keep up the pressure on it for 10% net gain on the existing two legs. We can do that without changing a single bit of law.

[Lord Goldsmith of Richmond Park (Con)]

I will take up my noble friend on his offer for me not to respond, other than to say that I note his comments and, I think, agree with everything he is saying.