Environment Bill (First sitting)

Alan Whitehead Excerpts

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

[The Chair]

Thank you—and thank you for giving your time this morning. We have limited time, as you are aware, before I will have to draw the sitting to a close. Concise answers—I have already urged my colleagues to ask concise questions—will help us to get through the business.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Q Good morning. I would like to start with some thoughts about the Office for Environmental Protection. You will have seen from the structure of the Bill that the office will be set up by the Government, essentially, and will have certain powers, but many people say that, in other areas, it lacks independence or teeth. What is your view of the structure of the OEP?

Martin Baxter: I might as well go first. I think we would share some of the concerns around independence. I think there is an opportunity for greater independence, particularly on the appointment and removal of the chair. The Office for Budget Responsibility has a confirmatory vote for the appointment of its chair, and I think a similar mechanism could be put in for the OEP. It has a wide range of powers and duties. Potentially, some of the powers could become duties, particularly if there are changes to targets, but, largely, it is a body that could have strategic effect in helping to drive improvements in environmental performance.

Signe Norberg: We would agree that the OEP will have a wide remit, and some of its powers are really welcome. We share the view that there are some aspects, with regard to its independence, that we would like strengthened, particularly on matters explicitly to do with funding and the commitment that the Government made previously, in the pre-legislative scrutiny on the previous draft Bill, to having an explicit five-year budget on the face of the Bill, to make sure that there would be long-term certainty. We also support calls for Parliament to have a role in the appointment of the chair of the OEP—making sure that the relevant Select Committee was involved in the appointment process.

Edward Lockhart-Mummery: I would just make a wider point, from a business perspective. I think that the OEP has an important role to play because it gives confidence in the overall system. That is why independence is important. I just wanted to fill in that gap as to why business thinks that independence is important in terms of having a really credible body. That can also be achieved in the way that it operates. I found this with the Committee on Climate Change. One of the important things is the appointment of the first chair—and, actually, the second chair. The chair can determine how a body like that works in practice—its credibility, the things it chooses to pursue, how it gives strategic advice, and things like that. So I think it is also very much the way, and the type of person who is the chair, that are important.

[Dr Whitehead]

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

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

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

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

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

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

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

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

--- Later in debate ---

[The Chair]

We are nearing the end of this session, I am afraid. In the context of what we have heard this morning, Dr Whitehead, do you have any further questions?

[Dr Whitehead]

Q One thing we have not heard this morning, in the context of how the OEP and the targets that are to be set might work, is the fact that all this is taking over from the environmental protections that were there through the European Union when we were members. Do you think the Bill allows for the transition of those protections to a UK context to be sufficiently enforced and, ideally, enhanced? Or do you think there needs to be anything else in the Bill that can perhaps ensure that there is no regression in standards as we move forward with these new arrangements?

Signe Norberg: With regard to whether or not it would sufficiently transfer protections into a UK context, it is important, as Martin pointed out earlier, to noteeb;normal;j that the Bill itself predominantly applies to England. There must be processes through which the devolved Administrations set up their independent supervisory bodies, but they also all need to work together. Through that, the Bill has the right building blocks; it will be about how those bodies co-ordinate among themselves.

In and of itself, the Bill does not inherently prevent future regression from standards, but there could be mechanisms within the Bill to clarify that. For instance, if you had strong language in the objective about maintaining high environmental standards, that would clearly set out that it should not be a regression. We recognise that there is not an intention for a regression to take place, but that could be an example of how you would potentially safeguard against that.

Edward Lockhart-Mummery: On day one, of course, we roll over all existing standards, and then we have the OEP in place to enforce. That gives us the starting point. With a few tweaks, this governance framework ensures that we at least maintain and improve, because you have that process of setting targets that always have to improve, and because the governance process is set out with the environmental improvement plans and principles, with the Office for Environmental Protection overseeing everything.

If that works, we are in a better position and we can really think creatively here. What are the structures, what are the plans, what are the partnerships that are needed to achieve those objectives? I would put a “potentially” in front of that, because potentially we have a better basis for achieving, but there are probably some tweaks that can be made to the Bill during its passage. Implementation, and how everyone works together on achieving the outcomes, is also important.

The transparency mechanism that was inserted into the Bill between its first and second iterations is helpful, because it allows proper, transparent consideration of whether we are doing something that regresses and how we look compared with international standards. That is a useful way of driving transparency within Parliament about what is happening. Clearly, the Government have moved quite a distance on this. We are driving from the private sector perspective to try to make all of this work and support the direction of the Bill. We are doing it in hope, to some extent.

[The Chair]

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

--- Later in debate ---

[The Chair]

Thank you, gentlemen. We are grateful to you for coming along and giving us the help that we are likely to need. We will start with Dr Whitehead.

[Dr Whitehead]

Q Good morning, gentlemen. The Bill is generally recognised as having some good bits, on recycling materials and end-of-life concerns about materials in the part on waste and resources, but it has been widely criticised because it concentrates on those particular elements of the waste hierarchy rather than looking at ways in which the waste hierarchy could be driven up, as reflected in the waste and resources White Paper. Do you have any views on that? Do you think that there are any ways in which the Bill could be strengthened to emphasise the point that, actually, recycling is not the end of the road, as far as waste is concerned, and that other things—reuse, redesign and minimisation—have an equally important part to play?

Martin Curtois: In terms of the Bill, the resources and waste strategy that DEFRA devised is very strong—you are absolutely right—because what it does, in a number of different ways, is try to improve the whole process. It incorporates things such as “polluter pays”, so it puts the onus on manufacturers to design better. The inclusion of modulated fees in the extended producer responsibility puts a clear onus on manufacturers and producers to design for recyclability, and that will ultimately reduce waste, which is what we all want. Obviously, it involves elements including better segregation, for example, of food waste, which should reduce the carbon impact. It talks about taking the burden away from local authorities and putting it more on manufacturers.

You are therefore absolutely right to say that that is a strong element of the Bill, but I think possibly there should also be other things. As you say, at the top of the hierarchy are elements such as reuse. We operate many sites across the UK where we have voluntary arrangements, for example in Southwark with the British Heart Foundation, where there are various items that can be reused and that is done for charitable benefit. It may be that that ought to be looked at, possibly in the detail of the Bill, just to see where it can be done, because obviously it ultimately is the best way forward. It should at least get some consideration, because everything focused around the resources and waste strategy is primarily, as you say, on the recycling side. There is not much emphasis on residual waste, which obviously we need to avoid because we need to avoid landfill. I therefore think there could be some consideration in terms of reuse.

I also think that one of the best ways in which you can reduce waste right at the outset is by designing better. The Bill reflects that element of the resources and waste strategy, which we see in a very positive way, because so many manufacturers and producers have come to our site—some from not far away in south-east London—to see how they can design their products with perhaps less composites, in a better way, which will ensure that they are at least recyclable at the outset. That is the very start of the process, which we have to get right if we are to make significant change.

[The Chair]

Mr Bellamy, does the FDF have a view on this?

David Bellamy: Yes, we do. I think what we would argue is this. As the previous contribution outlined, we obviously expect the extended producer responsibility reforms and the accompaniments to that in terms of consistency, and the focus much more on producers paying full net costs for the end-of-life management of packaging, to focus minds a lot more on the prevention side in itself. Having said that, we must not lose sight of the fact that it is a legal requirement, for those who handle waste and convey it to another person in the waste transfer system, to have regard to the waste hierarchy. That is a legal requirement; it is in the law as it stands at the moment. It is also a legal requirement in respect of packaging waste and packaging under the essential requirements regulations that producers who pack food products must have regard to using the minimum amount of packaging to maintain the necessary levels of safety, food hygiene, etc., and consumer acceptance. That is also a legal requirement that is enshrined in the legislation. In that sense, there are already legal requirements around maintaining a focus on prevention, in the sense of how we regulate the waste hierarchy. While it is right that there is a lot of focus on recycling in the resources and waste strategy, we feel that that is part of a bigger picture.

We should not lose sight of voluntary activity around this space. Our members’ commitment to reducing food waste has been documented in some figures that the Waste and Resources Action Programme recently published that show that the food and drink manufacturing sector has reduced food waste by 30% since 2011. Half that reduction has been achieved between 2015 and 2018. That is on a per capita basis measured against the target of the sustainable development goal of the United Nations. So there is a focus on source reduction, whether through legal mechanisms that are already in place, but also in terms of the voluntary work that our members are engaged in.

[The Chair]

Thank you. Does the FSB have a view, Mr Poole?

Andrew Poole: I agree with the assertion that reuse and reduction are equally important to recycling. It is worth bearing in mind the sheer diversity of the small business audience, which operates across myriad different sectors and in very different ways from one another. It is also worth bearing in mind that many small businesses operate as both producers of materials and consumers. It is worth understanding the very different issues that they face. For many, particularly those operating as consumers within the parameters set by the business, it is clear that recycling will be some low-hanging fruit. When we compare our recycling rates with other countries in the world, clearly some rapid improvements should be made. However, I take the point that it is equally important to look at reuse and reduction as well.

[Dr Whitehead]

Q Clause 52, in the context of recycling and minimisation of waste, provides for charges for single-use plastic items. Do you think this clause clarifies its purpose sufficiently? Is it about minimising single-use items, or is it about reducing the role of plastic in single-use items? First, do you think that a clause such as this would work in reducing single-use items in the food and drink industry, for example? Do you consider that it might be prudent to concentrate on the fact that single-use items can be made of more things than plastic and that amendments to the Bill might make that clear in terms of how the single-use environment might develop?

[The Chair]

Mr Bellamy, food and drink have been mentioned, so perhaps you might like to have the first crack at this one?

David Bellamy: Our comments are framed around single-use plastic packaging items, which is our interest in terms of plastic. Basically, our view is that a better way to achieve this kind of outcome would be to deal with this within the refinements to the extended producer responsibility system and the reform programme, in the sense that you could do this through modulated fees, as a much better way of achieving the same sort of outcome. In that way, we would be sure that the money raised from such an approach would be used to improve the system. That is a vital principle of FDF: that the moneys we raise through increased producer fees are used to improve the system of recycling and that those moneys do not get channelled off into other expenditure demands. That is a very important principle that we hold dear in FDF. We have to be mindful that alternatives to plastic materials may also have an impact; it is not only plastics themselves. If you switch to some other materials, you have to look at their life cycle, including perhaps at how they are mined. They all have impacts that we need to consider.

In terms of the clause in the Bill for this, we suggest that any introduction of a charge should be subject to some form of public consultation. We are a little bit concerned that this could be taken forward in a way that did not involve any public debate or allow interested stakeholders to make representations.

Andrew Poole: It is really important for the Government, through the legislation, to make clear the objective of requirements such as this and what they want small firms to do differently from what they are doing already. When looking across environmental legislation, I will talk a lot about pathways to change. We want to set out not only the reasoning behind the legislation but what businesses should be doing differently, and how the Government see them doing it differently.

In terms of single-use plastics, we can compare that to the carrier bag charge, which has worked fairly successfully. Businesses, on the whole, were quite happy to adopt that. It was clear that the outcome was to be a reduction in those bags. There were also some obvious ways of doing things differently that could have achieved the same outcome. It is just about making clear what that outcome needs to be and what businesses should be doing differently to achieve the same thing.