Environment Bill (First sitting)

Alex Sobel Excerpts

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

[Bim Afolami]

Q So it should be a bit like an environmental National Audit Office, which is the way I like to think about it?

Signe Norberg: Yes, I would not disagree with that characterisation.

Edward Lockhart-Mummery: There is a relationship between Government and the electorate every five years. The OEP has an important role in making transparent just what is going on in the interim period so that the electorate has the right information every five years and can see transparently what has been going on, what the Government have been doing, how that has affected the outcome, whether the Government have been pulling the right levers and that kind of thing. That is a role that the CCC plays very effectively on climate change, because people are increasingly aware of how the Government are performing. There is a role. The CCC is playing that role with probably less independence than the OEP currently has.

I take your point that there is a question. You do not necessarily want to go to an extreme on independence. Somehow you need to get the balance right. The question of Parliament having a say over appointments is quite interesting, partly because when a Secretary of State is appointing a chair, they are thinking, “Is that a chair that the EFRA Committee and the EAC across all parties will accept?”. I think that is quite an interesting discipline. It removes any fear that it might just be the Secretary of State appointing their chums, if they know that it will be properly scrutinised across parties. That degree of independence would be quite effective, but I take your point.

The CCC is not particularly independent, but putting forward the advice on net zero was a bold thing to do. It was able to do that. The role of transparency and making clear to the electorate what is going on could be the body’s most important function.

I would also expect that an effective body would not take Government enforcement action all the time. What you do not want is a body constantly doing that. What the OEP might effectively do is make clear from the start, “These are the types of cases we are going to take and why.” That would send a clear signal to Government and then you would hope that there would not be loads of enforcement cases, with the OEP taking public bodies to court.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

Q Following on from that question, clearly the duties of the OEP in investigation and enforcement are very important. We have a regulatory environment that finishes in December this year. The OEP will not be up and running in January next year. Do you have concerns that there will be a governance gap in the interim? How do you feel about the independence of enforcement, investigation and action that is taken on potential breaches in that interim period?

Signe Norberg: From what I understand, there is a Government ambition to prevent that being the case, and that is why we have seen the inclusion in the Bill of the interim chief executive officer. In so far as that is a safeguard to ensure that we have the OEP set up by 1 January, I think that is welcome. It stresses the importance of ensuring that this is robust enough and that you get on with appointing the permanent chair and the permanent executive directors of the OEP as quickly as possible.

Martin Baxter: If you look at the role of the European Commission, which is where in part the OEP comes from in terms of its functions and that watchdog role, the Commission moves very slowly. It does not take rapid action. It does not instigate infraction proceedings against member states. There is a build-up of a process by which you can start to see the Commission giving a warning shot across the bows, where there might be a member state that is not in a position to achieve everything. I do not see a huge challenge in terms of a governance gap with the OEP becoming set up in the timescales that are being discussed. I do not think that is a material weakness.

[Alex Sobel]

Q This is a different subject, but something you alluded to earlier was the need for a broader strategic aim. Other countries have an overarching environmental objective as part of their environmental legislation. The shadow Minister, my hon. Friend the Member for Southampton, Test, has tabled an amendment that at the start of the Bill there should be a clause stating an environmental objective. Do you think that would improve and strengthen the Bill?

Martin Baxter: Definitely; I think we made that clear in our earlier comments. We see that internationally. The Dutch Environment and Planning Act has a clear set of objectives that frame the purpose of the legislation. I think you also see that in the Environment (Wales) Act 2016. This is not without precedent in the UK and internationally. It provides that direction of travel and the opportunity to think about the different parts of the Bill as a coherent whole.

[The Chair]

Before I come back to the Front Benchers, are there any other questions from either side?

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

Q We have talked a little bit about recycling this morning, but I am interested in the steps taken by the food and drink industry and the small business sector to reduce the use of plastics. From your perspective, what are the unintended consequences of reducing plastic use, and how will the Bill support you with those unintended consequences?

David Bellamy: On reducing plastic use, there is a presumption there that plastic can be substituted by equivalent materials; that is the challenge. Obviously the industry is happy to look at alternative materials, but they must provide that equivalent functionality. Plastic is a very efficient material for getting products through the supply chain. The issue really is plastic waste, not plastic per se. An element of responsible disposal comes into this discussion as well.

We support the work of the UK plastics pact, which looks at not only phasing out non-essential plastic items, but how we can make plastic more recyclable, compostable or reusable, and generally reducing that waste. This is a combination of things, and looking at potential alternatives to plastic, where there are equivalent materials that provide equivalent functionality. We must not end up with unintended consequences, either for food safety or for food waste. It is about finding that sweet spot and functionality.

Also, we need to look at how we improve plastics as they are used now, perhaps moving towards alternative types of plastic and looking at how we can increase the recyclability of existing formats. There is not a one-size-fits-all approach; it has to be evaluated in the round, and we have to make sure we do not move to unintended consequences. Also, we need to keep focused on the fact that plastics per se are not the issue; it is plastic waste. It is about keeping plastics in the circular economy and out of the environment. The measures in the Bill to give producers full responsibility for the system, at full cost, will make it a lot easier to deliver change.

Andrew Poole: I back up what David said. On the unintended consequences, it is worth looking at associated opportunity costs. Presumably one of the unintended consequences relates to not putting businesses out of business. Coming back to the point about carrier bags, a cost was put on bags, and the business community as a whole welcomed that, but one issue was really hard to communicate, it seemed. It was not that businesses did not want to charge for the plastic, because they could manage that; they could swap and do alternatives. However, one unintended consequence, particularly for smaller retailers, was the reporting requirements on top. We need to look underneath the physical changes that the businesses have to make, and examine the bureaucracy that underpins those changes, such as any onerous reporting burden that is not balanced or proportionate. That is often quite hidden, but so often, the opportunity cost for businesses outweighs the up-front cost.

Martin Curtois: Most major brands have focus groups based on consumers—you and me—and there has been a significant change in how brands are responding to the issue of sustainability, because they understand that the public get it and want us to improve environmental performance. We can see that in supermarkets: we now have refill options, which are great ways to encourage reuse and reduce waste from the outset.

We have agreed on most things so far. However, from a reprocessor’s point of view, the great benefit that I see arising from a plastics tax that insists that products contain 30% recycled content is that it gives certainty to invest in more plastics reprocessing facilities. That will ultimately mean that the plastic is more sustainable at the outset, because you are using less virgin plastic and more recycled content. Before this Bill has even come on to the statute book, brands that always thought of sustainability as a nice-to-have—likely with a small financial incentive as well—now think of it as a must-have. That is significant and positive, because it will mean we are getting it right at the start of the process, which reduces the carbon impact.

It has even been shown through research that if the public are offered a water bottle with clearly labelled recycled content that costs £1.24, as opposed to a bottle without it that costs £1.20, they will pay the little bit extra to have a sustainable container. We have to make sure we exert the influence that the public want us to have when it comes to performing better in this area.

[Alex Sobel]

Q I will speak to two areas. First, when I engage with people in both the food and drink industry and the waste compressing industry, one issue is the lack of reprocessing facilities, but the second—and usually more important—issue is the quality of the bales of material. When they show me a bale from France and a bale from the UK, the French bales are much cleaner than the UK ones. Are the provisions in the Bill going to improve that so we can have better recycling?

Secondly, you alluded to the market in waste pushing up the cost of these bales, which is a disincentive to invest in reprocessing. Do you think that the provisions in this Bill will pull that back? As an adjunct, there is the issue of transfrontier shipments of waste—that is, waste being sold overseas. Again, do you think the provisions in this Bill will help us end that practice and engage in reprocessing in order to create a circular economy in the UK?

Martin Curtois: There are a couple of elements that we have to bear in mind. First, due to the changes in China and many other markets, the emphasis in those countries is on a race to the top. They are insisting on premium quality, and if we provide premium-quality bales it is much easier to have a market, so the way that has changed has actually been beneficial to some extent. Also, the overall value of these commodities has fallen, as with many others, so it is even more important that the product you are producing is of a premium quality. It is very important that we get that right at the start.

The Bill’s emphasis on encouraging more investment within the UK was one of the very clear signals that was outlined in the strategy. To give you an example, with plastic pots, tubs and trays, it is currently inconsistent. Part of that is that they are of little value as things currently stand, but if they were being collected separately under a formalised approach, it would be easier to generate value from them. That is the case with all elements of recycling. If you can collect clean product—this is why DRS may be advantageous as well—in sufficient quantity, it is easier to make a high-grade product for reprocessing.

There are a number of principles within the Bill that are pointing us in the right direction. From the sector as a whole, if the Bill becomes a reality and, as a result, we make it easier for the reprocessors to produce a good product, and if they have confirmation that the legislation is there and they are not investing in something that, 10 years down the line, will no longer be a Government priority, the money is there to go in. There is a benefit to the UK economy as a whole, because these facilities are needed throughout the UK. It is just where people are and where the waste is, so there can be a knock-on benefit nationally to the economy.

David Bellamy: On the issue of quality, the powers in the Bill around EPR reform will help the situation. They will change the dynamic, in the sense that producers will be in the driving seat in terms of how payments are made to local authorities for collection. Those payments will only be handed over against agreed quality standards, so there will be a much bigger drive towards quality collections, which is what we need. Combined with the consistency approach, that will help the situation considerably.

We have also not mentioned the DRS, which will also help the quality of collections as far as particularly polyethylene terephthalate plastics in drinks bottles are concerned. That will also have a positive impact on quality. There is still an issue, as I suggested earlier, about the option of the industry working more with Government to develop quality standards and ex-MRF for bales and such. In many places on the continent, they have much higher standards for accepting materials, and we ought to be doing something similar here.

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

Q I am interested to see that the Bill provides a balance between the detail and the direction of travel. My question is to do with how much of a carrot or stick approach the industry needs from Government. The industry has come on in leaps and bounds in this direction in recent years, but in terms of consistent labelling and practices between different local authorities, how much of a stick or carrot approach do you think the industry needs from Government? Or is industry able to take charge on this?

Martin Curtois: Consistency of labelling could be one of the most significant changes in the right direction. At the moment you have this awful phrase, “widely recyclable”, and no one knows what it means. It could apply to one local authority and not to another. We would advocate literally a simplified traffic light system, whereby green is recyclable and red is not. I think the shock, for a retailer or producer, of having a red dot on its packaging would be such that it would want to avoid it. At a stroke, you would be improving recyclability straightaway.

That is one key element of it. It also drives people mad that they just do not know whether a product is recyclable or not, so you would get an improvement not only at the front end in terms of the manufacturers’ production, but in the materials we receive at the processing facilities. As you can imagine, we receive thousands of tonnes of materials a year. Anything that can be done to ensure that people are sorting it more efficiently at the outset will make our job of reprocessing it more straightforward.

Andrew Poole: For me and for small businesses, a lot of this legislation is generally about trust. The problem is that, if we do not get these things in place, everyone knows that the stick will come. There is an opportunity at the moment to be on the front foot. A lot of our engagement around the Bill has been about keeping businesses on the front foot and steering the legislation in a way that is beneficial to everyone. It is a case of giving all of these things a consistent approach, including labelling, for example. It is about trust in the outcomes of the legislation, and about making the right decisions. It is about trusting what they can see and seeing that the decisions are the right ones. It is important to have that transparency around the whole Bill.