Pollution Prevention and Control (Fees) (Miscellaneous Amendments) Regulations 2021

Baroness Altmann Excerpts

Tuesday 8th June 2021 Grand Committee

[Baroness Altmann (Con) [V]]

My Lords, I thank my noble friend the Minister for his clear explanation of this SI, which, on the face of it, seems pretty uncontroversial. Given that his department is responsible for the environmental regulator—OPRED—and aims to recoup the costs of its regulatory activity from the industry rather than from taxpayers, which I wholly support, it seems as if the increases in cost that we are being asked to approve today fit with that aim.

Protecting the environment and controlling our emissions and discharges into the sea are hugely important for the future of the planet, the future of our country, the future of our children and future generations. However, I wonder whether I could follow on from the noble Baroness, Lady Jones, and ask one or two questions about the rationale for the pricing structure that is being applied to what are, in effect, qualified technical specialists in environmental matters. Rather low fee rates seem to be being applied here. Even with the increases, we are talking about something like £1,400 a day. Daily rates for lawyers or specialist consultants are more like double that, or even more. Even for the non-specialists, we are talking about perhaps £700 to £750 a day.

I understand that we do not want to destroy or damage an industry that literally keeps the lights on in our country, but I want to ask my noble friend the Minister something particular; I do not expect him to have the answer to hand, but I would be grateful if he could write to me. To what extent are the employees—I assume they are public employees—who are doing this very important work members of public sector pension schemes? Have the true costs to the taxpayer of those pension contributions and ultimate pension payments been factored in to the costs being charged to these oil and gas companies?

Clearly, we must control air and sea pollution. The industry itself has accepted this regime. Again, I understand that the department may not wish to rock the boat—if noble Lords will excuse the expression—but it is important that taxpayers do not subsidise the cost of regulation for this industry in any way. In the current environment, the costs of a public sector pension scheme are more like 40% to 50% of salary on top of actual earnings. I would be interested to know whether this has been reflected in the new charges or the old charges.

I have one final question. I believe that the Government are doing marvellous work, and I commend my noble friend the Minister, his department and Defra for what they are aiming to do to control environmental damage. However, it is important, and I would be grateful if my noble friend could give the Committee some idea of the measures being taken to encourage the offshore oil and gas industry to rapidly diversify away from fossil fuels, abandon new developments because there is risk of stranded assets down the line and invest in alternative energies, such as offshore wind and solar power. That could replace some of the activity and jobs that are otherwise potentially at risk in areas that have become so dependent on our very successful oil and gas industry.

I support the measures but have some further questions and concerns, and I would be grateful to hear my noble friend’s response.