Debate on Amendment 133 resumed.
Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, it is a pleasure to follow the noble Baroness, Lady Jones of Whitchurch, even after a five-day interval and in a debate truncated by a perhaps now unnecessary withdrawal of a number of noble Lords. For the convenience of the Committee, I remind everyone that we are speaking about amendments that are all about the long-awaited and much-delayed bottle deposit scheme for England, an area in which we are notably world leading in foot dragging.

I shall give a few statistics. Ten other countries in Europe are operating these schemes, with bottle-recycling success rates running from an outstanding 98.5% in Germany, where of course they have had lots of practice since they started in 2003. Even down at the bottom of the pack, Estonia has a very respectable—certainly by our standards—83.7% bottle return rate. That is why Amendment 133, which sets a deadline for implementation, is so important, and I would have attached my name to it had there been space. I agree with the noble Baroness, Lady Jones, that it should be earlier still; it could have been delivered years ago, but January 2023 is practical. It certainly should not be left outside the term of this current Government—assuming of course that they continue for that long.

I want to speak in support of all the amendments in this group, with the partial exception of Amendment 134B, which would exempt small brewers. That is not because I do not think we need to consider such small producers, but rather that Amendment 134A in the names of the same noble Lords, the noble Viscount, Lord Trenchard, and the noble Lord, Lord Berkeley, is broader and more useful, covering all kinds of producers. There clearly needs to be some easy and simple way for start-up businesses, such as brewers or soft drink or juice producers, to access the scheme. One route might be to require larger companies to allow smaller companies to piggyback on their schemes.

I will focus my contribution on Amendment 134, which appears in my name. I thank the noble Baroness, Lady Jones of Whitchurch, for her expression of support for the amendment. As with the earlier amendment on nappies, I declare the support from the aluminium industry association, Alupro, in preparing and discussing this amendment. I am sure that many noble Lords are aware that, for all the UK’s inadequate performance on recycling, it does relatively well in recycling aluminium compared to other materials, for reasons including the value of the material, with aluminium packaging recycling reaching its highest ever rate in 2020, with 68% of the material placed on the market being recycled. That includes 82% of all aluminium beverage cans. Of course, this is a material that can be recycled indefinitely, unlike most plastic.

We should not forget that the best option, at the top of the waste pyramid, is to reduce packaging materials and have no container at all, followed then by reusing packaging. But for recycling, aluminium is a good choice. Alupro put it to me—and I see the force of the argument—that a scheme with a flat deposit amount for all containers, regardless of the size of the material, would lead to switching from multipacks of aluminium cans to larger format plastic bottles, due to the cumulative cost of the deposit fee on multipacks. For example, a 20p flat deposit fee would add £4.80 to a 24-pack of cans, yet the deposit fee for the same volume of liquid in four plastic bottles would be just 80p. A 2019 poll of consumers found that a 20p flat deposit fee would encourage more than 60% of individuals to switch to large PET bottles at the expense of aluminium.

Alupro commissioned the research consultancy London Economics to look at consumer behaviour and the differential impacts of a flat or variable rate scheme. It found that the variable rate, as used in the successful Nordic schemes, would deliver significantly higher return rates in the first two years, while a flat-rate deposit would increase the amount of plastic sold and could lead to higher amounts of product wastage and increased portion sizes, which has an obvious impact on public health. It would also have a dramatic impact on the aluminium packaging sector, meaning up to 4.7 billion fewer cans, a very significant loss of revenue, and somewhere between 24% to 73% reduction in demand for aluminium cans in large multipacks. This is an industry with a case, and the practical sense of the bottle deposit varying according to the size of container is evident. Having seen such variable schemes in operation in various parts of Europe, with the scanning of bar-codes expected anyway to be part of the scheme, I think it presents no practical difficulties.

I know that the Minister, in the letter that he kindly sent to noble Lords on Friday afternoon, said—I paraphrase—“Let’s leave it to regulation and the implementation stage”. But why? Why not set out the basic ground rules now, in the Bill, to make sure that the scheme we get is fit for purpose and to give manufacturers time to prepare for implementation of the scheme as speedily as possible? That is what the very important Amendment 133, with which we started this group, seeks to attain.

Viscount Trenchard Portrait Viscount Trenchard (Con)
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My Lords, I declare my interests as stated in the register. I am pleased, as always, to follow the noble Baroness, Lady Bennett of Manor Castle, although I regret that the mover of the lead amendment, the noble Baroness, Lady Jones of Whitchurch, spoke five days ago; I had to look up Hansard to remember what she said. I have some sympathy with her Amendment 133, and agree that deposit return schemes should be introduced as soon as possible. I also believe that it is crucially important to get them right. It is worrying that Scotland has rushed ahead with its own scheme in an area where we definitely need UK-wide compatibility.

I support Amendment 133A in the names of the noble Baroness, Lady Jones, and the noble Viscount, Lord Colville of Culross, and others, that the scheme should, at a minimum, apply to PET, glass, aluminium and steel containers of volumes under 3 litres. I was a non-executive director of Lotte Chemical, at Wilton, on Teesside, for nine years, until the end of 2019, when the company was taken over by Alpek Polyester. It holds a 70% to 75% market share in the UK and Ireland as the leading supplier of polyethylene terephthalate. The plastics tax is likely to disadvantage PET producers in favour of glass and aluminium producers, with the unintended consequence that producers will switch from PET to glass and aluminium containers, which have a carbon footprint four or five times higher than PET.

The noble Baroness, Lady Bakewell of Hardington Mandeville, proposed exemptions from the plastics tax in her Amendment 141. The noble Baroness, Lady Jones of Whitchurch, expressed concern that the deposit return scheme might lead producers to switch from aluminium or glass to plastics. My concern is the reverse: besides the much lower carbon footprint associated with PET, does the noble Baroness really want to go back to the days when we cut our feet on discarded glass bottles on the beach?

The answer is not to penalise PET but to introduce a deposit return scheme as good as Germany’s, where 98% of PET bottles are collected for recycling. We have a long way to go. Germany is not often held up as an example of a unitary state with centralised powers, but the successful German deposit return scheme is a national scheme applied in all the Länder identically. If the United Kingdom is to prosper and global Britain is to succeed as we expect and hope, it follows that the leaders of our devolved authorities might be less impatient and more willing to work together to agree the details of one national scheme across the whole United Kingdom.

I will speak to Amendments 134A, 134B and 138A tabled in my name and the name of the noble Lord, Lord Berkeley, for whose support I am most grateful. These amendments take account of the needs of small producers, including small brewers, within the proposed deposit return scheme and recognise that the proposed measures will introduce significant, disproportionate costs and regulatory burdens for small businesses. I strongly support a deposit scheme such as that proposed in the Bill in principle, because it would help to tackle our waste and littering problems, but I ask my noble friend, is he mindful of the burdens on small businesses introduced by the Bill that may make it difficult for them to compete against much larger producers?

Many small brewers have had great difficulties surviving through the pandemic. With pubs closed, the only way that they could keep their products on sale has been to sell them in bottles and cans. It is very expensive for small brewers to make the necessary changes to packaging and labelling. It is likely that the four large brewers, which hold 88% of the beer market, will absorb the cost within their profit margin, thereby driving small challengers and craft beer manufacturers out of the market. Besides this, the costs and difficulties of participation in the scheme seem disproportionate for small brewers.

The fact that Scotland is ahead of the rest of the country is another problem. Brewers sell beer through wholesalers that sell in both England and Scotland. The brewers do not know how much beer their wholesalers sell in each part of the UK, yet the Scottish Government, in the operation of their scheme, have suggested that brewers will have to provide vast swathes of information that they do not currently possess. It is important that any deposit scheme adopted is completely interoperable with the Scottish one. Can my noble friend confirm that we will have, in effect, an identical scheme operating across the whole country? Is it not a problem that the Scottish scheme does not require recyclable products to be clearly labelled as such? There may well be unintended consequences if the schemes are not completely aligned.

Can my noble friend also say whether the Government accept the need for public education about the new scheme, which will be necessary to change public behaviour towards recycling? Does he agree that there is at least a strong case for exempting small breweries producing less than 900,000 pints a year from the new requirements? Indeed, the Government’s better regulation framework states that the default position

“is to exempt small and micro-businesses from … new regulatory”

requirements. While the Government have proposed in the recent consultation to allow small retailers to apply for exemptions under the deposit schemes, the same exception has not been extended to small producers.

In both the extended producer responsibility and the plastic packaging tax, the Government have included a de minimis threshold. In other areas, such as nutritional information, those with fewer than 10 full-time equivalent staff and a turnover of below £2 million are exempt. Therefore, I have tabled these amendments and ask my noble friend to consider how the Bill will support our small producers in a similar way to small retailers.

Under the proposed deposit scheme, small producers will have to redesign their labels to incorporate bar codes and logos at significant cost. They will have to pay a producer fee per container, which could cost the beer industry alone £200 million a year—the equivalent of a 6% increase in beer duty. They will have to collect and provide a great deal of additional information, which could lead to a delay of six weeks or more before they can bring new products to market and will impact innovative small brewers that produce seasonal and one-off beers.

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Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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I am grateful to my noble friend. I think I answered in general terms how much the Bill enables greater local action on air pollution by improving local air quality management frameworks and ensuring that responsibility for addressing air pollution is shared across local government structures and other relevant public authorities. If I can offer him more detail, I commit to writing to him. On that last subject, the noble Baroness, Lady Sheehan, asked two questions that I failed to answer: traffic management in Northern Ireland is a devolved issue and I would of course be very happy to meet the noble Baroness to discuss further matters.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, reflecting on the Minister’s response to my noble friend on the current Prime Minister’s record on air pollution, would she acknowledge that it was the then Mayor of London, Ken Livingstone, who in February 2008 unveiled the plans for the London cycle hire scheme? Will she also acknowledge that the New Bus for London, commonly known as the “Boris bus”, had complete battery failure in 80 models, meaning that they only ever operated in diesel-only mode and emitted 74% more harmful particles than the old diesel buses they replaced?

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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Ken Livingstone may well have had the original idea, but it was certainly Boris who breathed life into the whole project. I think the new buses were much better than the old Routemaster, and I do not think one can blame him for trying to reduce emissions in London.

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Amendment 152 seeks to protect human health from agricultural pesticides when sprayed in certain areas. If this amendment is accepted, it would prohibit the use of pesticides in these areas and could help other species there, such as bees, other pollinators, and birds. Proposed new subsections (2) and (3) would ensure that scientific advice is independent and free from political and vested-interest influence. I fear this was not the case when the Government relaxed the ban for the sugar beet growers. I understand that the Government come under pressure from producers and business interests to relax rules and regulations in order to allow for greater productivity and profit, but this should not be at the expense of our pollinators. If we have a declining population of pollinators, other producers and crop growers will suffer, as they rely on those very pollinators in order for their crops to prosper. I look forward to the Minister’s favourable response on this vital group for our countryside.
Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, it is a great pleasure to follow the noble Baroness, Lady Bakewell of Hardington Mandeville, and also to follow the very expert testimony of the noble Baroness, Lady Finlay. I am speaking to Amendment 152 and 254 in the names of the noble Lord, Lord Whitty, and the noble Baroness, Lady Bakewell, respectively. Noble Lords will have noted that both have cross-party, and indeed non-party, backing. It is worth repeating, again, as the noble Lord, Lord Whitty, said, that the House has already agreed something very similar to Amendment 152 in the Agriculture Bill.

These are apparently two separate amendments about pesticides: one focused on public health, the other more on nature—but of course those two things are not distinct but very much interrelated. They reflect the countryside that is increasingly soaked in poison. That is what pesticides are, by definition. We have been applying stronger poisons, and more of them, more often. In the first half of the last decade, three metrics—the area treated, often measured as spray hectares, the frequency of applications and the number of active ingredients used—all leapt significantly. So, while UK cropland covers about 4.6 million hectares, the area treated is many times larger. Defra figures show that that increased from 59 million spray hectares in 2000 to 73 million spray hectares in 2016: a rise of 24%. The average number of active ingredients per field has risen from 12.8 per hectare to 15.9 per hectare.

Let us imagine actually living next to that field. I am sure everyone has seen the videos: spray nozzles practically brushing people’s windows, other nozzles right up against garden hedges. Imagine being a pollinator—a moth or a solitary bee—going about your business. Your body is gradually being degraded, and your behaviour modified disastrously: all the impacts that we have just started to understand, with 16 active ingredients—poisons—introduced right into the depths of your world and your home.

The person applying the pesticide, quite likely from an air-conditioned tractor cab with protective equipment, has protection—still not enough, but protection. You, the local resident or pollinator, have none. You have no idea what it is in that spray, and even the experts really have no idea what impact that cocktail of chemicals will have. I refer to Defra’s own former chief scientific adviser, Professor Sir Ian Boyd, who, in an article in Science in 2016 said the impact of “dosing whole landscapes” is being ignored, and the assumption that it is safe to so behave is simply false. Even the person applying the pesticides will suffer ill-effects, as a recent Annals of Agricultural and Environmental Medicine journal entitled Influence of Pesticides on Respiratory Pathology set out. It notes that there is a

“significant increase in respiratory problems within the population”

of people working in agriculture because of this.

Turning to look particularly at the pollinators, many of the UK’s most valuable crop, including apples, strawberries and runner beans, are pollinated by insects. The monetary value of that—if you can put a monetary value on it—is put at £430 million a year. Honeybees are important, and there is often a lot of focus on them, but they probably do only 10% or 15% of the work. These wild creatures are crucial, and they are perhaps the ones that are suffering the most.

We are talking about food security being at risk, and in particular the supply of healthy food: fruit and vegetables. The chemical industry will say, “We need these chemicals to grow food”. I would very much agree with the comments of the noble Lord, Lord Whitty, and others that the closeness between the Government and the industry is a grave concern. There is something of an infamous paper from 2011 titled Without Pesticides, Apple Production in the United Kingdom Would Not Be Viable. Well, I ask noble Lords to look back and think about before we had pesticides: we actually had apples, a lot of apples.

This is where I would, perhaps, slightly disagree with the noble Baroness, Lady Finlay, who talked about convenience. I think what we have is a broken system. Farmers are being forced to use these chemicals, and forced to use production methods to suit the supermarkets and multinational food production. We can produce the food in different ways, and it may be sold in different ways. Potato blight has caused much use of chemicals. There are varieties that can do very well with little or no application of chemicals, that are blight resistant, but they are not necessarily to the exact specification of the international fast food giants, who want their chips all around the world to look and taste exactly the same. But each field is not a global field; it is a local field, and we need to be growing the right crops in that field for the right conditions. This is something noble Lords may already be aware that I am quite passionate about, but I am going to restrain myself here and just make one final point.

In Defra’s 2019 report on pesticide usage on food crops, there is a graph entitled “Area treated with the major pesticide groups”. In that graph, fungicides tower above the rest. The weight of fungicides increased by 5% from 2017 to 2019. Yet, increasingly, as we were discussing a few weeks back in the soil amendments, we understand that fungi are a crucial part of healthy soils. We are heaping a specific targeted poison on our environment to kill the essential life in our soils. This is also, of course, damaging the pollinators that this amendment refers to, and is having impacts on our health.

There is also the issue of antimicrobial resistance. Here we come back, as so many debates do, to Covid. There is something called “black fungus”, which is a problem particularly in India. Its technical name is mucormycosis. It is infecting—utterly horribly—patients already very ill from Covid. Treatment is prolonged and difficult. We have a huge problem with resistance to anti-fungicide drugs. We have also seen, in the US and the UK, increasing levels of infection from Aspergillus and from Candida auris. All these fungi that we target out in our natural environment are a threat to our health. We are using the same kinds of drugs in the environment that we are then using to treat the diseases in our bodies.

In summary, we have a natural world—a world of air and ground in which we live—that is out of balance: a poisoned world. These amendments are very modest. They are small steps towards turning that around. When we were talking about the state of nature and about a species target, the Minister said, “Well, things are going to have to get worse before they get better”. He said we need time to turn the curve around. Well, I would say that in this area there is no time. We absolutely have to act on pesticides now.

Lord Randall of Uxbridge Portrait Lord Randall of Uxbridge (Con) [V]
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My Lords, it is always a great pleasure to follow the noble Baroness, Lady Bennett of Manor Castle, and indeed the other speakers to this amendment. I have added my name to both of these amendments. There is really very little to add to what has been said. I found that my main theme was slightly taken by the noble Baroness, Lady Bennett. I was going to emphasise that, when we talk about pesticides, we are talking about poisons. If you refer to them as “poisons”, perhaps that has a little bit more significance for people.

As has been said, one amendment is about human health—very important—and the other one is about the natural world and pollinators. Although I put my name to it, I could have added some other pollinators that have been left off. I have a feeling that moths and bats were not there. Moths are very important. However, I am not going to quibble about this.

The real point is that we are doing as the Government wanted because, as the noble Lord, Lord Whitty, said, the Government said during the passage of the Agriculture Bill that the place for it was not there but in the Environment Bill. So I am delighted that we are doing the Government’s work in bringing this back. I am sure it will have the same reaction in your Lordships’ Chamber and that we will be passing it back to the Commons, so I would have thought it would be wise for the Government to accept these amendments when they can.

Because I am in a particularly generous mood today, I am not going to refer to an earlier life of the Minister, who did sterling work in this area before he had to accept responsibility for government positions. I understand his position admirably and I think that he is doing a fantastic job. I know he has got extremely good history on this and I hope he can prevail with the powers that be.

I look forward to hearing his response—and, indeed, the Government’s response when this comes back on Report, if it is not accepted.