Environment Bill

Baroness Hayman of Ullock Excerpts

Committee stage
Wednesday 14th July 2021 Lords Chamber

The UK gave an undertaking that it would not diverge from EU standards just for the sake of divergence. If that is the case, then it would seem appropriate for this clause to be on the face of the Bill. Companies that manufacture and export to the EU are obliged to operate the same standards existent in the EU. Any divergence from EU standards is likely to cause these companies additional costs, as they will have to meet two different standards in what could well be the same chemical product if they wish also to trade in the UK. The noble Lord, Lord Whitty, has given details on this. I look forward to the Minister’s comments and fully support the noble Lord, Lord Whitty, in his amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I offer our strong support to Amendment 293E in the name of my noble friend Lord Whitty. I thank my noble friend for his detailed and knowledgeable introduction, explaining why it is so important we do not have non-regression in chemicals industry regulation. Plans as to how the Government intend to regulate the UK chemicals sector following Brexit and our departure from EU REACH have been of significant concern for the UK chemicals industry for some time. This amendment would remove the possibility that a Secretary of State might lower current standards, while enabling them to easily meet or exceed new EU protections and standards. It would also oblige the Government to transparently justify any decision to deviate from EU control on chemicals—noble Lords have talked about the importance of transparency.

Concerns were raised by the noble Baroness, Lady Bakewell of Hardington Mandeville, that provisions in the Bill give the Secretary of State the power to alter the UK REACH system, including through deregulation, which is causing instability. Concerns have also been raised about the potential for a reduction in protections and standards. The noble Baroness, Lady Bakewell of Hardington Mandeville, also talked about the potential for a toxic mix of chemicals, as we have heard in other debates during the progress of the Bill. The UK is already falling behind EU protections. Divergence is set to widen over time, despite assurances that the UK would not diverge for the sake of it, and this brings with it considerable associated economic and political costs. I would be interested to hear from the Minister the Government’s perspective on this divergence and how they will manage it. The current regulatory processes for GB controls lack transparency and do not match the pace of EU action. They also do not appear to consider or attempt to mitigate the effects of divergence. My noble friend Lord Whitty mentioned the issue of new chemicals in particular, and how that is being managed.

Going back to our negotiations on Brexit, it was hugely disappointing that the Government ruled out what we believe would have been the best outcome for both the environment and human health, as well as for industry: for the UK to remain within the world’s most advanced system for regulating hazardous chemicals, the EU REACH system. The decision instead to set up UK REACH will substantially increase costs and bureaucracy for UK companies, while bringing real danger through the reduction in protection for the public, workers and the environment from hazardous chemicals. But we are where we are, and the priority now has to be for UK REACH to be the best it can possibly be.

The provisions in the Bill present an opportunity to ensure that UK REACH reflects available scientific evidence and allows for a regulatory environment which is fit for purpose. The noble Earl, Lord Dundee, said we now have an opportunity for higher standards, and I agree with him. Schedule 20 gives the Secretary of State wide-ranging powers to amend the UK REACH regulation and the REACH Enforcement Regulations 2008. Such amendments would have to be in line with Article 1 of REACH, which outlines its aim and scope. Several provisions are protected from modification by SI under these powers. However, we are concerned about granting the Secretary of State such a sweeping power to amend the main UK REACH text, which could then be used to reduce the level of protection for the public and the environment from hazardous chemicals. My noble friend Lord Whitty talked about the potential for huge damage if we do not manage our chemicals industry correctly.

There are many concerns from industry about access to data and divergent sources of data: different data can mean different decisions. The noble Baroness, Lady Bennett of Manor Castle, talked about a lack of data undermining HSE’s ability to do its job properly. Now that we have left the EU, the UK does not have access to the same EU databases and the 98,000-plus dossiers of commercially sensitive safety and technical data for more than 22,000 substances. I have spoken many times in this House and the other place about my concerns about the risk of duplicate animal testing, and I know other noble Lords are concerned about this. We have had assurances from the Government, but no real explanation about how it is going to be prevented. When scientists and technical review panels cannot see the same scientific data and cannot discuss this data with scientific counterparts in the EU, inevitably we could find that different decisions are being drawn.

My noble friend Lord Whitty talked about his concerns around divergence by default. In a divergent regulatory system, the Government must be careful to avoid any lowering of our current high standard of environmental protections and increasing risk to public health, solely for the purpose of quick, short-term economic international trade wins or rapidly rolled-out innovations. I ask the Minister for her reassurance that this will not happen. Furthermore, a divergent chemicals regulatory system in the UK will bring additional cost burdens to business and, if standards are lowered or untrusted, will bring consequences to the ability to trade products with the EU. The noble Baroness, Lady Neville-Rolfe, talked about the burdens on business if we do not get this right. We have to put safety first and consider the impact on the environment.

Significant divergence giving the UK a competitive advantage risks triggering rebalancing measures by the EU, such as retaliatory tariffs, under the EU-UK Trade and Cooperation Agreement. Remaining closely aligned with EU REACH would ensure that UK consumers and the environment continue to benefit from the EU’s relatively high protections as they continue to improve, and would also avoid unscrupulous manufacturers dumping products in the UK that fail to meet EU standards. The amendment we have been debating would provide important benefits and protections from damaging divergence that could lower standards. I urge the Minister to consider the benefits of supporting it.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I thank the noble Lord, Lord Whitty, for his Amendment 293E. As I have outlined in previous groups, the Bill will enable the Government to update our REACH regulation to ensure it keeps pace with the latest scientific developments and to prevent our chemicals regulation becoming frozen. I start by reassuring the noble Lord that there are already several safeguards included in the Bill. Changes to the REACH regulation have to be consistent with Article 1 of that regulation, including ensuring a high level of protection for human health and the environment. The Secretary of State must publish an explanation of why he considers that to be the case before making any changes.

I know the noble Baroness, Lady Hayman, was particularly concerned about the powers that the Secretary of State is taking to amend this. An ability to make supplementary, incidental, transitional or saving provisions is a standard provision in legislation. The aim is to make sure that we avoid inconsistencies, discrepancies or overlaps developing in the statute book, but it would not enable us to make wholesale changes to the protected provisions. To take an example, Article 35 of the REACH regulation is a protected provision which gives workers the right to access information that their employer receives under other provisions of the REACH regulation, Articles 31 and 32, concerning a chemical substance or mixture they use or may be exposed to. If we were to extend the scope of those other REACH provisions to also cover information about substances in articles, we would want to amend Article 35 to reflect these changes.

I should say at the outset that both the UK and the EU recognise that EU REACH is part of the single market. Access to EU REACH or associate membership of the European Chemicals Agency are tied to the single market, and the EU insisted on this. The Government have already made it clear that we would not accept being subject to the European Court of Justice, and associate membership would mean just that. However, the EU-UK Trade and Cooperation Agreement still provides for co-operation between the EU and UK chemicals agencies.

I should also stay at this juncture that, while I take the point about the larger resources that EU REACH has, Defra has asked HSE to work on two restrictions to date. I know that, normally, the EU would probably do five or six a year, but we have a significant time advantage: even with the Secretary of State asking the devolved authorities’ consent, we still have a speed advantage because we do not have to get agreement from 27 countries, which, in chemicals terms, can actually take many years.

We have also provided over 20 provisions relating to the fundamental principles of REACH, listed in the table in paragraph 6 of Schedule 20. They include: the “no data, no market” principle; the last resort principle on animal testing; the aim of progressively replacing substances of very high concern through the authorisation process; the effect of restrictions; the importance of communicating information to the public on the risks of substances; and various provisions to ensure that UK REACH will be properly transparent.

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[Viscount Trenchard (Con)]

My Lords, it is a great pleasure to follow my noble friend Lord Ridley, who gave a fascinating speech. I was much impressed by his four examples of policies that we thought were going to be very good but turned out to be mistakes and had to be changed. I am sure the same will happen with some of the current policies being proposed for the environment and other things that we think, today, are bound to give the right answer when, in 10 or 20 years, some are certain to be counterproductive.

I will not detain the Committee long, but I extend my support to the sensible Amendment 297A in the names of my noble friends Lady Neville-Rolfe, Lord Ridley and Lady Noakes. The Bill takes no account of any negative impacts that the environmental targets set may inadvertently cause. As your Lordships are aware, we do not always get everything right. We should pay attention to the proportionality principle, as sensibly proposed by the Taskforce on Innovation, Growth and Regulatory Reform, chaired by my right honourable friend Iain Duncan Smith.

My noble friend Lady Neville-Rolfe is the strongest advocate of impact assessments in your Lordships’ House. As was also pointed out by the noble Lord, Lord Vaux of Harrowden, planting trees in areas that were not historically forests may assist climate change mitigation, but may also harm biodiversity. Similarly, some actions taken to advance environmental targets may have a negative impact on carbon emissions, such as the plastics tax, which is likely to cause a shift from plastic to glass and aluminium bottles—about which I spoke in an earlier debate. For these and other reasons so well explained by my noble friends, I hope the Minister agrees that it is right to include a sunset clause and that the Government should conduct a cost-benefit analysis if they wish to renew these regulations beyond five years after the passage of the Bill.

On the interesting subject raised by the noble Lord, Lord Berkeley, whose support on other aspects of the Bill I much appreciate, I am conscious of my oath of allegiance to Her Majesty the Queen and of everything His Royal Highness the Duke of Cornwall does for the environment. I would prefer to remain silent on this matter, but I look forward to hearing how the Crown replies to the noble Lord through my noble friend the Minister.

[Baroness Hayman of Ullock (Lab)]

I thank noble Lords for this short but quite interesting and illuminating debate. As the noble Baroness, Lady Noakes, said, the two matters we are talking about do not really sit happily together, so I will take them in turn.

As we have heard, Amendment 297A in the name of the noble Baroness, Lady Neville-Rolfe, would set a sunset provision after five years for regulations made under the Bill, including those relating to targets, unless the Government conduct a cost-benefit analysis. She is certainly correct in her assessment of how extensive the Bill is, and of how much work it has been and will continue to be. We understand her concerns about costs and how difficult it can be to assess them accurately, and the fact that the impact assessments are now two years old, which I guess allows me to make the point that it is a shame this important Bill has dragged on for such a long time.

I was interested to hear what the noble Baroness, Lady Noakes, had to say about why impact assessments are not always entirely accurate. She knows far more about financial assessments and economic impacts than many noble Lords.

It was quite interesting to hear the different examples from the noble Viscount, Lord Ridley, of where policy made in good faith can turn out to be not what we expected and can often need rethinking. I agree that we always need to learn from mistakes.

I thank the noble Viscount, Lord Trenchard, for his contribution. I shall spend the next few weeks trying to encourage him to be more positive about efforts to try to improve our environment, while accepting that we do not always get everything right.

However, having said all that, much of the Bill will need to be enacted by secondary legislation, there are plenty of areas where there will have to be regular reports back to Parliament on progress, and we obviously also still have Report to look at how we can improve much of the Bill. We believe that there are many opportunities to revisit the Bill’s implementation and its ongoing outcomes, so presently we would not support a sunset clause, but it has been very interesting to look at and discuss it because it has raised interesting issues about how we assess environmental policy as it moves forward.

My noble friend Lord Berkeley has given notice of his intention to oppose Clause 136 standing part of the Bill. I listened carefully to his concerns about Crown exemption clauses. The possibility is not something I was aware of at all, as I am sure many noble Lords were not. I was interested to hear his question about whether the OEP’s powers would extend to the Crown, and would be interested to hear the Minister’s response to that. If it does not, does that mean that if a Crown body dumps waste, for example—we have been hearing about Southern Water; I am sure that the Crown would never do something like that—it would not be subject to the sanctions outlined?

As my noble friend also asked, to what extent does the Bill bind the Crown? To what extent can sanctions be applied if the Crown acts in breach of any of its provisions? It is another interesting question. I agree with him that it also seems incredibly complicated, so I look forward to hearing the Minister’s response—or will we be looking at his reply in writing?