Leaving the EU: Chemicals Regulation

David Drew Excerpts

Thursday 1st February 2018 Westminster Hall

[Dr David Drew (Stroud) (Lab/Co-op)]

I am delighted to serve under your chairing, Mr Evans. It is good to see the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Suffolk Coastal (Dr Coffey), back in her place; I fear that we may spend some time in statutory instrument Committees, including on this topic. I congratulate my hon. Friend the Member for Wakefield (Mary Creagh), Chair of the Committee, on a thoughtful presentation. I do not intend to repeat much of it, because I think that the Minister has got her train of thought and will be answering some of her points.

I commend my hon. Friends the Members for Penistone and Stocksbridge (Angela Smith) and for Bristol East (Kerry McCarthy) for their speeches, and my hon. Friend the Member for Stretford and Urmston (Kate Green), who made an intervention. The hon. Member for Gordon (Colin Clark), although he is no longer in his place, made a good contribution, and the hon. Member for Falkirk (John Mc Nally), who spoke for the Scottish National party, also raised numerous pertinent points.

The report is good and, I must say, pithy. I enjoy Select Committee findings when they can be read within a relatively short time; I always think that the shorter they are, the better the quality. That would be fine, except that the Government’s response was even shorter and, I am afraid, not as pithy, in the sense that it did not get to the point of things, except one bit, which I will ask the Minister about. The Government say:

“The government will use the Repeal Bill (The European Union (Withdrawal) Bill) to convert EU law into UK law and use the powers to amend REACH, as well as other related chemicals regulation to make them work properly in the UK.”

Can I assume from that that REACH is still the preferred methodology for dealing with chemicals? That is important. As far as I understand it, this is an interesting issue, because the Department for Environment, Food and Rural Affairs is only one part of it, and the Department for Business, Energy and Industrial Strategy also has a strong interest. I gather that the Secretary of State for Business, Energy and Industrial Strategy has more or less intimated that he also wants some continuation of the relationship to REACH. Is that our starting point? That is my question for the Minister, because all other factors follow from that. The issue is important. Interestingly, this excellent paper from the House of Commons Library on Brexit and the environment uses REACH as an example of the implications, because it will have a pretty big impact on our industry, but also on how we feel safe with chemicals.

The report preceded the general election, even though the Government’s response came after it, so we must consider something a bit more recent—the 25-year environment plan, in which three pages are allocated to chemicals. It makes some clear commitments. On page 100, the Government commit to four actions. The first is:

“Publishing an overarching Chemicals Strategy to set out our approach as we leave the EU.”

When? The second is:

“Exploring options to consolidate monitoring and horizon-scanning work to develop an early warning system for identifying emerging chemical issues.”

How will that be done? The third is:

“Considering how we will address tracking of chemicals in products to reduce barriers to recycling and reuse whilst preventing a risk from harmful chemicals.”

Who will do that? If not Government, will it be done in partnership? The fourth is:

“Working internationally to strengthen the standardisation of methods that assess chemical safety in support of the mutual acceptance of data to identify and share information on emerging concerns and new approaches to risk assessments.”

If not REACH, what could it possibly be?

We have already talked about double registration, the impact on jobs and investment and the possibility of relocation. All four of those actions impinge closely on how the industry will evolve, so it is important for the Minister to give us at least some way forward on how the Government are tackling them. Like my hon. Friend the hon. Member for Wakefield, I read the previous Brexit impact assessment—are we allowed to call it an impact assessment now? Like everyone else, I do not know whether the Minister has seen the one on chemicals; presumably it would have been referred to in the latest documentation, which we have been debating this week. It is important to know that the industry will feature, because it is important.

In terms of where we are, it is not just a question of the chemical industry. As my hon. Friends have made clear, it is about how that locks into all sorts of other industries, such as the food chain, health and medicines and animal welfare. That is important, because every time I sit next to someone from those industries, all they say to me is, “Is there any certainty? Is there any way we can make decisions? We don’t know what we’re going to do, because we get nothing but confusion. We need some clarity.”

It is not just about the industry. My hon. Friend the Member for Bristol East discussed some of the implications when things have gone wrong. I mention organophosphates, to pick up an issue after not having been here for some time. I am dealing with a constituent who suffers from organophosphate poisoning. It has nothing to do with the Minister—it predates both her Government and mine, although it involved mine—but we all know that when regulation goes wrong, people suffer. For someone facing the repercussions of OP poisoning, it is awful. That is why we must get this right. It is a matter of human safety and, eventually, someone’s life experience, so it would be good to know that this issue is at the top of DEFRA’s agenda, and that the Department is talking to BEIS to ensure that we get it right.

I have a series of questions. I will go through them quickly, but they are important. First, the European Chemicals Agency, the current chemicals regulator, has extensive databases. Are we talking to the ECHA about how we could still access those databases after exit day? Secondly, I have already referred to the overarching chemical strategy. Is there a timetable? I know that it has been said that it will not happen until after exit day, but there must be some clear steer on what the timetable is. Thirdly, will the Department be transparent and publish what it is doing and thinking about how those procedures will be taken forward?

Chemistry World published a story—whether it was a leak or an inspired story—that said that Government had set aside £5.8 million for an IT system to look at the registration and regulation of chemicals. Can the Minister confirm that? Is that in addition to REACH or a replacement?

I have mentioned the Business Secretary’s view that REACH is something we need to build on rather than replace. It would be useful to know whether the Department is talking to BEIS about how that will happen.

The Department’s research is hopefully now focused on this issue. Does it have sufficient civil servants and sufficient expertise? Is it drawing in other outside expertise? It is very important to draw together to ensure that whatever the outcome, we get this right.

Finally, can the Minister assure me that there is no intention to lower standards? The bottom line is that it cannot be any worse, for the reasons that we have discussed: people suffered when we got it wrong, and the industry needs stability and security. The Minister has plenty of time to respond, and I look forward to hearing her answers.

[Mr Nigel Evans (in the Chair)]

I remind the Minister that it is customary to allow a couple of minutes at the end for Mary Creagh to sum up.

--- Later in debate ---

[Dr Coffey]

The hon. Lady will recognise that our future relationship is still a matter for negotiation. Phase 1 has happened and we are moving into phase 2. Having exactly the same regulation the day before and the day after we leave the European Union will minimise market access barriers for UK companies trading in the EU.

We agree that ensuring the continued validity of REACH registrations is a critical issue and fully recognise the investment that UK companies have made in the REACH registration process. We are clear that we want existing registrations, authorisations and approvals to remain valid in the EU and UK markets, which is clearly in the interest of businesses operating in the UK and the EU. That recognises the complex compliance activity that takes place through supply chains. As the hon. Member for Wakefield pointed out, it is not just about sales between companies but about the movement of goods through the supply chain within a company.

We want to avoid the unnecessary duplication of compliance activities undertaken by businesses prior to exit. That was set out in the Government’s position paper, “Continuity in the availability of goods for the EU and the UK”, published in August 2017, which also set out our principles for maintaining the availability of goods after exit.

It is likely that some products will be undergoing testing, registration or authorisation processes at the point of exit. For such cases, given the ambition for a close future relationship, the body carrying out the assessment should be permitted to complete it and the results should be recognised in UK and EU markets. That would be in the best interests of businesses across Europe, and I encourage them to work together to support that pragmatic outcome.

Although it would not be appropriate to pre-judge the outcome of the negotiations, we will discuss with EU member states how best to continue co-operation in chemicals regulation in the best interests of the UK and the European Union. That extends to aspects of knowledge sharing—it would be ideal to continue that work through the negotiations. For example, the EU is highly reliant on the expertise of the Health and Safety Executive in the assessment of chemicals, particularly biocides and pesticides.

I am aware that the guidance that the European Chemicals Agency published on its website about the UK’s withdrawal from the EU has caused concern. That guidance reflects the EU’s view of what would need to happen if there were no future relationship between the EU and the UK. It does not, of course, take into account potential negotiated outcomes and I am pleased to note that that has now been acknowledged on the ECHA website. As hon. Members may be aware, the guidance has recently been updated to reflect issues about the transfer of registrations and authorisations.

We have increased resources within my Department, in the HSE—a body sponsored by the Department for Work and Pensions—and in the Environment Agency to work on chemicals policy and prepare to deliver an effective regulatory regime after we leave the EU. We have established a joint programme of work with HSE to deliver what we need to have in place for day one. I work with ministerial colleagues across Government from the Department for Business, Energy and Industrial Strategy, the DWP, the Department for Exiting the European Union, the Department for International Trade and the Treasury.

We are also planning for a non-negotiated day one outcome to have a functioning chemicals regulatory and enforcement system. We are now scoping and designing what such a system would look like, including an IT system to replicate REACH. As the hon. Member for Wakefield pointed out, that includes the budget that has been released so far to scope that system.

On leaving the EU, our regulatory system and laws will be identical to those of the EU. There could be opportunities to consider improving the regulatory system to maintain standards in protecting the environment and human health. That is why we have considered the regulatory approaches of other countries, including those that are largely modelled on REACH.

Although we will not be part of REACH, there is an opportunity to work internationally to strengthen the standardisation of methods that assess chemical safety in support of the mutual acceptance of data to identify and share information on emerging concerns and on new approaches to risk assessments. In a global world where we share chemicals and have several existing chemicals conventions, it makes sense for our regulatory authorities increasingly to share that information to ensure that we have greater compliance and convergence in understanding and recognising the benefits and hazards that chemicals can pose. I do not see any reason why we cannot have that ambition once we leave the EU.

[Dr Drew]

After the dreadful experience of the Rural Payments Agency’s IT system, will the Minister confirm whether the IT system to replicate REACH has already been commissioned? Will it be put out to private contractors or done in-house within Government?

[Dr Coffey]

The system is at the stage where we are waiting for an aspect of the business case to be signed off. I have met the new Minister responsible for the Health and Safety Executive—the Minister for Disabled People, Health and Work, my hon. Friend the Member for Truro and Falmouth (Sarah Newton)—and work is ongoing between our Departments and the HSE.

The most relevant environmental principle to chemicals regulation is the precautionary principle, which is embedded in international conventions relevant to the regulation of chemicals, such as the Stockholm convention on persistent organic pollutants, to which the UK will continue to be a signatory in its own right. The Secretary of State has announced that we will consult on how we will incorporate various environmental principles and governance mechanisms, and we are carefully considering our proposals at the moment.

As the hon. Member for Stroud (Dr Drew) noted, we recently published our 25-year environment plan, in which we acknowledged that chemicals provide substantial benefits to society, but their widespread use in industry, agriculture, food systems and homes has led in some cases to pollution of land, water, air and food. We will publish a new chemicals strategy to tackle chemicals of national concern. The new strategy, which will build on existing regulatory approaches, will set our priorities for action and will detail how we will achieve our goals. It is intended to support collaborative work on human biomonitoring, address the combination effects of different chemicals and improve how we track chemicals across supply chains. I am not able to set out a timeline, but I certainly do not anticipate that the strategy will be published this year, because our main focus is implementing a smooth transition and continuing existing regulations.

We also need to consider the domestic market within the United Kingdom. REACH currently gives us a consistent framework across the UK, and we would like that consistency to continue. We have already started discussions with the devolved Administrations on a future chemicals framework across the UK.

Let me tackle some other questions raised by hon. Members. Is REACH the preferred methodology for chemicals regulation? In our international discussions, as I told the Environmental Audit Committee, we are not minded to take the United States’ approach. We think that REACH has shown its worth. As has been pointed out, a lot of chemical companies were not necessarily its greatest fans when it was introduced but are now embracing it. When I discuss the matter with Ministers from Brazil and other countries, it is clear that they are trying to get the best of all worlds, which is what we need to ensure for ourselves as we go forward. I have spoken to Switzerland, and I think officials have had discussions with South Korea. A lot of countries are taking a REACH-style approach but may not be replicating it in every detail.

On early warning and horizon scanning, I hope we can set out our approach in more detail when we publish our chemicals strategy. In answer to the question about sufficient expertise, I must point out that the HSE is the responsible authority and there is no reason to doubt its expertise; I commend it for its work in support of the chemicals industry.

I fully understand hon. Members’ concerns about bureaucracy, which is why we are in negotiations. I am afraid that I cannot give hon. Members an update on where we are, because phase 2 of the negotiations is yet to start; I fully understand the uncertainty that that brings. I have engaged with stakeholders. We have seen only representatives becoming part of networks or opening branch offices in different countries or a presence in the European Union. As I told the Committee, from my experience of working in multinational companies, I fully expect them to be contingency planning, but that does not mean that they will be abandoning this country all of a sudden. Far from it: the size of the market in this country, not only for chemicals but—as has already been explained—for many other manufacturing sectors, absolutely means that they will keep a permanent presence in the United Kingdom.

I do not anticipate any new approaches to risk assessment. The precautionary principle is well embedded in what we do. As I have articulated, we will be bringing different regulations into law, as will the devolved Administrations. We sit on committees now and we hope to retain those links in the future, but that is a matter for the negotiations.

The hon. Member for Stretford and Urmston (Kate Green) raised third-party country status. We still need to consider and negotiate elements of that. The approach set out by the Prime Minister on behalf of the Government, in which not being governed by the European Court of Justice is a guiding principle in what we do, still applies, so some assessment is still needed. Bioaccumulation is among the matters that we intend to cover in our chemicals strategy.

Let me assure hon. Members that ensuring we have a regulatory regime that continues to be effective is a very important part of my portfolio, but my top priority has been a smooth transition. As I am sure hon. Members recognise, I cannot answer questions today about exactly what our future customs arrangements with the rest of the European Union will be. However, I am highly conscious that we want to help business to continue to be successful, and I would like it to get certainty as quickly as possible. I am sure that I have disappointed hon. Members today by not being able to do that, but I will move on to the next phase of negotiations shortly.

I reiterate that we will do all we can to ensure a smooth transition and a successful industry for years to come. I saw the hon. Member for Stroud and members of the Environmental Audit Committee yesterday. I am sure that broad consideration of the environment in different ways and across different industries will continue, quite rightly, to be a key topic for debate in Parliament.