Waste Industry: Criminality and Regulation

Gary Streeter Excerpts

Tuesday 1st February 2022 Westminster Hall

[Sir Gary Streeter (in the Chair)]

Before we begin, I remind Members to observe social distancing.

Before I call Aaron Bell, I wish to make a short statement about the sub judice resolution. I have been advised that there are active legal proceedings between Mathew Richards and the Environment Agency. The Speaker has agreed to exercise the discretion given to the Chair in respect of the resolution on matters sub judice to allow full reference to those proceedings as they concern issues of national importance. I am aware that Members may wish to refer to criminal legal proceedings during the course of this debate to illustrate concerns relating to illegal waste activities. All Members should be mindful of those cases that remain contested or may be the subject of future legal proceedings and should refrain from making references to any active court cases. This is particularly so in respect of criminal matters where discussion of the cases is likely to be prejudicial to any forthcoming hearings or trials. The sub judice resolution has not been waived in relation to any live criminal cases connected to Walleys Quarry.

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[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on making such a strong case on behalf of his constituents who have been affected by this case. On a broader point, one of the challenges that the Environment Agency faces is being able to collect and collate the right information to bring an effective prosecution or take action against offenders. I can think of a similar case with different circumstances in my constituency, where there have been those kinds of challenges. What would he ask the Minister to do to support the Environment Agency in bringing together the right information in such cases to challenge them?

[Sir Gary Streeter (in the Chair)]

Order. Interventions must be brief.

[Aaron Bell]

I thank my hon. Friend for his intervention. Clearly, the Environment Agency needs more powers. I have reassured my constituents that there is no financial pressure, but I am not convinced that more money would necessarily solve the severe cultural problem within the Environment Agency. It does not need more money if it is too weak to use it. I accept that it has perhaps been subject to the same legal threats as The Guardian, campaigners and myself, but, as a regulator, it must be stronger and act in the public interest. If funding is the problem, the Department for Environment, Food and Rural Affairs must address it.

Finally, I expected to come here to push for other policies, but I am pleased to note the recent significant consultations launched last month by DEFRA on the carriers, brokers and dealers regime and on developing a central digital waste tracking service, which would address concerns that there is no comprehensive way of tracking waste. I would like to briefly touch on other types of waste crime, but I will let others speak more about them. At the lowest level, something that is rife in everyone’s constituencies is fly-tipping. Recently in Newcastle-under-Lyme, there has been fly-tipping off Watermills Road in Chesterton, but I will leave that to my hon. Friend the Member for Darlington (Peter Gibson), who I understand wants to speak about that.

Another area is illegal waste dumps. I know that other hon. Members might want to pick up on that, but I must put on the record my concern about how these are being policed by the Environment Agency, too. For the past decade, constituents in the north-west of my constituency have had to suffer through an organised illegal waste dump at Doddlespool farm. Fleets of lorries have travelled from far afield to drop their loads of waste at the site to avoid paying the landfill tax. The lorries have blocked roads. There have been fires, rat infestations, and waste has spilled out, potentially contaminating watercourses and the food chain.

The EA took court action in 2017. The landowner was required to remove the waste or face further court action. He was also hit with a £6,100 court bill—again, inadequate—yet the waste has not been removed five years on. I cannot comment further on the present situation due to sub judice rules, but it is evident that the fine was not a serious enough punishment to make the landowner change his ways. I am conscious that I have taken a long time. In conclusion, we need to look thoroughly at the problems within the current regulatory regime and at the scale of criminality in the sector, and I look forward to the rest of the debate.

[Several hon. Members rose—]

[Sir Gary Streeter (in the Chair)]

Order. Colleagues, nine people wish to speak and the wind-ups begin at 5.10 pm, so you have two and a half minutes each.

[Mr Kevan Jones (North Durham) (Lab)]

I congratulate the hon. Member for Newcastle-under-Lyme (Aaron Bell) on securing the debate. He has summed up the situation well.

I have been involved trying to expose this issue for the last 10 years, along with the right hon. Member for Haltemprice and Howden (Mr Davis). Everyone knows what is going on. They know about the lack of regulation, the low threshold for getting into the industry and the involvement of organised crime. HMRC itself in its tax gap report recognises that some 22% of landfill tax is not being paid, although it actually put a profit warning on that. The Environment Agency knows not only what has been lost in tax revenues, but that the clean-up costs will fall on the taxpayer. Everyone knows that the matter involves organised crime. I have raised it for the last 10 years, and I am sure the right hon. Gentleman will allude to that as well. We have explained all this to the Government, but there seems to be inaction in respect of getting the agencies together.

The Environment Agency is not capable of addressing the matter. It may be good at cuddling newts and protecting forests, but it is not good at having an enforcement attitude. HMRC is frankly a disgrace, and I will give an example of why I say that. I got involved in the matter because of a company in the north-east called Niramax. I only had to look at the directors of the company to see something was wrong. Organised criminals—one of them is in prison for murder, and the police told me that his associates had convictions and were involved in a whole host of organised crime—suddenly got involved in waste management. They bought a landfill site in the constituency of the right hon. Member for Haltemprice and Howden, which I know he will talk about, and one or two in the north-east. They then set out to undercut legitimate businesses. Talking to people in the waste industry, there is no way they could pick up that waste for the amounts they charged.

It ended up with Operation Nosedive, which HMRC instigated in 2014. HMRC raided the premises and claimed £78 million was to be reclaimed. That was suddenly halted in 2020. The right hon. Member for Haltemprice and Howden and I asked why it had been halted and we were told, “No, no. You can’t look into this because it is HMRC.” The National Audit Office has done a very good investigation that showed HMRC spent six years and £3.5 million of public money, but there were no convictions and there was no outcome.

Everyone knows what the problem is, but there has got to be action. I say to the Minister, I do not want more initiatives about fly-tipping and this, that and the other; I want co-ordinated action between the agencies that have the powers to crack down on this.

[Sir Gary Streeter (in the Chair)]

You have two and a half minutes each, colleagues.

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[Jo Gideon (Stoke-on-Trent Central) (Con)]

It is a pleasure to serve under your chairmanship, Sir Gary. I welcome the opportunity to speak in this vital debate secured by my parliamentary neighbour, my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell). He has made a strong and clear case for the need for more action to tackle the blight of criminal activity in the waste industry. This appalling activity is putting tens of thousands of lives at risk across the country.

In my constituency, I have been fighting for a lasting solution to one such waste crime, which had the potential to be a national disaster. Yet, as the site in question is being cleared, up and down the country unscrupulous criminals are filling warehouses or plots of land next to residential properties and littering our countryside with waste that presents a real threat to the health and safety of surrounding communities.

I wrote to the Prime Minister and multiple Departments last year to highlight the urgency of clearing a site that has been a significant risk in Stoke-on-Trent Central since 2014, and I am delighted that my campaign has resulted in clearing the Twyford House site of an excess of 30,000 tonnes of illegal and combustible commercial waste. I thank the Minister for her support in making that happen, so that the danger that has been there since 2014 can finally be removed.

My hon. Friend’s tireless work to tackle the environmental disaster at Walleys Quarry landfill is an example to us all. Although the quarry is in his constituency, the consequences of the activities at that site are suffered by my constituents too, and I have also been persistently raising their concerns with the Environment Agency and Ministers. The pace of progress to resolve the problem has been a frustration to us all. Does the Minister agree that there is a clear need for the separation of regulation and enforcement authorities?

The current approach to the regulation of more than 180,000 waste carriers, brokers and dealers is leading to record levels of crime, which may well spike later this year when the increased cost of red diesel will mean many looking to cut corners to make savings, for example through the use of exemptions codes. It is a sad fact that waste crime is more lucrative on the basis of risk-to-reward ratios than human trafficking or drug dealing.

This is not a victimless crime. Public health and public safety are dependent on stopping the serious waste industry criminals. We must have better regulation and tougher sentences.

[Sir Gary Streeter (in the Chair)]

We can now go to three minutes each. I call Peter Gibson.

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[Jonathan Gullis]

I could not be more grateful to my hon. Friend. This is why we are a tour de force in north Staffordshire, walking around at every opportunity like some sort of north Staffordshire mafia, which I am proud to be a part of.

The company has also repeatedly breached its permit at the neighbouring site, where it does have permission to operate. Many incidents were reported at the site in 2021, including four in the run-up to Christmas. A site visit by the Environment Agency on 21 January 2022 found multiple breaches of permits, including the storage of too much hazardous waste on the site, as well as the storage of scrap metal, which the permit does not allow.

I am encouraged to have learned from the Environment Agency that it will carry out further inspections this week and has engaged with the company to get it to sort out its operation. The Environment Agency and Stoke-on-Trent City Council will also have a joint meeting on Thursday to discuss the problems at the site. I look forward to receiving an update early next week on the outcome of those investigations and the meeting.

When the people who run waste sites fail to keep them safe and manage them in a way that is inconsiderate to their neighbours, it has a huge impact on people’s physical and mental wellbeing, as well as the feel-good factor of a place that we proudly call home. We need to make sure that these companies can be properly controlled and brought to heel when they do wrong.

[Sir Gary Streeter (in the Chair)]

I thank colleagues for their co-operation in keeping to time. We turn to speeches from the Front-Benchers; the first two have five minutes each.

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[Ruth Jones (Newport West) (Lab)]

It is a pleasure to serve under your chairmanship again this afternoon, Sir Gary. I am very grateful to lead for the Opposition in this debate, and I would like to acknowledge the hon. Member for Newcastle-under-Lyme (Aaron Bell) for calling it.

At the outset, I pay tribute to all the campaigners in north Staffordshire working to stop the stink at Walleys Quarry in Silverdale. I think of people such as Helen Vincent, Dr Michael Salt, Dr Scott at Silverdale Practice, Nat and Angela Wint, Graham Eagles and Steve Meakin, Councillor Amelia Rout and Councillor Sue Moffat. I also think of William Cross, Sian Rooney, Tom Currie, Lauren Currie, Dr Ian Sinha and, of course, Rebecca Currie and youth Matthew. Those people and many more, such as Adri and Colette Hartveld, want to be able to lead their lives, raise their families and breathe the air around them in safety.

I know from my visit to Silverdale and the discussions I have had with local residents how much stress, concern and fear is caused by the hydrogen sulphide emissions emitted from the site, as well as the effect that waste-related issues have on people’s lives. I want to acknowledge all the other campaigners who care and want change desperately.

I also acknowledge the tireless and passionate work of local councillors in that community. On my visit, I was joined by a number of councillors, including Andy Fox-Hewitt, Dave Jones, Gill Williams, John Williams and Adam Jogee, who works in my team. The issues there are real and harmful, and the Government need to act now. If the Minister will not take my word for it, I ask her to reflect on the fact that in just one week in June 2021, the Environment Agency received 1,207 complaints from residents across Silverdale, Clayton, Westlands and the wider Newcastle-under-Lyme area. That strength of feeling surely speaks for itself.

As pointed out by Commons Library staff in their helpful briefing ahead of this debate, the true scale of waste crime is difficult to quantify, but it is

“estimated that 18% of all waste is illegally managed, equating to approximately 34Mt (megatonnes). This is the equivalent of enough waste to fill Wembley Stadium 30 times.”

That is a shocking statistic and it must prompt the Government to act.

The impact of waste crime is widespread, with adverse effects on individuals, businesses, public services, the environment and the economy. Indeed, the Environment Agency’s 2021 report stated that waste crime costs the economy in England an estimated £1 billion a year—a 55% increase since its last estimate in 2015. The problem is real. I would be grateful if the Minister could update the House on the work of the joint unit for waste crime, which has been mentioned. It would be helpful to know the scale and frequency of engagement between agencies and with the devolved Administrations, the reach and scope of the unit’s current work, and any plans for the coming period.

Fly-tipping and illegal waste dumping blights communities across England, and this Government have to get a grip nationally and locally when it comes to ensuring that local government has the resources it needs to keep our communities green, clean and waste free—an ambition that many residents in Newcastle-under-Lyme want and deserve.

I am grateful to colleagues in both Houses of Parliament in recent weeks and months for raising waste-related issues through a range of written parliamentary questions, including my hon. Friend the Member for Huddersfield (Mr Sheerman), the noble Baroness Jones of Whitchurch in the other place, my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) and my right hon. Friend the Member for North Durham (Mr Jones), who has spoken eloquently in today’s debate. Indeed, in June 2021 my right hon. Friend asked about

“the adequacy of the Environment Agency’s surveillance powers”.

In response, the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Taunton Deane (Rebecca Pow) said that there had been no assessment of the adequacy of those powers. I ask the current Minister whether that remains the case. That is in addition to the questions asked of the Minister and DEFRA by Government Members.

It is clear from what is happening in communities such as Newcastle-under-Lyme that waste has a huge impact on the lives of many people across the country. In the last 10 days, the Government have set out two new consultations in relation to tackling crime. I wish those consultations well, but, more importantly, we want to see swift action. I would like the Minister to address in her closing remarks the approach to landfill and incineration, because we need an open and honest discussion about how we tackle waste, and we need to know where the Minister is on these issues. The scourge of waste crime across England is a task that we must all work together to address. I look forward to working with the Minister, the hon. Member for Newcastle-under-Lyme and all colleagues to address these issues, and to protect and clean these green and pleasant lands.

[Sir Gary Streeter (in the Chair)]

Will the Minister please leave two minutes for Mr Bell to have the final word? I call Jo Churchill.