Rebecca Pow Portrait Rebecca Pow
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I thank the hon. Member for that question. In true Government-speak, I will say “shortly” and move on.

I make it clear that the exemption for

“spending or the allocation of resources”

refers to central spending decisions only. Individual policies that involve spending by Departments will still need to have due regard to the policy statement. Spending review and fiscal event decisions must be taken with consideration to a wide range of policy priorities, including macroeconomic issues that are too remote from the environmental principles for those principles to be directly applicable. For example, principles such as “polluter pays” cannot be applied to the allocation of overall departmental budgets.

I turn to the office for environmental protection. Lords amendments 31 and 75 would remove, respectively, the power for the Secretary of State to offer guidance to the OEP and the equivalent power for Ministers in Northern Ireland. I reiterate the Government’s commitment to establishing the OEP as an independent body. However, as the Secretary of State is ultimately responsible to Parliament for the OEP, the guidance power is required to ensure that there is appropriate accountability and that the OEP continues to operate effectively.

I acknowledge the concerns that have been raised about the power for the Secretary of State to issue guidance for the OEP. Our Government amendment (b) will therefore reintroduce the additional provision, first added in the other place, to ensure that Parliament and the Northern Ireland Assembly can scrutinise draft guidance before it is issued. The Secretary of State must respond before final guidance can be laid and have effect. The guidance power is not a power of direction; it will simply ensure that there is appropriate accountability and that the OEP continues to operate effectively. That is why the Government believe that it should remain part of the Bill.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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What would happen if the Northern Ireland Assembly said that it did not agree with the legislation proposed here? Would Westminster overrule it?

Rebecca Pow Portrait Rebecca Pow
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Northern Ireland is included in this, but it has to decide whether it wants to commence the powers. It is up to it to do so.

Lords amendment 33 relates to the OEP’s enforcement powers—a complex issue, but an important one. I want to be clear with the House about what the amendment would do: it would remove protections for third parties brought into the OEP’s process of environmental review that have been specifically designed in recognition of the unique nature of this type of legal challenge. That is unacceptable. The OEP will be able to bring cases to court, potentially long after the decisions in question have been taken and outside the standard judicial review limits. Impacts on third parties must therefore be considered.

To give an example, quashing planning permission or consent for a block of flats many months or years after the decision was taken, when significant building works might already have commenced, would result in substantial hardship. We need to ensure that the key principles of fairness and certainty are upheld for third parties who have acted in good faith on the basis of certain decisions. The amendment would offer no such protections for third parties, so we cannot accept it.

I will conclude by briefly mentioning other Government amendments made in the Lords in relation to devolution, which I hope this House will support. Those amendments will, among other things, promote co-operation between the OEP and devolved environmental governance bodies and create clarity and consistency on the use of the environmental principles across the Union.

I am pleased to be backing the Environment Bill

Royal Assent