Landfill Tax (Disposals Of Material) Order 2018

Jonathan Reynolds Excerpts

Monday 30th April 2018 General Committees

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Thank you for calling me to speak on these measures today, Sir David.

According to the Environmental Services Association, landfill tax avoidance is estimated to cost the Exchequer between £150 million and as much as £1 billion a year: a considerable amount of money that could be put into vital public services. In addition to that, as someone who represents the edge of the Greater Manchester conurbation with Derbyshire, we are blighted by the problems of organised fly-tipping in my constituency, so I welcome the chance to speak from the Front Bench today about the measures to ensure that tax is paid at sites that do not have an environmental permit, and I welcome the clarification in the Government’s note that the individuals involved may also be liable to penalties for non-compliance or face prosecution.

Bringing non-permitted sites into the scope of the landfill tax will hopefully make it a less attractive and lucrative option for those seeking to break the law, so we are supportive, although I have some questions for the Minister regarding the changes. Since the introduction of the landfill tax, the Government have stated—the Minister has just repeated it—that the amount of waste going to landfill has reduced by 65%. Can the Minister comment on whether that figure includes the calculation on waste diverted to non-permitted sites? If so, how much further does he expect the amount of waste going to landfill to reduce because of the new measures?

My hon. Friend the Member for North Durham (Mr Jones) has previously spoken at great length in the Chamber on issues related to landfill tax. One issue that he raised was money laundering, a timely issue given the debate that we will have tomorrow. Running a landfill site is a high volume business that can involve large amounts of money, so has the Minister done any research into the prevalence of money laundering in the sector? I understand that, according to the Government’s calculations, there were 622 known illegal waste sites in the UK in 2015-16. Will the Minister update us on how many there are now?

Also, are there currently any plans to increase the monitoring of high volume landfill operators through the use of technology? Could we not have a system similar to those used in slaughterhouses and weighbridges where cameras record how many vehicles enter the sites? Given the amount of money estimated to be lost each year through tax avoidance, a small investment in such technology could potentially pay for itself in a short space of time.

There is no doubt that extending the scope of the landfill tax to include non-permitted sites is a positive step that has been welcomed by the industry and those willing to abide by the rules. However, we are also eager to see whether there is more that the Government can do to stamp out illicit activity in the sector, and I look forward to hearing how the Minister plans to address those issues. It seems strange that the measure appears to treat unauthorised sites the same as authorised landfill sites by applying the tax, as the Minister has explained. That seems to show that the current regulatory system for illegal landfill sites is not sufficient. Is it not possible for any resulting funds from the measure to be redirected into the Environment Agency so that it can actually stop the illegal sites in the first place?

Finally, as Members are aware, landfill is devolved in Wales and Scotland. Will the Minister comment briefly on how the Government co-operate with the Welsh and Scottish Governments to deal with the issue if the material illegally deposited is a cross-border problem?