Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2015

Lord Grantchester Excerpts

Wednesday 4th February 2015 Grand Committee

[The Duke of Montrose (Con)]

My Lords, I thank the Minister for introducing this measure. I am most grateful to see that the regulations start off by allowing enforcement undertakings in the case of any infringement of pollution. I declare my interest as a farmer and I am looking at the subject from that angle. Of course, at the moment farmers who pollute or allow noxious substances to escape from their farms are subject to penalties under the common agricultural policy and the good agricultural and environmental condition standards. Farmers can be penalised by those, first; and secondly, the Environment Agency can impose penalties. Usually the idea is that a small penalty is imposed as a warning, but there is power to impose a very much heavier penalty. I am wondering whether these enforcement undertakings will work in tandem or whether they will be the opening gun of trying to enforce regulations when people are not complying properly and causing pollution or environmental damage.

[Lord Grantchester (Lab)]

Once again, the Minister has provided the Committee with an excellent introduction to, and explanation of, the regulations. The noble Duke, the Duke of Montrose, brought up the situation regarding farming and these regulations. In case there should be any anxieties, I declare my interest as an owner of a dairy farm. However, my reading of the regulations is that of the nine classes of regulated activity to which they pertain, none applies to dairy farming—except, possibly, the water discharge activity. It would be extremely helpful if the Minister could clarify the extent to which farming is affected by these regulations, and how they might work together with the regulations under the common agricultural policy.

The Minister has clarified that these regulations introduce no new requirements and make no changes to existing offences and existing enforcement mechanisms, but merely allow the Environment Agency to accept enforcement undertakings when they are on offer. I agree that the order is constructive in that it allows the Environment Agency greater flexibility in its approach to transgressions, and follows his department’s Fairer and Better Environmental Enforcement review, which was initiated by the previous Labour Government. The regulations will make a positive addition to the Environment Agency’s ability to do its job well. The benefits to society include giving priority to restoration of harm ahead of criminal convictions.

The Explanatory Memorandum states, with regard to guidance, that the department will write to the Environment Agency setting out the expectation of how these enforcement undertakings will be used to ensure that enforcement is in accordance with Better Regulation principles. Will the Minister update the Committee on this progress? When does he expect that the Environment Agency will be able to publish its guidance on enforcement matters?

As the Minister explained, the Explanatory Memorandum provides no impact assessment, on the basis that the order has no impact on business or other organisations unless they fail to comply with the law. However, this was the subject of extensive discussions in the other place. The changes proposed in 2010 would have significantly reduced costs to both the Environment Agency and Natural England. As the Minister said, at the very least the order will help to free up the Environment Agency’s time.

In addition, since 2010 it is understood that consideration has been given to costs recovery. Did the Minister’s department give any consideration to recovery of the Environment Agency’s costs for monitoring and administering the new enforcement undertakings element of the order? Will he confirm that the Environment Agency can recover its costs from the order? The reply of the Minister in the other place rather missed the point to a certain extent, in his statement that it has no effect on business. It should surely be possible to produce an impact assessment on the benefits to business in this Better Regulation measure. After all, it is the aim of Better Regulation to bring benefits.

Finally, the ability to quantify the value of ecosystem services has also developed greatly since 2010. Are the Government able to give an estimate of the ecosystem services benefit of the increased compliance resulting from this change? I would be very grateful if the Minister could clarify his department’s approach to the benefits of this order.

[Lord De Mauley]

My Lords, I am grateful to noble Lords for their contributions. My noble friend the Duke of Montrose asked how farmers will be affected by these changes. Under the new system, farmers will be treated in the same way as any other business. The regulations will enable farmers who have a general approach to compliance to propose enforcement undertakings to the Environment Agency as part of the regime. It will form part of the way in which they can resolve issues. He has reminded me that I should probably declare an interest as a landowner.

The noble Lord, Lord Grantchester, asked a number of questions. He asked about guidance. I am not sure I am going to be able to satisfy him entirely today but I can say that my department will be writing to the Environment Agency, setting out the expectation of how environmental permitting enforcement undertakings will be used. It has already consulted on and will pay heed to the existing guidance on the use of environmental undertakings, which is currently being reviewed. That is probably as far as I can go today on that point.

The noble Lord asked about costs recovery. The regulations do not affect the level of inspection or enforcement. Enforcement undertakings will be an alternative to prosecution in suitable cases. Advice and guidance from the Environment Agency will remain the foundation of the environmental enforcement system. I do not think they will have an upward impact on costs at all. I think he also asked why there is no impact assessment, which I hope I explained. No impact assessment is needed for what is, in effect, a voluntary measure that will impact only on those who are not compliant and who voluntarily offer enforcement undertakings. For the delivery of this final part of the Fairer and Better Environmental Enforcement review, we have chosen to rely on the original impact assessment from 2010.

[Lord Grantchester]

My Lords, perhaps I may clarify the question I asked. I well understand the logic in both the Explanatory Memorandum and the noble Lord’s words that this has no impact and does not require any new regulation to be complied with. Nevertheless, this is a measure that will bring benefits, so I wonder whether any assessment has been made to quantify what is likely to result from the benefits of better regulation.

[Lord De Mauley]

I referred to what I think is the best estimate we can make although, as the noble Lord will understand, it is quite difficult to do because it depends on take-up. However, if I can add anything to what I have already said in my opening remarks, I will write to him.

The noble Lord also asked whether I can update the Committee on the Environment Agency’s guidance. I have already said a few words about that. The agency has its guidance, trained staff and an established approval and governance process, which includes oversight by a director-level national panel to promote consistency and the sharing of full information. On that basis, I hope that I have answered most of the questions that have been put to me, but to the extent that I have not, I will write.