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Mr. John Home Robertson (East Lothian): I warmly endorse the closing words of the right hon. Member for Lagan Valley (Sir J. Molyneaux), not least because my wife has recently been elected to a Scottish local authority.
Sadly, I am about to develop a substantial constituency interest in the landfill industry since Blue Circle Industries plc has obtained planning permission to use what used to be an enormous quarry close to Dunbar as a large landfill site, which will be available to users in south-east Scotland and north-east England. I fear that the site will provide lots of revenue to the private company, Haul Waste, that has bought it from Blue Circle.
It is interesting to note that Haul Waste is a subsidiary of the privatised South West Water, so there will be a number of snouts in that trough. All those involved will want to get their cut from the business and, under the landfill tax, the Chancellor of the Exchequer will get £7 a tonne out of the same hole.
My main anxiety is that, after the privatised water industry gets its profit out of that hole in the ground and the Chancellor of the Exchequer has had his take, very little might be left to protect the environment of the neighbourhood. We all know that landfill sites can be very messy locations. The best impression of the east coast of Scotland will not be created if people travelling up the A1 or the east coast main line go past a colossal hole full of visible, smelly, messy rubbish. It is therefore important that people who operate such sites should be given incentives to do so in an environmentally friendly and responsible manner.
Mr. Roy Beggs (East Antrim):
The hon. Member will share my concern that Haul Waste is seeking planning permission for a huge--probably the biggest--quarry site in Northern Ireland on the edge of Larne lough. Does he agree that landfill sites must be strictly supervised to ensure that leachate does not flow into rivers and loughs to cause permanent and, in many cases, irreparable damage?
Mr. Home Robertson:
We are in danger of having a general debate about the merits and demerits of landfill sites, but I agree entirely with the hon. Gentleman.
I am personally very sad about the development in my constituency because, in my 18 years as Member of Parliament for East Lothian, I have never received a single complaint about the council-operated tip in my local authority. All the rubbish is baled and most of my constituents do not even know where it goes. Under the new set-up, the rubbish will be tipped loose. The wind will blow it around, the gulls will fly and the rodents will run around. I fear that the site will be revolting and I am concerned that--after everybody has had a profit--the environment of the area should be protected.
My specific point about the new clauses and amendments in this group arises from something that the Paymaster General said in his introductory speech. He said that the purpose of the landfill tax is to encourage the reuse and recycling of waste material. It does not quite do that.
Encouragement can involve carrots or sticks, and the tax is a stick that will penalise landfill, but there is nothing in the package to encourage recycling and investment in plant for recycling. That point was clearly made to me by a waste operator in my constituency, East Coast Skips Ltd., which told me that it is enthusiastic about co-operating with Government policy and wants to invest in equipment to recycle timber, paper, glass and anything else.
Mr. Tim Devlin (Stockton, South):
I welcome the opportunity to say a few words about landfill tax, because it is of great concern in my constituency, which is Britain's largest chemical-producing area. When I recall the Second Reading of the Finance Bill, I am pleased to see in new clauses 5 and 6 that the Government have taken notice of some of the criticisms that were made about the tipping of material dredged from harbours and rivers and about inert material washed from potatoes and resulting from the movement of soil.
I still have three concerns, which have already been communicated to the Department of the Environment by Teesside development corporation, by contractors in my constituency and by me on behalf of Harcross, the largest producer of chrome in this country and in Europe. Its main competitors are in America, the far east and South Africa, so any burden placed on that company puts it in an unfortunate uncompetitive position against the major competitors that it faces in other parts of the world. I shall be interested to hear what the Paymaster General has to say about my three points.
The first point is about Harcross. I have read new clause 6 on mining and quarrying and I am uncertain whether a company that takes mined material from another country, separates it into a useful metal and an inert waste and then landfills the waste in a pit on its own land will be liable to pay the full £7 a tonne rate of tax. If it is liable, that will significantly affect its competitive position. I am interested to know whether the steps that the company has taken to reduce the waste that it produces--they have cost a considerable sum--will be offset against the amount of tax that it may have to pay if it is indeed liable to the tax.
My second concern relates to the activities of the urban development corporations. This point has been pursued with the Department of the Environment by Teesside development corporation. It has to do with contaminated land being excavated to regenerate an area, and whether
the scrapings taken up from the surface of the earth and then sent away to landfill will be liable to the £7 a tonne tax. If they are, that will, in effect, be a tax on regeneration. I had understood from the DOE that that would not happen, and that the removals would be classed as inert material and thus be exempt from the tax. The development corporation and I would both be grateful for confirmation of that.
My third concern is material used for landscaping. I have to admit that I am rather confused by a letter that I have received from a junior Minister at the Department of the Environment, with whom I have corresponded on this matter. Incidentally, he offered to meet me to discuss the problem but has not yet found himself able to do so. The letter, dated 14 March, says:
On the next page, the letter continues:
Further on, the letter continues:
The point here is whether construction industry waste--bricks, tiles and pipes--which is then sold by companies to other companies for use as hard core on building sites to fill in soft patches in the ground, and as underlay for carparking areas and farmyards, will be classed as waste. Will it be classified as destined for landfill or as recycled material that is wholly exempt from the tax? That is an important aspect to the chemical industry and to agriculture generally. Hard-core material is often sold to companies such as ICI to build bunds around their plants, so that if there is a chemical leak it can be contained within a specified area. It is then landscaped with topsoil, effectively creating what looks to the eye of the passer-by like a long, low hill. That improves the visual aspect of many a factory and plant, at the same time as adding to safety.
Many companies sell their hard core for the construction of new roads, farm roads, farmyards, turning areas and parking areas. Is that classified as landfill? If so, will the material be charged at £2 a tonne, or will it be classed as recycled material? That point has been raised by hauliers in my constituency who are anxious for the answers. I look forward to some guidance on how this part of the construction industry will be affected by the proposed landfill tax.
"You question whether the landfill tax should also apply to inactive or inert wastes. Inactive or inert waste is waste which does not decompose when it is landfilled to produce methane gas, or have the potential to pollute groundwater. We recognise that the risk of environmental pollution is much smaller for this type of waste, and the lower tax rate of £2 per tonne will apply to inactive wastes to take account of this."
"The landfill tax will provide an incentive to use these materials productively rather than disposing of them in landfill sites".
"The purpose of the tax is to face producers of waste with their actions . . . Research published by my Department into the recycling of demolition and construction waste does suggest that there is scope for increasing both the total quantity of waste recycled and the proportion which is recycled as quality secondary aggregate."
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