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5. Mrs. Brinton: What plans he has to encourage businesses to adopt environmentally friendly practices. [14845]
The Minister for the Environment (Mr. Michael Meacher): The Government are providing advice and guidance through the energy and environmental best practice programmes; promoting the take-up of accredited environmental management systems and encouraging public reporting by companies on their environmental performance. We are also increasing consumer awareness so that companies have better incentives to produce environmentally friendly products.
Mrs. Brinton: I thank my right hon. Friend for his reply. Is he aware that in my constituency many small and medium businesses are working very hard, in association with the authorities and other organisations, to develop environmentally friendly practices? Is he further aware that all our efforts will be set at naught unless these are complemented by similar action from some of the global industries, in particular the large oil companies? How does he plan to respond to some interesting overtures that are being made by some of these industries, in particular BP and Shell, to develop policies and ways of working to combat the terrible effects of global warming and associated climate change?
Mr. Meacher: I am certainly aware of the initiative taken by the Supersavers project in Peterborough, where very substantial savings have been achieved through the employer involving employees, in particular the Amalgamated Engineering and Electrical Union, in that project. My hon. Friend makes a fair point. The leading companies have to be involved. She mentioned Shell. In fact Shell recently launched new, renewable businesses, and plans investments of more than half a billion dollars over the next five years.
My hon. Friend also mentioned BP, which, incidentally, has left the Global Climate Coalition. I hope that Shell will soon do the same.
BP has made a substantial investment in solar energy. Only today, the Chemical Industries Association signed an agreement--voluntarily--to achieve a 20 per cent. cut in energy consumption, and hence in carbon dioxide emissions, by 2005. So it is beginning to happen, but we must go a great deal further. We will publish our White Paper soon after Kyoto, setting out what we expect from each sector of business.
Mr. Pickles:
At a recent meeting of the Select Committee on Environment, Transport and Regional Affairs, the Minister explored the possibility of fiscal incentives for companies. Does he agree with the general principle that any shift towards green taxation should be neutral, and that it should not increase the general burden of taxation?
Mr. Meacher:
My right hon. Friend the Chancellor of the Exchequer has already said in his first Budget that he will pay particular attention to the issues of quarrying, water pollution charges and the landfill tax, which was introduced by the last Government at a low level. I cannot give the hon. Gentleman any commitment that an increase in green taxes would automatically be offset, but I believe that there is a case--as there was in regard to the landfill tax--for giving companies an incentive by enabling them to make contributions to environmentally sensitive alternative objectives. That is a good model, and one that we will follow closely.
Mrs. Anne Campbell:
Will my right hon. Friend join me in applauding the successful efforts of small firms such as Cambridge Econometrics and the World Conservation Monitoring Centre--both of which are in my constituency--to persuade employees to walk and cycle to work rather than using their cars?
Mr. Meacher:
That is extremely desirable. I was asked earlier whether Ministers would participate and give a lead. I think that everyone who is in a public position should try to give a lead, and one of the best ways of reducing greenhouse gases and carbon dioxide emissions--especially in the context of transport--is not just driving vehicles that are cleaner or more fuel-efficient, but using cars less: walking more, cycling more or using public transport. All of us, without exception, should be doing that.
Mr. Beggs:
Will the Minister consult a small company in my constituency called Environmental Engineering Concepts? Will he also consult the local council and the education and library board? They have produced a product which, when added to fossil fuels, causes almost complete combustion, reduced emissions and greater efficiency, and also pays for itself. It is so good that it has not been taken seriously. The last Government had an opportunity to examine the product, but I heard no more about it. I appeal to the Minister to follow the project through.
Mr. Meacher:
I would be extremely interested if the hon. Gentleman would send me details of that project. It is exactly the kind of initiative and breakthrough that
6. Mr. Viggers:
When he next plans to meet representatives of the Local Government Association to discuss local government finance. [14846]
The Minister for Local Government and Housing (Ms Hilary Armstrong):
My right hon. Friend the Secretary of State has already met the association a number of times to discuss local government finance, and I shall be seeing it again in December at a sub-group meeting of the central-local partnership to discuss the review of local government finance. We intend to meet the association regularly, and to involve it fully in taking forward policies that affect local government.
Mr. Viggers:
Did the Local Government Association, at its meeting with the Minister, repeat its estimate that local authorities will be about £1 billion short of funding this year? That shortfall does not take account of either the extra burdens put on local authorities for crime prevention and education, or the change in the Budget to advance corporation tax, which imposes a pension tax liability on local authorities estimated at £300 million a year. What will be the Government's attitude? Will they recompense local authorities for those extra burdens, or will they stand aside and watch what must inevitably be an extremely large rise in council tax rates this year?
Ms Armstrong:
In the Budget, my right hon. Friend the Chancellor announced a further £1 billion for local government to spend on education. If the hon. Gentleman cares to wait until the week beginning 1 December, he will hear how that money has been allocated.
We are discussing pensions with the Local Government Association, but it knows as well as we do that that measure will have no impact on local government in 1998-99. The association is seeking a revaluation, and wants to work with us on that.
Mr. Bill O'Brien:
Does my hon. Friend accept that Labour Members realise that she inherited a difficult task from the previous Government? Metropolitan authorities outside London face substantial difficulties because of the previous Government's attitude to them. When she allocates resources for the coming financial year, will she give careful consideration to the representations that have been made by the Special Interest Group of Metropolitan Authorities, which represents metropolitan authorities outside London?
Ms Armstrong:
I have received representations from a number of organisations and representatives of local government. They have all put a telling and pressing case to us. I assure my hon. Friend that we have listened to the points raised, and that we shall take them into consideration. We made a commitment in our manifesto to a fairer settlement this year. Hon. Members will be able to judge for themselves in the week beginning 1 December.
Mr. Burstow:
Before the Minister next meets the Local Government Association, will she and the Secretary of
Ms Armstrong:
We shall endeavour to make what is an exceptionally complex system as straightforward as possible. We are also conducting a review of local government finance generally. We want to enable the ordinary council tax payer to understand the system. That is a difficult task, given the complexity of the system that we inherited, but it is one of our aims. I look forward to the hon. Gentleman and his colleagues assisting us in that process.
Mr. Skinner:
Is my hon. Friend aware that the election result on 1 May gave her and every Labour Minister the power to do something different? We had massive victories in parts of the country where we never expected them because people were aware of the distribution of money to local authorities, such as the fiddles for Westminster council and the paltry decisions for Labour-controlled authorities. Now that we have the power, and we are not a party of protest, let us ensure that we change those priorities, and that we also get rid of rate capping.
Ms Armstrong:
You, Madam Speaker, would not want me to reveal precisely how we have sought to make the system fairer. That will be revealed in time, and I trust that my hon. Friend will note that we have heeded our manifesto and have sought to ensure that the distribution of money is fairer than ever it was under the previous Administration.
Sir Norman Fowler:
Will the Minister reconsider the answer that she has just given on pensions? Is she not entirely wrong to say that the pensions tax will have no impact on local authorities? That is what she just said, but what she means is that there will be no actuarial review until 1998. However, the impact of the pensions tax has effect now--it starts now and goes on next year and the year after. Will she reconsider her reply?
Ms Armstrong:
The impact of the changes in the Budget will not have effect in local government in the coming year. We have agreed the way forward with local government and the Local Government Association, and they are perfectly happy with what has been suggested. They know that there is going to be a review of the actuarial position over the next year, and we have said that we will take it into account when deciding next year's settlement.
Mr. Watts:
In view of the Deputy Prime Minister's having said that he wanted to help coal mining areas, can we expect any improvement in the standard spending assessments for those areas, bearing in mind the fact that some of them have the worst SSAs in the country?
Ms Armstrong:
I must ask my hon. Friend to wait until he sees the settlement. We have made it absolutely clear that this is a very difficult year for local government
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