Select Committee on Environmental Audit Minutes of Evidence


Examination of witnesses (Questions 40 - 59)

WEDNESDAY 28 JANUARY 1998

RT HON JOHN PRESCOTT, RT HON MICHAEL MEACHER AND MR JOHN ADAMS

Mr Grieve

  40.  Can I come back to your last comment about the government setting objectives and the local authorities, as agents, delivering? They are the ones who will have to take different decisions in a different context.
  (Mr Prescott)  We can help them deliver.

  41.  Of course. I just wanted to marry that up with the comment which came from Mr Meacher about, for instance, waste disposal. Here we have certain parameters set down for reducing the use of landfill sites, increasing recycling and with it, as a concomitant, probably increasing incinerators. Because of my background, I know a little bit about incineration and the problems associated with it, but also its potential advantages. I slightly detected the impression, from the answer we had earlier, that the government was rather relieved that it had pushed the targets back so that landfill could continue. Presumably therefore, the local authorities would have to be continuing to identify their landfill sites and get their planning permission for them?
  (Mr Prescott)  I do not think you should draw that conclusion about deferring targets.

  42.  At the same time, perhaps there is a slight reluctance over moving down the road of incineration. Is that not an area where, unless the government starts getting its objectives sorted out, it is going to be a bit hard on the local authority, having to make decisions, often very controversial decisions, about how they are going to approach a problem of that kind?
  (Mr Prescott)  Precisely. We all have a policy view about what the balance is between us. There is a raging debate going on. As you have already pointed out, there are environmental problems whichever way you go. Michael is very much involved in negotiations in Europe. It is equally as controversial there as it is here. Like you, I think you cannot rule out these problems. That is where the hard choices are and if we ask the local authorities to do something we have to be fair about where we stand on the argument. I shall certainly do that. It is the same with road traffic targets and with all things that the government sets. It is far better that it is a clear target and together we can implement it. That is what the new arrangement and partnership with local authorities which we are now developing is all about.

  43.  How long do you think it will be before, within your strategic review, on an issue like that, you can come up with conclusions as to how you are going to proceed?
  (Mr Prescott)  The problem itself is developing in such a way that it will have to be very quickly.
  (Mr Meacher)  Can I first of all pick up Mr Grieve's slightly curious misinterpretation of what I was actually saying?

  44.  I apologise.
  (Mr Meacher)  We entirely accept that incineration should be increased in this country. I think that is inevitable, but it is the size and cost to public authorities of an increase in incineration that we felt was extremely damaging. It was for that reason that we were seeking an extension of timescales. We want to move away from landfilling as fast as we can, but it has to be practical and feasible. To achieve the kind of targets which were originally in the draft Directive of the EU was frankly impractical for this country. That is the only reason that we were seeking an extension, not because we want local authorities to look for new sites and to extend the whole process. It is the minimum that we felt we could practically achieve. That was the purpose of it. I do not think there is any conflict.
  (Mr Prescott)  As a very good example, you can have an environmental objective which is a judgment between using these ways of disposal of waste. The economic argument that might be referred to is whether you can afford to do it. Again, that is a matter of how you treat the public finances and whether you are into private financing. There are different ways you can actually handle those matters if you can change some of the Treasury rulings in regard to investment in these areas. After all, the local authority has to pay a charge to dump; therefore, there is an income stream. An income stream allows you to be guaranteed over a period of time to provide a capital facility. That is an area where changes, if you like, in the public and private financing and the rules that apply can deal with that economic problem of resources, which a local authority itself cannot provide but, in paying for the waste disposal charges with an income stream guaranteed from local authorities, you can provide a capital facility. We have to look at new ways of doing things and we certainly are doing so.

Mr Baker

  45.  I was involved in a debate on the floor of the House which is why I was not here when you started. Can I ask the Secretary of State about the European perspective particularly, because what you want to do in your department is not simply governed by the Treasury but also by what happens in Europe. How do you intend to use your presidency to further environmental aims within Europe? Secondly, are you committed in principle to a carbon tax? If so, what is the position in Europe? How are you able to move that forward and the general move of taxation away from employment to pollution? Thirdly, what about these trans-European networks which it seems to me necessarily encourage road transport by providing a European subsidy to move cargoes from one point to another much more cheaply and therefore work against what I believe your policy is?
  (Mr Prescott)  I will just make an opening statement and Michael can complete it. The Prime Minister made clear that, in our presidency, we did want to make environment a major issue alongside jobs and crime. Indeed, some of those issues I was explaining to a meeting of prime ministers in Latvia last week. He made very clear there, as in his statement, that the areas we have identified are climate change—we have talked about some of the problems associated with that—air pollution and the biodiversity issue. We have even included the Fisheries Council where we can talk about the issue of high seas drift nets that we want to see phased out. We are also making it clear in the enlargement of the European Union, which comes under our presidency, that the environmental considerations are to the fore in those discussions about accession. Indeed, transport is absolutely critical. What I have done there—again, I think it is the first time in the European Community—is, for the first time where we normally have council meetings of the Community held in the host country, in this case Britain, to bring the two together. It will be held in Chester in April. The Transport and the Environment Councils, with the two commissioners, are being brought together to look at the joint implementation of policies to achieve environmental objectives, here in particular in regard to some of the transport matters. That is the overall framework. I think it is quite an ambitious environment for them. It is the one the Prime Minister spelled out. It is what we are doing now under our six months of presidency and I hope we will have some success in it. To be honest, you can always claim a lot more success than the six month period of time has allowed you, but at least if you can change the decision making process and try to get a greater focus in, particularly on Kyoto—again, Kyoto will be absolutely critical because we will be negotiating those legal targets. It is all right negotiating legal targets; the most important thing is the raft of policies that goes to achieve those targets. We already have a draft document from the Commission and we will be using that to support our analysis of the priorities that we set for environment. Kyoto gives us a very good way of establishing targets as something to be measured against. On the trans-European networks, that is a very important part. If you can come over the Pennines via Hull and go on to eastern Europe, it would be a very useful development in that area. The trans-European networks are crucial. Quite a lot of money comes into this. There is a lot of controversy at the moment about one of them. We will wait and see what is going to happen. We are very supportive of that. We think it is a very important part in the environmental development, bearing in mind the strictures we make about road and rail investment programmes.
  (Mr Meacher)  John did answer that pretty fully. With regard to the six key points, climate change is going to dominate the March and June Environment Councils. On the whole issue of transport and air quality, we are putting forward the first air quality daughter Directive under the framework Directive. There are the three other issues which he also referred to: biodiversity, where I think the UK has a good record, and where we want to see the kind of framework which we have established in this country extended throughout Europe; the whole issue of enlargement—in what timescale will the six acceding countries be expected to reach our environmental standards; and the whole question of fisheries which he referred to, drift nets and the impact that that should have for dolphins, for example. If I can just add one more point which we do think is very important and I think would interest this Committee, that is, having established the greening of Government as a major flagship policy of this government here in Westminster, we are also regarding the greening of Europe as a key target for our presidency in Brussels. There are four main mechanisms— I can think of some more ways—but these are, first of all, to ensure that, in the Environment Council itself, we will monitor the manner in which the Commission is carrying out an environmental appraisal across all the Commission Directorates, exactly what we are doing here in London. Secondly, we will be asking colleagues who chair other councils to ensure that environmental appraisal is properly carried out in those areas. They are very important areas for the environment, which I do not need to say, and for industry, agriculture and energy. Thirdly, I am not sure whether it is an innovation but it certainly has been done rarely before, bringing together environment and transport in a joint council, as John was saying, which I think is very important. It sends a very important signal. Fourthly, which perhaps is the most important thing of all, to ensure that at the Cardiff head of state council at the end of the presidency in June there is an item on the agenda—and the Commission will be producing a paper on this—on how environmental appraisal is integrated throughout the Commission's and the Council's work. That of course is an innovation which we are putting down. It is for other Member States following us, Austria and Germany, to decide if they take it up but I hope and believe that they will. We will be leaving a long term mark in terms of environmental objectives within Europe.

  46.  That is a very full answer but you did not actually deal with the carbon tax point. Can I also ask you to address what I believe is an inherent contradiction in European policy? The EU has been very good at bringing forward environmental legislation, better than we have been historically in the last 20 years, in my view. On the other hand, there is a belief, as I understand it, at the centre of Europe which is that, because of free trade and everything else, it is important to be able to transport goods as cheaply as possible, as far as possible within the European Union and beyond. Now of course we are seeing an extended European Union and I am concerned that, at a time when this Parliament is looking at road traffic reduction either by the Bill on Friday or by whatever means you come forward with in your White paper, we are going to see an increase in traffic movement in Europe because it is now becoming economical to move an empty pot from one end of Europe to the other, fill it with yoghurt and bring it back again. It seems to me that the whole way transport is costed in Europe is totally at odds with what you are trying to achieve and at odds with the European environmental agenda.
  (Mr Meacher)  If I could take the first of those points which is the carbon tax, in general, I think a great deal of environmental regulation, which is very effective both in the UK and elsewhere, does now originate in Brussels. It is subject to unanimous decision within the Council, although there are some elements which are agreed by qualified majority voting, that is true, but they are certainly matters which are having a strategic impact on a whole range of issues. With regard to the carbon tax, whilst recognising and agreeing the objective behind it, namely that we need to bear down on carbon emissions and that will be absolutely central to the consultative paper which we will put out on the post-Kyoto agenda on climate change in around the middle of the year, our view has been that there are disappointments with the carbon tax which have been hinted at earlier. One is the social distribution effect, the social equity impact. We have to be aware that whilst VAT on fuel, for example, can be a desirable environmental mechanism, it also has disadvantages in terms of its social impact. Secondly, there is low elasticity of demand when it comes to many of the items on which a carbon tax would fall and what we have therefore chosen is to find a variety of other ways of achieving the same objectives, as we will certainly be indicating in our consultative paper. On the Road Traffic Reduction Bill and your wider point with regard to traffic, again as John Prescott was saying, our concern is to ensure that our objective to see an intermodal shift away from road on to rail is one of the issues we shall be strongly pressing in the Transport Council. We strongly support the view which you expressed which is that there should be freedom of movement as rapidly and quickly as possible across Europe, but there are a variety of different ways of achieving that and a multiplication in the number of cars with all the environmental consequences that would bring is something that I think Europe is going to have to consider at our insistence. We are in support of the general principles of the Road Traffic Reduction Bill, as I think we shall be making clear. I think there has been agreement between the authors of the Bill and ourselves. I do not believe that there is a necessary conflict. I think it is possible to finesse both objectives, i.e. the greater freedom of movement and the freedom of travel, but in forms which are more environmentally sensitive.

Mr Robertson

  47.  I happen to agree that there are a number of contradictory policies coming from Europe. Can I ask something that was in your booklet Modernising Planning. You have spoken about the European context of everything but I do not think you mentioned planning because it actually says, "There needs to be a significant European dimension to our planning system." What does that mean exactly?
  (Mr Meacher)   It is a vexed question and you have put your finger on an issue on which there are different views, in particular the whole issue of the strategic environmental assessment (SEA) which certainly some of the non-governmental organisations are keen to pursue. Our view is not to disagree with the objective but to say that we already carry out SEAs. That is already something that is written into the government's system. Secondly, we are concerned that if you put a new and further layer into the consents system, a further stage which planned development had to pass through, you would be at risk of substantially extending what is already a very long drawn out planning process. For those reasons we have decided not to pursue this as one of the main aims of the British presidency. Frankly, the agenda is packed. It is a very ambitious agenda that we are putting forward for the Environmental Council, but we recognise that this is an issue on which people do have genuine differences of view and we are proposing (I do not think we have yet got agreement from Mrs Bjerregaard as the Commissioner ) that there should be a workshop, a conference or a seminar in Britain in the course of these six months to thrash it out, so that there could be a lengthy and public discussion of these issues and it would be for other Member States following us to take it up if they wished.

  48.  Your booklet on modernising the planning system that came out recently says, "We fully recognise that there needs to be a European dimension", but you seem to be saying you are not convinced that there does need to be.
  (Mr Meacher)   What I am saying is that we believe that that strategic environmental dimension is already there in the planning procedures. There are different views within Whitehall, but our general view is that that is not a priority. I accept that there is a case for extending it. I think my view would be that if you could give me some examples where there have been failures to carry out a strategic environmental assessment or a failure to implement it effectively then I think we would look at it again. I think this is a matter on which the Government has a relatively open mind.

Mr Savidge

  49.  I wonder if I could move the subject on to Green Ministers given your specific responsibility for Green Ministers. Could you give us your views on the relative seniority of the departmental Green Ministers? If it is the Secretaries of State is there not a risk that their environmental responsibilities will get swamped by their other concerns? On the other hand, if it is a Parliamentary Under Secretary of State in a very large department is there not a risk that they have too little departmental clout?
  (Mr Meacher)   The responsibility is absolutely clear, it lies with the Secretary of State in each department. They are the ones who are accountable and I imagine that they are the ones who you will be calling to account here if you feel any reason for dissatisfaction or for the clarification of policies. Secretaries of State cannot do everything within their own departments. I sometimes wonder, even with the very large team we have in DETR, whether we can know more than a fraction of what is going on, but hopefully we know the most important fraction of what is going on. Many of these matters have to be delegated. I think it is inevitable and right that that is delegated to junior ministers who then see themselves as having a prime responsibility in this area. I do not have the clout, I accept, as was said earlier, of the Deputy Prime Minister, but I do intend to use my influence to ensure that they are kept to their commitments. I have carried out 14 bilaterals with colleagues who are Green Ministers in other departments; I have got four still to go. That is less of a case for identifying specifics and saying, "I am going to call on you in a year's time and check that you have done it"; it is much more a case of trying to get people to think creatively about how they can ensure environmental thinking goes on in their departments. I cannot police other departments, but I have to say very honestly that I have had a lot of fruitful co-operation. There is a positive will amongst colleagues around Whitehall to ensure that this issue of environmental objectives is given the highest priority we can. Again, as John said earlier, I am not expecting that we will have difficulties or reluctance, but I certainly believe that where we can set targets we should. We will be monitoring those on a six- or 12-monthly basis and certainly wanting to know good explanations why they have not been achieved, if they have not. That is what we will be doing and I am sure you will also be deciding what you want to do as well.

Chairman

  50.  Following Mr Savidge's point about Green Ministers and their responsibilities, I was concerned to read paragraph 10 of the paper which you sent to the Committee which appears to have a certain amount of confusion as to who is responsible. It says, talking about Green Ministers: "Their main role is to ensure that appropriate systems are in place." It then says: "Responsibility for ensuring that the environment is fully taken into account in particular policy areas rests with the Minister who has policy oversight and who may not, of course, be the Green Minister."
  (Mr Meacher)  Correct.

  51.  What is the situation? Who is going to monitor? Or are the Green Ministers going to put the mechanisms into place in their departments?
  (Mr Meacher)   The responsibility lies with the Secretary of State.

  52.  The Secretary of State always has total responsibility for his department.
  (Mr Meacher)   He has responsibility for all areas within his department, including this particular area. Where he has delegated, as I think is almost always the case—although there is no reason why the Secretary of State should not attend a Green Ministers' meeting if he/she chose—it would then be for the Green Minister to achieve the objective which has been set by the Secretary of State and he/she will be accountable to his/her Secretary of State.

  53.  That appears to conflict with what is said here. What it says here is that the Minister with policy oversight will be responsible for the monitoring of the environmental policies, not the Green Minister.
  (Mr Meacher)   I accept that. I am not clear where the confusion lies. It is the Secretary of State who sets the policy objective. It is the Green Minister who is given the responsibility for ensuring that it is achieved.

  54.  No, not according to what you put down here. What it says here is that "the responsibility for ensuring that the environment is fully taken into account in a particular area of policy rests with the Minister with oversight of that policy area."
  (Mr Meacher)   Sorry, I think the confusion is that the setting of that environmental objective lies with the Secretary of State and it is the Secretary of State's responsibility ultimately to ensure that that is achievable. However, the responsibility of achieving that is delegated to the Green Minister. It is the Green Minister who therefore has to ensure that that is carried out and he/she will then be accountable to the Secretary of State.

  55.  He is the man who is responsible for monitoring the whole environmental sustainable development element within his department, not the minister who is responsible for a particular area.
  (Mr Meacher)   That is right.

Mrs Brinton

  56.  Could I take the questioning on to governmental funds. Is this Government satisfied with the level of advice and the type of advice provided by the previous government's advisory bodies, some of whom this Committee will have met, such as the Round Table and also the Government Panel? Are you going to stick with them or are you monitoring them as well, or are you going to add to them?
  (Mr Meacher)   All institutions are subject to review under the comprehensive spending review, including the two that you have mentioned. Our view is that they do a good job. I have a high regard for many of the reports that they have produced. They have a different function. It is the role of the panel to engage in forward or visionary thinking, to be looking in a visionary way at areas before perhaps more pedestrian governments actually get their minds round some of these issues and to point the way, whereas the Round Table on Sustainable Development's role (which has a much wider membership, the panel has only five people and the Round Table 30 or so, perhaps slightly less) is to ensure not only that they produce reports which look at specific areas of policy but to seek consensus in the implementation of those policies and to use the range of interests, business, NGOs, local authorities, academics, to look at ways in which they can advise how these policies will actually be implemented. We support them.

Dr Iddon

  57.  I think we have hammered out how the green policy is going to work within the departments, but my concern is to know how the general public and, in particular, this Committee who are auditing the work, are going to be provided with information which will allow us to do that. I mentioned earlier the Annual Reports and I hope those are going to be clear in terms of targets and indicators and the success or otherwise in meeting those targets and indicators but that is on an annual basis. During the year what evidence will be provided for us to allow us to monitor progress?
  (Mr Meacher)   I hope we will work with you on this. We are feeling our way as you are too and if you have your proposals we will certainly consider them very seriously. If there are additional programmes that you want monitored on a regular basis then, subject to the detail, I am sure that we would seek to do so. It is already our intention to ensure, as we have said comprehensively in the discussion we have already had, to establish targets wherever we can and indeed, to ensure that they are monitored. I think we are working together. If there are gaps in the programme or areas that you want strengthened, I am sure we would be happy to oblige if we can.

  58.  And you will provide us with the information on paper so that we can monitor the progress as time goes by?
  (Mr Meacher)   Yes.

Mr Truswell

  59.  A little while ago you used the term clout and I suppose my question is about the degree to which you are prepared to use that clout. I was hoping to get in a little earlier when the question of local government was raised. I am glad that you see the important role that local government has got to play, but I think it was the Audit Commission last year, when it looked at what local authorities were doing, who found something like two-thirds were making some palpable progress on addressing issues of stability but that one-third were not. When exhortation and consensus perhaps has failed how tough are you prepared to get in the final analysis to get some local authorities on board?
  (Mr Meacher)   Again as John said, although there may be some backsliders—out of a very large number of local authorities that is not entirely surprising—I do think the vast majority are only too willing to co-operate and when we publish "Opportunities for Change" on 4th February, which is our consultation paper on our strategy for sustainable development, there will certainly be sections in that which are relevant to local authorities and I would anticipate that they would be paying close attention to new procedures which are necessary in order to meet those objectives and to widen the areas of environmental appraisal which already take place. I accept your point that in the end there has to be means of enforcement. The point we are trying to make is that we are trying to achieve a culture change. We are not trying to bludgeon people over the head and force them to do things. We want them to accept what we are saying to them as sensible and desirable; it is widely discussed; it is a major government flagship programme and they have a responsibility and a role within it and we expect them to co-operate not just to the minimal degree to meet a target but wholeheartedly. I think that is the approach that we want to see, but that does not exclude certain key areas, for example the air quality objectives for 2005 which are going to be mandatory.[10] A local authority could be taken to court if it has not tried to meet those objectives. If there are hot spots which air quality management has not tried managed to reduce sufficiently in time then they could technically be taken to court. I hope we can avoid that, but there are final points of last resort beyond which they will not be able to go. What I want them to achieve is not just the objectives but to enter into the spirit of the policy and go a great deal further than what we in government are telling them to do.


10   Note by witness: Under Part IV of the Environment Act 1995, local authorities have a duty to undertake periodic reviews and assessments of air quality, and where prescribed air quality objectives are not likely to be achieved by the end of 2005, to declare air quality management areas and draw up action plans. Back


 
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