Select Committee on Environmental Audit Minutes of Evidence


Examination of witnesses (Questions 400 - 428)

THURSDAY 23 APRIL 1998

MR JOHN BATTLEM MP and DR COLIN HICKS

  400.  What have they done?
  (Mr Battle)  I would hope that some have taken the document and are using it and working with it because they see it is in their interest to make money by doing that.

  401.  How are you going to check that?
  (Dr Hicks)  This particular programme which was set up jointly by the two Departments a few years ago, drawing on the lessons that had been learned within the Department of Energy originally and then in the Department of the Environment with the Energy Efficiency Best Practice Programme by taking all the good things from it that they had learned about, i.e. how to communicate with companies. It started four years ago and it had a budget then of £16 million which it was going to spend over five years. We set the programme contractors (it is managed for us by the Energy Technology Support Unit in Harwell) the target of monitoring the programme and showing that they would produce savings that were ten times the total government spend on the programme per annum within industry by 2005. Let me just repeat that because it is actually a very challenging target. We are spending £16 million of taxpayers' money over those five years. We wanted to show by 2005 that there are accumulated savings within industry of £160 million a year. That was a very challenging target. It meant that the projects that were selected had to be ones which were capable of producing significant savings. They had to be ones where there was clear evidence that companies were going to be willing to take up the projects. They had to be projects where there was going to be a replication across a large number of companies. We started off by saying we were going to address the real environmental issues. So we did not just go out and look for things that companies wanted to do, we consulted between the two Departments and with the Environment Agency and asked what the significant issues were in environmental terms. One of the early successful projects was one which was to do with the re-use of foundry sand. Historically foundries have largely taken virgin sand, they have used it and then they have thrown it away because it is contaminated. The programme identified best practice in the clean up of that sand so it could actually be re-used. That meant savings for the environment not only in the amount of sand that is taken out but the amount that goes to landfill and, of course, the road traffic that is produced. We have monitored very very carefully the savings from those projects. At the moment we are on the right road to producing the target savings. That is one particular example.

Mr Grieve

  402.  Can I just take you back a moment on this question of energy and renewable sources of energy? I do not want to get bogged down in wind farms. I have to declare an interest as a member of Country Guardians.
  (Mr Battle)  You are against them. You keep slagging me off in your newspaper.

  403.  What interests me more about this is the strategy because I think that is what this Committee has got to concern itself with. You have waxed eloquent about promoting renewable sources of energy. I appreciate your comments about energy efficiency because I think that is a real issue which can be addressed, but one is left slightly with the impression that when it comes to renewable sources of energy there is actually little that you can do about it. What are you trying to do about it? How are you coordinating that within the other government departments which go to make a sustainable environmental energy programme? How is this coming about? Is it going anywhere? Is there anything you have done in the last 12 months about this that you can identify as showing that the systems which we have been talking about are working?
  (Mr Battle)  Do you know about the NFFO programme?

  404.  No.
  (Mr Battle)  The NFFO programme was set up by the last government. It was something that was a good idea and it was an interventionist strategy. It was done in order to say we will give companies a grant when they build a wind farm or a power station using landfill gas and what that grant of contract does is when you get the technology right and generate energy from it we will guarantee that you can sell that energy into the energy buying system of power generation. Do not forget, these are all private companies out there generating energy. That system was set up. I renewed that and set up the Fifth NFFO round inviting people to tender for contracts in November, to extend the range and remit of that. We included, for example, offshore wave, which is another area that is not looked at. I have a little bit of a row with you on Country Guardians sometimes as you do not give me quite the fair hearing that I might ask for in the editorials. We may agree on offshore wind as environmentally obtrusive and that is a good thing, but we have to look at the whole range of technologies and how we support them. Some of those technologies are "nearer markets". Do not forget, the energy companies are buying energy from where they can. The energy forces and the rest of it are buying their energy from where it is cheapest. They get it on the hour to keep prices down. Wind is nearly at a price competitive rate now. I remember waste tips and having to then, as it were, make sure that they were properly vented because they were practically explosive and why, because the gas was coming off them. I remember in 1982 Barratts built some houses near them and the gas then seeped through all the workings underneath and blew it up. The question was then asked, why could not we use the gas, put it into pipes, send it to a turbine and generate heat to warm the whole estate? I did not mind whether it was private or council. It is possible technically and feasible and all the rest of it. They are doing it but about 20 years too late when most of the methane has been ventilated off and we have simply flared it off, which is a waste. I am interested in biomass. I went to see a scheme in Yorkshire where if we can get the Ministry of Agriculture and Fisheries and the common agricultural policy to change the rules on set aside—and they are working at doing that within Europe—then why cannot those lands be used to grow biomass? Those are short-term coppice crops. That is renewable coppicing. It simply comes through quickly. If you go and see the ARBRE project in Yorkshire you will see how it is being done.

  405.  All this is very interesting but, in fact, these are pinpricks in the whole issue of energy generation.
  (Mr Battle)  It would not be if we had had more effort into renewable energies in the last 20 years. I think we are a bit late. I have just changed 0.7 renewable energy to two per cent. within less than 12 months. It will reach five per cent. by the year 2000. I have set a clear target. The contracts are coming in. I am on target to reach ten per cent. That is a four or five per cent. increase and a faster growth rate than anywhere else in Europe that is not using hydro. I agree with you, we ought to get somewhere between panic and complacency, but I would hope we have got a programme that is putting in position the blocks to get us there.

 Joan Walley

  406.  I would like to move on a little bit in terms of the DTI and the way in which it is working to strengthen British business abroad and this whole issue of trade liberalisation. I am sure you are as aware as this Committee that the next meeting is coming up on 27/28 April, which is the meeting whereby the UK government is participating in the next round of negotiations at the OECD on the MAI. I just wonder how you feel this whole issue of the MAI fits in in terms of developing a strategic policy for sustainable development. I would like to ask you, first of all, what the UK government's position will be at that meeting on 27/28 April?
  (Mr Battle)  My colleague Lord Stanley Clinton-Davis is at a meeting in Paris today on this matter as part of the OECD background negotiations. It is a serious issue. It has been debated a number of times in Parliament and in Parliamentary Questions. The MAI is attempting to provide that broad multilateral framework for international investment that will provide high standards of liberalisation, investment regimes and all the rest of it. That regime ought not to prevent governments from regulating business and that means ensuring that there is an environmental dimension within that, in my view, and we ought not to see an MAI that prohibits that environmental dimension. I think our proposal for a review of the MAI's potential impact on the ability of governments to maintain regulations to protect the environment has already been accepted and Iam sure our representative will press for that to be the case at the meetings.

  407.  It is important that we get holistic action right across government departments and with Europe as well. When I was out in Europe I was told that it was not possible to formulate an environmental policy other than in respect of the lopping of rain forests. How can you build an acceptable environmental standard into the MAI if that is indeed the case? How is the Department actually auditing and bringing together targets to make sure that this is not going to compromise——
  (Mr Battle)  My colleagues go to that meeting with a common government position; it is not just the DTI departmental position.

  408.  Have you, as the Green Minister for the DTI, had any input in ensuring that our government's position is actually reflecting sustainable development concerns?
  (Mr Battle)  Yes. It is government policy, a seamless web, that the MAI should not undermine environmental policy and if we thought that it did, we would not sign it.

  409.  Has the Green Ministers' meeting actually discussed the MAI?
  (Mr Battle)  The Green Ministers' meeting that we had was before this issue hit the headlines, so, no, it was not on the agenda, but Green Ministers, i.e. those of us with an interest in green policy throughout, have been in regular communication and had exchanges of letters and policy notes between ministers and departments, but I have to say that this is a major policy item. I noticed in the transcripts of previous conversations that there is perhaps some confusion between the role of the Green Ministers' meeting and the Cabinet meeting on that. This is a matter that has been addressed at that higher level because it is a key strategic integration policy matter.

  410.  I would be very concerned if the Green Ministers' meeting was only discussing issues which "got into the headlines". I think what this Committee wants to do is to work with each government department to see how this whole issue can go through the Green Ministers' Committee and also the Cabinet Committee so that we are not fire fighting but we are actually at a precautionary level putting those policies through. What assurances can you give us that environmental sustainability is not going to be compromised by any commitments to decisions taken at the OECD meeting on 26 and 27 April?
  (Mr Battle)  The Government's objective is that the MAI should not undermine environmental policy and if we thought that it might then we would not sign it.

  411.  How will you be able to make that kind of——
  (Mr Battle)  I will ask Stanley Clinton-Davis when he comes back if he has signed it when he should not have done. I am not suggesting he will sign it, do not get me wrong.

Mr Dafis

  412.  I would like to ask you a few questions on environmental appraisal. I believe that the Directorates within the DTI are required to consider the environmental impact in all cases. If we look at the study carried out by KPMG on DTI policies, they found that one of the policy areas that considered selective regional assistance did not need to have any environmental consideration at all. I would like to ask you to comment on that first. Secondly, in the Nuclear Review they had restricted terms of reference with the Department of the Environment looking at the question of radioactive waste management. Could you tell us how these three study areas were selected for the KPMG examination of appraisal, who made the selection and on what basis was the selection made? Could you explain why regional selective assistance was regarded as not having an environmental dimension? Thirdly, how can it be right for the Nuclear Review to separate off the question of radioactive waste management from the DTI itself and give it to the Department of the Environment?
  (Mr Battle)  I have been in post a year. There was an election last May and the Nuclear Review was in 1993 and I was not responsible for putting it in position. I was asking those questions that you are asking now in Opposition. I was not party to giving KPMG the instructions and asking why they looked at these areas and not others. I am not in a clear position to answer that question. Perhaps I could ask Dr Colin Hicks on a neutral basis, if you like, without me starting an argument about politics, why he thinks things were done or not done, if he could give us a little bit of background as to why those areas were addressed. I know the guidance has now come out in the last few days from the Department of Environment, Transport and the Regions. We take that very very seriously and we need to push it through in all areas of policy within the Department, whether it is nuclear waste management that we are relating it to, whether it is regional selective assistance, whether it is the structural funds of the European Community or whether it is business links. It has to be applied within all areas.

  413.  So there is a clear intention to change practice?
  (Mr Battle)  Yes.
  (Dr Hicks)  I do not recall how the cases were selected to be studied by KPMG or for their appearance in the report. What I think was done was that people throughout the Department were actually asked what they did about environmental appraisal in the activities that they undertook and then that evidence was put forward so KPMG could decide what to look at. The example of regional selective assistance is an interesting one because, as you say, it says quite clearly in the report and in the summary that "the environmental impact of any project will be covered by the normal process of local authority planning approval". One can then take a view as to whether that is adequate or not. What we have been doing over the past year is as new schemes are being reviewed and we are looking at the guidelines for schemes, we are considering the extent to which we should build environmental appraisal into the scheme itself. For example, we recently reviewed the SMART and SPUR schemes and we have set up a new SMART scheme and built into the criteria for projects is explicitly the environmental impact. So as schemes are being reviewed we are now building into their criteria. Another example to quote for you would be the Millennium Products Scheme where you will have seen quite clearly the Design Council's criteria have talked about sustainability and it has talked about environmental factors. I think the explanation is that the guidelines for regional selective assistance were being reviewed and the practices went back a long way and we are now reviewing, as the Minister has said, and going through different schemes and considering how and to what extent modifications should be made. Do not forget, whatever we do, there will still be a planning process. If we decide something is right to be done environmentally in our terms there are still these other interactions which have to be taken into account by DETR and other organisations, local authorities. The Environment Agency will always look at them.

  414.  Do you want to talk about the radioactive waste management issue that I mentioned?
  (Mr Battle)  The nuclear inspectorate has had a large role to play in that, of course.

  415.  Which is?
  (Mr Battle)  The independent inspectorate for the nuclear industry. There is an independent body that monitors the whole of these things and the Environmental Agency has a role to play in that as well. I would put it to you in these terms. Since the decision in terms of a long-term strategy for waste management on NIREX was taken at the end of the last administration, I simply put it as neutrally as this, a lot of work remains to be done on that whole matter in terms of the long-term future because there is no doubt that the management of radioactive waste is a massive challenge to any society that has generated power from nuclear energy and it is one that we have to address seriously, properly and come up with a clear and acceptable strategy on that our society as a whole and the world as a whole finds sustainable and acceptable. Those two words do not necessarily fit together. You could come forward with a sustainable solution that is unacceptable to people because they refuse to accept that that is a means of tackling it and that is a real problem because, whether it is in Germany or elsewhere, people will say it is not our problem, someone else should handle it, try and send it somewhere else.

  416.  Can I take you on to the question of public reporting because this is a very important issue indeed for this Committee in particular. Your Department is to devise its own sustainable development strategy and that will monitor a new approach to environmental appraisal, but it also says that the integration of environmental appraisal and wider policy appraisal does not lend itself to separate public reporting. The Department is not intending to report publicly on the outcome of the appraisal. Can you explain to us why that is the case? I think we might find that worrying. Would the Department find difficulty in publishing environmental appraisals as part of the announcement to introduce a policy or a programme because what time would be the appropriate time to announce what the environmental appraisal finds? Would it not be appropriate for the Department itself to do that rather than for it to be subsumed into an overall process?
  (Mr Battle)  If anything, I want the appraisal to be built into every policy area. I said at the beginning I am tempted to suggest that this might form that kind of appraisal in a way and it is not complete, I have taken it out because I would not have a book big enough to carry it to the meeting. Maybe we have buried it into each area and what has been asked is to pull it out into one volume or one approach. I do not know if that would be helpful. I am tempted to think maybe it would be in the light of this conversation because there are so many areas of policy, even ones we have not spoken about now, whether it is environmental impact assessments in the North Sea where we have done great work in bringing forward the environmental impacts assessments before time, where we are not spelling out what we are doing in sufficient detail and whether we could catalogue them in a way that is helpful and enables it to be focused as a dimension I will take away and consider in the light of what you are saying. At the moment what we are doing is embedding them in each of the different dimensions of each of the sectors within a department. Maybe that is not helpful and maybe we should pull them out individually.

Chairman

  417.  So you will reconsider the line you have taken?
  (Mr Battle)  Yes, I will reconsider it in the light of the comments that have been made.

Mr Dafis

  418.  There might be a freedom of information aspect to it.
  (Mr Battle)  Yes, that is absolutely right, I accept that. In dealing with the energy industries the slightest nuance in terms of reviews of industries affects the share prices of major companies in Britain and there is an economic or a commercial confidentiality dimension. I do suspect that we perhaps over-play commercial confidentiality within our culture in Britain and I think we could do rather more and encourage companies to be rather more open and transparent. I hope that you will feel I have been open and transparent and perhaps too forthright in this Committee, but I do not see why we should not push businesses to be as forthright as they possibly can, but we would have to clear our lines with them as the Department that deals directly with business.

Mr Savidge

  419.  You mentioned the environmental impact assessment in relation to offshore oil and gas. The actual Directive was brought in in 1985. Why have the UK regulations only been brought in recently?
  (Mr Battle)  Because the last lot did not bring them in and as soon as I got in I brought them forward and got them implemented. I do not want to start a political row about it, but I was a bit surprised to find that we had got them and they had not been implemented. I went to Aberdeen and I was surprised because I thought there may have been massive resistance by the oil industry and the companies and that the forces of hell would rain down on my head as a result of this nasty, wicked decision. That was not the response that we got from the industry. I passionately believe that we ought to allow these environmental concerns and considerations versus industry. I go round industries who are making a heck of an effort, who understand the connection, who are taking environmental matters seriously because it is efficient, it makes money for them and it is the right thing to do as well. I would have to say that within the oil industry I do not believe they are totally environmentally responsible. In fact, I take the opposite view, I think they are making a brave effort. In some areas the technique of re-injecting water into an oil well has benefits in our own towns and industries because they have looked at the chemical ways of doing it. There are some spin-offs if they take environmental matters seriously. We may push them to be more explicit about them. We may push them to have targets so that they can see that we are hitting clear objectives. We may exhort those that fail and do not believe it they can do it to follow the best examples. The amending Directive that I then looked at is not due to be brought in until next year. I brought it forward by a year. Again, I thought I would meet resistance by the industry; I did not.

Mr Savidge:  Can I strongly endorse what you said about responses from leaders and industry? I have been finding that recently with the offshore oil industry. Can I ask if there are other areas where there are European Directives on the environmental impact assessment which should be applied to industries or other types of projects in this country where we have not yet brought regulations in?

Chairman

  420.  Perhaps you could let us have a note on that.
  (Mr Battle)  When we look at what is coming from Europe, that is probably the source of our correspondence. Michael Meacher and I keep in close contact because he monitors exactly what comes out from Europe and then asks what are the implications from industry, whether it is the car industry, the shipbuilding industry, the steel industry, the engineering industry or, indeed, the oil and gas industry and then we look at the detail of how it will work. We want a partnership of acceptance to shift the culture. We want a bit of dynamism in there. We want some commitment in there and that means we do not want this idea that Europe has thought up a regulation, we will resist it. We are not in that business. We are in the business of bringing people together to shift the whole lot on. We can work together with the Department of Environment, Transport and the Regions to do that. The Advisory Committee on Business and the Environment which is reporting to the President of the Board of Trade and to the Deputy Prime Minister responsible for environment is a good body and there are business people on that. Then there are other bodies, whether it is the Competitiveness White Paper in DTI that we are working on where we include businessmen on it to inject this dimension. The cleaner vehicle task force is a good example where we are looking to say, "We cannot carry on simply fossil fuel burning in cars without improving our act." The pollution, whether it is particulates, nitrous oxide, sulphur emissions and all the rest of it, carbon dioxide emissions, we have got to tackle. We are looking at cleaner vehicles, whether it is gas or electric, looking to catalysis and the hydrogen future. It is important we take these seriously and look at means of turning them into best business practice and by that I mean commercial enterprises. I cannot for the life of me now see why every public vehicle cleaning the streets and collecting the rubbish cannot be run on a system that is gas or electric because they do not need to go 100 miles an hour and travel 200 miles.

Dr Iddon

  421.  This inquiry is about greening government. I think everyone round this table knows what we are about. Can I ask you whether in your Department adequate instructions have been given and sufficient training programmes have been set up to make sure that this concept of greening government goes throughout the Department?
  (Mr Battle)  That is a good question. I did not dwell on it in case I was accused of paying too much attention to housekeeping! There are 9,500 staff in the Department of Trade and Industry, 3,200 within the five main buildings in London immediately accessible. I think using the Environment Directorate to advise staff right across the Department, holding seminars and training for staff on sustainability, inviting experts in from outside, including people from Friends of the Earth and Greenpeace, to advise, to have the conversations, to get people to take it seriously, is a good thing. I do not want things such as recycling in office management, to give an in-house example, simply to be a tag on, an optional extra that we occasionally do. We have to build it into the system of operations so that it is second nature and you do not need to think to do it. That does mean training and working through with staff. It means having an environmental policy statement. We had one in June/July last year. It means using the intranet within the Department so things flash up on screens at staff and they are aware of it, pushing it to the forefront of their awareness, taking them through the steps so that they can then be ambassadors for best practice in the areas of interaction with industry/business, whether it is energy, science or wherever outside. That is a massive task. It is a massive culture task. I have got teenage children and occasionally I glance at their magazines and I am not of the view that all the youngsters are environmentally friendly and going down the environmental route. That was the view maybe ten years ago. They are not. They are going the other way. They think it is old hat and it is burnt out, it is a waste of time because there is conflict in the science about it, therefore we will throw the rubbish away. We are still moving in the direction of a throw away waste society. It is still a cultural change to affect through and that means changing the hearts and minds of people, having training programmes in position. We have a housekeeping guide for best practice within the Department that is sent to all the staff and it is put through on the computer systems as well.

  422.  Could I just follow that up and say that we need some forward thinking as well as politicians and officers. One example is space policy. People are getting more and more concerned now about the debris that we are planting in space as satellites expire and so on and so forth and conk out. Is Government looking that far forward to ask the question what are we going to do about recovery of some of this debris that we are planting in outer space?
  (Mr Battle)  If I thought that our Department was responsible not for the whole of Government but for outer space as well I would be struggling to get out of bed in the morning! I do not quite know what I am supposed to do. Am I supposed to go up and clear it up with a brush and shovel? It is a serious question and I tell you why, because we are responsible for the earth observation of satellites and the rest of it and that is happening now. I think Joan Walley mentioned telecoms and she talked about carbon logic. I think there is a very strong line for linking telecoms with the satellite technology and the debris in outer space and yes, it is a serious matter. I was once invited by a young man called Swampy, who came to a public meeting that I was addressing on science policy with his friends, to cancel science and ban it in Britain. I was a bit shocked at that rather bold approach. I said, "Why do you want me to ban science?" and he said, "Cause it is damaging the planet and ruining our lives." So I said, "What do you mean by this?" and he said, "Look at the smog in South East Asia. That is what is happening as a result of scientists and the people you support." I said, "Well, I have not been to South East Asia but I see the smog because I saw it on my television set and I see my television set because there is a satellite up there moving it across." He thought that was a bit abusive. He thought it was too forceful. So I simply said to him to think it through. The fire fighters tackled that fire because they could analyse it from an earth observation satellite and what I think about is not so much that in a sense what we send into outer space is not to look further out—yes, it is that and there is that science of physics and astronomy and the rest of it, but earth observation is vital to analysing what is going on down here on earth and changing it so that we monitor climate change, so that we monitor the interactions of what is going on particularly in the oceans. Yes, we have to be responsible and ask are we simply using the atmosphere as a dustbin and not making sure that we build systems that are sustainable and renewable when we send them out, and it is a fair question to ask of the British National Space Centre and the programmes we support through the European Space Agency as well. I would have to say to you, I have heard the question raised as you have raised it and perhaps we have not given sufficient attention to how we tackle it and I will take that away from the comments that you have made this morning.

Chairman

  423.  Minister, can I bring you down do earth.
  (Mr Battle)  What a cheap jibe!

  424.  Admirable though your views are, with respect, and illustrative though your talk about Swampy was, the fact is that large companies now are ahead of government in presenting in their annual reports clear expositions of what they are doing as regards environmental protection and sustainable environment to a degree, but the fact is that your own Department did not publish any performance indicators as regards its environmental work in the 1998 Environmental Report. So you are behind industry. Why?
  (Mr Battle)  I am disappointed by that fact. I will take action to remedy it in future. I say that because I think companies are ahead. BT won an award for their report on sustainable development in telecoms. You may dismiss it as a glossary, but there is some detail in it about targets and actions that have been taken and I think we ought to remedy that factor in our report as well.

Dr Iddon

  425.  Could I just ask about environmental management systems. Obviously you have given support for accreditation of environmental management systems in industry. What are your concerns about the value of those to your own Department?
  (Mr Battle)  BSI set up 14001 when it came up and it set up a claim from the Department to push it out to industry. The question then is whether it is applied and why it is not applied. In terms of the reporting chains and the rest of it, is it worth implementing it without it being an exorbitant cost? That is the question. Before my time the Department took advice as to whether we should apply for going through the accreditation and the advice that we got at the time was that it would be cost prohibitive to do it at that stage. It is under review and we are asking the question why not. I would like us to move in that direction and again lead by example, but there is obviously always going to be that factor of whether we are simply paper chasing for the sake of it to get the piece of paper or whether we are implementing best practice. I want to see action. I would like to suggest that when your Committee interview me again I should be able to say where things have moved on to, what has changed in housekeeping, and I do not apologise for that, as well as what we are pushing others to do and to bring back to you details of how we have made some small step changes but that we are getting there and moving on. Whether simply to register or to get the accreditation ISO 14001 is the only means of doing that I am not quite sure, but we are keeping it under review and it may well be that we apply.

Chairman

  426.  Thank you very much indeed, Minister.
  (Mr Battle)  Is that it?

  427.  That is it.
  (Mr Battle)  I have not talked about lots of things that I have come to inform you about that we are doing. I will be speaking at "Sustainable Technologies for a Cleaner World" sponsored by our Department on the 19th May, Chairman.

  428.  Minister, we do not wish in any way to constrain your eloquence, so if there is anything else which you feel you have not said, please send us a note. We will be delighted to receive it and take it into account.
  (Mr Battle)  Can I thank you for the questions this morning. I hope you did not find that I was answering back in too crudely political and robust a manner. I sincerely believe this is an important Committee. It has an important role to play so that departments and interdepartmental action actually takes place within government. I know in a sense you could argue that your committee is relatively new, starting in November. I feel that for all of us this is a relatively new process, but we need to do more than just talk about it and put in place the systems and methodology for taking action.

Chairman:  Thank you for what you said, Minister. We were impressed by your enthusiasm. We shall be casting a beady eye over whether or not in the next 12 months or so your enthusiasm is translated into performance.

  


 
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