Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Questions 1 - 19)

THURSDAY 21 OCTOBER 1999

MS SUE COLLINS AND MR RICHARD LEAFE

Chairman

  1. Good morning to you both, and welcome to the Committee. Ms Collins, you are the Policy Director, I think, of English Nature, and Mr Leafe you are the Manager of the External Relations Team; now does that mean external relations to the rest of us?
  (Mr Leafe) It means to everything, and it includes Europe and the Commission, yes.

  2. But us, as well, Parliament?
  (Mr Leafe) You, as well, absolutely, yes.

  3. Right; you cover the world?
  (Mr Leafe) And we have a Parliamentary Liaison Officer specifically to deal with Parliament, as part of the team.
  (Ms Collins) Richard also has responsibility for the European Project, so he reports to me on those issues.

  4. Right, good; well, we are very glad to welcome you. Is there anything you would like to say in addition to what you have already set out, very kindly, in your memorandum to us, before we kick off?
  (Ms Collins) Thank you, Chairman. I would just like to emphasise that English Nature regards this as a very important time, and one where the European Union could take a path that will really change what happens on the ground, or it could choose to smother change with rhetoric, and we want to see real change.

  Chairman: Smother change with rhetoric; it is a good phrase. There is a lot of that goes on in the environmental world. Thank you very much indeed.

Mr Shaw

  5. Good morning. The Helsinki Summit; there are opportunities there, perhaps, not to do as you suggested, and the Finnish Presidency has declared that they want to see the environment central to their Presidency, and the Commission "are looking to a new millennium". What do you think that the Helsinki Summit can achieve, and then perhaps you can follow on by answering how likely is it that there is going to be real progress?
  (Ms Collins) I think the Helsinki Summit could decide to go for an EU sustainable development strategy at an overarching level, led creatively by Mr Prodi and heads of government, because I think that is where it needs to lie, and I think they could also resolve to have a strong environmental strand to that strategy in a new Sixth Environmental Action Programme which has goals and timetables that are very firmly linked in to a sustainable development strategy. I think we need political will by Ministers of Agriculture, Fisheries, Trade, particularly to stop doing `business as usual' and confront the challenges that environmental integration offers.

  6. Can you give some examples?
  (Ms Collins) Certainly. The agriculture debate has been one we have taken a very close interest in, and we have offered considerable technical and policy-related advice to both the UK Government and to the European Commission, both as English Nature and in collaboration with other European Environmental Advisory Councils. And the current configuration of the CAP is a collection of perverse subsidies that are not justified, in terms of the public goods they buy; there is a need to redirect a high proportion, or at least a third, of the subsidies to explicitly-linked agri-environment schemes in the countryside. The decisions at the Berlin Summit will have perverse effects, because the budget decisions destroy the logic of the second pillar of the CAP by starving it of resources. The EU is going to argue, in the trade talks, that the Agenda 2000 settlement will achieve environmental goals; at the current level of funding for agri-environment schemes across Europe, that will not happen. There is no compulsory cross-compliance, so those production subsidies will continue until 2006, stimulating environmental damage, and that requires political will to confront.

  7. You do not sound very optimistic. Is the Summit the key opportunity, if we miss this then we are just going to continue on the road to ruin?
  (Ms Collins) No, not at all. I think that we need the Summit to take it seriously, and the British Government has been taking environmental integration seriously for at least five years and we still have not achieved the results for the environment we need. So we know it is a very long, slow and complex process, and, I said at the beginning, I regard the integration process that the EU has embarked on as a very important and essential one. I would like to see it go deeper and faster. I support the process that is set in train.
  (Mr Leafe) You asked what the chances of success were. I think it is worth pointing out that the situation really has never been better for promoting sustainable development. For a start, we have a Treaty obligation, in Amsterdam, to put SD at the heart of environmental policies; we have a new Commission that has said this is a very important plank in their policy, indeed, the President and the new Environment Commissioner have both made it a priority of their own personal agendas. And we have also got a sort of a process of conversion coming together, in that the Fifth Environmental Action Programme has come to an end, they have produced the Global Assessment, which has said, in its output, that a new sustainable development strategy is now needed, and there are things like the Rio+10 Conference coming up, which is going to focus attention. And there is going to be a need for the Commission to demonstrate that they have done something along those lines, and put all those things together, the completion of the Cardiff integration process being an important one, and I think you have got the ground rules, the basis, for achieving something really significant here.

  8. It is always pleasing to hear that the environment person is interested and keen to see the environment flourish; but do you think it will be a watershed or just a stepping-stone?
  (Ms Collins) It could be a watershed.

Mr Gerrard

  9. In your paper and you said again now that you think that you ought to be seeing production of a strategy for sustainable development as an important function, an overarching strategy; how far do you think that ought to be based around sustainable development indicators, and if it is going to be indicator-based who should be developing those indicators?
  (Ms Collins) I think indicators have to form an important element of the strategy and I think there have to be linked goals and targets. I think there is a lot of work around on indicators, as we have suggested, and the UK Government's work is quite seminal on that. The UK Sustainable Development headline indicator set plus the detailed indicators do cover a lot of very relevant ground and they do include a biodiversity indicator in the bird indicator, and we firmly believe that biodiversity is a key test of sustainable development; so we would support an indicator-based approach. But also it needs to have a strong focus of impact assessment linked to that, because we need to diagnose what is wrong and then find the package of instruments that will change the economic signals to farmers and others so that they will change their behaviour over time.

  10. If something is going to develop at Helsinki, alright, the UK has done some work but that is not the case right across Europe, how far do you think we should try to develop indicators at Helsinki, what should the scope be, do we need to focus fairly narrowly on trying to get some headline indicators rather than get bogged down in detail?
  (Ms Collins) I think the framework for indicators is very important and I think that headline indicators would be a good start, provided they covered the right set, but they are not a substitute for a properly constituted broader set of indicators; but, over time, we have got to walk before we can run.

  11. What would you see as the right set, just in more general terms?
  (Ms Collins) From an environmental perspective, something that recognised the irreplaceability of certain environmental assets is an important component of sustainable development, I do not think we have got it quite right in the UK strategy yet. I think something on wildlife is important, biodiversity indicators. I think water, air and soil quality are very important. And then we come to some social indicators, on which we are not experts, of course, and some economic indicators. But the trick is that there has to be an integrated set, and we have to find ways of looking for solutions in terms of growth which respects the environment. So these are not indicators to be traded off against each other, and that is quite a challenge, intellectually.

  12. If indicators are developed at EU level, who should be responsible for monitoring, reporting on progress, how should that be done?
  (Ms Collins) I think, the expert sectors. Obviously, the European Environment Agency has an expertise in relation to environmental indicators. I think the responsibility should lie with a sustainable development unit in Mr Prodi's office to review the indicator, the results.

  13. So you would set up a new unit specifically to do that?
  (Ms Collins) I would; to oversee it, yes.

  14. How would you see an EU sustainable development strategy linking with strategies in Member States?
  (Mr Leafe) I think it is important that decision-making is integrated across all levels; in fact, starting at a global one then a European level and then a national level, and then, below that, at a regional level, so there should be some synergy of approach between them. They need to include elements like a lot of cross-sectoral working, so, within the Commission, for instance, regular meetings of Environment, Agriculture and Trade Commissioners and their Directorates, to be mirrored with a similar institutional structure in the UK or in other Member States. And, unless you get that flow through and some kind of similarity in terms of the indicators that people are working on, I think you will not feel the full force of a strategy; so there needs to be complementarity at those three different levels.
  (Ms Collins) I would say that they need to nest, in some way, and the EU needs to take a holistic approach across the whole of sustainable development in its strategic thinking, so looking at economic, social and environmental goals, and it needs to apply the principles of sustainability, like the prevention principle, precautionary principle, transparency, those principles need to be enshrined in its strategy. But, obviously, it must go for most detail on the areas in which it is competent, so I would single out agriculture and fisheries as touchstones, and trade, as touchstones where it actually needs to make sure that the decision-making process and decisions made at the EU level are more sustainable. So it does not want to duplicate everything that is the responsibility of Member States, as it will be completely rejected.

  15. You have mentioned the possibility of a unit specifically set up for monitoring, for developing policy; can you see any other institutional changes that would be needed within the EU, whether it is Commission, Parliaments?
  (Ms Collins) At the Commission level, I think an SD unit should be set up and it should have some environmental expertise, it is very important that it is located in Mr Prodi's office. I think all Directorates General should take advice from experts on environmental issues and subject new and old programmes and policies to environmental assessment. We think that to deliver programmes like the agri-environment programme there should be a joint DGXI/DGVI unit set up to oversee that; and the same would apply in some other policy areas. And more openness and transparency in decision-making would be valuable at the EU level. At the Parliament level, I think they should set up an environmental audit committee, as I said in our evidence; it is cross-cutting, it is cross-sectoral, it can challenge and it has got a focus. The worry I have about the latest UK strategy is that bringing in economic and social dimensions and sort of spraying indicators all over the place will actually miss the point, that to be environmentally sustainable there are certain trade-offs that you cannot do, some environmental assets are irreplaceable, and there is a risk that a proliferation—it is a bit like rhetoric—will obscure the real things that need to change. We also think DGXI needs to be stronger and it needs to implement environmental legislation, not only through infracting Member States but also through ensuring that EU policy decisions are truly environmental, and that is not deep enough yet.
  (Mr Leafe) And there are some more subtle things in here, as well, about the ability of the Commission to focus more on outputs rather than processes; there is the question, at the moment, over whether the attention to auditing and the need for probity and careful accounting is actually stifling innovation, and there are things about better joined-up Commission working, as I have already mentioned, between the different Directorates General. Also, I think there are issues around the calibre of staff that are employed in the Commission to deal with some of these things, and I understand Mr Kinnock is coming forward with some proposals to make sure that the brightest and the best are recruited by the Commission to deal with some of these tricky tasks. And I think the Commission also needs the confidence to really plan ahead longer than a one- or two-year window, to make the most out of these what are very long-term issues.
  (Ms Collins) On the Council of Ministers, we think there should be more Joint Councils to encourage joined-up working. The heads of government scrutiny is very important, and I think that they should consider reports from an environmental audit committee of the Parliament, if one were set up. I think the European Environment Agency should be allowed to give advice on policies affecting the environment as well as reporting on the state of it.

  16. If you have Joint Councils, joint working parties between Directorates, is not there a danger you are just going to have a proliferation of meetings, and that what you want is someone central in the Commission who has really got some clout on this?
  (Ms Collins) Clout counts, yes, money, power and decision-making clout, definitely, is important, but it needs to be underpinned by excellent policy analysis, and excellent policy analysis that takes place in a very vertical and bounded space is not going to deliver sustainable development.

Chairman

  17. But is not there, nonetheless, a danger that, in concentrating on getting the right framework for sustainable development, which, as you say, includes economic and social matters and which will, inevitably, to some extent, trade off against environmental matters, you may lose, as you yourself were saying, Ms Collins, some of the hard-edged, untradeable, environmental priorities which a more isolated policy, if I can put it like that, would have?
  (Ms Collins) If there is a weak model of sustainable development that is pursued at the Prodi level then that is the consequence, yes. If the courage were there and the political will were there to promote a stronger model of sustainable development which recognised the importance of environmental limits as one of its strands, and the importance of environmental goals, and there is scope for environmental recovery, then it could be a powerful force for change.

  18. Would you think the Court of Auditors, which is an existing body inside the European Union, could have a role on environmental matters?
  (Ms Collins) If its expertise were expanded, yes; as the NAO here has a role, and it is a question of expertise, I think. Policy appraisal is not the same as audit, in the financial sense, but environmental audit is very important, and, some of the same disciplines are relevant. We have mentioned probity, and so on, earlier, we are very seized of the fact that European money must be properly spent, but there is a balance to be struck between this and avoiding the stifling innovation.

  19. It is just that I think that, in this area, the European Union is a complicated enough organisation and a bureaucratic enough organisation as it is, because, as Mr Gerrard was saying, there is a danger of this whole thing being enveloped in process and some of that sharpness being lost?
  (Ms Collins) There is, yes; that is why I attach importance to a Sixth Environmental Action Programme as a strand of an integrated SD strategy, with clear goals and timetables, and the Finnish paper on agriculture does start to make a move in that direction, it talks about milestones.

  Chairman: Dr Iddon, you wanted to come onto Treaty changes.


 
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