Select Committee on Environmental Audit Written Evidence


Memorandum submitted by the Environmental Services Association

1.The Environmental Services Association (ESA) is the UK's sectoral trade association for the waste and secondary resource management industry which annually contributes more than £5 billion to GDP.

1.MUNICIPAL WASTE: PROGRESS BUT NOT FAST ENOUGH
2.There has been progress on municipal waste. For example, working in partnership with ESA's Members, local authorities are recycling more waste than ever before and the amount of municipal waste landfilled fell in the last year for which there is data.

3.However the rate of progress still does not appear to be adequate to comply with required diversion of biodegradable municipal waste (BMW) from landfill. The UK has not caught up with comparable EU Member States in recovering value from the municipal waste stream.

4.The Environment, Food and Rural Affairs Select Committee stated recently, "we are extremely doubtful that the target (the 25% recycling target for 2005-06) will be met, and were surprised that the Departmental Report said that Defra was "on course" to achieve its goals' (The Department Annual Report 2004).

5.The Government has still not delivered a clear and precise legal framework, full funding of the municipal waste stream or an effective and efficient planning process. All are needed to deliver compliance with the Landfill Directive.

INADEQUATE LEGAL FRAMEWORK
Date

1999

Milestone
JulyLandfill Directive appears in the EU's Official Journal.
OctoberThe Government publishes its consultation entitled Limiting Landfill.
2001
AprilThe Government confirms that a system of tradable permits will be introduced in England to limit the amount of BMW landfilled.
2002
NovemberWaste and Emissions Trading Bill is published.
2003
29 AugustDEFRA launches a consultation on the Landfill Allowance Trading Scheme (LATS).

OctoberIn its reply to the EAC's report, Waste-an Audit, DEFRA states that LATS "ique in Europe and is evidence of the Government's commitment to changing the face of waste management and ultimately surpassing the requirements of EU Directives".
NovemberThe Waste and Emissions Trading Act receives Royal Assent.
NovemberDEFRA delays the introduction of LATS until 1 April 2005.
2004
MayDEFRA publishes the outcome of the consultation on LATS.
22 JulyThe Landfill (Scheme Year and Maximum Landfill Amount) Regulations 2004 come into force.
AugustDEFRA writes to local authorities informing them of their provisional landfill allowances. Final allowances are expected to be announced in November 2004.

6.The waste management industry is driven by regulation and a clear, precise legal framework is a pre-requisite for investment. As things currently stand, local authorities do not know how much BMW they will be allowed to landfill from 1 April 2005 or whether statutory recycling targets will be extended beyond 2005-06. One example of operational uncertainty is that local authorities and our Members are still awaiting official guidance as to the deemed level of treatment delivered by Mechanical and Biological Treatment Processes.Inadequate funding7.A Mori survey of 2002 showed that waste collection, management and recycling was seen as the most important service delivered by local authorities-well above schools and maintenance of roads-even though it accounts for only 1.5% of total expenditure by local authorities.8.The Local Government Association, the Policy Studies Institute, Ernst and Young and PriceWaterhouse Coopers all agree with ESA that more resources need to be invested in the management of the municipal waste stream.9.The UK spends only half what comparable European countries spend on municipal waste management and spending needs to get to £1 per person per week to achieve average European standards of performance.10.The 2004 Comprehensive Spending Settlement failed to deliver the necessary additional resource. In addition, the Gershon review missed an opportunity to reduce public spending as it could have recommended that funding for municipal waste management be taken out of public spending altogether.11.Variable charging may well be the long-term funding solution for management of the municipal waste stream. It applies the polluter pays principle and, properly structured, could deliver new infrastructure without any increase in public spending.12.However, at current stages of public awareness and to avoid a potential increase in fly-tipping, we see merit in an initial period of a flat rate direct charge which provides no perverse incentives. Subject to the caveat that the primary need is to get more money into waste management rather than to disburse funds, we also see merit in schemes which reward householders for achieving adequate levels of segregation.Poor planning performance13.According to the Environment Agency, 2,000 waste management facilities may be needed to comply with the Landfill Directive.14.However, the cost, delay and uncertainty of the current planning regime present ESA's Members with very considerable difficulty in funding and managing the construction of new facilities. In 2002-03 nearly half of "major" waste management applications took longer to be determined than the Government's target.15.The review of PPG10 presents the Government with an opportunity to improve the performance of the planning process. To contribute to this review, ESA published earlier this year Land-use Planning for Sustainable Waste Management. This report sets out in some detail how key land-use planning issues at national, regional and local levels can be addressed now to achieve more sustainable resource of uses.16.ESA's recommendations included:a.a national framework offering precise guidance on the interpretation and interaction of key planning principles, and setting out the waste management capacity required in 2010, 2013 and 2020;b.preparation of model policies; andc.promotion of environmental business planning zones.2.HAZARDOUS WASTE: A NATION UNPREPARED17.The table below shows the delays in providing a clear and precise legal framework.

DateMilestone
2002
DecemberThe Government establishes the hazardous waste forum.
DecemberWaste Acceptance Criteria appear in the EU's Official Journal.
2003
February1st meeting of the hazardous waste forum.
AprilENTEC's report for the Environment Agency warns that new capacity to treat 2 million tonnes of hazardous waste per year will be needed.
MayThe Environment Agency warns that the number of hazardous waste landfills in England and Wales will fall by 92% from 16 July 2004.
December12 months after the establishment of the hazardous waste forum and with less than seven months before the banning of co-disposal the Government publishes its "hazardous waste action plan".
2004
MarchEnviros warns the hazardous waste forum that 3.5 million tonnes per annum of treatment and disposal capacity is likely to be needed to manage hazardous wastes before 2005.
17 MayRegulations applying WAC to English and Welsh landfill sites are laid before Parliament.
15 JuneRegulations applying WAC start partially to come into force, one month before the end of co-disposal.
29 JuneThe Environment Agency warns that the costs for waste producers of disposing of hazardous waste will triple following the banning of co-disposal.
16 JulyCo-disposal is banned.
29 JulyThe Government launches a consultation on implementing the EU Hazardous Waste Directive: the deadline for transposition was 1 January 2002.
SeptemberThe Government publishes its interpretation of the Landfill (England and Wales) Regulations 2002 which had come into force more than two years before.


  18.  In a context where we believe defective implementation of EU law is now, for practical purposes, providing a permissive framework for criminal and dangerous disposal of hazardous waste streams, we do not believe the Government has taken anything like sufficient action to raise awareness within the legitimate business community of the legal duties businesses retain regarding the waste they produce and the risks that are run when such wastes are consigned to criminals.

  19.  There is some evidence that most businesses are unaware of their duties and the Federation of Small Business has recently commented,

    "Government"s failure to publish the regulations in good time and implement an effective and high profile information and awareness programme has resulted in an information vacuum for many small businesses". (ENDS, July 2004)

  20.  It is, for example, beyond the powers of ESA and our Members to ensure British business is fully informed of aspects of the new legal framework for hazardous waste such as reclassification of some waste streams as hazardous. ESA repeatedly urged the Government to launch a high profile media campaign aimed at business.

  21.  In the event, the Government's dedicated website on hazardous waste was only available immediately before the end of co-disposal and we are not aware of any evidence that it has perceptibly raised awareness of hazardous waste.

  22.  While the establishment of a hazardous waste forum was useful in bringing together partners to discuss and press key issues, it was never going to be sufficient-as we warned from the outset-to prepare for the banning of co-disposal.

b.  Where are we now

Certainties

  23.  The United Kingdom has a significantly diminished hazardous waste landfill capacity. Only six merchant hazardous waste landfill sites have received a permit to accept a wide range of hazardous wastes.

  24.  The present climate is not conducive to investment in infrastructure even though, for example, compared to sixteen high temperature incinerators in France, the UK has only three, one of which is mothballed, to treat hazardous waste.

Uncertainties

  25.  For a number of reasons, ESA has for some time pressed the authorities to obtain real-time data on relevant material and waste flows. This has not happened and, as a result, the Government and the Environment Agency still do not know precisely what has happened to hazardous waste streams formerly sent to co-disposal landfill sites.

  26.  Following the banning of liquid hazardous waste from landfill sites in 16 July 2002 our Members reported no significant increase in this type of waste being accepted into regulated treatment facilities. ESA and our Members do not know what has happened to this waste stream. There is now also mounting concern that solid hazardous waste seems to have been similarly "disappearing" since 16 July 2004.

  27.  Neither the Government nor the Environment Agency knows how much hazardous waste is being stockpiled by producers, disposed of illegally by criminals or being incorrectly classified by waste producers as non-hazardous.

  28.  Whilst we welcome fly-capture it has been operational for only a few months and does not automatically include fly-tipping on private land. In addition, no significant additional resources have been allocated by the Environment Agency to detect and prosecute criminal dumping of waste.

c.  Where do we need to go?

  29.  The banning of co-disposal was the first step in implementing the hazardous waste provisions of the Landfill Directive: the application of hazardous WAC in July 2005 is as significant for producers and managers of waste and is another deadline for which the Government is failing to prepare the Nation.

  30.  As noted above, WAC were confirmed only in the summer of this year. Our Members have been given a year to identify markets, raise finance, gain planning consents, obtain environmental permits, construct facilities and conduct appropriate testing before finally accepting and treating hazardous wastes.

  31.  Again, the conditions for prudent investment are not yet in place. The legal framework is still unclear. Our Members still do not know how the WAC for monotholic hazardous waste will be defined and the Hazardous Waste Regulations have still not been transposed into UK Law.

  32.  More generally, the culture of enforcement is still insufficiently strong to encourage investment. For example, the Grant in Aid budget from DEFRA to the Environment Agency, used to fund policing and enforcement of illegal waste activity, has been cut by £4 million for 2004-05 even though the implementation of more prescriptive EU environmental standards is so obviously bound, if inadequately policed, to increase criminal activity.

ESA RECOMMENDATIONS

    —  The Government must fund the development of a real-time data management system to track waste flows and, therefore, to identify and police criminal dumping of waste.

    —  The Government must promptly launch a substantial and effective awareness campaign to inform British business of its legal duties as producers of waste and of the implications of applying WAC from 16 July 2005.

4.  THE GOVERNMENT: CAN IT DELIVER ON WASTE?

  33.  The Government's performance on waste has been consistently criticised during this Parliament. A strategic waste authority would certainly not be the solution: its main practical effect would be to dilute the ability of Select Committees to hold Ministers to account.

  34.  Delivering progress on waste management requires political determination and coordination within the Government: compared to many other parts of the EU, the political commitment to become a world leader in recycling and recovery is still lacking and, as a result, the Country is continuing to lose economic and environmental opportunities

  35.  The Government, and this applies to each of the Treasury, DTI and DEFRA, needs properly making the economic case for environmental improvement and increased resource efficiency. It is likely that the price of commodities will tend to rise considerably during this Century. It would be prudent to secure better resource efficiency in the British economy sooner rather than later and this would also enable the UK to develop a more appropriate share of global markets in environmental services.

October 2004





 
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