House of Commons - Environment, Food and Rural Affairs

Select Committee on Environment, Food and Rural Affairs Fifteenth Report

5 Public service agreement targets

27. A large part of the Departmental Report is devoted to reports of progress made in relation to the Department's public service agreement (PSA) targets. Consequently we devoted a significant proportion of our questioning to such matters. Defra has ten PSA targets agreed in the 2002 spending review. We asked the Department about all of them, but we focus here only on those of most concern or interest.

Climate change

28. The Departmental Report records that there has been slippage against PSA target 2 (2002), which relates to the reduction of greenhouse gas emissions. In particular, although the Department is on course to achieve a reduction of greenhouse gas emissions by 12.5% compared to 1990 levels (in 2002 they were already 14.9% below such levels), it is not on course to achieve a reduction in carbon dioxide emissions of 20% by 2010. In 2002 such emissions were only 8.7% below 1990 levels.[55] The report says that there will be a review of the climate change programme in 2004-05, "which will provide an opportunity to strengthen existing policies or introduce new ones if the conclusion is that more needs to be done to keep us on track towards the domestic carbon dioxide goal".[56]

29. The permanent secretary explained why the Department was not on track to meet its target. He said that "emissions from coal-fired generation [are] higher than previously expected, and there has been higher than previously expected Great Britain growth and shortfalls from carbon savings from transport".[57] The permanent secretary said that the Government's national allocation plan for the European Union emissions trading scheme would in part address the problem, and repeated that the review of the climate change programme would also contribute. We recommend that the forthcoming review of the climate change programme should ensure that Defra retains primary responsibility for responding to climate change, but that other departments—including the Department for Transport and the Treasury, as well as the Department of Trade and Industry—firmly re-commit themselves to reducing all emissions of greenhouse gases. We strongly recommend that the review does not reduce the target for carbon dioxide emissions in Defra's existing PSA target. In addition, we recommend that Defra looks for additional mechanisms which could be introduced in future to meet the Government's carbon dioxide targets.

30. We have already announced that we will undertake an inquiry into climate change later this year.[58]

Sites of special scientific interest and farmland birds

31. PSA target 3 (2002) relates to natural heritage. It proposes as a measure of biodiversity a reversal in the decline in number of farmland birds by 2020, and repeats an earlier PSA target of bringing 95% of sites of special scientific interest (SSSIs) into favourable condition by 2010.[59] Although the report speaks favourably of progress in these areas, the fact remains that numbers of birds of farmland species continues to fall (and is at 60% of 1970 levels), and that only 62.9% of SSSIs were in favourable condition at the end of March 2004.[60]

32. In our report on the Departmental Report 2002 we expressed considerable concern that only 56% of SSSIs were in a favourable condition, a smaller proportion than in 2000.[61] In his evidence to this inquiry the permanent secretary said that he hoped that our report would reflect the progress made more recently.[62] But he conceded that the target was "challenging"[63] and that, although the Department and English Nature had set a target of 67% being in a favourable condition by spring 2005, "we have not yet done the analysis of what we call the trajectories to get from 67% to the 95%".[64]

33. We have recently concluded an inquiry specifically looking at SSSIs.[65] In it we have expressed concern that the PSA target will not be met unless a number of significant steps are taken. We urge the Government not to be complacent about meeting the target.[66] We recommend that in the next Departmental Report the Department set out exactly the 'trajectory' it will follow towards the target of bringing 95% of SSSI sites into favourable condition by 2010.

Rural affairs

34. PSA target 4 (2002) is to "reduce the gap in productivity between the least well-performing quartile of rural areas and the English median by 2006, and improve the accessibility of services for rural people".[67] The PSA target identifies five key services, and targets "improvements in their accessibility", namely: health, post 16-year-old education and skills, transport, access to cash and electronic access to services.[68] Progress against the target has not yet been assessed, but the Departmental Report accepts that it is "challenging". To meet it will require action by government offices, regional development agencies, local authorities, other government departments and many others.[69]

35. The permanent secretary referred to the rural delivery review conducted by Lord Haskins.[70] Sir Brian described Lord Haskins' review as concluding that "there is a plethora of different funding streams provided by Defra, which the Haskins analysis compellingly said … was pretty confusing for the business or individual in a rural area, [and] needed to be simplified".[71] This "plethora" of funding schemes is illustrated by the different sources of funding available to achieve the PSA target, which are set out in the Departmental Report:

£10 million over two years "towards these ends"
£0.3 million a year to support the rural stress action plan
"substantial elements" of the Countryside Agency's budget of £110 million
an annual contribution of £41 million to the regional development agency single programme "to address improvements in rural productivity".[72]

36. It is not surprising that a review of rural funding streams is underway. Also being reviewed is the rural white paper,[73] with the aim of developing a 'refreshed' rural strategy.[74] We look forward to the outcome of the review of rural funding streams, and indeed to the overall Government plan for the implementation of the Haskins proposals which we assume will form part of the 'refreshed' rural strategy. We will maintain a close interest in these matters, which obviously have a highly significant part to play in the way in which Government seeks to encourage rural development.

Waste

37. PSA target 6 (2002) relates to waste. It sets a target of enabling 25% of household waste to be recycled or composted by 2005-06. The target takes up a PSA target set in the 2000 spending review, which was to enable 17% of household waste to be recycled or composted by 2004.[75] The Departmental Report claims that progress has been good, with 14.9% of municipal waste being recycled or composted in 2002-03, "suggesting that the 2003-04 public service agreement target of 17% will be achieved".[76] Nevertheless, the report acknowledges that the target of recycling or composting 25% of waste by 2005-06 target remains challenging.[77]

38. The permanent secretary said that he thought that the 25% target was "achievable".[78] He cited a number of schemes which would contribute, including "the waste improvement programme, the statutory targets, the increase in landfill tax, the onset soon of the landfill allowance trading scheme".[79] But given the change needed in only two years we are extremely doubtful that the target will in fact be met, and were surprised that the Departmental Report said that Defra was "on course" to achieve its goal.[80] Moreover, the PSA target is intended to complement European legislation, principally the Landfill Directive. Under the directive the United Kingdom is committed to further targets to reduce the landfill of biodegradable municipal waste in the coming years.

Table 3: Targets under the Landfill Directive[81]

[proportion of biodegradable municipal waste landfilled compared to 1995 amounts]

2010	2013	2020
75%	50%	35%

39. Meeting its targets for the disposal of waste will be one of the most significant challenges facing Defra in the years ahead. It is a matter which we will continue to scrutinise closely: we have recently announced an inquiry, to be conducted in autumn 2004, into waste policy and the Landfill Directive.[82] We urge Defra to take all steps necessary to ensure that its PSA target relating to waste is met. Again, it would not be acceptable to respond to a likely failure to meet the target by making the target less challenging. We will return to the subject of waste policy later in the year.

Fuel poverty

40. In our last report on the Departmental Report 2003 we observed that Defra was on track to meet its PSA target 7 (2002), to "reduce fuel poverty among vulnerable households by improving the energy efficiency of 600,000 homes between 2001 and 2004".[83] However, we noted that the target was flawed,[84] and lacked focus. It fell short of the underpinning commitment made in the UK fuel poverty strategy 2001 to end fuel poverty for vulnerable households by 2010.[85] Defra agreed that the target would be reviewed in the next spending review.

41. Again, in his evidence to this inquiry, the permanent secretary acknowledged that the existing PSA target was flawed.[86] He said "what we are looking for … is a target that addresses the requirement as [the Committee] described it a while ago: moving towards removing fuel-poor, vulnerable households by the year 2010".[87] In the spending review announced on 12 July 2004, Defra's PSA target 7 is to "eliminate fuel poverty in vulnerable households in England by 2010 in line with the Government's fuel poverty strategy objective".[88] We welcome the announcement made in the 2004 spending review of a PSA target relating to fuel poverty which is geared to ending the problem. We recommend that in its next Departmental Report Defra set out in detail the measures it will take to meet the new target.

Air quality

42. PSA target 8 (2002) relates to improving air quality by meeting national air quality strategy objectives for a number of pollutants. The target is shared with the Department for Transport. The Departmental Report records slippage against the target, primarily in relation to nitrogen dioxide (NO₂) and larger particles (PM₁₀).[89] The report says that modelling suggests that "with present policies and technologies it is questionable whether the targets will be achieved by the relevant dates".[90]

43. In response Defra and the Department for Transport "are considering what additional measures may be practicable to move towards closing the gap".[91] In 2004-05 the Departments are reviewing the air quality strategy, the 10 year plan for transport, and the climate change programme. The permanent secretary told us that "we need to do more to achieve the nitrogen dioxide, ozone and particles targets".[92] He pointed to a number of steps being taken:

local authorities have been asked to develop air quality action plans for local air quality hot spots ... local traffic management plans can play a powerful role
the Department for Transport [is] looking again over the summer at the 10 year plan [for transport] and air quality will have its role in that
at European level there are issues around reduction of vehicle emissions with future design and indeed combustion plan emissions.[93]

44. As ever we are concerned that any review of policies might lead the Government to be tempted to set lower, more achievable, targets, notwithstanding the permanent secretary's assurance that "I do not see any sign of anyone looking to relax the targets".[94] We recommend that the Department ensure that its PSA target relating to air quality is maintained at its existing challenging level. We look forward to the exposition in the next Departmental Report of what the Government will do to ensure that its air quality PSA target is achieved.

55 Departmental Report 2004, p 258 Back

56 Departmental Report 2004, p 258 Back

57 Q64 Back

58 "New inquiry into Climate Change: Looking forward", Environment, Food and Rural Affairs Committee press release, 17 June 2004; available at www.parliament.uk Back

59 Departmental Report 2004, p 258 Back

60 Departmental Report 2004, pp 63, 65, 258 Back

61 HC (2001-02) 969, para 28 Back

62 Q87 Back

63 A word often used by the permanent secretary, to indicate that the odds were against achieving a particular challenge or target with a published timetable. Back

64 Q87 Back

65 Environment, Food and Rural Affairs Committee, Fourteenth Report of 2003-04, Sites of Special Scientific Interest: Conserving the Jewels of England's Natural Heritage, HC 475 Back

66 HC (2003-04) 475, summary and para 9 Back