Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Questions 100-119)

CLLR MICHAEL HAINES, MR MIKE PEVERILL AND MR RICHARD HURFORD

12 JULY 2006

  Q100  Colin Challen: You would not necessarily welcome Government intervention? The Nottingham Declaration is still a declaration. It is a voluntary instrument, if you like.

  Cllr Haines: Yes, it is, but if we get national outcomes introduced then it is for local authorities to determine how they can reach them themselves using their own local methodology. So that is how it can be achieved.

  Q101  Colin Challen: Do you think that the issue of climate change has adequately percolated down to all local authorities, or is it still those where you might have key councillors or officers who are pushing the agenda?

  Mr Hurford: I am Richard Hurford from the London Borough of Lewisham. I look after energy and resources issues. There has been a lot of talk about the "Wilful Individuals" and I think all three of us are probably representative of the Wilful Individuals around the country. There are probably about 40 such officers and people who have been instrumental in pushing forward energy issues and climate change and sustainable energy issues within their own authorities. You asked earlier would it be better to have Government intervention. My view is that that would be useful if money was attached to it. As Michael has just mentioned, the LGA has been pushing to make it a statutory function because at the moment climate change is not a new issue, but it is a relatively new issue for local authorities to be looking at and so it has not the importance of housing, education, social services, planning or building control, and until you either have statutory targets or a statutory function you are not going to get that full buy-in from every local authority. Regardless of how much the LGA is a successful catalyst, you do need some type of statutory function and normally you would have some funding attached to that.

  Q102  Colin Challen: Between authorities, urban and rural authorities, the ones in the North or the South, do you think there are different, shall we say, capacities or other demographic issues which makes it easier for some to go further faster than others? Woking seemed to me to be an authority which was perhaps of the right size, the right kind of urban mix, fairly suburban. Perhaps it is easy for them, they are richer and they have a higher tax base, presumably, than a hard-pressed urban authority?

  Cllr Haines: I am not aware of any research which would actually support that or not. I would be inclined to agree with your statement, but I cannot back it up, as I am aware, with any data, I am afraid.

  Q103  Colin Challen: Is a survey likely to happen, doð ñyou think, following on The Nottingham Declaration process?

  Mr Peverill: A number of surveys have taken place, which have been undertaken by different organisations, and we would hope that that would continue to keep getting that sense of what is the state of play at a particular point in time. One of the things we hope, as the Declaration Development Group, to introduce for the signatories is an annual event to report on their achievements. That would in some ways be even better because you could elicit a greater quantity of better information.

  Q104  Colin Challen: Could I ask you about these "Wilful Individuals"? It sounds a bit like a criminal fraternity we are talking about! Are they forming themselves into any kind of association so that they can share good practice between themselves and try and develop a professional approach such as that which you have in many other areas of local government?

  Cllr Haines: Yes, they are. I am sure these gentlemen know of others in their localities, and indeed nationally, where groups of people of like mind have certainly exchanged views in the past. I attended the Nottingham conference back in December and knew a number of people there, so yes, inevitably that is the case. You talk about "Wilful Individuals" but there is a spectrum. I would not put myself on the extreme "Wilful Individual" range, but there are those who are completely not engaged at all and obviously most people are somewhere along that and it is a case of tying to shift people more into the more active "Wilful Individuals".

  Colin Challen: Thank you.

  Q105  Mr Stuart: Two questions, if I may, Chairman. Is there a danger that inaction on the part of the local authorities will be reinforced by the idea that the Government has to come along and not only tell authorities what to do but to provide them with the money to do it? The Woking example showed that long before, perhaps, Government had taken it to heart as much as it has now it was possible to self-fund and become a leaner, meaner and cost-saving authority whilst also green in its impact. That is point one. My second question is just on The Nottingham Declaration. To what extent have you been able to monitor the actual delivery of the local authorities of their commitment and whether they really are taking action, because there are countries which signed up to Kyoto whose progress against the targets they have accepted has been less than ideal and I am sure nobody wants to have political declarations which are unmatched by actions.

  Mr Peverill: I think I commented earlier that the monitoring of progress so far has not produced a huge amount of detail in evidence and we are very conscious of the need to improve upon that. The action pack we are about to launch actually does provide the means to monitor progress through a series of milestone measures, which look at things like developing an inventory, creating an action plan, getting senior management buy-in, and all those kinds of things. So in the near future we will be able to monitor all that kind of information much better and, we hope, things like practical outcomes such as reduced carbon emissions.

  Cllr Haines: Could I just follow on from that point and then come back to the first one? My own authority signed up to The Nottingham Declaration last December and we are now engaged with the Carbon Trust, together with Devon County Council to actually find out our carbon footprint as an authority and obviously go on from there. That sort of information will be available in due course and I understand that you will be looking at things thereafter, so that sort of information should be available to you.

  Mr Hurford: To follow on from that, Lewisham has also signed The Nottingham Declaration in the last year and a process is being put in place to ensure that there is annual monitoring and we do feed back through the scrutiny process on the progress which has been made.

  Mr Peverill: I think in the spirit of the Declaration being a public commitment, it is my view certainly that we should encourage all signatory councils to make this information public, to publish a web page on their own website about the progress which they have achieved so that the information is easily available.

  Cllr Haines: Returning to the first question, which was about whether the authorities will actually have to be made to do it, whereas some have actually gone ahead and done it, I think we are back to some extent to the "Wilful Individuals" and what we have got is that those places where it has been done will allow those who have got to catch up a much quicker learning curve to catch up. So yes, okay, there will need to be that national outcome which will drive the other authorities to do it, but then they have got all these examples to learn from so they should catch up quicker than would otherwise have been the case without the "Wilful Individuals".

  Q106  Mr Stuart: Is it absolutely necessary that money comes with this? Is it not possible from the Woking example to push responsibilities of local government on this major issue, that you could accept the statutory obligation without any cash attached to that?

  Mr Hurford: I do think it is worth mentioning that Woking was one of seven authorities with beacon status for sustainable energy. Lewisham was one of the others. I have been to Woking and Allan Jones and Ray Morgan—Ray Morgan is now Chief Executive of Woking but he was the Director of Finance who oversaw the whole process—and I think it is a fairly unusual example and other authorities have not been finding it easy to mimic the exact circumstances which Woking has managed to put in place. In London we are working with Allan Jones and the Climate Change Agency to unpick how, either as the whole of London or as individual London authorities, we can mimic what has put in place in Woking, but it has been difficult. It is when you get to the funding issue that—I will not say it becomes harder, but it is making the financial justification. For instance, if you put half a million pounds' worth of solar PV onto an old people's home (which they have done in Woking and it is very impressive, and I wish we had done the same ourselves) looking at the financial justification it is a long pay-back. They have developed the pot of money which they then used to spend on PV, but it is quite how you develop that pot of money and quite how you then develop an ESCO, which is the recommended approach. As I say, we are still in discussions with Allan Jones and we have also spoken to Ray Morgan about how we can do that, but I do not think people are quite clear yet. We can see how the technology works, but it is the funding and how you put the funding mechanisms in place to replicate Woking which is where I think most authorities have a problem.

  Q107  Mr Hurd: I just want to ask about the incentives for the "wilful" few. What is driving people to do this? Is this public good or is there a sense that there is money to be saved on energy in the long-term, or is it just because people think there might be some good PR attached to it? What is driving this? There is no money from the Government for it, is there?

  Mr Peverill: No, indeed not. I think it is a whole combination of things. Certainly the fact that climate change has never really been out of the media for the last 18 months or so is a very high profile issue, I would say largely in part thanks to the Government's international leadership on it. There is a sense that local government also needs to be reflecting that at the local level. We need to be seen to be community leaders and doing the right kinds of things. This is a fairly simple way of expressing that degree of leadership commitment. As has been said, it develops a bit of momentum. A significant number of councils have come on board. So it has a kind of brand, if you like, which people are keen to be associated with. I think there is increasing recognition that through a careful look at the various issues involved there is the possibility of saving significant amounts of money if you invest and manage things in the right way.

  Q108  Mark Pritchard: At what point does the local authority's leadership end and consumer demand for such changes at local authority level actually begin, or even vice versa, because the Woking example is an interesting one which seems to have been led by certain councillors and certain officers from the top? It is important, clearly, that clients, consumers, local taxpayers are engaged and there is an argument that they are not particularly engaged and the council is doing this over here—I do not know if it is the same in Lewisham—and the tax payer over here is lagging behind in education and knowledge, perhaps. I just wondered, how do you actually square that circle, because if we are going to have a coalition of the willing (to continue the willing point) then clearly these two factors need to come together, these two parts of that coalition?

  Mr Hurford: My guess is that the "wilful individuals" are people who have been interested in potentially energy and environmental issues for some years and have perhaps believed the information about climate change some time ago and therefore have wanted to bring it to the fore. Recently, particularly in the last two years, climate change issues have become so topical and so much in the media that the public are now very aware and there is starting to be some pressure from the ground up, from the public, and that has certainly, I think, fed through to councillors because in my own authority, indeed in the last two or three years, we have seen a much stronger pressure from councillors for change on climate change issues and to bring the strategies forward. Obviously the council is working closely with the public, so it is the media raising the stakes really and putting it to the public, and the public pressure then perhaps getting the councillors to take action and bring about further change.

  Cllr Haines: Could I just pick up that point about the public's perception. At the time of the Rio Summit in 1992 there was a big rise in public interest in it. I actually was teaching A-level environmental science at the time, so I knew that my numbers of students actually went up. Then it sort of tailed off in the 1990s and what we are seeing now is clearly a resurgence of public interest and this time obviously something is going to have to be done about it because the evidence now is such that people have to recognise that, whereas back in the 1990s it was, "Well, it's not really proven, is it?" so the public carried on. So I think the message has to be got across to the public at large, as you were talking about just now, and I think the local authorities are best placed to educate the public and through a combination of carrot and stick actually get them into the position where the Government wants us to be, because clearly it is, as with recycling, one of those things the public has had to change its general rationale of how it operates. You can persuade them that at the end of the day action may have to be taken through legal routes to actually bring it into effect, or through financial means.

  Q109  Mark Pritchard: Could I give you an example? Local authorities are very good now at recycling. Where I am in Shropshire most of them are very good are recycling residential or domestic waste, but they lag behind on recycling commercial waste and this seems to be the case in pretty much most of England. That is an example, perhaps, where having this high rhetoric in both the local authorities and at the Despatch Box here yesterday, but in fact a businessman in my own constituency wrote to me this week and said, "Look, I want to recycle my commercial waste but they're not interested". I just wondered about that window of opportunity which you alluded to. If we raise people's expectations and we actually ask them to do more and the systems, the infrastructure and the incentives are not in place, then we may not ever get them back on this point again?

  Cllr Haines: It is only about 7% of waste which local authorities actually deal with. We want to have the opportunity to actually get involved with the recycling of business waste, but the structure is not there to allow us to do that. We would have to start paying more money, so it would be detrimental to us financially. So that is a problem as it stands, but yes, we would wish to do that.

  Q110  Mark Pritchard: But you are best placed, as you said earlier?

  Cllr Haines: Yes.

  Mr Hurford: The other important point to note about the recycling of waste is that there was an additional £128 million put into waste and recycling for local authorities, I think it was about two or three years ago, and that is what has brought about the sea change in recycling throughout all local authorities across the country. That has enabled all authorities to put in place some basic form of recycling service.

  Cllr Haines: On that document I notice they said we are saving 10 million tonnes a year of carbon dioxide emissions or equivalent through recycling, so WRAP clearly is addressing some of what you are looking at as well.

  Q111  Mr Stuart: Could I move you now on to the Climate Change Programme published in March which, as you will be aware, had very little to say really, a very small section on local authorities which suggested that just 0.2 million tonnes of carbon saving could be expected from local authorities with additional effort by 2010. Does this underestimate the potential savings in carbon which could be local authorities in that period?

  Mr Hurford: I would imagine that covers the corporate stock, so that would be savings from the town halls, the libraries and the other corporate buildings. It probably is not talking about the catalytic effect which local authorities can have through the housing stock, through working with energy efficiency advice centres and with other groups, really providing advice to the public on how to save energy because basically we are a public facing service and we do obviously network daily with the public. That is where there is additional potential carbon savings that we could make, but I would imagine that 0.2 million is just representative of our own stock.

  Q112  Mr Stuart: In those terms then, is that, in your opinion, an ambitious/realistic amount? Again, Woking comes up all the time, but from when they started I think a 79% reduction in carbon emissions is what they claim to have got from their own corporate buildings, et cetera. Could you give us some idea of how the 0.2 million tonnes relates to the overall emissions from councils?

  Mr Hurford: Without knowing the overall facts as to what percentage that is, it is quite hard to say. I think on the Woking example, without looking at innovative funding mechanisms, it would be hard for other authorities to replicate Woking. That is the experience so far, because we have been working quite hard. I have been talking to Allan Jones, who used to fund the Woking system, for about five years and we are still not quite there on how to make the funding work, to give you an idea of how long it might take.

  Cllr Haines: I do not personally know the figures, so I could not give you a criticism about them, I am afraid, but I am sure if it is something you wish to receive in due course then that can be forthcoming.

  Q113  Mr Stuart: I do not know where else we would turn other than the LGA to get a proper idea as to whether that is a sensible figure or not.

  Mr Hurford: I think basically we could find out for you, but we would need to analyse the figures and come back to you.

  Q114  Mr Stuart: Excellent! How happy are you with the Government's pledge to consider how to ensure that the local government performance framework will include an appropriate focus on action on climate change? Will this incentivise those councils currently not doing enough?

  Mr Peverill: I would say that the current performance management framework for councils, the CPA (Comprehensive Performance Assessment) is something which councils take very seriously indeed and that is the sort of thing and that is the sort of things which agitates every chief executive up and down the country. So yes, including climate change within a performance framework will be an effective way to get it registered and ensure that some degree of action is taken accordingly.

  Q115  Mr Stuart: How would you react to the Government giving an indication of the sort of carbon savings it wants local authorities to find in periods after 2010? Perhaps you have given an answer on that already, but could you give us more of an idea?

  Mr Hurford: I think if we talk in percentage terms, if we are looking at a 60% reduction by 2050 then it is going to be a few percent per year. Chances are it would not occur at a rate of 1% per annum, it might be 0% one year and 5% the next, and we would make step changes, but certainly you would need to look at whatever it is, 1%, 1.5% per annum to get to the 60% reduction.

  Q116  Mr Stuart: How important is it for you to have long-term signals from the Government on that, because business has told us it is tremendously important for them to have market signals over a long period so that they can invest in order to deliver what is expected of them?

  Cllr Haines: I think the same applies. Clearly there have been lots of short periods of funding which when they come to an end you have got to work out where you are going from there, and sometimes you can get gaps in the funding so you cannot carry on a piece of work. So having long-term assurance of where you are going, I think, is very important, yes.

  Q117  Dr Turner: The Centre for Sustainable Energy reports that local and regional government is somewhat variable in its quality of performance in local authorities and they say that most local and regional bodies in England are generally weak or fair on all aspects of carbon management and there are very few authorities which could be characterised as achieving good or excellent standards. Would you agree with that assessment?

  Cllr Haines: Yes, clearly that is the assessment which has been made. I would not disagree with it, but clearly you have got to look at what timescale that was taken over and where we move on from now. So I would hope to see improvements. Clearly you cannot measure it exactly like with like, but that is how things would be moving and I presume that is taken over a couple of years.

  Q118  Dr Turner: If we accept that, is it going to be possible, given current frameworks and incentives or lack of incentives, as things stand for more councils to achieve a higher standard or do they need to look at funding changes or changes in structures to do it?

  Cllr Haines: I think the changes are going to be coming with the Local Government White Paper. Clearly that is going to change things as well, but yes, those other changes will have to happen.

  Q119  Dr Turner: Do you think it is going to be a little sad that all the councils who have failed to perform in the past will be given help and all those who have actually managed to do it in spite of everything will miss out?

  Cllr Haines: It is a bit like the bus passes for pensioners. That is a similar situation where councils were actually in different positions and clearly some felt it was unfair. As a "wilful individual" I would like to think that everyone was brought up to the speed the rest of us are at. If it is in the long-term good interest, then that would be my opinion, but yes, there will be councils perhaps receiving more than others should have been rewarded already. I do not know whether my colleagues have got anything to add.

  Mr Hurford: As I stated earlier, the reason that performance is not that good is because neither climate change nor sustainable energy are statutory functions for local authorities, they do not have to do it, so when there are funding cuts you go back to your core services which you have to provide, and you do not have to work on climate change and you do not have to work on sustainable energy. Therefore, there will not have been enough investment. Again, that comes back to the LGA's repeated request that perhaps each local authority should have a nominal sum of, say, £70,000 (which I think was £28 million in total) to act as a catalytic sort of seed pot to work on these issues. I think that would be an incentive for everybody because those authorities which had already done a lot of work would perhaps be able to move on that much quicker and the smaller authorities would be able to also start work on it.


 
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