Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses (Questions 200-219)

MR MARTIN HARPER, MR ROBERT CUNNINGHAM, MR TOM OLIVER AND MR PAUL HAMBLIN

18 JANUARY 2006

  Q200  Mr Drew: Obviously as a natural sequitur to that, in terms of what criticisms you made is there not a resource issue, because you can have all the wonderful words, you can have all the good intentions, but as a constituency MP my one criticism is that sometimes they do not actually get translated into action? So where is the beef here?

  Mr Harper: I will kick off and then pass it on to my colleague Rob, and then maybe the CPRE would like to chip in. Essentially, on the question of resourcing I think it is two-fold. Does the Environment Agency currently have the necessary resources to do its job? I think more often than not what it is trying to do is to actually come up with complex solutions to increasingly complex problems and trying to learn from those experiences. It may not always have the right tools at its disposal, courtesy of central Government, to allow it to do its job. In a sense, there is a whole plethora of little niggles which we would probably wish to table at the door of Defra in terms of improved guidance and clarification of responsibilities, but I do not think that is necessarily the responsibility of the Environment Agency to fix itself. Maybe Rob would like to come in with a couple of examples.

  Mr Cunningham: On the issue of resourcing, it is quite important to think of the Agency because it is such a complex beast. It comes from a background of many different sets of legislation and a number of predecessor bodies and the underpinning legislation of those quite often sets the funding arrangements for that. So for water resources, abstraction, for instance, the hydrology function of the Agency recovers its costs through its abstraction licensing and it has very strict rules on where it spends that money, which will be on water resource related projects. Flood defence, probably the biggest element of the Environment Agency budget, comes from a grant from Defra. Again, there are very strict rules on where it spends that section of money. When it comes to things like biodiversity, access and recreation, on those very pure biodiversity schemes, recreation schemes, there is a grant-in-aid from Defra. So although you might see a monolithic body with a budget of £1 billion, or something like that, actually the freedom to spend that money across those underlying administrative boundaries is limited.

  Q201  Mr Drew: Are you saying your want less ring-fencing, that is a significant problem, or do you welcome the fact that you have certainty in the knowledge that what comes from central Government actually gets spent by the Environment Agency on what it should be spent on?

  Mr Cunningham: It is partly less ring-fencing. If you look at the flood risk management budget, for instance, there is quite a move within the policy development. Making Space for Water is the new Government strategy for flood risk and coastal management to actually look at multi-functional approaches to flood risk management, so looking to get biodiversity gains from flood risk management spend. There is less clarity on exactly how you do that and there are schemes where the Agency has achieved that, in particular some of the coastal retreat schemes where there is multi-functional benefit from reducing flood risk, but there are still internal barriers and difficulties in how you do that. But under Making Space for Water the Agency and Defra are actually working to identify where those problems lie and adjust policy. So it is partly a problem of ring-fencing, but it is also partly a problem of working around that and how to be creative about how you spend your money.

  Q202  Patrick Hall: Could I just pick up on the relationship, Chairman, which you mentioned, which appears to be between RSPB and the Environment Agency. I remember when I visited Sandy a few years ago and had discussions there that the impressions I gained were that the relationship was not a very happy one. Therefore, I say now, what has changed? What are the significant changes which have improved that relationship?

  Mr Harper: Again, I will kick off. I think one of the things we should say is that it is not surprising, given the visions which are outlined in the Environment Agency documents and the emerging visions from Natural England, that we share a lot of those aspirations for the natural environment. So in a sense I think over time we have probably found the Environment Agency increasingly occupying territory which we are very comfortable with. I think certainly at the national policy perspective we have a very healthy constructive working relationship to try and come up with these complex solutions to these complicated problems, and they translate down into projects on the ground. I think, possibly, as both organisations have matured over the years we have invested more in that partnership relationship. So I would hope if you came to Sandy now you would probably get a better impression of the working relationship we have. I will not say anything about the fact that we happen to have indirectly passed on the Chief Executive of RSPB into the hands of the Environment Agency. In a sense, I think it is a long-term investment in that relationship to deliver shared objectives.

  Q203  Lynne Jones: The RSPB operates across the whole of the United Kingdom and there are different arrangements in the devolved authorities. Are there any lessons to be learned from how it operates in Scotland—Scotland is obviously the most distinct—and also other authorities?

  Mr Harper: Of course, we have a relationship with SEPA in Scotland. We do not have an equivalent body in Northern Ireland and that is why we are campaigning at the moment to try and establish an equivalent body in Northern Ireland, because there is no body responsible for some of these regulatory functions. It is left in the hands of central Government, and that is actually possibly quite informative because in an area the size of Northern Ireland, where you would expect central Government to be both the regulator and the incentivisor, it is failing in so many of the deliveries of its environmental objectives. So we are strong proponents of the need for a strong, independent champion and regulator of the environment. I do not know whether Rob can think of any specific examples.

  Q204  Lynne Jones: Are there two bodies in Scotland such as there are in England and Wales?

  Mr Harper: Yes, there is SEPA and there is Scottish Natural Heritage up in Scotland.

  Q205  Lynne Jones: So there is a sort of mirror image there?

  Mr Harper: Indeed, yes.

  Mr Cunningham: Yes, although SEPA do not hold the responsibility for flood risk management; that is dealt with by the local authorities. So it has slightly less responsibility.

  Q206  Lynne Jones: Which do you think is the best model then?

  Mr Cunningham: I think there is a very strong argument for the Agency to have the flood risk management control, because there is a very clear need for a national approach to setting and identifying priorities. There is also such a huge overlap between the adaptation and the modification of coasts and rivers and the environmental outcomes for wetlands, for rivers and for our coastal environment. So I think there is a very clear need for the Agency to hold that role.

  Q207  Chairman: Could I just ask you on that point, in paragraph 30 of your evidence you comment on the strategic planning and stakeholder engagement in this area and you say: "Unfortunately, there are also examples where strategic planning and stakeholder engagement has been less successful, for a range of reasons." You go on to comment about the Broads PFI and you conclude by saying, "We have fundamental concerns about this approach, because contractual agreements cannot easily respond to shifts in policy, legislative requirements and improved understanding of future risk. As a result, we fear that the gap between Government policy and PFI delivery will continue to grow over the life of the contract." [17]Whose fault is that? Where did the problem originate?

  Mr Cunningham: There appears to be some enthusiasm to use the PFI funding mechanism for flood risk management and it is mentioned specifically in Making Space for Water as a potential future way of funding large-scale regional flood risk management options. I am not sure how you would apportion blame in terms of the setting up of the original PFI, but the concerns we have are that Making Space for Water, for instance, has established a new Government aim and objective for flood risk management which quite clearly states that flood risk management, while it is primarily about reducing risk to people and their property, is also about delivering sustainable development on the environment, social outcomes, et cetera. The PFI pre-dates that, so in relation to the standards and objectives set in the PFI how are we going to align that to what we want for Making Space for Water?

  Q208  Chairman: Can I just stop you before we get too discursive? Really I was interested to know, just on that point, is it a Defra policy problem or is it an Environment Agency problem? Who is the master and who is the servant?

  Mr Cunningham: Certainly the policy is very clearly that Defra had divorced themselves from the delivery side of flood risk management, and that is quite clear. They abolished their regional engineers and they have set themselves very clearly as the policy-setters and the Agency is the delivery mechanism. I was not involved at the time of the inception of the Broads PFI—

  Q209  Chairman: But you have written it down here.

  Mr Cunningham: Absolutely. I think what we are concerned about is that Defra, in Making Space for Water, highlight the PFI as a potential mechanism for the future.

  Q210  Chairman: Let me tell you why I am asking the question. In terms of establishing the independence and advocacy role of the Environment Agency, if this was a bad policy, in your judgement, do you believe that a body like the Environment Agency should have had the courage—because you will have told it that it is a bad policy, I am sure—to stand up and be counted, or is it in such a position that if Defra has set the policy, that is it, it has got to do what it is told?

  Mr Cunningham: I think there is a very clear need for the Agency to make it clear where policy is failing because they are the people who know at the delivery end. I think there is clearly a healthy discussion between Defra and the Agency.

  Q211  Chairman: Okay. Let me move to this next point on that then. If that is one of its key roles, do you have any examples where you think it might have failed in that duty?

  Mr Cunningham: It is very difficult, because flood risk management is something which I deal with quite a lot in my day to day work and quite clearly the Agency has the delivery role but also has the role of informing Government about the technical issues and about what the outcomes of its policy will be, but ultimately the Government has the clear role on setting policy. It is a Government issue. So if PFI is a Government tool for what it considers to be a more rational way of financing flood risk management, ultimately that is a political decision. In essence, the Agency can tell them it thinks it is a bad idea, but it is a Government decision ultimately what the policy is.

  Q212  Mrs Moon: I want to take up this issue of the Environment Agency's close involvement with policy-making, because a number of people who have submitted evidence to us have felt that the Agency exceeds the purpose for which it was established. There has been a lot of discussion around the championship of the environment role for the Environment Agency. How much of a conflict is there between the Agency's role as a regulator and adviser and its involvement in the development of policy, whether or not that is a vacuum, because the policy is not going down to almost make it on the hoof? Again, taking up the issue which Lynne Jones talked about, is there a difference between the devolved administrations? Is there a difference in terms of the involvement in policy of the Environment Agency in Wales, in Scotland, in Northern Ireland and in England?

  Mr Harper: I know my colleagues are itching to get started, as it were, so maybe if I allow Paul to kick off.

  Mr Hamblin: I can give a CPRE perspective. I think we attach great importance to the policy advice role which the Environment Agency provides to Government, but given our remit as CPRE perhaps I will keep my comments restricted to England. I think we have seen a growing distance between government departments and statutory bodies in particular, such as the Environment Agency. I remember in 1998, when the Government was developing the assessment of its roads review, where clearly the implications of its roads programme on the water environment was a very important consideration and the Agency was very much involved, as were other agencies in the development of that assessment process. This was done before decisions were being made. What I think we are witnessing now is that increasingly a number of reports are being commissioned by Government and announcements are being made where the Environment Agency, if you like, is providing advice but post hoc, after decisions have been made. Examples I would use for that would be the Barker Report on the supply of housing, where there was no strategic environmental assessment undertaken of that, the Eddington review on transport and productivity, where Rod Eddington has been asked by the Chancellor and the DfT to examine this issue and quite explicitly has been told not to examine the environmental considerations. That is being thrown back as, "This is an issue which Government will need to consider but it is not for him." I think our concern is that when these studies are being undertaken, when announcements are being made, they should be undertaken within the climate of, and the priority which is being given to, sustainable development. The Government has published its sustainable development strategy. It has said that we must work within environmental limits, and that is something which CPRE, and I am sure RSPB, would very much wish to support. In my mind, this would mean that the pressure on the Agency to provide advice, early advice to feed into policy is simply going to grow. This comes back to the resourcing point about making sure there are sufficient resources for the Agency to do that, and equally that the Government is able and willing to listen to the advice which it then receives.

  Q213  Mr Rogerson: The RSPB has said that the Agency is "hampered in its work by a lack of Government support"[18] in terms of powers, resources or guidance, a steer in some areas. How do you think that should be addressed?

  Mr Harper: I will kick off by saying something which I wanted to raise when Natural England were speaking. I think the Environment Agency, and indeed Natural England, should be judged on the delivery of their environmental objectives and environmental outcomes and increasingly I hope that is the way in which Government wishes to take assessment of environmental delivery. In a sense that should be the starting point for determining whether the tools they have at their disposal are fit for the job. I think one of the best examples of the way in which the agencies of central Government have worked together recently has been on the attempt to try and ensure that 95% of SSSIs are in good condition by 2010, one of the public service agreement targets. That is very much a shared Government agenda with the Agency, whereby Defra plus major landowners, plus English Nature are being challenged not only to come up with solutions but also possible remedies to try and take forward action. That sort of collaborative, very sensible approach is now being adopted, as Rob alluded to in the Making Space for Water venture, where there is a recognition that in a sense there are these major obstacles out there but we need to actually discuss what are the key remedies to actually fix them. I do not know whether Rob wanted to elaborate particularly on Making Space for Water?

  Mr Cunningham: On Making Space for Water, for instance, one of the BAP targets and one of the Government targets for flood defence is to create 140 hectares of inter-tidal habitat a year. That is proving very, very difficult. You would be able to manage the realignment sites, but there is not a huge number of those in existence and if we are to get anywhere near meeting that target then progress will have to accelerate. There are a lot of barriers to the creation of managed realignment sites. You have to acquire the site through purchase. There can be a lot of local opposition and there are a lot of things which will need to be tackled to accelerate that and Making Space for Water has a range of projects, some led by Defra, some led by the Agency, including a project to look at the barriers to that delivery, whether it be financial, whether it is institutional or whether it is a lack of appropriate legislation. Those will be looked at, and it is also in collaboration with ourselves and English Nature carrying out a public stakeholder kind of trial up in the Humber to look at that. So there is no simple answer, but in certain areas clearly there is a failure. For instance, on diffuse pollution I think there is a very clear failure at the moment to get a clear steer about what mix of advice, regulation and incentive will be at the disposal of the Agency and Natural England to deliver the Water Framework Directive objectives. That is a large area of uncertainty because the Water Framework Directive targets are meant to be achieved in 2015. We do not want to be in the situation where we are looking back and thinking we should have acted a lot earlier. So there is a whole range of issues.

  Mr Oliver: Could I add to that? I think there is a risk that we forget what is at stake in terms of the effective management of the environment and the responsibility of the Environment Agency. There are a number of people who are at risk from flooding at the moment, about five million. The number of businesses at risk is two million. The capital value of those businesses is in the hundreds of billions. These are serious issues which are not just about the numbers of dunlin or Redshank or the numbers of pretty landscapes, though those are important, and it is crucial to recognise the need for the Environment Agency to harness wider society's input and capital investment and intelligent decision making about strategic planning. I am mindful of the evidence you heard yesterday where there was talk of difficulty with mission-creep with the Environment Agency and I think the expression was used, "What is the Agency doing being involved with sustainable communities?" While that mentality prevails in parts of the business community, we are in dire trouble unless we are able to harness and lead wider society to recognise the need to avoid flood plains, to take water management seriously both in use and in conservation. So although these issues are fundamentally important and are very technical, as you heard from previous witnesses, it is important to raise our game and to realise that the Environment Agency has a very significant role to play for everybody.

  Chairman: Jamie Reed, I think, wanted to follow up on that.

  Q214  Mr Reed: I am very interested in the potential for duplication between yourselves and Defra and potential conflict and overlap. Do you think there is any, and if there is could you give any examples of where there have been potentially duplicated efforts between the Environment Agency and Defra?

  Mr Harper: Just quickly on the Environment Agency and Defra, we were talking about its role as regulator and its role as advisor. One thing we did not talk about is its role as technical support as well, particularly as regards the Water Framework Directive. Those who know it well—and this Committee knows it pretty well—will be aware of just how complex it can be and it is absolutely vital that the specialists who are employed by the Environment Agency are on hand to be able to provide the technical support and advice to Defra colleagues when they are in negotiations in Brussels. Our understanding is that that relationship works well. I think, as a previous witness suggested, it is important for policy to be informed by practice and of course the Environment Agency has (as indeed do the RSPB and Natural England) a lot of experience of practice and that is why we, as the RSPB, contribute detailed submissions to policy consultations and that is why I also fully endorse what Paul said about the role of the Environment Agency to try and ensure that what is essentially a cross-cutting issue is dealt with in a comprehensive way.

  Q215  Mr Reed: I am grateful for the response. In that respect, though, do you think that there are some functions which Defra perform, which perhaps you might deal with, which we could strip away from Defra? This Committee, and I believe all Members of the House are very interested in stripping out unnecessary cost and barriers to speedy regulation and effective government. Is there anything you think Defra currently does which, frankly, you think you could do better?

  Mr Hamblin: I think there are a number of areas where the Environment Agency and Defra need to work in partnership. There is policy advice, and there is information which the Environment Agency can provide and which Defra requires. Frankly, I think that sort of advice needs to be provided to other government departments, which need to seek it from the Environment Agency so that not all information is channelled through Defra. That raises the question of whether there is duplication of effort. I do not see duplication of effort but, having heard the previous witnesses being questioned on this point, clearly a concern is whether there are two champions of the environment. I suppose what I would say in response to that is, how many champions of the economy are there? How many champions are there for other particular policy areas? The environment is broad, it is interconnected, and it is important that we have the knowledge which the Environment Agency can provide in terms of monitoring the state of the environment. But we also need a very important strong department within government which is able to integrate environmental concerns across government.

  Q216  Mr Reed: With regard to planning issues, do you have a sufficient relationship with other Whitehall departments, in your opinion, as you do with Defra when it comes to advice and expert advice?

  Mr Hamblin: CPRE has a good liaison with the Office of the Deputy Prime Minister and other government departments. I think the relationship which the Environment Agency has with the Office of the Deputy Prime Minister is mixed and certainly there are policies which the Office of the Deputy Prime Minister has been at the forefront in pursuing, such as the Communities Plan, which are raising very significant issues for the resources which the Environment Agency is trying to monitor, not least water consumption. Proposals for massive housebuilding in the east of England, one of the driest regions in the country, I think highlight that problem. Clearly, the Environment Agency needs to be feeding into these discussions at a regional level—and I believe it is, although the resources available to do that, I suspect, are insufficient—but really the key issue is about making sure that these challenges are addressed higher up the decision-making tree, so before the Communities Plan was produced.

  Q217  Mr Reed: That is the ODPM. How about the Department of Health, the DTI and other departments? Is there sufficient scope for their advice to be taken? Are the relationships adequate, do you feel, in order for environmental aspects of policy-making to be considered properly?

  Mr Oliver: I am sorry to ask a question, but when you say "you" do you mean CPRE or—

  Q218  Mr Reed: My apologies. I meant the Environment Agency.

  Mr Oliver: There has been a Memorandum of Understanding between the Environment Agency and the Department of Health and that is a good step forward. One of the most significant issues which arises in terms of overlap between the Environment Agency and Natural England is the scale of operation, and I think probably one of the most significant points is that, for example, if you take the Water Framework Directive, at least 80% of the surface area of England is implicated in needing significant change to a catchment, whereas the total SSSI area of England is only 7%. So although Natural England has a remit in terms of improving and enhancing the landscape and access to it on a wider basis, it is dealing with, relatively speaking, smaller areas than the Environment Agency. That difference in the scale of operation, leaving aside all the questions of waste management and flood prevention, means that it is actually quite helpful to have two bodies because they do operate at different scales and there is, if you like, a sort of binocular vision which actually also benefits NGOs because there are two sources of authority. That is actually quite helpful. It helps you get the range. That is my analogy. For example, with the NERC Bill it has been very helpful to have the Environment Agency giving advice on the process and not being directly implicated in the legislative process. That has been very helpful.

  Q219  Mrs Moon: You have made it quite clear that you feel perhaps the Environment Agency is not being consulted sufficiently early enough and robustly enough in terms of central Government planning. I think we have got that message. What about in terms of planning within local authorities? Do you think the role of the Environment Agency gives them sufficient influence when they are consulted on local planning applications? Are they robust enough and do their reports carry enough weight?

  Mr Oliver: They are a statutory consultee with LDFs, of course, as well as RSS, so technically speaking that is a good situation. Part of the problem is, I think, that they deal with tens of thousands of planning application queries every year. CPRE itself looks at roughly 100,000. I think we are probably quite unique amongst the NGO community in having that sort of scale of operation, but I think there probably is a question of resource allocation there because it depends on how many applications are coming in. There is no rule which says that the number of applications coming in will be more or less controversial in any one year. I would have thought it is probably, from CPRE's perspective—I am not sure whether RSPB would agree with this—very helpful if there is greater attention to planning applications where they are of great consequence because of course otherwise the NGOs are left to do that job themselves, as does sometimes happen. CPRE does not own land, of course, so we do not have the particular question, but I remember when I worked for National Trust I was quite concerned that planning and development issues which affected the estate I ran were not necessarily always receiving the degree of attention I wished them to have from the EA.

  Mr Hamblin: If I may just add to that, the changes which have been brought about by the Planning and Compulsory Purchase Act have meant that we are now in a situation where rather than simply looking at land allocation in plans we are looking at the management of land through spatial planning. That provides lots of opportunity for the Environment Agency to try and integrate messages about resource management right into the heart of the planning process at the local level through local development frameworks. Because the Planning and Compulsory Purchase Act has generated significant changes through the planning system all at the same time I think there is a phasing issue and a resourcing issue in terms of the extent to which the Environment Agency is able to respond to all of the proposals which are coming forward and really ensure that its wider messages about managing water are incorporated at the plan level, and not simply addressed through individual planning applications.


17   Ev 89 Back

18   Ev 87, para 5 Back


 
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