Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 1-19)

DEPARTMENT OF THE ENVIRONMENT FOR NORTHERN IRELAND

30 NOVEMBER 2005

  Q1 Chairman: Welcome to the Committee of Public Accounts. Today, under the arrangements following the suspension of the Assembly we are taking a Northern Ireland topic. We are considering the Comptroller and Auditor General's Report on Northern Ireland's Waste Management Strategy, published in June of this year. We welcome Mr Stephen Peover, who is Permanent Secretary for the Department of the Environment for Northern Ireland. Obviously the responsibilities of Mr Peover are different in Northern Ireland, would you explain the role of your Department to us, as we are Great Britain Members and not necessarily familiar with your responsibilities?

  Mr Peover: The Department has a range of functions: environmental policy; environment protection, through the Environment and Heritage Service; the planning system; the Driver and Vehicle Testing Agency; driver and vehicle licensing in Northern Ireland; and responsibility for local government.

  Q2  Chairman: Could you please look at paragraph 1.3 of the Comptroller and Auditor General's Report? It says there that your performance in transposing EU environmental directives into Northern Ireland law has, frankly, been woeful in the past. I know that at one stage 45 items were outstanding, that was in March 2002, and this has now been brought up to date, but perhaps you could explain to us why the backlog was allowed to develop in the first place.

  Mr Peover: May I start by saying that this was a very poor record of transposition and it became a serious problem for us? The resources in the unit concerned were limited. There were slightly over 30 staff. Those resources have been increased very substantially because we recognised that the backlog was just unacceptable. We have put a substantial investment into that unit to ensure the backlog was cleared and, secondly, to ensure that for the future we keep apace with developments in the rest of the UK and that is now happening. We keep ourselves abreast of EU   dossiers, we have regular liaison with the Commission, regular liaison with colleagues in Defra and the other administrations, but there is no excuse for the past failure to transpose in a timely fashion.

  Q3  Chairman: Could you now look at paragraph 1.6 which tells us that your enforcement team is understaffed and you could have raised at least £5.6 million more in landfill tax by proper enforcement to prevent illegal dumping. Why have you not given this higher priority?

  Mr Peover: We have given it a degree of priority. We allocated some 24 staff out of a relatively small part of our unit to this function when it became apparent that substantial illegal dumping was occurring in Northern Ireland. We bid for additional resources and, in this current year, we decided as a department to allocate £600,000 additional money to this function, which should allow us to recruit between 15 and 20 additional staff to help us meet our responsibilities. It is a very substantial piece of work. We estimate that we should need £2.5 million to resource this work adequately. We do not have that flexibility within our budget, but we have allocated 24 staff to the function and we are allocating additional resources out of the Department's base line to try to catch up on this responsibility.

  Q4  Chairman: Could the fact that you have not been more vigorous in raising this money be explained by the fact that this £5.6 million would go to the Treasury rather than to you?

  Mr Peover: No; not at all. There is a real loss to Northern Ireland in this, because when waste is illegally dumped in Northern Ireland that means it is not being dumped on legal sites, it is not generating gate fees, it is not generating landfill tax revenues and therefore it is a loss, not only to the public purse, but a loss to Northern Ireland operators of landfill sites and it is a major problem.

  Q5  Chairman: I understand as well that sometimes there is a problem with cross-border dumping. Is that right? That might be a problem for you in places like South Armagh. Is that a problem for you?

  Mr Peover: Yes, it is. We have something like 273 approved authorised crossing points on the border. We have a border which is 370 kilometres long. We have 10 council areas adjoining the border and there is a differential in the tax regime in the south from that in the UK which acts as an incentive for criminals to import waste illegally into Northern Ireland and to dump it on illegal sites. We are talking about quite a serious level of criminal activity. We are not talking about minor fly tipping or smaller-scale operators; we are talking about organised crime.

  Q6  Chairman: Can you now please look at paragraph 2.30? It is a bit of a technical point, but I need to ask you it. Obviously you have to rely on local authorities to do a lot of this work for you, but the councils' delay in finalising their waste management plans impacted on their funding needs and in March 2002, the Environment and Heritage Service gave them £1.3 million in grant aid in advance of need. I am told that this is a breach of financial control. Why did it happen?

  Mr Peover: It happened because we were anxious to move this process on, partly because of the delay. It also happened because we had sought and had got from the councils' chief finance officers, written assurances that the money would be spent within the year in question. It was not spent; therefore there is a real issue here. We were acting with the aim of trying to address this problem, get the whole Waste Management Strategy under way and we were acting with assurances from the councils. I should have introduced my two colleagues,

  Q7  Chairman: I should have asked you to do that; I do apologise.

  Mr Peover: Mr Richard Rogers, Chief Executive of the Environment and Heritage Service on my left   and Mr Stephen Aston, Head of Waste Management and Contaminated Land on my right. May I ask Richard whether he wants to comment on this point about the accounts?

  Q8  Chairman: Your answer is fine; thank you very much. Could you please look at paragraph 3.6 on page 26 of the Comptroller's Report? An audit of   your Department showed that your own headquarters building only recycled 15% of its solid waste. It does not say much for your leadership in this area, does it?

  Mr Peover: Yes, I have to agree with that. In terms of leadership the reason that solid waste audit was undertaken was as part of the process of trying to show leadership. It had not been done before. We needed a baseline assessment of where we stood. We did an assessment across our sites and the range was from a relatively low 5% up to really quite reasonable levels, but the average was low for the Department as a whole. As a result of that, we developed an action plan which is being rolled out across the Department and that is aiming to reduce the level of waste going to landfill and to procure recycling throughout the department.

  Q9  Chairman: On the same subject, paragraph 3.7 says that although Whitehall departments are committed to 5% annual increases in the amount of waste they recycle or send for compost, you do not have equivalent targets for the Northern Ireland departments. Why is that?

  Mr Peover: This will come forward as part of the process of our Sustainable Development Strategy. We have now set ourselves targets; we have a target  in the Department of reducing our paper consumption by 50% over a five-year period, so 10% a year. We have a green housekeeping guide which we have circulated to our staff. We have campaigns of "Think before you print", paper reduction, we have a programme of replacing our existing printers or changing our printers to print double sided rather than single sided, we publish documents in electronic form rather than paper form. A process is being developed here which is aimed to feed in, in due course, to our Sustainable Development Strategy and show that we are actually engaged in some leadership. We have rolled out the results of our solid waste audit to all the Northern Ireland departments and all of them have committed themselves to produce waste management action plans by the end of the current financial year.

  Q10  Chairman: Lastly, paragraph 4.9, page 36. It says there "In 2001, the NI Public Accounts Committee's Report on river pollution referred to what it described as the `wholly unsatisfactory nature of the watchdog role within government' and expressed concern that Northern Ireland is the only part of the British Isles without an independent environmental protection body . . . More recently, the Westminster Northern Ireland Affairs Committee's Report on the NI Waste Strategy also supported the establishment of an Environmental Protection Agency". As clearly the present arrangements have not worked very well, are you now supporting the setting up of this independent body?

  Mr Peover: What I should say is that the Minister, Lord Rooker, announced in July of this year that we will carry out a review of environmental governance. What happened, if I can sketch the background for you briefly, was that some time ago a coalition of environmental NGOs commissioned Professor Richard Macrory to do a Report on environmental governance in Northern Ireland. That Report came up with a number of options. We have been in dialogue with the coalition since and we have worked with them to agree a set of terms of reference for a review, which is what they wanted, an independent review of environmental governance. The Minister announced that in July. Indeed, I and some of my officials were talking this morning to the proposed chairman of that independent review team and the aim is that that review, depending on his diary commitments, will begin in the new year.

  Q11  Chairman: It has been reviewed, but you cannot tell us any more about the possible outcome at present.

  Mr Peover: The Minister made it quite clear at a conference that he sees a strong case for it.

  Chairman: That is fair enough; that is a steer.

  Q12  Greg Clark: May I ask the Permanent Secretary whether he can assure us that Northern Ireland will comply with the targets for the diversion of landfill from municipal waste by 2010?

  Mr Peover: Yes, I hope so. Those are our targets.

  Q13  Greg Clark: I know they are your targets, but are you on track to meet the targets?

  Mr Peover: We are on track to meet some of those targets.

  Q14  Greg Clark: What about that particular one, the 25% reduction?

  Mr Peover: Yes, we expect to reach the figure of 25% by the end of next year.

  Q15  Greg Clark: By the end of next year?

  Mr Peover: Yes.

  Q16  Greg Clark: And going forwards, do you expect to keep on track and meet further targets?

  Mr Peover: Yes. We have done a review of our Waste Management Strategy which was published for consultation in October for close of comments by 20 January next. The aim will be not only to reflect the existing targets but to strengthen the target-setting process as part of that review, and to look forward to the creation of long-term infrastructure to meet the needs for diversion from landfill.

  Q17  Greg Clark: May I just clarify this point? You just told me that you will achieve a 25% reduction in landfill from municipal waste, which is the target for 2010, by the end of next year.

  Mr Peover: No; sorry, the 25% target is for household waste.

  Q18  Greg Clark: Municipal waste.

  Mr Peover: That is our aim and we will have to assess that progress towards that target along the way.

  Q19  Greg Clark: I know it is your aim. I asked you what I thought was a clear question. Are you on track to achieve that 25% reduction target, which is there for 2010? Are you on track to meet that?

  Mr Peover: I think our figure is 18.2%.

  Mr Aston: We are on track to meet the recycling and recovery target but you have asked specifically about the diversion and diversion from landfill of biodegradable waste. Yes, we are on track to meet that target and have heavy penalties to make sure we remain on track under the Northern Ireland Landfill Allowance Scheme.


 
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