Select Committee on Communities and Local Government Committee Written Evidence


Memorandum by the Greater London Authority (Mayor of London) (RC 46)

  Reducing the amount of waste being sent to landfill is a the heart of managing waste sustainably. This is central to my vision in my Municipal Waste Management Strategy and also the landfill directive. I am particularly concerned that rather than genuinely reducing the amount of municipal waste being sent to landfill, local authorities are attempting to find loopholes or disregard the rules relating to the Landfill Allowances Trading Scheme (LATS) system to give the impression that landfill has been reduced, when in fact the waste continues to go to landfill via the private commercial waste sector.

  Around two-thirds of London's waste is buried in landfill sites and mostly exported to sites outside of London. I am concerned that any improvements in diverting waste from landfill shown in Government statistics will actually be an exaggeration of the reality.

SUMMARY

  1. Reducing the amount of waste being sent to Iandfill is at the heart of managing waste sustainably. This is central to the vision of the Mayor's Municipal Waste Management Strategy and also the landfill directive. The Mayor is concerned that rather than genuinely reducing the amount of municipal waste being sent to landfill, local authorities are attempting to find loopholes or disregard the rules relating to the Landfill Allowances Trading Scheme (LATS) system to give the impression that landfill has been reduced, when in fact the waste continues to go to landfill via the private commercial waste sector.

  2.  In particular the Mayor is concerned that:

    (a)  Commercial waste portfolios collected by local authorities are being sold off to the private sector to contribute to meeting LATS obligations.

    (b)  Waste collection authorities may be pricing themselves out of the commercial waste sector by charging unreasonable rates.

    (c)  Whilst municipal waste to landfill appears to be reducing due to the actions set out above, that waste continues to end up in landfill via the private commercial waste sector.

    (d)  Government are not properly monitoring the LATS scheme or following their own guidelines.

    (e)  Where local authorities are disregarding rules no action is being taken against them.

INTRODUCTION

  3.  The Mayor of London welcomes the opportunity to respond to the Communities and Local Government Select Committee Inquiry into refuse collection. This submission highlights some of the key issues the Mayor would like to see the Committee address.

  4.  As the directly elected head of London's government, the Mayor is in a unique position to represent the views of Londoners.

THE MAYOR'S MUNICIPAL WASTE MANAGEMENT STRATEGY AND THE LONDON PLAN

  5.  The Mayor is responsible for writing the Municipal Waste Management Strategy for London. London waste authorities (of which there are 37) must have regard to the Strategy when exercising their waste functions set out in Part II of the Environment Protection Act 1990. The Mayor has published the London Plan, the spatial development strategy for London. London borough local development plan must be in general conformity with the London Plan. The London Plan sets a target for London to be 85% self-sufficient in the management of its waste (municipal waste, commercial and industrial wastes, construction and demolition wastes) by 2020.

  6.  At the heart of both the Municipal Waste Management Strategy and the London Plan waste policies is the need to reduce the amount of waste being sent to landfill. London currently relies heavily on landfilling its waste in the surrounding counties. The aim of the Strategy is to dramatically increase the levels of recycling in London and to develop non-incineration based energy from waste technologies to manage the waste that cannot be recycled.

  7.  The Mayor believes that to properly address these issues London needs a single waste disposal authority. Without a coordinated approach to the management of London's municipal waste it will continue to be managed by the surrounding regions.

THE LANDFILL DIRECTIVE AND LATS

  8.  The Government introduced the Landfill Allowances Trading Scheme (LATS) through the Waste Emissions Trading Act 2003. The purpose of LATS was to ensure that all local authorities contribute to meeting the requirements of the EU Landfill Directive, which requires the UK to reduce the amount of biodegradable municipal waste it sends to landfill to:

    —  75% of 1995 levels by 2010;

    —  50% of 1995 levels by 2013;

    —  35% of 1995 levels by 2020.

  9.  LATS has been introduced as the mechanism to meet England's Landfill Directive requirements to divert biodegradable waste from landfill. The Waste Emissions Trading Act 2003 places a duty on waste disposal authorities to reduce the amount of biodegradable waste disposed to landfill. It also provides the legal framework for LATS. Each waste disposal authority in England has been given an allowance of the amount of waste it can send to landfill, and the total allowances equate to the contribution England must make to achieve the UK's diversion obligations.

  10.  Authorities must ensure they hold sufficient allowances to cover the actual amount of biodegradable municipal waste they send to landfill in a financial year. Authorities that do not require all of their allowances are able to sell their excess allowances or bank them into the following year. Authorities that do not hold enough allowances must either increase the amount of waste they divert from landfill, purchase excess allowances from another authority or borrow permits from their next year's allocation.

The collection of commercial and industrial wastes by waste collection authorities

  11.  Under Section 45(1)(b) of the Environment Protection Act 1990 local authorities are required to make arrangements for the collection of commercial wastes where requested to do so by a commercial premises. Waste collection authorities may also arrange for the collection of industrial waste in their area with the consent of the waste disposal authority, as set out in Section 45(2) of the Environment Protection Act 1990.

LATS and commercial municipal waste

  12.  The purpose of the landfill directive (and the Mayor's Municipal Waste Management Strategy) is to reduce the amount of waste sent to landfill for the improvement of the environment, however the Mayor is becoming increasingly concerned that some waste authorities may be meeting their LATS targets by selling off their commercial waste portfolios or by pricing themselves out of the market. The result of this is simply to move waste from municipal waste figures to the private waste management sector. Without the incentive of LATS, and with the landfill tax at its current rate this waste will inevitably follow the cheapest route, which is, still of course, landfill.

  13.  The so called reduction of municipal waste to landfill is in some cases little more than a paper exercise, whilst in reality that waste is still being sent to landfill. Waste managed at these sites has risen from 6.2 million in 2003 to 7.7 million in 2005. Attached in Appendix A is the total waste being sent to landfill sites that re being used by London authorities. The figures are for the total waste entering the site (not just waste from London), but the trend appears to suggest that the amount of waste being sent to these sites is actually increasing.

  14.  Meanwhile the amount of waste being sent to landfill and reported as municipal waste (as published by Defra) appears to be reducing significantly—see Appendix B. Whilst some of this diversion is genuine due to improving levels of recycling, some also appears to be due to the creep of municipal waste into the private was e sector.

  15.  The Mayor is aware of at least two London boroughs, Wandsworth and Kingston that have recently sold off their trade waste portfolios. Other boroughs such as the London Borough of Brent have also done this but a number of years ago.

  16.  The Government's own guidance on this issue "municipal waste, commercial waste and the landfill allowance trading scheme" states that "a waste collection authority cannot evade its duty under the 1990 [Environment Protection A] by selling off its existing collection services. Selling off an existing service is in substance no different from the waste collection authority arranging for the commercial waste to be collected by a private contractor. Thus for the same reasons the waste formally collected by the authority would remain under its control and would constitute municipal waste". Therefore waste authorities should continue to report the tonnage of waste from any commercial waste portfolios they have sold off. The Mayor is concerned that this is not happening and the relevant monitoring authorities are simply turning a blind eye to this fact.

  17.  The Government's guidance also states that waste collection authorities can recover a reasonable charge for commercial waste they collect including an element for the LATS scheme. However the Mayor does not believe that Government is monitoring the charging rates of local authorities and therefore have no way of assessing whether their charges are reasonable.

  18.  The table below gives the example of four London boroughs that have significantly reduced their waste between 2000 and 2005. The Mayor fears that that this waste has merely been directed to landfill via the private commercial waste sector. Government appear to have no handle on whether these reductions are genuine represent the selling off of commercial waste portfolios.

NON-HOUSEHOLD WASTE COLLECTED BY SOME LOCAL AUTHORITIES IN LONDON 2000-06


Authority
Collected non-household waste 2000-01 to 2005-06 (tonnes)
2000-01
2005-06
Difference

City of London[38]
64,830
39,252
-25,578
Kingston[39]
15,045
-15,045
Wandsworth[40]
32,614
2,804
-29,810
Westminster[41]
148,625
110,699
-37,926
Total
-108,368


  19. The Mayor has written to the Minister for Waste on this matter and has received an unsatisfactory response (the correspondence is attached in Appendix C). The Minister's response states that "I expect WDAs to report all waste in their possession or under its control". That alone simply is not good enough.

CONCLUSION

  20. The Mayor would strongly urge the Committee to investigate the waste management practices of local authorities in relation to meeting their LATS targets. In particular the Mayor recommends the Committee investigate:

    a. The selling off of trade waste portfolios by local authorities to meet their LATS targets and the measures government is taking to monitor this.

    b. Whether some local authorities are setting unreasonable charges for their trade waste to price themselves out of the market and what action is Government taking to monitor this.

    c. How the Environment Agency and Defra are monitoring waste authority data to ensure they adhere to the Government's guidance on LATS and commercial waste.

    d. Whether municipal waste figures published by Government actually show a real reduction in the amount of waste being sent to landfill.

    e. What action the Government taking against those authorities who are not following Government's guidance.





38   Capital waste facts. Back

39   Western Riverside Waste Authority Best Value Performance Plan 2006-07. Back

40   Capital waste facts. Back

41   Capital waste facts. Back


 
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