Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Questions 60-79)

RT HON HILARY BENN MP, MS ANNE SHARPE, MS MARIE PENDER AND MR MARTIN NESBIT

4 DECEMBER 2007

  Q60  Mr Stuart: It was announced by the government as an 11% reduction and in fact you can give us no evidence that it led to any reduction. You must admit that that does knock confidence in the very transparency and effectiveness issues which we have been trying to focus on. I wonder how well these issues are understood across government and is there a risk of confusion or complacency among policy makers by presenting the purchase of credits in this uncritical fashion?

  Hilary Benn: I really do hope there is no complacency or confusion. There is an issue of principle which your questions have got to the heart of as to whether it is right and proper for countries in part to make their reductions by purchasing reductions elsewhere.

  Q61  Mr Stuart: Especially if you know that they are probably not representing anything.

  Hilary Benn: That is not, as I understood it, what Mr Nesbit was saying. Have another go.

  Mr Nesbit: Phase one of the European Emissions Trading Scheme was recognised as an introductory phase. It has given us the evidence that the European Commission is now relying on to set more demanding caps for phase two. Provided you have the assurance that you are actually getting real effort from the setting of caps, then the use of those emissions trading schemes within carbon budgets is reliable.

  Q62  Mr Stuart: I will not labour this. We know and government knows that there is not a real effort corresponding with that. We have a new Secretary of State with a reputation for being unusually frank and honest and I hope he will take these points on board. We look forward to greater transparency and effectiveness in the way these things are dealt with in the future.

  Hilary Benn: I appear before this Committee both to learn and to try and answer questions.

  Q63  Mr Chaytor: I want to ask about the question of behavioural change, both within business and amongst householders. The Department has quoted the climate change levy as a successful example of a policy that has exceeded its targets because there has been a conviction by businesses that this is actually the way to cut their bottom line. With ordinary citizens looking at their household bills, we do not have that kind of behavioural change yet because most people seem to think that the best way to keep warm is to have lower gas prices and to turn up the thermometer. Most people view green taxes as a form of stealth tax. How can we do more to secure the kind of internal dynamic that there now appears to be in business with the domestic sector? What mechanisms are in place to attempt to achieve that?

  Hilary Benn: This is a really important part of what needs to happen because we know that 40% of our CO2 emissions are the direct result of decisions that each of us take as individuals. The first thing is people being more aware of the problem and the fact that each of us has to play our part. I think things are changing. If we reflect on how climate change has come to the centre of our politics as a House of Commons—never mind as a nation or as a world—you can see that change happening. That is the first thing. The second thing is people will often say—we ask a lot of questions and do surveys—"Yes, I get that this is going on but I am a bit confused about what it is that I am meant to be doing." We have been running, as you know, the Act on CO2cf1 campaign. I do not know how many Members of the Committee saw the adverts that appeared over the summer with sticky black footprints. I thought they were really striking. The words "carbon footprint" are gradually entering our language and people are beginning to understand what they mean. The truth is we are entering a world in which the phrase "living within our means" which we understand currently to mean something financial—i.e., you are spending more than you are earning—this is the century in which this phrase is going to have to acquire a second parallel meaning. Are we overdrawn at the carbon bank? Are we living within the world's carbon means and the world's capacity to accommodate human activity? That is the task. The Act on CO2cf1 campaign raises awareness. We have the carbon calculator which we launched. I think about 600,000 people have clicked on it. I do not know if Members of the Committee have done so. I did shortly after I arrived in the Department because I thought it would be a good idea and it makes you think. It gives some advice about what you can do and you discover that you have done some of the things, like most people, and there are other things that you could do. We have two tasks. One is to ensure that individuals as consumers have information. This goes back to your points about transparency. We need information to understand what the carbon impact is of choices that we make. There is labelling and we have made some progress on energy efficiency of appliances, although I was talking to the supermarkets the other day about the missing bit of that equation. You look at two washing machines and you see that this is an A rated and it will cost you £300 and this is a B rated and it will cost you £280, so consumers see that comparison but what we do not yet have is the information which tells you, if you do a wash a day for ten years at current electricity prices, what this would cost you as opposed to what that would cost you. There is an example of how we need businesses and others to get information out there so that consumers who want to take the right decision and people who are increasingly aware, can do so. Then there are things that we need to do to make it easier for that to happen. I think the domestic energy sector and the housing market are really good examples because the government has said from 2016 all new homes must be carbon zero and we will ratchet up the building standards to get there. Great. The house building industry can prepare. The problem is 26 or 27 million existing households where not all of them are as energy efficient as they could be, despite the efforts of EEC, CERT and so on. The green homes service which is going to be launched next year through the Energy Savings Trust are about trying to make available one stop advice on energy use, travel and other things. My view is that we have to get to the point where a market develops, where someone will come and knock on your door and say, "You have had this advice. These are the things which will bring your bills down. We will come and do it. We will pay for that and in return you will pay back part of that cost, whether it is through a mortgage where people are moving home or through your energy bills", because only the most hardy are going to go out to do this for themselves and source their photovoltaic cells and find a builder who can connect them up. What most people want is to come back home and there is a button that says, "Hot water now. Heating now". We have to make it easy for people. I make that point because sometimes folk come to the government and say we should be giving yet more in the form of grants to get people to lag their lofts. Hang on a minute. Lagging your loft—and not everyone has done it—will pay back in a year and a half. Going back to your point, Ms Swinson, about government spending, here is an example. Is it really sensible out of a finite pot of money to spend money on getting people to do something that will pay back in a year and a half? No, I do not think it is very sensible. We should find other mechanisms for doing it. The last point I would make is that the campaigning that there is on climate change is really important because it pushes all of us as politicians to move and that is a good thing. I myself have said that, in the same way as we had the campaign to make poverty history, we need something similar and we need to encourage something similar that is about making climate change history, not just in the UK but also in other countries of the world. I am sorry about the length of that answer but it seems to me there are a number of things that we need to make progress on.

  Q64  Mr Chaytor: I suppose my question is relevant to that because there are a number of highly diverse mechanisms in place. What we do not have in the domestic sector is a single, clear incentive as we have in the large business sector. The Carbon Trust provides the information.. The Carbon Trust provides the support. The Carbon Trust provides the consultancy and there are reductions on national insurance to compensate the investment. Why is the government so resistant to the use of council tax reductions as an incentive for improvement to domestic energy efficiency? Is this not a single mechanism that touches the heart of most people's family budgeting and their concern about tax rises and incentives? Is this not the nearest thing to a silver bullet there is to change behaviour?

  Hilary Benn: I am not sure that it is the nearest thing to a silver bullet because, to take the example I just gave, if it is the government handing over money to people to do things that, are, some of them, clearly quite sensible, the weakness with that proposal is the same one in relation to grants for installation and there are other ways in which we can achieve the same objective. I doubt very much whether most of the people who have had the energy companies knocking on the door and saying, "Here are the light bulbs; we will come and do the loft or your cavity wall" have any idea that this is the result of a policy that the government has put in place in the form of EEC and what will be CERT. One issue for the government is to better explain how all these bits fit together. In relation to domestic energy efficiency, I believe that trying to generate both a sense that this is going to be a national movement and we are going to do the existing housing stock, in the same way as we managed to convert to North Sea gas. It is not comparable but I remember when they came and changed the burners on cookers and everyone talked to each other and said, "Have you been done yet?" We need to do something equivalent but we need to find the mechanism. The Green Homes Service launch thereof in the new year is, I would say, step one but we need further steps in order to achieve the objective that you have rightly set out.

  Q65  Dr Turner: We recently had a UN report which has been somewhat critical of the UK's performance. They describe the Climate Change Bill for instance as bold and innovative but they expressed serious concerns about our ambition to reduce emissions in terms of the targets set and in terms of our current performance on our climate change programme. They say that if the developing world followed our lead, temperatures could rise by as much as five degrees centigrade, clearly well in excess of the hoped for two degrees safe limit. How do you respond to the UN report's criticism? Have they got it wrong or have we got to look at our policy much more radically?

  Hilary Benn: The first point I would make is that I suspect it was written—I have not checked myself—before the Prime Minister made his recent speech. I would be surprised if it referred to what he said about up to 80%. That is the first point. Secondly, if developing countries followed the UK's lead of at least a 60% reduction as set out in the Bill by 2050, boy, would we be making progress. I am slightly puzzled as to the criticism and I suspect, thirdly, that the human development report, as it is wont, because I have read it on a number of occasions dealing with other issues, probably had quite a lot to say about other countries but that does not tend to get reported in the newspapers here in the UK for reasons that we all understand. If you are looking around the world at who is giving leadership, I think with all due modesty it is fair to say that the UK has given leadership on the fight against dangerous climate change. It is not exclusive because other countries are also providing leadership but it is quite striking when you travel to other parts of the world how that is recognised. It is not always recognised and appreciated here in the UK but that is the way it goes. Coming back to Bali, the problem is not frankly where the UK is. I met the NGOs yesterday and representatives of the business community to talk about what is coming up in Bali. They recognise that the problem is not the UK's policy. The problem is what is everybody else going to do. We should occasionally just pause for a millisecond to acknowledge that fact.

  Q66  Dr Turner: The report also pointed out UK transport emissions which need to be tackled. It obviously applies to other countries as well, but we do have a particular problem with government policy in that we have average fare increases of 4.8% next year on public transport and projected reductions in government support for railways to the tune of 1.5 billion by 2014. These do not help us to reduce transport emissions, do they, given that private transport is not subject to these increases in costs?

  Hilary Benn: If you look at the price of petrol, I am not sure that people filling up their cars would quite see it that way, the first point. The second point is, if you take the railways, a huge amount of investment has gone in and I think I am right in saying there are now more people travelling on our railways, not just since any time compared with the 1960s before the not so good Dr Beeching got to work on the railways, but even before then. There has been a very, very significant increase in passenger usage of the railways, but yes, we need to make further progress on the transport sector. I suppose it goes back to Mr Chaytor's point about people having alternatives. We have here in London obviously the congestion charge scheme that the Mayor has pioneered and, as I think of the city I have the privilege in part to represent, Leeds, yes, Leeds would be keen for more investment in public transport. Frankly, we could not build any more roads in the centre of Leeds because the centre is covered enough with motorways and roads as it is.

  Q67  Dr Turner: The basic point is that whatever has been done so far to promote public transport and deter increasing reliance on private transport clearly has not delivered, because the use of private transport continues to increase and public transport does not. The railways are suffering from a saturation in demand, so do you think it reasonable that fares should be further increased just to control demand on the railways?

  Hilary Benn: I must be careful not to stray into the territory of my Cabinet colleagues on that subject. Notwithstanding what has happened to fares, people are travelling on the railways, in part because if you have to deal with congestion as the alternative then it is a good way of getting about. That is the first point. The second point which I did not raise in answer to your previous question is we must not ignore the capacity for technological change in the individual transport sector—i.e., cars—what Europe is doing looking at regulating for CO2 emissions for vehicles, the development of hybrid fuels, other forms of technology and electric vehicles. If you can make progress on electric vehicles and you get your electricity from a wholly renewable source, you do not have a carbon and greenhouse gas problem; you still have other problems that you might want to deal with. Julia King is doing her study, as you know currently, which is due to report by the Budget next year and I and others I am sure look forward to what she is going to have to say about the contribution that technological and other change can make to deal with the problem that you have raised.

  Q68  Mr Hurd: Perhaps I can link in to Dr Turner's questions about engaging the public. One way of engaging the public is by sending a very clear signal on the leadership from government and I would like to ask you a question about the expansion of Heathrow in that context. I have a constituency issue but do you understand why many people are confused as to a government on the one hand that talks about the over arching challenge of climate change and the need to change behaviour and, on the other hand, it appears to be giving the green light to an expansion of the fastest growing source of emissions? Did you just lose the argument? How are my constituents supposed to reconcile these two messages?

  Hilary Benn: Because governments must continue to have regard to how we are balancing sustainable economic development with fighting climate change and that issue remains. It goes back to the answer I gave earlier, first point. If we were wholly exempting aviation from any contribution, then you would have a fair point about there being a contradiction but we are not. For the reasons we have discussed earlier, we are absolutely at the forefront of Europe, pressing for aviation to be included in the EU Emissions Trading Scheme. If we were wanting to put it in a separate box and say that aviation does not have to get stuck in and does not have to play its part, then you could have a go at us but we are not doing that. The third point is, within the overall reduced total of emissions that we are committed to achieving, society still has the choice about where it chooses to emit. I think it is important that one acknowledges that because otherwise people could argue: what about other forms of emissions? I grant you that aviation has grown because that is where the public demand is. Otherwise, why are people not saying, "Why are you not doing anything about emissions in those other sectors?"? The debate is: do you want to be sector specific about saying that those are good emissions and those are bad emissions or do you want to construct a system overall that meets the target we have set for reducing emissions, recognising that we have a choice about where we choose to do it? If aviation grows once it is in the ETS, it is going to have to make a contributory saving elsewhere. It seems to me that that is consistent with what we are trying to achieve.

  Q69  Mr Hurd: Do you understand why there is profound scepticism about what the ETS will deliver in terms of reduction in aviation emissions, not least because of the track record that we have had but also just the simple fact that the aviation industry seems to be falling over itself to go into it which ought to ring considerable alarm bells?

  Hilary Benn: Whether it is falling over itself, given the terms on which it might be included, I do not know. Yes, you are right about the ETS. You have to have decent caps but it is part of the best and only hope we have of dealing with this and therefore that is not an argument against the ETS. It is an argument for having a strong and effective ETS with the right caps and one that includes aviation.

  Q70  Mr Hurd: Did your Department agree with the decision on it?

  Hilary Benn: The government has taken the view that we are going to issue the consultation document which we have done and there will be a consultation. The government will listen to what people say as a result of the consultation.

  Q71  Chairman: Do you think, if we achieve an 80% target in UK emissions by 2050, the third runway at Heathrow will be in full use?

  Hilary Benn: That sounds like a question inviting me to anticipate the outcome of the consultation which we have just launched upon so without being disrespectful in any way I think I will probably pass on that one, if you do not mind.

  Q72  Mark Lazarowicz: Turning to a slightly different area, you will be aware there has been disappointment at the fact that we do not yet have a Marine Bill well on its way to completion and a Marine Act on the statute book. If there is to be a Marine Bill considered even in the 2008-09 session, that will mean that the Commons draft Bill must appear pretty quickly. Can you give us an indication of when you expect the draft Bill to appear for consultation?

  Hilary Benn: On this disappointment, one way of looking at it is we waited 1000, 2000, five million years, for the Marine Bill to come along. I happen to be in the fortunate position as Secretary of State responsible in a government that is committed to legislate to provide one in the current parliamentary session. I really appreciate the level of interest and support across all parties that there is for a Marine Bill. The answer to the specific question is it will appear in the new year. I am acutely conscious of the need to get that done so as to allow for a period of consultation on the draft text because I know most directly from the recent experience with the Climate Change Bill how we have all collectively benefited from scrutiny of a draft Bill in relation to the Climate Change Bill. I do believe it made a good thing better and I want to do the same with the Marine Bill. We want to get on with this as quickly as possible. Keep up the support but I would urge people not to think that somehow the government is not committed because we are resolutely committed to doing what we promised in our manifesto in relation to a Marine Bill.

  Q73  Mark Lazarowicz: You will be aware that the consultation paper on the Bill was written in March 2006. In some quarters there is a difference of opinion between the UK government and some of the devolved administrations which is leading to the delay in the publication of a draft Bill. Is that true or not?

  Hilary Benn: No. We are working on the production of a draft Bill. Different parts of the UK and the Scottish Executive in particular have views about what they would like the Bill to provide for. We want a UK-wide Bill. I want a UK-wide Bill, first point. The second point is that if there are issues about the devolution settlement then there are ways in which the devolved administrations can pursue them. I just hope that they are not going to be played out in relation to the Marine Bill because I would not want a discussion about any change to the settlement to get in the way of us getting a Marine Bill that is effective in providing protection for our seas and what lies beneath them in the way that the government wants to set out. I hope very much that we can reach agreement on this. It is absolutely legitimate for devolved administrations to have a view about what they might want to change but there is a place for dealing with that and, with the Marine Bill, we want to work on the basis of the devolved settlement as it is having regard to any changes that the UK government is happy to make. Above all, I want the Bill. I think we all want the Bill.

  Q74  Mark Lazarowicz: I am sure we would all agree with you on that. Your Fisheries Minister has recently, I understand, called for an increase in cod quotas to deal with the problem of fish dumping. Everyone is concerned, rightly, about fish dumping but does not the position of the government that cod quotas should be increased first of all run at variance with the scientific recommendations about the level of cod quotas for next year and, in any event, would not an increase in cod quotas do nothing really to deal with the problem of fish dumping? Is the real answer not to change the whole quota system? Is that not where the government's attention should be directed?

  Hilary Benn: As I understand it, my colleague Jonathan Shaw has been leading on this and if it would be for the assistance of the Committee I would be very happy to provide you with a note on this[1]. My recollection is that cod stocks have recovered a bit and that is why we are taking the stance that we are in relation to the negotiations that will take place in the Agriculture Council just before Christmas. Can I send you a note on that if that is okay?[2]

  Q75 Jo Swinson: I wanted to turn to the issue of excess packaging which is something that many of our constituents are concerned about. There is obviously a variety of government mechanisms in place to try to deal with this including the voluntary Courtauld Commitment agreements. The thing in particular I wanted to ask about is the legislative tool that we have at our disposal to tackle this issue, the Packaging (Essential Requirements) Regulations. These are being implemented by a number of trading standards offices but I have done a survey of them and they are having great difficulty in finding this to be of any use because the criteria which can be used to justify packaging do not just include getting the product home safely and properly protected but also things like consumer acceptance, product presentation and marketing. Obviously there is carte blanche for marketing departments of multinationals just to create whatever excess packaging they like and they can justify it on the basis that they will sell more products, which is probably true if it takes up more space on a supermarket shelf. Even that, do you think there is an argument to tighten up those regulations and change them so that they can be more useful than they currently are?

  Hilary Benn: This is an important issue and it is one—I agree with you—that some consumers are increasingly concerned about. What I think we have to recognise is that the regulations have enabled us to make some progress in increasing the recycling rate. They have succeeded in raising the rate in the UK for packaging waste that has been recycled from about 27% 10 years ago to nearly 50%.

  Q76  Jo Swinson: I think we are talking about different regulations. I think that is the producer responsibility.

  Hilary Benn: Are you talking about the essential requirements?

  Q77  Jo Swinson: Yes, the essential requirements.

  Hilary Benn: As I understand it, a number of companies have already been prosecuted. You mentioned trading standards.

  Q78  Jo Swinson: There have only been four prosecutions.

  Hilary Benn: I hope others will look at that and if they have not abided by the requirements of the regulations that will encourage them to do more.

  Q79  Jo Swinson: I think the problem that trading standards are finding is that it is very difficult to bring forward a prosecution just because the regulations are so wide and something can be justified on the basis of marketing so there might be more products left as a result of packaging. That is seen to be all right. Do you not think we need to change it so that essential packaging requirements are about what is essential?

  Hilary Benn: What I can tell you is that DG Environment is aware of the issue and is proposing to undertake a study which is going to reflect on the experience not just in the UK but across all of the Member States, which will leave them to decide whether there needs to be a revision either to the essential requirements or to have more effective enforcement measures. The point is understood and there is a process of trying to look at that. I hope that is helpful.


1   See Ev 18. Back

2   See Ev 18. Back


 
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