Memorandum submitted by the Department
for Environment, Food and Rural Affairs
INTRODUCTION
Defra welcomes the opportunity to provide evidence
to the Environment, Food and Rural Affairs Committee inquiry into
the Government's implementation of the Nitrates Directive in England.
This evidence will provide a summary of the
current status of implementation and on proposals for future implementation
as set down in the recent consultation, with particular reference
to matters in which the Committee has indicated a specific interest.
1. BACKGROUND
1.1 Water pollution from nutrients such
as nitrates is a recognised problem which has a negative impact
on the quality of our waters and the ecosystems they support.
In addition, the costs for treating water to meet drinking water
standards on nitrates are high: in the period 2005-2010, it is
estimated expenditure will be £288 million in capital costs
and £6 million per year in operating costs. Agriculture is
a major contributor to the problem (over 60% of nitrates in surface
waters) and the Government's principal regulatory tool for tackling
the issue is through Regulations which implement the EU Nitrates
Directive.
1.2 The Directive, adopted in December 1991,
is specifically aimed at protecting waters from nitrate pollution
from agriculture. Annex A provides a summary of its main provisions.
The key elements are to protect waters which are, or are likely
to become polluted, by identifying those waters, designating land
draining to them as Nitrate Vulnerable Zones (NVZs) and applying
an Action Programme of mandatory controls on the management and
use of manures and fertilisers within those zones. The Directive
requires member states to take a precautionary approach to implementation
and is prescriptive in defining the actions to be taken. A review
of the designated areas and the Action Programme is required at
least every four years.
2. IMPLEMENTATION
IN ENGLAND
2.1 Our approach to initial implementation
of the Directive was based on "high risk" assessment,
both in relation to the designation of NVZs and the Action Programme
measures. Implementation did not fully meet the timetable set
down in the Directive.
2.2 While the Directive allows member states
to apply Action Programme measures across the whole of their national
territory, England has opted to designate specific NVZ areas.
Regulations making the first designations (covering 8% of England)
were made in March 1996. A ruling in 2000 from the European Court
of Justice that our designations were inadequate (the designation
assessment in 1996 focused on drinking water sources only) led
to further Regulations being made in October 2002, based on an
assessment of all waters. This increased the designated area in
England to the current 55%.
2.3 Regulations establishing the initial
Action Programme were made in May 1998. There was insufficient
data available for an effective four-yearly review to be undertaken
in 2002; as a consequence, the measures introduced in 1998 constitute
the current Action Programme for NVZs.
3. COMMISSION
INTERVENTION
3.1 The EU Commission has concerns about
some aspects of our current Action Programme and designated areas
and these have been formalised in ongoing legal proceedings.
4. CONSULTATION
AND TIMETABLE
FOR FUTURE
IMPLEMENTATION
4.1 We have recently completed reviews of
the designated areas and the Action Programme. A consultation
on proposals to give effect to the outcome of the reviews was
launched in August 2007 and closed on 13 December (extended from
13 November because of foot-and-mouth and bluetongue outbreaks).
The timetable at launch envisaged revised Regulations being made
in April, but the Regulations are not now expected to come into
force until later in the Spring.
4.2 Farmers in existing NVZs will need to
meet revised requirements once the Regulations come into force.
However, for practical reasons, some measures will need to be
phased in: for example, it is proposed that the storage capacity
requirement should be implemented over two years. Aside from any
phasing-in provisions, farmers whose land is newly designated
as an NVZ will have a year from the date of the Regulations coming
into force in which to comply with the Action Programme.
5. NVZ DESIGNATIONS:
REVIEW AND
CONSULTATION PROPOSALS
5.1 Evidence from the recent review indicates
that we need to extend the designated NVZ area to about 70% of
England. This is due mainly to an increase in nitrate pollution
in some areas of the country, but also because improvements in
modelling techniques have enabled assessment of more water bodies.
5.2 If a decision is taken to continue the
discrete designation approach, extending the NVZ area to reflect
the outcome of the review is the minimum action we need to take
to meet our obligations under the Directive. The consultation
indicates that we propose to put in place an appeals mechanism
whereby farmers whose land is newly-designated as an NVZ can challenge
the designation if they have evidence to demonstrate that the
land does not drain to a polluted water. The consultation also
seeks views on defining the circumstances in which de-designation
of NVZs could be considered in the future.
5.3 As the Directive allows member states
to apply the Action Programme across the whole of their national
territory, we have taken the opportunity in the consultation to
seek stakeholders' views on the two approaches to designation,
that is, whole territory vs discrete designations. If a decision
is ultimately taken to apply the Action Programme across the whole
of England, all farmers in England would be affected by the proposals
relating to the Action Programme.
6. THE ACTION
PROGRAMME
Review
6.1 The recent review of the current Action
Programme has shown that measures are not achieving an overall
consistent downward trend in nitrate losses and a recent study
by the EU Commission shows the UK as having one of the highest
levels of nitrate loss in the EU (under its former constitution
of 15 member states).
6.2 Aside from some localised reductions
in recent years, nitrate concentrations in England's ground and
surface waters remain high in many parts of the country, with
levels in some waters often exceeding 50 mg per litre. There are
also a number of water bodies continuing to display signs of eutrophication,
so there is still some way to go before our waters achieve their
full environmental and ecological potential.
6.3 Work commissioned specifically to assess
the effectiveness of current Action Programme measures showed
that the current measures are unlikely to effectively reduce agriculture's
contribution to nitrate loss to waters at the national scale.
It is estimated that the current Action Programme, fully implemented,
would reduce mean nitrate concentrations in NVZs by just 2-7%
overall.
6.4 On the basis of the review findings,
we have concluded that the current Action Programme needs revising.
Consultation proposals
6.5 Throughout the review, we have actively
engaged with stakeholders in farmer workshops and wider stakeholder
meetings. Their views have been taken on board in developing the
proposals and we have also taken into consideration the points
raised by the Commission.
6.6 The proposed revisions and supporting
evidence are set out in detail in the consultation and accompanying
documents. All of the revisions, apart from the cover crops proposal,
are measures which the Directive prescribes must be included in
the Action Programme. However, the Directive does allow member
states some discretion in defining the detail of the measures
and we have made full use of those discretions in drawing up the
proposals. Our aim is to achieve a balance between sustainable
and efficient farming practices—retaining as much flexibility
for farmers as possible—and respecting the need to achieve
the environmental objectives of the Nitrates Directive.
7. COSTS AND
BENEFITS OF
KEY PROPOSALS
7.1 The partial Regulatory Impact Assessment
issued with the consultation considers the impact, in terms of
costs and benefits, of the most significant proposals for revisions
to Action Programme measures and how this impact varies depending
on the extent of NVZ designation (70% v 100%).
7.2 Quantifying environmental benefits is
difficult but predictions are that the main proposals in the revised
package of measures will reduce nitrate losses by 5.5-15.5%. As
this calculation did not consider all the proposed measures, the
actual percentage change is expected to be greater.
7.3 Although ammonia emissions are predicted
to increase by 0.2-2%, this is likely to be an overestimate and
other options we considered for the Action Programme were predicted
to result in even greater losses.
7.4 The estimated overall cost to the agricultural
sector from the proposed revisions ranges between £35.5—£80.8
million and £52.8—£105.9 million (the lower range
taking account of savings from mitigation measures) and is largely
due to the impact of the following measures:
— Whole farm nitrogen loading
limit from livestock manure of 170kg/ha—(farmers may have
to purchase/rent additional land and/or reduce livestock numbers).
— Slurry storage capacity requirement—farmers
may need to construct extra storage facilities to enable them
to comply with an extended closed period and have contingency
capacity to cover unsuitable spreading conditions.
7.5 Further work on costs and benefits has
been undertaken since the consultation was issued and a report
is due shortly. The findings will be incorporated into the Impact
Assessment which will be issued with the revised Regulations.
8. CONSULTATION
OUTCOME
8.1 Consultation responses (about 700) are
still being analysed. We shall be carefully considering those
responses and where there is scope for refinement of the proposals
in line with the discretions allowed by the Directive, we shall
make amendments. As the cover crops proposal is not a mandatory
Directive measure for the Action Programme, we could consider
going beyond refinement and dropping it completely, although if
we decided on the latter, we may need to consider how to compensate
for the loss in environmental benefits which this measure is expected
to deliver.
9. ADVICE AND
SUPPORT FOR
FARMERS
9.1 To ensure that farmers are aware of,
understand, and are able to fulfil their obligations under the
proposed Regulations, the Department has planned an extensive
programme of advice and guidance, including support software.
9.2 We are committed to making an application
for a derogation from the 170kg/ha whole farm nitrogen loading
limit. If granted, it would substantially relieve the immediate
economic pressure on livestock farmers. We cannot assume that
our application will be approved by the Commission, nor that our
evidence will justify seeking approval for a 250kg/ha limit. We
will be making an announcement regarding arrangements/requirements
while our derogation request is going through the application
process.
9.3 We are not intending to establish a
capital grant scheme to help with constructing manure storage
facilities because past experience has shown that this can lead,
for example, to increased supply prices and merely postpone the
impact of market forces. It also goes against the "polluter
pays" principle and we prefer to avoid putting public funds
towards securing compliance with regulatory standards. However,
a lead-in period for getting adequate storage in place is proposed
and advice and guidance will be available to assist farmers in
correctly assessing the storage capacity they need for compliance.
9.4 Under the Rural Development Programme
for England 2007-2013, all farming sectors are eligible for support
for improving skills and productivity. In addition, there is a
specific package of support worth around £100 million over
the Programming period targeted at the livestock sector and aimed
at improving competitiveness, animal welfare and on-farm management
of nutrients. If storage facilities are an integral part of an
innovative, sustainable project (eg anaerobic digestion) and achieve
outcomes beyond meeting regulatory requirements, the Regional
Development Agencies may choose to fund that element of the project.
10. RELATED ISSUES
Anaerobic digestion and managing manure
10.1 The Government is committed to making
the most of the potential of anaerobic digestion to contribute
to our climate change and wider environmental objectives, including
to the management of manure. The UK Biomass Strategy and the Waste
Strategy for England, which were published in May 2007, include
details of how we will work with stakeholders to drive a faster
growth in the use of this technology by local authorities, businesses
and farmers, in a way that is both cost effective and beneficial
to the environment. We aim to stimulate and develop the markets
for anaerobic digestion and its products and to address the administrative
and technical challenges which may hamper its development.
10.2 Electricity from anaerobic digestion
is eligible for Renewable Obligation Certificates (ROCs). The
Government is seeking through the Energy Bill to introduce differentiated
support levels for different renewables technologies (known as
"banding"). We announced on 10 January that anaerobic
digestion would be among the technologies that would receive additional
support in the form of two ROCs/MWh.
10.3 Aside from support under the Rural
Development Programme, anaerobic digestion projects are also eligible
to apply for support under the Bio-energy Capital Grants Scheme.
This scheme supports the installation of biomass-fuelled heat
and combined heat and power projects in the industrial, commercial
and community sectors in England. The current round of the scheme
is closed to application but we hope to make an announcement on
further rounds in the near future.
10.4 The Environment Agency and WRAP (Waste
and Resources Action Programme) aim to develop a standard and
protocol for digestate by Spring 2008. The objective is to help
facilitate the development of the market for digestate as a fertilizer
and soil conditioner. WRAP are supporting the development of the
market for digestate, alongside its work to establish markets
for waste-derived compost.
10.5 We will work with stakeholders to develop
and disseminate information on best practice and technology for
the use of anaerobic digestion, for example through Defra's New
Technologies Demonstrator Programme and through advice to farmers.
Entry Level Stewardship agreements in existing
Nitrate Vulnerable Zones
10.6 Subject to decisions following the
recent consultation on proposals for revising the NVZ areas and
the Action Programme, all farmers in NVZs will have to meet new
and higher standards, irrespective of whether they are in Environmental
Stewardship or a similar agri-environment scheme. Those with existing
Entry Level Stewardship agreements entered into before 1 January
2007 will continue to receive payments as before, and their agreements
remain unchanged. Those farmers in existing NVZs who have a provisional
Entry Level Stewardship agreement (ie an agreement entered into
after January 2007) will now have to meet scheme requirements
related to the proposed revisions to the Nitrates Action Programme.
February 2008
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