Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by the Department for Environment, Food and Rural Affairs

Question 42 (Annette Brooke): Response to Greenpeace's note on unsustainable wood used in government buildings

  All central government departments and their executive agencies are required to actively seek to purchase their timber from legal and sustainable sources. The model condition of their contract, which departments are advised to use, obliges all government contractors to supply legally harvested timber and to produce credible evidence of the source if requested. In the absence of proof of legal harvesting of timber from high risk countries it is reasonable to speculate that some or all of the timber may have been illegally harvested.

  In the seven years that the policy has been operational Greenpeace has made public demonstrations of possible non-compliance with this policy in three instances. The refurbishment of 22 Whitehall, the new build Home Office HQ at Marsham Street and the refurbishment of Admiralty Arch. Greenpeace has exposed other instances of supplies to public sector bodies, including the Palace of Westminster, of timber that may have been illegally harvested but these bodies are no subject to the Government's policy.

  The Government has learnt valuable lessons from each incident and has sought to tighten procedures and improve guidance as a result. Non-compliances are most likely to occur on building sites and are often due to a lack of understanding within the supply chain. Mistakes are then compounded by lapses in supervision. The Government and its appointed Central Point of Expertise on Timber (CPET) is currently working with a number of companies in the construction and facilities management sector to develop measures for better management of sub-contractors in their timber purchasing practices. In addition, CPET runs training workshops that are freely available to public sector bodies and their suppliers.

  The Government is determined to minimise the risk of illegally harvested timber inadvertently getting into its supply chains. In this respect Greenpeace and other environmental NGOs have made a very positive contribution to development of the policy, as has the UK timber trade.

Question 70 (Mr Philip Dunne): Government Carbon Offsetting Fund (GCOF) for air travel

  The Government Carbon Offsetting Fund covers all central government departments (apart from FCO, who operate their own offsetting scheme for air travel). Defra is finalising a contract with EEA Fund Management who will provide up to 305,000 Certified Emission Reductions (CERs) by the end of April 2009. These CERs will be used to offset emissions attributable to official and ministerial air travel between April 2006 and April 2009. Each CER will cost £9.91, resulting in a total potential cost of £3,022,550. The final actual cost is dependant on the quantity of CO2 needing to be offset over the period of the scheme, which cannot be determined until April 2009.

  The cost of offsetting through the GCOF is met by each participating member of the scheme. It is at their discretion which budgets the payments come from. In that sense, there is not an overarching budget established across government. However, departments are aware of the likely financial commitment to the scheme.

ESTIMATED DEPARTMENTAL CONTRIBUTIONS


  This was drawn up during preparation of the scheme. It is important to be aware that actual and more up to date data is now being reported by departments.

  We also discussed during the evidence session the potential cost of implementing the policy to make the central government office estate carbon neutral by 2012. Based on estimated carbon emissions data from offices during 2005/06, the total cost of offsetting for the office estate (based on offsetting costing £10 per tonne of carbon) is in the region of £7.3 million. Clearly the final cost will depend on many factors.

Question 81 (Mr Philip Dunne): Defra organisational chart on officials that advise on sustainable development in buildings
DepartmentAmount of Carbon Dioxide pa/tonnes Number of CERs to be purchased (including full climate impact) GCOF Contribution at £10 per CER/£pa
Department for International Development 8,67617,351173,515
Ministry of Defence7,583 15,166151,659
HMRC4,1558,310 83,105
Department for Trade and Industry3,404 6,80868,075
Home Office2,3624,723 47,234
Department of Work and Pensions1,997 3,99339,930
Treasury1,6623,324 33,242
Department for Environment Food and Rural Affairs 1,3502,70027,000
Department of Health955 1,91019,095
Cabinet Office8181,636 16,360
Department for Transport520 1,03910,391
Office of the Deputy Prime Minister340 6796,795
Office of National Statistics190 3813,809
Department for Education and Skills148 2962,960
Law Officers Department CPS228 4574,568
DCMS151302 3,023
Law Officers Department SFO133 2662,664
Department for Constitutional Affairs139 2792,785
Office of Government Commerce111 2222,216
ECGD128257 2,566
CEFAS80159 1,593
LSLO3060 603
GAD2346 457
Debt Management Office4 883
Total35,186 70,373703,729


  This chart illustrates how we take forward work on delivering sustainable development on the DEFRA estate. I have 28 people working in estates division, a team of 8 will be in the Sustainable Procurement and Operations Policy Programme, and 7.4 working on procurement. It is important to note that Defra does not provide specific policy advice on sustainable operations in buildings, but rather helps to develop the outcomes central government should be aspiring towards. Implementation is take forward by Departments supported at the centre of government by OGC.

Question 89 (Mr Philip Dunne): Salix Finance

  Salix Finance was set up in 2004 to provide finance to allow the public sector to invest in energy saving measures. Its business model is designed to help overcome the funding and accounting barriers to investment confronted by the public sector.

  Salix is an integral part of the UK's Climate Change Programme and has been allocated Defra and Welsh Assembly funding of up to £25 million between 2004 and 2008.

  Salix provides funding of typically £250,000 to each public sector client. This is matched by clients and fed into a ring-fenced fund to be spent on individual energy saving and renewable projects with a payback of less than five years—such as boilers, lighting, insulation and controls. Salix also provides much wider advice and support to help organisation set up and manage the funds and deliver the projects.

  The energy savings realised by the projects are returned to the fund until the original project investment is repaid. Repayments are then recycled to other projects so that the fund becomes self sustaining over time. Once the original project loan is repaid the energy savings can be kept by clients and spent on front-line services. Salix's original contribution to the fund can be reclaimed when the organisation runs out of compliant projects. We expect this recycling to take, on average, 7-10 years.

  Salix began as a Carbon Trust pilot in 19 local authorities. However, following an injection of £20 million in the 2005 Pre-Budget Report, Salix is accelerating its funding across the public sector. Currently they have set up funds worth in total around £25 million (including matched funding) with 63 clients, 48 of these were local authorities, 8 universities, 4 NHS foundation trusts and 3 police/fire authorities. The key statistics are:

    —  To date out clients have spent £4.27 million on 560 individual projects, which save 100,000t CO2 over the lifetime of the projects.

    —  In 2006-07 we funded 251 projects costing £2.2 million delivering just over 40,000t CO2 (lifetime).

    —  By the end of the current year we expect to have spent around £16 million out of a total fund size of £40 million.

  Salix has allocated up to £1 million for central government. It has recently begun negotiations to set up funds in 4 departments: DEFRA, the Cabinet Office, DCLG and the National Archives.

  As part of the sustainable procurement agenda Salix is working closely with Defra to understand the barriers to central government investment in energy efficiency and how Salix will contribute in the future.





 
previous page contents

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2008
Prepared 15 January 2008