WRITTEN EVIDENCE
SUBMITTED BY
CBI MINERALS GROUP
(LOCO 076)
SUMMARY
¾ The
CBI Minerals Group represents the minerals extraction industry
within the United Kingdom including all major non-energy minerals
and coal.
¾ The
Group supports decentralisation of public service delivery but
as part of this process it is essential that the primacy of maintaining
an adequate and steady supply of all minerals is reaffirmed by
Government.
¾ The
Group welcomes the recognition by Government that mineral planning
authorities will have responsibility for continuing to plan for
a steady and adequate supply of aggregate minerals to support
economic growth and that they should do this within the longstanding
arrangements for minerals planning.
¾ It is
essential that future arrangements for minerals planning also
take account of indigenous supplies of non-aggregate minerals
ensuring an adequate and steady supply of these nationally important
natural resources.
¾ Unlike
other forms of development, minerals can only be worked where
they naturally occur in economically viable quantities. It is
essential that future arrangements provide for the inter-community
movements of minerals.
¾ It is
essential that the flow of minerals from where they occur and
are extracted to the markets they supply locally, nationally and
internationally is managed.
¾ It is
essential that the "unfit for purpose" development plan
system is improved and not further eroded as this will act as
an unnecessary brake on economy recovery.
¾ The
CBI Minerals Group believes that, in order to maintain an adequate
and steady supply of all minerals, limits should be placed on
localism. This was recognised by the Chief Planner in his letter
abolishing the RSSs for aggregate minerals and in "Open Source
Planning" for other strategic minerals.
¾ The
Government should avoid the introduction of third party rights
of appeal as these will introduce additional uncertainty and cost
with no material gain for local communities.
¾ The
Government should provide local incentives for communities to
accept mineral developments similar to the proposed New Homes
Bonus by directing business rates to local communities and ensuring
the Aggregates Levy Sustainability Funds are more targeted on
the local communities from where the aggregates are extracted.
¾ It is
essential that the Government urgently prepares robust arrangements
to ensure that MPAs continue to make continued adequate and steady
provision for all minerals.
BACKGROUND
1. This submission represents the views of the
CBI Minerals Group.
2. The CBI Minerals Group represents the minerals
extraction industry within the United Kingdom including all major
non-energy minerals and coal. The Group represents some 400 mineral
extraction companies either directly through being members of
the Group or indirectly through member trade associations. The
membership of the Group is contained in Annex 1.
3. The UK Minerals Industry produces about 350
million tonnes of minerals per annum, directly contributes £5
billion a year to the economy, and is essential to provide the
raw materials on which many important industries depend. The non-energy
mineral sector employs over 60,000 people and underpins the £110
billion construction sector. Every £1 invested in construction
generates £2.84 in total economic activity. The coal industry
directly employs over 9,000 people.
4. Minerals are essential for development, and
sustainable development is only achievable by ensuring an adequate
and steady supply of minerals. Adequate supplies are crucial for
the success of key development projects such as the 2012 Olympics
and Crossrail and for meeting the Government's aims for investment
in new infrastructure such as the new generation of nuclear power
stations and high speed rail. Coal is essential for meeting the
country's energy requirements to fuel economic activity and growth
and about one third of UK electricity generation is produced by
coal fired power. China Clay, ball clay and potash are internationally
important minerals and play a vital role in the local economies
where they are produced in addition to making a contribution to
the balance of payments. The importance of the sector to the future
prospects for the economy as a whole cannot be over stated.
5. The CBI Minerals Group welcomes the opportunity
to make a submission to the Inquiry by the Communities and Local
Government Committee. This submission focuses on the following
terms of reference of the Committee and, in particular, on the
impact on the mineral planning system:
¾ The
extent to which decentralisation leads to more effective public
service delivery; and what the limits are, or should be, of localism;
¾ The
action which will be necessary on the part of Whitehall departments
to achieve effective decentralised public service delivery;
¾ What,
if any, arrangements for the oversight of local authority performance
will be necessary to ensure effective local public service delivery.
MAINTAINING AN
ADEQUATE AND
STEADY SUPPLY
OF MINERALS
6. In their submission to the inquiry on the
abolition of regional special strategies, the CBI Minerals Group
while supporting the revocation of RSSs, stressed it is essential
that the primacy of maintaining an adequate and steady supply
of all minerals should be reaffirmed by Government. We welcomed
the recognition in the Chief Planner's letter of 6 July 2010 announcing
the revocation of RSSs, that mineral planning authorities will
have responsibility for continuing to plan for a steady and adequate
supply of aggregate minerals to support economic growth and that
they should do this within the longstanding arrangements for minerals
planning with the assistance of the technical advice provided
by the Aggregate Working Parties. We also welcomed the undertaking
given that the Government will work with the minerals industry
and local government to agree how minerals planning arrangements
should operate in the longer term. We will fully cooperate with
this work.
7. For decentralism to lead to more effective
public service delivery and in particular to delivering effective
mineral planning decisions, we believe it is essential that future
arrangements for minerals planning must also take account of indigenous
supplies of non-aggregate minerals ensuring a steady and adequate
supply of these nationally important natural resources.[29]
They are essential raw materials for sustaining the country's
energy supplies, construction industry, industrial base and the
economy as a whole.
8. The safeguarding of mineral resources and
the mineral distribution infrastructure such as railheads, wharfage
and other handling facilities is essential to ensure the continued
sustainable supply of these raw materials to where they are needed.
9. Unlike other forms of development, minerals
can only be worked where they naturally occur in economically
viable quantities. It is essential that future arrangements provide
for the inter-community movements of minerals. For example; the
continued development in the south east of the country is wholly
dependent on imported crushed rock from the midlands and the south
west and the glass industry is dependent on high quality silica
sand that occurs only in a very few locations in the country.
It is also important that full recognition is given to the benefits
of using indigenous resources. These provide increased certainty
in terms of the supply chain and are less volatile to global market
variations.
10. It is essential that the flow of minerals
from where they occur and are extracted to the markets they supply
both locally, nationally and internationally is managed particularly
as nationally significant minerals with specialist uses are very
restricted in where they occur in economically viable quantities.
Future supply will not be maintained through local decision making
only and a robust national policy framework is essential.
11. The managed aggregate supply system (MASS)
has provided an essential framework to meet the imbalances in
supply and demand for construction aggregates at a national level
for over 30 years. MASS, which is enshrined in Mineral Policy
Statement 1: Planning and Minerals (MPS1) balances the need
to assess resources and forecast demand with the economic, social
and environmental impact of mineral working on local communities.
It is essential that this system is retained.
12. The existing Mineral Policy Statements provide
essential guidance for effective planning for particular minerals
at a local level—by way of example Annex 2 of MPS1 sets
out the planning policy framework for brick clay. It is
essential that the policy framework that these key planning documents
contain is retained.
13. The current plan lead system is not delivering
the local mineral development plan frameworks essential to give
sufficient certainty to encourage the minerals industry to commit
future investment in the sector. It is essential that this "unfit
for purpose" development plan system is improved and not
further eroded as this will act as an unnecessary brake on economy
recovery.
14. There is evidence on the ground that the
abolition of RSS's and the impending Localism Bill has given a
"green light" to some mineral planning authorities to
go it alone and some have used the uncertainties to further delay,
and in some instances halt, the preparation of their Mineral Framework
Documents adding yet further inertia to the system. It is essential
that the Government urgently prepares robust arrangements for
maintaining a steady and adequate supply of all minerals. The
Minerals Group will cooperate fully in this work.
The extent to which decentralisation leads to
more effective public service delivery; and what the limits are,
or should be, of localism
15. The policy green paper "Open Source
Planning" states that "We would, therefore, look to
repatriate the determination of the amounts of minerals required
back to Minerals and Waste Planning authorities, subject to environmental
standards to ensure that each authority makes its provision in
a fair and sustainable way." It is also states that: "Exception
would be made for nationally strategic deposits of minerals, where
responsibility for determining amounts would rest with the Secretary
of State".
16. As stated above, The CBI Minerals Group believes
that, in order to maintain an adequate and steady supply of all
minerals, limits should be placed on localism. This was recognised
by the Chief Planner in his letter abolishing the RSSs for aggregate
minerals and in "Open Source Planning" for other strategic
minerals. Clarity of what mechanism will be used to determine
amounts of nationally strategic minerals is urgently needed. Industry
needs to be involved, and is very happy be involved, in this process.
The action necessary on the part of Whitehall
departments to achieve effective decentralised public service
delivery in respect of mineral planning
17. The action necessary is:
¾ Provide
clear national policy statements, including in the proposed National
Planning Framework, covering need and a commitment to ensuring
a secure and steady and adequate supply of all indigenous minerals.
¾ Provide
continued both financial and policy support for Aggregates Working
Parties to undertake their technical, monitoring and advisory
role, with national coordination of these.
¾ Ensure
that MPAs continue to make adequate provision in their development
plan documents for all minerals.
¾ Speed
up the decision making system for dealing with mineral planning
applications. The average timescale for mineral & related
applications to go through the planning system is far too long.
¾ Avoid
the introduction of third party rights of appeal as these will
introduce additional uncertainty and cost. The current plan led
process takes full account of the views of local communities which
are again taken into account at planning application process.
The arrangements for the oversight of local authority
performance necessary to ensure effective local public service
delivery in respect of mineral planning
18. The arrangement necessary for oversight of
local government performance in respect of mineral planning is
as follows:
¾ The
continued support for a framework for apportioning provision between
MPAs, preferably through continuation of Aggregates Working Parties
(AWPs), particularly to undertake monitoring and advising on provision
at MPA level.
¾ The
coordination of AWPs at national level to address issues arising
from the inability of some areas to sustain production in an acceptable
manner.
¾ The
provision of clear planning advice to MPAs on ensuring provision
is based on advice of AWPs and that they cooperate across boundaries.
¾ The
provision of local incentives for communities to accept mineral
developments similar to the proposed New Homes Bonus, where the
Government will match the council tax raised on each new house
for six years, and onshore wind farms. Similarly business rate
from new mineral operations should be directed to local communities.
For example coal workings currently pay business rates to the
Treasury of 51p per tonne per year for every tonne extracted.
(The average surface mine is about 1.5mt with an annual production
of about 300,000tpa. This would inject £153,000pa into a
local community).
¾ For
the aggregate sector, it is essential that the funds raised through
the Aggregates Levy Sustainability Funds are more targeted on
the local communities from where the aggregates are extracted.
October 2010
ANNEX 1
MEMBERS OF THE CBI MINERALS GROUP
Aggregate Industries Ltd (Holcim Group)
Alliance Environment and Planning Ltd
HJ Banks Mining
British Aggregates Association
British Ceramic Confederation
British Geological Survey (observer status only)
British Gypsum Ltd (BPB United Kingdom Limited)
Cemex UK Ltd
Confederation of UK Coal Producers
The Crown Estate
Entec UK Limited
Gerald Eve
GVA Grimley LLP
Hanson UK (HeidelbergCement Group)
Imerys
Knights Solicitors
Lafarge
Mills & Reeve Solicitors
Mining Association of UK
Mineral Industry Research Organisation (MIRO)
MJCA Consultants
Nabarro Solicitors
Mineral Products Association
Sibelco UK Ltd
SLR Consulting Ltd
Stephens Scown Solicitors
Tarmac Ltd (Anglo American)
UK Coal Ltd
Wardell Armstrong
29 Non-aggregate minerals extracted in England on which
industry depends include gypsum, fluorspar, industrial grade silica
sands, limestone, salt, potash, ball clay, Etruria marl, fire
clay, china clay and coal. Back
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