§ Baroness Byfordasked Her Majesty's Government:
Further to the letter of 21 October 2003 from the Baroness Hollis of Heigham to the Baroness Byford, 228WA what will be the effect on small and medium-sized businesses of the European Union Directive on Environmental Liability. [HL4939]
§ Lord WhittyThe costs and benefits of the directive are currently being reassessed by my department in preparation for transposition. The previous regulatory impact assessment, of 2002, suggested total costs of the directive in the UK across all sectors, including enforcement, of between £18 million and £52 million. This was based on the number of incidents in a given year which would have fallen within the scope of the proposal. Current indications are that the costs for the directive could be lower. It is not possible at this stage to be certain of the effect of the directive on small and medium-sized businesses, but in the light of the likely overall impact, this is expected to be low. Businesses will bear costs under the directive only if they take precautionary measures to reduce their risks of causing significant damage or, where damage does occur from their operation, the cost of remediation measures. This is entirely in accordance with the polluter pays" principle, which is the cornerstone of the directive.