§ 3. Ian Lucas (Wrexham)What assessment she has made of the effect a tax on incineration set at the same level as the landfill tax would have on the level of recycling carried out by local authorities in England and Wales. [4670]
§ The Minister for the Environment (Mr. Michael Meacher)We have set local authority statutory targets that will almost triple recycling and composting of household waste from the 1998–99 baseline by 2005–06, as my right hon. Friend said. We have set up the waste 1287 and resources action programme to foster markets for recycled materials. We consulted on a system of tradeable permits for biodegradable municipal waste. Given those instruments, I doubt whether an incineration tax is needed at this stage to secure our main priority of diverting waste from landfill to recycling.
§ Ian LucasI am grateful to my right hon. Friend for that reply. Is he aware that there is great concern in my constituency about the relative amount of recycling and incineration outlined in a recent application to site a waste recovery centre there? What steps will the Secretary of State take to ensure that the recycling targets set out in "Waste Strategy 2000" are met and that the amount of future incineration is minimised?
§ Mr. MeacherWhen we set statutory recycling targets, sanctions are attached to ensure that they are achieved. I assure my hon. Friend that they will be. We will keep track of all local authorities to ensure that they are making progress and will want to know why if they are not. We are offering managerial advice as part of the waste resources action programme. If need be, we can take action to put in place managerial systems that will deliver targets in each local authority.
I understand that a waste management private finance initiative project is being considered for Wrexham. A major part of that will be a facility that is designed, built, financed and operated by the private sector and will include incineration. That is still at the procurement stage. The business plan has to be passed by the Minister for Finance in the Welsh Assembly. Planning consent is then needed. However, whatever Wrexham decides, it must meet its recycling targets.
§ Mr. Stephen O'Brien (Eddisbury)As the constituency of the hon. Member for Wrexham (Ian Lucas) neighbours Eddisbury, I have an equal interest in that plant and proposal. How can the Minister square the tax answers, which affect both England and Wales, with the decoupling of planning as a result of the devolution arrangements? My constituents might be most affected by the fallout from that incineration plant but have no rights of representation in the planning process. They are deeply concerned about that.
§ Mr. MeacherThe hon. Gentleman raises the devolution arrangements. It is our view that all reasonable powers should be devolved to the Assembly in the case of Wales and the Executive in the case of Scotland, and that is what we have done. However, tax is not a devolved matter. That is why the recommendation that I understand is in the Welsh draft waste management strategy—the Assembly's initial view—that there should be a tax on incineration will be considered duly by the United Kingdom Government, although the matter is of course entirely for the Treasury.
§ Syd Rapson (Portsmouth, North)My right hon. Friend will be aware of the landfill tax credit scheme, whereby tax is recycled to local partnerships to create environmental schemes for areas that are affected by landfill. There is some concern that that scheme will be 1288 scrapped. I urge the Government to reconsider the effects of doing so, as we in Portsmouth have certainly benefited from it and want it to continue.
§ Mr. MeacherI am well aware of the mixed views on the landfill tax credit scheme. There is no question but that it has benefited many environmental projects, particularly to do with wildlife and biodiversity. Whatever changes might be made in any new arrangements—let me make it clear to my hon. Friend that a decision has not yet been taken—I would be extremely anxious to ensure that such benefits were secured. However, the proportion of the moneys that are raised by the credit scheme that goes into local recycling is not nearly enough. We have used indicative targets to try to increase it, but the issue remains whether that is adequate.
§ Dr. John Pugh (Southport)Will the Minister acknowledge that the way in which waste authorities apportion local council landfill tax is not always fair and equitable? A poor example in that respect is the Merseyside waste disposal authority. Some local authorities charge not by the tonne but by population and council tax banding, and therefore have no financial incentive to recycle. Will he consider tightening guidance given to waste disposal authorities to ensure that those that recycle the most pay the least?
§ Mr. MeacherThe hon. Gentleman makes a good point. The overwhelming thrust of the Government's waste management strategy is to achieve the maximum feasible increase in recycling. He is right that the structure of the allocation of moneys does not always optimise that. We are certainly considering his point.