Environment Agency (Hansard, 20 March 1997)

§ Mr. Clappison

Subsection 250(5) of the Local Government Act 1972 enables the Secretary of State to make an order as to the costs of the parties at an inquiry and as to the parties by whom the costs are to be paid. Subsection 53(2) of the Environment Act 1995 applies subsection 250(5) of the 1972 Act to inquiries and other hearings held in connection with the functions of the Environment Agency or the Secretary of State's functions in relation to the agency. These include appeals over integrated pollution control authorisations and waste management licences under the Environmental Protection Act 1990, waste carrier licences under the Control of Pollution (Amendment) Act 1989, and abstraction licences and discharge consents under the Water Resources Act 1991.

The parties at these hearings are normally expected to meet their own expenses irrespective of the outcome. Costs are awarded only on grounds of "unreasonable" behaviour resulting in unnecessary expense. An award of costs does not therefore follow the event of the decision on merits.

In considering the award of costs, the Secretary of State will apply by analogy the guidance on award of costs in planning proceedings in DOE circular 8/93 (Welsh Office 23/93). The circular includes a summary of the criteria for unreasonable behaviour and advice on the general principles for awards of costs for unreasonable behaviour, general procedural requirements, and applications for costs.

Section 53 of the 1995 Act enables costs to be awarded only in cases where a hearing is held. Unlike planning proceedings, costs are not available where a hearing is cancelled due to a party's withdrawal.

Subsection 250(5) of the 1972 Act does not apply to proceedings in connection with local authority air pollution control decisions under part 1 of the Environment Protection Act 1990. Consideration will be given to seeking such provision in due course.