POLLUTION CONTROL: REVISED CHARGES (Hansard, 25 March 1993)

§ Lord Strathclyde

Charges to cover the costs of regulating processes under Integrated Pollution Control (IPC) and premises subject to Radioactive Substances Act 1960 (RSA60) regulation were introduced in 1991 under the Environmental Protection Act 1990. The Act requires Her Majesty's Inspectorate of Pollution to balance costs and income, taking one financial year with another.

With the agreement of the Treasury, and following consultation with industry and other bodies, my right honourable friend the Secretary of State for the Environment has now made revised IPC and RSA60 charging schemes, specifying the revised scales of fees and charges which will take effect from 1st April 1993. I have placed copies of the revised schemes in the Library.

31WA

In 1991/92, the time and cost involved in the assessment of applications was underestimated in setting the fees and charges, and costs were substantially under-recovered. For 1992/93, therefore, rates were significantly increased. At the same time, HMIP set itself tough targets for reducing application handling times. These targets are being achieved and there is no need for a real terms increase in the 1993/94 fees and charges over those set for 1992/93. The increase for 1993/94 in the rate per component for each aspect of HMIP's work averaging 2½ per cent., allows only for the effect of inflation on HMIP's costs.

The form of the schemes remains the same as in earlier years. For IPC, the scheme comprises an application fee to cover the cost of assessment of the operator's proposals and preparation of the authorisation; an annual subsistence charge for holders of authorisations, to cover the costs of inspection and oversight of the plant; and a variation fee to cover the costs of assessment of any proposals for substantial variation to a process.

The application fee for 1993–94 is £2,500 per component for processes which have previously been subject to air pollution control and £3,750 per component for processes coming under regulation by HMIP for the first time. The variation fee is £1,250 per component, and the annual subsistence charge is £1,540 per component.

Under the RSA60 charging scheme, nuclear licensed premises are billed individually on the basis of regulatory time spent and costs incurred at each site. The charging rate for 1993–94 will be £965 per inspector day.

Non-nuclear premises are charged on the basis of flat-rate fees on a similar basis to the IPC scheme, covering applications, substantial variations and subsistence. For premises authorised to accumulate and dispose of radioactive waste ("Band 3 premises" —for example, research establishments and major universities) the application and variation fee will be £1,385 and the subsistence fee £820. For those premises authorised to accumulate and dispose of small quantities of substances, or substances with a lesser risk, a lower subsistence charge of £80 has been introduced. For premises registered to keep and use radioactive material ("Band 4 premises"—for example, industrial users of radioactive sources) the application and variation fee will be £500. The 32WA subsistence fee for Band 4 premises will be £80, but the majority of such premises will be exempt from this payment because they handle small sources and do not require routine inspection.

Because of the under-recovery of costs in 1991–92, the 1992–93 schemes included a supplementary subsistence charge in respect of authorisations and registrations arising from applications made in 1991–92. These supplementary charges will continue in 1993–94 at the same rate as in 1992–93: under IPC, £610 per component for 1991–92 applications charged at the full rate, £410 for those charged at the reduced rate; under RSA60, £210 and £80 for Band 3 and Band 4 premises respectively. There will be no supplementary charge following from applications made in 1992–93.