§ Mr. ClappisonTo ask the Secretary of State for the Environment, if he will publish details of the annual on-going compliance costs for new regulations affecting business for which his Department has completed compliance cost assessments.
§ Mr. Robert B. JonesDetails of the on-going compliance costs relating to new domestic and European Community legislation in 1993 are as follows:
The Environmental Protection (Controls on Injurious Substances Regulations 1993
These regulations restrict the marketing and use of specified substances such as lead carbonate and lead sulphate in paint in order to reduce risks to the environment and human health. Annual compliance costs to industry are estimated to be £50,000 for changing to alternatives for the few remaining uses where alternatives had not already been introduced by 1993.
The Environmental Protection (Controls on Injurious Substances) (no. 2) Regulation 1993 (Cadmium Directive)
The compliance cost assessment of 16 June 1993 estimated costs to business of restricting the use of cadmium at £200,000 over 3 years. Assuming a linear decline in the cost differential, the annual costs are estimated as:
- 1993–94 £100,000
- 1994–95 £66,000
- 1995–96 £33,000
The Boilers (Efficiency) Regulations 1993
Estimated initial costs incurred by manufacturers will be approximately £25 million, with annual costs thereafter of £750,000. These costs will be passed on to purchasers, but will be more than offset by the consequential savings from greater fuel efficiency which are expected to rise over 20 years to over £23 million, a year.
265WThe Transfrontier Shipment of Radioactive Waste Regulation 1993
The regulations apply only to a narrow class of radioactive waste travelling in to and out of the United Kingdom. Compliance costs for the small number of shipments affected are limited to filling in the forms necessary to obtain authorisation for such a shipment to take place. This cost is estimated to be in the region of £150 per application, which is minimal in the context of the typical value of contracts, likely to be affected by the regulations. Conditions imposed on an authorisation or approval granted under the regulations may not be stricter than those that would be imposed upon a purely domestic shipment of radioactive waste. The regulations came into force on 1 January 1994—implementing EC Directive 92–3/Euratom—and no applications have so far been made under them.
The Local Authorities (Recovery of Costs for Public Path Orders) Regulations 1993
The estimated cost for all applicants is £1.2 million—£1.5 million per year, not taking account of any refunds or waivers conceded in particular cases. The cost to business was not identified separately.
The European Community Substances Regulation 793/93 (and draft Notification of Existing Substances (Enforcement) Regulation 1994)
Estimated compliance costs are £11 million to £48 million for 1993–99 and thereafter under £1 million per year representing the cost of reporting data on substances to the Community for priority-setting and risk assessment of priority substances. Industry will supply information about significant new costs if any. Annual collection of data would not be cost-effective because it would place too high a burden on industry and the Department.
The Directive on Control of Volatile Organic Compound (VOC) Emission Resulting from the Storage of Petrol and its Distribution from Terminals to Service Stations (the so-called 'Stage 1' Directive)
Total non-recurring costs to industry shown in the compliance cost assessment are between £332.8 million and £357.8 million. Total recurring costs are expected to be between £105.2 million and £113.1 million. A proposal for a further directive—stage 2—is expected later in 1994, and a CCA will be provided.
The Council Regulation on Substances that Deplete the Ozone Layer
The regulation is not likely to come into force before the end of 1994. Estimated costs to the refrigeration and air conditioning industry of changing from transitional HCFCS to non-ozone depleting alternatives were around £110 million at current prices. These costs will be staggered over time as equipment becomes obsolete. The foam-blowing industry will be the other major sector involved; the main issue here is not the cost of compliance but rather the increased flammability risk involved in alternative processes.
The Hazardous Waste Incineration Directive
Most of the hazardous waste incinerators are in the private sector where costs can be recovered.
I have also placed in the Library details of compliance costs for legislation passed before 1993 for which compliance cost assessments were completed.