Water Framework Directive (Hansard, 24 July 2001)

§ Lord Whitty

Estimates were prepared in 1998 to illustrate possible costs for notional average farms of reducing diffuse pollution. These assumed an average compliance cost of approximately £175 per hectare per annum for arable land and £117 per hectare per annum for grassland. These costs would be incurred annually from 2012 at the latest, when all measures required by the directive have to be operational.

230WA

These figures did not relate to actual costs to farmers necessary to meet the directive's objectives in relation to specific measures to control agricultural pollution. This is because the need for, and use of such additional measures, has yet to be decided. The figures were based on data from a range of area-based schemes to compensate farmers for income lost as a result of changes to agricultural practice. The amount of compensation awarded provided an indication of the costs to farmers of implementing best agricultural management schemes in order to reduce pollution.

The estimated average compliance costs do not apply to all farms and should not be assumed to apply to the whole area of any farm where a reduction in diffuse pollution was judged to be necessary. This is because action should not be required on all farms to meet the directive's objectives, nor the whole area of every farm where some action is needed.

The above costings therefore remain fairly speculative in nature and the Government recognise the need to update them where possible. A more accurate assessment of costs to different farm types will be possible once the Government have assessed what are the full range of additional measures necessary to address diffuse pollution from agriculture, and to what extent they would need to be used to meet the directive's objectives by 2015. The Government plan to consult on the need for additional measures in England to control diffuse agricultural pollution and other implementation issues later this year or early in 2002. Revised costings can then be provided alongside the publication of the draft implementing regulations for the directive in 2002 or early 2003. In the meantime, the Government are considering what more can be done to update and improve the 1998 estimates.