HC Deb 19 September 2002 vol 390 cc268-9W
Mr. Lidington

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact on(a) British business and (b) the public sector of the draft EU Directive on environmental liability. [70841]

Margaret Beckett

The draft Directive was adopted by the Commission in January 2002 and DEFRA launched a public consultation on the proposals on April 12. Extensive study has been carried out throughout this period to assess the impact of the draft Directive. Through direct consultation with a selection of stakeholders, and using the responses received to the public consultation, DEFRA recently produced an extended partial Regulatory Impact Assessment (COM (02) 17) which considers the potential benefits and costs of the draft Directive.

The assessment indicates that much of the environmental damage that would fall within the scope of the proposed regime is already subject to existing domestic legislation. It does suggest however, that the proposed Directive could have additional positive environmental benefits, by requiring higher standards of remediation and by encouraging operators to take additional precaution. Businesses could face additional costs through, amongst other things, possible financial security requirements, and additional expenditure on precautionary measures. Additional study is being carried out in this area in order to quantify such costs.

In requiring higher standards of remediation, the responsibilities of the Competent Authority, which is designated by the Member State to require operators to take preventative or restorative measures, would be increased. Under the Commission's proposal, the Competent Authority would have a duty to take action to remedy damage if the liable party could not be found. A preliminary assessment provided by selected enforcement agencies indicates that the Directive would largely constitute an extension of existing responsibilities although there would be some new duties. Therefore there may be some resource implications.

The Government supports a regime which is equitable, proportionate, clear, insurable, easy to implement, does not damage business competitiveness, and delivers clear environmental benefits. Consequently, assessment of the potential impact of the draft Directive is ongoing to inform the UK position in the negotiations.

Mr. Lidington

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the Government's policy towards the draft EU Directive on environmental liability. [70840]

Margaret Beckett

The purpose of the proposed Directive is to establish a framework for the prevention and remediation of environmental damage in accordance with the principle that the polluter pays. This represents an important and significant development in EC environmental law. The Government has therefore conducted a public consultation on the proposals, and the UK position on the detail of the proposal will be finalised in the light of the comments received.

In broad terms, the Government supports a regime which is equitable, proportionate, clear, insurable, easy to implement, does not damage business competitiveness, and delivers clear environmental benefits.

The partial regulatory impact assessment submitted to Parliament (COM (02) 17), indicates that much of the environmental damage covered by the Directive is already the subject of existing domestic regimes, but the proposals go further in some respects. The Directive would set higher standards of remediation and introduce the concepts of equivalent compensation and interim losses. Further benefits would arise from introducing a regime across the European Community which would harmonise the rules and standards for environmental liability across member states. Provided that the right balance between costs and benefits is achieved, this proposal could therefore play a useful part in safeguarding the environment.