§ Lord Hodgson of Astley Abbottsasked Her Majesty's Government:
What is the estimate of the cost to industry of complying with future legislation arising from (a) the European Union chemicals strategy and (b) the new detergents directive. [HL1171]
§ Lord Whitty(a) The estimated costs to industry of complying with the White Paper of February 2001 on a Strategy for a Future Chemicals Policy vary widely. For instance, the recent business impact assessment produced for the Commission estimated the direct cost to industry as ranging between €1.4 billion to €7 billion (£886 million to £4.43 billion) across the EU—based on certain assumptions and scenarios.
The partial regulatory impact assessment (RIA) prepared by my department suggests that the costs to the UK industry alone might be of the order of £423 million (about €670 million).
A revised RIA will be required when proposals for the European Commission's legislation are available, and my department is working closely with other interested departments, the devolved administrations and concerned stakeholders to develop its scope and content. As well as considering the benefits and costs of the proposals in detail, the RIA will include an assessment of the implications of the proposed legislation for the international competitiveness of the UK chemicals industry and other manufacturing sectors that use chemicals in their processes and products.
(b) Currently there is no reliable estimate for the cost of implementing the proposed detergents regulation. My department is in the process of completing an R IA for it and will ensure that, as part of this process, the views of industry and other consultees are taken into account. The RIA will generate the estimate called for and will be made publicly available.