HC Deb 17 September 2004 vol 424 cc1938-9W
Bob Spink

To ask the Secretary of State for Environment, Food and Rural Affairs (1) what the latest estimate is of the cost of REACH to industry in(a) its phasing-in period and (b) the first 30 years; [189034]

(2) what further impact assessment is being carried out on the REACH proposals; and when this will be published. [189035]

Alun Michael

The information is as follows:

(a) The UK partial Regulatory Impact Assessment primarily reflects the direct costs to industry of REACH which are estimated at £515 million over the 11 year phase in period. This is equivalent to total direct costs across the EU of approximately £2.4 billion. This is in line with European Commission estimates published in October 2003 of a maximum overall cost of the revised proposal to be £7.5 billion.

This is clearly art important issue and one we will continue to develop as the proposal develops through the negotiation process. We have recently let a contract to carry out further impact assessment work to assess the indirect costs passed down the supply chain. The results of this will be published January 2005.

The European Commission has also indicted that it will perform further impact assessment work on three key areas: the withdrawal of substances, the impact on Accession States and the impacts on innovation. We welcome the Commission's further work. The results are expected to be published in December 2004.

(b) The costs to industry following the phase in period will depend upon the number of new substances developed and registered. REACH is fully expected to have a positive impact on this by reducing the testing requirements for new substances, providing exemptions for research and development, raising the threshold for regulation from 10kg to 1 tonne and by simulating innovation into safer alternatives. Although the exact cost of registering a substance is still to be established, the current cost of notifying a new substance between 1–10 tonnes would be in the region of £100,000. Under the testing proposal put forward by the European Commission, these costs could be reduced to around £30,000.