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Chamber and committees

Environment and Rural Development Committee, 14 Jan 2004

Meeting date: Wednesday, January 14, 2004


Contents


Subordinate Legislation


End-of-Life Vehicles (Storage and Treatment) (Scotland) Regulations 2003 (SSI 2003/593)

The Convener (Sarah Boyack):

I welcome committee members, witnesses, the press and members of the public to the meeting. I remind everyone to turn off their mobile phones, as I have just done.

We have one instrument to be considered under the negative procedure, the End-of-Life Vehicles (Storage and Treatment) (Scotland) Regulations 2003 (SSI 2003/593). The Subordinate Legislation Committee has considered the regulations and has identified a drafting error, which the Executive has undertaken to correct by an amending instrument. Members will have seen the extract that has been circulated from the Subordinate Legislation Committee's 17th report. Do members have any questions? I spoke to you about the regulations yesterday, Maureen. You asked me about implementation in rural areas, but I was not able to answer your question.

Maureen Macmillan (Highlands and Islands) (Lab):

I am not sure how the various bits and pieces are going to be extracted from cars, given that the current practice in some parts of the Highlands and Islands is for a crusher to go round crushing all the cars. That has seemed a good solution to the problem of the dead cars that litter the islands in particular. What are we going to do now, however? Will it be worth taking the vehicles back to wherever to have their bits extracted? Surely a balance must be struck.

Rob Gibson (Highlands and Islands) (SNP):

I agree with what Maureen Macmillan has said. I have looked into the current approach to licensing and there is a question about whether people can be licensed in the islands to deal with the problem. Is there enough work for people to bother to obtain licences? I would like that to be clarified. It is essential to those island areas that we do not go backwards with the legislation.

There have been issues in the past about people abandoning cars on their own land. Nothing could be done about that, because the car belonged to the owner or the crofting tenant, who was not terribly willing to do anything about it.

There are issues about ownership and responsibility and the tracing of information through the Driver and Vehicle Licensing Agency.

The clerks might wish to speak to Western Isles Council, which has invested in an excellent mobile crushing machine.

How do people get the bits out of the car once it has been crushed?

They do not, basically.

Eleanor Scott (Highlands and Islands) (Green):

I wish to comment on the extract from the Official Journal of the European Communities that is appended to the instrument. How can we legislate for producers to take stuff back? How do we legislate for Toyota, for example, to take bits back to Japan? Article 5 of directive 2000/53/EC, which is cited on page L 269/37 of the Official Journal of 21 October 2000, states:

"Member States shall take the necessary measures to ensure that producers meet all, or a significant part of, the costs of the implementation of this measure and/or take back end-of-life vehicles under the same conditions as referred to in the first subparagraph."

That would be fine if cars were being built in Scotland, but it is harder to achieve with cars that are built on the other side of the world.

The document also refers to member states increasing consumer awareness and says:

"Member states shall take the necessary measures to ensure that the following targets are attained by economic operators".

There are various targets on the percentage of reuse and recycling to be attained

"no later than 1 January 2006, for all end-of-life vehicles".

The targets are stringent and I am interested to know how we will meet them.

My final point—to show what a sad person I am—is that there is a typo on page 7.

Page 7 of which part?

The main body of the document.

The document says "of" instead of "or".

Yes. There are two sad people.

Will you direct me to the exact paragraph?

It is paragraph 3(c) of part 2 of the schedule to the regulations. We think that it should say "the removal or neutralisation".

Excellent. I am grateful to both members for doing their job of scrutiny properly.

Why did the Subordinate Legislation Committee not come up with that?

Quite.

The Convener:

Even though our job is only to scrutinise the policy, you found a typo. Very good.

We seek clarification of how the instrument will be implemented. I do not hear anyone saying that they are unhappy with the policy; everyone agrees that it is the right thing to do. However, it is obvious that there are some concerns about its implementation. We must report to the Parliament on the regulations by 19 January. If I read committee members correctly, our concerns are about clarity; we are after feedback from the minister about how the regulations will be implemented. It seems that no one has concerns about their principles. I suggest that we are happy to make no recommendation to the Parliament but that we should write to the minister to say that we have questions about implementation. We should ask him to report back to us on how he envisages taking the matter forward, because the concerns that have been raised are genuine.

An issue that concerns me, but which has not yet been raised, is how one identifies who is responsible for a vehicle, particularly if it has been abandoned.

Maureen Macmillan raised that issue in passing. We should ask questions about the DVLA, to clarify the ownership issue. I am not going to bring the minister in, although he could probably answer the question.

I am champing at the bit.

The Convener:

There are important issues about implementation. It is not that we are unhappy about the regulations, but we have to get on and get things done properly. I ask the committee to agree that we write to the minister and ask him to respond to us in due course.

If the minister has a response now, that would save a sheet of paper, would it not?

It would do so only if he can answer all the questions to our satisfaction and I do not want to put him in that position.

Is the issue not on the agenda to be discussed later?

The Convener:

No. We are dealing with it now. We have to report to the Parliament by 19 January and I do not suggest that we should invite you back next week.

If we get answers from the minister, we will post them on our web page. Presumably, discussions are taking place between the minister and local authorities. Are members content with the regulations and happy to make no recommendation to Parliament?

Members indicated agreement.

We will get feedback from the minister in due course.


Solvent Emissions (Scotland) Regulations 2004 (Draft)

The Convener:

The second instrument that we will consider is the draft Solvent Emissions (Scotland) Regulations 2004. For this item, I welcome the Deputy Minister for Environment and Rural Development, Allan Wilson, and his officials. As the regulations are to be considered under the affirmative procedure, Parliament must approve them before their provisions may come into force. Motion S2M-751, in the name of Ross Finnie, invites the committee to recommend that the instrument be approved.

Before debating the motion, we will have a session to clarify any details or technical matters while the officials are at the table with the minister, as the officials cannot participate in a debate on the motion. The Subordinate Legislation Committee has considered the regulations and has nothing to report. I invite the Deputy Minister for Environment and Rural Development to introduce his officials and to make some opening remarks on the background to the regulations.

Allan Wilson:

On my right is Richard Robertson, the Executive official who has been involved in drawing up the draft Solvent Emissions (Scotland) Regulations 2004. The regulations complete the transposition in Scotland of European Council directive 1999/13 EC on the

"limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations".

The title is somewhat lengthy, but it is commonly abbreviated to the more manageable solvent emissions directive.

The directive and the new regulations aim to control emissions of volatile organic compounds by setting limits on the use of solvents in a wide range of industrial activities. Volatile organic compounds are precursors of ground-level ozone. As members know, ozone can have a detrimental effect on human health and can damage vegetation and buildings. The directive is therefore designed to reduce pollution and to protect public health.

The substances covered by the proposed new regulations include organic solvents that are commonly used in paints, inks and adhesives. Their function is to facilitate the application of a film of paint, ink or adhesive on to a surface. They are also used extensively in several other applications, such as cleaning surfaces prior to coating, removing grease, extracting vegetable oil and impregnating wood with preservative.

The solvent emissions directive has already been partly transposed in Scotland through directions issued to the Scottish Environment Protection Agency. Those directions required SEPA to control solvent emissions from a range of activities already regulated under existing pollution prevention and control regimes. The new regulations implement the remaining parts of the directive for all those activities. They also introduce controls for activities falling within the scope of the directive that are not covered by any of the existing environmental regimes, such as dry-cleaning.

There have been substantial delays to the transposition of the directive; it was due to have been transposed by 1 April 2001. The delay is, of course, regrettable. However, it is not significant for most solvent activities. The directive provides for its requirements to have full effect on existing activities only from 2007. The new regulations will therefore provide the necessary framework for the regulation of all existing and proposed solvent activities in accordance with the requirements of the directive.

The directive is being implemented in two parts. The first stage involved issuing directions to SEPA in March 2002, under the Environmental Protection Act 1990 and the Pollution Prevention and Control (Scotland) Regulations 2000, dealing with solvent activities that are already regulated under existing environmental regimes. The second stage of implementation is through the regulations that we are considering today. Following a detailed option appraisal and extensive consultation with industry, we have decided to implement the directive through the Pollution Prevention and Control (Scotland) Regulations 2000. The new regulations will therefore amend the existing PPC regulations to extend their scope to include all activities within the solvent emissions directive. That will allow SEPA to impose conditions in permits for those activities that comply with the directive.

Implementation through the PPC regulations has the advantage that it builds on an existing pollution control regime rather than creating a new one. That will therefore create a consistent regulatory regime and avoid the possibility of the same installation being regulated under two separate regimes. The proposed regulations, together with guidance that we will give to SEPA, will ensure that permits include only the conditions that are necessary to meet the requirements of the directive. That approach will ensure that the appropriate balance is achieved between cost to the operator and benefits to the environment and human health.

The new regulations will bring a number of industrial processes into pollution control regulation for the first time. Those will include activities in the following sectors: vehicle refinishing and coating activities; stand-alone surface cleaning; formulation of pharmaceuticals; extraction and purification of vegetable and animal matter; timber treatment; and dry-cleaning.

The key features of the regulations are that all installations that fall within the scope of the solvent emissions directive will have to be permitted by SEPA and new installations will have to comply with the regulations immediately, or within four months if put into operation after 1 April 2001 and before the regulations come into force. Existing installations must comply by 31 October 2007. Comprehensive transitional arrangements will be introduced to deal with installations that are either wholly or partly regulated under the existing PPC regulations or the Environmental Protection Act 1990.

As with any new environmental initiative, it is likely that there will be additional costs to industry. Those include the cost of compliance to meet the requirements of the new regulations, which might include the fitting of abatement equipment to reduce emissions, and the regulatory charges that are set by SEPA.

We have worked closely with the industries that are affected by the directive and with other Government departments to ensure that the regulations are proportionate and that they achieve a level playing field throughout the United Kingdom. The new regulations will achieve that balance between cost and benefits—we have set out the cost and benefit analysis for the proposals in a regulatory impact assessment, which has been passed to members.

In implementing the requirements of the directive, we have tried to apply a light regulatory touch and to avoid imposing unnecessary burdens on operators and SEPA. However, we want to enable Scotland to meet its important obligations under the solvent emissions directive. The transposition of the directive through the regulations will provide a valuable addition to our armoury to tackle air pollution and to protect human health and the environment by reducing prevailing levels of ground ozone. I commend the regulations to the committee.

That was a good introduction, which gives us a sense of the key priorities. Given that we have Mr Robertson with us, do members wish to ask technical questions?

Maureen Macmillan:

Will the operations be carried out inside a factory or are we talking about operations that might be carried out in people's houses? I am thinking of treatment for woodworm or industrial cleaning in a hotel or on another site. If timber treatment and surface cleaning happen outside, how will you control the emissions?

Richard Robertson (Scottish Executive Environment and Rural Affairs Department):

My understanding is that the directive and therefore the regulations apply to commercial and industrial premises only. They do not apply to domestic premises.

What about a hotel?

Richard Robertson:

The regulations would apply, because hotels are commercial premises.

So if I get someone in to treat my woodworm, the regulations would not apply, but if I were a hotel owner, they might apply, depending on how extensive the infestation was.

Richard Robertson:

That is my understanding. The interpretation of the regulations will be down to SEPA in the first place, but I understand that they apply to commercial premises and that hotels are likely to fall within their scope.

What about circumstances where commercial or industrial practices, such as woodworm protection, are going on in what are normally domestic circumstances? Would the operator responsible for that service be covered by the regulations?

Richard Robertson:

The key point is that industrial activities are covered. If something was being done within premises for domestic reasons, it is likely that it would fall outwith the scope of the regulations. If the activity was a key part of the organisation's purpose, it would fall within the regulations.

So the company providing the woodworm protection would be covered by the regulations if it was working on my house.

Richard Robertson:

If a company was engaged in an activity that fell outwith the scope of the regulations but discovered a problem within the premises that solvents were required to treat, that alone would not be sufficient to bring the activity within the scope of the regulations.

Thank you.

Nora Radcliffe:

I do not know whether this is the right time to ask about this, but I am concerned about the fact that dry-cleaners are now being brought within the scope of the regulations. A lot of dry-cleaners are small businesses run by people who do not have English as their first language. What has been done to inform people that their business might come under the scope of the regulations and has anything been done to provide leaflets, guidance or information in languages other than English?

Allan Wilson:

There was widespread consultation with industry, which extended to small businesses more generally and to dry-cleaners in particular. The charging regime, which we propose to introduce in conjunction with the extension of the regulatory framework, discriminates specifically in favour of dry-cleaners by imposing smaller charges than those that would be appropriate for other businesses.

What about people understanding the guidance? Has anything been done to provide information in languages other than English?

Richard Robertson:

SEPA is considering that. It is well aware that the dry-cleaning sector has been unregulated hitherto under environmental protection legislation; it is also aware that a large number of dry-cleaners are one-person organisations and that those people might not have English as their first language. SEPA knows that it needs to engage actively with the individual organisations and the trade associations that cover the sector. It will consider different means of doing that, including making available guidance in different languages.

Rob Gibson:

It has been suggested that, when similar regulations were implemented in Germany, there was a reduction by a third in the number of companies providing dry-cleaning. Do you think that the regulations might militate against small companies in remote areas or islands, where alternative opportunities for cleaning might not exist? Did your survey include companies that are not based on the mainland?

Richard Robertson:

Yes, that scenario has been identified as a possibility. In drafting the regulations, we have taken specific measures to alleviate the regulatory burden on the dry-cleaning sector in particular, as the minister said. SEPA proposes to impose much-reduced charges on dry-cleaners. In addition, the regulatory burden on the dry-cleaning sector will be reduced in terms of the requirements that it has to meet to comply with the regulations. Moreover, the application process for the sector will be simplified substantially. Taken together, those factors will keep the regulatory burden on the sector to an absolute minimum.

Rob Gibson:

Make no mistake, I am not suggesting that there should be no regulation—the sector clearly needs to be regulated. I am just concerned that we might be dealing with businesses that are small and cannot be replaced. I hope that the minister will be able to assure us that there will be a review of the regulations within a short period of their implementation, although I know that that is several years ahead.

Allan Wilson:

Yes. SEPA will seek to use the period between now and when the regulations come into force for existing dry-cleaning premises to discuss with businesses whether they will have difficulties in implementing the regulations. As has been said, the new regulations have been simplified considerably, specifically for dry-cleaning businesses. There is, however, a problem for dry-cleaning in that the regulations quantify VOC emissions from that source and seek to reduce them by a factor of 2.7, which is a significant reduction in emissions over the piece. As you say, we have an obligation to introduce the regulations throughout the sector, but we want to balance that with a light regulatory touch to ensure that small businesses such as dry-cleaning businesses, which are being regulated for the first time, can cope with the new regulations and remain in business to provide a service that is necessary on the islands and in other remote and rural locations. We will keep an eye on that over the piece.

The Convener:

I have a few questions that are probably more technical than policy oriented. The regulatory impact assessment is very good. In the past, the committee has complained about some of the RIAs that it has seen, but this one is good in letting us get to grips with what the cost and the benefits of the regulations are. On page 2, the RIA talks about risk assessment. Most of our questions are about the impact of the regulations on industry, but I want to ask about safe levels of ozone. Paragraph (iii) on page 2 of the RIA draws on research that has been carried out over the past decade, and a couple of things stand out. The first is that it is estimated that

"in the summer of 1995 in Great Britain the deaths of between 700 and 12,500 vulnerable people may have been brought forward"

because of ozone and that

"between 500 and 9,900 hospital emissions may have been associated with exposure to ozone."

In the summer months, the nightly weather forecast now shows ozone concentrations. It is something that we are more conscious of. However, the statistics that the RIA uses are from 1995. Do we have any more up-to-date statistics? There is clearly quite a big public health issue, and there is not much that a member of the public can do about it. You state:

"Many, but not all, of these studies show no indication of a threshold."

I am an amateur in such things. Does that mean that we have got to tackle ozone because we do not see a safe level? If concentrations are identified, is the best public health advice just not to go outside? Is that a correct interpretation of the RIA? I know that these regulations come from Europe and that we have to implement them, so we just do it and debate what impact they will have. However, this seems to be quite a big issue of public health. For that reason, although I welcome the regulations, I would like a wee bit more background about the public health benefits that seem to leap out at me from the page.

Allan Wilson:

You raise an interesting point. My colleague can take up some of the technical issues about thresholds and such like. The power of the individual to make a difference is obviously limited, which is why the power of Governments to impose regulation becomes important. It is especially important in this instance that we have a Europe-wide solution. We are talking about regulating the industrial output of volatile organic compounds in Scotland to reduce their impact, but the problem of increased ground ozone exists throughout the European Community and is arguably a greater problem in other parts of the EC—reference was made to Germany—than it is in Scotland. The fact that a Europe-wide directive is being transposed into new regulations across national boundaries is important for bringing down levels of ground ozone throughout the EC and dealing with chronic problems that arise because of higher levels. That is a good example of how effective Europe-wide action also produces individual benefits in Scotland.

Richard Robertson:

The solvent emissions directive is just one of a range of measures that are designed to reduce VOCs, which are precursors to ground-level ozone. One of the main sources of VOCs is traffic emissions. The Executive and other Government departments in the UK are specifically addressing that, so the new regulations must be seen in context. They will make a valuable contribution to the overall reduction of VOCs, but they are just part of the jigsaw whose objective is to reduce VOCs.

I have just a quick question, which I ask out of curiosity and not to get at anybody. I notice that the directive was supposed to have been put into effect in April 2001. What caused the hold-up?

Allan Wilson:

The hold-up was caused partly by the complex nature of the legislation under consideration. It was also to do with the impact on small and large business and the need to strike a balance between the impact on business and the impact on public health and the environment. All that led to delay, which is undoubtedly regrettable. However, given the time scale within which we propose to make the changes, the delay has not led to any adverse impact.

The Convener:

I return to my questions on the research that has been carried out—1995 research is quoted in the regulatory impact assessment—and the issue of thresholds. If my questions cannot be easily answered now, I would be happy with a written answer. However, a couple of aspects struck me about giving people up-to-date information. I recognise the necessity for the regulations, but I am interested in what has happened to views on ozone and public health in the past decade.

Richard Robertson:

We can certainly ascertain what information is available post-1995. I am happy to write to you about that.

I want to add to those questions. Who measures ground-level ozone, how often and where? There must be some sort of mechanism for measuring air quality. I would like an overview of that.

Is such measurement part of the local air quality strategy or is it a national matter?

I believe that the measurement of ground-level ozone is not currently part of the air quality strategy but that it is proposed to add it to the strategy. However, we will certainly check whether that is the case and reply to you formally.

The Convener:

It would make sense for measurement to be part of the air quality strategy. There are several areas in my constituency, for example, that fail to reach air quality targets because of traffic emissions. It would be useful to see how measurement fitted in with the overall approach.

There are no other technical questions—I am sorry; it seems that Nora Radcliffe has one.

Nora Radcliffe:

It is not a technical question. I want to return to my point about providing information in languages other than English. If SEPA is reducing its charges to the business sector but at the same time will have a more expensive relationship with businesses, who will fund the provision of information in other languages? For example, does the Executive have an equal opportunities fund that would enable SEPA to do a good job of communicating with people whose first language is not English?

Allan Wilson:

Those are obviously operational matters for SEPA. We provide it with sufficient funding to enable it to charge appropriately to ensure that the polluter-pays principle has precedence. However, SEPA has scope to vary charges. Indeed, it has proposed to do so in this instance following an extensive consultation that concluded only last week. There should be no reason why small-scale operators are unaware of the proposals. The proposed charging regime contains specific provisions to make its implementation simpler and to make it appropriate to such operators' circumstances. From what I can see, there is no requirement to supplement SEPA's budget beyond what is required for the charging regime.

The Convener:

I thank Nora Radcliffe for that question, which sparks the thought in me that, although we are good at considering the equal opportunities implications of primary legislation, we tend not to think about them with secondary legislation. We should hold the issue in our minds as statutory instruments come before us.

As our technical questions are finished, we now move to the formal debate. I invite the minister to move motion S2M-751, in the name of Ross Finnie, which invites the committee to recommend that the draft regulations be approved, and to make any further opening remarks, after which I will invite contributions from members.

Allan Wilson:

A couple of interesting points have been raised, particularly the point about equal opportunities in secondary legislation, which you and others may wish to consider further. I assure the committee that, in our regular discussions with SEPA, we will impress on the regulator the importance of taking equal opportunities issues into account.

The regulations will fulfil a number of our aims. They will complete the transposition of the directive, which members accept is important. Clearly, we have no option but to do so, or we risk a European Union penalty. The regulations will also introduce valuable new tools to allow SEPA to regulate solvent emissions. We have dealt with some of the harm that such emissions cause.

A balance must be struck. We have taken a light-touch regulatory approach, particularly for new and small businesses, such as dry-cleaning businesses. However, it is important that the charges that are associated with the regime are recovered from polluters. That is the important principle that we have applied in this case, albeit with a concession to the dry-cleaning industry, given its circumstances.

With the proviso that we will return to the committee on the issues of research and air quality measurement, I commend the draft regulations to the committee.

I move,

That the Environment and Rural Development Committee recommends that the draft Solvent Emissions (Scotland) Regulations 2004 be approved.

I now open the floor to other members.

Eleanor Scott:

The regulatory impact assessment lists five options but, as far as I can see—although I read it on the train and made notes on it that I now cannot read—the Executive chose option 4 over option 5. Why was that choice made? The difference seems to be that option 5 involved more stringent regulations that might have a greater cost implication for industry. I seek assurances that we will not fall foul of subsequent directives or regulations and have to return to the issue and beef up to option 5.

The Convener:

The minister can pick up that question at the end of the debate.

I am glad that the draft regulations have been produced. They are late, but the fact that the Executive has carried out a lot of consultation of industry, and of smaller industries in particular, is vital. To tackle pollution, we want the directive to be enforced, but we also want to make it possible for industry to live with the regulations. Anything that the Executive can do to provide clarity and guidance to assist industry in meeting the new requirements is to the good.

I welcome the potential public health benefits of the regulations. I am conscious that ozone is frequently reported on in summer weather reports. As the minister said, the regulations will make a contribution to tackling the ozone problem, although they will not tackle it completely. We are left with a focus on traffic emissions, which we must not forget about. I support the regulations and I look forward to the minister reporting back in years to come as the regulations are implemented and lessons are learned.

As no other member wishes to speak, I ask the minister to wind up and answer the questions that have been raised.

Allan Wilson:

Two important points were made by the convener and deputy convener, which go to the heart of why initially there was a delay and why we sought this balanced approach. The environmental case, which you outlined, convener, is substantial. Some parts of the country experienced their highest concentration of ground-level ozone for 10 years, so there is clearly a problem that we have to address on a pan-European basis.

That said, I concede that the regulations will mean higher compliance costs for the affected industries. A balance has to be struck. The directive is complex, which in part is the reason for the delay, but we did not want to over-implement the directive. That demanded careful consideration and took time. That delay was regrettable. The regulations meet only the basic requirements of the directive, and apply the light regulatory touch to which I referred. We do not envisage a requirement to return to the regulations because we have failed to implement any aspect of them, which was Eleanor Scott's point.

The regulations implement the basic requirements of the directive. They do not over-regulate, for the reasons that I have outlined, but they are necessary nonetheless to address the problems of ground ozone caused by volatile organic compounds.

The question is, that motion S2M-751, in the name of Ross Finnie, be agreed to.

Motion agreed to,

That the Environment and Rural Development Committee recommends that the draft Solvent Emissions (Scotland) Regulations 2004 be approved.

The motion is agreed to, and we will report back to the Parliament, as is our duty.