Greater London Authority Bill

Given the thorough examination of the proposal in Committee, I can only salute the optimism of my hon. Friend the Member for Regent's Park and Kensington, North (Ms Buck) in hoping that the Government might change their mind this evening. Sadly, I fear that I am about to disappoint her. Through the Bill, the Government propose to strengthen the strategic role of the Greater London Authority in ensuring that London’s waste is managed sustainably. As many hon. Members, and my right hon. Friend the Member for Greenwich and Woolwich (Mr. Raynsford) in particular, have said, we are at a crucial stage in delivering a step change in the way in which we manage waste in the UK, in order to reduce the environmental impact of our waste and to meet challenging EU targets. In just three years’ time, we face tough targets to reduce the amount of waste that we send to landfill. The targets pose a real challenge for local authorities. I am pleased to say that recent indications show that London is responding positively to that challenge. Figures for 2005-06 show that as a region it is second only to the west midlands in reducing waste to landfill—a point made by several hon. Members. Some of London’s success on landfill diversion is due to its above-average use of energy-from-waste technology. Incineration with energy recovery is a better environmental option than landfill. Data from other EU member states demonstrate that the use of incineration with energy recovery is compatible with high recycling rates. Denmark, Sweden and the Netherlands all have much higher recycling rates than the UK, while making greater use of incineration technologies. For example, the Netherlands recycles 65 per cent. and incinerates 33 per cent. of its waste. Recycling is also very important and performance on that is mixed in London, as many hon. Members said. Although two London boroughs, Sutton and Bexley, have been awarded beacon status on waste and recycling, Tower Hamlets is at the bottom of the national recycling league table. Some London boroughs need to make major improvements. The Government are working with them to make sure that that happens and are prepared to use formal intervention powers if necessary. We cannot be complacent about the scale of the challenge ahead and the further progress needed on landfill diversion and recycling over the coming years. Nevertheless, significantly changing the governance structures for London’s waste at this crucial time could undermine and delay the urgent work that authorities are undertaking. The amendments and new clauses relate to the establishment of a single waste authority for London. The proposals were tabled and debated in detail in Committee before being withdrawn. Some of the right hon. and hon. Members who are present will have heard the explanation why the Government do not support a single waste authority for the capital. For the benefit of those who were not present in Committee, I shall reiterate the Government’s position on that and on the amendments. The arguments for a single waste authority are based on the premise that London will fail to meet its landfill diversion targets and that such an authority would improve performance across the capital and deliver efficiencies. The evidence that we have seen contradicts that view. First, it suggests that London is doing well at diverting from landfill, although, as in the rest of the country, there is still much more to be done. Secondly, there is the suggestion that a fundamental change in the governance structures for London’s waste would lead to a dip in London’s performance. The first of the EU landfill diversion targets is just three years away. We face significant fines if those targets are missed. The creation of a new single waste authority would threaten the good progress which latest figures show London is making. There would be significant set-up costs for a new authority, as well as disruption as a result of transferring staff, assets and contracts from the London boroughs to the new body. Boroughs would have no incentive to drive forward investment in the new waste facilities needed in London during any transition to a single waste authority. The proposals would also split control over collection, recycling and disposal responsibilities between two different political bodies. The single waste authority would not have responsibility for recycling, so would be able to do little to improve recycling rates in the capital. That is why the vast majority of London boroughs, irrespective of political colour, are opposed to a single waste authority for London. We have not seen any convincing evidence that such an authority would deliver improvements in waste management or cost efficiencies. A single waste disposal authority could result in extra costs to the Government and to the boroughs, and could put at risk our landfill diversion targets. If the UK were to fail to meet its targets, the resulting fines would be likely to be passed on to London’s council tax payers. Over the past year, the Government have thought long and hard about the governance of London’s waste. Our position has been informed by a public consultation and by a number of detailed consultancy reports. It is our considered view that significantly restructuring London’s waste arrangements would divert attention and resources at a crucial time, and would put at risk performance and the achievement of our EU targets. We therefore see little benefit in making significant and costly changes to how waste functions are delivered at the local and regional level. Instead, efforts and resources should be focused on improving diversion and recycling performance within current structures. Before I turn to the amendments and new clauses, I should like to pick up on a couple of points raised by my hon. Friends. My hon. Friend the Member for Milton Keynes, South-West (Dr. Starkey) made the point that too much waste was exported from London. It is Government policy that waste should be disposed of at the nearest appropriate installation. However, some of London’s waste will always need to be exported, because there is not space in the city to landfill waste that cannot be recycled or otherwise treated. She said that she has raised several other issues and is awaiting correspondence from the Secretary of State for Environment, Food and Rural Affairs. I am sure that her remarks will have been noted and that correspondence will follow very soon. My hon. Friend the Member for Hendon (Mr. Dismore) raised the legal question of general conformity. As clause 36 indicates, the Government will issue guidance on a test for general conformity in due course, as they did for planning in planning policy statement 12. In planning, the concept of general conformity between plans prepared by different tiers of government is long standing and has not given rise to significant practical difficulties. The Government hope that any difference of opinion on whether the test had been met would be resolved, wherever possible, through discussion. Amendment No. 1, new clauses 1 ,2, 5 and 6, and new schedules 1, 2 and 3 seek to amend the Greater London Authority Act 1999 to establish, and give powers and duties to, a single waste disposal authority for London—the ““London Waste Authority””. I have already made it clear that I cannot accept them, because they would fundamentally change the way in which London manages its waste, and the Government firmly believe that waste services are best operated at local level. Amendment No. 2 would extend the Mayor’s power of direction so that he could direct waste collection and waste disposal authorities in London in the manner in which they manage their waste beyond the second information notice stage of their tendering of a waste contract. Extending the Mayor’s power in that manner would create uncertainty and could make the waste industry less willing to engage in the procurement process with London authorities. On new clause 3, it is difficult to understand what purpose would be served by a minerals and waste development scheme for London, because the Mayor does not have the responsibility for preparing the associated development plan documents on minerals and waste. That is the responsibility of the boroughs, and no case has been made for moving the responsibility to the Mayor. If the intention of the proposal is that the Mayor should prepare a minerals and waste development scheme and therefore take on the responsibility for site-specific plan making for waste and minerals sites, doing so would create the wrong balance of decision making. Site-specific plans should be made by boroughs, which have an intimate knowledge of their local area, while the Mayor maintains a strategic policy direction. New clause 4 proposes amendments to sections 353, 355 and 357 of the 1999 Act. Section 353 of that Act relates to the Mayor’s municipal waste management strategy. The relevant amendment would widen the scope of the strategy to include litter. The Government believe that litter policy is best dealt with at local level, in accordance with local needs and circumstances. For the same reason, we also reject the proposed amendment to section 355, which would require waste collection and disposal authorities to act in general conformity with the Mayor’s municipal waste management strategy when clearing litter and refuse. The amendment to section 357 relates to the new clauses proposing a single waste authority, on which I have given my views. I turn to new clause 7, which we agreed in Committee to consider further. Litter functions are dealt with at the local level by the boroughs, which work closely with partners and others that have responsibility for clearing litter and refuse. They do not have to provide any information to the Mayor before putting street cleansing contracts out to tender. New clause 7 would enable the Mayor to have oversight of procurement activity for street cleansing, presumably with the aim of promoting and encouraging best practice with the boroughs. Having given the new clause further consideration, we do not think that it would increase the Mayor’s ability to instil best practice or the effective management of contracts. The capital standards programme already provides a forum for partnership work on local environmental quality issues in the capital. We consider that the Mayor’s objective can be met through arrangements such as those, rather than by requiring the boroughs to inform him about their contracts. London boroughs are best placed to assess local needs and arrangements for dealing with litter, and to exercise their powers and duties appropriately. The Government’s proposals to enhance the Mayor's powers, along with his existing power of direction, will help to ensure that the strategic vision that he sets out for London is delivered on the ground. For the reasons that I have already explained, I cannot accept the proposals tabled by my hon. Friend the Member for Regent's Park and Kensington, North. I hope that I have been able to reassure my hon. Friends of the Government’s robust approach to managing London’s waste, and I ask them to reconsider and to avoid pressing their proposals to a Division.