My Lords, I would like to echo the regret that others have expressed that we have allowed ourselves to walk into this unnecessary nightmare.
EU REACH started in 2007, and it took nearly 10 years to iron out all the wrinkles and become, according to our own Chemical Industries Association and the charity CHEM Trust, the best chemicals regulatory system in the world. With a staff of 600 people, ECHA—the European Chemicals Agency—deals with tens of thousands of chemicals in over 20 countries, which makes the evaluation and authorisation of individual chemicals good value for money. But more
importantly, it has had 13 years to build up a huge database and prove to the world that its stamp of approval is a recognised safety guarantee when it comes to trading in chemical products—products that touch almost everything we do, from toothpaste, toothbrushes, toys, frying pans, paints, varnishes and chairs to sofas, to name just a few domestic items.
Originally, under Theresa May, and when Michael Gove was Secretary of State, we were going to go for full alignment with EU REACH and try to get associate membership. This would have been a very sensible approach, and indeed was recommended by your Lordships’ energy and environment committee, on which I am lucky enough to serve under the able chairmanship of the noble Lord, Lord Teverson. But then UK politics changed, and seemingly alignment with any EU programme or institution became a no-no, whatever the cost.
We are therefore now going to leave the best system in the world at a cost of over £1 billion to a vitally important UK industry; an industry—or industries—which probably employs over 100,000 people. It is an industry which, as the noble Lord, Lord Teverson, mentioned, is inextricably linked with the EU, and, as he said, research indicates that 27% of the EU companies involved do not intend to register with UK REACH.
This latter point means that, in order to stay in business, many of the potential 80,000 new registrations of chemicals with UK REACH will have to be paid for by our own UK companies, large and small, which depend on imports from the EU for their raw materials. Worse than that, because the data and results of tests already carried out on these products often remain the property of ECHA and EU companies themselves, our UK companies may have to pay for another full round of validation tests to register with UK REACH and thus be allowed to stay in business.
This approach is not only economically harmful but could have serious health consequences for our population and our environment. The new regime starts in 23 days and the HSE is as yet unprepared. I gather that it has filled only around 30 of the 130 new posts it says that it needs. We should bear in mind that ECHA employs 400 people dedicated to REACH, and it still took it 10 years to build its database.
Furthermore, our Government, through practical necessity owing to the problems I have just outlined, are now giving UK companies leeway for registration of chemicals of 300 days or up to six years, according to the product. There are thus likely to be serious shortcomings in the HSE’s watchdog role in this sector. Indeed, the Government have acknowledged that there is a possibility we will become a dumping ground for chemical products that do not meet EU standards.
That sums up my regrets. I apologise that I have not even touched on the problems of Northern Ireland. However, in the light of what I have said, the added complication of being essentially in two regimes at once is not a situation one would wish on any business.
I plead with the Government to please find a way to commit the UK publicly to aligning UK REACH with EU REACH. Let us try to earn its trust, so that, I hope, we can share their data and avoid having to go through a 10-year learning curve and the unnecessary
huge expense and possible environmental chaos that I have described. This is one of our most important industries. We must look after it.
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