Draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023

Monday 13th March 2023

(1 year, 2 months ago)

General Committees
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The Committee consisted of the following Members:
Chair: Dame Angela Eagle
† Afriyie, Adam (Windsor) (Con)
† Butler, Rob (Aylesbury) (Con)
Byrne, Ian (Liverpool, West Derby) (Lab)
† Dalton, Ashley (West Lancashire) (Lab)
† Dixon, Samantha (City of Chester) (Lab)
† Evans, Dr Luke (Bosworth) (Con)
† Jones, Andrew (Harrogate and Knaresborough) (Con)
† Milling, Amanda (Cannock Chase) (Con)
† Morrissey, Joy (Beaconsfield) (Con)
Nici, Lia (Great Grimsby) (Con)
† Owatemi, Taiwo (Coventry North West) (Lab)
† Randall, Tom (Gedling) (Con)
† Smyth, Karin (Bristol South) (Lab)
† Solloway, Amanda (Parliamentary Under-Secretary of State for Energy Security and Net Zero)
† Western, Andrew (Stretford and Urmston) (Lab)
† Whitehead, Dr Alan (Southampton, Test) (Lab)
† Whittaker, Craig (Calder Valley) (Con)
Liam Laurence Smyth, Committee Clerk
† attended the Committee
The following also attended, pursuant to (Standing Order No. 118(2)):
Wheeler, Mrs Heather (South Derbyshire) (Con)
First Delegated Legislation Committee
Monday 13 March 2023
[Dame Angela Eagle in the Chair]
Draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023
16:30
Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023.

This statutory instrument amends the Electricity Supplier Obligations (Amendment and Excluded Electricity) Regulations 2015. The existing legislation supports the competitiveness of energy-intensive industries by providing for a scheme exempting eligible businesses from a proportion of the costs of funding renewable electricity. These are costs associated with funding the renewables obligation, contracts for difference and the small-scale feed-in tariff schemes. The costs associated with those schemes are passed on by electricity suppliers through their electricity bills, and they have a particularly high impact on foundation industries such as steel, paper, chemicals and cement, which are critical to many infrastructure projects and provide well paid, highly skilled jobs across the United Kingdom. As foundation industries, these businesses are critical in the development of new projects, including offshore wind, and therefore play an important role in the transition to net zero.

The exemption also provides relief for new and emerging industries such as battery manufacturers, which are critical to electric vehicles, and manufacturers of semiconductors, which are critical to the UK high-tech economy. They provide not only direct jobs but indirect jobs in the aerospace and automotive sectors. They employ people from Cornwall to Kent and from Grangemouth to South Wales.

The original legislation was put in place in 2017, and since then over 320 businesses have benefited from the exemption. Under the regulations, businesses that applied in 2017 will need to be reassessed this year using the last three years of data. For many businesses that will include 2020 and 2021. This statutory instrument allows businesses to exclude data from that period where it does not reflect the normal course of business. Some businesses had to reduce production or lost profitability during the covid pandemic. The flexibility in this instrument will enable them to continue to benefit from the exemption. It also allows companies applying for an exemption to apply for relief with one quarter’s worth, rather than two quarters’ worth, of data. That will encourage new businesses and start-ups to apply for relief.

The sectors eligible for the existing exemption scheme employ around 400,000 workers and account for over a quarter of total UK exports. Many are located in areas of economic disadvantage and provide good, high-paid jobs. In the UK, our electricity prices for medium and large industrial users were the highest in western Europe in 2018. Clearly, electricity costs have a significant impact on the competitiveness of such enterprises. The industries affected operate in international markets, so higher electricity costs place them at a competitive disadvantage, which results in the risk of “carbon leakage”, whereby companies choose to move their production to countries with less ambitious climate policies.

Existing legislation covering energy-intensive industries allows eligible businesses to receive an indirect exemption of up to 85% of the costs of funding renewable electricity schemes. Where an eligible business applies successfully for the exemption, its electricity supplier receives a reduction in the costs, which in practice it passes on to the eligible business. That approach mitigates the cost of the renewable electricity scheme, supports industrial competitiveness and provides certainty for businesses. The costs of the exemption are distributed to all other electricity users. The regulations amend legislation to improve access to the exemption for new companies. They also allow companies to exclude two years of data from their application, which accounts for the impact of the covid-19 pandemic.

In conclusion, the regulations will improve the operation of the scheme and support the competitiveness of energy-intensive manufacturing industries in the United Kingdom, and I commend them to the Committee.

16:35
Alan Whitehead Portrait Dr Alan Whitehead (Southampton, Test) (Lab)
- Hansard - - - Excerpts

The SI looks very straightforward. It proposes two minor amendments to the qualifying arrangements for the energy-intensive industries exemption scheme, which, as the Minister says, came into force in 2017. It replaced a discount scheme with one in which energy-intensive industries were eligible for a discount of 85% on the green and environmental levies charged to other industries to deal with, for example, the cost of the renewables obligation and contracts for difference.

As the Minister says, the continued eligibility of companies for the scheme was designed to be reviewed by 2022. Some companies’ eligibility may have lapsed because during the pandemic they did not produce to the same extent as they do now, or because they had other arrangements that they needed to carry out that might have infringed on the rules of the scheme. The arrangements proposed today shorten the period for which accounts and various other things need to be provided, so that eligible companies can be judged on the basis of their present performance, rather than their performance over five years.

I would be grateful if the Minister could elucidate other matters relating to the scheme, as they are quite important for our overall judgment of it. First, as she said, the original 2017 EII exemption applied to about 315 eligible businesses. Indeed, the SI that introduced the scheme provided a number of specified activities in sectors exempted because of their energy-intensiveness. However, although she suggested that those 315 businesses now have their eligibility up for renewal, it appears that when the scheme was launched in November 2017, only 170 companies applied. Unless there has been substantial changeover since 2017, and a number of new companies make up the difference between the 315 eligible businesses and the companies that applied, we appear to be short a number of companies—eligible companies that have not yet received the discount on their electricity bills, for reasons that I can only conjecture about. Perhaps they thought applying for the scheme was too difficult, or did not know about it.

We have a potential double problem. The SI suggests that things could be made easier by our relaxing the requirements on companies that are renewing their eligibility. It appears that a number of companies that were in principle eligible for the scheme as it was—not as it is now—still have not got any exemption. With these new reliefs and eligibility requirements, companies not in the scheme could be brought into it. Whether the Government have any positive methods of ensuring that they are brought in, I do not know; the Minister may be able to enlighten us.

In 2017, when the scheme came in, it gave an 85% exemption, but in August 2022 the Government announced that they would take the scheme further and introduce 100% exemption for energy-intensive industries. As far as I know, nothing has happened on implementing that proposal. There was considerable press coverage of the intention to increase the exemption to 100%, but there is very little press coverage of the fact that the Government appear to have done nothing to implement that increase—or if they have, it has passed me by, and it has certainly has not been recorded to any great extent.

If it is still proposed that the 100% scheme will be implemented in the not-too-distant future, that will make a difference to the extent of the exemption arrangement, and to the measures needed to make sure that the scheme is easier to requalify for, so that businesses can get an exemption more valuable than the 85% exemption.

Samantha Dixon Portrait Samantha Dixon (City of Chester) (Lab)
- Hansard - - - Excerpts

Forgive me if I have misunderstood, Dame Angela, but only this morning, I received a letter from a laundry based in my constituency, which made the point that its energy bills have escalated considerably. It appears—unless I misread the letter—that the laundry sector is not covered by the regulations. Does my hon. Friend agree that laundry—for the tourism trade in my constituency, but also for healthcare operations—is a vital sector that has soaring costs, and needs to not be overlooked?

Alan Whitehead Portrait Dr Whitehead
- Hansard - - - Excerpts

My hon. Friend makes a very good point that slightly anticipates my third and final question for the Minister. She is quite right, and by coincidence, I have in front of me the complete list of activities that qualify as energy-intensive industries. Laundry and associated activities are not on the list. However, interestingly, the mining of hard coal is. It is curious that those mining hard coal are exempt from all the levies that go towards mitigating the pretty bad things done to the environment through the mining of hard coal. I would have thought that the mining of hard coal should in no way be in the schedule of specified activities. My hon. Friend suggests other things that should be in that schedule and eligible for levy reductions. Does the Minister intend to review the schedule, which dates from 2017, and who is eligible for exemptions? If she does, what will be the criteria for inclusion among energy-intensive industries? If she does not, is she happy that mining hard coal continues to be 85% exempt?

Labour will not oppose this SI, because it represents a sensible change to the scheme and takes account of what happened during covid. I think the Minister will agree, however, that there are questions, some clear and some rather less clear, about the operation of the EII scheme that need answering before we can conclude our business this afternoon.

16:46
Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

I thank the hon. Member, as ever, for his valuable and well thought out contribution.

The exemption provides relief for key foundation industries, including companies operating in the steel, paper, chemicals, cement, and glass sectors. The scheme also supports emerging sectors, such as battery manufacturers and companies making semiconductors. The companies that the scheme supports are located across the country and provide high-paid, good-quality jobs, both directly and in the supply chain.

The hon. Member asked about communication. Communication is key in all that we do, and we will endeavour to ensure that we keep on communicating all we are doing to support the industry. The regulations are necessary to improve the operation of the scheme. They will make it easier for start-ups and businesses to apply. They will also allow businesses to account for the impact of covid-19 when applying for relief. We will update and publish our guidance on gov.uk in April 2023 to ensure that business is aware of the relief, and we will proactively engage with stakeholders to ensure that they are aware of the changes. All 320 companies have received a discount, and we know that other companies have already applied. The list of eligible sectors is based on the most electricity and trade-intensive businesses. We continue to engage with industry and other stakeholders to ensure that support is targeted at those sectors most exposed to high electricity costs.

The hon. Member asked about the 100% exemption. On 23 February 2023, the Government announced their intention to move to 100% as part of the British industry supercharger. The delivery mechanisms and timelines for the implementation of the supercharger will be consulted on this spring.

Alan Whitehead Portrait Dr Whitehead
- Hansard - - - Excerpts

What the Minister says appears to be a reannouncement of what was announced in August and not proceeded with. Is the Minister now saying that the 100% discount is being proceeded with, and will be in place, say, this spring or later on? When does she think that might happen?

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

To reiterate, the Government announced their intention to move 100% as part of the British industry supercharger on 23 February 2023.

Alan Whitehead Portrait Dr Whitehead
- Hansard - - - Excerpts

But you announced it in August last year.

None Portrait The Chair
- Hansard -

Order. Rather than speaking while sitting down, the Member might want to intervene; I am sure the Minister would let him.

Alan Whitehead Portrait Dr Whitehead
- Hansard - - - Excerpts

I apologise.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Following a consultation in spring 2023, we will come forward with our proposals on the recently announced British industry supercharger, which aims to roll out further support to important manufacturing businesses by exempting firms from certain costs arising from renewable energy obligations, as well as GB capacity market costs, while exploring reductions for network charges, which are the costs industrial users pay for their supply of electricity.

Andrew Western Portrait Andrew Western (Stretford and Urmston) (Lab)
- Hansard - - - Excerpts

Given the intention to look at the list of industries, will the Minister commit to reviewing the inclusion of the mining of hard coal? My hon. Friend the Member for Southampton, Test, suggested that it may be wise to do so.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

The list of eligible sectors is determined by their electricity and trade intensity. I commend the regulations to the Committee.

Resolved,

That the Committee has considered the draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2023.

16:50
Committee rose.

Draft Treasure (Designation) (Amendment) Order 2023 Draft Treasure Act 1996: Code of Practice (3rd Revision)

Monday 13th March 2023

(1 year, 2 months ago)

General Committees
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The Committee consisted of the following Members:
Chair: † Hannah Bardell
Abrahams, Debbie (Oldham East and Saddleworth) (Lab)
† Baynes, Simon (Clwyd South) (Con)
† Duffield, Rosie (Canterbury) (Lab)
Foy, Mary Kelly (City of Durham) (Lab)
Hall, Luke (Thornbury and Yate) (Con)
† Howell, John (Henley) (Con)
† Hughes, Eddie (Walsall North) (Con)
† Lewis, Clive (Norwich South) (Lab)
† Lopez, Julia (Minister of State, Department for Culture, Media and Sport)
† Lopresti, Jack (Filton and Bradley Stoke) (Con)
† Mills, Nigel (Amber Valley) (Con)
Neill, Sir Robert (Bromley and Chislehurst) (Con)
Qaisar, Ms Anum (Airdrie and Shotts) (SNP)
† Robinson, Mary (Cheadle) (Con)
† Smith, Jeff (Manchester, Withington) (Lab)
† Wakeford, Christian (Bury South) (Lab)
† Wood, Mike (Dudley South) (Con)
Rebecca Lees, Aaron Kulakiewicz, Committee Clerks
† attended the Committee
The following also attended (Standing Order No. 118(2)):
Loughton, Tim (East Worthing and Shoreham) (Con)
Second Delegated Legislation Committee
Monday 13 March 2023
[Hannah Bardell in the Chair]
Draft Treasure (Designation) (Amendment) Order 2023
18:00
Julia Lopez Portrait The Minister of State, Department for Culture, Media and Sport (Julia Lopez)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft Treasure (Designation) (Amendment) Order 2023.

None Portrait The Chair
- Hansard -

With this it will be convenient to consider the draft Treasure Act 1996: Code of Practice (3rd Revision).

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I am pleased to be speaking to this order, which was laid before the House in draft on 20 February, and the code, which was laid in draft on 23 February. I suspect that this may be the most interesting statutory instrument that I have ever laid and ever will. The order and revised code are intended to support the aim of the Treasure Act 1996 to preserve important and significant finds for the benefit of our nation. The order designates a new class of treasure based on the significance of a find, and exempts finds that currently also fall under the legal processes of the Church of England. The code has been revised to make it easier to understand and use, and includes guidance on the new class of treasure and exemption.

The Treasure Act replaced the common law of treasure trove in England, Wales and Northern Ireland. The current definition of treasure broadly captures only those objects that are made of silver or gold and more than 300 years old when found, as well as hoards of prehistoric base metal objects. Coroners then decide whether an object meets the definition of treasure, and the finder of an item of potential treasure has to report it within 14 days. If the object is found to be treasure, it belongs to the Crown unless an heir of the original owner demonstrates their claim to it.

John Howell Portrait John Howell (Henley) (Con)
- Hansard - - - Excerpts

My hon. Friend said that the measures apply to the finding of metal objects. For most of our history and pre-history we have been a stone-bearing culture. Can we not include significant stone objects?

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I thank my hon. Friend. That is something that we have considered as part of this process. We have looked carefully at the question of capacity and scope, and while we believe that this is the most appropriate and proportionate next step in treasure regulations, the Department will continue to consider the issue.

Treasure is made available to museums to acquire for public benefit. If a museum acquires a find, it funds a discretionary reward for the finder and landowner. The amount and division of the reward are decided by the Secretary of State, advised by the Treasure Valuation Committee. That process is expertly delivered by our partners in the British Museum, Amgueddfa Cymru— the National Museum Wales—and National Museums Northern Ireland. In England and Wales, the portable antiquities scheme, which records archaeological objects found by members of the public, plays a key role in facilitating the reporting of finds and their acquisition by museums.

The Act has been very successful. More than 17,500 finds have been reported since 1996, over 95% of which were made by metal detectorists. An estimated 6,000 have been acquired by over 200 museums across England, Wales and Northern Ireland. Those include outstanding finds such as the Corrard torc in Northern Ireland and the Staffordshire hoard in England. When a museum acquires a find, it means that it is available for the public to see and admire, but beyond that it educates people about their own heritage. By giving museums the first chance to acquire archaeological discoveries, the Treasure Act has a fundamentally important role in preserving our past.

However, there have been times when the Act has not been able to help museums to secure important finds. Discoveries that do not meet the current definition of treasure, such as individual base metal objects, may be sold by the finder at auction. Museums are now competing with private buyers or dealers, with a high risk of being outbid. Even if they are successful they will have to pay additional costs such as premiums. For example, the Crosby Garrett helmet, a unique base-metal Roman find that did not meet the definition of treasure, as subsequently sold on the open market. Despite the great efforts of museums to raise funds, they were ultimately outbid.

Another object at risk of being lost to the public is the bronze birrus Britannicus, a Roman figure that provides a singular insight into Romano-British life and one of the highlights of Chelmsford Museum’s collection. The museum was able to acquire it only when it was sold overseas and the export deferral system stopped it. However, we should not need to rely on that system to protect important discoveries, particularly as it comes into play only if an overseas buyer happens to purchase the object. The change we are debating will ensure that that does not happen and that museums will get the first right to acquire the most significant finds.

The order designates a new class of treasure based on significance. For the first time, the most important base metal finds, gold and silver finds that are between 200 and 300 years old and single gold coins, all of which are currently outside the definition of treasure, can now be considered to be treasure. Such finds will be caught by the definition only if they meet the specific criteria in the order that are aimed at identifying objects of outstanding historic, cultural and archaeological importance.

John Howell Portrait John Howell
- Hansard - - - Excerpts

My hon. Friend has described a set of rules for treasure that are based on financial value. The cultural value of these assets is more important, so why can we not have a definition based on cultural rather than financial value?

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I appreciate my hon. Friend’s intervention. This policy area is led by my departmental colleague Lord Parkinson. I understand that the point my hon. Friend made has been considered, but it was balanced against the implementation challenges and the system’s capacity to deal with such questions. I should be happy to facilitate further discussion on the matter if that would be helpful to my hon. Friend.

The criteria have been carefully designed to ensure that the new class is limited to finds of exceptional national, regional or local significance. We consider that to be a high bar. The order owes its origins to a wide range of sources. We took into account the responses to the 2019 consultation on the Treasure Act, many of which recommended a significance-based definition. The Heyworth Heritage research report, which was commissioned by my Department, provided detailed, pragmatic advice on the implications of the new class. We also worked with sector experts such as the treasure registry at the British Museum and colleagues at Museum Wales and National Museums NI, whose practical experience of treasure was invaluable.

We are introducing another change in the order. The Treasure Act removed the common-law requirement that for a find to be considered treasure, there had to be some evidence that it had been hidden with an intention by the owner to return to recover it. That brought into the process objects associated with human burials, including those on consecrated land, which also fall under the Church of England’s statutory process for managing moveable objects. This overlapping jurisdiction complicates both the Church of England’s legal process and treasure legal processes.

The order therefore seeks to remove the confusion around Church of England finds by exempting them from the treasure process, as the Government undertook to do during the passage of the Act. We have worked with the Church of England to define the scope of the exemption, which we hope will avoid conflicts arising between the treasure process and the ecclesiastical legal system for managing moveable objects.

Alongside the order, we are also debating the associated statutory code of practice, which provides essential guidance and principles for the administration and operation of the treasure process. The current code is out of date, does not reflect current administrative practices and, naturally, does not include information on the proposed changes to be introduced by the order.

Revisions to the code introduce changes to the process to ensure that it is more efficient and transparent for all parties involved. The changes are the result of an extensive public consultation, to which there were more than 1,400 responses, representing the full range of interested parties including museums, metal detectorists, archaeologists and landowners. They provided evidence and feedback on the process that have enabled us to make the changes.

We have introduced specific deadlines for all parties in the treasure process to improve timeliness, and we have included more information on the individual administration processes in England, Wales and Northern Ireland and clearer information on rewards. The language of the code has been updated to make it easier for all users to understand their responsibilities under the Treasure Act.

The changes aim to make the treasure process more efficient, but that is obviously not an end in itself. Beyond that, the intention is that a clear and understandable process will encourage museums to decide to acquire treasure, satisfy finders that decisions on their finds will be made within a reasonable time, and ensure that the public will benefit from increased access to significant finds. I commend the changes to the House and would like to open these matters to debate.

18:09
Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
- Hansard - - - Excerpts

It is a pleasure to see you in the Chair, Ms Bardell, and to speak on behalf of the Opposition. I thank the Minister and officials from the Department for Digital, Culture, Media and Sport for the conversations that we had ahead of today’s Committee.

As the Minister set out, the draft Treasure (Designation) (Amendment) Order 2023 amends the Treasure (Designation) Order 2002 so as to extend the eligibility criteria for classing a found object as treasure. Base metal objects that are at least 200 years old and provide exceptional national or regional historical, archaeological or cultural insights will now be included among the objects covered by the definition.

The draft third revision of the Treasure Act 1996 code of practice updates the administrative framework for the treasure process, clarifies the role of the portable antiquities scheme, provides clear deadlines to improve the process, and reflects the different systems in England, Wales and Northern Ireland. We understand the rationale for the changes, which should ensure that more significant finds from our shared past end up in public museums, to inspire, educate and delight future generations, rather than in private collections. The changes have been broadly welcomed by archaeologists, museum curators, finder communities and landowners, and we will not oppose them.

Interest in metal detecting has grown substantially since the last revision to the treasure code of practice in 2008. There are now thought to be around 20,000 detectorists in England and Wales. The detecting community makes an important contribution to our national museum collection, with over 96% of all archaeological finds reported by the public coming from detectorists. Thanks in large part to detectorists, cases of treasure have increased by over 50%, from 778 in 1996 to 1,071 in 2022. With more finds come more opportunities to display artefacts in our public museums for everyone to appreciate and enjoy.

Under the previous definition, significant finds such as the Crosby Garrett helmet, the Ryedale hoard and the Staffordshire Moorlands pan would not have been protected in law. Museums were able to acquire some of these significant items off their own bat, but the Crosby Garrett helmet is one of many valuable finds that ended up in private hands; it is still held privately and rarely exhibited. We support measures to ensure that more of our shared past can be displayed for public benefit.

We acknowledge that the bar will be set very high when judgment is made about an object’s “significance”; it is envisaged that no more than 100 finds a year might meet the new criteria. Does the Minister plan to keep the threshold under review, in case fewer important objects meet it than was intended? The Government’s changes extend only to metal objects. As we heard from the hon. Member for Henley, a number of archaeologists would like significant items made from other materials, such as worked stone and organics, to be protected under the Treasure Act. The Government have taken the decision to proceed cautiously, and are effectively trialling the changes with metallic items, so as to properly understand the implications. That is understandable, but when might the Government see fit to consider further amendments that include non-metal historical objects? Does the Minister have plans to ensure that local museums can benefit from significant finds discovered close by? What is the Government’s view on the concerns expressed that the change may lead to the under-reporting of treasure finds?

The Government have acknowledged that widening the definition of treasure and changes to the code of practice will result in more objects needing to be assessed to determine their

“outstanding historical, archaeological or cultural”

significance. That will put a greater resource burden on our national museums—the British Museum, Amgueddfa Cymru, and National Museums NI—which will administer the process. Ministers have committed to increased funding to allow for that, which is welcome. Will that be kept under review until the impact of the changes on our museums is understood more fully?

Overall, Labour feels that the changes to the code of practice are sensible. We hope that they will lead to many more treasures being displayed in museums for the benefit of local communities across the country.

18:13
Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
- Hansard - - - Excerpts

I ought to declare an interest as chair of the all-party parliamentary groups on archaeology, and on the British Museum, and as a fellow of the Society of Antiquaries. I have a real interest in the issue. I am delighted that the Minister said that this was probably the most exciting statutory instrument that she would deal with.

None Portrait The Chair
- Hansard -

May I remind the hon. Gentleman to refer to the Minister through the Chair? Otherwise I am not deciding on any legislation.

Tim Loughton Portrait Tim Loughton
- Hansard - - - Excerpts

That was a terrible faux pas of mine. I apologise, Ms Bardell. I am delighted that the Minister is so excited by the order.

Some 26 years ago, when I first came into the House, one of my first SI Committees was on some of the first regulations to the Treasure Act 1996. I remember having a lengthy debate with the then Minister, who I think was a Member for Sheffield Central, about whether medieval Sheffield slag would be included in the qualifications. That is exactly what these regulations will now do, so the measure is long overdue. We have waited several years to get these changes to the Treasure Act, which I welcome and will certainly support.

The British Museum—I declare an interest—manages the portable antiquities scheme, it provides the secretariat for the Treasure Valuation Committee, and the treasure registry is based there, so it is absolutely central. I should also say that Mike Heyworth—the Minister referred to his report—provides the secretariat to the all-party parliamentary archaeology group.

The portable antiquities scheme has been a huge success by any measure. To date, it has recorded more than 1.6 million finds on its online databases. Its finds liaison officers are based around the country and have played a part in reigniting the general public’s interest in archaeology, along with the popular television programme, “Detectorists”.

John Howell Portrait John Howell
- Hansard - - - Excerpts

I declare that I, too, am a fellow of the Society of Antiquaries of London and a long-established archaeologist. My hon. Friend mentions the success of the portable antiquities scheme. Does he not think that that means that the term “treasure” is outdated and that we should take the definitions of the scheme?

Tim Loughton Portrait Tim Loughton
- Hansard - - - Excerpts

This Committee is in danger of having an awful lot of talent on it who know a bit about the subject; I will come on to exactly that point.

In my county of Sussex, the portable antiquities scheme has so far registered almost 40,000 finds, and there have been 486 pieces of treasure across East and West Sussex since the Treasure Act. On average, as the Minister mentioned, between 20% and 30% of those declarations end up in museums, so there has been a substantial increase in the amount of antiquities of interest available for public viewing, interpretation and explanation, which must be a good thing.

This is a good measure, as far as it goes, because the Treasure Act, which enables museums to acquire items more than 300 years old, as we have heard, based on the content of gold and silver, will now be extended to base metal items. That would have included the Crosby Garrett helmet; the Ryedale Yorkshire hoard, which recently came up for auction and ended up in a museum; and the Staffordshire Moorlands pan. However, that is based on their cultural and archaeological significance as an aspect of their

“national or regional history, archaeology or culture”

by virtue of their rarity, where they were found, or their connection to a person or event.

It is envisaged that, with the extension of the definitions, only something like 100 additional finds a year will meet the criteria, so it does not place a hugely onerous additional burden on the Treasure Valuation Committee, the museums and the FLOs. To pick up the point made by my hon. Friend the Member for Henley, I ask why it has stopped at metal items, because the whole principle behind the changes is to recognise that items are of cultural interest regardless of the material from which they are made. They may sound more like treasure because they are made of gold, silver or other precious metals, but for an archaeologist or somebody studying history, that is frankly immaterial to their potential cultural significance and uniqueness.

So, may I ask again why the Minister has not extended the definitions to non-metal items? There is a precedent, because the definitions have been extended on the Isle of Man, whose treasure law otherwise mirrors the Treasure Act 1996, so that they can take in non-metallic items. This is a serious question. I do not believe that it is one of capacity, based on the estimates of the increased workload from the extension of the criteria. Could the extension at least be piloted now in certain parts of the country, say, where there is sufficient capacity to take on additional items that just happen not to be metallic?

The Chartered Institute for Archaeologists has raised this point and it specifically referred to palaeolithic hand axes or other organic materials, such as worked wood. Such wood is certainly rare, in terms of its capacity for preservation, when it is dug out of the ground, and culturally and archaeologically it may be hugely more significant than a gold coin found in situ.

I will take the second point that my hon. Friend the Member for Henley made, too, about whether we should still use the terminology of “treasure” when it really promotes the wrong image. The legislation is moving in the right direction to recognise the cultural and archaeological significance of finds, rather than what they are made of. Should we not refer instead to significant antiquities in terms of their cultural significance rather than in terms of their financial value? I think the Government have perhaps missed a trick here, because they are embedding the impression that treasure is only something that is bright, shiny and made of metal, when not all treasure is.

There is a third consideration, which I would be grateful if the Minister could respond to. The rolling date for treasure, which is still to be used, is considered by many to add unnecessary bureaucracy to the system; people constantly have to change the date where the 200-year criteria now apply. There is a body of support for having this date as a fixed date in the legislation. Perhaps she will say why that is not the case in the regulations.

Also, in the guidance that accompanies these regulations, there are lots of useful additions. The guidance gives greater clarity on what items are treasure, and why; it better explains the role of the portable antiquities scheme and how it works alongside local coroners; it clarifies the legal obligations of those who find treasure, setting out what their responsibilities are; it gives clearer timelines for the processing of treasure; and it explains better that treasure is owned by the Crown and that rewards are made at the discretion of the Secretary of State for Digital, Culture, Sport and Media.

That is all welcome, but further work is required—again, perhaps the Minister can give some clue as to whether this work will be undertaken—to examine the impact that the exponential growth in metal detecting over the past 20 years has had on the portable antiquities scheme.

In terms of value for money, the portable antiquities scheme is one of the most efficient investments by the taxpayer. For a relatively small amount of money—in excess of £1 million—we achieve greater awareness of our past and of the importance of antiquities, and better governance of metal detectorists in bringing their finds to public display through the finds liaison officers and ultimately, in some cases, museum, and that is hugely welcome. However, I do not think that the guidance has moved on quite as much as it needs to. By and large, metal detectorists are a responsible bunch, but there are nighthawkers who can cause serious damage to scheduled sites. Will there be additional work on further guidance, given the number of people who are now involved in metal detecting and associated leisure activities?

I will raise a final point, regarding the exemptions for the Church of England, which the Minister did not really touch on those. The explanatory notes to the regulations state that the proposal to remove from the definition of treasure finds that fall under the legal processes of the Church of England was included in the 2019 public consultations. The result was that 30.9% of those who expressed a view were supportive of the proposal and 30.1% expressed disagreement, which is an even narrower margin than in the Brexit referendum. Views were clearly split. Can the Minister flesh out the reasons the Church of England continues to benefit from the exemptions? What are the upsides or downsides of that?

Overall, though I hope I have been constructively critical, I certainly welcome these long-overdue new regulations. They put the Treasure Act 1996 on a much sturdier footing, but have gone halfway to conceding the principle that treasure is not just shiny, precious metal. How much longer will we have to wait until the Government go the whole way so that we can embrace, appreciate and safeguard items of archaeological or cultural significance that happen not to be made of a valuable commodity? Although I support the measures, I would appreciate some additional clarification from the Minister.

18:26
Julia Lopez Portrait Julia Lopez
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I thank hon. Members for the opportunity to debate the order and the code. This is a fascinating area of cultural protection legislation. I am sincerely grateful to the hon. Member for Manchester, Withington for agreeing that the changes will improve how we take care of our heritage in England, Wales and Northern Ireland and ensure that the most important finds can be saved for all our benefit.

My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) recognised that the changes are long overdue. I am glad to deliver them. I welcome his detailed and considered input; he has studied archaeology in his academic career and also for his contributions as a Member of this House. He highlighted the public appetite to uncover more of our own history. Active metal detectorists are now very much in the ascendency. Ahead of this debate, one such metal detectorist, who is a close friend, sent me some pictures to set out how some of the finds that are now posted on Facebook are not currently in scope. We are losing those precious objects for the nation, so I know that the changes are welcomed by a large number in that community.

Extensive research commissioned and published by my Department demonstrates that introducing the high bar for significance may lead to around 100 to 140 new discoveries being made available to museums each year, as other hon. Members have said. In answer to hon. Members, we will keep this under review. All types of objects have the potential to be archaeologically or historically significant. At the moment, the new definition will apply only to artefacts that are at least partly metal. We are taking that approach so that we can measure the impact and effectiveness of the change. That is already a major shift in the emphasis of the Act. Research, funding and long-term preparation of stakeholders are required for further expansion. I assure hon. Members that we want to explore options for broadening the definition to include other types of objects that are culturally significant, such as stone, sculpture and ceramics.

As I have discussed with officials, treasure cases are taking up to six years to determine value, so we are mindful of not wanting to put additional pressure on the system.

As I mentioned, this is not a policy area on which I lead, but I am happy to put concerned Members in touch with the lead Minister, Lord Parkinson. I will also relay personally some of the concerns expressed in Committee about the next steps. I am sure that he will be happy to look at that and at the question of the rolling date, which was raised in the debate.

Finders will be under a duty to report finds when they have reason to believe that finds may be treasure, because of their expertise or because they receive advice—for example, from fellow detectorists, a dealer, a finds liaison officer or a curator—that a find may be sufficiently significant to be considered treasure. We recognise that the change will lead to more objects going through the treasure process. Those that deliver it, as the hon. Member for Manchester, Withington said, will need extra support to do so. We will provide that extra support.

We have increased financial support for the treasure registry at the British Museum and the portable antiquities scheme, which in England and Wales acts as a gateway to the treasure process. We have also invested in a new digital treasure system, which we hope will make it easier to record and track treasure cases, but that is in the early stages of being developed. I hope that people will find it to be an exciting innovation in the area, modernising the whole treasure process to improve transparency and efficiency.

I will also work with our delivery partners, including the treasure registry, to provide training and guidance to support those who are integral to implementing the change, including finders, coroners, finds liaison officers and curators. We hope that that will help everyone to understand their legal and administrative responsibilities.

We have introduced the change only for objects that are partly or wholly metal. As I said, we recognise that that leaves out ceramics and stone, which is something that we will monitor closely as we look at how the changes take effect. We want to work closely with experts to explore options on expanding the definition.

We believe that the change is needed now to ensure that we can look after, for future generations, the objects that tell our shared national and local history. I look forward to seeing the first object to be declared under this new class going on display in our tremendous museums. I also look forward to more people engaging with and learning about their heritage. On the Church of England point, I believe that was taken so that there was not double legislation for particular objects. Again, however, I am happy to put my hon. Friend the Member for East Worthing and Shoreham in touch with Lord Parkinson to discuss the matter further. I look forward to new knowledge coming to light and changing our understanding of our glorious past.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Treasure (Designation) (Amendment) Order 2023.

draft treasure act 1996: code of practice (3rd Revision)

Resolved,

That the Committee has considered the draft Treasure Act 1996: Code of Practice (3rd Revision).—(Julia Lopez.)

18:31
Committee rose.