EU Referendum: Energy and Environment

Kerry McCarthy Excerpts

Tuesday 12th July 2016 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

It is a pleasure to see you in the Chair, Madam Deputy Speaker. It was immensely frustrating to me that the environment received so little attention during the referendum campaign, despite the best efforts of my fellow members of the steering group of the cross-party Environmentalists for Europe. It seems like a lifetime ago that I stood on a rather windswept beach in Hove with my hon. Friend the Member for Hove (Peter Kyle), the hon. Member for Brighton, Pavilion (Caroline Lucas), and Sir Stanley Johnson, the father of the hon. Members for Uxbridge and South Ruislip (Boris Johnson) and for Orpington (Joseph Johnson), brandishing a beach ball and exhorting people to remain for nature. Brighton and Hove voted to remain, and I am sure that that was entirely down to our efforts with the beach ball that day. I am proud, too, that my constituency voted to remain. The public voted narrowly for Brexit, however, although I do not believe that they voted to remove the environmental protections that have served us so well over the years.

Much that is good has flowed from our EU membership. As my hon. Friend the Member for Swansea West (Geraint Davies) and others have said, Britain was once dubbed the “dirty man of Europe”. We used to worry about acid rain, but our sulphur dioxide emissions fell by 89% between 1990 and 2010, and our nitrogen dioxide emissions were down 62% thanks to EU directives, the EU ban on leaded petrol and the requirement for catalytic converters in cars.

[Andrew Gwynne]

I represent a constituency that has an air quality management area. My hon. Friend will know that there is a public health issue here in respect of obtaining clean air. Does she think that it is incumbent on the Government to tackle the air quality issue so that we narrow the health inequalities that are endemic in constituencies such as mine?

[Kerry McCarthy]

I absolutely agree with my hon. Friend. Sixty years on from the Clean Air Act 1956, it is clear that many urban areas, in particular—although not just urban areas—are still suffering greatly from air pollution. It is an issue of social justice, because people in poorer communities tend to be most affected. The Government have been taken to court on the matter by ClientEarth and, whether we are in the European Union or outside it, we need to see further action on the issue.

It is hard to believe that we used to allow untreated sewage to flow into our seas before the EU’s bathing water directive forced the UK Government to make our bathing waters fit for swimming and to test for bacteria such as E. coli. In 1990, only 27% of our bathing waters met minimum mandatory standards. By 2014, 99% complied. The EU’s waste framework directive has been the driving force behind our domestic waste policy, requiring us to recycle 50% of household waste by 2020. As we have heard, it looks as though the UK is moving slightly backwards when it comes to progress towards recycling targets, and that needs to be halted.

The nature directive protects our most threatened habitats and birds, with beauty spots such as the New Forest, the Brecon Beacons and Ben Nevis designated as special areas of conservation. Post-Brexit, many of those protections would still apply in certain scenarios, but not in others. There is a lot of uncertainty, and I am keen to hear some early indications from the Minister of what our negotiating stance will be, as well as some reassurance about the importance of such protections. My understanding is that if the UK were to negotiate membership of the EEA, most EU environmental legislation would continue to apply, including measures covering pollution control, chemicals and waste management but not the bathing water directive or the birds and habitats directive. If the UK were outside the EEA, most environmental legislation would cease to apply. The main exception would be when companies sought to export to the EU; they would be obliged to conform to product standards and other requirements in order to do so.

Many EU directives have been transposed into UK law through primary or secondary legislation under Acts other than the European Communities Act 1972, and that legislation would continue to apply until it was changed by Parliament. EU regulations would present a different problem for the Government, however. They are directly applicable in the member states, so they could immediately cease to apply. A thorough audit must be carried out and clear guidance given to the House and the general public—who felt, throughout the referendum campaign, as though they did not really have the information that they needed to make the momentous decision that lay before them—about what protections could be under threat in each possible scenario, so that they can make up their minds about which of the scenarios they ought to support. We also need to know what the Government intend to do in each case.

There are, however, serious doubts about DEFRA’s capacity to do that. We know that the Department was woefully unprepared for a Brexit result; the Secretary of State told us that there was no plan B. The coalition Government slashed DEFRA’s resource budget by 38%, and the Chancellor last year announced a further cut of 15% for this Parliament. DEFRA and its agencies have lost a quarter of their staff. I hope the Minister will be able to tell us how the Department will begin to review and untangle EU directives and regulations when we know it does not have sufficient staff or resources for even its day-to-day work.

I urge the Government to bring in experts from outside Parliament—for example, Professor Tim Lang and the Food Research Collaboration—who are already gathering ideas, meeting, discussing and trying to collate a strategy for how we should proceed. We need to know from the Minister which civil servants from DEFRA and DECC will take part in the EU unit led by the right hon. Member for West Dorset (Mr Letwin), and what their remit will be.

I am concerned that if some in the Government have their way, we will have a bonfire of protections. Some of the most prominent leave campaigners are also climate change deniers, and there has also been much anti-EU rhetoric over the years, casting environmental protections as an over-bureaucratic burden rather than a benefit. The Chancellor, before he became an EU enthusiast, tried to claim that those protections placed

“ridiculous costs on British businesses”—[Official Report, 29 November 2011; Vol. 536, c. 808.]

but the Government’s review proved him wrong.

During the referendum campaign, the Minister with responsibility for farming, the hon. Member for Camborne and Redruth (George Eustice), vowed that the nature directives would go after Brexit. He described them as “spirit-crushing green directives”—although, to be fair to him, he later said that that comment was slightly misrepresented. He also said that the marine strategy framework directive, which requires member states to achieve good environmental status in marine waters by 2020 and promote a more sustainable approach to marine-related economic and social activities, would go. We need reassurance from the Minister that those voices will not prevail in the post-Brexit scenario.

The European Commission’s “fitness check” of the directives and, tellingly, their regulatory burden, is due to report soon. In the largest response ever to an EU consultation, more than 500,000 people called for the nature laws to be kept and to be better enforced. More than 100,000 of those responses came from UK citizens. British organisations such as the Royal Society for the Protection of Birds have been instrumental in defending the directives, not just in the UK but across Europe.

Another example of the European Union discussing issues that affect the UK—it is not a question of legally binding obligations being imposed on us, but we certainly ought to be part of the negotiations—is the EU circular economy package, which was agreed at the end of last year. There have already been reports that during the negotiations, the UK tried to water down the package, arguing against mandatory targets and priding ourselves on inserting the word “voluntary” throughout the text. Scotland has brought forward national plans to implement the package, and Wales has its own blueprint for moving to a more circular economy. What will England do now? If the EU circular economy package is properly implemented—that is quite a big “if”—the potential for new jobs and innovative new lines of business is huge. I would like the Minister to reassure us that we will not allow Brexit to derail our progress.

A further example is the neonicotinoids ban. The European Food Safety Authority is reviewing the EU’s restrictions on the use of neonics and the latest scientific evidence of their harm to bees and other pollinators. Its assessment will inform whether changes should be made to current EU restrictions and, indeed, whether they should be extended to cover all crops. Will the UK base its view on future regulation on the EFSA assessment? Or, since those restrictions were only introduced in the first place thanks to the EU, do the Government see that as an opportunity—as the right hon. Member for North Shropshire (Mr Paterson) does—for overturning the current ban?

I also want to mention the impact on farmers and the managed environment. The common agricultural policy is far from perfect, but it is a lifeline for British farmers—around 55% of their income comes from EU subsidies. Britain’s lack of food self-sufficiency, which now stands at 61%, makes us overexposed and vulnerable to Brexit. As most experts are agreed that prices for imported food are likely to rise, we will have real difficulties offsetting that with more, much needed British-grown food, given how reliant the sector is on free movement of labour from within the EU and on migrant labour—I think I am right to say that 38% of workers in the food and farming sector come from outside the UK, and their situation is much in doubt in a post-Brexit scenario.

The leave campaign promised that a post-Brexit UK Government would be more generous to farmers, but we know that the UK lobbied for cuts to CAP support. We also know that the UK had the option of transferring 15% spending to pillar two for rural development, but only opted for 12.5% modulation, showing worrying signs about the possible direction of travel.

There are already too many examples of the Government not meeting EU requirements. As I have said, they had to be taken to court by ClientEarth for breaching EU clean air laws, as well as by the World Wide Fund for Nature and the Angling Trust over their failure to protect our rivers, lakes and coastal areas from agricultural pollution. The water framework directive required “good” ecological status by 2015 in all water bodies, but only 19% of those bodies currently comply. Some beaches have been de-designated by the Government so that they do not have to warn swimmers about poor water quality or test the waters.

Finally, some people were worried that by staying in the EU we would end up as a signatory to the Transatlantic Trade and Investment Partnership, and that our hard-won environmental, food safety and animal welfare standards could be compromised as a result. For example, the EU does not allow hormone-pumped meat, but the US does. What happens now? Just when the EU looks as if it will resist TTIP—signals from France and Germany suggest that it will do so in its current form—will Brexit mean that the UK Government end up negotiating a bilateral trade deal with the US? If so, will our much weaker bargaining position mean that we cede ground on those important standards? Rather than “taking back control”, bilateral negotiations with the US could leave us with even less control. With so many unanswered questions, and faced with losing EU protections, Ministers need to assure us that Brexit will not mean environmental degradation and pollution spiralling out of control.

--- Later in debate ---

[Philip Boswell]

I thank my hon. Friend for his commendable comments. I agree with him wholeheartedly.

Matthew Bell, the chief executive of the Committee on Climate Change, said:

“if you don’t have CCS, then you really need to virtually completely decarbonise your transport sector and completely decarbonise your heating sectors, in order to deliver on the 2050 ambition”.

Since both these sectors seriously lag behind in the decarbonisation of energy production, this seems extremely unlikely, to say the least. The underlying message of the changes is that the cost of subsidising renewable energy has been underestimated by the Government. That has led to the Treasury’s withdrawal of the green deals for consumers, housebuilders and energy investors alike. The Government have instead put all their eggs in the dual basket of fracking and nuclear energy, neither of which looks to be progressing very smoothly, and that makes achieving the UK’s mandatory climate change targets highly unlikely. My hon. Friend the Member for Aberdeen South (Callum McCaig) and the hon. Member for Brighton, Pavilion (Caroline Lucas), who is no longer in the Chamber, touched on the problems of Hinkley C. As anyone can see, this history of successive short-termist UK Governments continuously moving the legislative goalposts can only undermine investor confidence. Brexit will only serve to exacerbate that problem further, which was a point well made by the hon. Member for Brent North (Barry Gardiner), who is no longer in the Chamber.

On energy security, last year I was a member of the European Energy Market Design Committee. The Committee was at a very early stage of engagement, but the potential for cross-European energy sharing among EU members via interconnectors and the like was striking. I wonder if that Committee will even sit again this year, given Brexit. It should be obvious to all that an efficient interconnector network and shared energy design across Europe would benefit all. When the wind is blowing in Scotland, as it invariably does, the energy that is generated can be used elsewhere. If there is no wind, but the sun is shining in Spain, we can share that mutual benefit. I sincerely hope the Committee does meet again, but we have just made things much harder for ourselves as we try to co-ordinate European efficient energy supply from without the EU.

I should say at this point that Scotland has no intention of suffering the fallout from Brexit, the ramifications of which are still to be understood. As my hon. Friends the Members for Aberdeen South and for Berwickshire, Roxburgh and Selkirk (Calum Kerr) both pointed out, we are staying in Europe.

I, like most sensible politicians, turn to independent experts for opinions and answers to questions about complex matters such as the natural environment. My points about the circular economy have been well made by other Members, so I will skip on to my next point.

The Institution of Environmental Sciences is currently conducting a survey of its members, in which it asks:

“What impact do you think the UK’s decision to leave the EU will have on environmental protection?”

An overwhelming 81% of highly educated, experienced environmental professionals consider that

“Without binding EU law, it is likely environmental regulations will be weakened or scrapped in the UK.”

A pre-EU referendum survey of members of the Institution of Environmental Sciences showed that 68% were in support of the UK remaining in the EU. The UK has been disproportionately successful in securing funding for research projects in the environmental sciences and other sectors due to the strength of our science base. Under the seventh framework programme, FP7, which ran from 2007 to 2013, €1,704 million was spent on projects falling under the environment theme. Of the 4,055 projects funded under the FP7 environment theme, according to the Community Research and Development Information Services, 603 were based in the UK, which made us second only to Germany, with 645.

[Kerry McCarthy]

The hon. Gentleman makes a really important point about the contribution of EU funding to research. I recently visited the Plymouth Marine Laboratory. While I was there, it was announced that it would receive a significant six-figure sum from Europe to fund some of its research, but obviously it is now very worried about what Brexit will mean. I also went to Harper Adams agricultural University, which does amazing work with lasers, drones and all sorts of hi-tech research. Again, that is dependent on EU funding to a large extent.

[Philip Boswell]

I completely agree with the hon. Lady and share her concerns about funding when Britain leaves the EU. Brexit does not bode well for the future of positive environmental projects in the UK.

I want to ask a number of questions of the Minister and to make a final point. First, Scotland has an incredible opportunity to be a world leader in a range of renewable technologies that are a vital part of our energy supply in the UK. They help the environment and create jobs in communities across Scotland. What steps will the Secretary of State and her Government take to ensure that Scotland remains at the forefront of renewable and offshore industries?

Secondly, the recent vote to leave the EU has plunged the UK’s energy sector into further uncertainty. The SNP calls on the UK Government to halt their damaging programme of austerity and to inject the economy with the investment necessary to stimulate growth and create a healthy environment for investors and consumers alike. What will the Government do to protect businesses and consumers from the Brexit fallout?

Thirdly, the SNP believes that enhancing energy efficiency in homes throughout the UK can provide valuable benefits to individual consumers, from improvements to quality of life to reducing fuel poverty, which is a key issue that has not been touched on enough today. The energy efficiency of homes should be a top priority so, in that respect, what does the Secretary of State intend to do to reduce fuel poverty? Fourthly, what do she and her Government intend to do so that we will hit our climate change targets and keep the lights on?

Renewable energy storage and efficiency are key to the future of UK energy. More needs to be done on non-intermittent green energy, so I urge the Secretary of State to invest in pumped storage, particularly at Cruachan and Coire Glas in Scotland.