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Dept for Environment Food and Rural Affairs

Answer

Miss McIntosh: To ask the Secretary of State for Environment, Food and Rural Affairs what measures are being taken to ensure that high environmental standards do not conflict with industrial competitiveness. [222384] Mr. Morley: Contrary to some views, there is no need for high environmental standards to conflict with industrial competitiveness or economic success. In many cases, high environmental standards can bring both the benefits of a good environment and direct economic benefits to sectors of industry. Well designed environmental regulation can be a stimulus to innovation and industrial efficiency. Defra's aim is sustainable development, which means a better quality of life for everyone. We understand that quality of life is dependent on a strong, fair society, economic prosperity and the quality of people's current and future environment. In all the policy making that we undertake, we therefore attempt to properly balance the effects of our policies on each of the social, economic and environment areas and to maximise the net benefit--so that each of our policies take the country closer to sustainable development. Ensuring the UK has industries that can trade competitively in international markets is a key part of maintaining economic prosperity in the UK. Policy proposals pass through an option appraisal,-- the regulatory impact assessment--looking at the net costs and benefits of each option proposed. This includes the benefits and costs which do not have a market value (for example, ecosystems) and will include the impacts on competitiveness. In many cases, the benefits of policy in one area--for example an improvement of people's environmental quality--are traded off against smaller costs in others, for example costs to consumers to particular service. That is very different to an impact on the UK's competitiveness. The Government take the issue of impacts on competitiveness very seriously. Nevertheless, it is not easy to predict the impact of any policy on competitiveness of the UK as a whole--the dynamic effects of any stimulus rely on complex interactions. To appraise impacts on competitiveness--rather than just the static impacts on any industry which are already appraised--the Government are developing a methodology for use in cost-benefit analysis. Defra is fully committed to using this methodology to take better account of any impacts, good or bad, or our policy on competitiveness. Defra therefore is serious about setting goals with net benefits for the UK and achieving those goals in the most efficient way, maximising benefits and reducing costs. Most environmental legislation comes from Brussels. We are influential in shaping that policy to meet our broad sustainable development goals. Pushing the better regulation agenda--to increase the efficiency of policy, set appropriately balanced goals and reduce unnecessary burden on business--is one of our five priorities for our presidency of the Council during 2005. We are already seeing success in the use of better impact assessments and simplification of existing measures. Further, my Department is leading the way in Whitehall in reducing the administrative burden of regulation, something that may impact on the UK's competitiveness. We have committed to reducing the information and form filling burden on those industries we regulate by 25 per cent. of the next five years. The impacts of policy on industrial sectors depend significantly on the regulation and inspection of firms and individuals by the agencies and bodies responsible for that task. My Department continues to work with its sponsored delivery bodies to cut unnecessary administrative burden, a process which will lead, amongst other things, to a consolidation of functions over the next four years. These are only some of the steps that my department will be taking to meet the joint goals of economic prosperity and high environmental standards.

Secondary information

Type

Written question

Reference

432 c1529-30W;432 c1525-6W; 222384

Session

2004-05

Subjects

Competition Environment protection Industry Regulation

Link

View this Written question on www.publications.parliament.uk