Peers warn of “fatal flaw” in bin charging schemes

Peers debating the Climate Change Bill last night warned of a “fatal flaw” in Defra's plans – that waste charges purporting to change householders' behaviour could be based on estimated figures drawn from previous behaviour.

Raising the issue, Tory life peer Baroness Byford told ministers: “I can clearly see the advantage for the authorities that carry out the pilots in being able to bill in advance, but I cannot see the advantage for the consumer.”

Baroness Byford, who is a spokesman for food, farming and rural affairs for the Conservatives, warned that a system in which incentives or rewards are paid as reimbursement after charges have already been enacted in advance would not favour families.

“Disrepute”

Liberal Democrat life-peer Lord Greaves, who was formerly a councillor for more than 25 years in Lancashire, also spoke out against advance billing, warning that the whole system of recycling incentives “could be brought into disrepute” by advance billing.

He said: “There is something wrong about sending out the bills on the basis of historical behaviour before people have changed their behaviour. This will not work.”

Lord Greaves pointed out that although householders already get utility bills based on estimates, such bills can be checked with meter readings. “You will not be able to do that with rubbish,” he said. “You cannot weigh your own rubbish, or will there be a market for rubbish weighing scales? I do not know.”

However, in a debate that saw government ministers repeatedly defending the need for local authorities to have flexibility in how they choose to run incentive schemes, parliamentary under secretary Baroness Morgan of Drefelin defended advance billing.

“We know from consulting with local authorities that being able to bill in advance or specify payment on account or by instalment could be very important for administering waste reduction schemes effectively,” Baroness Morgan said.

“I believe that behavioural change will come with the incentive of reimbursement, and that reimbursement needs to be well-managed if the scheme is to be effective,” she added.

Defra believes if the incentives are a success and are rolled out nationally, £94 million could be saved in local authority recycling budgets with 62% if 62% of households are covered by an incentive scheme.

Amendments

The debate last night continued the committee stage of the Climate Change Bill, part of which will give five local authorities the powers to trial incentive schemes to reward recyclers and penalise non-recyclers. It saw the Bill surviving any attempts by opposition peers to amend clauses that will be added to the Environmental Protection Act 1990 to grant local authorities the extra powers.

However, the debate did see a number of “probing amendments” discussed by peers – amendments that are not intended to necessarily change a Bill, but force the government to explain its intentions.

Under examination by the Lords committee, government ministers Baroness Byford and Lord Rooker explained issues including definitions used by the Bill and how the incentive pilots will work.

The ministers spoke against all amendments seeking to restrict options for local authorities seeking to run incentive schemes. They confirmed that councils would be free to run schemes covering the whole or part of their areas, and ruled out placing further conditions on those authorities running incentive schemes.

Opposition peers questioned the decision to pilot the schemes in just five local authority areas, and revealed concerns at the possibility of different houses in the same neighbourhood having different charges for the same service.

Concerns about how local authorities would deal with disadvantaged groups were met with the promise of guidance from the government for those councils running pilot schemes.

Charges

With peers revealing skepticism over the charging element of incentive schemes, the government again explained its intention that schemes would be “revenue-neutral”. Money raised from household non-recyclers would have to be given to household recyclers.

Commenting on possible charges for non-recyclers, Lord Rooker told his fellow peers: “There is no incentive for an authority to increase the charge beyond the level needed to affect behaviour. Evidence from Europe suggests that an incentive of about £30 to £50 can be effective in changing behaviour.”

A number of local authorities have already “informally” spoken to Defra about the possibility of running the five pilot incentive schemes – revealed by minister Joan Ruddock as 14 authorities – but Defra is refusing to name names until a formal selection process has been carried out.

Last night saw Lord Rooker fending off more inquiries on which authorities are interested in running schemes, stating firmly: “We are not going to publish any names”.

The Climate Change Bill has two more stages in the Lords before it must pass through the House of Commons ahead of its Royal Assent. Defra has predicted that the earliest that the incentive pilots could begin will be April 2009.