Clause 6 - Borrowing and banking of landfill allowances
Waste and Emissions Trading Bill [Lords]
4:30 pm
Mr John Hayes (South Holland and The Deepings, Conservative)
The problem is that the borrowing system that the Minister envisages needs to be seen in relation to the accelerating targets. If authorities borrow early and their targets get stiffer and stiffer, as they surely will, they might find themselves in considerable difficulty in the medium and long term. If there were a flat-line target, and they were expected to perform in a roughly equivalent way year on year, it would not be so much of a problem. My anxiety is caused by the combination of tough, accelerating targets and the potential for early borrowing against allowances.