New Clause

Executive Committee Business – in the Northern Ireland Assembly at 11:30 am on 2 February 2010.

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Photo of William Hay William Hay Speaker 11:30, 2 February 2010

We now come to the third group of amendments. With amendment No 10, it will convenient to debate amendments Nos 11, 12, 13 and 14, which deal mainly with new waste management powers that will be given to councils.

Photo of Edwin Poots Edwin Poots DUP

I beg to move amendment No 10: After clause 18, insert the following new clause

“Exercise of waste management functions of councils

Exercise of waste management functions of councils

.—(1) For the purposes of this section—

‘joint committee’ means a committee appointed by two or more district councils under section 19 of the Local Government Act (Northern Ireland) 1972 (c. 9) and ‘incorporated joint committee’ means a joint committee in relation to which an order under subsection (9) of that section is in force;

‘waste management functions’ are functions exercisable by a district council or incorporated joint committee—

(a) under Part 2 of the Waste and Contaminated Land (Northern Ireland) Order 1997 (NI 19); or

(b) for the purposes of, or in connection with, the exercise of such functions;

‘waste management contract’ means a contract for the purposes of, or in connection with, the carrying out of waste management functions.

(2) A district council has power to enter into a waste management contract containing—

(a) terms under which the council guarantees, or provides warranties or indemnities in relation to, the performance by any other district council or any incorporated joint committee of its obligations under that or any other waste management contract;

(b) terms which impose joint or several liability on the council and any other district council or incorporated joint committee in respect of a breach of a term of that or any other waste management contract.

(3) Two or more district councils (‘the participating councils’) may enter into an agreement under which one of those councils (‘the lead council’) is to act on behalf, and in the name, of all the participating councils in relation to the exercise of such waste management functions of the participating councils as are specified in the agreement (‘the specified waste management functions’).

(4) Where such an agreement is in force—

(a) the lead council has all such powers as are necessary to give effect to the agreement including in particular—

(i) power to act on behalf, and in the name, of all the participating councils in relation to the exercise of the specified waste management functions;

(ii) power to exercise the specified waste management functions of other participating councils, including functions relating to acquiring and holding property, borrowing money and entering into waste management contracts;

(iii) power to receive and hold property on behalf of, and in the name of, participating councils;

(b) any other participant council has all such powers as are necessary to give effect to the agreement including in particular power—

(i) to borrow money for that purpose; and

(ii) to make payments to the lead council for that purpose.

(5) Nothing in this section is to be construed as derogating from any power of a council exercisable otherwise than by virtue of this section.”

The following amendments stood on the Marshalled List:

No 11: In clause 19, page 11, line 28, at end insert

“and

(c) section (Exercise of waste management functions of councils)(1) and (2) (contracts for waste management purposes).” — [The Minister of the Environment (Mr Poots).]

No 12: In clause 19, page 11, line 35, at end insert

“and

(c) section (Exercise of waste management functions of councils)(1) and (2) (contracts for waste management purposes).” — [The Minister of the Environment (Mr Poots).]

No 13: In clause 20, page 12, line 5, after “3” insert “or 5”. —[The Minister of the Environment (Mr Poots).]

No 14: In the long title, after “councillors;” insert

“to make provision in relation to the exercise of waste management functions of district councils;”. — [The Minister of the Environment (Mr Poots).]

Photo of Edwin Poots Edwin Poots DUP

Consultation on my proposals for a waste Bill commenced on 6 April 2009 and concluded on 3 July 2009. There was significant support from consultees for additional measures to facilitate the waste infrastructure procurements. In particular, local government requested that the Bill include the power for councils to grant warranties, indemnities and guarantees and to accept joint and several liability. Moreover, consultees requested that those measures be moved from the waste Bill to the Local Government (Miscellaneous Provisions) Bill.

That matter was raised again by the representatives of local government groups during the Local Government (Miscellaneous Provisions) Bill’s Committee Stage. In its report on the Bill, the Committee for the Environment recommended that:

“in order to encourage and enhance the confidence of bidders and financiers when competing to provide waste infrastructure, the additional vires should be brought forward from the Waste Bill and included in this Bill.”

I fully accept that recommendation.

Amendment No 10 provides the additional waste vires requested by district councils and waste management groups as well as the Committee for the Environment. The amendment relates primarily to clarification on the granting of warranties, indemnities and guarantees, and the acceptance of joint and several liability. District councils do not currently have the express power to guarantee the obligations of other councils and incorporated joint committees. It is likely that in connection with any contract award relating to waste infrastructure management, the contractor and/or financiers will seek to have cross-guarantees with each of the councils for the obligations of the contracting party under the contract. That is because the individual councils are the bodies of substance in the arrangement. District councils will also be required to provide warranties, indemnities and cross-indemnities in their waste management contracts in order to provide reassurance to prospective contractors and financiers.

Those powers will need to be exercisable whether a council is acting simply in its own right or on behalf of other councils in a waste management group. Similarly, incorporated joint committees will require the power to provide such assurances. One example of such an obligation would be in a situation in which a council gives a warranty to deliver a specified tonnage of waste to a contractor for treatment. If a council defaults on the waste to be delivered, other councils need to be able to pick up on the default.

The district councils in a waste management group may have to become jointly and severally liable for any loan made to an incorporated joint committee or to a lead district council. If councils have joint liability, they are each liable up to the full amount of the relevant obligation. That makes it easier for a contractor or a financier to recover damages in the event that a district council or a waste management group has breached the terms of a contract, and, consequently, more likely that a contract will be entered into.

The North West Region Waste Management Group is an unincorporated joint committee, and as such, is conducting its waste infrastructure procurement process through its lead council. Subsection (4) of the proposed new clause clarifies that in such cases, a council has clear powers to act on behalf of other councils, with their agreement, for waste management purposes, and that individual councils have powers to deliver their waste management functions through other councils. That includes power for a local council to enter into contracts, acquire property and borrow money for the purpose of exercising the waste management functions of participating councils in the waste management group.

SWaMP2008 and Arc21 have established incorporated joint committees under Orders made by my Department. Clause 19 amends the Orders constituting Arc21 and SWaMP2008 as bodies corporate, making it clear that Part 1 of the Bill, concerning contracts, and clause 18, concerning acquisition of land otherwise than by agreement, apply to both bodies in the same way as they apply to a district council. The amendments to clause 19 also make it clear that subsections (1) and (2), concerning the waste management functions of councils, apply to both bodies.

The proposed amendment to clause 20 simply reflects that any regulations made by my Department will be subject to draft affirmative procedures in the Assembly.

Amendment No 14 inserts an additional phrase into the long title of the Bill. Due to the inclusion of additional measures in the Bill to clarify local government powers to enter into waste management contracts, it is also necessary to ensure that the long title of the Bill is amended to adequately reflect its revised scope. The amendment makes it clear that the Bill also contains provisions concerning the exercise of waste management functions of district councils.

That concludes my explanation of my proposed amendments in the third group.

Photo of Dolores Kelly Dolores Kelly Social Democratic and Labour Party 11:45, 2 February 2010

May I raise a matter under Standing Orders, Mr Speaker? It is my understanding that Members have to stand when addressing the House, and must not do so from a seated position. Is that not the case?

Photo of William Hay William Hay Speaker

It is very much the convention that Members who speak in the Chamber must stand in their place to do so.

Photo of Dolores Kelly Dolores Kelly Social Democratic and Labour Party

Perhaps the Minister will bear that in mind when moving the subsequent amendments.

Photo of Edwin Poots Edwin Poots DUP

On a point of order, Mr Speaker. I have specific instructions to remain seated when moving the amendments. Perhaps the Speaker will provide clarification on that.

Photo of William Hay William Hay Speaker

That has always been the convention and the practice for all Ministers. They are only moving an amendment; they are not speaking.

Photo of Dolores Kelly Dolores Kelly Social Democratic and Labour Party

I would be grateful for clarification on that point, because a number of Members were looking quite confused.

Photo of William Hay William Hay Speaker

I assure the Member that I am not confused. I think that that is important.

Photo of Dolores Kelly Dolores Kelly Social Democratic and Labour Party

Thank you indeed, Mr Speaker.

The amendments in group 3 focus on waste manage­ment. Local authorities and, indeed, waste management groups have made the Committee acutely aware over the past 18 months of the importance of the Bill in the functions of waste management.

The Committee greatly welcomes the new clause to be inserted after clause 18. NILGA and Arc21 advised the Committee that bringing forward powers that are proposed for inclusion in the draft waste Bill could enhance the confidence of bidders and financiers who are being encouraged to compete to provide waste infrastructure procurement. Although that may be welcome for the management of waste in general across the North, the Committee’s primary concern was the impact that European waste management obligations would have on ratepayers.

The Department advised the Committee that although it was confident that the timing of the draft waste Bill would ensure that all contract provisions would be in place in good time, it was considering bringing in those additional powers earlier by incorporating them into the Local Government (Miscellaneous Provisions) Bill to give greater confidence to bidders and financiers. The Committee agreed that it should recommend that to encourage and enhance the confidence of bidders and financiers, and thereby reduce cost to ratepayers when competing to provide waste infrastructure, the additional powers should be brought forward from the draft waste Bill and included in the Local Government (Miscellaneous Provisions) Bill. The Department is to be commended for doing that.

The Committee recognises the need for amendment Nos 11 and No 12, which will accommodate the inclusion of the waste powers. The Committee also welcomes amendment No 14, which extends the long title to incorporate the additional waste powers. As I mentioned when discussing amendment No 9, the Committee welcomed the Minister’s proposal to require the additional chapter 5, which provides for the transition of the responsibility for calculating and setting the district rate to be laid before and approved by a resolution of the Assembly. The Committee accordingly welcomes amendment No 13.

Photo of Cathal Boylan Cathal Boylan Sinn Féin

Go raibh maith agat, a Cheann Comhairle. I am delighted that someone in the Chamber is not confused. I thank Mr Ford and Mr McGlone, who has left the Chamber, for livening up the debate.

Waste management will be a major concern in any new council realignment. It is incumbent on the Committee to ensure that the powers that are transferred to councils are relevant and effective. Sinn Féin supports the amendments in this group and sees the powers to acquire lands for the disposal and management of waste as a positive step in meeting local council responsibilities. They will ensure that councils meet EU targets and protect ratepayers from EU infractions.

The Local Government (Miscellaneous Provisions) Bill, along with the draft waste Bill, will be key to the success of local authorities having the waste infrastructure to deliver for local communities. Perhaps the Minister will provide some clarification on the draft waste Bill. Sinn Féin welcomes the Consideration Stage of the Local Government (Miscellaneous Provisions) Bill and hopes that the Assembly will welcome it as another step on the road to changing the face of local government for the benefit of everyone.

Photo of Roy Beggs Roy Beggs UUP

I support the amendments in group 3. I want to speak in particular about amendment No 10, which extends councils’ warranties and indemnities to other councils. That amendment may seem strange on first reading or if it is read in isolation. However, it is, as the Minister said, an enabling measure for local councils, and it is they that must carefully read any subsequent contracts and make decisions accordingly.

I understand that future waste management contracts will require significant capital infrastructure. In turn, those who provide them will want to have guaranteed streams of material for processing to protect their investment. If that were to be agreed, it would provide the best value for the ratepayer in negotiating those contracts. However, it is important that local councils entering into such contracts do so carefully and with great consideration so that appropriate figures are bought into.

I support the fact that this enabling legislation passes the responsibility as an option to local councils. I hope that it will, in turn, result in savings to ratepayers if appropriate values are entered into in the contract. I support amend No 10 and the others in that group.

Photo of David Ford David Ford Alliance

I am not sure how to respond to being told by Mr Boylan that I make this place interesting, because I was proposing to be extremely boring at this point.

There were doubts among some of those involved in waste management, whether from council groups or potential private tenderers, about the vires that would apply to either a lead council arrangement or a joint committee arrangement, whether incorporated or otherwise. In proposing amendment No 10, which is fairly extensive and contains a full new clause, the Minister has dealt with those issues and ensured that the necessary reassurance is given, bearing in mind the increasing size and scale of contracts for waste management. I welcome that, and the consequential amendments that flow from it. I also welcome his reassurance on affirmative resolution.

It is unfortunate that another Bill from the Department of the Environment requires the long title to be amended. Nonetheless, that is completely within the scope of the Bill as was originally suggested. We welcome the fact that it will now be a better Bill and that it will provide significant financial savings in the future to those who pay rates for the disposal of waste right across Northern Ireland, whichever format of organisation is adopted.

Photo of John Dallat John Dallat Social Democratic and Labour Party

I welcome the Bill and the amendments. I am glad that the Minister is smiling, because I will refer to him. The Minister referred to the North West Waste Region Management Group, and I know that he is very familiar with what is going on there. I thank him for his direct intervention.

Waste management entails making provision for the disposal of waste. The situation that I am faced with, as are others, is the over-provision of waste. Given that there have been problems throughout Europe, has the Minister given any thought to what happens when one discovers that a cluster of landfill sites has been identified in planning applications? There is now an opportunity to deal with that. I hope that the Minister has given some thought to what form of protection can be given to communities finding themselves in that situation.

The European Council Directive 1999/31/EC on the landfill of waste clearly states that the aim of landfill is to protect the environment and that such protection must include the situations where up to four potential landfill sites are identified in one area. I know that the Minister has taken the matter seriously, and he wrote to me earlier in the week offering some degree of comfort.

During the process of the Bill, I hope that thought will be given to areas that may find their environment potentially destroyed as a result of the activities of new councils and how they oversee their waste management, particularly where private contractors are involved, as is the case in the north-west.

Photo of Edwin Poots Edwin Poots DUP 12:00, 2 February 2010

The television programmes tonight will include major reports about an outbreak of peace in the Assembly and that harmony has prevailed, and, as we exit the Chamber, there will be a wall of flashing cameras and pressmen waiting to ask us all about it. It has all come about in the debate on the Local Government (Miscellaneous Provisions) Bill, so it is great to be involved in that.

I will address some of the issues that Members raised in the discussion. Mr Boylan asked the question: where is the waste Bill? The intention is to introduce that Bill when it has been cleared by the Executive, and I want to clear it with the Executive this month. Therefore, we will have the opportunity to debate the Bill’s legislative passage, which will include the Committee’s detailed scrutiny of the legislation. Indeed, the draft Bill and the explanatory and financial memorandum have already been forwarded to the Committee for information purposes.

Most Members spoke very clearly in support of everything that we are doing here. Mr Dallat made a Freudian slip when he referred to the overprovision of waste: I assume that he meant to say the overprovision of waste-management sites.

Photo of John Dallat John Dallat Social Democratic and Labour Party

On a point of order, Mr Speaker. I thank the Minister for pointing that out. It was a very serious mistake that could have unfolded the whole thing.

Photo of Edwin Poots Edwin Poots DUP

The point that I made is true, which is why I raised it: there is an overprovision of waste. I am getting into another debate, possibly, but we need to ensure that there is a significant reduction in the amount of waste produced in the first place. That will help to offset the problem to which Mr Dallat referred. We are picking up evidence that there is an overprovision of waste sites. At one stage, it seemed that quarries had struck gold because everyone wanted to put landfill in old quarries. However, the cost of landfill is coming down, and there is quite a bit of competition in that area now.

I want to make it absolutely clear that I see landfill as the last resort for waste. First, I want to see a reduction in waste. Secondly, I want to encourage recycling, and my Department has set a target of increasing recycling levels to 50% by 2020. I will look at that target, because I think that it could be even higher. Thirdly, I want to see energy recovery from waste.

Photo of David Ford David Ford Alliance

I hate to disagree with the Minister on a day of such unanimity but should it not be a matter of encouraging waste reduction and reuse before recycling?

Photo of Edwin Poots Edwin Poots DUP

That is a fair point. I want there to be less waste left at the point of recycling. Where there is waste left at that point, we need to go for energy recovery. I am prepared to take on the challenge of energy recovery. It does not have to be through incineration, but that should not be excluded. There is a whole series of measures for dealing with waste, including incineration, anaerobic digestion, gasification and autoclaving.

Another point made, and it is a very valid point, is that councils and waste-management bodies need to be very careful about the contracts that they enter into. If a council enters into a contract with a company to provide an energy-recovery facility at huge cost, and the council does not have the materials to supply that facility, it will end up having to pay for materials that it does not need to get rid of. That will place an undue burden on ratepayers. We need to move forward very cautiously and ensure that we identify the appropriate amounts of waste that will go into energy-recovery facilities. That was a slight diversion perhaps, but it is relevant to the issue of waste. I think that I have covered most of the points that Members made.

Amendment No 10 agreed to.

New clause ordered to stand part of the Bill.