Government

Industry reacts to Brexit

Britain has voted to leave the European Union. Over 33 million British citizens voted in the referendum yesterday (23 June), with 51.9 per cent voting in favour to leave the union after a period of negotiation.

But where does this leave the nation’s environment and waste and resources industry?

Throughout the day we will be collating reaction from stakeholders in the industry, so check back to see how members of the industry foresee the vote affecting their operations and wider waste and resource-use in the United Kingdom.

 

15:00 - FUNDS AND LEGISLATION IN KEY AREAS FOR WELSH LOCAL GOVERNMENT AT RISK

The Welsh Local Government Association (WGLA) says that the vote to leave will cause a 'seismic change in UK public policy' and that time will be needed to fully digest all the implications. However, it is clear that there are serious consequences for Welsh councils both as the largest employer in Wales and as delivers of local public services.

Councillor Bob Wellington CBE, Leader of the WLGA stated: “Councils have strong links with Europe not least when it comes to the use of structural funds, workforce rights and legislation across key areas. While we are signalling an end to our membership of the EU it is vital that promises made during the Referendum by the Leave campaign to protect regeneration funding in Wales are honoured. 

“For local councils, it is also imperative that we do not jettison those positive elements of European legislation, particularly on the environment, which are at the heart of service delivery. Much of the framework of legislation which protects our daily lives has stemmed from this source. The safety of our food, air quality, pollution controls and the product safety of the goods that we buy online or from the high street has been designed with UK input but passed in Brussels.

“There is an extremely important task to undertake over the next period, to ensure that the protections offered to the Welsh public by our councils are not undermined, by removing from the UK the fundamentals of European legislation which provide so much unseen public protection activity at the local level. As a responsible employer local government also has a duty to highlight potential difficulties for our workforce. For example, any prolonged collapse of the stock market will signal huge problems for the £13bn Local Government Pension Scheme in Wales which is fully funded and based on market investment. With an actuarial valuation due this year it is vital that confidence is returned as soon as possible, otherwise millions of pounds will be lost for the schemes pensioners.

"The WLGA recognises that it is early days and there is much to reflect upon. We fully supported the Remain campaign. We fully accept the judgement of the Welsh and UK electorate, and our councils will seek to work with all levels of government to deliver the best possible outcome for communities in Wales.”

 

14:30 - EUROPEAN ENVIRONMENTAL BUREAU: EUROPE WILL HAVE TO MOVE ON TO TACKLE 21ST CENTURY ENVIRONMENTAL CHALLENGES

Jeremy Wates, Secretary General of the European Environmental Bureau (EEB), which works to promote environmental issues on a European and global level and represent the demands of European citizens, comments: “This is bad news for the UK, Europe and the environment. All evidence shows that the EU has brought many environmental benefits for citizens and nature across Europe. It is tragic that these advantages failed to help convince a majority of people in the UK to vote remain.
 
"It is uncertain exactly what will happen next. However, it is clear that the calls by UK Prime Minister David Cameron for EU reform based on haphazardly slashing red tape did not influence the debate. Instead of giving in to short-term demands, it should now be clear to the European Commission, MEPs and member states that another way forward is needed to create a Europe that listens to its citizens and that is fit to tackle the challenges of the twenty-first century, not least by stepping up EU measures to address climate change, resource depletion and ecosystem collapse.”

 

12:40 - APSE: LOCAL GOVERNMENT SERVICES MUST BE PROTECTED

The Association for Public Service Excellence (APSE), which works with over 300 local councils throughout the UK, says that the vote to leave the EU has a 'fundamental impact' on local government.

In a statement, the body wrote: 'APSE recognises that many local government regulations and functions, whilst set within a UK legislative framework, are also governed by European Union regulations. Whilst many may continue unchanged in the short term, and during the exit negotiations with the EU, local government must be fairly represented within a national public service context.

APSE is calling upon the government and all political parties to ensure local government services are protected. A future domestic framework, governing matters such as freedoms and powers for local councils, procurement regulations, environmental protection regulations, employment matters for the local government workforce and, most importantly, council budgets are treated fairly with the full involvement of the local government sector. In developing alternative plans, policies and any necessary legislative changes, local government needs to be fully consulted.'

Speaking about the referendum results, Paul O’Brien, APSE Chief Executive, said: “It is not for APSE to judge the outcome of the referendum. The British people have voted for change, however we must not allow the results of the referendum to bring a further assault on local government finances. The ship is only just steadying from years of austerity budgets and now is not the time to crush the progress that local councils are making in bringing about stable local government services.”

 

12:20 - REA: SERIOUS QUESTIONS OVER INVESTOR CERTAINTY

Dr Nina Skorupska from the Renewable Energy Association (REA): “This result raises serious questions for investor certainty, energy security and much needed investment in the UK energy infrastructure.

“Energy policy must be a priority for the government now, with industry needing reassurance and ministerial clarity on priorities. The first in this list must be confirmation of the 5th carbon budget, which will hopefully give some confidence in the long-term direction of UK energy policy.

“The vast majority of our members had fears of Brexit, and we will be consulting with them and government in the coming weeks to set out a plan for continued low carbon energy investment, deployment and assurance of the 117,000 jobs in this sector."

 

12:10 - FRIENDS OF THE EARTH: ENVIRONMENT IGNORED DURING REFERENDUM, BUT DON'T HAVE TIME FOR IT TO TAKE A BACK SEAT THROUGH NEGOTATIONS

Craig Bennett, Friends of the Earth’s CEO, said: “The referendum may be over but many of the difficult debates are only just beginning. 
 
“The environment must be at the heart of our negotiations with Europe and how we create a positive future for our country. We cannot let the UK return to the days of ‘the dirty man of Europe’. Protections for our birds and wildlife, our beaches and rivers, must not be sacrificed in the name of cutting away so-called EU ‘red tape’.  
 
“The environment was rarely mentioned during the referendum but it must now move up the political agenda. With urgent issues like climate change, air pollution and destruction of the natural world already impacting this generation, not just the next, we don’t have time for the environment to take a back seat through years of negotiations."

 

11:55 - R&WUK TO CALL MEETING WITH GOVERNMENT TO SEE HOW INDUSTRY CAN CONTRIBUTE TO TASK AHEAD

Expanding on individual statements made earlier in the day, Resources & Waste UK (R&WUK), a partnership between CIWM and the ESA, has said the sector must now look to engage with government and key stakeholders to ensure a robust future UK policy framework for resources and waste.

“EU legislation has been a key driver behind the UK’s rapid progress on sustainable resource and waste management over the last two decades and the referendum outcome leaves our sector particularly exposed to the financial and policy uncertainty ahead,” says R&WUK chief executive Steve Lee.

“What isn’t uncertain, however, is the direction of travel; the imperative to move towards greater resource efficiency and security and to develop more circular economic models of resource consumption remains critical to the long term future of the UK. Our sector needs to keep its eyes on the prize and realise its potential as an industry that not only underpins sustainable economic growth, jobs and business competitiveness but also protects our environment and contributes to the health and wellbeing of our communities.

“This will be R&W UK’s job in the months to come; to work with all the necessary stakeholders and government to ensure that the policy and investment needs of our industry are recognised and that we have the right framework to deliver the maximum environmental and economic benefit for the UK in the future. We will initially be calling for an early meeting with government to discuss their plans and explore how the industry can contribute to the task ahead.”

 

11:45 - RESOURCE ASSOCIATION: CLEAR SIGNALS THAT GOVERNMENT RECOGNISES VALUE OF OUR INDUSTRIES NEEDED

Resource Association Chief Executive Ray Georgeson warned earlier this year that a vote to leave the EU would remove the UK's ability to shape and influence future legislation and yet would likely need it to be compliant with emerging EU law - 'a “lose – lose” situation’.

Reacting briefly today, Georgeson said: "The decision the people have made to leave the European Union will create uncertainties for many industries including our own. We made this clear during the referendum campaign but recognise that the public have made a decision about the UK's future in the EU.

We must continue to advocate the power and value of the circular economy and ensure that our concerns about policy uncertainty are addressed. We will be looking for clear signals and reassurances from the Government that they recognise the potential and value of our industries and that they commit to a more resource efficient future, regardless of our future status in Europe."

 

11:25 - RWM AMBASSADORS: SECTOR MUST LEAD TO DEVELOP SOLUTIONS

Barry Dennis, Chair of the RWM Ambassadors Group, said: "We have woken up to a different world and Britain is not the same as it once was. The results of the EU Referendum indicate that the majority of the UK electorate wish to leave the EU which means we need to face the unknown and carve out a stronger future for Britain on our own.
 
Barry Dennis
"So much has been said and done over the past months; views shared, evidence brought to attention and promises made. There have been many voices shouting to be heard, which have left us all a little bruised. In some ways, our country has never been so vocal and yet so divided. But now is the time to focus on the future and that means, a long road ahead of us with us united!
 
"We have already seen the effects of this referendum result on the markets and although we expected this volatility, it is still very daunting. It is early days and we will need to see how the UK Government responds. But what we do know already, is that for a stronger and more sustainable future for our sector, we will need to lead strategically and develop solutions as opposed to waiting for steer from existing legislation.
 
"We will not have all the answers in the next few weeks or months. Instead, it will take many years and fierce determination for us to achieve our aspirations for a circular economy, a greener environment and sustainable existence.
 
"As Chair of the RWM Ambassadors Group, I promise you that we will be doing everything in our power to drive forward the resource management agenda.
 
"Nelson Mandela once said: “When people are determined, they can overcome anything.”
 
 

10:45 - CIWM: THERE HAS NEVER BEEN A MORE IMPORTANT TIME FOR OUR INDUSTRY TO WORK TOGETHER

Steve Lee
Steve Lee, Chief Executive Officer of the Chartered Institution of Wastes Management (CIWM), said: “The decision for the UK to leave the EU is not what most CIWM Members, or many environment sector professionals, have said they wanted. While it was conspicuously absent from the respective referendum campaigns, there is no hiding from the fact that EU membership has been a strong positive force for the quality of our environment and the associated benefits for our health, well being, jobs, skills, growth and general sustainability.

“Stepping out of the EU brings financial, policy, legal and performance uncertainty which may well threaten a slow-down or reversal of the improvements we have enjoyed in recent years. As sustainable resources and waste management professionals, as an Institution, and as an industry we must now work together to build on what has been achieved to date. This will require leadership, determination and an industry ready to work with Governments – of whatever flavour – to protect what we have and to drive for further improvement. More than ever now, we need forward looking strategies across the UK to support investment and performance in this sector.”

“As far as this Institution is concerned, there has never been a more important time for our industry to work together and to use our body of knowledge and expertise to help influence and deliver a new environmental vision for our country.”

 

WILL NEGOTATION PERIOD STIFLE AMBITIONS?

10:35 - BRITAIN MUST COME UP WITH PLAN AS IT JETTISONS STRONG EU ENVIRONMENTAL AGREEMENTS

In response to the UK’s decision to leave the EU, Matthew Spencer, Director of environmental think tank Green Alliance, said: “The nation is divided, and our environment is one of the few things left which we have in common. Britain will now have to create new national laws and stronger public institutions to fill the gaping holes that will be left as we jettison strong EU environmental agreements. The public did not vote for a race to the bottom, they will expect standards of environmental protection to be at least as strong in the UK as they are in France and Germany. We now need a plan from government to achieve that.”

Green Alliance organised a letter to Environment Secretary Liz Truss in January in which 14 signatories, including four former chairs of UK environment agencies, warned of the environmental risks of leaving the EU.

 

10:30 - LARGE WASTE COMPANIES EXPERIENCE IMMEDIATE SHARE PRICE DROP

Reflecting the wider stock market this morning, some of the large waste and resource management companies suffered share price falls as the market opened this morning. Suez and Veolia's shar eprice are currently 4.5 per cent down from closing yesterday, while Pennon Group, the owner of Viridor, is down 2.7 per cent.

 

10:15 - SUEZ: EU HAS BEEN CRUCIAL IN DRIVING ENVIRONMENTAL POLICY, MUST NOT LET RENEGOTIATION PERIOD CREATE VOID AT NATIONAL POLICY LEVEL

David Palmer-Jones, CEO for SUEZ recycling and recovery in the UK, spoke storngly in favour of the Uk staying in the EU at last week's Resourcing the Future conference. This morning he has said: "SUEZ respects the democratic will of the people and our focus remains with our policy of deriving the maximum value and energy from the waste Britain's households and businesses produce every day. While the UK renegotiates its EU membership for the years ahead there is a risk of a void at a national policy level. 
 
Defra figures show dip in English recycling
David Palmer-Jones
"As we transition to a more resource efficient economy, something to which all UK devolved administrations aspire, the waste and resources sector continues to seek vision and leadership from Whitehall.  EU membership for Britain has been a crucial and effective driver of environmental policy and legislation which has seen the United Kingdom transform from being the ‘dirty man of Europe’ to a solid environmental performer. 
 
"Our industry has a very clear vision and understanding of what needs to be done to ensure that we continue to make environmental improvements with or without EU membership. The environmental services industry stands ready to maintain its work with UK policy-makers to ensure that we have a positive future in front of us, and that we build on the environmental gains achieved over the last two decades.

"We will be working closely with each local authority and with all businesses where policy commitment remains high in turning our waste into a resource."

 

10:00 - ESA: UNCERTAINTY CAN BE MADE INTO OPPORTUNITY IF ACTED UPON QUICKLY

Jacob Hayler
The Environmental Services Association’s (ESA) Executive Director Jacob Hayler said: “The referendum result will extend and intensify the uncertainty around both our industry and the UK more generally. The danger now is that the waste and recycling sector is placed at the bottom of the government’s in-tray. It is therefore vital for us to make the case for the circular economy within the UK and to highlight the advantages of a strong and competitive resource efficient economy.

“Once the dust settles it will be absolutely critical for investment in our industry that the government acts quickly to set out the terms of a UK exit and what it means for the waste sector. Regardless of our membership of the EU, there is huge scope for the waste and recycling sector to do things better and for the UK to improve its resource efficiency.

“The public’s vote has been cast and, while there may be threats, we must turn it into an opportunity and press the government for the long-term framework that the waste and recycling industry now needs more than ever.”

HOMEGROWN ACTION CAN BE DONE

REFOOD: BREXIT CAN BE SPRINGBOARD FOR FOOD WASTE ACTION

Philip Simpson, Commercial Director at food recycler ReFood, has outlined what this decision means for the UK’s food waste industry: “This decision represents a momentous opportunity for the UK government to affirm its commitment to tackling food waste.

Philip Simpson
“Perhaps the most exciting aspect of Brexit is that the British government now has the autonomy to set its own waste recycling targets. Previously, all UK legislation was voluntary, with Wales, Northern Ireland and Scotland choosing to introduce laws that made the separation and recycling of food waste mandatory. England, however, left it to individual local authorities to implement their own initiatives. This saw widespread disparity in commitment to food waste recycling, with many local authorities choosing not to get provide collection services for homeowners or businesses. 

“Unfortunately, this is a short-sighted approach and fails to capitalise on the significant economic and sustainable benefits of food waste recycling.

“In fact, the UK currently produces more than 14m tonnes of food waste every year, which, if it were effectively tackled, could see savings of £19bn for the country’s economy and prevent more than 20m tonnes of greenhouse gases from entering the atmosphere.

“So, let’s use Brexit as a springboard for introducing a total ban on food waste to landfill in England. Free from the shackles of EU red-tape, the Department for Environment, Food & Rural Affairs (Defra) has a critical role to play in setting such targets and can help Britain to implement waste management laws at a far greater speed – tailored with the country’s needs firmly in mind.

“While there is a long road ahead, the Brexit vote is a huge moment for the UK’s waste management sector. Looking ahead, it’s important that we continue to work towards not only achieving, but exceeding, the sustainability targets originally laid-out by the EU. The sector has a pivotal role to play in Britain’s post-Brexit landscape, and I hope to see us grab this opportunity with both hands.”

 

IEMA: CONCERN THAT ENVIRONMENT POLICY RISKS BEING WATERED DOWN

Throughout the lead-up to the referendum the Institute of Environment Management & Assessment (IEMA) ran a number of surveys asking its environment and sustainability professional members about the potential impacts of a Brexit.

Responding today, Martin Baxter, IEMA’s Chief Policy Advisor, said: “The referendum vote in favour of the UK leaving the EU raises significant questions for businesses, professionals and the wider public on environmental protection policy. 

“In the lead-up to the referendum, IEMA members were overwhelmingly of the view that being a member of the EU is good for business and good for the environment. There was a real concern that environment and climate policy risked being watered down if the vote was to leave. Environment and sustainability professionals will now look to the future with some sense of uncertainty.

“It is therefore essential that the government gives a commitment that, in negotiating the terms of the UK’s exit from the EU, an equivalent or enhanced level of environmental protection and climate policy will be implemented here in the UK. 

“In establishing the UK’s future direction, government must develop progressive policies for the UK to transition to a low carbon, resource efficient and sustainable economy that delivers real social value over the long-term.  It must seize the opportunity to accelerate the transformational change needed to meet long-term sustainability challenges and provide a much-needed boost to UK jobs and productivity.”  

 

Check back throughout the day for more industry reaction to the Brexit vote.