BCC QUARTERLY REPORT
MAY, 2008
ENVIRONMENT
Energy
Gas
supply is relatively stable following the availability of sufficient supplies
over the winter period. However European
market mechanisms that link the price of gas and oil have resulted in no price
reduction from winter levels. Current
contract prices of around 60p per therm are expected
to increase to 80p over the winter period.
The
link between oil and gas prices, which is totally contrived and arguably
anti-competitive, has been recognised by the Government’s Business Energy Forum
and the Energy Minister as a major issue.
Research is being undertaken by the Energy Intensive Users’ Group to
confirm a previous Monopolies and Mergers Commission ruling that such
contractual terms are anti-competitive.
The matter will then be pursued through the forthcoming Parliamentary
Select Committee, BERR and at European level.
Prospects
of support for market reform in
Electricity
supplies are broadly satisfactory, despite the impact of the Large Combustion
Plant Directive. No significant change
is anticipated. Prices are expected to
realign with European levels after a period when they have been considerably
higher.
Climate Change Agreements
The Defra review of climate change agreements has proposed
adjustments to targets for 2010 comprising reductions by 4% in addition to the
consolidation of achievements made in milestone 3.0 in 2006. The BCC has indicated its opposition to the
proposals, and its intention to produce alternatives for consideration in the
bi-lateral meetings to be held in July.
A members’ briefing, including consideration of the proposals, will take
place shortly.
Separate
discussions with Defra are continuing on the
extension of CCA until 2017, including milestones for 2012 and 2014.
EU ETS
The
Government’s consultation on the development of Phase III of EU ETS has been
published. The document includes both
the European Commission’s proposals and the UK Government view where there is
divergence.
Key
issues for the industry remain the allocation of free allowances versus
auctioning, benchmarking and eligibility thresholds. The BCC response to the consultation will be
determined at a members’ meeting in June.
IPPC
The
European Commission has published proposals for an Industrial Emissions
Directive which in effect recast and develop the
existing IPPC Directive. The BCC will
participate in the IPPC Sounding Board established by Defra
to consider the proposals. Details will
be sent to member companies shortly.
All
IPPC Part II sites have been required by their local authority to submit data
for the European Pollutant Release Transfer Register. The report format produced by BCC for
eligible sites has been accepted by Defra and the
local authorities alike.
Environmental Permitting
The
Environmental Permitting Programme took effect from 6th April, replacing PPC
permits and waste management licences with new environmental permits. Defra has indicated
that the second phase of the programme will integrate additional regulated
activities including possibly discharge consents, ground water authorisations,
abstraction, waste carrier licensing and forthcoming EU requirements such
as the Mining Waste Directive.
Environmental Liability
Directive
Defra is reconsulting on draft
regulations to implement the Environmental Liability Directive. It introduces strict liability for damage by
permitted activities to certain sites, now extended to include all SSSIs. Defences are
provided where activities are undertaken within the conditions of a
permit. There is some lack of clarity
about the position regarding the Mining Waste Directive when implemented, which
is being addressed.
Waste Framework Directive
Discussion is continuing
within the European Parliament on the proposed new Waste Framework Directive,
which will amend the existing Directive and modify the range of materials
regarded as waste. It is hoped that the
outcome will make clear when uncontaminated excavated materials, and certain
by-products, are not be regarded as waste.
Environmental Management
Systems
Following the successful pilot
project, the BCC can now offer member companies a comprehensive and flexible
support package to enable them to establish an environmental management system
accredited to BS 8555, or ISO 14001 or EMAS.
The package, delivered by White Young Green Environmental, has been
specifically developed for the ceramic industry and comprises formal training
supplemented by on-site consultancy tailored to meet a company’s individual
requirements.
Mining Waste Directive
The BCC, like other minerals
extractive industries, has responded critically to Government proposals for
implementation of the Mining Waste Directive.
Unsatisfactory aspects include uncertainty about the identity of the
competent authority, and transitional provisions for the application of the
Directive to current permissions, which appear to extend beyond the Directive’s
strict requirements.
Technical documents to guide
the competent authority, which will prescribe amongst other things key
definitions, have not yet been delivered by the European Commission. Under these circumstances the BCC has argued
that finalisation of implementation plans is unreasonable and premature.
As anticipated, the
implementation deadline of 1st May prescribed in the Directive has not been
met.
Soil
The proposed Soil Directive,
which had potentially unreasonable consequences for extraction and
construction, failed to gain support in the European Council and has been
withdrawn. Nevertheless it is expected
that a replacement proposal will emerge in due course.
Defra has produced its own draft
soil strategy for
EMPLOYMENT
Industrial Relations
Ceramic Joint Council
Negotiations are proceeding on
the review of the terms and conditions of employment in the pottery
industry. Two meetings have taken place
and a third is scheduled for early June.
The review date is the first pay week including 1st August, 2008.
Building Brick and Allied
Industries
The second phase of the 2007
pay review has been concluded. The
increase agreed of 4% is the average of RPI for the months March, April and
May. This increase is due to be
implemented on 1st June, and will be reviewed on 1st August, 2009.
Ceramic Industry Health and
Safety Pledge
Pledge Board
In the light of the successful
track record on accident reduction in 2006, the targets established by the
Government and adopted by the industry in 2001 are now subject to review. Discussions are taking place with the BCC
Board with a view to identifying the most appropriate changes to the industry’s
target regime.
Conference 2008
The Conference, which will
take place on Thursday, 16th October at the Hilton Hotel Coventry, promises to
be as successful as in recent years. The
awards application forms have been circulated to member companies. The deadline for their completion and return
is 25th August. The guest speaker for
2008 is Pete Goss, the transatlantic yachtsman.
Work Programme 2008
Subject to the final decision
by the BCC Board, the focus of attention under the Pledge moving forward is
likely to be occupational health and behavioural safety.
Quarry Managers
Unfortunately logistical
problems have prevented the quarry managers training courses from being
introduced in May this year as had been intended. It is hoped that the issues will be resolved
quickly to enable details of courses to be announced in the near future.
Seminars
A seminar for members on
behavioural safety took place in April.
Two further seminars have been arranged.
The first, which will deal with corporate manslaughter, is scheduled for
the current month. A further seminar
will be held in June on the Disability Discrimination Act, focusing on the way
in which case law has evolved since the legislation was introduced.
Crystalline Silica
Social Partners Agreement
Deadlines for the completion
of the report forms have now passed. A
full report is expected from the Commission before the end of the summer.
In the light of the Social
Partners Agreement which makes reference to x-rays, a draft health surveillance
protocol is being prepared with specific regard to crystalline silica, under
the auspices of the BDA Manufacturing Steering Group. The HSE has convened a working party to
consider the same subject. The
likelihood appears to be that the use of x-rays will not form part of a general
manufacturing health surveillance protocol.
REACH
Working parties for the main
industry sectors continue to meet.
Inventories have been prepared for the heavy clay, refractories
and whitewares sectors.
The BCC has written twice to
principal suppliers in the whitewares and heavy clay
sectors to ascertain their intentions regarding pre-registration. Responses have been varied and far from
definitive. Both the whitewares
and heavy clay sectors’ working parties have established timetables for actions through to
mid-autumn, by which time pre-registration should be complete or nearing
completion In view of the responses
received from suppliers to date, member companies will be urged to contact
their suppliers direct regarding pre-registration.
The next REACH newsletter is
in preparation and will be available by the end of June.
COMMERCIAL AND PUBLIC AFFAIRS
Counterfeiting and Copying
Following the successful
pursuance of 12 cases of copying in China by lawyers advising the BCC , and the
issue of guidance to member companies, the feasibility of co-operation between
companies at industry level to further improve the effectiveness of actions
against infringements is being considered.
The developments represent significant progress in addressing a
longstanding issue for the domesticware sector.
Materials Supplies
The reliance of
Following representations made
at ministerial level through a local MP on the industry’s behalf, supplementary
information will be provided to demonstrate the disadvantage that will result
from Government proposals for the retrospective abolition of capital allowances
on industrial buildings. There is some
indication that adjustments to the proposals during the passage of the Finance
Bill may result.
Liaison with MPs and MEPs
A meeting with local MPs and
regional MEPs was held on 4th April.
The opportunity was taken to
brief those present on all issues of current importance to the industry. The meeting focussed particularly on the
promotion of ceramics as a creative industry within the North Staffs
Regeneration Programme and related initiatives.
Annual General Meeting
The Confederation’s Annual
General meeting will take place on Thursday, 19th June, 2008 at 11.30a.m. in the BPMF Club,
Federation House,