REPORT ON ACTIVITIES 2005 / 2006
KEY ACHIEVEMENTS
·
Sustained pressure on Government to address energy crisis
·
New rules for Climate Change Agreements and EU Emissions Trading tackled
·
Positive developments in environmental permitting and minerals procurement
·
Further initiatives under Ceramic Industry Health and Safety Pledge
·
Progress on approaches to silica and REACH
·
A successful industry Parliamentary reception
ENVIRONMENT
Climate Change Agreements
The operation of Climate
Change Agreements was complicated by their interaction with the EU Emissions
Trading Scheme. Annual CCA targets, in
addition to those for the established biennial milestone years, were introduced
for participants that had obtained exemption from Phase 1 of EU ETS.
Arrangements established for reporting performance
against new targets for the first interim milestone year ending in September proceeded satisfactorily despite
the delay in official confirmation of the acceptance of the opt-outs, the information
being duly submitted to Defra. The vast majority of companies met their
target. The BCC also co-ordinated a
group scheme through CICS for verification of overachievement prior to the banking or sale of
credits.
The third milestone year for
all companies was due to end in September 2006.
Some difficulty was experienced in forecasting sector performance due to
the late submission of data. Targets for
the milestone year for companies also participating in Phase 1 of EU ETS would
be subject to adjustment to avoid their being penalised or benefiting twice as
a result of their performance.
Nevertheless it became apparent that companies might face the risk of
tighter CCA targets due to favourable EU ETS results. The BCC undertook to prepare guidance on how the
adjustment would be carried out, and its likely repercussions.
Emissions Trading Scheme
The vast majority of ceramic
manufacturers eligible for EU ETS exercised their right to apply for exclusion
until the commencement of Phase 2 in 2008.
Considerable efforts were made to ensure that the opt-out conditions
were acceptable. The delay until early
2006 in the official confirmation by the European Commission of acceptance of
the opt-out applications led in turn to uncertainty on the part of companies as
to the conditions to which they would be subject during the current CCA interim
milestone year.
Assistance was provided for
companies that participated in Phase 1 of EU ETS in submitting verified data to
the Environment Agency
and in surrendering allowances by the due dates. Assessment of the performance of
participating companies was subsequently published by Defra,
leading to concerns about the consequent impact on adjusted CCA targets.
The BCC was closely involved
throughout the year in consultations with Defra and
DTI on the introduction of the second phase of EU ETS from January, 2008, which would affect all
eligible installations. Key issues to be
resolved included harmonisation within the EU of the interpretation of aspects
of the Directive determining thresholds, the establishment of a de minimis threshold for smaller companies, the preservation
of allowances when sites were rationalised, and the treatment of process
emissions in calculating allowances.
There was some indication that the allocation for the ceramic sector
under the National Allocation Plan would be at a similar level for Phase 2 as
for Phase 1. The NAP, including
allocations for individual installations, was due for submission to the EC by Defra in late summer.
IPPC
Although
the majority of applications by member companies for PPC permits had been dealt
with satisfactorily by local authorities, problems associated with a small but
significant number of installations persisted.
The BCC was involved in repeated discussions with Defra
and local authorities to resolve issues causing the delays, leading to the
eventual inclusion of the subject in the current Defra
review of PPC.
Following
publication of the second draft BREF document, the BCC participated in the
final meeting of regulators and interested parties in
Environmental Permitting
The BCC participated in the
stakeholder group established by Defra to develop
proposals for a new environmental permitting programme (EPP). It was subsequently able to welcome in
principle consultation on a scheme to replace existing PPC permits and waste
management licences with a single environmental permit. The system would streamline and simplify
current mechanisms through fewer, simpler rules, including standard rules
permits, and clearer guidance, allowing industry, regulators and the public to
focus on environmental outcomes rather than how they were achieved. However the support of the BCC was
conditional on existing permits being deemed valid without alteration, there being no
extension of operational requirements and no change in regulatory
responsibility without full industry agreement.
Waste Management
The BCC submitted a proposal
to the Government Better Regulation Unit for reform of the regulations
prescribing exemptions from waste management licensing. The existing regulations failed to accommodate alternative
materials increasingly used in the manufacture of ceramic products. The requirement for a waste management
licence acted as a deterrent to the efficient use of resources, without any
environmental benefit.
The BCC subsequently welcomed
the publication by Defra in the EPP consultation of
suggested criteria for determining activities exempt from licensing. Assurance was received that the industry’s
proposal for reform of the exemptions would be included in the full review to
be undertaken by Defra later in the year. Note was also taken of indications from the
EC that the revision of the Waste Framework Directive might also result in a
more flexible approach to determining when a recycled material could cease to
be regarded as waste.
Discussions were held with the Environment
Agency on practical problems arising from the introduction of the New Hazardous
Waste Regulations. Detailed guidance was
issued on listings for common industry wastes under the European Waste
Catalogue. Particular attention was paid
to the treatment of sludge and presscake from
effluent treatment plant in view of the lack of clarity in official
instructions as to how this waste should be classified.
Water
The BCC responded critically to Environment Agency
proposals for the time limiting of abstraction licences for dewatering
quarries. The proposals were geared
towards abstractions for use and were inappropriate for the less complex
situations presented by the industry’s operations. The concern remained that there should be a
presumption in favour of continuing existing operations, that the procedure for
obtaining licences for transfer rather than use should not involve complex
hydro-geological assessments, and that time limits should match the duration of
extraction permissions.
Minerals and Planning
The BCC welcomed the content
of draft MPS1 on minerals planning, and the annex dealing with planning for brick
clay. Meetings were held with ODPM and
the Planning Officers Society to discuss the fine detail of the proposals. Discussions with ODPM on the content of a
revised draft proved more problematical.
Uncertainty remained as to whether the guidance would adopt the clear
conclusions on landbanks in the independent research
undertaken for the Government Brick Clay : Issues
for Planning. The long delay in publication of the guidance by ODPM did
little to assist progress in discussions with mineral planning authorities on
minerals development plans.
The publication of minerals
planning factsheets on brick clay and fireclay by the
British Geological Survey, to which the BCC made input, was welcomed. They provided useful information on the
industry to complement planning guidance and to assist those involved in the
planning process.
The complex nature of the new planning process, and
the emphasis on community involvement, gave rise to doubts as to whether it
would result in the clarity and speed of delivery it had promised. Nevertheless the BCC continued to respond to
proposals for development plans that would affect members’ operations. Evidence was given to the Examination in Public on
the North East Regional Spatial
Strategy, focusing on the need for acceptable policies on brick clay and fireclay to provide the
security of supply the industry required.
Work was undertaken with the
South East England Regional Assembly on the development of a proforma for monitoring brick clay reserves for the purposes
of regional planning. The objective was
to enable companies to provide the information in a form that could not be
misinterpreted.
An effective European industry
lobby, in which the BCC played a significant role, succeeded in ensuring that
amendments to the proposed Mining Waste Directive that would have jeopardised
the industry’s interests were not carried in the European Parliament. The subsequent agreement between the
Commission and Parliament resulted in a Directive acceptable to the industry.
Discussions continued with DTI and ODPM on the manner of implementation of the
Directive in the
ENERGY
The year was characterised by
intensive lobbying of Government and the EC on the impact of high energy prices
and imperfections in the energy market.
The BCC led a delegation on behalf of the Energy Intensive Users to
expose the impact of high
prices and the actions necessary to remedy the situation. The outcome of the meeting was the apparent
acceptance by the Minister
that the dysfunctional European energy market was resulting in
In November representations
were made, through the EIUG, to the Prime Minister on the need for immediate
action to increase reserve capacity and provide secure access to additional gas
supplies via the interconnecter. The difficulties arose from the interaction between the
A special meeting of the EIUG
in January established the actions necessary to restore functionality to the
The BCC responded to the DTI Energy review,
concentrating on the importance of reliable energy supplies and the early
adoption of the measures identified as
necessary to address market difficulties.
The response also pointed to the improvements required to EU ETS to
reduce carbon emissions through greater transparency and simplification, and to
the need for parallel mechanisms for the transport and domestic sectors to
reduce the burden on industry.
In May the new Secretary of
State for Trade and Industry announced the creation of a Business Energy Forum - a high level group
co-chaired by the Energy Minister and the CBI Director-General Designate, and a
Business Climate Change and Energy Group - a main policy forum with Government
on energy and climate change issues. The
BCC Chief Executive would be a nominated member of both groups.
Proposals for an industry
energy contract were purued in co-operation with Utilyx during the year.
The arrangement was modified in the light of reaction from members,
focusing on a wholesale linked contract based initially on a shorter term fixed
allocation, with flexibility in exposure level in the first year.
HUMAN RESOURCES
Industrial Relations
The review of the Building
Brick & Allied Industries wages and conditions was concluded after a second
ballot. The two period deal comprised a
4% increase in basic rates for a 13 month period beginning March 2005, a 4%
increase in basic rates for a further 12 month period beginning April 2006, an
additional day of paternity leave and the establishment of a working party to
consider the feasibility of engaging in a consolidation exercise in advance of
the next review.
The rewriting of the Wages
Structure for the Ceramic Joint Council was completed. The most significant change was the
introduction of current year accrual of holidays with pay.
The two year agreement made by
the Council was due for review in August 2006.
Three meetings of the Council resulted in impasse leading to informal
discussions aimed at resolving the difficulties encountered.
Preparations were made for the
review of the Refractories Wages Board Agreement
reached in 2004.
Member companies were alerted
to the repercussions of changes in case law on long term sick leave
establishing that the right to statutory paid holiday did not continue to
accrue during such leave. Attention was
also drawn to the legislation to be applied from October 2006 prohibiting
discrimination against employees on the grounds of age. Many aspects of working life, including the
selection for redundancy by reference to length of service, and other service
related benefits, would be affected. A
seminar for members on the subject was held in December.
Health and Safety
Phase II of the Ceramic
Industry Health and Safety Pledge was launched in the autumn, following
consultations with member companies.
During the year the commitment of the vast majority to the revised
Pledge was secured. Companies were
encouraged to adopt the Pledge logo designed to promote it throughout the
industry as a gateway for improvement in health and safety performance.
Statistics on accidents,
injury and time lost in the first four years of the Pledge had shown slow
progress, and
improvement was sought by both the industry and HSE. First analysis of the statistics collected
during the year indicated some movement towards meeting that aspiration.
Preliminary results from HSE
research into the benefits for the brick industry of participation in the
Pledge suggested a positive impact on health and safety performance. Nevertheless pressure from the HSE for
further improvement persisted.
Consultants were commissioned by HSE to undertake research into sector
based health and safety initiatives, and consultation was issued on further
ways to increase the involvement of employees in health and safety risk
management.
The keynote address to the
Pledge Conference in October was given by Dr. Elizabeth Gibby,
Director of Injuries Reduction Programme at HSE. Presentations were also given by Dr. Janet Asherson, Head of Health and Safety at the CBI, and Hugh
Robertson, Head of Health and Safety Policy at the TUC. The occasion provided the stage for the
presentation of the industry Health and Safety Awards to successful companies and
employees.
The importance of improving
the performance of contractors to the industry was reflected in the emphasis
placed on development of the Contractors’ Charter and Passport Scheme. The Working Party overseeing the scheme
continued to promote its use through its refinement and guidance for member
companies.
A working group was
established to consider the viability of introducing National Vocational
Qualifications for managers with responsibility for onsite quarries. The preference for a dedicated industry
training package rather than the adoption of NVQs,
which might not fit the particular application, was established.
A basic toolkit to assist
companies in resolving problems related to slips and trips in the workplace was
made available. The prevention of
accidents connected with transport was also identified as a priority, a working
party being established to produce guidance.
Members were kept informed of and
involved in developments affecting workplace exposure levels for crystalline
silica. The BCC responded in critical
detail to the HSE proposal for a level of 0.1mg/m3, the scientific
justification for which was considered to be flawed. Nevertheless guidance for companies was
prepared in anticipation of the introduction of the level later in the year. In
Recommendations were produced
on labelling of construction products to alert customers to any health and
safety risk associated with exposure to silica.
The BCC was fully involved on
concerted representations at European level to ensure that REACH - the EU
Regulatory Framework for Chemicals - did not impose unreasonable burdens on the
industry’s operations. A seminar in
March addressed the possible repercussions of the forthcoming legislation. Plans were laid for the development of a
collective approach at industry sector level.
COMPETITIVENESS AND EXTERNAL
AFFAIRS
Commercial
Meetings of the European
Parliament Ceramics Forum in July 2005 and April 2006, attended by BCC, focused
on trade issues
affecting the industry, notably imports of tableware from
BCC activity to address
developments regarding restrictions on lead and cadmium in tableware,
particularly in the
The DTI was also alerted to
the need for a measured approach to implementation of the Restriction of
Hazardous Substances Regulations to avoid an unreasonable impact on industry
sales.
The BCC responded critically
to Government proposals for the introduction of a Planning Gain Supplement on
all development. The application of such
a levy to industrial development, including minerals permissions with wasting
assets, was considered particularly inappropriate.
Lobbying and Representation
A parliamentary reception held
in October enabled senior figures from member companies to apprise MPs of the
key issues that the industry faced.
Documentation prepared for the meeting highlighted arguments in favour
of a more measured approach to regulation, reform of the energy market,
emissions controls which did not jeopardise competitiveness, proportionality in
pollution control, a risk based framework for process and product safety,
safeguards to ensure free and fair international trade and continuing close
liaison between the industry and Government.
Regular meetings were also held with North Staffordshire MPs and West
Midlands MEPs.
The BCC continued to work
closely with sector associations and all other bodies serving the industry’s
interests.