Lord Lansley (Con)

My Lords, this group consists of amendments relating to the circumstances under which the levy for the nature restoration fund should be made mandatory. The Minister may recall that, in Committee, this was not the subject of an amendment or substantive debate but of an exchange to try to better define the circumstances. At that time, the view was that this would be under exceptional circumstances. The question is: under what exceptional circumstances? I am very grateful to officials who gave me the benefit of time and advice yesterday. I have tabled Amendment 158A because it was not apparent to me that an amendment to an environmental delivery plan could be made simply to make the levy mandatory after the EDP has been made. I am assured that the powers are available in Clause 62 for the purpose of amending it, and that that can be done to make the levy mandatory in circumstances where the EDP has already been made. I hope the Minister is in the happy position of being able to assure me that Clause 62 can do that. Amendment 164A, in my name, is the substantive amendment in this group, in my view. I tried to establish in discussions with the department the circumstances in which the levy should be mandatory. To paraphrase, these came down to two things. The first was that there would be occasions when Natural England, in order to fulfil the objectives of its environmental delivery plan, would need full coverage of the levy to deliver the plan. If there was not full coverage—namely, if some developers chose to go down the route of not offering to pay the levy—then the EDP would not be able to be delivered, and those who had made such a commitment to pay the levy would not be able to fulfil their environmental obligations through that route. Secondly, in a large project, such as a nationally significant infrastructure project with, essentially, one developer, if Natural England were to make an environmental delivery plan and that developer or project controller chose not to go down the route of paying the levy, then all the work done on the EDP would be pointless and it would make no progress. I have tabled Amendment 164A to try to arrive at a point where we can specify much more clearly in the Bill the circumstances in which the levy can be made mandatory. This is not unimportant; it is a very important issue. I remind noble Lords of my registered interest, but I rely not on that but on the submissions and representations made publicly to the Government about this from the Home Builders Federation, among others. It is very concerned. From the point of view of the development community, the whole purpose is to give developers the choice between meeting their environmental obligations through the habitats and other regulations or going down the route of an EDP, with the opportunity to meet their obligations through the payment of the levy. If it is made mandatory, the choice simply does not exist anymore. For that reason, I want to define the circumstances in a clear way in the Bill. The latter circumstance, with a single developer, is not a substantive problem. If Natural England goes down the route of consulting on a potential EDP, it would be a matter of necessity that the developer concerned was part of that consultation. Natural England would arrive at a considered view as to whether the developer in that instance was going to pay the levy and go down that route. That would determine whether the levy can be made, and the Secretary of State could rest upon the results of that consultation. However, I believe that there is a case where, if there are multiple developers associated with a particular area—the EDP might cover a number of development sites and range across a wider area—one or more of those developers may commit to pay the levy. It may be that it is literally not possible to meet the objectives of the EDP without the others paying the levy. If they choose to go down an alternative route, they may not be able to meet their habitats regulations requirements, because they would be mitigated through the mechanism of the EDP. Alternatively, they may be trying to freeload off those who are paying the levy by saying that they will meet their habitats regulations requirements, but in practice they would be met through the EDP managed by Natural England and paid for by other developers. There is therefore a case for a mandatory levy, but I do not believe that the Bill says what those circumstances are. I am afraid that it is not at all satisfactory to leave the power unspecified, because it will increasingly be a temptation for Natural England to initiate an environmental delivery plan, do the work, set up the potential draft, consult on it and then reach the conclusion that only by making it mandatory will it secure the necessary coverage to fund an EDP. Far from it being an exception, we will find that Natural England is increasingly defaulting towards mandatory levy payments as the basis on which it can proceed with its ambitious environmental delivery plans. That is not where we were told this would be going. I will not press Amendments 164A or 158A, as I do not believe that what we require in the Bill is as yet specified in those amendments. I can well see that my noble friend, with his Amendment 164, could do us a great service, because if we were to take out these provisions it would press the Government to reinsert them with the necessary detail on how and when the mandatory levy should be imposed by way of substituting for what is currently in Clause 66(4) and (5). However, if my noble friend were to take the view that it would be better for the Minister to give an assurance that she will consider whether there is scope for specifying the conditions under which the levy is mandatory—and narrowing that down to the kind of examples that I have referred to in my introductory remarks—I would be happy with that. I do not want us to take out the mandatory levy entirely; I want us to be able to specify it in more detail. I beg to move Amendment 158A.