Question proposed: "That the Bill be now read a Second Time."

The Bill strengthens the law dealing with those industrial and other activities which have the potential to do the most damage to the environment. Its provisions impact for the good on all the key environmental media. It gives an enhanced focus for action by the EPA to secure energy efficiency and to regulate greenhouse gas emissions causing climate change. It contains important new provisions to improve the implementation and enforcement of environmental legislation and it contains a number of key decisions which the Government feels are essential to strengthen further Ireland's approach to waste management.

The Bill is an important and substantial addition to Ireland's environmental legislation and it signals my determination to ensure that the environment receives the protection it deserves. It completes the transposition into law of the EU Directive on Integrated Pollution Prevention and Control 1996. Integrated pollution control (IPC) licensing under the Environmental Protection Agency Act 1992, and waste licensing under the Waste Management Act 1996, have been administered by the EPA since 1994 and 1997 respectively. The licensing provisions of both Acts anticipated the provisions of the IPPC licensing directive and have delivered substantial compliance with it. IPC licensing has been implemented on a phased basis since 1994 and some 550 licences have been granted to date. These licences are in force across 13 economic sectors which have the potential, unless properly regulated, to cause significant pollution.

The licensing system is acknowledged to have secured substantial improvement in the environmental performance of the industrial and other activities concerned. There have been reduced air and water emissions, energy savings, moves to more environmentally friendly processes and lower noise emissions. Ireland was one of the first EU member states to implement integrated as opposed to single medium licensing. This was done in advance of the issue of the IPPC Directive and to this day we are recognised as among the leaders in this area.

Building on our success to date, the Bill brings national legislation fully into line with the directive by amending the licensing provisions of both Acts. In the context of the Environmental Protection Agency Act 1992, I draw the attention of Senators to a number of key new provisions arising from the directive. Transposing the directive requires a move from integrated pollution control to integrated pollution prevention and control. This change of words reflects the increasing emphasis we place on the prevention and minimisation of environmental problems at source rather than on controlling them after they have arisen.

The key changes to the operation of the licensing system are contained in chapter 2 of Part 2 of the Bill, section 12 of which replaces in full Part IV of the 1992 Act. The former sections 82 to 99 of the 1992 Act are being repealed and re-enacted with amendments in revised sections 82 to 99H. These 26 sections will constitute the core of the new IPPC code.

The new section 83(5) changes the technical basis of the licensing system from best available technology not entailing excessive costs – BATNEEC – to best available techniques – BAT. In practice, this is not likely to give rise to significant change as the definition of BAT in section 7 of the Bill includes reference to techniques available under economically and technically viable conditions, taking costs and advantages into account. Section 83(5) explicitly requires that energy be used efficiently in the carrying on of licensable activities. This makes sense both for industry in terms of working for the most cost efficient production practices and for the environment as we seek to reduce the adverse impacts of energy use.

Section 86 relates to conditions to be attached by the EPA to licences. Subsection (1)(a) makes it mandatory to include in licences conditions concerning key issues such as emission limit values, the minimisation of pollution, protection of soil and groundwater and provisions regarding the cessation of the activity in question. While many of these issues are already being by addressed by the EPA in IPC licences, the Bill now requires the inclusion of such conditions in licences. Senators will wish to note that the inclusion of greenhouse gases in the definition of "emission" in section 5 will, in conjunction with subsection (1)(b) of section 86, enable the EPA to regulate greenhouse gas emissions in licence conditions. This is an important additional measure to assist in meeting Ireland's obligations under the Kyoto Protocol.

Section 15 and Schedule 1 of the Bill extend the scope of licensing in light of the directive. While the 1992 Act sought to anticipate the details of the activities to be covered by the licensing regime, the directive as adopted contained some differences. The general approach I have taken in the Bill is to include the activities and thresholds specified in the directive or those already included in the 1992 Act, whichever yields the higher standard. I am determined that we retain what is best from the controls the Oireachtas put in place ten years ago as these have secured major benefits for the environment. I will build on to them to further the improvements arising from the directive. The directive brings more activities into the licensing regime, including poultry rearing, the treatment and processing of milk, the slaughtering of cattle, the production of food from animal or vegetable raw materials and the production of paper or board.

The Bill includes a number of transitional provisions. The new section 82 of the 1992 Act, to be inserted by section 12 of the Bill, proposes the following in relation to activities newly licensable by virtue of the directive. New activities will be licensable from the date that the section is commenced. Activities which started in the period from 30 October 1999 to the commencement of the section will be required to be licensed within six months of commencement or have a licence application submitted within that period. The 1999 date is the operative one for the purposes of the directive. Activities which were already in operation on 29 October 1999 will be licensable in the period up to 2007 as provided for in the directive. These are termed "established activities" in the Bill. Finally, licences in force under the 1992 Act will be examined by the EPA for compliance with the directive and the agency will take appropriate action to ensure full compliance by 2007. Such action can include the carrying out of a review of the licence, amendment of its conditions or a declaration in writing that no further action is required.

The second main focus of the Bill is to modernise the integrated licensing regime in light of a decade's experience. Amendments are proposed which facilitate better implementation and enforcement. Section 10 updates the level of penalties available to the courts and the maximum fine on summary conviction is increased to €3,000 from just under €1,300. The new section 83(5) introduces a requirement that an applicant for an IPPC licence be a "fit and proper person". This involves being free of convictions in relation to non-compliance with IPPC and waste codes and having the necessary skills and financial resources to carry on the activity in relation to which a licence is sought. I also draw the attention of the House to the new sections 94 and 95 which introduce detailed controls in relation to the transfer and surrender of licences.

In a further provision, the new section 97 allows the EPA to revoke or suspend IPPC licences where the "fit and proper person" requirements are no longer met and this occurs in such serious circumstances as to warrant the action. Section 99H enables any person to take High Court proceedings where an activity is being carried on in contravention of the Act. In such cases, the High Court can make such order as it considers appropriate. Taken together, these measures represent a considerable strengthening and modernising of the powers available to the EPA in relation to implementation and enforcement of integrated licensing.

In Part 3 of the Bill, we are making a number of important amendments to the Waste Management Acts. Despite the obligation under the 1996 Act to make waste management plans, it was not until the Waste Management (Amendment) Act 2001 was enacted that proposed regional waste management plans were finally adopted. The Act provided that the making of such plans would be an executive function and that the variation and replacement of plans would remain a reserved function subject to the consent of the relevant city or county manager over an interim period of four years. The focus of local authority efforts since 2001 should have been to ensure the rapid and efficient delivery of the improved services and infrastructure provided for in the plans. To be fair to most authorities, good progress is being made. However, some councils are already seeking to review and amend plans, essentially to unpick their provisions for an integrated waste management infrastructure.

I see no merit in revisiting issues that have already been fully debated and decided or in undermining existing plans. Accordingly, I propose to take matters to their logical conclusion and provide that the review, variation and replacement of a waste management plan shall also be an executive function for local authority management. Section 19 makes provision for this. There will continue to be full public consultation with regard to any such variation or replacement of plans.

Recently, the issue of local authority waste charges again became contentious. Seeking short-term political advantage, some Opposition parties purported to oppose household waste charges, citing various, but spurious, justifications. The position is simple. The polluter pays principle underpins European Union environmental policy and legislation and must be applied by member states. Specifically, EU waste legislation requires that households, as well as other waste producers, pay for the costs of disposing of their waste. Therefore, household waste charges are mandatory and are here to stay under Irish and EU law. It is wrong for some politicians to be disingenuous by pretending otherwise to the public. It only confuses the argument.

Our purpose is to create a proper waste management infrastructure, which will be to the benefit of all, including visitors and the tourism industry. To put this beyond doubt, I propose, in section 35, to insert a new section 75 into the 1996 Act, giving local authorities explicit powers to charge for waste services they provide. This section provides that the making and waiver of such charges shall be an executive function and is intended to facilitate the levying of charges on a per use basis.

In section 22, local authorities are being given explicit power to discontinue the collection of domestic waste in the event of non-payment of charges. This addresses the consequences of a 2001 Supreme Court judgment, which found that local authorities currently do not have this right. As a result, they could only seek recovery of unpaid household charges as a normal contract debt through the appropriate courts, a system that is costly and unwieldy. I now propose to allow local authorities to respond in the most direct manner to those who will not pay for services provided and who expect their neighbours to subsidise them for the collection of their waste.

Further amendments are proposed to strengthen the 1996 Act in light of experience and, in particular, to facilitate more effective enforcement and legal action to combat unauthorised waste activity. The main proposals include the following: in section 21 to introduce a presumption, for the purposes of prosecutions, that the carrying on of an unauthorised waste activity shall be deemed likely to cause environmental pollution, unless the contrary can be shown, thereby shifting the emphasis of proof in a correct manner; in section 29 to provide a new power to the EPA to revoke or suspend a waste licence, particularly where a licensee can no longer be regarded as a fit and proper person to hold that licence; in sections 31 and 32 to extend to the EPA current local authority powers, enabling steps to be taken for the purpose of preventing or remediating environmental pollution; and in section 33 to provide explicitly for court orders where a waste activity is carried on other than under and in accordance with any requisite authorisation.

A number of amendments are proposed which are of a technical nature. In particular, there is a provision in section 25 to empower the EPA to determine that where a waste activity is carried on in a facility associated with an IPPC licensable activity, a licence under either the 1992 or 1996 Acts, but not both, shall be required. A further provision in section 26 introduces amended requirements regarding the extent to which the EPA shall have regard to environmental impact statements.

The strengthened provisions in waste and IPPC law contained in the Bill underpin my determination to get tough, and stay tough, on polluting activity. Alongside the legislation, we will be putting in place an intensified enforcement drive, through the planned Office of Environmental Enforcement. The Bill will support a number of our objectives in that regard.

The final substantive part of the Bill, Part 4, gives effect to commitments in the Government's litter action plan to strengthen the law against litter. Section 38 requires that articles or advertisements exhibited in public places include the name and address of the person on whose behalf they are being exhibited. It also abolishes advertising by means of placing items on vehicles. These changes are being introduced more effectively to tackle illegal posters and flyers as sources of litter.

Section 39 allows local authorities to make general anti-litter by-laws for their areas. Under existing litter legislation, local authorities can only make by-laws to prohibit or regulate the distribution of advertising material to the public. This is an important new power and I hope that all local authorities will consider it when implementing their by-laws. I also hope they will see it as an opportunity to drive forward their ambitious plans to ensure the environment in their areas is presented in the best possible light.

Section 40 increases the fines, and introduces conviction on indictment, for litter offences. With regard to summary conviction, the current fine will be increased from €1,900 to a maximum of €3,000. The section also provides for the introduction of conviction on indictment for litter offences, with a maximum fine of €130,000 and a corresponding maximum fine of €10,000 per day for continuing offences.

The Bill brings our national legislation fully into line with one of the more important EU instruments for environmental policy – the IPPC directive. However, it does more than that. The opportunity is taken to make significant progress in a range of critical areas across the environmental agenda. The Bill modernises the law governing EPA licensing generally, provides an enhanced focus for the EPA to secure energy efficiency from licensable activities and empowers it to regulate greenhouse gas emissions causing climate change. The Bill also gives public authorities important new powers in relation to the implementation and enforcement of environmental legislation and makes important changes to the legislative codes relating to litter, particularly waste management.

I commend the Bill to the House.

Debate adjourned.