Reduced environmental permit costs will benefit small businesses
July 2, 2009
Environment Minister, Jim Fitzpatrick, has said that small and medium-sized businesses will benefit from the reduced regulatory charges announced by the Department for Environment and Rural Affairs (Defra).
Under the existing air pollution legislation, businesses regulated by local authorities, such as printing works and metal foundries, are required to have a permit to operate once their emissions exceed certain air quality criteria. However, for businesses that have temporarily reduced their operations and have thereby fallen below the operating threshold, Defra has reduced the cost of maintaining the necessary permits by 60%. The objective behind these reductions is to give businesses assistance while continuing to provide the necessary degree of environmental protection.
Generally, in order to avoid the cost or re-applying for a new permit, small businesses tend to retain their permits even if they reduce output or cease production for a brief period of time. Jim Fitzpatrick said that the Government recognised that maintaining these permits represented an additional costs for businesses in difficult economic times.
The permit cost reduction is subject to some conditions, design to ensure that regulation remains effective and the environment continues to be protected, namely:
- the lower charges will not apply unless the period of operating at a reduced capacity or "mothballing" lasts for a minimum of 12 months
- the lower cost permits are available for a maximum of 2 years
- full charges will be reinstated if permit conditions are breached during the period of reduced operation
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