Has there been a real Has there been a real improvement in the improvement in the

environmental behavior of environmental behavior of industry in Ireland since industry in Ireland since

the EPA was formed? Has the EPA was formed? Has taxpayers’ money been taxpayers’ money been

wasted?wasted?by Cian Brennan, by Cian Brennan,

Stephen Corrigan andStephen Corrigan andMelissa MorrisseyMelissa Morrissey

Before EPA CreationBefore EPA Creation Local Authorities were in charge Local Authorities were in charge Too many of themToo many of them Inconsistencies across regionsInconsistencies across regions Lacked fundingLacked funding Couldn’t keep up with the flood of policiesCouldn’t keep up with the flood of policies Serious conflict of interestSerious conflict of interest Major polluters themselvesMajor polluters themselves

Regulations before EPARegulations before EPA

Govt. Actions with “Pollution” in the Govt. Actions with “Pollution” in the titletitle

DecadeDecade ActsActs SIsSIs1920s-1940s1920s-1940s 00 001950s1950s 11 991960s1960s 11 17171970s1970s 22 12121980s1980s 22 23231990s1990s 55 5555

Industrialisation of Ireland 1970s and on.Industrialisation of Ireland 1970s and on. Oil spillagesOil spillages Increases in fish killsIncreases in fish kills Dublin smogDublin smog• Loss of Confidence in local authoritiesLoss of Confidence in local authorities• Political blame shiftingPolitical blame shifting Generally, environmental crises and Generally, environmental crises and

disaster.disaster.

Causes for EPA CreationCauses for EPA Creation

EPA ResponsibilitiesEPA Responsibilities Environmental licensingEnvironmental licensing Enforcement of Environmental lawEnforcement of Environmental law Environmental planning and Environmental planning and

guidanceguidance Monitoring and reporting on the Monitoring and reporting on the

environmental status (air, water, environmental status (air, water, waste, noise, land and soil)waste, noise, land and soil)

Environmental researchEnvironmental research

EPA Organisational EPA Organisational StructureStructure

Director General

Office of Environmental Enforcement

Office of Communicationand Corporate Service

Office of Licensing Committee

Advisory Committee

Office of Corporate Governance

EPA FundingEPA Funding Dept of the Environment.Dept of the Environment.

Local governmentLocal government

Levy chargesLevy charges

Monitoring charges Monitoring charges

Licensing fees. Licensing fees.

EPA EPA MainMain Functions Functions Monitor and analysis the environmentMonitor and analysis the environment National environmental protectionNational environmental protection Licence and control large scale activities.Licence and control large scale activities. Independent reporting of trends in waste Independent reporting of trends in waste

generation, management and generation, management and infrastructure. infrastructure.

Regulate Ireland's greenhouse gas Regulate Ireland's greenhouse gas emissionsemissions

Provide guidance to the public and Provide guidance to the public and industry on environmental concernsindustry on environmental concerns

Promoting waste preventionPromoting waste prevention

EPA Licensing EPA Licensing

Integration Pollution Prevention Integration Pollution Prevention Control (IPPC) licencesControl (IPPC) licences

Waste licensesWaste licenses Emission TradingEmission Trading Genetically Modified Organisms Genetically Modified Organisms

(GMOs) (GMOs) Volatile Organic Compounds Volatile Organic Compounds

(VOCs)(VOCs)

IPPC LicensingIPPC Licensing IPPC (Integrated Pollution Prevention IPPC (Integrated Pollution Prevention

Control) licensing July 2004Control) licensing July 2004 Replaced IPC (Integrated Pollution Replaced IPC (Integrated Pollution

Control) licenceControl) licence The main aims of this licence are to The main aims of this licence are to

prevent or reduce emissions to the air, prevent or reduce emissions to the air, water and land, also to reduce waste water and land, also to reduce waste and use energy efficientlyand use energy efficiently

Implementing the polluter pays principle Implementing the polluter pays principle The Protection of the Environment Act The Protection of the Environment Act

2003, provides significant 2003, provides significant amendmentsamendments

ImprovementsImprovements More strict and provides a more More strict and provides a more

strengthened framework for environmental strengthened framework for environmental protection.protection.

The applicant required to satisfy more The applicant required to satisfy more criteria than was the case with the IPC.criteria than was the case with the IPC.

The list of licensable activities is extended.The list of licensable activities is extended. The EPA has extended powers allowing it to The EPA has extended powers allowing it to

operate more efficiently.operate more efficiently. Once the industry is up and running, it is Once the industry is up and running, it is

subject to continual monitoring. The permit subject to continual monitoring. The permit conditions may also be updated.conditions may also be updated.

Licensable Chemical Licensable Chemical IndustriesIndustries organic and inorganic organic and inorganic

chemicalschemicals glues, bonding agents and glues, bonding agents and

adhesivesadhesives artificial fertilizersartificial fertilizers organic or organometallic organic or organometallic

productsproducts pharmaceuticalspharmaceuticals PesticidesPesticides paints, varnishes, dyes and paints, varnishes, dyes and

pigments where production pigments where production exceeds 1000L per weekexceeds 1000L per week

veterinary productsveterinary products manufacture of vitamins manufacture of vitamins

involving the use of heavy involving the use of heavy metalsmetals

olefins and their derivativesolefins and their derivatives

The EPA IPPC Licensing The EPA IPPC Licensing 20052005

InspectionsInspections 417417

ProsecutionsProsecutions 1010

AuditsAudits 113113

Monitor VisitsMonitor Visits 561561

Notes of non Notes of non ComplianceCompliance

426426

EPA ProblemsEPA Problems Past few years, the EPA issued a Past few years, the EPA issued a

significant amount of licenses for significant amount of licenses for industrial waste management. industrial waste management.

Created an increase in the amount of Created an increase in the amount of monitoring and enforcement activities monitoring and enforcement activities required.required.

Lack of sufficient resources at present to Lack of sufficient resources at present to meet the demands required above led to meet the demands required above led to a decline in the policing of these licenses. a decline in the policing of these licenses.

Comparing Monitoring and Inspections with Oireachtas Grants

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

Year

Num

ber,

per l

icen

se

0

0.002

0.004

0.006

0.008

0.01

0.012

0.014

0.016

0.018

0.02

Gra

nts,

as

% o

f GN

P

Inspections Monitoring Grants, as % of GNP

Comparing Monitoring and Inspections with Oireachtas Grants

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

Year

Num

ber,

per l

icen

se

0

0.002

0.004

0.006

0.008

0.01

0.012

0.014

0.016

0.018

0.02

Gra

nts,

as

% o

f GN

P

Inspections Monitoring Grants, as % of GNP

IndependenceIndependenceProblemProblem SolutionSolutionUnpopularity of Unpopularity of policies designated as policies designated as desirable or desirable or necessary?necessary?

Shifts Shifts responsibilityresponsibility

Lack of confidence or Lack of confidence or consistency?consistency?

Credible Credible commitmentcommitment

Increased Increased supranational supranational regulation and regulation and knowledge knowledge requirements?requirements?

ExpertiseExpertise

Independence?Independence? In the initial stages of the setting up of In the initial stages of the setting up of

the EPA it was made clear that politics the EPA it was made clear that politics and administration needed to be and administration needed to be separated i.e. that the agency should separated i.e. that the agency should be freed from the taint of politicsbe freed from the taint of politics

This would allow it to deal with This would allow it to deal with problems in an unbiased mannerproblems in an unbiased manner

Benefits of An Benefits of An Independent AgencyIndependent Agency

Allows shifting of responsibility:Allows shifting of responsibility: When difficult decisions need to be made, When difficult decisions need to be made,

politicians can delegate the problem to the politicians can delegate the problem to the independent agency.independent agency.

Allows for Credible CommitmentAllows for Credible Commitment An independent agency can commit to a certain An independent agency can commit to a certain

policy making course. This would not be true of policy making course. This would not be true of a governmental agency.a governmental agency.

ExpertiseExpertise The agency has high levels of expertise which The agency has high levels of expertise which

makes their decisions and policy making makes their decisions and policy making commitments highly credible.commitments highly credible.

Is the EPA truly Is the EPA truly independent of independent of Government?Government?

‘consumers & environmental lobbies’ ‘consumers & environmental lobbies’ VS.VS. ‘commercial and agricultural ‘commercial and agricultural

lobbies’lobbies’ Irelands environment is under increasing Irelands environment is under increasing

pressure economic developmentpressure economic development It could be argued that economic costs in It could be argued that economic costs in

this country are weighed more heavily this country are weighed more heavily than environmental costs.than environmental costs.

There is in effect a ‘conflict’ of interests There is in effect a ‘conflict’ of interests between economics and environment.between economics and environment.

Chart of European Chart of European AgenciesAgenciesIndependence Scores of

Environmental Agencies

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

USA

UK

Switzerland

Sweden

Spain

Portugal

Norway

Luxembourg

Ireland

Greece

France

Finland

Denmark

Belgium

Austria

Is taxpayers’ money Is taxpayers’ money being wasted?being wasted?

The EPA has a number of sources of income:Oireachtas GrantsLab Intercalibration, Advisory and other servicesIncome from regional laboratoriesLicensing Activities (IPPC + Waste facilities)Sundry Receipts

The Oireachtas grants and Licensing Fees are the two major income sources and in recent years have each made up ~50% of the EPA’s income.

Total income over the last number of years has been ~ €30 million on average annually.

It could therefore be argued that taxpayers’ money only constitutes 50% of the EPA budget.

Do we as taxpayers’ have control over how this money is spent?

As discussed previously, although it is an independent agency, the EPA is influenced by government.

A continuous chain from citizens to policies exists i.e. we elect politicians who create policies that we like.

Policy is therefore ultimately accountable to citizens!

The EPA is committed to providing “value for money”*

The wide range of activities of the EPA have been outlined earlier

This report is interested only in the dealings of the EPA with industry

This is best quantified by viewing IPPC activity of the EPA i.e.

Granting of licensesLicense enforcement

Is money being wasted?Is money being wasted?

*taken from list of ‘values’ published in 2004 Annual Report & Accounts

License EnforcementLicense Enforcement This includes:This includes:

InspectionsInspections AuditsAudits Monitoring VisitsMonitoring Visits Statutory notices issuedStatutory notices issued Notifications of non-compliance issuedNotifications of non-compliance issued Prosecutions instigatedProsecutions instigated

Prosecutions, Per License

0.000

0.010

0.020

0.030

0.040

0.050

0.060

0.070

0.080

1996 1997 1998 1999 2000 2001 2002

Year

Monitoring Visits and Inspections, Per License

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

Year

Monitoring Inspections

Audits and Notices of Non-Compliance, Per License

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1995 1996 1997 1998 1999 2000 2001 2002

Year

Audits Notices of Non-Compliance

Comparing Monitoring and Inspections with Oireachtas Grants

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

Year

Num

ber,

per l

icen

se

0

50

100

150

200

250

300

350

400

450

500

Gra

nts,

per

Lic

ense

Monitoring Inspections Grants, per License

Comparing Monitoring and Inspections with Complaints

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002

Year

Num

ber,

per l

icen

se

Complaints Monitoring visits Inspections

All of these graphs serve as an All of these graphs serve as an illustration that the EPA is having an illustration that the EPA is having an effect on industryeffect on industry

The question still remains though: The question still remains though: “is “is taxpayers’ money being taxpayers’ money being wasted?”wasted?”

In our opinion the EPA are giving In our opinion the EPA are giving good good ‘value for money’‘value for money’ with the with the limited resources at their disposallimited resources at their disposal

CONCLUSIONSCONCLUSIONS

Public ViewsPublic Views Mary HarneyMary Harney “ With such a wide range of functions and “ With such a wide range of functions and

powers, it is essential that the agency… possess a strong powers, it is essential that the agency… possess a strong and independent management.”and independent management.”

Fine Gael Councillor Tim LombardFine Gael Councillor Tim Lombard says “public says “public confidence in EPA and chemical industries in Cork confidence in EPA and chemical industries in Cork harbour is at an all time low.”harbour is at an all time low.”

Chemical Industrial Chemical Industrial Expert Peter NorthExpert Peter North “The EPA has “The EPA has neither the expertise nor the resources to fully monitor and neither the expertise nor the resources to fully monitor and enforce environmental regulations within the industry”enforce environmental regulations within the industry”

ReferencesReferences www.epa.iewww.epa.ie C.R. Shipan, Independence and the Irish C.R. Shipan, Independence and the Irish

Environmental Protection Agency:a Environmental Protection Agency:a comparative assessment, a working comparative assessment, a working paper, The Policy Institute, Trinity paper, The Policy Institute, Trinity College Dublin.College Dublin.

www.eeawww.eea.. www.chaseireland.orgwww.chaseireland.org www.irishexaminar.iewww.irishexaminar.ie