Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The Government Office for the South East (GOSE) has consulted on the Partial Review of the Regional Spatial Strategy for the South East - Review of Policy M3 - Primary land-won aggregates and sub-regional apportionment. Government appointed inspectors will conduct an Examination in Public (EiP) into the proposed policy in October with the Government issuing its proposed alteration to the South East Plan next spring. This report addresses the Council's response to the consultation and sets out the case the Council will take at the forthcoming EiP.

1.2. This paper seeks to:

(i) provide a background to the current consultation on the proposed changes to Policy M3 of the South East Plan which sets out Hampshire's apportionment for sand and gravel;

(ii) set out the framework for funding the project;

(iii) highlight how the project enables the County Council to perform its statutory function;

(iv) look at the key issues surrounding the methodology for calculating Hampshire's apportionment; and

(v) establish the requirement for continued support for determining a sustainable apportionment for Hampshire.

2. Contextual information

2.1. Extraction of sand and gravel is essential to maintain a sustainable supply of aggregates for the Hampshire economy by providing construction material for buildings and infrastructure. However, this requirement should be tempered by the need to preserve and protect the special nature of Hampshire's environment and minimise the impacts of extraction on the community.

2.2. Historically, Hampshire has provided sharp sand and gravel in the area to the south and west of the New Forest and in the north-east of the county near the Berkshire border. Regionally, important soft sand deposits are worked in the east of the county near Bordon. Whilst the south Hampshire market has previously been supplied by local land-won extraction there is now increasing reliance on marine dredged sand and gravel, predominantly provided by wharf capacity in South Hampshire.

3. Finance

3.1. Work on the Minerals and Waste Development Framework is funded through a joint partnership contribution agreement with Southampton City Council, Portsmouth City Council and the New Forest National Park Authority.

4. Performance

4.1. A statutory requirement is placed on the County Council to produce a Minerals and Waste Development Framework. This action supports Hampshire County Council in meeting its statutory function and enables minerals and waste development to help provide for a prosperous Hampshire without risking the environment.

5. Other key issues

5.1. The amount of aggregate required is published by the Government in the National Guidelines for Aggregates. The Guidelines set out regional figures for land-won sand and gravel extraction, recycled aggregate production and marine dredged material.

5.2. The methodology for the Guidelines is not transparent and is difficult to comprehend. Accordingly it is not entirely clear what the basis is for the current regional guideline of 13.25 million tonnes per annum (mtpa) for sand and gravel. The Guidelines are under review and an 8% reduction to 12.18 mtpa is proposed by Government.

5.3. The Guidelines are used as a basis for sub-regional apportionments in the Regional Spatial Strategy (the South East Plan). The current apportionment for Hampshire (including the Cities and New Forest National Park) is included in Policy M3.

5.4. The South East England Regional Assembly (SEERA) conducted a consultation on the methodology for the apportionment and revisions to Policy M3 during the summer of 2008. The historic method for calculating the apportionment relied heavily on past production. During the EiP of the draft South East Plan, the Examination Panel reported that SEERA should review the historical methodology with a view to deriving a "robust, rounded and forward-looking" alternative methodology.

5.5. Six new methodologies were proposed, of which three were discounted by SEERA which then authorised consultation on the remaining three. These three options were known as C: Demand, D: Environmental and E: Demand and Resource and produced three different apportionments for Hampshire - C 2.32 mtpa, D 1.82 mtpa and E 2.12 mtpa, based on the proposed revised Guidelines for the South East of 12.18 mtpa.

5.6. Initially no consensus could be found on the appropriate basis for a sub-regional apportionment. Moreover, there were concerns, particularly expressed by the Hampshire Members on SEERA's Regional Planning Committee, about accepting the proposed Guidelines of 12.18 mtpa as the regional apportionment. On advice from the consultancy Green Balance and conclusions of discussions between Mineral Planning Authorities a revised version of an amalgam of D and E methodologies with transitional adjustments was agreed, based on a regional apportionment of 9.01 mtpa. The latter reflects the recent trends in sand and gravel sales in the South East. This provides an apportionment for Hampshire of 1.62 mtpa. This forms the basis of the revised Policy M3 that has been submitted to the Government by SEERA (see Table 1 in Appendix C where the annual sales for Hampshire are shown for information).

5.7. This consultation closes on 26 June 2009. In agreement with the Government Office, this public report has already been sent in response to the consultation, on the understanding it is draft until agreed and/or amended by Members at this Cabinet meeting. The process then follows the standard consultation procedures - the representations are to be heard at an Examination Panel which takes into account the representations and may propose changes to the revised Policy. There follows a final consultation on these proposed changes after which the final policy wording is decided by the Secretary of State. The Government Office suggests that this is currently timetabled for February 2010.

5.8. The outcome of the review of Policy M3 and the sub-regional apportionment is important for Hampshire, as recent case law suggests that it will in effect `direct' the amount of sand and gravel Hampshire will have to provide for in the Hampshire Minerals and Waste Development Framework. It is probable that Hampshire may eventually be given an apportionment more than 1.62 mtpa and the table below indicates possible outcomes depending on the final level of regional apportionment:

Possible Regional Apportionment (mtpa)	9.01	10	11	12.18
Hampshire apportionment (mtpa)	1.62	1.80	1.98	2.20

5.9. It is important to note that this figure now relates to a 16 year plan period to 2026, rather than the 10 year plan period to 2020 as was the case last year, and the Council's planning documents will need to be extended to reflect this.

5.10. It is essential that the case for a regional apportionment of 9.01 mtpa and a sub-regional apportionment for Hampshire of 1.62 mtpa is substantiated with evidence. Accordingly, an outline of the case is set out in the attached response to the consultation in Appendix C.

6. Future direction

6.1. The County Council can use this consultation to continue supporting efforts to ensure that the most sustainable apportionment for Hampshire is identified following the review of Policy M3.

7. Recommendations

7.1. That the Cabinet supports the revised Policy M3 of the South East Plan, including the regional apportionment of sand and gravel extraction of 9.01 million tonnes per annum and the consequential apportionment for Hampshire of 1.62 million tonnes per annum and presents the case at the forthcoming Examination in Public accordingly.

7.2. That the Cabinet makes the representation in 7.1. above on behalf of Southampton and Portsmouth City Councils and the New Forest National Park Authority.

7.3. That the Cabinet authorises the consultation response attached in Appendix C.

2061Rpt/719/AF

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Other Significant Links

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. No impact.

2. Impact on Crime and Disorder:

2.1. No impact.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

· The extraction of land-won sand and gravel has impacts on the county's carbon footprint in relation to the physical extraction and transport of the aggregates.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

· Carbon issues are covered in the Sustainability Appraisal work required in order to produce a sound planning document.

Appendix C

Hampshire County Council, Portsmouth City Council, Southampton City Council and New Forest National Park Authority ("the Partners") Response to the Government Office for the South East (GOSE) consultation on the Partial Review of the Regional Spatial Strategy for the South East - Review of Policy M3 - Primary Land-won aggregates and sub-regional apportionment.

The Partners support the proposed revisions to policy M3 of the South East Plan as the most sustainable way of providing for the supply of aggregates to the Region generally and Hampshire specifically .

1. The case for a South East Regional Apportionment for Land-won Sand and Gravel of 9.01 million tonnes per annum:

The current Guidelines for the South East region of 13.25 mtpa were adopted in 2003. The County Council notes that the draft revisions of the Guidelines only reduces them by 8% to 12.18 mtpa. In light of recent trends in aggregates sales it is difficult to understand the logic for such a figure; table 1 indicates that sales seem to be stabilising around 8.5 mtpa.

Hampshire supports the growth in recycled aggregates and will ensure that infrastructure provision and procurement demand are optimised.

Hampshire County Council agrees with the SEERA response to the National Guidelines consultation of summer 2008, whereby a greater reduction (of 32%) to 9.01 mtpa was suggested.

Regional sales have been in decline since 1999 and analysis of the annual figures from 1998 (13.37mtpa) to 2007 (8.5mtpa) suggests an actual regional decline of 36%, see table 1.

Moreover, analysis of the five years to 2007 which are generally accepted as a period of sustained economic growth with an increased level of construction, actually shows a decline in land-won production with an average tonnage of 9.61 mtpa.

Hampshire County Council believes that this trend is likely to continue and if anything will be exacerbated by the current and short/mid term future economic climate.

The County Council takes a pragmatic view as clarified in the SEERA response and therefore supports the setting of the South East Regional Apportionment at 9.01 mtpa

2. The case for a local Apportionment (for Hampshire) for Land-won Sand and Gravel of 1.62 million tonnes per annum:

Hampshire County Council supports the methodology for calculating the local apportionment as proposed in revised Policy M3.

Hampshire has a significant number of environmental designations at all levels which tend to constrain minerals development. Whilst accepting that impacts of such development can be mitigated, in reality, industry has generally avoided sites with such complex issues.

The methodology derived from the SEERA consultation is acceptable to the County Council and therefore Hampshire County Council supports the proposal to fix the local apportionment at 1.62mtpa.

Table 1