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In its report of last year on the Communities and Local Government's Departmental Annual Report 2007 (HC 170, session 2007-08, ISBN 9780215037978) the Committee commented on the particular nature of the Department's work: on its unusual reliance for the achievement of the goals Government has set it on a plethora of other Departments, agencies, non-departmental bodies, local authorities and other stakeholders; on the long, devolved delivery chains by which those goals therefore have to be delivered; and on the skills of influence, brokering and negotiation which are required to achieve them. In this Report the Committee assesses the progress made since last. The most recent Cabinet Office Capability Review concludes that there has been a positive "direction of travel" for CLG in that period, but the Committee concludes that there is still some way to go before CLG can be said to be performing at the highest achievable level of effectiveness. The Department's overall performance against its Public Service Agreement targets is likewise moving in the right direction but still short of full effectiveness. Achievement of efficiency targets is applauded. Finally, the report considers examples of particular policies which highlight some of the Department's strengths and weaknesses, and follow up some issues in earlier inquiries. These issues include: eco-towns; the Decent Homes programme; Home Information Packs; Fire Service response times; Firebuy; the FiReControl programme. The report also considers the Department's response to the serious flooding of summer 2007, and to the reviews which followed; and the mismanagement of European Regional Development Fund monies.
In 2008/09, the first year of operation, the Renewable Transport Fuel Obligation (RTFO) met its objective of driving a market for biofuels in the UK. 2.7% of the UK's total road transport fuel supply was biofuel which was slightly over the Government's target of 2.5% and is more than twice the supply of biofuel in 2007/08/. No obligated suppliers pad to 'buy-out' of their obligations. The performance of suppliers in sourcing sustainable fuels was polarised. Whilst several companies met all three of the Government sourcing targets with fully verified data a number also performed poorly. Overall a significant improvement will be required to meet the challenges of the forthcoming EU Renewable Energy Directive. In 2008/09 there was also a 46% carbon saving against the Government target of 40%. The biofuels market has not as yet had a large impact on agriculture in the UK and although an effective driver of the market for biofuel, the RTFO did not, during 2008/09, drive increases in the biofuel production capacity in the UK.
This is the second year of operation of the Renewable Transport Fuel Obligation and this report outlines the progress that is being made in encouraging the use of sustainable biofuels in the UK. It provides statistical evidence on an evolving market and highlights good practice as well as those areas where more work is needed. There is potential for biofuels to play a useful role in reducing greenhouse gas emissions without causing substanial environmental damage. However this is unlikely to be achieved without careful planning and regulation.