Solicitors cry foul over red tape in pollution controls

Environment: permit rule may delay work and add to costs

Many solicitors involved in corporate transactions are opening themselves up to major problems through ignorance of the new pollution control regime, it was claimed last week.Regulation 18 of the Pollution Prevention and Control Regulations 2000 states that the operator of an installation such as a chemical factory or landfill site and its buyer must apply for the transfer of the permit to operate the installation.The regulators - which may be either a local authority or the Environment Agency, depending on the installation - have two months to consider the application; previously, they only required notification within 21 days of a permit transfer having taken place.Paul Davies, a solicitor at City firm Macfarlanes, said: 'The new regime may delay transactions, increase cost and add uncertainty to their outcome.

The time lapse between applying and getting a permit means a quick transfer of assets is hindered and you can't have simultaneous exchange and completion.'The regulator can only reject the application if it considers that the proposed transferee will not operate the installation in accordance with the permit.The regulations - which are being phased in to different sectors until 2007 - will cover around 6,000 installations.Adrian Blomfield, a solicitor at City firm Ashurst Morris Crisp, said: 'It is unlikely that a permit application will ever be made until a buyer is found, which means the buyer would be redundant until the regulators deal with the application.'Andrew Towler