Monday 27th January 2014

(10 years, 3 months ago)

Lords Chamber
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Moved by
Lord De Mauley Portrait Lord De Mauley
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That the Bill be read a second time.

Lord De Mauley Portrait Thes Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley) (Con)
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My Lords, the Government have prioritised growing the economy and improving the environment. This Water Bill contributes to both of these priorities. There are two important parts to the Bill; first, to reform the water industry to ensure it is fit for the long term, and, secondly, to provide a solution to deal with the availability and affordability of flood insurance for households at high risk of flooding.

Recent events have reminded us all just how devastating flooding is for those affected. They also remind us how important it is to help manage the financial impacts of flooding. Perhaps at this point I should declare some interests. A tributary of the River Thames runs through my farm. I have an abstraction licence, a bore hole and a recently flooded house, as well as a share in a lake. These are clearly issues close to my heart.

The Water Bill has three aims: to build the resilience of our water supplies without damaging the environment; to encourage and contribute to economic growth; and to give customers greater choice. These are important issues for noble Lords across the House and I look forward to discussing them in the coming weeks. I am very grateful to noble Lords who have already taken the time to talk to me about these aims. Their views have given me real food for thought and I will continue to work with them to try to address their concerns and answer their questions. I look forward to a similar, strong level of engagement during the Bill’s passage through your Lordships’ House. I value enormously the debate and scrutiny that this Bill will receive in this House.

First, I shall set out why this Bill is before us today, the issues we are addressing and why it is important. Water is essential to life. We need clean and plentiful water resources to supply our homes and to support a growing population and economy. Water is also critical for a healthy and flourishing natural environment. That natural environment is the essential foundation for sustaining our economy, for prospering communities and for our individual well-being.

The 2011 water White Paper, Water for Life, set out the Government’s ambitions for a sustainable, resilient and customer-focused water sector. It outlined the plans for delivering substantial improvements in the health of our rivers through improving water quality and tackling unsustainable abstraction. Let us be frank: we must acknowledge that a growing population and the impacts of climate change pose risks to our water resources and the ecosystems they support. We need to take these challenges seriously to avoid causing irreparable damage to our environment.

The White Paper set out the challenges for the water sector through to 2050. This Bill is one part of our policy response, which is designed to drive long-term changes to ensure a secure and sustainable water system. Delivering this long-term change requires action by government, Ofwat and the Environment Agency, the water sector and users of water across the economy. We have put this challenge at the centre of the policy framework we have set for Ofwat through the strategic policy statement. We are reinforcing that through the new resilience duty in this Bill.

We are driving change in water companies through our guidance on water resource management planning. This Bill includes a new power for the Secretary of State to direct in advance the level of resilience a water company must plan for. We are using the Bill to extend competition to drive innovation, bringing new players with new ideas into the sector. Competition will keep a downward pressure on the costs customers pay. This is about safeguarding our water supplies for the long-term future. Ensuring a resilient supply system will require action to develop new water resources and use them in a different way, and to manage demand.

The Bill will change behaviour and change the focus of the water sector. It will hardwire future resilience into its regulatory framework. This is resilience in a broad sense. It encompasses water networks and water resources. It includes the environment from which companies draw their supplies. Resilience was a central theme of our White Paper and is a key theme of the Water Bill. We will return to it time and again in our consideration of the Bill.

We must ensure that our infrastructure can deal with more extreme weather. The floods and indeed droughts we have experienced in recent years illustrate the risks we face. In 2012, one in every five days saw flooding but on one in every four days we were in drought, putting our water supplies under great pressure. The water White Paper recognised these challenges and set out the Government’s strategy for a sustainable and resilient water sector. This Bill is part of our plan.

Let me give your Lordships an example of action we are taking outside the Bill. Resolving the issue of unsustainable abstraction from our water resources is a priority. That is why we are taking action now, including in this Bill, and developing detailed plans for reform. We have intensified our work to tackle the overabstraction currently damaging our rivers by varying and removing licences. We will be bringing previously exempt groups into the system in the near future.

The Environment Agency has reviewed thousands of abstraction licences and has changed about 80 of them, returning 75 billion litres of water per year to the environment in England. That is equivalent to the annual average water use of a city larger than Birmingham. Over the longer term, we are reforming the abstraction regime to make it more flexible and resilient to future challenges. We published our consultation on future options in December.

The Government are absolutely committed to early legislation to deliver abstraction reform, but we have to get it right. The Government are acting in a wide range of ways as part of a strategy to secure the future of our water sector. With this wider context in mind, I should like to talk about the things that the Bill before us seeks to achieve. It will make a vital contribution to addressing the challenges that I have highlighted.

I turn, first, to reform of the water industry. The Bill will remove the regulatory barriers that discourage or prevent new firms competing in the water industry. This is not competition for competition’s sake. It will provide real choice for non-household customers and bring new entrants into the market. Competition between companies will drive improved customer service as companies will need to work harder to attract and maintain customers. As we go forward, this competition will exert a downward pressure on bills for all customers.

In the two decades since privatisation, the sector has attracted more than £116 billion in low cost investment. Privatisation of the water industry has been successful in attracting investment that has improved infrastructure and produced cleaner water supplies. The importance of the stability of this investment—the stability of the market—cannot be overstated. We must maintain the attractiveness of the water sector. We are talking about evolutionary change. We have been careful not to risk stability by forcing through sudden and dramatic changes.

The Bill seeks to build on the strengths of the current regime, using enhanced competition to drive improvements for the benefit of all customers. For example, the Bill will make it easier for water companies to trade water with each other, offering alternative sources of water to companies, which could be crucial, for example, in the case of drought.

We are making it easier for new businesses to enter the water market to provide new sources of water or sewage treatment services. We are making developing new sources of water, and selling it to water companies, easier and more attractive for landowners by creating a regulated market. We are also making it easier for innovative businesses to find different ways to treat and dispose of wastewater and sewage. This could include recycling and reusing wastewater as a new water resource, or using sewage sludge for anaerobic digestion rather than landfill.

There are some exciting and innovative things happening in our water sector. We are already seeing the first signs of a competitive market. In September last year, First Milk became the first multisite customer to switch to Severn Trent Costain. The two companies are working together to improve First Milk’s water efficiency and lower its environmental impact. These opportunities are limited at the moment because they are open only to the largest water users. The Bill is designed to encourage precisely such innovation by developing the market further.

The Bill will allow all businesses, charities and public sector customers to switch their water and sewerage supplier. This is a significant reform that will bring significant gains for multisite customers—such as hospitals and supermarkets—which could save thousands of pounds in administration costs by dealing with only one water company across their estate.

Competition in Scotland is delivering real benefits to customers and to the environment. The public sector in Scotland is forecast to save £36 million over four years, thanks to better water efficiency and discounts.

Competition will benefit the environment more widely. Water companies will offer better water efficiency advice and other services to attract customers, such as smart metering and improved customer service. This is where we expect to see knock-on benefits for householders. Water companies offering improved customer service and better awareness of water efficiency measures will also be serving household customers. All customers will benefit as the sector becomes more innovative and efficient at what it does. Householders will not subsidise the costs of increased competition. Ofwat has confirmed it has the tools it needs to ensure this. The Government’s charging principles also make it clear that the protection of householders is fundamental.

I should like to talk about affordability for households. We are all conscious of the impact of water bills across the country. It is not possible for us to discuss a Water Bill without mentioning water bills. Let us be clear. Water is a price-controlled sector. Ofwat sets an overall cap on the total amount that each water company can recover from their customers. It is Ofwat’s responsibility to ensure both that charges are fair and that the companies are able to finance their operations.

Ofwat estimates that the current price review could reduce pressure on bills by between £120 million and £750 million a year from 2015. Water companies themselves are taking action. A number of companies have already committed to keeping bills below the price cap for 2014-15. Water companies already help households struggling to pay their bills and most are planning social tariffs for 2015 that are designed to reflect local circumstances. It is important to recognise that the independent regulator is doing its job.

Water companies have reacted well, and that is the way the sector should work. Too much interference from Government would undermine the principle and advantages of independent regulation. The Government’s approach on this issue is a responsible one. A stable, independent regulatory system is critical to keeping bills affordable. Small changes to the industry’s financing costs can have a significant impact. A 1% increase in the cost of capital can add £20 to customer bills.

The Government are tackling affordability over the longer term. Our market reforms will exert a sustained downward pressure on water bills. Through this Bill, we are also taking important steps to address the affordability of flood insurance for households in areas at high risk of flooding. I know that future arrangements for flood insurance are of great interest to noble Lords. The recent extreme weather has served to highlight the important role that the insurance industry plays in helping people to get back on their feet after flooding. The measures in this Bill bring forward powers to provide affordable insurance for those at high risk of flooding. Both Government and the insurance industry recognised that there was a need to bring forward new measures following the expiry of the statement of principles agreement between Government and the insurance industry, which came to an end in June 2013.

Our preferred approach, a reinsurance scheme which is known as Flood Re, will limit the amount that high-risk households have to pay on the flood insurance element of their premiums and excesses. The effective limit on the premium would vary according to council tax band, rising for more expensive properties, which means that benefits will be targeted towards lower-income households, providing more support for those who need it the most. To fund this, an industry-backed levy would be introduced. It is initially expected to be £10.50 per policy. The Association of British Insurers has assured us that this will be achieved without increasing bills for those people at low or no risk of flooding.

The Flood Re scheme is designed to be industry run and led. Our ambition is that it will be up and running in 2015 and the insurance industry together with Government is working hard to achieve this. Insurers have agreed to continue to meet their commitments under the 2008 statement of principles until the Bill has passed through Parliament and Flood Re has been set up.

Although Flood Re is our preferred approach, we are seeking reserve powers to provide affordable cover if Flood Re should prove unworkable or prices in an open market prove unacceptable. Having a fallback means that customers can have confidence that the issue is being addressed. I also take this opportunity to draw noble Lords’ attention to the fact that arrangements for flood insurance are designed to be transitional measures. Over time, there should be a gradual transition towards more risk-reflective prices, based on robust evidence of local risk, to increase the incentives for flood risk to be managed over the longer term.

The Water Bill will prepare our water sector to face the challenges of the future. There will be greater choice for customers, leading to improved efficiency, more innovation and better levels of service. The Water Bill will put in place measures to ensure a future with resilient water resources and an improved environment, as well as ensuring that householders at high risk of flooding can access affordable flood insurance into the future. With these principles in mind, I beg to move.

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Lord De Mauley Portrait Lord De Mauley
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My Lords, I thank all noble Lords for their contributions to this debate. A large number of questions and points have been raised, and I had better get cracking if I am to respond adequately to as many as I can. All the points raised will be taken away and considered carefully. I know that during the remaining stages of the Bill I will have plenty of opportunities to answer any points that I do not address today.

Several noble Lords raised concerns about introducing upstream reform ahead of abstraction reform. We will not take action that would increase unsustainable abstraction. We have looked carefully at how the regulatory regime will operate to reduce this. There are strong safeguards in the existing regime to ensure that the Environment Agency and Ofwat work together to prevent unsustainable abstraction in the short term.

Noble Lords asked what environmental safeguards will be in place regarding upstream reform. In order to sell water into the public supply, all non-water company abstractors will need to apply to the Environment Agency for a change of use in their abstraction licence. They will be required to go through the same process as if applying for a totally new licence. The Environment Agency can therefore refuse a change of use request if it would lead to unsustainable abstraction or deterioration in the catchment, or it could apply conditions to ensure that this did not happen. In addition to the existing process for issuing abstraction licences and regulating change of use, there are separate licensing requirements for new entrants to the water sector. The Bill was also amended in the other place to require Ofwat to consult the Environment Agency before issuing a water supply licence entitling the holder to input water into the public supply system.

A number of noble Lords raised the issue of the resilience duty and compared it against a potential sustainable development duty. Having listened carefully to points raised in the other place, we have made amendments to the new duty of resilience. I am pleased that we have been able to respond on these important points and that some noble Lords who have spoken and stakeholders such as Blueprint for Water have welcomed the changes. This new duty is an important contribution to the regulatory framework. It will ensure that regulation of this sector takes appropriate account of the impacts of environmental pressures, population growth and patterns of demand on our essential services. Supporting reform of the aspects of the current system that institutionalise short-term thinking will help to reduce pressures on the water environment, on which we all rely.

The noble Lord, Lord Oxburgh, referred to Singapore’s experience. I lived there for five years. He is right about the growing population and demand, and a long reliance on neighbouring Malaysia. I can remember the pipes that ran the length of the country squirting water tens of metres high. That has forced Singapore to be hugely innovative, and it is quite a lesson to us.

The noble Lord, Lord Redesdale, asked: why the resilience duty; why not sustainable development? Ofwat has had a statutory duty to contribute to the achievement of sustainable development since 2005. We have also issued statutory guidance, which states clearly that sustainable development is central to everything that Ofwat does and must be fully embedded throughout its regulatory decision-making. We have thought carefully about how to change Ofwat’s duties to support action to address the long-term challenges facing the sector and encourage better outcomes for customers and the environment. The best means of doing this is to create a new overarching duty specifically designed to prioritise an enhanced focus on long-term resilience.

The noble Lord, Lord Whitty, asked whether the resilience duty included social resilience. Ofwat already has a primary duty to protect consumers, and this includes particular responsibilities to vulnerable groups. By requiring Ofwat to secure the long-term resilience of water supplies and services and the sustainable management of water resources, the resilience duty protects both current and future consumers and will help to keep bills fair for the long term.

Several noble Lords asked about metering. The Government agree that metering provides a fair way to pay. We want companies to do more to promote metering to those who would benefit, although it is important to remember that some struggling customers would see their bills rise. Therefore, water companies are best placed to find the most appropriate local solution in discussion with their customers. The costs and benefits of metering vary from region to region, depending on the level of water stress. As the noble Lord, Lord Cameron, said, and to answer the noble Baroness, Lady Kennedy, metering has winners and losers. Some bills go up and some go down. The evidence suggests that there is not a very good cost-benefit case for universal metering outside areas of serious water stress—areas where, indeed, universal metering is already possible.

My noble friend Lord Cathcart asked about a national policy statement for water, and we are continuing to keep the need for that under review. Water companies have recently consulted on new water resources management plans covering the period 2015 to 2040.

A number of noble Lords asked about retail exits. We have considered this issue very carefully, and I need to be absolutely clear about this. It is not something that we have completely ruled out for the future, but at present the risks of retail exit outweigh the potential benefits. First, we feel strongly that water companies must continue to be responsible for all parts of the supply chain. They must have a connection with their customers. Secondly, there is a risk that retail exit would be forced on the sector. That is not a risk we are prepared to take: it should be for Ministers and Parliament to decide whether or when separation should take place. Thirdly, we must not forget household customers, who will not be able to switch. If we allowed retail exit, householders could be left stranded with a water company with little incentive in investing in customer service once it had washed its hands of its business customers. This would effectively create a two-tier water market, with household customers losing out.

My noble friend Lord Moynihan said that 76% of companies support retail exits. However, there is in fact a real mix of views in the sector on this issue. The 76% figure comes from an article in the publication Utility Week. It is based on telephone conversations with 36 individuals and reflects the personal views of those interviewed.

The noble Lord, Lord Cameron, and my noble friend Lady Parminter spoke about de-averaging. This is the question of whether customers’ charges could directly reflect the specific costs associated with supplying their premises. This is instead of what we have now, where customers simply pay a share of the total costs of running the network.

We should be careful to distinguish between the different kinds of costs that are reflected in water bills. It makes sense to share the costs of maintaining the network on which all customers rely—more than 90% of water charges—across all customers, regardless of their location. The use of average pricing for such charges is common practice in comparable sectors such as gas, electricity and telecoms where regionally averaged network prices have remained the norm following liberalisation of those industries. However, I think that many noble Lords would agree that there could be real benefits from increasing the cost reflectivity of charges for different sources of water. It would reflect the environmental costs of supply, which is especially important in water-stressed areas or for business users that use large volumes of water. Our charging principles make it clear that the Government’s detailed charging guidance to Ofwat will place limits on the scope of any de-averaging of prices.

The noble Lord, Lord Cameron, and my noble friends Lord Selborne and Lord Moynihan referred to the Scottish model. The vast majority of our approach to retail competition is very similar to Scotland, but water is a devolved matter and the systems are different. Scotland has no upstream competition; the Scottish market is much smaller than the potential retail market for England; Scotland has only one incumbent retailer and one wholesaler. There are 19 integrated incumbent water companies in England and Wales. Our approach to retail competition is being developed jointly with the industry, along with the Scottish and English regulators and others. This group is well placed to identify the conditions that will work best in England, building on the Scottish experience.

On the specific issue of a no-detriment clause, the Bill already provides a general duty, in Clause 23, to ensure that water companies do not exercise undue preference to themselves or their own retail businesses. It is essential that all those who enter the markets have confidence that incumbent companies act appropriately. They must not be able to abuse their dominant positions. We have carefully considered the issues relating to discrimination in relation to the market reforms in the Bill. My noble friend Lord Moynihan raised the procedure for changes to water company licences. The issue is complex and sensitive and I am happy to discuss it further with him if he would like.

The noble Lord, Lord Whitty, asked about environmental protections for upstream. New entrants will be subject to the same environmental controls as other abstracters and those that discharge water back into the environment. The environmental regulators will be involved in the licensing and appointment of new entrants that offer upstream services to assess their suitability to operate in the water supply and waste water markets. They will also be a statutory consultee in the preparation of market codes. In the context of market reform, the noble Lord, Lord Whitty, suggested that the Bill only provides for negotiated access to the market. We are satisfied that the Bill will allow regulated access to the retail market through market codes and rules. There is flexibility to enable negotiation to allow, for example, local issues to be addressed in the upstream market.

My noble friend Lady Neville-Rolfe asked a number of questions, the first of which was to do with large-scale investment. We aim to increase resilience, included in which is planning our strategic infrastructure for years to come. Our work on water resource management plans, looking at water resources out to 2040, is part of this long-term planning. The framework we are setting for Ofwat will ensure that economic regulation of the sector supports these objectives. I am happy to commit to placing a note in the Library on responsibilities and accountabilities in the area requested by the noble Lord, Lord Oxburgh.

My noble friends Lady Parminter and Lady Neville-Rolfe asked about how we prevent the interplay of the various agencies and players now involved becoming bureaucratic and wasteful. The market operator is a company that will be set up to facilitate switching and financial settlement between market participants. It is common for such bodies to be established to simplify switching processes. The equivalent in Scotland is the Central Market Agency. Such bodies are not set up by legislation, as a general rule: they do not have any statutory powers, duties or roles.

My noble friend Lady Neville-Rolfe also asked about duties combined with the regulatory formula for water companies and whether that encouraged too much or too little capital investment in the longer term. It is the role of the regulatory system to ensure that there is sufficient investment in our essential water and sewerage services which are undertaken as efficiently as possible. Ofwat undertakes a comprehensive efficiency challenge every five years through the price review process. The Government are responsible for setting the policy and legislative framework. They also issue guidance to Ofwat to help it balance all its duties.

We have discussed the new duty of resilience in the Bill to address the specific uses relating to the long-term pressures facing the water industry. The duty makes it clear that this is not only about capital solutions; it could also be delivered through more innovative approaches, such as demand management and catchment management. It is widely recognised that such solutions have the capacity to improve long-term resilience.

There was discussion, particularly from the opposition Benches, about affordability and social tariffs. The Government take seriously the real cost-of-living pressures on households and the need to keep bills as low as possible. The average household combined water and sewerage bill in 2013-14 in England and Wales is £388 a year or just over £1 a day. The average increase in bills has been in line with inflation since 2009. That is because the price review process keeps bills affordable.

Looking forward, we support Ofwat in its efforts to ensure that consumers get a fair deal. Ofwat has estimated that the current price review could reduce pressure on bills from 2015 by between £120 million and £750 million a year. All the water and sewerage companies have developed packages to help customers with affordability issues. These include customer assistance funds, support tariffs, debt advice and water efficiency measures. Social tariffs give an extra tool.

We published social tariff guidance in April 2013. By April 2015, the vast majority of companies expect to have a new social tariff in place. The idea of legislating for a national social tariff overlooks the regional nature of the water industry. Costs are different in different regions, as are the nature of the affordability problems faced by customers. A national scheme would be a very blunt instrument. Company social tariffs allow for flexible schemes responding to local issues and are developed in consultation with customers.

My noble friends Lady Parminter and Lord Borwick, as well as the noble Baroness, Lady Kennedy, asked about the bad debt situation. We are firmly of the view that regulation should not always be the first resort of government. The effectiveness of measures to manage debt differs significantly between water companies. We want to see this change. At present, customers in some regions are paying much more than others to cover the cost of unpaid bills. We are making sure that the industry’s worst performers are challenged to match the performance of the best. The industry is already taking more responsibility in this area. It is working on a voluntary approach to sharing data and information on customers in rented accommodation through the landlord database which will be launched in March this year.

Several noble Lords, particularly on the opposition Benches, raised corporate governance and water company structures. Customers rightly expect governance standards in a regulated industry to be high. Questions about these standards go to the heart of the sector’s public legitimacy, which is why Ofwat is taking action to ensure improved standards of governance across the sector, ensuring that it leads the way in corporate governance. It is right that the independent regulator tackles these issues. The water companies’ licence makes clear that they are expected to be transparent about their board leadership, financial structures and governance arrangements.

Recently, Ofwat has consulted on new voluntary principles relating to board leadership, transparency and governance. We particularly support the drive for increased independent and customer representation on boards. For the record, I probably should say that I do not agree with the characterisation of the noble Viscount, Lord Hanworth, on the position regarding Thames Water and the Thames tunnel but he would not necessarily expect me to. My noble friend Lady Humphreys raised the Welsh water model and I welcome her comments. I note that different water companies excel at different things but no one model has been shown to have been better than any other. That model is popular with customers but I venture to suggest that the not-for-profit structure has not resulted in particularly outstanding performance on some key issues—for example, customer service or management of customer debt.

Turning to the insurance part of the Bill, I fully appreciate concerns raised in relation to those properties which are at the very highest risk of flooding or which some people have termed as genuinely uninsurable. I should like to make clear that all those properties will be included in Flood Re at the start of the scheme. However, over time, Flood Re may develop an approach for properties that flood very frequently that will help to reduce the impact of their claims on the scheme's affordability. For example, Flood Re could suggest resilient repairs and, if these were not taken up, could set higher premiums or excesses. Only in the most extreme cases would exclusion from Flood Re be considered.

My noble friends Lady Parminter and Lord Sheikh, the noble Earl, Lord Lytton, and the noble Lords, Lord Grantchester and Lord Whitty, all raised the issue of climate change and resilience and information to households. I recognise the strength of opinion on this important issue and share many of the views expressed. We welcome the constructive contribution of the adaptation sub-committee and recognise the need for Flood Re to publish a plan for transition to the free market. The Bill provides for that. The ABI has just come forward with some thoughts on providing information to householders in Flood Re about their flood risk. Discussions on the details of this and on incentives to drive the uptake of household-level resilient measures are continuing and I will provide a further update on this issue to your Lordships in Committee.

I am running short of time. Noble Lords have raised important issues about the various categories of exclusion. I hope that noble Lords will forgive me if I confine my remarks to saying that Flood Re is designed to help those who are struggling most to afford rising insurance premiums. Flood Re targets financial support to those at the lower end of the income spectrum by providing proportionately more support to those in council tax bands A to C. In designing Flood Re, a balance has had to be struck between supporting those at the highest risk and managing the impact on those at low risk. Including additional policies within Flood Re could not be achieved without decreasing the level of support going to those most in need or increasing the levy paid by all households. Perhaps we can talk further either before or during Committee about the specific issues of 2009 properties, business properties and council tax band H, which noble Lords raised.

The noble Lord, Lord Cameron, and my noble friend Lady Bakewell of Hardington Mandeville raised the issue of what has been going on over the past few weeks on the Somerset Levels. Flooding has had a devastating effect there and in other parts of the country. The Somerset Levels are among the most seriously affected and people have had to endure flood water and disruption for several weeks. It is incredibly hard for them and I know that all noble Lords share my sympathy for them. Local authorities, residents and the emergency services have been working around the clock to make sure that people are safe and to help with the clean-up.

We have been talking with local agencies about what more can be done and we have asked the Environment Agency for a detailed analysis on the proposed major dredging and any other action that can be taken to manage flood risk on the levels. A local task force has been set up comprising local partners and communities to develop a clear, long-term vision for the future of the Somerset Levels and moors. My right honourable friend the Secretary of State has been in Somerset today talking to local people, and the noble Lord, Lord Grantchester, should not necessarily believe what he reads in the red tops.

We talked about the need to keep water available and affordable and to continue to improve the environment. We also mentioned the importance of the provisions on flood insurance for the future availability and affordability of cover. This underlines the importance of the issues that we have been discussing today and will discuss over the coming weeks. For this reason, I am grateful for the many contributions today and I look forward to the debates that will follow.

I hope that in my few closing remarks I have been able to deal with some of the issues raised by noble Lords during the debate and I apologise that I just do not have time to come to them all, but I know that one way or another over the next few weeks we will do so. Once again, I commit to having further discussions inside and outside this Chamber with noble Lords on their concerns. If any noble Lord wishes to raise a concern, my door is always open. In the mean time, I commend this Bill to the House.

Bill read a second time.