Floods and Water (Amendment etc.) (EU Exit) Regulations 2019
(Limited Text - Ministerial Extracts only)
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Lord Gardiner of Kimble
That the draft Regulations laid before the House on 5 December 2018 be approved.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, the instrument before your Lordships makes only technical changes to retained EU law to ensure that floods and water legislation will continue to function when the UK has left the EU. I emphasise that the instrument corrects technical deficiencies and creates no new policy. In addition, we have consulted with the devolved Administrations on the instrument, and they have given consent where appropriate.
Part 1 makes introductory provision about the citation, commencement, territorial extent and application of the instrument. Part 2 makes operability amendments to some primary legislation, such as the Water Act 1989, which applies to England and Wales only. The amendments replace the words “EU obligation” with “retained EU obligations” to reflect the change after the exit from the EU. They also address the use of the term “environmental objectives”, which is defined in the water framework directive. The amendments instead define that term by reference to our domestic legislation which implements the water framework directive rather than the EU directive itself.
Part 3 amends technical deficiencies in secondary legislation, and I will highlight the key types of amendments. Regarding the sludge regulations, Regulation 6 amends the 1989 regulations to include a reporting obligation for the Secretary of State and Welsh Ministers on the implementation of the regulations every three years.
Regulation 7 amends the urban waste water treatment regulations, which apply to England and Wales only. As well as changing references to “EU law”, so that they now refer to “retained EU law”, a requirement is included that relevant environmental reports are to be published by the Secretary of State and Welsh Ministers.
Regulation 8 deals with water fittings regulations, which extend and apply to England and Wales only.
The amendment in Regulation 9 to the drinking water undertakings regulations, which again extend to England and Wales, changes the word “implements” to “implemented”, to reflect that there will be no future requirements to transpose EU directives after exit day.
The Water Industry (Special Administration) Rules are amended by Regulation 12. The special administration regime is an insolvency regime specifically created for water and sewerage companies. It is a reserved matter, but the regime only applies to England and Wales, as Scotland and Northern Ireland have different water industry structures.
The silage, slurry and agricultural fuel oil regulations apply to England only. They are amended by Regulation 13 to allow products such as silos and slurry tanks that are of equivalent standards to the British standards to be installed, wherever they are manufactured.
On the question of the Incidental Flooding and Coastal Erosion (England) Order 2011, Regulation 14 amends the order, which applies to England only. As with the Water Act 1989, it changes the definition of “environmental objectives” so that it relates to our domestic legislation which implements the water framework directive rather than to the directive itself, which will not be part of our law.
Regulation 15 amends the Bathing Water Regulations, which extend to England and Wales. The amendments correct cross-references to the bathing water directive which would be deficient on exit. A requirement is also included for the Secretary of State and the Welsh Ministers to publish a report each year containing monitoring results and other information about bathing water season.
Similar amendments to deal with cross-references to EU legislation are made to the Nitrate Pollution Prevention Regulations by Regulation 16. These apply to England only. An obligation is also placed on the Secretary of State to publish reports on the implementation of these regulations.
Regarding the flood reinsurance regulations, which are dealt with in Regulation 17, this is a reserved policy area and this amendment covers all of the UK. A minor technical amendment is made to the reference on obligations on the scheme administrator arising from “directly applicable” EU legislation. This will instead read as the obligations arising from “retained direct” EU legislation.
Lord Gardiner of Kimble
My Lords, I thank all noble Lords for their contributions, which have shown that we take these matters extremely seriously.
My noble friend Lady McIntosh and the noble Baroness, Lady Jones of Whitchurch, raised reporting and governance requirements. My noble friend Lord Deben spoke of the role of Parliament and Select Committees in holding the Executive to account. I cannot for one minute believe that that will change, particularly if my noble friend is rightly in his place—and indeed all noble Lords, because clearly we all want to get this right. Our legislative framework already includes provisions for regulators to enforce our existing environmental regulations, and there is our system of judicial review. We will retain our rigorous parliamentary scrutiny and strong domestic legal framework for environmental protection, but we want to go further. I say that particularly to the noble Baroness, Lady Jones.
Lord Davies of Stamford (Lab)
I thank the Minister for giving way. Does he not accept that one very important thing we shall lose if we leave the European Union in two months’ time is the Francovich principle, under which individuals or groups of people can sue the Government or other state authorities for not observing the law on these matters? It is due to Francovich that on a number of occasions we won considerable improvements to our water quality and the cleanliness of our beaches. That constraint on government, that discipline, will disappear completely if we leave the European Union.
Lord Gardiner of Kimble
Had the noble Lord known what was coming in my remarks, he might have been furnished with the response. As I mentioned in the previous debate, establishing the office for environmental protection will ensure that this and every other future Government benefit from the expertise vested in a consistent, long-term, independent environmental body. We currently propose that the new body should have three main functions: to provide independent scrutiny and advice; to respond to complaints about the Government’s delivery of environmental law; and to enforce the Government’s delivery of environmental law, where necessary.
The office for environmental protection will report annually on progress in delivering, for instance, the 25-year environment plan. This is similar to the current reports of the European Environment Agency on member state progress. The OEP will be independent and set its own priorities, so it is not for government to direct its priorities. We would expect, however, that the OEP would choose to scrutinise such reports. As I mentioned before, we will put in place a holding arrangement during the interim period between 30 March 2019 and the launch of the OEP, if no withdrawal agreement is finalised. This will provide a mechanism for the OEP to receive a report of any perceived or—
Lord Davies of Stamford
I am sorry to interrupt the noble Lord again, but I am afraid that he may have missed the point. I am sure he knows an awful lot about this subject, so he must know about the Francovich principle. Some 17 successful cases have been brought against the British Government or authorities, and several hundred in the Union as a whole, since the European Court decided on the Francovich judgment. That is a discipline quite different from having regulators. Of course we must continue to have regulators, and the noble Lord has suggested that the Government will now set up another regulator. Regulators are fine, but far more effective as a discipline is the Francovich principle, under which the Government or any other state organisation can be sued in court. They are therefore not only exposed in the courtroom but can be made to pay damages and, no doubt, considerable legal fees. That discipline exists now but will not exist, because the Government specifically have no intention of continuing with it after we leave the European Union—if we do.
I have raised this matter before and I want, if possible, to persuade the Government to continue this valuable principle in our national life, given that it has been an important part of our membership of the European Union. So far, I have got nowhere at all, but I beg the noble Lord to focus his reply on Francovich and not give me instead interesting but irrelevant things, like a new regulator.
Lord Gardiner of Kimble
I will continue to talk about the regulator, but I will say that I know from my experience of the judicial reviews of ClientEarth, of which a number of your Lordships are well aware, that it is clearly a route by which these matters have been dealt with.
As I was about to say, the holding arrangement shows the Government’s bona fides, and we will provide that mechanism for the OEP to receive a report of any perceived or claimed breaches of environmental law made during any interim period.
Baroness Young of Old Scone
I was intrigued by the noble Lord’s statement that the OEP would enforce regulation and compliance if the Government were not complying. Can he give us further details on the enforcement mechanism? The big worry is that we will have a regulator without the ability to enforce government compliance with environmental standards.
Lord Gardiner of Kimble
I admire the noble Baroness’s inquiring mind. Clearly, that will be relevant to the environment Bill in the next Session, and to many of the deliberations in the other place and here. We are embarking on a very important move and I invite your Lordships to be fully engaged. We want to get it right for the long term.
On EU standards, I absolutely get the point expressed —and with passion—by the noble Lords, Lord Judd and Lord Teverson, and my noble friend Lord Deben. But it may be that a future Government of this country want to go further than the EU. We should be less pessimistic about our future in this country, whatever we think about arrangements. There may be intricacies of our national life that mean we want to go further than the EU standards of the time. I get the point, however, and of course we want to safeguard and improve the record that has been achieved. For example, there are some very good statistics on how bathing waters have improved. I particularly admire what Surfers Against Sewage has done—it has been tremendous in raising the public profile of this issue—and I also appreciate what many other organisations have done, in a European context and in the UK. However, the withdrawal Act ensures that existing standards transposed into domestic law will be retained. We want to maintain these high regulatory environmental standards and, as I said, improve on them wherever possible.
On the question of water supply fittings—
Lord Deben
Of course my noble friend is saying exactly what he and I would want. But I remind him that when we were not in the European Union—and if we had not been in the European Union—he and I would have been on the same side, pushing Governments to raise their standards and they would not have raised them. Therefore, we can only go on the past. We are where we are because we were in the European Union. We can have hopes for the future if we leave the European Union but, frankly, I doubt them. We have always been much less good at these things when we were not in the European Union because the Treasury always had a jolly good reason to stop good people like him and me fighting for what we believed in.
Lord Judd
My Lords, the Minister made great play of the fact that we could perhaps want to go further than the European Union, but there was never any objection to us having higher standards than required in the European Union—never. That is a misconception and it is quite wrong to suggest that.
Lord Gardiner of Kimble
My Lords, I think that in the mood of the times on the environment and all that we have seen, whether in reference to climate change or the use of plastics, this country and the world are moving into a different phase of thinking about things that we did wrong before. Whatever happens, we in this country, with the expertise that we have, should be championing all these things. I do not think, for instance, on scientific expertise that I can do anything other than say that we have some of the world leaders in this matter. Clearly, the UK Technical Advisory Group will continue to liaise with agencies and Governments across the UK, with our European friends and with our global counterparts, precisely because, as has been said, so many of these things have a knock-on influence.
On the issue of the water supply fittings referred to by the noble Baroness, my understanding is that the amendment is to ensure that the UK will not be in breach of WTO rules. Our current legislation makes it clear that UK standards still need to be met when installing water fittings in agricultural storage products, and I stress that products from the EEA and any other country can still be used and installed if they meet the current high UK standards. That is the background.
I will look at the issue of technical omissions because I respect—as I respect all the comments that have been made—what the noble Baroness said about those. The technical omission of certain articles, including Article 10 of the water framework directive, does not impact on the functioning of the water and floods policy regime. Article 10 repeats existing obligations that are already transposed into our domestic law. We are already under- taking these obligations and will continue to undertake them as set out in our domestic law. However, I will pick up the point that the noble Baroness made.
My noble friend Lady McIntosh of Pickering asked about the procedure to change Article 20. Article 20 of the water framework directive is about the technical adoption of the directive. We will continue to co-operate effectively with our European and global counterparts to exchange the latest scientific information. We will of course also liaise with the devolved Administrations through the current UK Technical Advisory Group. She asked about cross-border issues. The Environment Agency and the Scottish Environment Protection Agency collaborate on the cross-border river basin districts in setting standards and developing river basin management plans for Solway Tweed and Northumbria. The SI amendments are operability matters. They will certainly not lead to a lowering of standards. That is not the purpose. In fact, there are no policy changes and we wish to retain our standards, if not improve them.
Baroness Young of Old Scone
Perhaps I might press the Minister on the consultation arrangements. This is a point I have made previously, and I wish I had pushed it harder. We appreciate that various environmental NGOs and others were given sight of the instrument before it was laid because that gave an opportunity to get expert input into it. I wonder whether there is an opportunity to bring parliamentarians into that process in future SIs because the risk is that an SI is laid and we have no opportunity to amend it in any significant way because of the process. It might be helpful if parliamentarians who are interested in the technicalities of these SIs could see them before they are laid so that they could also have an influence on them at a time when it is possible to make changes.
Lord Gardiner of Kimble
I have a feeling that that may be above my pay grade, but it is certainly an interesting and legitimate point. In all these areas, obviously we want to bring forward statutory instruments and legislation that command the support of Parliament. Parliamentary scrutiny—certainly the scrutiny that your Lordships present—is challenging and keeps a Minister on their toes and the Government’s feet to the fire. On this technical matter, I—
The Archbishop of York
The Minister has been very clear about the benefits of regulation, particularly for the environment, which, as he said, were brought about through sheer hard work, campaigning and persuading other people. Nevertheless, does he agree that EU regulations have grown into a jungle that has become very difficult to penetrate?
Lord Gardiner of Kimble
When I read the first draft of the Explanatory Memorandum, my thoughts were that lawmaking can be extremely complicated and that the drafting sometimes takes further reading. The clear message on what we want to do through this SI and the earlier instrument is that we want to safeguard this country’s environmental standards. That simple concept sometimes involves fairly intricate matters, so I say to the most reverend Primate that I like and appreciate simplicity, but there are moments when we need to make sure that the law is produced in an intelligible and understandable form.
Lord Deben
No. I was hoping to say something before my noble friend sat down.
Lord Gardiner of Kimble
I have not sat down but I think that we are starting to elongate this matter and I ought to conclude.