(1 week, 2 days ago)
Lords ChamberObviously, we are keen to encourage all small poultry keepers to register. The system is now working well—I have actually done it myself, because I am a small poultry keeper—so I absolutely encourage anyone to do it. It is very simple: it probably took me about a minute and a half. It is very straightforward so, if you have not registered, please do.
My Lords, although this outbreak is very small, the noble Baroness will remember that, in the previous serious outbreak in the run-up to Christmas, uninfected turkeys were slaughtered early and kept in large chiller facilities until needed for Christmas. Should this outbreak get more serious, are there plans to repeat that process?
As I said, 85% of turkeys that are expected for the Christmas dinner table have already been slaughtered and are available either fresh or frozen, so I do not see that that will be an issue for this year.
(3 weeks, 2 days ago)
Grand CommitteeMy Lords, I congratulate the Minister on and thank her for bringing forward these regulations, which I wholeheartedly support; I also thank her for her clear exposition of what they contain. I have a couple of questions.
The Minister set out the responsibilities, particularly around informing households of what they are required to do. I understand that a lot of the waste that is contaminated cannot be effectively disposed of and recycled. Does the Minister know what percentage of household waste that constitutes, including whether it has gone up or down in, say, the last five or 10 years?
I am grateful to the Wildlife and Countryside Link and the Green Alliance for the joint briefing that they have produced for our use. I am also grateful to the Minister for drawing attention to the Secondary Legislation Scrutiny Committee’s report, which gave a very helpful background.
My understanding is that the regulations relate only to recycling. I wonder why the department has focused on recycling and not reuse. I have asked on a number of occasions both the Minister and her noble friend the Minister for Energy, the noble Lord, Lord Hunt, what the Government’s policy on energy from waste is. It is a good way of using household waste that has been contaminated and cannot be reused. It also prevents it going to landfill, which I understand is where most of the waste that is not recycled will go. So it not only reduces household waste and disposes of it in an energy-efficient way; it also provides an energy stream that other countries in Europe use to great effect. My late aunt and uncle in Denmark had their household heating provided by energy from waste at a reduced rate, so there was a community interest in taking it up. I have not heard anything from the Government—either this department or the department for energy—as to their views on energy from waste.
The Minister referred to kerbside collections, the cost of which is obviously quite high. I have now lost the page but one of the figures relates to the substantial cost of kerbside collections. Is it the idea that household collections will be performed by local councils, which will be reimbursed under the regulations by the funds raised? I think that the Minister alluded to this; that would seem very sensible indeed.
With those few remarks and questions, I commend the regulations, but I am interested to know how much will go to landfill; why the Government have not looked at reuse; what the percentages are for contaminated materials that cannot be recycled; and what the Government’s views are on any residual household waste going to energy from waste plants.
My Lords, I thank the Minister for her extensive introduction to this long-awaited SI. This is a complex issue; it has taken Defra and the Government since 2019 to bring it to this stage. I congratulate both of them on managing to get the devolved Administrations to sign up to more or less the same scheme, which should make things easier. I have received briefings from various producers and had face-to-face meetings for several years, and I was beginning to think that we would never get here. I am grateful to those who provided me this week with briefing material, as well as to the Secondary Legislation Scrutiny Committee for its report.
The opening section of the Explanatory Memorandum refers to implementing the “polluter pays” principle. That is to be welcomed. This is an opportunity to use the extensive powers in the Environment Act 2021 in order to implement the best environmental outcomes and to support the efficacy of reuseable packaging systems.
This SI obliges producers to provide evidence of the type of their recycling to the regulator. However, there is no information on how this is to happen, except that those manufacturers with a turnover of more than £2 million and which produce more than 50 tonnes of packaging will do this once a year. These producers will pay the fees to local authorities. Those with a smaller turnover of more than £1 million will have to report their recycling type but will not have to pay fees. There is nothing about how the information is to be collected by the manufacturer and what the format is for it to be reported.
I regret to say that this is something of a “get out of jail free” card. Defra and the Government are placing a great deal of trust in those who will pay the fee to provide the evidence of their recycling. The regulations include the principle, at Regulation 62(2)(b), that producers can offset fees for packaging that they market, as well as where they collect and recycle that packaging through self-funded initiatives.
There is a risk that producers could claim they have collected and recycled packaging when this is not the case. Research shows that 70% of soft plastic packaging waste collected by supermarkets for recycling was, in fact, incinerated. Can the Minister say why is there no standardisation of how evidence of recycling is to be provided?
(3 weeks, 4 days ago)
Lords ChamberMy Lords, I would like to say that it has been a great privilege to be responsible for the passage of the Bill through this House. I thank all noble Lords for their careful scrutiny of its provisions and the constructive suggestions and contributions made at each stage. While we may not have ended up agreeing on everything, I know we agree on the importance of the Bill and the need to drive meaningful improvement in the performance of the water industry as an urgent priority.
The public expect and deserve transformative change across the water sector, and the Bill is a crucial first step towards meaningful reform. The new provisions brought forward by the Bill will strengthen the regulation of water and sewerage companies while giving our regulators the most significant increase in enforcement powers in a decade.
The Bill will ensure that water company executives are held to high standards, reflecting the importance of their role in overseeing the operation of vital water and sewerage services. Crucially, the Bill will increase transparency around water company operations and pollution incidents, ensuring that the public, as well as the regulators, are well equipped to hold water companies to account.
With the passage of the Bill in this House, we have made inroads into turning around the performance of the water industry, and made clear our expectations for water companies in advance of the most ambitious investment period that the water industry has seen.
This Government are committed to working closely with counterparts in Scotland, Wales and Northern Ireland to address the shared challenges facing our water environment. Our waterways and some of our water companies cross our shared borders, so the importance of working together to improve the water environment cannot be underestimated.
Of particular relevance to the Bill are the challenges faced across the privatised water sector in England and Wales. In line with this, my officials have worked constructively with Welsh counterparts throughout the passage of the Bill through this House, so I am also delighted that the UK Government and Welsh Government have together launched the independent commission to fundamentally transform how our water system works. The independent commission will provide the lasting change that England and Wales need to deliver much-needed reforms in the water sector, which I know all Members of this House are eager to see. We look forward to continued and long-term collaboration with the Welsh Government on the Bill and the independent commission.
In conclusion, I thank all noble Lords who have offered their expertise to enhance and strengthen the Bill in this House. The discussions have been truly collaborative. The Government carefully considered the important points raised during the Bill’s passage and, in consequence, tabled the amendments that we discussed on Report. I believe that the provisions of the Bill leave this House even stronger as a result.
Many of the wider points raised by noble Lords will be addressed by the independent commission, which, as we have discussed, will review the entire water sector regulatory system. I look forward to further collaboration with noble Lords during the course of the independent commission, and on future legislation, as we continue to work towards the shared goal of restoring and protecting our precious water environment.
Just before I finish, I record my special thanks to officials, particularly the wonderful Bill team, who worked so hard and gave me exemplary support throughout the passage of the Bill in this House.
My Lords, I thank my noble friends Lord Russell, Lady Parminter and Lady Pinnock for standing in for me when I was off with Covid. I am very grateful to them.
The Bill is essential, and it was essential that it began its journey in this Chamber. It is only one piece of the jigsaw that the Government will bring forward to deal with the problems of the water industry, but it is a vital one.
I thank the Minister and her officials for their time in listening to those of us across the Chamber who were concerned about some aspects of the Bill. She was extremely patient and receptive to the arguments we put forward, and we are grateful for the movement that the Government were able to make on the pollution incident reduction plans and the performance-related pay issues. Ofwat has been strengthened by measures in the Bill and it is to be hoped that, overall, the discharges of sewage will reduce quickly and the quality of water in our streams, rivers and lakes will improve as a consequence.
It is now up to the other place to take on the Bill, which has been much improved by the debates and changes made in this Chamber. For our part, we welcome the review of the water industry as a whole and look forward to seeing how the Bill will fit into the overall picture. It has been a pleasure to work with the Minister and her Bill team on this essential piece of legislation.
My Lords, the core objectives of the Bill were, of course, supported by all sides of your Lordships’ House. The water and sewerage industry has betrayed consumers, and the regulators have consistently failed to bring these companies to book for many years. It is not so much to ask that we should all be able to enjoy clean and healthy rivers, lakes and beaches. On our Benches, we proposed tough action on the companies and executives responsible, and we are pleased that the Bill now places greater responsibility on the industry to clean itself up, while granting greater powers to regulators to enforce those rules.
This Bill is only a short-term move to impose special measures on the industry while we await the results of the commission, which will report next year. Special measures are, by definition, temporary, and the Government must bring forward the next stage of reform urgently. We look forward to reading and debating those reports and engaging fully with the Government to ensure that the right medium to longer-term reforms are put in place to ensure that all stakeholders’ interests are properly recognised and balanced.
I am most grateful to the Minister for listening to the concerns of the House in constructive engagements in this Chamber and in private meetings with her and her excellent officials. Those engagements were always courteous and helpful in airing the issues around each topic of discussion or debate. The best traditions of the House may be frequently mentioned, but this is a very good example, and, in this case, the Bill is much improved as a result.
The House owes thanks to the Minister for the excellent amendments that the Government brought forward. In particular, the pollution incident reporting plans now have teeth and will be a valuable tool in pushing the industry to do better. I also highlight amendments that place much more weight on using nature-based solutions as an alternative to more traditional investment in infrastructure. These amendments will have a measurable impact on nature recovery efforts in this country.
Although this House amended the Bill to improve accountability on debt levels and financial structuring, thanks in particular to the noble Lord, Lord Cromwell, as well as on the accountability of the Government on the rules being set, it was a little disappointing that the Government would not accept our amendments to protect the consumer in the event of an SAO, nor to enable the Secretary of State to limit water companies’ debt levels when necessary.
Finally, I thank all noble Lords from all Benches of this House who engaged in debates on the Bill and with whom I had many constructive discussions.
(3 weeks, 4 days ago)
Lords ChamberMy Lords, I thank the Minister for this Statement and I am pleased that the House has been given the opportunity to discuss the very serious flooding incidents over the weekend. I draw the attention of the House to my interests in the register as a farmer. I pay tribute to all the emergency workers, local authority staff, the Environment Agency and community volunteers who responded to the very difficult conditions caused by Storm Bert. I also thank the many members of the public who stepped in to help their neighbours and local communities.
The weekend’s extreme weather saw hundreds of homes flooded, with roads turned into rivers and winds of up to 82 miles per hour recorded across parts of the UK. At least five people in England and Wales have died. Our thoughts are with the loved ones of those who have lost their lives in recent days as well as the people whose homes and businesses have been devastated and all the communities affected by flooding and this weather.
Those affected by Storm Bert need practical support now and assurance that they will get the help they need in future. Reports that the Met Office failed to issue adequate weather warnings will have a real impact on people’s confidence in our national flood resilience. Given that we have much of the winter still ahead of us, can the Minister set out what steps she is taking to address concerns about the Met Office’s response to Storm Bert? Can she assure the House that action is being taken to prevent those alleged failings being repeated if we experience similarly extreme weather in the coming months? Can she also tell the House what actions the Government will take to ensure that flood warnings are accurate and timely?
My thoughts are also with the people of Pontypridd, who were shocked when their town was flooded despite the area being given a yellow weather warning by the Met Office. Many local residents said that lessons had not been learned from Storm Dennis in 2020. Can the Minister set out what discussions Ministers have had with their Welsh counterparts to ensure that the people of Pontypridd are properly supported and that they get the flood defence investment they deserve from the Labour-run Welsh Government?
Following the Government’s Statement in the House of Commons yesterday, I would also like to put a number of follow-up questions to the Minister. Does she agree that the new Floods Resilience Taskforce must show that it is capable of action, and will she set out what action the taskforce has agreed so far? Will the Government commit to continuing the work done by previous Conservative Governments to support frequently flooded communities? The last Conservative Government introduced the farming recovery fund to support farmers hit by flooding and exceptional wet weather. Will the Minister commit to maintaining the fund not just this year, but going forward?
Finally, Storm Bert will also have been a setback for many farmers, who are already worried about increased fertiliser costs and inheritance tax burdens following the Government’s Budget. What assessment have the Government made of the expected impact of Storm Bert on farmers directly affected by this storm?
My Lords, I thank the Minister for repeating this Statement. Like others, I want to thank the services involved in rescuing those affected by Storm Bert and those who have helped with clearing up in the aftermath. They have done a great job. We have all seen on television the appalling damage that the deluge of filthy water causes to land, homes and town centres. It is heartbreaking not only for those who have had their homes flooded, but for businesses which have been destroyed as a result—they are struggling to come to terms with their life’s work being washed away.
The level of flooding was similar to that which occurred in the autumn in Valencia. Then, there appeared to have been little warning given, and no help either. In England we have excellent weather forecasts and advance notice is generally given. However, in some cases the notice was so short that those affected had no time to move their possessions or take avoiding action. In some areas no sandbags were available, and in others recently installed flood defences were ineffective in holding back the water. What plans do the Government have to improve early-warning systems ahead of flooding events?
The current eligibility criteria for flood relief and financial support are unhelpful for those living in rural areas. The more densely populated the area hit by overwhelming flooding, the more relief is given. The Frequently Flooded Allowance requires 10 properties within a community to be flooded in order to be eligible. The flood recovery framework is engaged only at the Minister’s discretion following severe flooding events. In the past this has required 50 properties to be flooded in a single area in order to be eligible. The Minister will be aware of these criteria. Many of the areas flooded on Monday had already been flooded twice this year. Can the Minister say whether the qualifying criteria for the Frequently Flooded Allowance and the flood recovery framework will be amended to allow more homeowners to be eligible for post-flooding support?
I turn now to the effect on the farming community. While I welcome the £60 million extra allocated earlier in the year to assist farmers whose land had been flooded, farms are now in a much more serious state. The Statement indicates that a further £50 million will be allocated to internal drainage boards. Can the Minister give any indication of what the criteria will be for the distribution of this £50 million? I note that this money will not be allocated until 2028. What is needed is help now.
I previously lived in Somerset, where the Levels were regularly flooded. What are the Government doing to recompense, on a regular basis, those farmers who play a role in accepting flood water so that more densely populated areas are protected? These farmers are not able to grow crops nor graze their stock while their land is submerged. Is there likely to be recognition for the valuable service these farmers provide? It is important to encourage farmers to instigate ways of storing water and institute schemes for flood prevention. I am sure the Minister and her colleagues are doing this, but I would be grateful for an update.
Finally, I hope the Minister will agree that the actions of the farmer who drove his tractor at speed through the centre of Tenbury Wells, which was already flooded, causing increased destruction to businesses and properties, did nothing for the reputation of the farming community. He should be identified and brought to book for his reprehensible actions.
I thank noble Lords for their responses to the Statement and their questions. As other noble Lords have done, I pay tribute to all those who responded and supported communities affected by storm Bert. I offer our condolences in particular to the families who have lost a loved one.
Noble Lords asked about support for people during the flood event, and flood warnings were particularly mentioned. I know how this works as I live in a house that has been flooded. We get the Environment Agency’s flood warnings. In my experience, the service is good; the agency emails you, phones you and texts you. You usually get very good notice of any potential problems. But I understand that people were concerned that this time there was very short notice. My understanding is that the Environment Agency is looking into that to see whether there were issues with the timings in this case.
Going right back to the 2007 floods, much work has been done since then on collating information to inform regularly updated emergency plans and to look at the best way to facilitate a quick and efficient response. Clearly, this needs to be considered if local people feel that that did not happen in the best way it could have done.
Regarding how we are supporting the flood response in Wales, obviously it is a devolved matter, but I know that the Prime Minister spoke to the First Minister on Sunday regarding flood impacts and to offer support. The Welsh Government have reassured him that they have the situation under control. We are aware of the problems that certain communities in Wales are facing and we are there to support in any way we can.
The floods resilience task force was mentioned. That met for the first time in September. The idea is for it to set a new approach to preparing for flooding and working between national, regional and local government, including the devolved Administrations. The idea is for it to meet quarterly and consider both near-term resilience and preparedness. The next meeting will be in January and it will look at the situation we have just been facing. The important thing is for this to start to drive forward the actions we need to take to be best prepared for these events when they happen in future. Part of the January meeting will be looking at what happened, how we can move forward and how we can improve. It is a rolling programme of improvements.
One of the things is an agreement to share lessons learned across all tiers of government and with flood responders. We had an agreement from the meeting in September for Defra to write to all MPs, which has happened, in advance of winter, to provide advice on key flood preparedness messages for their constituents. That is one action that came out of the September meeting.
Farming was mentioned. The farming recovery fund—the £60 million from previous flooding—is being distributed to farmers. Payments for that started last week. In the investment programme, the amount of funding a project can attract depends on the damage it will avoid and the benefits it will deliver, with the impact on agricultural land included as part of the funding calculator. We are reviewing the existing funding formula to ensure that challenges facing businesses are adequately taken into account and we will of course be working with farmers to support recovery.
The noble Baroness mentioned the flood recovery framework. This is managed by the MHCLG, because it has a core package for business and community recovery support for the most severely affected areas, but the property flood resilience scheme is a Defra grant, which is managed and delivered via local authorities. They are traditionally activated alongside each other. Just to give a sense of scale, the property flood resilience grant scheme has been activated six times in the past, and on each of those occasions more than 2,000 properties were flooded across multiple authority areas. Again, you have to look at the scale of it, and the decision will be made on that basis.
The noble Baroness, Lady Bakewell, talked about the funding formula and eligibility for funding support. The floods funding framework was an inherited formula for allocating money for flood defences. We believe it to be outdated; it is something that as a shadow Minister I raised many times, because it concerned me that it did not take account of all situations—the frequency of flooding, for example. We are concerned that it slows down delivery and neglects more innovative approaches to flood management as it stands, such as nature-based solutions, as we discussed during the passage of the water Bill. Defra has announced a review of the partnership funding policy, which was a few days ago, and we intend to start a consultation on that in the new year. We want to ensure that the challenges facing businesses and rural and coastal communities are also properly considered and taken into account. Currently, we are looking at how we move forward with that.
The noble Baroness also asked about internal drainage boards and the distribution around allocations on that. She mentioned the fact that on 13 November we committed to provide the extra £50 million to internal drainage boards over the year and next year, to improve, repair or replace their flood-risk assets. The idea behind that investment is to put the internal drainage boards on a firm footing so they can deliver their vital role in flood and water management for years to come. As she rightly said, that builds on the £25 million that was provided to the internal drainage boards for storm recovery following the previous floods.
In previous debates, people have talked about surface water flooding. It is going to be incredibly important that we get this right, because it is not just about flooding from rivers and the sea and bursting barriers; it is also about how we manage surface water flooding. Internal drainage boards and the role of local authorities will be extremely important in that.
There is also the issue of the higher costs. The noble Baroness asked how we were going to distribute. Obviously, it is a very new allocation of funding and we have not gone into that detail. There are costs that need to be managed and we are working with the MHCLG to examine whether any changes are needed to the funding—because it really needs to deliver. But one thing that the Government are absolutely committed to is looking at existing flood defences. Many of the reports that have come out were about flood defences not doing what they should have done, and we know that maintenance of flood defences has been an issue. One thing that we have pledged to do is to look at that. I know that my honourable friend the Flooding Minister is extremely keen that we focus on ensuring that existing defences are fit for purpose, because they need to be as we move further into the winter; we know that serious storms are only likely to get worse. That is very much going to be part of our focus.
(3 weeks, 4 days ago)
Lords ChamberAs part of the consultation and the development of the land use framework, we are intending to engage with a very broad range of respondents in order to have meaningful co-design, and resources absolutely have to be part of that.
My Lords, creating energy through solar farms is vital to ensuring a mixed energy supply. It is also vital to use grade 1 agricultural land for producing food. In Canada, crops are grown under solar panels—agrivoltaic farming. Studies have shown that some crops thrive when grown in this way. This not only reduces carbon emissions but doubles up on the use of land. Are the Government looking at agrivoltaics as a way of producing food and sustainable energy?
As the noble Baroness rightly points out, solar generation can be co-located with farmland. Many projects, for example, are designed so that livestock grazing can continue, and on the point she made on arable, there is some evidence that it can be better for growing and for nature if there is solar generation on the field.
(1 month ago)
Lords ChamberAs I just said, when money for investment is not spent, it is important that customers are refunded. The department is having ongoing discussions with Ofwat, and I will certainly take back the noble Baroness’s question for the next discussions.
My Lords, water is an essential element in many businesses and industries, not least the farming and horticulture sectors. With ELMS not delivering in the way originally intended, farmers and growers are finding their incomes shrinking and costs rising. Can the Minister ensure that at least their water bills are not escalating?
As I said, we are working very closely with water companies to ensure that bills do not increase unnecessarily. There are many challenges in the farming industry, and the Farming Minister is working across the piece to try to support farmers. For example, the farming budget was not reduced in the Budget this year.
On ability to pay bills, we know that all water companies have measures in place for people who struggle to pay for their water and waste services, and we encourage water companies to work with customers to apply for those whenever it is appropriate.
(1 month ago)
Lords ChamberI congratulate my noble friend Lady Northover on her excellent speech. I have a Riverford box of organic vegetables once a week, including a leaflet with thoughts on farming and the countryside. I have permission to quote from Guy Singh-Watson of Riverford. On 11 November, Guy wrote:
“Should James Dyson (who owns 36,000 acres of land) or Jeremy Clarkson (1000 acres) be the beneficiaries of a tax break designed to help working family farms?
In her budget, Rachel Reeves announced that Agricultural Property Relief (APR) is changing ... Under the new rules, assets above £1m will be taxed at 20% (half the general rate of inheritance tax). This may sound generous – but £1m will buy you about 100 acres, which is far short of a viable farm. If … Reeves’ aim was to close the loophole whereby rich tax dodgers buy up land primarily as a way of passing wealth, tax free, to their children”,
which may result in small farmers going out of business.
“As a second-generation farmer”,
Guy understands,
“the impact of this change. Farming is a long-term business requiring substantial assets that … earn meagre returns. Introducing inheritance tax to our work and planning is a big deal … If Reeves, quite rightly, wants to extract from wealthy landowners some of the £40 billion we need to rebuild our country, here would be a fairer approach. Firstly, a higher threshold on the APR change. In most cases, the smallest commercially viable farm is 300 acres. Taking an average land price of £10k per acre, that would suggest a threshold of £3m before inheritance should be taxed. I can see little reason why those owning land worth more than, say, £7m should not pay the standard rate of 40%. Secondly, where planning permission is granted, land value can increase 10- to 1000-fold – and as long as the owners reinvest in more land, they pay no tax. Reeves could target these capital gains, where the landowner has added no value … Finally, APR is given to all landowners, without differentiating between working farmers and those who are buying up our country mostly to avoid tax. The unintended consequence … has been to inflate land prices, and … exclude new entrants … from farming. Taxation to encourage the sale of such estates could create opportunities for new farmers to buy land and revitalize farming rather than adding to its decline”.
We have had some excellent contributions this afternoon, and I look forward to the Minister’s response.
(1 month ago)
Lords ChamberMy Lords, I thank the Minister for her time over the period between Committee and now. I shall speak first to my Amendment 9, which deals with performance-related pay and, more specifically, with bonuses paid to CEOs and directors of water companies. Performance-related pay should be related specifically to how well the water company has carried out its functions, having regard to the environmental targets it has been set. These are likely to relate to the number of illegal sewage spills that have occurred in the preceding 12 months.
During the last year—and especially during the general election campaign—the issue of sewage overflows was in the news almost daily. We saw the outrage of local residents at the state of their streams, rivers and lakes due to sewage spills—many occurred when there had not been any heavy rain. I will not go through the arguments, which have been well rehearsed in this Chamber. What I and my colleagues on these Benches are looking for is a reassurance from the Minister that where a category 1 and/or a category 2 pollution incident has occurred, the management of the offending water company—including the CEO, directors and senior officers involved in decisions in respect of controlling pollution—will be prevented from receiving any bonus or other performance-related pay enhancement to their basic salaries. It is unacceptable to the public for those in a very senior position in sewage and water companies to be rewarded over and above their normal salary for allowing sewage and other pollution to take place and not to have taken any steps to rectify the situation in a reasonable timeframe.
On Amendments 1 and 5 in the name of the noble Duke, the Duke of Wellington, environment groups have expertise to give to the water industry, but they should sit on boards. Consumers would also have a voice on boards. On our Benches are Peers who have in the past sat on water boards and contributed positively to their debates. This is a good and positive way forward. We support environmental groups and consumers being on boards and not being sidelined.
Amendments 2 and 8 from the noble Lord, Lord Cromwell, are about reporting. Amendment 2 would set up annual reporting on financial restructuring, including debt levels. This would seem a sensible way to ensure that the sewage and water company was aware of its business. However, Amendment 8 would involve others in the work of the authority, which is likely to become a bureaucratic nightmare. I have in a previous life sat on such bodies and found them to be unproductive and ineffective—I am sorry. Expectations of the civil society representatives will be high, sometimes with little understanding or knowledge of just how long it can take to implement what may often seem like a trivial matter.
Amendments 4, 7 and 10, from the noble Lord, Lord Remnant, do not align with our Amendment 9 and therefore we do not support them. However, I am conscious that whatever penalties the Bill hands out to directors and CEOs of water companies, they have to be proportionate, or it will be difficult to recruit people with the necessary expertise to sit on the boards of sewage and water companies.
Amendments 11 and 58 from the noble Lord, Lord Roborough, would introduce an SI into the legal framework. SIs are a favourite tool of Governments to get the detail of legislation in place. They tend to get somewhat divorced from the original Act that they refer to, but the timeline proposed here should mean that the original Act will still be fresh in peoples’ minds.
Amendment 57 from the noble Lord, Lord Sikka, is, I fear, unworkable. I know from previous debates that he and the noble Baroness, Lady Jones of Moulsecoomb, would prefer to be debating the renationalisation of water and sewage companies.
The Government have indicated that this is not going to happen. The amendment is an attempt to bring forward a different model of governance. The proposal is for 25% of board members to be chosen by local authorities. Local authorities are struggling with social care, looked-after children, education and people with learning disabilities. They certainly do not need this added to their “to do” list.
I look forward to the Minister’s response to this group of amendments, particularly Amendment 9.
My Lords, Amendment 57 is highly workable, because it advances democracy and public accountability of the regulatory bodies. As we have it now, the regulators of the water industry have failed the people, mainly because they are too close to the very interests that they need to regulate and far removed from the welfare of employees, customers and citizens, who bear the ultimate cost of regulatory failure. I am pretty sure that the Government will soon be asking customers to chip in more money to restructure water companies and taxpayers to pay more to reconstruct them. That is just one part of the cost which people will bear.
All regulatory bodies need to be guided by effective watchdogs and guide dogs, but Ofwat has neither any watchdog nor any guide dog; it just seems to be running loose and doing whatever it wishes. There is no mechanism for preventing capture of water regulators. The executives of Ofwat pass through revolving doors and join the water companies with dizzying speed and great regularity, undermining the independence of the regulatory bodies. Regulatory bodies must be seen to be independent rather than just claim that they are independent. At the moment, a director of Ofwat, a former Conservative Minister, is spearheading a campaign that would make it harder for consumers to sue water companies that breach legal sewage limits. Should a regulator be doing that—or should it be more even-handed between the regulated and consumers?
My Lords, Amendments 39 and 40 in the name of the noble Lord, Lord Cromwell, relate to the publication of data on sewage overflows in a form that is readily accessible to the public. The public are concerned about sewage spills, and they want to know when and where they are occurring. They also want to know what is being done about preventing further spills in their area. The amendments help to redress the current balance on availability of information.
Amendment 41 in the name of the noble Duke, the Duke of Wellington, relates to the failure of electricity supply which affects a sewage overflow outlet. I agree completely with the noble Duke. If an overflow outlet is reliant on an inefficient electricity supply, it is up to the undertaker to work with the electricity company to ensure that it is fit for purpose. The electricity supplier, similarly, will know when there is going to be a planned outage and should notify the undertaker in advance so that alternative arrangements can be made. If the electricity supply which serves an overflow outlet is inclined to break down, the undertaker should plan to have a generator on standby, as the noble Duke said, to take over when the electricity supply is down. This is common sense, and I look forward to the Minister’s comments.
My Lords, first an apology: in my excitement in the last group on the government amendments, I forgot to refer to my register of interests, including as a landowner across a number of river catchments and an investor in several natural capital-related technology companies.
I thank the noble Lord, Lord Cromwell, for moving his amendment. I recognise how hard he has worked to improve the Bill, in consultation with the Government. We agree with the spirit of his Amendments 39 and 40 in that we also want more transparency from water companies on pollution incidents. This is an important principle that runs through the Bill, and I hope that the Government will listen to the noble Lord’s argument and seek to strengthen transparency in the water sector where this is appropriate.
I also thank the noble Duke, the Duke of Wellington, for his Amendment 41. While we do not agree with it, we do agree that water companies should take some and more responsibility for the resilience of their power supplies. I would be interested to hear what the Minister can offer in reassurance.
My Lords, the noble Duke, the Duke of Wellington, has set out the case for this group of amendments with his usual clarity and passion for sorting out the obligations which Ofwat needs to impose.
The money collected from fines from sewerage and water companies needs more clarity over its destination. At the moment, it would appear that the money from fines imposed by Ofwat does not go back into ensuring that investment occurs to correct the defects which allowed sewage spills in the first place. Much of the money from fines goes into the Treasury coffers and supports other government departments. This is not what the public want. They want the money from fines to go into making good inadequate and out of date sewerage systems and helping to create new reservoirs. A transparent and obvious way to achieve this is to set up a water restoration fund. This group of amendments requires all fines for environmental offences to be ring-fenced for this fund.
I understand that the Treasury is not in favour of this as it is hypothecation. I understand where it is coming from. However, it is necessary, due to the appalling performance of the water industry, for the public to be able to see just where the money from fines is going and how it is being used to improve the service they are paying for in their water and sewerage bills. We are, therefore, very keen to see such a fund set up without delay. There are undoubtedly going to be large fines coming down the line which water companies will have to pay. These fines cannot just evaporate into the ether so that customers cannot see what is being done with the money. Restoring public confidence in the water and sewerage industry is key to moving forward and a water restoration fund is a vital element of achieving this.
My Lords, I thank the noble Duke, the Duke of Wellington, for introducing this group. I also take the opportunity to thank him for his tireless commitment to clearing up the water industry. I have no doubt that the fact that we are considering this Bill in this Chamber at this time owes much to his hard work.
In government, we made progress on work to ensure that fines charged to water companies would be reinvested into the infrastructure of the water sector to reduce pollution and tackle flood risks. Given the very clear concern of the public about the health of our rivers, lakes and beaches and the impact of pollution, it seems only right that the proceeds of fines levied on water companies should be invested in tackling pollution, so we support the spirit of Amendments 46 and 47 in principle.
While there is clearly disagreement on how best to achieve the goal of reinvesting the funds raised through fines on water companies, we hope the Minister will listen to the concerns of the noble Baroness, Lady Bakewell of Hardington Mandeville, and the noble Duke, the Duke of Wellington, and ensure that proceeds from water company fines are reinvested in the sector.
I am so sorry, but we have reached time. Thank you.
My Lords, this is the last group of amendments. The noble Lord, Lord Remnant, has introduced Amendment 50 on recovering costs from water companies. The noble Lord, Lord Roborough, has Amendments 51 and 52 to leave out Clauses 10 and 11. We did not support these amendments in Committee and have not reconsidered our view.
The noble Baroness, Lady Jones of Moulsecoomb, has spoken to Amendments 53, 54 and 59, dealing with water companies that have been taken into special administration. Under Amendment 53, 50% to 100% of the debts of the company would be cancelled. Under Amendment 54, the Secretary of State would place a water company into special measures for breach of environmental conditions. Amendment 59 requires an assessment of costs to bring water companies back into public ownership. Although the noble Baroness, Lady Jones, is very articulate and passionate, I am afraid we are not able to support these amendments.
Amendment 56 in the name of Lord Sikka, to which he has spoken very eloquently, seeks to prevent companies from operating where they have criminal convictions in a five-year period. I have listened to the noble Lord’s arguments on this amendment and will listen carefully to the Minister’s response, but at the moment I am not convinced of the efficacy of Amendment 56.
My Lords, I shall speak to my Amendments 51 and 52, which seek to leave out Clauses 10 and 11 from this Bill. These would also have the effect of rendering unnecessary Amendment 50 of my noble friend Lord Remnant.
Our concern on these Benches is that the consumers are left as the providers of funding of last resort to the water industry. In the event of a company going into special administration and there being losses incurred by the Government, these clauses allow the Secretary of State to recover those losses by putting consumer bills up above the levels that have been determined by Ofwat—not just customers of that undertaker but also of others.
This does not seem fair or just. Surely the ultimate responsibility resides with the Government who created the system of regulation that must have failed in this scenario. I intend to test the opinion of the House on my amendment; we do not believe that the Government should grant themselves this power.
I would also like to briefly address Amendment 53 in the name of the noble Baroness, Lady Jones of Moulsecoomb. We on these Benches agree with her that a bailout of creditors or shareholders by the Government would be completely wrong. It is not for the Government to make professional or retail investors whole when their investments have gone wrong. However, we are unconvinced that this amendment needs to be in the Bill, given that there does not appear to be any mechanism where the Government could be called on to bail out investors. Perhaps the Minister can reassure the House that this is the case.
(1 month, 1 week ago)
Grand CommitteeMy Lords, it is estimated that more than 360 million single-use vapes were placed on the UK market in 2023. These devices are designed to be used a small number of times and are often referred to as disposable. Once used, which may be after a matter of hours, they are commonly thrown away. Research by Material Focus estimates that 5 million single-use vapes are thrown away every week. That is equivalent to eight per second.
They are often littered. They blight our parks, playgrounds and streets, and they introduce plastics, nicotine salts, heavy metals and lithium-ion batteries into the environment, harming biodiversity, soils, and our rivers and streams. Alternatively, they are thrown into black bins where, at best, they end up in landfill or are incinerated—at worst, they cause fires when they are crushed in bin lorries.
Last year, it was estimated that 700 waste fires were caused by batteries hidden in electricals such as vapes. This generates pollution, damages waste infrastructure and risks the safety of waste management workers, firefighters and the public. To give a personal example, a friend of ours has a medium-sized haulage business, and he lost virtually all his lorries last year through a fire caused by single-use vapes, which pretty much destroyed his business. So they can do enormous damage, and it is important that we tackle this problem.
Research by Action on Smoking and Health shows that the rise in single-use vapes has happened concurrently with an increase in young people vaping. Although vapes can play an important role in smoking cessation, adults who do not smoke and children should never vape. We must do what we can to prevent children from being targeted. Without action, it is estimated that, by 2030, the number of single-use vapes placed on the UK market could rise to over 1 billion per year. We must therefore take steps to stop the misuse of resources and protect our environment.
My department is leading a drive towards a circular economy to minimise waste, prioritise circular product design and retain the value of resources for as long as possible. It is estimated that, last year, 40 tonnes of lithium from single-use vapes were thrown away. This is enough lithium to power 5,000 electric vehicles. Single-use items such as these play no role in a circular economy, so we must act now to ban the supply of single-use vapes in England.
Before I turn to details of the legislation, I acknowledge the work of the Secondary Legislation Scrutiny Committee. Its report highlighted several points of interest, particularly the links to youth vaping, which I referred to earlier, and whether we will monitor market developments following the implementation of the ban. We work closely with the Medicines and Healthcare products Regulatory Agency to understand the types of products notified for use, and we will continue to look at this in future.
The committee highlighted correspondence received from Green Alliance, which strongly supports the ban but questioned the timeline for implementation and enforcement. We want to introduce the ban as soon as possible, but we must allow a minimal but reasonable transition to allow businesses time to run down stocks and adapt activities. That is why the ban will come into force on 1 June next year. Effective enforcement is critical, and we will work closely with enforcement agencies to understand how we can best support them.
I turn to the details of the legislation. This ban is introduced through powers in the Environmental Protection Act 1990. Part 1 of the legislation sets out the meaning of a “single-use vape”, which is
“a vape which is not designed or intended to be re-used”
and which includes any vape that is not rechargeable or refillable.
The ban applies to England only, but my officials have worked closely with the devolved Governments, who are bringing in equivalent legislation. We are grateful to our colleagues in the devolved Governments for their collaboration to ensure that, from 1 June next year, there will be a UK-wide ban.
Parts 2 and 3 of the legislation introduce offences and enforcement provisions. Enforcement of the ban in England will be carried out through local trading standards officers, and the powers in the legislation have been developed in partnership with them. The regulations provide new civil and criminal sanctions and provide powers to test or seize illicit products and issue fines as well as stop or compliance notices. Where a compliance or stop notice is not complied with, a further fine or jail sentence may follow.
Lastly, Part 4 of the legislation covers requirements for guidance, as well as setting out review clauses.
Vapes can play a role in helping adults to quit smoking, but there is no reason for these products to be single use. Given the harm caused, we must take this simple but important step to ban these products.
My Lords, the Minister has set out the rationale for the introduction of this SI very clearly.
Single-use vapes are extremely popular among young people. Encouraging young people not to start smoking has to be a key aim of any Government. It is something of a rite of passage to gather with your friends for a chat and a smoke or a vape. Preventing experimentation with cigarettes is the first priority. Then, it is about encouraging young people away from vapes—especially single-use ones—when they may have switched to vaping.
I am grateful to Green Alliance for the briefing that it provided on this subject, and to the Secondary Legislation Scrutiny Committee. Since 2023, 7.7 million single-use vapes have been bought every week—twice the number in 2022. Vapes are easily discarded, causing plastic-containing litter. They also contain other hazardous substances such as nicotine, which has previously been used as a pesticide. The batteries in vapes are a potential fire risk; the Minister gave a good example of that.
Although the lithium contained in the vapes discarded in 2023 would have made 5,000 electric vehicle batteries—the Minister referred to this—recycling them is problematic. Young people and others are not going to take their used vapes to a recycling point. The vapes are going to be discarded where they are, sometimes in a litter bin but often just thrown on the ground. A ban on single-use vapes will ensure that the lithium is put to a better use.
The Government’s recent Budget introduced a vaping products duty, which will be introduced in October 2026 —that is two years away—and is to be £2.20 per 10 millilitres of vaping liquid. This will increase the cost of vapes and will, I hope, discourage their use. Cheap, reusable vapes are as easily discarded as single-use ones, so increasing the cost of reusables must be part of the strategy in moving people away from vaping. The ban on single-use vapes will come into force in June 2025, as the Minister said, which gives enough time for retailers to reduce their stocks and for users to become accustomed to buying reusable vapes.
I fully support this SI but I have a couple of small queries. Paragraph 9.7 of the Explanatory Memorandum talks about the
“impact on the public sector as local authorities are regulators and therefore responsible for enforcement”.
The last sentence of the paragraph reads:
“Funding will be provided to support enforcement”.
That is an encouraging statement. Although it does not say what the funding will be, having a statement that it will be provided in the Explanatory Memorandum is to be welcomed.
I turn now to the SI itself. Regulation 14 states that, at the end of a three-year period, the Secretary of State must conduct a “review of the operation” of the Schedule. As with any change in legislation, a review of how the change has had an impact on those affected by the SI is key to ensuring that changes keep pace with public behaviour.
Paragraph 1(1)(a) in Part 1 of the Schedule indicates that a fixed monetary penalty of £200 will be paid to the regulator for a breach of the regulations. Later on, paragraph 16 in Part 2 of the Schedule, which is headed “Offence”, states:
“Where a person on whom a stop notice is served does not comply with it, the person is guilty of an offence and liable—
(a) on summary conviction, to a fine, or imprisonment for a term not exceeding the general limit in a magistrates’ court, or both; or
(b) on conviction on indictment, to imprisonment for a term not exceeding two years, or a fine, or both”.
Imprisonment for 12 months or two years is quite a jump from a £200 fine. It is likely that I have not understood how what seems like an on-the-spot fine of £200 can escalate to imprisonment; I would be grateful if the Minister could help me with this.
Green Alliance has asked three questions. First, given the exponential growth of single-use vapes, can the Government expedite the ban to before 25 June? Also, how do they plan to limit further growth in the use of vapes between now and then?
(1 month, 1 week ago)
Grand CommitteeMy Lords, this instrument adds three substances, UV-328, dechlorane plus and methoxychlor, to the assimilated persistent organic pollutants—or POPs—regulation in response to the adoption of these three substances as POPs under the United Nations Stockholm convention. The UK is a party to the convention and is therefore obligated to reflect in UK law the listing of POPs under the convention.
In addition, this instrument makes a number of other technical changes to the annexes of the POPs regulation. These include changes to waste concentration limits, specific exemptions and unintentional trace contaminant levels—or UTCs—for some POPs. The amendments, in brief, update and clarify the way that some articles, substances or mixtures containing some POPs can be used, manufactured, placed on the market or disposed of.
This legislative change is permitted by use of the powers available within Articles 7, 15 and 18 of the assimilated EU regulation on POPs. We have worked with the devolved Administrations on this instrument.
POPs are substances recognised as being particularly dangerous to the health of humans, wildlife and the environment. This instrument preserves and adds to the current regime for managing, restricting or eliminating POPs in the UK. Some of the regulations in this amending instrument are needed to implement the UK’s commitments under the United Nations Stockholm convention on POPs. The majority of amendments are informed by updates to the Stockholm convention and, in some cases, following updates made to the Basel Convention guidance on the management of POPs waste, and following consultation.
Let me turn now to the detail of the instrument. At the 11th meeting of the conference of the parties held last year, a decision was adopted to add three new substances called UV-328, dechlorane plus and methoxychlor to the list of substances for global elimination under the convention. This decision was communicated to parties by the UN depository in February 2024. This instrument adds these new POPs to the list of substances that are prohibited by law from being manufactured, placed on the market and used in GB.
Secondly, the instrument provides some exemptions from the prohibitions by allowing the unintentional presence of these three substances at trace levels. These limits define the concentrations at which UV-328, dechlorane plus and methoxychlor can lawfully be found in a substance, article or mixture where they are unintentionally present and found in minimal amounts. Dechlorane plus and UV-328 will also be listed alongside time-limited exemptions for their continued use in specific circumstances. These exemptions are available following agreement by the conference of the parties to the Stockholm convention.
This instrument will make a number of further changes to Annexe 1 of the POPs regulation, including the addition of a UTC level for two POPs that are already prohibited in GB. It will also make amendments to the UTC limits and specific exemptions listed for the substance PFOA, including a provision to phase out or remove exemptions which are no longer required, and tighten the requirements regarding a specific exemption for use of PFOA in PTFE micropowders.
Annexes 4 and 5 of the POPs regulation relate to the treatment of waste containing POPs. This instrument will add or update waste concentration limits for several POPs. In practice, these limits specify the concentration at which waste containing POPs must be diverted from landfill to high-temperature incineration or other appropriate disposal to ensure that the POPs content is appropriately destroyed. Importantly, this includes the introduction of a limit specifically targeted at firefighting foam mixtures containing PFOA, a substance in the PFAS group of chemicals, to ensure environmentally sound disposal of any remaining stockpiles of these foams.
This instrument will update the maximum concentration limits for a number of POPs and add decaBDE, a brominated flame retardant, to the list of PPDEs in annexe 5 of the POPs regulation. Maximum concentration limits set the threshold at which waste handlers can apply to permanently store certain wastes in designated landfill for hazardous waste or salt mines, where it can be demonstrated that destruction is not the environmentally preferred option. The instrument will also add two new European Waste Catalogue codes to the provision: one for fly ash from peat and untreated wood, and one for soil and stones.
Policy development informing this instrument was subject to a public consultation in 2023. In the public consultation, we also stated our intention to prohibit the three new substances once they were adopted for listing under the convention, to implement our international obligations. There have been various opportunities at both domestic and convention level for UK stakeholders to submit information regarding the potential prohibition of UV-328, dechlorane plus and methoxychlor, and their potential adoption for global elimination under the Stockholm convention.
A de minimis impact assessment was carried out. This concluded that there is no indication that the amendments in the instrument are expected to have an impact on businesses, beyond one-off familiarisation costs, and that this instrument is not expected to disproportionately burden small businesses.
The Environment Agency is the delivery body for the POPs regulation for England, and Natural Resources Wales and the Scottish Environment Protection Agency are the delivery bodies for Wales and Scotland respectively. They have been involved in the development of this instrument and have no concerns in relation to implementation or resources.
The territorial extent and application of this instrument is Great Britain. Under the Windsor Framework, the EU POPs regulation applies in Northern Ireland. The devolved Administrations in Wales and Scotland were engaged in the development of the instrument and have consented to it being made on a GB-wide basis.
In conclusion, I emphasise that the measures in this instrument are needed, in part, to implement requirements of the Stockholm convention by adding new POPs UV-328, dechlorane plus and methoxychlor to the list of substances that are prohibited in GB by law. Other amendments included in this instrument ensure that the POPs regulation is adapted to scientific and technical progress in our understanding and treatment of POPs. The draft regulations will allow the UK to implement the Stockholm convention requirements to prohibit, eliminate or restrict the production and use of POPs.
I hope noble Lords will support these measures and their objectives, and I commend the draft regulations to the House.
My Lords, I thank the Minister for her introduction. I understand why the changes to these regulations have been brought forward, in order to take account of changes to scientific and technical progress, and to stay in line with amendments to the Stockholm Convention on Persistent Organic Pollutants. The UK is a party to this critical convention, and it is important that we ensure that the country and the public as a whole are protected from toxic substances.
The four qualifications for substances being classed as a POP are that they are persistent, toxic, bioaccumulative and subject to long-range environmental transport. This SI makes amendments to the lists of substances in annexe A of the convention. The SI lists these substances as UV 328, dechlorane plus and methoxychlor. The instrument also lists unintentional trace contaminant UTC limits for those substances, and adds two new POPs to this category which are already prohibited under the ordinary POPs regulations: hexachlorobenzene and pentachlorophenol. There are other substances named which are covered by the SI, but I readily admit that, not being a chemist or a scientist, some of the detail is outside my experience.
Paragraph 5.8 of the Explanatory Memorandum refers to certain POP waste being permanently stored in designated hazardous waste landfill or salt mines when destruction is not the environmentally preferred option, as the Minister referred to. I assume that the salt mines referred to will be depleted and never brought back into use. Can she provide reassurance on this matter?
The SI also expands the scope for three offences under the POP regulations of 2007, but neither the Explanatory Memorandum nor the SI says what the penalties for the offences are. Can the Minister provide clarification on this?
An eight-week public consultation took place from 3 March to 23 April 2023. There were 58 responses. Of those, 14—24%—were from industry associations, 16% were from large businesses of 250 or more employees, 16% were from local authorities, 9% from charities, 5% from small and micro-businesses of less than 50 employees, 3% from medium businesses of 50 to 249 employees, 2% from NGOs, 2% from a government body and 2% from a consultancy. There was also 9% from “other”. I wonder who the “other” were, as the website did not say. This is a very wide range of responses on quite a specialist area. The consultation response and the Government’s responses are very detailed and are on the website. I am therefore satisfied that those who will have to implement these regulations know what is likely to happen.
The regulations come into force 21 days after the day on which they are made, which I imagine will be one day next week. Can the Minister confirm this? This is a very specialist subject, but it is important that toxic substances receive adequate regulation. I believe the SI does this and I am happy to support it.
My Lords, I also thank the Minister for bringing these regulations to the Committee and for opening this debate. We wholeheartedly support the Government in their work to build on our strong track record of tackling pollution and effectively managing substances that are persistent pollutants.
These regulations amend EU regulation 2019/1021 of the European Parliament and Council on persistent organic pollutants to alter the rules for the management of certain substances under the persistent pollutant regime. It is important that the Government have the right rules in place for the management of substances that can pollute our environment over many years because they break down slowly. We welcome these regulations.
What assessment have the Government made of our pollutant regulation regime since they took office? Can the Minister confirm whether they have identified any areas of pollution where Ministers intend to change our existing regime or whether they feel that it is currently satisfactory? Can she give some idea of current trace levels of these persistent pollutants and how they compare with the limits in this instrument? Further to that, can she reassure this Committee that these new limits will ensure that none of these pollutants can be intentionally introduced in manufacturing, except for the specified products?
The Minister set out exemptions for the use of these chemicals. Can she explain why these exemptions are necessary given the awful long-term consequences of allowing any production of these chemicals and compounds? Finally, what steps are the Government taking to monitor the levels of “forever chemicals” in our environment to ensure that these levels are within a safe range?