Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2024

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 20th January 2025 Grand Committee

[Lord Hayward (Con)]

It is important to small businesses and, because we are talking about companies that operate worldwide, both producers and retailers. How closely will our system meet that of the other countries that the Minister identified? I am aware that there are negotiations in other parts of Europe on some form of return system; it would clearly be better for all concerned if there is either a common or a virtually common system. That is particularly the case for Northern Ireland versus Eire, as many of the products will move from one side of the border to the other.

My concerns are about why glass is excluded, the international basis of the operation and its similarity with others, and small businesses that will carry a burden in one form or another. Given the experiences that I witnessed in my previous role for many years—I should add that I later went on to become head of the British Soft Drinks Association, and therefore saw operations not only from Coca-Cola’s side but for waters and fruit juices—it is important that this works across the whole country. I recognise and expect that the returns will operate much better in some places than in others.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for her introduction to this statutory instrument. It is vital to ensure that, as a country, we reduce our waste and engage the consumer fully in the process. As the Explanatory Memorandum clearly states, the power to introduce a DRS was enshrined in the Environment Act 2021, nearly four years ago, but the issue was being debated as early as 2019, with Defra running two public consultations. The first gave 84% support from those participating; the second, 83%, so why has it taken so long to get to this position? I do not wish to be impolite to the Minister, as she has been in post for only a short time, but it has to be said that there was a lot of pratting about by the previous Government. This is, of course, a technical term.

The scheme is to be run by a direct management organisation—a DMO—and this will take another two and a half years to get up and running, so will not start until October 2027. They say that Rome was not built in a day, but I despair at the leisurely timeframe. Meanwhile, the country is knee-deep in waste.

I welcome the application of civil penalties to drinks producers that do not comply, but it would make a big difference if civil penalties were applied to individual consumers who carelessly discard their drinks containers around the countryside. I am not convinced that the carrot of a returned deposit will alone change behaviour; there needs to be a stick element as well.

Despite a not-for-profit DMO being set up to administer the scheme, local authority trading standards departments will be involved in monitoring and enforcement, along with the Environment Agency. As the Minister knows, local authorities are underfunded, with social care swallowing their budgets at an alarming rate. Do the Government intend to produce additional funding for local authorities trading standards to carry out this not inconsiderable extra work?

Despite the Explanatory Memorandum referring to the instrument enacting the “polluter pays” principle from the Environment Act, I can hardly be excited about the fact that it has taken so long to reach this point, as 2021 has disappeared over the horizon. The first Defra consultation was in February 2019, six years ago. That first consultation response was published within four months. The next consultation in March 2021 was not published until January 2023, nearly 18 months after it closed. The responses showed that 83% of respondents were in favour of a DRS. Was Defra waiting for a 100% response before it acted?

Foot and Mouth Disease

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 16th January 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

The noble Lord is right when he says that the mounds of burning carcasses tormented our country. I do not think any of us who were around at the time will ever forget that. He asks about lessons learned. In addition to regularly exercising our disease response capabilities, lessons identified reviews are undertaken at the end of any outbreak in order to identify and evaluate where improvements to disease response capability processes and organisational structures for managing an outbreak of exotic notifiable disease can be made. This is something we always do.

Following both the 2001 and 2007 foot and mouth outbreaks, extensive inquiries and reviews were undertaken. That led to some critical changes coming in, including, for example, the introduction of a ban on swill feeding, standstill periods for cattle, sheep and goats of six days and 20 days for pigs, and improvements in livestock traceability. These were all implemented in response to the recommendations of those lessons identified reviews and they are critical in order to prevent infection—in the case of swill feeding bans, for example—because we need to minimise any implications of the disease coming to this country again.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the last time we had a countrywide outbreak of foot and mouth, it was devastating to both the farming community and the rural economy, as tourism-dependent businesses were badly hit. I commend the Government for their swift action to prevent German meat products entering the country. Biosecurity is vital for the protection of farmers and to maintain public health standards. A veterinary and phytosanitary agreement with the EU is essential. Do the Government have a timetable for signing such an agreement?

[Baroness Hayman of Ullock (Lab)]

I cannot provide the noble Baroness with any specific dates on those agreements at present. All I can say to her at this stage is that it is very much a government priority and we are working closely with the EU to make progress as best we can.

Free-Range Egg Marketing Standards (Amendment) (England) Regulations 2024

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 13th January 2025 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

My Lords, these regulations were laid before the House on 21 November 2024. This instrument has been laid to amend existing legislation governing egg marketing standards to enable free-range eggs to be marketed as such for the duration of mandatory housing measures, which restrict the access of laying hens to open-air runs.

Currently, when free-range hens are placed under mandatory housing measures due to disease outbreaks such as avian influenza, the egg marketing regulations allow their eggs to continue to be labelled as free-range for 16 weeks only; this is known as the 16-week derogation period. If the mandatory housing measure lasts for longer than 16 weeks, eggs from those hens must be labelled and sold as barn eggs. The requirement for egg producers and packers to relabel free-range eggs as barn eggs once the 16-week derogation period is exceeded is difficult to implement in modern automated packhouses. This adds significant logistical and packing costs to the industry.

This SI aims to remove the 16-week derogation period so that free-range egg producers and packers can label and market eggs as free-range for the duration of a mandatory housing measure, however long that may last. During mandatory housing measures, egg producers still have the higher operating costs of maintaining their free-range egg system, with the additional cost of having to ensure that hens are also temporarily housed indoors. The normal laying period of a productive free-range laying hen in the UK is around 90 weeks. This SI will remove the derogation, which affects only a small part of a laying hen’s productive life, with all the other free-range criteria still needing to be met—except access to open-air runs.

In 2024, Defra held a joint consultation on these proposed changes with the Scottish Government. Some 70% of respondents supported the removal of the derogation. The removal of the 16-week derogation period has already come into force in Scotland. Following their own consultation exercise, the Welsh Government have also announced that they will introduce legislation to remove the derogation.

In 2023, the EU amended its egg marketing standards regulations to remove the 16-week derogation period, which, through the Windsor Framework, applies also to free-range eggs produced in Northern Ireland. Without this SI, the introduction of any mandatory housing measures that last longer than 16 weeks—during, for example, an avian influenza outbreak—could be detrimental for English free-range egg producers and result in an increase in free-range eggs being imported from the EU and Northern Ireland. This could have a significant negative long-term impact on the English free-range egg industry. This SI restores alignment with the EU and Northern Ireland.

It will also ensure that free-range egg producers and packers do not incur additional costs for adhering to government-imposed housing requirements. Outbreaks of avian influenza usually occur during the winter months—as was the case in 2021-22 and 2022-23, resulting in the introduction of housing measures for poultry that, in both cases, lasted longer than the 16-week labelling derogation period: for an additional six weeks in 2021-22, and for an additional seven weeks in 2022-23. So it is imperative that this SI is in place for the rest of the winter period and beyond.

We continue to uphold the high standards expected by UK consumers and businesses. The change contained in this statutory instrument will safeguard our Great British egg industry. I beg to move.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for her introduction to this fairly straightforward SI, which allows, during an outbreak of avian flu, for poultry that are normally free-range with access to open-air runs to be kept in barns for an additional period of time. The current derogation’s continuous limit of time during which birds can be kept in barns and still be labelled as free-range is 16 weeks, as the Minister said. During the avian flu outbreak in 2021-22, the period was extended from 16 weeks to 22 weeks. During the 2022-23 outbreak, it was again extended—on this occasion, to 23 weeks.

The UK is 90% self-sufficient in egg production. As markets for eggs need to be strictly in alignment with the EU’s for the purposes of trade, it is important that UK regulations closely match those in operation in the EU. As 94% of UK egg exports go to the EU, it is important that our egg producers are not at a disadvantage during outbreaks of avian flu. Removing the 16-week derogation limit will ensure that UK producers have parity with the EU; I fully support this move.

However, as the UK seems to be affected by avian flu on a fairly regular basis during the winter months, I wonder whether there is likely to be a maximum number of weeks when birds need to be kept in barns and still be labelled as free-range. Six or seven weeks is a short period by which to extend the derogation but the effect of increasing the derogation, as happened in 2022 and 2023, meant that it was for nearly 50% of the year. Can the Minister give reassurance that this derogation will not be extended any further? I note that she said that the Government will extend it for “however long” is necessary. It is difficult to see how the consumer is likely to be persuaded that eggs that have been barn raised for30 weeks of the year, say, can still be labelled as free-range. As we all know, free-range eggs attract a premium on the price the consumer pays.

I turn briefly to the subject of the consultation that took place between 9 January and 5 March 2024. Eighty egg producers, 20 egg packers and 49 members of the public responded. The response from the public is amazingly small, which raises questions. How was the consultation conducted? Where was it advertised? Given that consumers are very exercised about the conditions in which poultry are kept, and that many choose free-range eggs over barn eggs because they believe the birds have a better quality of life in the open air, I am surprised that more did not respond to the consultation. Perhaps the Minister can give details of how engagement with the public on the consultation was conducted.

Despite that query and concern about the derogation limit being extended to beyond 50% of the year, I support the SI but feel that avian flu is not going away, and egg producers need a way of dealing with the effects that it has on their business, as well as consumers needing reassurance that they are getting what they pay for in buying free-range eggs.

Water Bills

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 9th January 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My noble friend makes some extremely important points. Citizens Advice does an important service in supporting vulnerable people. Water companies should work with all charities, such as Citizens Advice, in order to support vulnerable consumers. It is important that we simplify the processes so that customers who need extra assistance can get it. Citizens Advice is an important part of that and helps customers get advice on benefits and managing debt, particularly customers who have not been in financial difficulty before. My noble friend makes some very good points.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the expected rise in water bills to ensure future investment in infrastructure, so deliberately disregarded in the past by water companies, will fall heavily upon small businesses that use water and farmers, for whom water is essential for rearing livestock and growing crops. Is the Minister talking to her Treasury colleagues about how to help this vital element of our economy with this burden, which will affect small businesses’ and farmers’ profitability?

[Baroness Hayman of Ullock (Lab)]

I assure the noble Baroness that Defra is regularly in contact with the Treasury about all issues such as this, particularly about how to support people going forward. Many of the challenges farmers in particular face—my colleague is at the Oxford Farming Conference today talking to farmers—are to do with long-term security and the ability to bring in long-term investment. Water affordability is an important part of that.

Avian Flu: Turkeys in Norfolk

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 12th December 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Obviously, 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.

[Baroness Bakewell of Hardington Mandeville (LD)]

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?

[Baroness Hayman of Ullock (Lab)]

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.

Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 28th November 2024 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My 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.

[Baroness Bakewell of Hardington Mandeville (LD)]

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?

Storm Bert

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 26th November 2024 Lords Chamber

[Lord Roborough (Con)]

My 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?

[Baroness Bakewell of Hardington Mandeville (LD)]

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.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

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.

Water (Special Measures) Bill [HL]

Baroness Bakewell of Hardington Mandeville Excerpts

3rd reading
Tuesday 26th November 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My 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.

[Baroness Bakewell of Hardington Mandeville (LD)]

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.

[Lord Roborough (Con)]

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.

Solar Farms and Food Production

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 26th November 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

As 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.

[Baroness Bakewell of Hardington Mandeville (LD)]

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?

[Baroness Hayman of Ullock (Lab)]

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.

Water Bills

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 21st November 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

As 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.

[Baroness Bakewell of Hardington Mandeville (LD)]

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?

[Baroness Hayman of Ullock (Lab)]

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.