Water and Sewage Companies: Directors’ Remuneration

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 22nd February 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I congratulate the noble Lord, Lord Sikka, on his excellent introduction to this extremely important subject. England’s water system is at breaking point. Water companies are responsible for one of the worst environmental crises in the UK: the illegal dumping of sewage into rivers, lakes and coastlines through storm overflows.

The scale of the sewage crisis afflicting our rivers and coastal waters is staggering to comprehend. In 2021, the water companies were responsible for 368,966 spills, during which raw sewage and untreated wastewater were pumped into aquatic environments for a total of 2,650,290 hours. The noble Viscount, Lord Stansgate, has given some excellent statistics on this.

England is home to 85% of the earth’s chalk streams—rare and precious habitats that the Government and water companies should recognise that they have a particular duty to protect, instead of allowing them to be devastated by raw sewage overflows. If my colleague Lord Chidgey were still with us, he would have something to say about this.

The Conservatives have done nothing to stop water companies polluting our rivers with sewage. They have consistently voted against tougher action to stop illegal sewage overflows, while the water regulator, Ofwat, has said that only six of the 11 sewerage companies met their sewage overflow targets. This is unacceptable.

Of the 827 illegal dumps of sewage in 2021 and 2022, only 16 resulted in prosecution. This means that this Government have effectively decriminalised the dumping of sewage in our rivers, lakes and coastal waterways. It is sadly now true that it is cheaper for water companies to pay the fine for this illegal activity than for them to invest in the infrastructure to future-proof and clean up our waterways. The cost of fines is written into their business plans.

Since privatisation, £65.9 billion has been paid out in water company dividends. There was a 20% increase in executive pay last year, and Britain’s privatised water and sewerage companies paid £1.4 billion in dividends in 2022, up from £540 million the previous year. This was despite rising household bills and a wave of public outcry over sewage leaks.

This has gone on long enough. Water companies must be brought to account for their actions. The Government must ensure that water companies invest their profits now, not by 2050. That is too far away. We need to ensure that the water in our lakes, rivers and seas is not filled with sewage. Discharging raw sewage is a risk to environmental health, public health, animal welfare and our economy. It should not continue.

British people are fed up with their beaches being closed due to sewage while water company executives are making millions and holidaying abroad. The Liberal Democrats continue to call for the Government to instigate a sewage tax. This would be a 16% tax on pre-tax profits, providing a £340 million fund to clear up the rivers that have been damaged and to fix the sewerage system. This would be in addition to the current 19% rate of corporation tax.

With only 14% of English rivers in a good ecological state, reforming water and sewerage companies is essential. We on these Benches support a public benefit company model for water companies, so that particular economic and environmental policy objectives must be considered explicitly in the running of the companies. While sewage is pumped into our waterways and our water infrastructure is leaky and outdated, water firms are handing out large profits to overseas investors and bonuses to their CEOs. The British taxpayer deserves better.

It is time for water company reform. Ofwat and the water companies should set minimum criteria for the value, scope and eligibility criteria for social tariff schemes across the country. Water companies should put a share of their own profits into social tariffs. They should be encouraged to work more collaboratively to raise awareness of priority services, as well as being more proactive in identifying customers in need of temporary support.

This is an emotive subject, but one that has to be tackled. I look forward to the Minister’s positive response.

Animal Welfare (Livestock Exports) Bill

Baroness Bakewell of Hardington Mandeville Excerpts

2nd reading
Wednesday 21st February 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the Minister has set out clearly the purposes and remit of the Bill, and we have heard very interesting contributions from across the House. I support the Bill and the contributions that have been made. These measures were in the Conservative manifesto, and the Government are keen to get the Bill in statute. Before they go to the electorate again, they want to be able to say, “We delivered on our manifesto”.

Sadly, this is not exactly the case. Before I go on to deal with what the Bill includes, I will mention those issues which it does not: banning puppy smuggling, amending the Zoo Licensing Act 1981, banning the keeping of primates as pets, and protecting sheep from dangerous dogs.

When the Government abandoned the kept animals Bill, they were relying on a number of Private Members’ Bills and smaller government Bills to fill the gaps. Some Private Members’ Bills were successful. The banning of glue traps was one example, thanks to the intrepid noble Baroness, Lady Fookes. Others, such as banning the import of hunting trophies, were not.

However, we are today debating the Animal Welfare (Livestock Export) Bill. We have heard from many who, quite rightly, are passionate about animal welfare—the noble Baronesses, Lady Fookes and Lady Hodgson of Abinger, and the noble Lord, Lord Trees, are such. I am grateful for the briefings I have received from the NFU, the RSPCA, Wildlife and Countryside Link, Compassion in World Farming, and the House of Lords Library.

As has been said, the Bill prohibits the export of cattle, sheep, goats, pigs and equines for slaughter or fattening for subsequent slaughter. No animals have been transported for those purposes since December 2020, which is due entirely to Brexit and there no longer being any suitable border control posts in French or Belgian ports to receive the live exports. However, there is nothing to stop suitable border control posts being set up specifically for that purpose in future. It is therefore essential that UK law is changed now to prevent the export of live animals for slaughter or fattening before slaughter.

The ban does not apply to live animal movements for breeding and competition purposes, provided that adequate safeguards are in place to protect the animal’s health and well-being during transportation. That provides much-needed reassurance to the owner of equines and other breeding stock. Day-old chicks are exempt from the provisions of the Bill, as we have already heard.

In September 2021, the Environment, Food and Rural Affairs Committee in the other place published a report that welcomed the proposed legislative ban included in the Bill. That was over two years ago—although nothing as long as the noble Baroness, Lady Fookes, has been waiting. This issue is taking far too long time to get into statute. Let us hope that we can speed up the process.

There is an issue around the number and distribution of abattoirs, as the noble Lord, Lord Trees, and others referred to. In the past, there were abattoirs in easy reach of farmers; however, that is no longer the case and farmers are taking their animals further and further to slaughter. That is good for neither the animals nor the farmers, who are spending so much time away from their farms. I recently met a colleague whom I had not seen for some considerable time, and asked how she was doing. She said that she had given up her farming, as she was having to transport her stock over 200 miles for slaughter. She felt that that was not good for her animals and the cost made it uneconomic to continue. The noble Lord, Lord Carrington, also referred to the journey times to abattoirs. I understand that the Government are making £4 million available in the form of grants to support smaller abattoirs to improve, but also needed are more accessible abattoirs, so that farmers do not have to travel so far. Are the Government planning to increase the number of abattoirs, particularly in rural areas? The noble Baroness, Lady Hodgson, also raised that issue.

The majority of the comments that I have received have been overwhelmingly in favour of the Bill. However, the NFU has expressed concern that no impact assessments were provided with the proposals. The impact assessment that was provided had been produced for the kept animals Bill, which was subsequently abandoned. That IA indicated that a loss of around £5.2 million over a 10-year period would be suffered, mainly by sheep exporters; the noble Lord, Lord Carrington, referred to sheep farmers. That is a significant sum for a section of the farming community that is generally not affluent.

The NFU is concerned that British farmers will be undercut by imports that do not meet the same high animal welfare standards that exist here. The NFU is calling for the establishment of core production standards that apply to agri-food imports. That would assist in providing a level playing field for British farmers. I fully support the NFU on that and agree with the right reverend Prelate the Bishop of St Edmundsbury and Ipswich. The British Veterinary Association and the Farmers’ Union of Wales also support the call for British livestock farmers not to be undercut by trade deals that do not meet equivalent animal welfare standards. Can the Minister give reassurance on that issue?

The Bill does not ban the import of live animals for slaughter, as the noble Baroness, Lady McIntosh, referred to. In July last year, the noble Lord, Lord Benyon, stated that,

“from 2019 to 2021, only 91 cattle and 14 sheep were imported for slaughter from the mainland EU”.—[Official Report, 10/7/23; col. 1512.]

Can the Minister give an update on that figure and say how many animals are currently imported for slaughter, if any?

The Bill does not apply to Northern Ireland, and we have heard from some of those directly affected by that this afternoon—the noble Lord, Lord Dodds, and the noble Baronesses, Lady Hoey and Lady Ritchie. However, the movement of live animals covered by the Bill is still allowed throughout the island of Ireland, as Northern Ireland is treated as part of the EU, which we have already heard eloquently explained. The movement of animals within the UK, the Channel Islands and the Isle of Man is still allowed. However, all live ruminants from Great Britain are currently banned from entering Northern Ireland due to a case of bluetongue virus in Kent. Is this ban likely to be lifted any time soon?

Compassion in World Farming says that in 2019-20, animals were transported to designations in Bulgaria and Hungary via Northern Ireland. Even when exports were destined for the Republic of Ireland, there was no way of knowing what the final destination would be, as Eire has a large live export trade to the EU and the Middle East. However, once the Bill becomes law, this trade will end and the risk to animal welfare will cease from GB.

The Northern Ireland livestock market is affected by live animal exports restrictions, as in 2020 this trade was worth £938 million—that is, 31% of Northern Ireland total exports to Ireland. The NFU believes that the live trade is essential to stimulate competition for livestock and to ensure that farmers have access to the best paying markets—the noble Baroness, Lady Ritchie, also referred to this. The RSPCA believes that the wording of the Bill is compatible with WTO rules and meets the conditions of the EU-UK Trade and Cooperation Agreement and the Northern Ireland protocol.

This is a fairly short, uncomplicated Bill. It aims to prevent animals being shipped overseas for fattening and slaughter, a process which causes distress as the animals are often kept in restricted conditions and have limited access to food and water. We have heard many examples this afternoon describing the suffering of the animals as a result. It seems that all contributors to this debate are in agreement. As a nation of animal lovers, the public are fully on board with the aim of the Bill and want it passed quickly. The Bill is not completely perfect but I urge all present to support it unamended to hasten its passage.

Environment Agency: Flood Defence Expenditure

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 20th February 2024 Lords Chamber

[Lord Douglas-Miller (Con)]

The Government continue to invest in flood and coastal defence maintenance, with an extra £22 million per year for the current spending review period. Furthermore, £25 million from the capital programme has been reallocated to maintenance this year. In 2022-23, the Environment Agency spent more than £200 million maintaining flood risk assets across the country. Across the country we have about 90,000 flood risk assets which are checked annually by the Environment Agency.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, internal drainage boards provide essential services to areas that are habitually flooded. Currently, they are funded through district council tax. This is already stretching budgets, as IDB levies were increased by 18% last year. The Government have provided £3 million on a short-term basis. A more secure long-term solution is needed. Can the Minister say when this will be forthcoming?

[Lord Douglas-Miller (Con)]

Just today at the NFU conference, the Prime Minister announced new funding packages available to drainage boards across the country.

Water Industry (Special Administration) Regulations 2024

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 19th February 2024 Grand Committee

With those few remarks, I support the instruments before us this afternoon.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for his introduction to these two SIs, which make provision for the continuation of water supply to households should a water company be teetering on the verge of insolvency. I welcome this move to protect householders and businesses if that happens.

A special administration regime—SAR—allows the Government to prepare for all eventualities to ensure uninterrupted provision of this vital public sector service. Each service SAR is unique. Those governing the water industry—the WISAR—are distinct and come into play when a water industry company becomes insolvent. This is obviously a serious matter. I ask the Minister: how many of the country’s water companies are on the verge of bankruptcy? Is it a couple or is the prediction in double figures? Is the number of water companies struggling confined to England or are there similar threats of insolvency in Wales, Scotland, and Northern Ireland?

Paragraph 7.5 of the Explanatory Memorandum indicates that the High Court will appoint a person to manage the affected water company and that this will be on the recommendation of Ofwat or a Defra Minister. I would like an assurance from the Minister that this person will not be someone who has previously been involved in the running of the water company under consideration, nor someone who has been involved in the running of another insolvent water company. This must be someone who is completely independent in every sense of the word.

Apparently, the Flood and Water Management Act 2010 (Commencement No. 10) Order 2024 covers the arrangements for hive down provisions, which the Minister referred to. The Explanatory Memorandum states:

“This will allow otherwise viable water industry companies to enter a special administration, restructure its debts and then exit the SAR as a going concern”.


Not being a legal expert, I searched for the meaning of a hive down. I found this:

“A hive down is the transfer of all or part of the assets or business of a company to a subsidiary—usually a new subsidiary”.


Paragraph 7.6 of the Explanatory Memorandum indicates that this would allow the new subsidiary

“to benefit from potential tax savings”.

The process allows new owners to acquire a “clean” water industry company that has no existing liabilities. This is exactly what the current water companies inherited at the point of acquisition in the 1980s.

I sometimes despair at the way in which we as a country conduct ourselves. It seems to me that a water company facing insolvency would welcome the chance to create a subsidiary company, get rid of its debts—or restructure them, as the Explanatory Memorandum euphemistically calls it—and start again, delivering the same lack of investment and poor repair service. Unless I have missed it, there is nothing in the Explanatory Memorandum that prevents previous CEOs or directors carrying on their inefficient ways from the insolvent water company into the new subsidiary. Can the Minister comment on the likelihood of this happening under the proposals for a hive down?

I understand that the SAR rescue purpose applies only where the special administration was based on economic insolvency grounds, not performance grounds, but I am not sure that that is what the Minister said. Can he give more information on poor performance and not meeting the government-set vital environmental targets and say whether this is also a consideration? Will violation of environmental law constitute a failure to fulfil statutory duty, under the terms of Chapter II of the Water Industry Act? Do the Government commit to applying for a special administration order where a company shows consistent and flagrant breaches of its environmental duties?

Paragraph 7.12 gives a lot of detail about the process with a list of modification orders. These modifications indicate that only the Secretary of State or a Welsh Minister can make an application for a water industry company to go into administration. It further states that the interests of the customer should always be considered. I would have assumed it would be a given that the customer would always be the first to be considered.

There is also a section in the EM, at Paragraph 7.18, indicating that the appointed special administrator’s conduct may be challenged by the relevant Minister or Ofwat. Can the Minister give an example of what kind of conduct might qualify for a challenge by the Minister or Ofwat?

There is reference in paragraph 7.21 of the EM to paragraph 91 and the power of the sponsors to apply to the court for the replacement of the special administrator. Since it is necessary to put this information in the EM, this would indicate that it is not a one-off occurrence and is something that has happened in the past. Would the Minister care to comment?

The changes that the Government are proposing will also enhance the ability of special administrators to dispose of fixed-charge property without the consent of the charge holder. In this case, the fixed-charge holder receives only “appropriate value” rather than the standard test of “market value”. Can the Minister say whether this will lead to an increase in valuation disputes in challenges to the administration of sales of water company fixed-charge assets?

There has, as usual, been no guidance to accompany this instrument and no impact assessment. The reason given for no impact assessment is that the impact is alleged to be minimal, with the net present value of the SI over a 10-year evaluation period likely to be less than £55,000. Is this £55,000 a one-off or annually? If the latter, that is more than half a million pounds. Can the Minister say whether this figure includes the bankruptcy costs? If the debt is to be restructured so that the new water company can continue debt free, there will surely be some impact on the creditors of the water company at the point of insolvency. Can the Minister comment?

I understand that if a water company is about to be insolvent, something has to be done to allow water and sewage services to be provided on a continual basis to domestic householders and businesses, some of whom use vast quantities of water every day. However, I remain concerned about this process. It seems to me that those who had been running the previous, now insolvent, water company can simply transfer to running the wholly-owned subsidiary which will be set up under the WISAR. I also remain concerned that the SI makes no reference to the sewage crisis. The noble Baroness, Lady McIntosh, referred to that. Can the Minister confirm that the special administrator will be able to discharge environmental duties as well as financial duties?

I realise that I have asked a number of questions, but I hope that the Minister will be able to answer them. The Liberal Democrat policy is to reform water companies into public benefit companies. While this may not solve all the problems of the ailing water industry, it would certainly bring a great deal more transparency to the issues. I am looking forward to the Minister giving considerable reassurance on this extraordinarily complex matter.

[Baroness Hayman of Ullock (Lab)]

My Lords, I start by thanking the Minister for his thorough introduction to these two SIs. As he said, the first one updates the special administration regime for water industry companies, looking at general insolvency issues. We welcome that; it needs to be looked at and sorted out.

The second SI is pretty technical. It allows part or all of a water company’s undertaking to be transferred to a wholly owned subsidiary, as we have heard, and for securities to be passed over to another water company. The noble Baroness, Lady Bakewell of Hardington Mandeville, talked about this to some extent, so I will not go into detail, but I stress the importance of minimising costs to the taxpayer if and when the companies need extra support, even if that is temporary.

We support these regulations because they give more security to people’s water provision. Clearly, it is essential that customers have a continuous provision of water services, irrespective of how the water company is performing. Water is needed for life, so this is important. However, I am sure that the Minister is extremely aware that further challenges face the water sector at present. Some pretty fundamental issues need to be tackled that clearly go beyond the SIs in front of us.

The fact that these legislative changes are necessary reflects the serious situation in which many water companies are not just failing to protect the environment but struggling financially. The noble Baroness, Lady Bakewell of Hardington Mandeville, asked about the number of water companies that are facing such problems. Of course, Thames Water is the one that has been in the media recently and there have been serious concerns about its solvency, but I also understand that Thames Water, Southern Water and South East Water have been using up to 25% of customer bills to service the huge debts that they have built up. Clearly, the customer should not be picking them up.

The noble Baroness, Lady McIntosh of Pickering, talked about the impact on consumers, picking up on paragraph 7.6 of the Explanatory Memorandum. I underlined the bit that she referred to specifically to ask the same questions that she did, so I would be grateful for a clear answer about that and the impact on consumers in this area, for example.

It is important that we have a radical rethink of how the water sector, regulators and Government all work together to ensure stability. I am sure the Minister would agree with me on this, but it would be good to get confirmation that the Government are looking more broadly at stability issues for water companies.

We know that the special administration order is intended to ensure that water services are not interrupted when a water company becomes unviable. The noble Baroness, Lady Bakewell of Hardington Mandeville, talked about environmental duties and impacts which could be interrupted when a company becomes insolvent. I am particularly concerned about that. When this was discussed in the other place, the Minister was asked whether

“the new regulations … guarantee that any special administrator will continue to discharge a company’s environmental obligations, including investment commitments under the water industry national environment programme, catchment plans and infrastructure upgrades”.

I remind the noble Lord of the Minister’s response during that debate. He said:

“Every water company is specifically regulated by the Environment Agency, as well as Ofwat. The Environment Agency will have powers if water companies are owned and operating under the regime they operate under now, or should they enter special administration”.—[Official Report, Commons, Fourth Delegated Legislation Committee, 6/2/24; cols. 5-9.]


I am not sure whether that answers the question, particularly asked by the noble Baroness, Lady Bakewell, about what those environmental obligations and duties would be if it is interrupted. You may potentially have a gap; how can we ensure that it is managed smoothly if it has been transferred across and who, outside the Environment Agency, is responsible for that? Someone has to report that to the Environment Agency and it has to go through that due process, but where does that environmental obligation sit during an insolvency, potentially with a move to a subsidiary? It may well be that the Environment Agency takes it away and manages that separately, but these things are normally done with Ofwat and all the water companies together. I just want clarity around that. In talking about clarity, I hope that I have made myself clear.

Food Import Requirements

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 14th February 2024 Lords Chamber

[Lord Douglas-Miller (Con)]

I thank my noble friend for his question. The Government take the issue of food security extremely seriously, and we are absolutely committed to producing high-quality British food for British consumers. Getting the balance right between what we produce through our SFI programme—or our ELMS programme, I should probably say—is a fine judgment between getting the environmental and biodiversity improvements we all want to see, and producing food for the country.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, with beef and pork exports to the EU down by more than 20%, and the import of apples down 16.8% and oranges down 18.2%, what steps are the Minister and his Defra colleagues taking to ensure that, first, British farmers are not going out of business, and, secondly, supplies of essential foods are protected for the British consumer?

[Lord Douglas-Miller (Con)]

I thank the noble Baroness for her question. As I say, the Government are completely committed to domestic food production. I do not see that the introduction of the BTOM system has any bearing on what we import or export into or out of the UK.

Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) Regulations 2024

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 13th February 2024 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, these regulations were laid in draft before this House on 12 December 2023.

The purpose of this instrument is to make provision to ensure that the United Kingdom, as a member of the International Commission for the Conservation of Atlantic Tunas, henceforth referred to as ICCAT, can continue to meet the full range of its international obligations in relation to the convention which governs ICCAT. The UK has an obligation under the United Nations Convention on the Law of the Sea to co-operate on the management of shared fish stocks, including through appropriate regional or sub-regional organisations. ICCAT is one such example. It is responsible for ensuring that fisheries for tunas and tuna-like species, such as swordfish, in the Atlantic Ocean are managed sustainably. The UK became an independent contracting party to the convention—in other words, a member of ICCAT—on 1 January 2021, after depositing an instrument of accession following EU exit.

As a member of ICCAT, the UK must ensure that we are able to implement and enforce binding measures, known as recommendations, which are agreed by contracting parties under the convention. The UK must ensure that our domestic laws fulfil these international obligations. This instrument updates and amends various regulations of retained EU law to implement recommendations adopted by the commission immediately prior to and since the withdrawal of the UK from the EU. Where appropriate, this instrument also makes amendments to reflect the UK’s status as an independent coastal state.

I will now go through each element of the regulation in turn to briefly explain the amendments being made to retained EU law. Regulation 2 of the instrument removes provisions from Council Regulation 1936/2001, which laid down control measures applicable to fishing for certain stocks of highly migratory fish. It also included provisions that regulated the farming of bluefin tuna. The UK, however, does not farm bluefin tuna. These provisions have therefore been removed as they are not relevant to the UK.

Regulation 3 amends Council Regulation 1984/2003. It now correctly reflects the convention’s requirement for a statistical document to accompany imports of swordfish and bigeye tuna into the UK. Other amendments are made for clarity and to ensure that the amended provisions are enforceable. For example, amendments to the description of fish captured no longer reference the 1984 version of the EU’s combined nomenclature. They are instead replaced with references to the UK commodity codes used in the UK’s customs tariff.

Regulation 4 of this instrument updates Regulation EU 640/2010 to mandate the use of an electronic catch documentation system for bluefin tuna, replacing the use of clerical documents. Further amendments are made to ensure that the new requirements are clear and enforceable, as well as outlining the limited circumstances in which a paper catch document may be used instead of the electronic system.

Regulation 4 also amends the descriptions of fish captured within Regulation EU 640/2010. These descriptions have been updated with references to the commodity codes found in the UK’s customs tariff. This amendment makes the description of fish clear and ensures that the regulation is enforceable.

Regulation 5 removes provisions in Commission Delegated Regulation EU 2015/98, which established derogations from landing obligations in order to fulfil ICCAT requirements. Instead, these provisions are covered in Regulation EU 2016/162. Removing these provisions from Commission Delegated Regulation EU 2015/98 avoids duplication and provides clarity.

Regulation 6 of this instrument amends Regulation EU 2016/1627, which implemented ICCAT’s multiannual recovery plan for bluefin tuna in the eastern Atlantic and the Mediterranean. Since the recovery plan was introduced, I am pleased to say that stocks of bluefin tuna have improved significantly. The recovery plan has now been replaced with a multiannual management plan. Regulation 6 therefore comprehensively amends Regulation EU 2016/1627 to ensure that it correctly reflects the UK’s obligations under ICCAT in relation to the management plan and the UK’s catch quota.

A multiannual recovery plan was also developed for the management of swordfish in the Mediterranean. The EU gave effect to the recovery plan under Regulation EU 2019/1154, which was retained in our domestic legislation at the point of EU exit. However, as these provisions relate to swordfish in the Mediterranean, Regulation 7 of this instrument revokes the substantive provisions of Regulation EU 2019/1154 as they are not relevant to the UK.

Regulation EU 2019/1241 sets technical measures for the conservation of fisheries resources and the protection of marine ecosystems. Regulation 8 of this instrument amends Regulation EU 2019/1241 to insert minimum conservation reference sizes for bluefin tuna specified under the convention. By making this amendment, all minimum conservation reference sizes will be specified within one regulation rather than contained in different pieces of retained EU law, ensuring clarity within our domestic legislation.

In addition to amending retained EU law, Regulation 9 of this instrument amends the Common Fisheries Policy and Aquaculture Regulations 2019 to remove references to obsolete legislation. Specifically, amendments have been made to remove provisions relating to retained EU law; they have been removed and replaced with Regulation EU 2017/2107, which lays down management conservation and control measures within the conservation area of ICCAT.

The devolved Administrations are supportive of the amendments made in this instrument, ensuring that the UK can continue to meet in full its obligations as an independent contracting party to the ICCAT convention. If this instrument is not passed, the UK will not only fail to meet its international obligations under the convention; by not implementing enforceable management and traceability systems, we risk undermining efforts made over the past 17 years to ensure the sustainable management of Atlantic bluefin tuna stocks.

I hope that I have reassured all noble Lords on the purposes and aims of this statutory instrument, ensuring the continued sustainable management of this important fishery. For the reasons I have set out, I commend the regulations to the Committee. I thank noble Lords for their attention and remain at their disposal for any questions or discussion on this matter.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister for his introduction to this statutory instrument, which covers the International Convention for the Conservation of Atlantic Tunas, known as the convention.

While a member of the EU, the UK had no quota for tuna and tuna-like species. However, following Brexit, we are entitled to a quota as tuna stocks have apparently improved. The SI makes changes to retained EU law in eight previous sets of regulations, including the Common Fisheries Policy and Aquaculture (Amendment etc.) (EU Exit) Regulations 2019. That is quite a lot of change and I am grateful to the Minister for going through each of the eight sets of regulations.

Paragraph 7.2 of this instrument’s Explanatory Memorandum explains how the UK has acquired a quota for bluefin tuna

“as an independent contracting party … in line with the UK-EU Trade and Cooperation Agreement”.

From hereon in I shall refer to “BFT” because, as noble Lords can hear, I am getting tongue-tied in saying “bluefin tuna”. Despite not stating what the quota is, the EM indicates how the requirements will apply to UK fishing vessels catching BFT in the convention area; this includes the

“offence, penalty, and enforcement provisions”,

which

“have been added directly to relevant retained EU law to avoid … ambiguity as to whether existing enforcement provisions would apply to the newly amended provisions”.

A read through the government website’s guidance gives information about the size and length of the vessels, as well as the bait, to be used for catching BFT. It also gives detailed information about how such catch can and cannot be landed, including returning undersized live tuna to the sea, recording all catch and keeping on board dead catch for which there is no authorisation for landing.

However, it is not exactly crystal-clear. According to the government website, but not the EM, the BFT quota allocated in 2023 was 65 tonnes—an increase on the quotas for 2021 and 2022. The UK is to use 39 tonnes of that quota to trial a new, small-scale commercial fishery to see whether it will benefit UK fishers. Assuming that the 2024 quota remains the same as the 2023 one—65 tonnes—this leaves 26 tonnes of BFT to be distributed between a possible 10 available licensed authorisations. I am neither a commercial fisher nor a recreational one, but it seems to me that potentially receiving only just over 2 tonnes of the BFT quota will not be sufficient for many, especially in the commercial sector. I note that the regulations prohibit farming and the use of traps in UK waters or by UK vessels in the convention area for BFT. This is a good thing if enforced.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Lord for his comprehensive and detailed introduction. The noble Baroness, Lady Bakewell of Hardington Mandeville, went into some detail about what is in the SI, so I do not need to go over it all again.

As the noble Lord mentioned, it is important that tuna catches are managed sustainably—so it is important that we have this SI—and that must be done while we fulfil our international obligations. We have heard that bluefin tuna stocks in our seas have increased recently. That is incredibly important, but it is also important, as the noble Baroness said, that that recovery is properly protected. It is good that we are debating those aspects.

I will raise two brief points. The noble Baroness talked about quotas. Paragraph 7.7 of the Explanatory Memorandum refers to the tuna catch quota. As she said, we did not previously have a separate quota because we came under EU rules. It would be good to understand what our quota is now and how it is operating now we have left the EU, because it is not clear what kind of catches will be allowed. If we are to manage the increase in stocks, it is important that this is clear to everybody.

Paragraph 10.1 of the Explanatory Memorandum refers to the targeted consultation. I thank the noble Baroness for going into such detail about this, because when I clicked on the website link it would not work.

[Baroness Bakewell of Hardington Mandeville (LD)]

It did not work for me the first time either.

[Baroness Hayman of Ullock (Lab)]

Perhaps the noble Lord can take that away and make sure the link works properly in the future. It was a bit frustrating that I could not get any detail on it. Having said that, we completely support this legislation and we need to move on with it.

Sustainable Farming Incentive: Species Management and ELMS

Baroness Bakewell of Hardington Mandeville Excerpts

Thursday 25th January 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I congratulate the noble Earl, Lord Caithness, on securing this important debate and on his excellent introduction to the subject, and welcome the Minister to his first debate in the Chamber. I am pleased to be able to tell the noble Lord, Lord Sewell of Sanderstead, who is a pleasure to follow, that there is a lot of innovation in science and technology going on in the agriculture industry already.

Every day of every year, the country and its residents ask farmers to perform a miracle. Without this miracle, we simply could not survive as a human population. We ask them to produce the healthy, nutritious and affordable food that sustains us all as a human population. At the same time, we ask them to deliver positive outcomes for the environment, our landscapes and our biodiversity. I have met countless farmers who have decided to ignore the binary choice of producing food or improving the environment. They already embrace a farming approach that seeks to deliver the production of food alongside, and in harmony with, environmental enhancement and biodiversity gain.

There is a great deal of consensus, both within this Chamber and across our rural communities, that this approach is the only way to succeed in future. We cannot deal with the nation’s vital food security without our hard-working farmers. At the same time, it is impossible to rectify the environmental damage that has occurred in recent decades without the help, support and local knowledge that exists within our farming communities.

When first introduced, ELMS had three strands—sustainable farming initiative, local nature recovery and landscape recovery. SFI was a universal scheme available to all farmers and those with land-managing responsibilities. But there have been changes along the way. In January 2023 came the announcement that ELMS would no longer introduce a new local nature recovery scheme. This would instead evolve into the existing Countryside Stewardship scheme. The Government’s rollout of ELMS has been criticised for creating complexity and uncertainty among farmers and other land managers, as was excellently demonstrated by the noble Lord, Lord Robathan.

If the recent changes to SFI announced by the Secretary of State do not underpin this crucially important balance, it will fail. Unfortunately, recent experience with the SFI does not bode well. Since the original launch of the SFI, we have seen flip-flopping after flip-flopping of the measures being incentivised. The constant altering of payment rates and a horrendous underspend have seen farmers’ funding cut by circa 50%, while at the same time their prospects of receiving new funding have become more and more challenging. While there are substantial increases to a few payment options in the January announcement, many are unchanged. There is less than hoped for to attract upland and hill farmers to change their farming practices to deliver more for nature, given that much land is tenanted or common land.

Establishing a single application process to enable farmers to apply for the SFI and the mid-tier Country Stewardship scheme at the same time is welcome. However, the Government have said that this new scheme will be available from summer 2024. The Country Land and Business Association has criticised the Government for not opening the applications for the updated scheme until summer 2024, arguing that farm businesses urgently need more financial support.

It takes six to 18 months to negotiate a Commons agreement, so if the detail is not available until summer 2024, new agreements will not start until late 2025. This is all taking too long. While there are some generous supplements proposed for rewetting and natural flood management, these require farmers and commoners to be able to undertake capital works. But the requirement to defray those substantial costs in advance before being reimbursed remains a major block to moorland restoration. Overall, for the uplands it is too little, too slow and too vague. Historically, this Government wanted to achieve 70% of farmers entering 70% of their land into the SFI. Today, less than 10% of farmers have applied to SFI.

In turn, an annual underspend of over £100 million in such an important policy area is bad enough, but when, in the last few years, over £100 million a year has been taken from the funding that was already going to the very community we are seeking to support, it is almost unforgivable.

The underspending on the farming budget is justly criticised. As part of the rollout, the Government said that they would maintain the annual farming budget for England at £2.4 billion, as has already been referred to. However, as has already been said, the Guardian reported that the figures from Defra indicated that there was an underspend in the Government’s environment farming schemes of £110 million in 2021-22 and £117 million in 2022-23.

I thank the noble Baroness, Lady Bennett of Manor Castle, for raising the issue of the land use framework. Can the Minister perhaps say when, if ever, it will be published?

I concede that the announcements made by the Secretary of State earlier this month have seen some improvements. For example, increased payment rates for species-rich grassland are welcome and long overdue, but let us be clear: this covers only around 0.1% of farmland in this country. There is precious little in these changes to support biodiversity improvement in the remaining grasslands, which can, if properly managed, become a thriving habitat for many iconic species in this country. I am sure that this House does not need to be reminded that we have lost over 90% of our hay meadows since the 1930s.

This is not about creating a chocolate box vision of a bygone era. Diversity of species benefits so much more than the simple flora and fauna of a field. We are now recognising the importance of multispecies pastures as reservoirs of beneficial predators. The technical term biological pest control, which is standard practice today in more than half of our horticulture production, is, at its heart, little more than the eradication of pest, disease or weed populations by a natural predator, whose population can be encouraged by a richer tapestry of habitats for food production and environment. I am afraid that I see little in the Secretary of State’s announcements in this area.

The NFU has always supported sustainable food production alongside environmental work, provided that domestic food production levels are at least maintained, but the impact of this updated SFI is not clear. For arable farmers, some of the best-paying options are where they take land out of production—the right reverend Prelate the Bishop of Norwich referred to this.

On species management, the Government have said that the ELM scheme will support species recovery and management action by farmers, landowners and other managers. The Forestry Commission argues that, although wild deer contribute to the UK’s biodiversity, they can have a negative impact, because they browse on the seedlings and regrowth of certain trees and plant species. Deer populations are currently unsustainable and culling is now necessary. The same applies to the grey squirrel population. The Government have to provide realistic future certainty on a clear and stable ELM scheme, rather than this intensely frustrating drip feed of SFI options.

With 10 Secretaries of State in 13 years, it is perhaps not surprising that the Conservatives have failed to grasp the biggest opportunity in 70 years to recover nature. During the last seven-year period of mismanagement, the Conservatives have, unbelievably, increased core Defra staff almost fourfold, from 1,800 in 2016 to nearly 7,000 in 2023. Investing in nature is good value, and the Liberal Democrats will increase the agricultural budget by an additional £1 billion to ensure that farmers get the fair deal they deserve.

I strongly support using ELMS to support biodiversity, as I have highlighted, including specific management to support populations of endangered species in all habitats across the UK landscape. However, we will not achieve that with the current set of announcements, or without taking farmers with us on a journey where they can be properly rewarded for the vital role they play in addressing the declines we have seen in too many species across the UK. If the current Government continue as they are, with uncertainty and incompetence, before long it may well be the British farmer who becomes the endangered species.

Water Pollution

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 16th January 2024 Lords Chamber

[Lord Douglas-Miller (Con)]

I thank my noble friend for her kind words, which are greatly appreciated. We will be implementing Schedule 3 to the water management Act, as previously announced. I hope that that addresses my noble friend’s question.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I welcome the Minister to his first outing at the Dispatch Box. It is clear from whistleblower evidence in the recent BBC “Panorama” investigation into water pollution that water companies can and do cheat the operator self-monitoring test by manipulating flows at failing sewage works. This ensures that there is no flow to sample when the official tester arrives. Will the Government concede that trusting companies that are financially motivated to cover up failing works to avoid penalties from Ofwat to carry out their own testing is not an effective regulatory system? Will they commit to putting robust independent regulation in place to ensure sewage works’ compliance?

[Lord Douglas-Miller (Con)]

Water companies, including United Utilities, have always been required to report pollution incidents and breaches of their permits to the Environment Agency. The agency also monitors and inspects water company sites independently. It has significantly driven up monitoring and transparency from water companies in recent years. Any reports of misreporting are a concern and, if there is evidence, the Environment Agency will always take action, including pursuing and prosecuting companies that are deliberately obstructive.

Storm Babet: Flooding

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 25th October 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, first, as the Statement does, I offer our thoughts and deepest sympathies to all those affected by the devastating floods, with hundreds of people left homeless and, tragically, some losing their lives. I also thank our emergency services, local councils and the Environment Agency for their efforts to keep people safe.

Unfortunately, events such as Storm Babet that bring terrible floods are not just unexpected any more but are increasing in frequency and severity as we see the effects of climate change. Yet, although extreme rainfall and flooding is becoming more common, climate scientists have warned that the UK is unprepared to deal with this type of weather. One example is Dr Jess Neumann, a flooding expert at the University of Reading, who has said that the UK should not be thinking about events such as Storm Babet as “a one-off freak event”, saying:

“Flooding is the greatest natural hazard that faces the UK.”


Dr Neumann also stated that we are still building too many homes on flood plains and that the Government must support people to make their homes more prepared for flooding.

The Committee on Climate Change has estimated that 1.8 million people are living in areas of the UK that are at significant risk of flooding. This figure is projected to increase to 2.6 million by the 2050s if global temperatures rise by 2 degrees, which is, worryingly, very possible. Does the Minister agree that the Government need to take our climate change goals more seriously so that our country is better prepared for such events in future?

When this Statement was debated in the other place, concerns were raised that the National Infrastructure Commission had stated that

“there is no measurable long term national target to reduce flood risk … and the current target does not factor in risk increasing due to climate change”.—[Official Report, Commons, 23/10/23; col. 617.]

I ask the Minister to explain why this is the case, and whether the Government are going to review this clearly deeply unsatisfactory situation?

We have just finished the levelling-up Bill and during the debates concerns were raised about the number of properties in the UK that are in danger of flooding, and that this is not sufficiently taken account of when it comes to planning and development. In fact, your Lordships’ House felt strongly enough on this issue to send an amendment to the Commons, which the Government chose to reject. According to the Environment Agency, more than half of local planning authorities rarely surveyed or never inspected new developments to check that flood-risk planning conditions had been carried out. The noble Baroness, Lady McIntosh of Pickering, discussed this during the debates and mentioned research that demonstrated that almost one-third of homes built in the five most flood-prone areas were approved without a flood assessment. So I ask the Minister to explain why this is happening and what can be done to improve mapping of flood-prone areas to better understand the challenges and the areas that are most at risk? We need to end the practice of just reacting to a disaster as it is happening.

The Statement refers to the emergency response centre that was set up to manage the flood risk this time around. Does the Minister not agree that there is an urgent need to plan for the long term? A Labour Government would establish a COBRA-style flood-preparedness task force every winter, to protect communities from the dangers of flooding ahead of serious events. This would co-ordinate central government, local authorities and emergency services each winter, to minimise the risk ahead of time.

Unfortunately, it is extremely likely that we are going to see more violent storms and increased flooding over the coming years. The Government have to get a grip on this issue and do all they can to support communities and put in long-term plans to decrease and manage the risk. We need government to take responsibility for managing the increasing impacts of climate change and flooding. Unfortunately, it seems that the Government have been rolling back from their climate-change pledges. So I ask the Minister whether he supports this direction of travel because, unless the Government change their approach, the devastating impact of storms is only set to get worse?

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, first, I send my condolences to the families who suffered bereavement as a result of the storm. I also commiserate with those who were flooded, losing possessions and experiencing considerable heart-breaking inconvenience. I thank all the services who went more than the extra mile to help those affected by the rising flood waters: the Environment Agency, local authorities, the fire service, the police and ambulance services, the RNLI and the coastguard services. All were involved to some extent in rescuing people and ensuring they were safe and that flood waters were dealt with quickly and efficiently.

We cannot control directly the level of rainfall, but we can be prepared for when it is likely to occur. Our advance-weather warning systems are extremely sophisticated and of tremendous benefit in helping to prepare for the worst. Can the Minister reassure the House that the early-warning systems are working and efficient, and that those properties at risk of flooding get the necessary advance warning needed for them to prepare for the approaching storms and rising river levels?

Farmers are severely disadvantaged by storms and flooding, but at least with advance warning they are able to gather in their stock and keep it safe. We no longer see low-lying fields littered with the carcasses of drowned sheep when the waters recede, which has happened in the past. However, arable farmers are not able to save their crops, and those operating on the levels and other flood plains have their livelihoods devastated by rising flood waters and are powerless to do anything about it. They deserve all the help they can get. I ask the Minister, who I know will have these farmers in his thoughts, whether the Government are able to offer them any form of compensation for their loss of vital crops?

Since 2015-16, considerable sums of money have been spent on specific hotspots of flooding. However, some of these flood defences were overrun. Some 300 flood warnings were issued by the Environment Agency and 1,258 properties were flooded. There have been reports that some flood defences were poorly maintained, causing them to be overrun. Can the Minister say how many of the flooded properties were in areas where flood defences have been strengthened since 2015-16?

The Statement tells us that in the period 2015 to 2021, £2.6 billion was spent on flood defences, securing 314,000 homes across England. This is an average of £8,250 per property protected. This is less than the cost of clearing up a property after a flood. In Derbyshire, £74 million of flood defence schemes were constructed, protecting 3,900 properties. These defences were strong and properties were protected. The Minister for Flooding indicated that the Government had increased the flooding budget for 2021 to 2027 to £5.2 billion. I assume that this is an extra £2.6 billion on top of the previous figure and not an extra £5.2 billion, which would make £7.9 billion. Can the Minister please confirm this?

I welcome that natural flood management is to receive some of this money. Natural flood management schemes of retention ponds, monitoring watercourse flows and trapping and capturing water, alongside grey water harvesting, are extremely effective and cheaper than hard defences and should be promoted and encouraged wherever possible. Preventing storm waters from reaching our towns, villages and cities is an essential part of assisting residents to help themselves to prepare for these once-in-100-year occurrences that seem to happen with increasing regularity.

I turn now to coastal erosion, which is a problem in certain areas of the country. In the West Country, it is an irregular occurrence for the sandstone cliffs to collapse on to the beach below and then into the sea. Mostly, this happens safely, but very occasionally there are casualties. I welcome the £200 million announced for flood and coastal resilience. Can the Minister say whether this is part of the £5.2 billion or in addition to it?

We have in the past debated the role of Flood Re in assisting those who live on flood plains and cannot get insurance cover. This scheme was started to assist domestic homes only. Over the years there have been calls for it to be expanded to cover businesses operating in areas of flood risk. Can the Minister give an update on the Government’s thinking on whether businesses are likely to be covered by Flood Re in the future? I am aware of the Government’s scheme Build Back Better to provide an extra £10,000 for householders flooded to improve their flood resilience. This is to be welcomed. Is the Minister able to say how successful this scheme has been and how many householders have been assisted under the scheme?

Local authorities are key to both flood prevention and resilience schemes and to assessing flood risk in the first place. Their planning departments collaborate with developers to attempt to ensure that flood resilience planning conditions are adhered to, but a lack of financial resources often means that they are stretched to monitor all such developments. Where flood risk is high, it is important for the Government and local authorities to encourage residents to join flood forums and work together to find solutions to mitigate the problems before they occur.

Lastly, I want to mention those agencies working around our coastlines to rescue people under appalling conditions. The RNLI goes out in all weathers to rescue those who are in difficulties at sea, and the havoc caused by Storm Babet was no exception. There will be many who owe their lives to the RNLI, which is a charity that receives no government funding.

I am aware that the Shetland coastguard helicopter airlifted 45 workers from the Stena Spey offshore drilling rig during the storms, and that the Department for Transport is proposing to alter the coastguard helicopter’s response time from 15 minutes to 60 minutes. This seems neither sensible nor safe. An hour is a long time in battling ferocious seas and weather. Would the Minister be prepared to ask his colleagues in DfT to reconsider this response time before lives are put at unnecessary risk?

We can help with flooding problems by addressing climate change, as the noble Baroness, Lady Hayman, laid out clearly. This aspect should not be ignored; it should be moved up the agenda.

Fluorinated Greenhouse Gases (Amendment) Regulations 2023

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 24th October 2023 Grand Committee

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, these regulations were laid in draft before this House on 4 September 2023. Fluorinated greenhouse gases, also known as F-gases, are powerful greenhouse gases used mainly in refrigeration and air-conditioning equipment, as well as for other uses such as medical inhalers. The most commonly used F-gases are known as hydrofluorocarbons, or HFCs.

The purpose of this instrument is to correct a technical error in Regulation 517 of 2014, on fluorinated greenhouse gases, known as the F-gas regulation, which is retained EU law. The correction will ensure that annual quotas, which limit the quantity of HFCs that can be placed on the market in Great Britain each year, are calculated as intended. Pursuant to the Windsor Framework, separate EU F-gas legislation and systems apply in Northern Ireland.

For Great Britain, the F-gas regulation has provisions to phase down the amount of HFCs placed on the market for the first time. This is implemented using a quota system. Importers and producers may place on the market only up to the amount of the quota they hold. The regulation sets out a phase-down schedule, with the starting point being 2015. Every three years, the amount of quota issued to businesses is reduced, thereby driving a move to lower carbon options, while giving industry time and flexibility to choose how to transition to them.

The F-gas regulation provides for a 79% reduction of HFCs placed on the market by 2030. We have already reduced HFC levels by 55% since 2015 through quota limits. Annual quota amounts allocated to businesses are calculated based on reference values. Article 16(3) provides for recalculation of the reference values by the appropriate regulator, based on the annual average of HFCs placed on the market by a business from a specified start date.

This statutory instrument corrects a technical error made in previous amending legislation relating to that start date. The start date should have been January 2015 but was erroneously changed to January 2021. If the error is not corrected, it will result in too little quota being issued to businesses. This was not the intended outcome when the F-gas regulation was retained and amended as part of the UK’s exit from the European Union. The intention was to retain the substance of the regulation, including the calculation of reference values and pace of phase-down of HFCs. Issuing too little quota to businesses would cause significant problems for HFC supply into Great Britain, disrupting sectors across the economy and business confidence.

The territorial application of this instrument is England, Wales and Scotland. The Environment Agency performs the functions set out in Article 16 of the F-gas regulation as the appropriate regulator for England and, under directions from Scottish and Welsh Governments, for Scotland and Wales. A GB-wide F-gas regime currently operates under the regulation. There is an F-gas common framework in place through which the UK, Scottish, Welsh and Northern Irish Administrations collaborate, including on the application of the GB-wide F-gas regime. Using the common framework working arrangements, devolved Administrations were engaged throughout the development of this instrument, and agreement between officials on its provisions was reached. I am pleased to say that ministerial consent has been provided by the Welsh and Scottish Governments. The Secondary Legislation Scrutiny Committee considered this instrument and cleared it without reporting it to the House at its meeting on 12 September.

In conclusion, making this correction is essential to ensure that our ambitious and world-leading phase-down is not undermined. We have already reduced HFC levels by 55% since 2015, through the F-gas regulation. To meet our international obligations, we also remain committed to reducing HFC consumption by 85% by 2036. I beg to move.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for his introduction to these regulations. At first glance, this seems like a very minor matter, a mistake having been made in the date of implementation of the regulations, 2021 having been substituted for 2015. That technical error does not appear to have been picked up quickly, despite annual quotas for HFCs being set and their importance to a range of essential products, including refrigeration, air conditioning, medical inhalers and fire extinguishers.

HFCs are regulated by quota, which, had the original date of 2021 been adhered to, would have resulted in businesses receiving too little quota. However, levels of HFCs have been reducing since 2015 by 55%, as the Minister has said, so progress is being made towards the 79% reduction required by 2030. I assume that the error was picked up only when the phase-down and three-year recalculation took place. The next recalculation is due in January 2024, and the deadline for its submission is 31 October, so it is a very tight timeline to correct the calculation error.

Although the recalculation does not affect technical operability, not having a consultation is interesting. The businesses that would have been adversely affected had this error not been identified and corrected would, presumably, have suffered at least a disadvantage to their operation, and I would have expected them to have a view on this and to have been consulted. There is also no impact assessment; it has been deemed unnecessary as the instrument corrects a technical error, but that error relates directly to the level of HFCs that can be used in the various products dependent on them.

Should the other place and this Committee refuse to endorse these regulations, there would be an impact on a number of particularly important businesses. However, I understand completely that, at the time of Brexit, the sheer number of SIs passing through Defra was enormous and some errors were unfortunately made. My only surprise was that this one took a while to surface. Nevertheless, I accept the importance of this SI and am content to support it as it stands.

[Baroness Anderson of Stoke-on-Trent (Lab)]

My Lords, I thank the Minister for his overview of the regulations before us. As has been stated, this is an unusually straightforward statutory instrument as it seeks solely to correct a date error in a piece of retained EU law relating to fluorinated greenhouse gases. Therefore, I plan to keep my contribution short.

However, to reiterate the comments of the noble Baroness, Lady Bakewell, it is clear that the technical error, as outlined in Paragraph 6.6 of the Explanatory Memorandum, which changed the baseline date for the annual quota system from 2015 to 2021, would have a detrimental impact on the businesses affected and make compliance challenging. It is also contrary to the policy intent. However, it is concerning that the SI is before us only today, when the deadline for recalculating the underlying reference values is 31 October. In other words, the dataset needs to be calculated next week, yet His Majesty’s Government have put this before us only seven days before the deadline. When was the error identified? Could the department have brought forward the instrument earlier to give assurance and clarity to business? Can the Minister also confirm that this is the last example of this error, and that we should not expect to see any more SIs of a similar nature in the coming weeks?

While I have the Minister’s attention, Paragraph 14.1 of the EM notes that a wider review of the F-gas regulation is under way. Can he update your Lordships’ House on the timelines for the review? I look forward to hearing from the Minister.