Water Industry (Financial Assistance) Bill

Debate between Baroness McIntosh of Pickering and David Mowat

Wednesday 29th February 2012 Commons Chamber

[Miss McIntosh]

I am sure that the whole House will welcome the hon. Lady’s helpful clarification, because her concluding remarks were a little ambivalent.

Returning to DEFRA’s acceptance of some of our conclusions, some of the site-specific material has been moved to an annex that is part of the document that is not to be relied on by the decision maker in reaching a decision on a project. That meets, to some extent, our criticism about the inclusion of weak material on the Thames tunnel, as well as on Deephams sewage treatment works. Perhaps my hon. Friend the Minister will also give us a status report on those treatment works.

[David Mowat (Warrington South) (Con)]

In the Select Committee’s consideration of the £50 reduction in the south-west, did it look at water poverty more generally across the United Kingdom, including whether other regions have more consumers in water poverty than the south-west, so that it might have been fairer for the money to have been allocated in a different way?

[Miss McIntosh]

In our report on the Thames tunnel, we did not consider aspects of affordability, which are rightly covered in an earlier report to which I will turn shortly.

I am delighted that DEFRA accepts that the remaining site-specific sections have been improved and that the Government have, as recommended by the Committee, moved to change the definitions in the Planning Act 2008 to include sewerage transfer and storage projects such as the Thames tunnel in the process for deciding applications for nationally significant infrastructure projects. The Committee welcomes that. I hope that we have discharged our duties comprehensively, given that this was one of our first opportunities to do so under the Planning Act.

--- Later in debate ---

[Miss McIntosh]

Speaking in an entirely personal capacity, and looking at sustainable development and flood prevention, the one thing we could do today is to stop building on floodplains. Perhaps the House would like to unite around that and an amendment could be tabled to a future water Bill.

There are things that we can do now. There has been lots in the papers recently about water stress and scarcity, and drought. That will inevitably have an impact on homes. There is a risk of subsidence and there are reports of roads cracking. That obviously has insurance implications for householders and business properties, but also for highways. Again in a personal capacity, I challenge the Minister on how we will pay in those mostly rural areas for roads that are cracking now because of drought rather than the flood damage that occurred in the previous two years.

I welcome the fact that our report discusses the new responsibilities of the upper-tier authorities for flood and water management, and that funds are available. The Government response talks about providing the funding to lead local flood authorities through direct grants and says that that is expected to fund fully their new responsibilities under the Act. However, my local authority tells me that those moneys are not ring-fenced. If that is the case, and we are reducing, because of austerity, the money for the core tasks of the upper-tier authorities—county and unitary—that will pose real difficulty for them, and I put that to the Minister.

My hon. Friend the Member for Tiverton and Honiton (Neil Parish) mentioned affordability. The Minister and others have been challenged about that in many forums, not only the Select Committee, but all-party groups. It is right that the Bill focuses on affordability for the south-west region. [Hon. Members: “Hear, hear.”] I have no connection with the south-west, other than hoping that I have many friends on both sides of the House who represent the region extremely ably. However, there is a particular issue in that the population is small and there is a heavy emphasis on fixed and lower incomes. As I said, the application of the EU drinking water directive, and especially the bathing water directive, posed enormous problems for the south-west.

I therefore welcome the fact that the Bill addresses affordability. I hope that when the House has ample time—I am sorry if it will not be this year; we keep hearing that something will happen in the coming weeks or the coming months—and the draft Bill is before us, we can address some of the other affordability problems and also a social tariff.

[David Mowat]

I have listened to the points about the south-west, and I, too, have no problem with the region being helped through the Bill. However, there is an issue about water poverty and in which regions it is greatest. There is a case for helping them, notwithstanding the specific problems that exist in the south-west. I believe that there is more water poverty in the north-west than the south-west, and there is therefore a case for doing something there at the same time.

[Miss McIntosh]

I do not want to rehearse the arguments I have just made, but every hon. Member could point to examples of water poverty. I am sure all of us have constituents who write to us or come to our surgeries to talk about the affordability of their bills. Dealing with that is the role of Ofwat. I should like to record my thanks to the chief executive, and more especially the chairman, of Ofwat for their work in that regard. They have a real role to play.

One other piece of unfinished business that I expect to be included in the draft water Bill—this was raised in the Committee’s scrutiny of future flood and water management legislation and the Government’s response—is the Gray review of regulatory aspects. I hope my hon. Friend the Minister confirms that that will be covered by the draft Bill, along with the Cave review, which is on aspects of competition—specifically, the level of competition that there will be—and the Walker review. In times of water stress and scarcity, it is important that we encourage people to use water sensibly and, as Ofwat and Anna Walker have frequently said, that we encourage households and businesses not to heat their water beyond the supply that they need, because doing so leads to unsustainable use.

Another issue pertains specifically to the Thames tunnel and more widely. The Committee is persuaded that the Thames tunnel is the best way to proceed for the purposes intended, because sustainable drainage systems were excluded. However, we just touched on how to prevent floods, and I hope the Minister can today report on progress on establishing sustainable drainage systems throughout England and Wales. Will he renew the commitment, or give us a once-and-for-all-time commitment, that the Government will end the automatic right to connect, which goes to the heart of water stress and scarcity? In Filey in my area, 300 houses will be built on a functional floodplain against the council’s advice. The field takes surface water surplus, but there is nowhere to displace it to. Yorkshire Water is trying hard to accommodate proper capacity and connection for those 300 extra homes without making others short of supply, but the area is not flush with water, if you will pardon the expression, Mr Deputy Speaker.

I welcome the debate and the opportunity to draw the Committee’s wider concerns to the House and the Minister. On the two specific points to which my right hon. Friend the Secretary of State referred, I hope the Minister will confirm that there will be a debate on an amendable motion on the Floor of the House on the national policy statement on waste, and clarify what planning issue the Government will bring before the House.