(3 years ago)
Lords ChamberMy Lords, I take this opportunity to congratulate the noble Duke, the Duke of Wellington, on bringing us this far and I add my congratulations to my noble friend the Minister.
I want to ask two small questions. My noble friend said that he would look for the water companies to achieve a progressive reduction in the discharge of sewage over a period and admitted that this would go beyond one price review. As we are so far into the current price review, what will the level of expenditure be within this review, and does he admit that the majority of expenditure will probably fall in the next price review?
He is aware of my concern about the delay in introducing the regulations under Schedule 3 of the water Act 2020. Does he not share my concern that we will still potentially be front-loading raw sewage as surface water will be allowed to mix with the overflow from the combined sewers, pumping more raw sewage into the rivers? I am deeply unhappy that we have not yet fulfilled one of the outstanding requests of the Michael Pitt report from 2007, when surface water flooding first became an issue, and even after the awful floods that we have had since. We have not managed to achieve an ending to the automatic right to connect and, until these regulations are introduced, we will not do so.
Is my noble friend able to put a timetable on when these regulations will finally come into place, so that we can have a pincer movement on the raw sewage going upstream and downstream, as addressed by the amendments before us this afternoon?
My Lords, I will speak to Motion C1. I know enough about military strategy to know that where a Duke of Wellington does not lead a forward manoeuvre, it may be unwise to try to advance when he is not leading. So I am very mindful of the views of the House, and other noble Lords will speak before I decide whether to press Motion C1.
The point he made, which I think still holds, is that, although there has been movement on the part of the Government, in two key respects—the scope of the duty on water companies and the timescale in which it is intended to be met and in which we are intended to see improvements—the amendment that the Government have moved is unsatisfactory. I think there is general recognition in the House that we are not talking about a minor matter. We are talking about 400,000 discharges of raw sewage into Britain’s rivers in the last year alone. All the evidence is that the number is increasing, not reducing. We are not moving in the right direction; we are moving in the wrong direction and indeed, because of the impact of Brexit and the supply chain problems and all of that, and the shortage of relevant chemicals, the Environment Agency has issued formal advice exempting water undertakings from having to meet their prior conditions.
The noble Duke’s first amendment referred to taking “all reasonable steps”, which would imply a short timescale, and my amendment refers to
“a period specified by the Secretary of State”
in which defined objectives are to be met. My question to the Minister, which I think will be of great importance to the House since there is no reference to any timescale in his amendment, is: in what timescale does he envisage that there will be significant reductions in sewage discharges?
The second issue relates to scope. The noble Duke’s amendment put a direct duty on water companies to improve the performance of sewerage systems to get at the heart of the problem—inadequate sewage treatment facilities to reduce discharges of raw sewage. Now, the Government’s amendment refers to reducing
“the adverse impact of discharges”,
which is an indirect duty and does not require at all, necessarily—but certainly not in a defined timescale—significant improvements in the performance of sewerage systems. I ask the Minister why the Government are so focused on the indirect impacts—which we accept are important, and the noble Duke referred to that—rather than a direct duty on water companies to improve the performance of their sewerage systems?
A final point of some significance is: who can enforce this duty? Because, as everyone has accepted, without enforcement the duty will probably go unfulfilled. Philip Dunne—to whom we pay tribute and who has done great work in the other place on this issue—in his speech yesterday referred to his continuing concerns about enforcement, particularly in the context of a cut in the Environment Agency’s staffing and budget of two-thirds in the last 10 years, which has dramatically reduced its capacity to enforce or indeed even to inspect—and of course, unless you have inspected, you cannot enforce.
The noble Duke’s amendments would have given any individual or body corporate the power to enforce or to bring enforcement action or legal action because of the non-fulfilment by a water company of the duty. I think in particular of local authorities. Of course, it is local authorities that best know what is going on in their area and have the professional staff who are able to make assessments. Under the Government’s amendment, only the Secretary of State and defined state institutions can hold water companies to account for the enforcement of their duties. That is a very significant limitation on the noble Duke’s amendment.
So my third question to the Minister is: why are the Government not prepared to allow local authorities and non-state bodies, many of which are highly expert in this area, to bring proceedings against water companies that are not fulfilling the duty that is now set out in the Government’s amendment?
To me, these are three very significant issues: timescale, the scope of the duty and enforcement. In all three respects, the Government’s amendment is wanting at the moment. It does not lead me to have any expectation that the noble Duke’s aspirations, which we all share, will actually be fulfilled, because the timescale for meeting these objectives could be inordinately long. I look forward to hearing the contributions of other noble Lords, and in particular of the Minister at the end of the debate, before I decide whether, even if the noble Duke himself is retiring from the field, others of us might feel that it is in the public interest that we should attempt to advance none the less.
(4 years, 5 months ago)
Lords ChamberMy Lords, I entirely agree with all the arguments that have been made by the noble Lord, Lord Clement-Jones, and have nothing to add. I hope the Government will accept this amendment.
My Lords, I would like to clarify some of the arguments that have arisen on the sidelines since Committee regarding how Amendments 1 and 2, which I am inclined to support, would function.
It is probably fair to say that in rural areas the connections are slower and less secure, as we have seen in a number of our own parliamentary proceedings. Amendment 2 refers to who can request an operator to provide an electronic telecommunications service; that would include rural tenants. I am concerned that many tenants are trying to conduct a business from home in the current circumstances surrounding Covid-19; I have found myself in such circumstances.
Can we have an assurance today from the Minister that, given what other noble Lords have said about the assurances and powers that landlords have in this regard, consent being sought from a landlord could not possibly delay connections to a fibre network? Fibre is very slow to be delivered, particularly in upland areas, and it would be regrettable if there were any further delay due to consent being sought from a landlord who may not be immediately available in that regard. I would be grateful to learn what my noble friend’s thinking is in that regard.
My Lords, I am grateful to the noble Lord, Lord Stevenson, for giving us the opportunity to look at this very vexed area. Is the Minister aware of the situation and the fact that many living in isolated situations and deeply rural areas, as described by the noble Lord, feel that they are being disadvantaged in this regard? It would be helpful to know that. I entirely endorse what my noble friend said about seeking a balanced relationship between the landowner, the operator and the tenant, but can she confirm the point that I made earlier—I do not know whether she addressed it—that the landowner cannot use any delay, in any way, to prevent the service and the upgrade to a fibre network that would benefit the tenant? She would surely agree with that.
(4 years, 5 months ago)
Lords ChamberMy Lords, I support the sentiments expressed by the noble and learned Lord, Lord Hope, in moving his Amendment 1, and I thank the Minister for his letter, which has been shared with us.
The duty of the monitor to notify creditors extends only to those creditors of whom the monitor is aware. What is welcome about Amendment 1 is the fact that it strengthens that. At the moment, there is no express duty to seek information about creditors from the company, and I feel that there is a very strong need for Amendment 1 to enable the monitor to do their work, given the time constraints regarding the moratorium under which they are working.
I was pleased to support the amendment in Committee. I noticed that in the Minister’s reply setting out why, in his view, Amendment 1 is not necessary, he regrets that he did not have time to respond fully to the points made in Committee. That raises a broader point about parliamentary scrutiny. I hope that the normal channels will take note of this and that we allocate sufficient time to ensure full and proper scrutiny of a major piece of company law, albeit that for the most part it is time barred. It takes longer to correct a bad law than to make a good law in the first place.
If we do not adopt Amendment 1 today, I believe that that will make the monitor’s position more difficult and that the position of creditors will remain very weak. I support the remarks of my noble friend Lord Bourne. In Committee I made similar points about the desirability of enhancing the independence of the monitor and there is no need to rehearse them today, but I stand by those comments.
Finally, I turn to the Minister’s explanatory statement on government Amendment 3. Generally, I welcome the government amendments, which are preferable to the original Henry VIII clauses, although I am mindful of the remarks of my noble friends Lord Leigh and Lord Trenchard in this regard. However, I question the Minister’s justification of Amendment 3, which would leave out the definition of “the relevant documents” and replace it with the words
“adding to the list of documents”.
The statement says:
“The power could subsequently be re-exercised so as to remove anything added.”
That seems slightly peculiar, and I would welcome the Minister explaining it in more detail when he replies to this debate.
My Lords, after an hour and five minutes of debate, I do not think that there is much more that needs to be said in favour of these amendments. We have heard a succession of powerful speeches. As the noble Lord, Lord Hodgson of Astley Abbotts, said, the speech that matters now is the Minister’s. We need to know why he believes that the amendments are not necessary, as I understand he is likely to say in respect of a number of them, and we might then come back on that, either now or at Third Reading.
I strongly support Amendment 75. I do not think that in practice it would make much difference, as it would simply introduce a right to be consulted. As my noble friend Lord Hendy said, it does not have any of the stronger elements of a requirement to negotiate or to take account of views—points that have been debated—although it is obviously a step in the right direction. However, the really powerful amendment is Amendment 14, and we look forward to the Minister’s response to it. It would, as many noble Lords have said, make it categorically and explicitly clear that the banks and other financial creditors may not seek to accelerate payment.
The Minister’s response here will be crucial. The noble Baroness, Lady Bowles of Berkhamsted, has told us that the Minister said when she met him that the Government expected that banks would behave reasonably and would not seek to enforce repayment requirements unreasonably, whereas a succession of speakers, particularly the noble Lord, Lord Hodgson, and the noble Baroness, Lady Bowles, have made it clear that it is standard practice for them to take every opportunity they can to accelerate payments and that they will do so if the Bill is enacted without Amendment 14.
So the House will want to listen carefully to what the Minister says in response to Amendment 14. If his argument is that it is his expectation that banks will not seek to accelerate payment, what grounds can he offer to the House to support that view when we have been given such strong views to the contrary?
(4 years, 6 months ago)
Lords ChamberI spoke at Second Reading, so I do not need to follow the noble Lord, Lord Clement-Jones, in making a Second Reading speech. I agree with all the points he made; his amendments probe the Minister in all the right directions.
However, a new big Second Reading theme has emerged since that Second Reading debate, due to the coronavirus crisis and the pressure it is putting on private operators. There has been a good deal of media speculation in the last two weeks as to what might happen to Openreach, in particular whether BT will seek new partners to fund its rollout plans or possibly even sell off Openreach entirely. That would be a dramatic change in circumstance from the position before the crisis, when BT was keen to maintain its position with Openreach and the argument was much more about how one could get a commitment to rollout while Openreach was still linked to BT.
In her reply, can the Minister give us a sitrep on the position in respect of Openreach, what BT’s intentions are and what impact she believes it will have on the rollout schedule and plans in respect of superfast broadband? This has a big bearing on the subsequent amendments and those we might want to take forward on Report. I hope she can give us an update on those issues.
My Lords, I echo many of the sentiments expressed by the noble Lord, Lord Clement-Jones, and thank him for tabling these amendments. Leasehold properties are a very grey and disaffected area of property rights. It is extremely important to state at the outset that my interest is primarily in putting leasehold properties, particularly in rural areas, on the same basis as any other property.
As the noble Lord, Lord Clement-Jones, said, Covid-19 has thrown a spotlight on the importance of connectivity and access to all forms of communication, particularly mobile signals, wi-fi and broadband. Without a shadow of a doubt, in north Yorkshire and other deeply rural parts of the country, many properties, not just leasehold properties—we lived in one for a couple of years in north Yorkshire—are very remote from the exchange and their connectivity remains woefully slow. I ask the Minister directly to ensure that leasehold properties will be put on the same basis as any other property, particularly in rural areas.
I support this group of amendments in a probing way—particularly Amendment 1, which will cover tenants. On Amendment 5, as the noble Lord, Lord Clement-Jones, alluded to, leaseholders may not be in an occupation. What is the position under the Bill as it stands, without Amendment 5, if the occupant was retired?
With these few focused remarks, I take this opportunity to ensure that the Bill fulfils its purpose—to put these property rights on an equal basis with other rights—but also to ensure that in rural areas we have the maximum connectivity in every aspect, whether mobile signal, wi-fi or broadband, which is the Bill’s intent.