Water Bill

Debate between Baroness Parminter and Lord Crickhowell

Tuesday 25th March 2014 Lords Chamber

[Baroness Parminter]

My Lords, along with a number of colleagues around the House, I raised serious concerns in Committee about the potential for environmental damage resulting from the upstream competition proposals being agreed in advance of reforming the water abstraction regime. I will not repeat those this afternoon. However, I am very pleased to say that the Government have clearly listened to our concerns and are proposing a number of significant amendments to address them.

First, the Government propose to report in 2019 on progress in reforming the water abstraction regime. The Government’s stated aim, following the publication of their consultation on abstraction reform last December —which the noble Lord, Lord Whitty, welcomed—is to legislate early in the next Parliament and implement abstraction reform in the early 2020s. The report will therefore give Parliament an opportunity to scrutinise the management of the interface between what should be by then the two pieces of legislation and their implementation. We can then seek to ensure that their implementation delivers the desired outcomes for both customers and the environment.

I am also grateful that specific concerns that I raised about sleeper licences and bulk trading were heard. The Government have introduced amendments to require Ofwat to consult the Environment Agency or Natural Resources Wales before they issue the codes on bulk supply agreements and before allowing a water supply agreement between relevant parties and incumbent water companies. Equally, relevant parties will be required to consult before entering into bulk supply agreements, and Ofwat will have to take into account any response from the Environment Agency or Natural Resources Wales. In that regard, I do not agree with the noble Lord on the Front Bench opposite that these government amendments are weak. I know from my conversations with Ofwat, which did not want the amendments to be tabled, that it most assuredly does not see them as weak.

In advance of the abstraction regime being reformed, the Environment Agency is already seeking to vary and remove unsustainable existing licences. It will be helped in that by the Government’s removal in this Bill of a statutory right to compensation for a water company resulting from such modifications or the revoking of a licence. The Government have therefore gone a long way towards addressing concerns that noble friends and colleagues expressed in Committee. These proposals satisfy my concern that legislating now for upstream reform in advance of reform of the water abstraction regime could lead to an unsustainable increase in abstraction. Therefore, I would not support any further amendments being tabled by the Opposition Front Bench.

[Lord Crickhowell]

My Lords, I want to probe a little on the timing. I agree with everything that the noble Baroness has just said. For eight years, as chairman of the National Rivers Authority, I had to try to deal with this problem with rather less adequate weapons than the Environment Agency now has, so I welcome the steps that the Government are taking and have taken. I also want to see rapid progress made on the competitive regime, but there seems to be a very difficult timetable. We will have a report five years out on how abstraction is going, yet there will be legislation in the next Parliament which takes us a year further forward. I do not quite see exactly how the Government envisage progress being made on these two important priorities. I confess that I have been away abroad since Committee—I have been enjoying myself in the Galapagos—so my mind has not been on this matter, but I would be grateful if my noble friend could give us a little greater clarity on the timing of these two interlocking steps, on the way in which they are likely to relate and on how the legislative timetable is likely to fit in.

Water Bill

Debate between Baroness Parminter and Lord Crickhowell

Thursday 6th February 2014 Lords Chamber

[Lord Crickhowell (Con)]

My Lords, at Second Reading I said I was green with envy that the environmental regulators will now have the Bill rather than the legislation that I had to deal with as chairman of the National Rivers Authority when I was in almost continual friendly conflict—I emphasise the word “friendly”—with Ian Byatt the economic regulator. It was so friendly that I have two cartoons at home, which were sent to me by a notable newspaper, showing both of us in the boxing ring. In the first, we are engaged in a vigorous fight, and the second shows us collapsing together exhausted at the end of the exchange. We have made huge progress since then, and the existing sustainable development duty, as I understand it, is now being given statutory authority in the Bill. The clear steer that has been provided by the Government is now being given statutory effect in the Bill. As I understand it, Ofwat now has sustainable development as a central objective. It will have to take account of that. It will have to carry out its functions in accordance with the strategic priorities and objectives identified by the Secretary of State.

So while I entirely understand and, indeed, sympathise with the arguments advanced by the noble Lord, Lord Redesdale—and perhaps it is because we have made such a huge advance from the position with which I had to deal when the economic regulator just did not think he had any obligations to provide for the environment and blocked almost every proposal that came from Europe or from us—I would like my noble friend to clarify what is to be gained or lost if we accept the proposition put forward by the noble Lord, Lord Redesdale, over what we have already in the Bill. I find it very difficult to understand exactly what benefit we would gain. If there is nothing to be lost by including it, I would not be against including it. Against the background of a huge step forward having been taken, I am seeking from my noble friend clarification of the benefits and possible downsides of having this written into the Bill in the way proposed.

[Baroness Parminter (LD)]

My Lords, I thank my noble friend Lord Redesdale for raising this issue yet again. He has done so on numerous occasions, as have many other noble Lords. It is an important debate. It is quite clear that the Government are committed to sustainable development, but they believe that they do not need to elevate the primary duty of sustainable development for the regulator in the water industry because it has a secondary duty. What they are prepared to give is the new primary duty for resilience. I think we are going to carry on arguing about whether resilience delivers the environmental and social benefits that those of us who are concerned about sustainable development believe it does. The Government say it does and I am sure that the Minister will reiterate today that he believes that resilience will deliver the sustainable benefits that we believe are crucial for the regulator to deliver. There are others who believe that the resilience duty does not.

I would like to pick up on what my noble friend Lord Redesdale has said. We should try and move the debate on from arguing about what “sustainable development” and “resilience” mean to what we actually want to achieve. It is significant that my noble friend Lord Redesdale raised the issue of water efficiency. That is, bluntly, what we want to achieve—a more resilient future for our water industry which protects the scarce resources that we have, to the benefit of the environment and communities. I urge the Minister to reflect again between now and Report on a duty to promote water efficiency. I think that is a constructive way forward. There will be a difference between those of us who believe resilience is sufficient and those of us who would have liked to see a primary duty on the regulator. I do not think the Government are going to move, but I do think that a duty to look at the issue of water efficiency is a helpful way forward.