Water Supply Disruption

Baroness Pinnock Excerpts

Tuesday 6th March 2018 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, again, so many of the noble Lord’s comments are in line with what I said and what the Secretary of State was very clear about last week. Some water authorities are, in my candid view, better than others. I have a list of some of the many projects that certain water companies are undertaking, whether investment or dramatically improving water on beaches. There are some very good examples of where that investment of £140 billion since privatisation has undoubtedly borne fruit, whether it is in sewers, flooding, pollution or reduction in nitrates. But there is no doubt that the game needs to be upped, and that improvements in certain water companies need to be considered.

As I said, Ofwat has already given Thames Water a substantial fine for missing leakage targets. When one thinks of water shortages in the south-east and other places with large populations, it is imperative to bear down on continuing leaks very strongly. We need to ensure that water companies are investing properly. In fairness, I have to say that leakage levels are down by a third since privatisation and bills since 1994 are but 3% higher—but there is room for considerable improvement. That is what my right honourable friend the Secretary of State is looking for. We are clear that if Ofwat needs any further powers, we will actively look at them.

[Baroness Pinnock (LD)]

My Lords, I draw attention to my entry in the register of interests as a non-executive director on the board of Yorkshire Water until September last year.

My understanding is that water companies have to agree a five-year plan for investment in water infrastructure with Ofwat, which is a balance between investment, priorities for improvement such as those to which the Minister referred—sewage systems, clean bathing water, the freshwater river directive and all the rest of it—and cost to the consumer. That is the balance that has to be reached, and those plans are agreed with Ofwat. I am not saying that there ought not to be significant improvements, because there always ought to be, but we need to look at the reality, which is that it is a three-way balance between national government priorities, consumer cost and Ofwat agreeing to the cost of capital.

When I was on the board of Yorkshire Water, I was always going on about leakage, on which I think it is now one of the better companies at about 19%. Water is actually quite cheap—it costs about a penny a litre out of the tap—so the cost of repairing Victorian pipes in many of our towns and across the country is not economic for the water saved, certainly in the north of England where we have plenty of water. It is probably different in the south. Perhaps the Minister could comment on that.

[Lord Gardiner of Kimble]

I am tempted to say that Yorkshire Water is planting millions of trees to help reduce the risk of flooding and control surges in the flow of water. On leakage, the target was 297 million litres per day, which sounds a lot, but the actual was 295 million, so Yorkshire Water, under the previous custodianship of the noble Baroness, is obviously working extremely hard on some of the issues that she rightly outlined as a balance with other work, working with natural capital and so forth, that water companies are doing.

The first thing to say on the five-year business plans agreed with Ofwat is that they have tough performance commitments, and we agree that they should balance resilience and affordability in the priorities in the strategic policy statement .

On the point about leakage and the cost of the leakage, the noble Baroness may be right that water is cheap, but it is also very precious. I am thinking about the ways in which I would feel very uncomfortable about taking the foot off the pedal in bearing down on leakages and the targets, as we all ought to be doing—and, indeed, upgrading our infrastructure. In previous years, all the streets of London were up because Victorian main drains were being replaced, and so forth. The investment of £140 billion since privatisation has gone on upgrading the infrastructure, and we undoubtedly need to do more.

Rural Areas: Income

Baroness Pinnock Excerpts

Tuesday 7th March 2017 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, there is a national living wage and it is an obligation. I am very pleased that it is to rise to £7.50 per hour in April. That is precisely why we want to ensure that, with the increase in tax allowance and more coming through, people at the lower end of the income range are those who we are helping.

[Baroness Pinnock (LD)]

My Lords, rural proofing does not seem to have reached local government, where many local services have withdrawn from villages into urban centres as a consequence of the deep cuts to local government funding. What advice would the Minister provide to the Secretary of State or his fellow Minister the noble Lord, Lord Bourne, about funding for district and county councils to enable rural proofing?

[Lord Gardiner of Kimble]

My Lords, as I say, the rural-proofing guidance is to go across Whitehall and the DCLG is of course a very important government department in that respect. There are clearly considerable sums of money still going to local authorities and it is for them to decide on the division of the budget. But this predicates something rather more important: we have to have a growing economy to afford all the things we want to do. That is why this country has the fastest-growing economy in the G7, which is important because it is only when we grow our economy that we will have the resources to do many of the things which I am sure your Lordships wish to have done.

Footpaths

Baroness Pinnock Excerpts

Thursday 17th November 2016 Lords Chamber

[Lord Gardiner of Kimble]

I should say in declaring an interest that part of the cross-compliance arrangements that we as farmers and landowners have is precisely in the matter of keeping paths open. If we did not, we would not be adhering to those arrangements. What the report shows—I welcome the tone of what the Ramblers have suggested—is that we need to work together in partnership to get those 9% of footpaths open and better available. It is an overwhelmingly positive report about how partnership will make sure that all paths are in good condition by 2020.

[Baroness Pinnock (LD)]

My Lords, in my part of West Yorkshire there are 37 miles of public rights of way. In 2010, there were eight members of staff and a budget of some £250,000 to maintain them; today, there is one member of staff and no budget. Deterioration is therefore inevitable. Will the Minister explain how those paths can be kept open?

[Lord Gardiner of Kimble]

My Lords, it is interesting that the Ramblers report stated:

“The condition of paths varies across the country, but the picture is complex. Many local factors contribute and budget cuts alone do not explain why the path network is better maintained in some places than in others”.

Partnership with volunteers and local authorities is what works best. That is what I will encourage in my discussions. Of the 118,000 miles of rights of way, I very much hope that the noble Baroness’s 37 will be in good repair as well.