National Policy Statement for Water Resources Infrastructure 2018

Debate between Lord Adonis and Baroness Bakewell of Hardington Mandeville

Thursday 11th April 2019 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, this is a very important subject and I thank the Minister for his extensive introduction. Water resources and ensuring that there is a sufficient supply to meet the needs of the nation are extremely important, as every speaker has said. It is life-saving. This is a reasonable piece of legislation and has some significant steps forward, but it is not perfect. I have three concerns to flag up. The first is around demand management. The second is on the need to tackle climate change if we are to have sufficient water into the future; and the third is the need to ensure that all infrastructure development achieves a high net gain for the environment.

Turning first to the important issue of demand management, this NPS does not make it clear how demand management can be prioritised before allowing hard infrastructure solutions. Paragraph 3.5 outlines a need to assess alternatives. This sounds like a box-ticking exercise after a decision has been made, rather than a determination by the Government to ensure that small-scale demand management or green schemes are prioritised. Disappointingly, the objectives set out in paragraph 1.10 do not refer to the need for demand management and its role in minimising the need for additional hard infrastructure and in meeting the Government’s sustainability goals.

The Liberal Democrats have long argued that, instead of focusing solely on new infrastructure, the priority should be lowering demand in the first place. The role that demand management can play in helping reduce demand, and consequently what this means for the scale of need for nationally significant water infrastructure projects, has not been made clear in this NPS. How will the Government prioritise demand management in order to drive down the need for new, expensive infrastructure?

[Lord Adonis]

Does the noble Baroness’s party support mandatory water metering? I am curious to know.

[Baroness Bakewell of Hardington Mandeville]

The noble Lord asks a question to which unfortunately I do not have the answer at my fingertips. I will write to him and let him know.

The draft NPS suggests that,

“maintaining the current level of resilience in future will require at least an additional 3,300 Ml/d of additional capacity in the water supply system by 2050”,

yet there is no indication of how much capacity could be gained from demand management. In its excellent report on water, the National Infrastructure Commission suggested that aiming for additional capacity of 4,000 Ml/d will require a minimum of 1,300 Ml/d additional supply infra- structure by 2030, in addition to around 1,400 cubic metres being met through leakage reduction and 1,500 cubic metres being met through efficiency and metering. The relationship between the two is not iterated in the NPS.

Although we acknowledge the need for supply infrastructure, it is important that the NPS does not result in perverse incentives against small schemes and schemes that do not meet the NSIP criteria, such as effluent reuse. For example, there remains a total lack of incentives to encourage developers and water companies to work together on projects such as greywater and rainwater recycling. This could help in areas identified by the noble Lord, Lord Lansley. Another example is the potential role of natural flood management in increasing resilience to dry weather and providing storage. What support is available to promote small-scale schemes and green infrastructure projects, as mentioned by the noble Baroness, Lady McIntosh?

Just as dealing with water leaks varies hugely across water companies, so ambition around demand management varies widely across the country. Some companies are working hard on this, but not all. There is also much variation in per capita consumption targets. On PR19 Southern leads the way on PCC with its target of 100, but only five other companies are still aiming for less than 120 litres per person per day by 2040 to 2045. That is fewer than half of all water companies. Water leakages are around 20%, and the National Infrastructure Commission has said that halving water leakage by 2050 could deliver one-third of the additional capacity required—so leakages are key. What are the Government doing about putting pressure on water companies to deliver on that and avoid the need for one-third of future infrastructure water resource projects, which cause huge disquiet where they are sited?

Page 13 of the NPS states:

“The Government is also exploring other options for reducing consumption”.


Will the Minister spell out exactly what the Government have in mind? When the Water Bill was going through Parliament, these Benches supported compulsory water metering, with reduced tariffs for those in particular need. France has this scheme but the UK does not. Could the Minister say whether the Government are specifically considering this?

Secondly, climate change should be a big driver for the need for new water resource infrastructure. The Government should be leading the way on this issue. Paragraph 2.2.7 sets out clearly that climate change will lead to water shortages. Green NGOs, such as WWF, have argued that all NSIPs covered by this NPS should aim for carbon neutrality, given the long-term nature of the infrastructure and the need for significant reductions in energy use. This may be particularly difficult in relation to desalination plants, which are very energy intensive as fossil fuels currently fuel the plants. However, it is not impossible to reduce the impact, given developing technology and offsetting. I suggest that the Government adopt a hierarchy approach, with developments required to look first at energy efficiency, followed by green energy provision and use, with carbon offsetting as a backstop. Does the Minister agree with this?

Lastly, we support the proposed requirement for a scheme to achieve net environmental gain. However, it should be made clear that net environmental gain must require, first and foremost, a biodiversity net gain, as the noble Lord, Lord Wigley, said. This is similar to that proposed for development under the National Planning Policy Framework. In addition, we support the requirement for an environment statement. This should play a valuable role in understanding the environmental trade-offs and overall approach taken by the developer.

This is a welcome NPS. I look forward to the Minister’s comments and agree with many of the comments that have already been made.