National Policy Statement (Waste Water)

Debate between Lord Benyon and Simon Hughes

Monday 19th March 2012 Commons Chamber

[Richard Benyon]

I think I got the gist of it. I will come on to cover the key points that were made by the Environment, Food and Rural Affairs Committee and to explain what the waste water national policy statement is. I think that I will address the hon. Gentleman’s points, but I am happy to let him intervene again.

In laying the waste water national policy statement before the House for approval and in having this debate, we are meeting a Government commitment to mirror the new requirements of the Planning Act 2008 that will be brought into effect next month under the Localism Act 2011. Those procedures are intended to make national policy statements more democratically accountable to Parliament.

The Government are committed to making the planning system more open, transparent and fast, and to ensuring that all those who want to get involved in the process can do so, whether it relates to an application to extend a property or to a project of national significance, such as the Thames tunnel. The abolition of the Infrastructure Planning Commission brings democratic accountability back into the determination of nationally significant infrastructure projects by giving decision-making powers back to Ministers, who are answerable to Parliament. Ministers will also have regard to recommendations made by the Planning Inspectorate.

National policy statements are a key component of a more open and accountable planning system. They will set out Government policy clearly on particular types of infrastructure of national significance, having been subject in draft form to both formal consultation and parliamentary scrutiny. National policy statements provide a framework for preparing, considering and deciding development consent applications. This national policy statement is therefore primarily for planning purposes and does not claim to be a complete statement of Government policy on waste water.

Effective waste water infrastructure is vital, because without suitable treatment, the waste water we produce every day would damage the water environment and create problems for public health, water resources and wildlife. The proper collection, treatment and discharge of waste water, and the correct disposal of the resulting sludge, helps to protect, maintain and improve water quality in the UK.

The criterion that we have used in the national policy statement for the demonstration of the need for nationally significant infrastructure projects is that the projects have been included in the Environment Agency’s national environment programme. The Environment, Food and Rural Affairs Committee recommended that that issue needed to be clarified and I believe that our approach now addresses its concerns.

In addition to establishing the need for waste water infrastructure, our national policy statement sets out impacts that will be relevant for any waste water infrastructure, including details on mitigating adverse impacts. Those are issues that the Planning Inspectorate and Ministers will have to have regard to when examining and determining applications.

The national policy statement does not describe how any waste water projects of national significance should be developed. I think that this addresses in part the point made by the hon. Member for Hammersmith (Mr Slaughter). How such projects are developed is up to the project promoter before they place an application for development consent, which from April this year will go to the Planning Inspectorate.

The waste water national policy statement details two proposed projects of national significance: the sewage treatment works scheme at Deephams in north-east London and the Thames tunnel. The justification for both developments and the consideration of alternatives to the Thames tunnel are fully explained in the document.

Currently, only the proposed upgrade of the Deephams sewage treatment works can be considered a potential nationally significant infrastructure project, as it meets the criteria in the Planning Act 2008 for waste water treatment facilities serving a population equivalent of 500,000 people. We will shortly lay a draft order before Parliament for its approval, to amend section 14 of that Act to enable a waste water transfer and storage project such as the Thames tunnel to be classed as a nationally significant infrastructure project.

London’s sewerage is under considerable pressure, due to a system that is close to capacity, changing land use in London and population expansion. That leads to frequent spills of untreated waste water containing sewage into the tidal reaches of the Thames, which has a negative impact on its water quality. Resolving that problem has been the subject of extensive and comprehensive studies, including the consideration of a wide range of alternative solutions, for more than a decade. As a result, the Government are satisfied that the development of the Thames tunnel, when compared with the alternatives, is the most cost-effective and timely solution to the problem of untreated sewage discharging into the River Thames. That is demonstrated in the waste water national policy statement.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

One of the arguments that the Minister has just made is that the proposed tunnel is the most cost-effective way of dealing with the problems in the Thames. Can he point me to any cost-benefit analysis that has happened in the last couple of years, since the initial study was made in 2006 and since the cost of the project has risen from £1.7 billion or thereabouts to £4.1 billion?

[Richard Benyon]

Like my right hon. Friend, I am concerned about the cost of the project. That is why my Department has instructed Ernst and Young to advise it in detail on the cost-benefit analyses that have been carried out to date, recognising, of course, that not far off a quarter of the estimated price is a contingency. It is important that throughout the process we are open about the figures that are arrived at. These matters concern not just his constituents and those of other London Members but 144 Members whose constituents pay Thames Water bills, of whom I am one.

I can assure my right hon. Friend that, as I said in last week’s debate, Ministers remain healthily sceptical about the cost of the project. We want to ensure that it provides value for money, and I am happy to tell him that cost-benefit analysis will be an ongoing process. I assure him that the alternatives that we have examined, which may be more attractive on the face of it, such as retrofitting sustainable urban drainage systems across London or separating clean water from dirty, cannot compare favourably with the cost of the tunnel. Indeed, one of the options that I have seen would come in at somewhere between three and four times the cost of the Thames tunnel scheme. I take the matter very seriously and will be happy to keep him informed of our progress.

Water Industry (Financial Assistance) Bill

Debate between Lord Benyon and Simon Hughes

Tuesday 6th March 2012 Commons Chamber

[Richard Benyon]

I thought that the hon. Gentleman was going to make a helpful intervention, but he made his point eloquently once again.

The alternative proposal for a shorter western tunnel would allow large volumes of raw sewage to continue to flow into sections of the Thames—exactly what the Thames tunnel is designed to avoid. It is clear that the public do not want raw sewage going into this iconic river through one of the most important cities in the world.

In what I must say was a great speech, we heard from my hon. Friend the Member for Hendon (Mr Offord) about how serious is the issue of combined sewer overflows—not just in London, but around the country. He added his own perspective on other elements of the Bill. I can assure him that combined sewer overflows are monitored robustly and that action is taken where permits are breached or problems with the environment are identified. Beyond the Thames tunnel, some £1 billion is being invested further to reduce the impact of combined sewer overflows across the country.

We are ever mindful of the costs involved in the Thames tunnel project. We remain convinced that there is an economic case for it. Part of it is Thames Water’s estimate that the project would directly employ about 4,250 people in the construction and related sectors, as well as providing further secondary employment. The Thames tunnel team actively support the Crossrail Tunnelling and Underground Construction Academy, which is currently training and gaining employment for 70 apprentices a year. Following the Crossrail model, the Thames tunnel project will specify in its contracts the level of apprentices that will be employed by the contractors.

Let me say that I remain sceptical on cost, which is where I believe Ministers should be on a project of this size. We are receiving the best possible advice, and the work will be ongoing. I cannot possibly stand here and say now that costs will definitely be pegged at the current estimated level, but we will try to deliver this project within budget and effectively for the people of London and the country as a whole.

[Simon Hughes]

Will the Minister allow me?

[Richard Benyon]

I am sorry, but I am a bit short of time, and I may be about to answer the point. Despite the concerns raised by my right hon. Friend the Member for Bermondsey and Old Southwark, Ofwat regulates the ring-fenced regulated businesses and ensures that customers receive value for money from them. Who ultimately owns that ring-fenced business makes no difference to customers; the licence conditions attached to the ring fence provide the necessary protections. Thames Water’s structure is similar to that of several other water companies.

We heard eloquent and passionate speeches from the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock) and from the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), reminding us of the potential impacts of the tunnel’s construction on their constituents. I remain ready to work with them to try to minimise the impacts in any way I can. I am very conscious of the effect that it can have on communities.

My hon. Friend the Member for Thirsk and Malton (Miss McIntosh), my right hon. Friend the Member for Bermondsey and Old Southwark and the hon. Member for Edmonton (Mr Love) asked for an opportunity to amend the waste water national policy statement. We are, of course, happy to have a debate on the policy statement, and, like other debates in the House on national policy statements, it would be a yes or no debate. Best endeavours are being made to ensure that it is held before the Easter recess, and I hope that that provides the necessary reassurance. As for the other project to which the policy statement refers, the Deephams sewage treatment works, Thames Water intends to begin the phase 1 consultation in about June this year. It is still working on a preferred option, and aims to submit a planning application in late 2013 or early 2014.

The hon. Member for Wakefield (Mary Creagh), the shadow Secretary of State, sometimes reminds me of someone having a fight in a pub when the lights have been turned out. She flails around in all directions, and causes as much damage to her mates as to anyone else. She had to intervene later in the debate to tell us that she was, in fact, supporting the Bill, which is a great relief. That was underlined by the hon. Member for Luton South (Gavin Shuker), and we are grateful for his support as well.

Despite the concerns raised by the shadow Secretary of State, the powers in the Bill are appropriately drafted. Although we currently have no plans to use those powers other than to assist South West Water customers and in relation to the Thames tunnel, we heard many calls today—including, again, calls from Opposition Members—for us to legislate to help reduce the problems of water affordability around the country, and to invest in new infrastructure to help make the country more resilient to droughts in future. As the water White Paper made clear, given our growing population and changing climate, our need for infrastructure investment will not diminish. We should leave ourselves the flexibility to offer similar Government support to future projects if the case is strong. However, it is inconceivable that any nationally significant infrastructure project would proceed with Government backing unless the case had been fully debated, as the Thames tunnel project is at present.

Let me repeat the Secretary of State’s commitment: we will publish a draft Water Bill for pre-legislative scrutiny in the coming months, and it will cover the remaining legislative commitments set out in the water White Paper. The market reform proposals in the White Paper will be a key part of the Bill, and are a direct response to Martin Cave’s invaluable report.

In the few seconds that I have left, I want to talk about affordability. One of the necessary provisions is the ability for us to issue guidance on water company social tariffs, so we can address the issue of water affordability nationally. The reduction in South West Water bills to which we are committed addresses an exceptional historic unfairness, but we recognise that many people in the south-west and elsewhere are struggling to pay their water bills. We are encouraging all water companies to introduce social tariffs to reduce those bills in order to help people who would otherwise struggle to pay them, and we will publish final guidance on the design of the tariffs in the spring.

My hon. Friends the Members for St Ives (Andrew George) and for Newton Abbot (Anne Marie Morris) were keen for us to expand the existing reach of the WaterSure scheme. I assure the House that we have considered that carefully, but, as Members will appreciate, we have to make tough decisions about the use of limited public funds.

Oral Answers to Questions

Debate between Lord Benyon and Simon Hughes

Thursday 3rd February 2011 Commons Chamber

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

15. What steps she is taking to reduce fish discards; and if she will make a statement.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

I refer my right hon. Friend to the answer that I gave earlier.

[Simon Hughes]

I listened to the Minister’s earlier answers. Fish, like forests, are of as much interest in Bermondsey and Southwark as anywhere else in Britain. What is he doing not only to deal with the common fisheries policy, but to ensure that people at home understand the benefits of eating more fish, particularly sustainably caught fish, so that they can both be healthier and help to solve this Europe-wide failure?

[Richard Benyon]

The Fishing for the Market project, which is being carried out by DEFRA, analyses the 54% of discards that are created because there is no market for those fish. Some of them are perfectly edible delicious fish, such as dab. We must also ensure that the public ask for Marine Stewardship Council accredited fish, which can be bought at the fishmonger and the supermarket. Supermarkets are the key to driving forward this agenda.