Water Companies: Water Pollution

Lord Cromwell Excerpts

Wednesday 1st March 2023 Lords Chamber

[Lord Benyon (Con)]

We are asking water companies to spend a lot more—£56 billion. In this period alone, they are putting an extra £7 billion into investment in infrastructure. Water companies make a profit of about 3%. This is not dramatic, compared with what some other companies make, but we watch it very carefully through the instructions we give to Ofwat. We want to make sure that customers are getting a good deal but, more importantly, that there is investment going into infrastructure.

[Lord Cromwell (CB)]

I wonder if the Minister is aware that, in two weeks, the Industry and Regulators Committee of this House will be producing its own report into governance and regulation in the water and sewage industry. This will clearly be of interest to many in this House. Can the Minister confirm that putting right the sort of problems we are talking about is going to take decades, not years? Can he also confirm that the money for it will not be public money, but that the companies themselves will raise money in the City, take on debt and possibly put up water bills?

[Lord Benyon (Con)]

At a time of concern about household expenditure, it is important that we balance water bills. It is always a balancing act. We want to make sure that, with an average bill at just above £1 a day to provide all the water a household needs and to have all the sewage taken away, water companies can invest in the necessary infrastructure. Most importantly, during the next decade or two, we must eliminate rainwater getting into sewage. This is the challenge. At the moment, we have water coming off roofs and going into Victorian or Edwardian sewers. Many of them have been updated and improved, but billions of pounds still need to be spent to tackle this recurring problem.

Agricultural Transition Plan

Lord Cromwell Excerpts

Wednesday 1st February 2023 Lords Chamber

[Lord Cromwell (CB)]

My Lords, I declare my farming interests. I very much enjoyed the Minister’s upbeat presentation on the situation in agriculture, but I know that, from his own farming experience, he will empathise with the fact that any farming business is a complex series of ecosystems that interact with each other, and a decision on one will affect others in many different ways. Therefore, can he help me by explaining why the Defra strategy appears to be to drip out bits of the environmental programme, for example, piece by piece? One month it is soil, the next month it is hedgerows. Farmers, who are trying to feed the nation and improve the environment, find it impossible to plan a business when these bits of information are dropped out on a fragmentary basis, as I understand it, right out until 2025.

[Lord Benyon (Con)]

There are two reasons for that. First, we have a programme of tailing out the basic payment scheme and replacing it with ELMS. That requires us to manage the public money properly. Secondly, we want this to be an iterative—a wonderful Civil Service word—process that responds to our understanding of real life. We have had our tests, trials and pilots and have learned from them. In the autumn we had a serious tyre-kicking session on this, which drew some criticism. I can understand why; people were very nervous that we were going to do a screeching U-turn, but we have not. Out of that has now come the announcement of six, as opposed to three, new standards—because farmers wanted to know precisely what the noble Lord said.

It takes time to get this right because, as he says, it is about people’s livelihoods and businesses, and they want to be able to plan for the future. I think farmers much prefer that—or will in hindsight, when they look back on this era—to some big bang moment where we stop one scheme on 31 December and go into another on 1 January. By and large, when Governments have tried that across a whole range of different reforms in different departments, it has been a disaster. We have tried to do this over many years, and in time farmers will understand that they have been able to migrate from one system to another. As a farmer, that is certainly what I want; I understand if other farmers have different views. I want a Government who listen to farmers and change accordingly, and that is what we have tried to do.

Pollution: Rivers and Beaches

Lord Cromwell Excerpts

Monday 30th January 2023 Lords Chamber

[Lord Benyon (Con)]

The statistic is absolutely right—I can remember seeing it and being stunned that the Government prior to the coalition Government had no idea about this. They knew about only 5% of the storm overflows, so we set about getting that data. If the person quoted in the other place said 100%, it is not quite that but it is nearly there: we are in the 90s, and by the end of this year the figure will be 100%. If the telemetry we require to measure the quality is not working, I am happy to take any cases up with the Environment Agency and make sure that we are applying this.

[Lord Cromwell (CB)]

Can the Minister tell me how long this will take? I believe the £56 billion that he referred to will take about 25 years to roll out and invest. When will we be able to see a visible difference?

[Lord Benyon (Con)]

We have announced our targets in the provisions of the Environment Act—some of those are for 2035, and some are for 2038—and we will review them in 2027 to see how they are going. There are others that are more long term. There was an unfortunate mistake in a regret amendment last week, in which it was claimed, somehow, that we are pushing this out to 2063. What is absolutely true is that we are sticking to the requirements of the water framework directive, as we did when we were in the EU. We are emboldening that with other provisions, such as the ones in the amendments to the Levelling-up and Regeneration Bill. So, there is a degree of urgency because we want these matters to be dealt with as quickly as possible. I urge the noble Lord not to listen to what was claimed in the regret amendment last week.