Water Industry Act 1991 (Amendment) Order 2024

Lord Douglas-Miller Excerpts

Monday 19th February 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Water Industry Act 1991 (Amendment) Order 2024.

Motion agreed.

Water Industry (Special Administration) Regulations 2024

Lord Douglas-Miller Excerpts

Monday 19th February 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Water Industry (Special Administration) Regulations 2024.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, these regulations and the Water Industry Act 1991 (Amendment) Order are part of a package that updates the water industry special administration regime legislation. The package is made up of two commencement orders and three statutory instruments. The first commencement order was made on 11 January and the two affirmative statutory instruments being debated today were laid in draft on 15 January. The second commencement order and the negative resolution statutory instrument will follow shortly after the affirmatives are debated.

The purpose of these statutory instruments is to enable the Government to facilitate a more effective water industry special administration regime. They apply to England and Wales, and ministerial consent has been secured where necessary. The Government already have powers in the Water Industry Act 1991 to apply to the High Court for a special administration order. However, updates are required as the current legislative regime is outdated and modelled largely on the Insolvency Act 1986, which has since been modernised. The most notable legislative updates were the Enterprise Act 2002; the Small Business, Enterprise and Employment Act 2015; and the Insolvency (England and Wales) Rules 2016. These updates to insolvency legislation are not automatically applied to the legislative framework of the water industry special administration regime. Instead, the Government must assess how to adapt these insolvency law changes to each industry’s specific special administration regime. Legislation relating to special administration regimes is laid periodically; recent examples of this are the Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021 and the Energy Act 2023.

It is vital that the Government are prepared for a range of scenarios, particularly regarding the continued provision of public services. This is why an updated water industry special administration regime is so important. I want to make it clear that the two main grounds on which a water company can enter special administration are unchanged by this legislation. They are insolvency, where a company may be unable to pay its debts or its liabilities are greater than its assets; and performance, where the company has failed to carry out its statutory functions or licensed activities to such an extent that it is inappropriate for the company to continue to hold its appointment or licence. During a special administration regime, customers’ water and wastewater services will continue to be provided.

The first statutory instrument for noble Lords’ consideration is the draft Water Industry Act 1991 (Amendment) Order 2024. This order implements hive down provisions through amending Schedule 2 to the Water Industry Act, which makes provision about transfer schemes upon the termination of an appointment or the transfer of a licence for a water industry company and is amended by this order to include provisions about transfer schemes in cases where there is a transfer by hive down. This amendment is necessary to ensure that the hive down provisions commenced last month by the Flood and Water Industry Act 2010 (Commencement Order 10) Order 2024 are fully operable. Hive down is a common commercial restructuring practice to ring-fence value and attract potential buyers. This amendment allows the administrator to hive down the regulated business to a subsidiary in order to protect its business and facilitate a sale process that may be more attractive to a potential buyer.

The second statutory instrument that I ask the Committee to consider today is the Water Industry (Special Administration) Regulations 2024. This instrument will apply, disapply and modify general insolvency provisions as they apply in relation to water companies, including licensed infrastructure providers, and special administration orders made in respect of those water companies under the Water Industry Act 1991.

These regulations make general modifications to the Insolvency Act 1986 and other enactments about insolvency provisions, alongside specific modifications to Schedule B1 to that Act. The amendments adapt Parts 26 and 26A of the Companies Act 2006 via specific modifications for the purpose of the water industry special administration regime and amend Section 26 of the Water Industry Act, and Schedule 1 to the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013. In addition, this set of regulations will give government the power to lay a negative statutory instrument in the coming weeks, which will revoke the Water Industry (Special Administration) Rules 2009, replacing them with updated special administration rules for water companies, based on the 2016 general insolvency rules.

These statutory instruments update the water industry special administration regime legislation to ensure that, should a water company ever be required to go into special administration, a modern, efficient water industry special administration can be implemented. I am grateful for the support of the Committee and am happy to take questions, which I will endeavour to answer in my closing speech.

[Baroness McIntosh of Pickering (Con)]

My Lords, I am most grateful to my noble friend Lord Douglas-Miller for setting out the content of the SIs before us. I am in great support of them and have just a couple of questions to press my noble friend on.

When my noble friend set out the circumstances behind these instruments, he seemed to indicate that we are just putting into effect existing legislation here and updating it. I would just query the timing of this, which was also queried in the House of Commons when these measures were debated there. At the moment, there are additional investments that we are, rightly, asking water companies to make and which are of a very high order: £60 billion of capital investment over 25 years for storm overflows and other investments such as the self-monitoring programme, which was embarked on under the Labour Government and which we vigorously and enthusiastically pursued. Might these additional responsibilities on water companies be causing the Government some concern, or is it literally about putting in and updating the background, as my noble friend set out? Obviously, we all want to ensure that the water companies are fulfilling the legitimate investment that we have asked them to make.

I have a rather cheeky question. My noble friend knows of my interest in Schedule 3 to the 2010 water Act. Why has Schedule 5 been preferred to be implemented before us in these instruments, and when might we get the orders implementing Schedule 3 to the same 2010 Act? That would put into place the sustainable drainage systems and end the automatic right to connect, which has been called for since the Pitt review and surface water flooding of 2007. That is my rather cheeky interjection, which my noble friend might either want to respond to today or write to me on.

Parallels have been drawn in the report before us with energy companies. When energy companies have failed over the last two or three years, the existing customers of a company which was asked to take on the customers of a failed energy company have found, regrettably, that their tariffs and charges have gone up. This is obviously a matter for Ofwat, but can the Government give any undertaking to customers in the event of a water company failing—which, heaven forfend, we would not wish to see—so that, essentially, what happens in the water sector will not be what we saw happen in the energy sector?

--- Later in debate ---

Having said all that, as I mentioned earlier, we support these SIs. We think they are important, but we need to ensure that there is proper consideration of how water companies manage their environmental responsibilities.

[Lord Douglas-Miller (Con)]

I thank noble Lords for all their questions, which I will now endeavour to have a go at, and for their very welcome support for these instruments. As I mentioned in my opening speech, these statutory instruments will enable the Government to facilitate a more effective, efficient water industry special administration regime, ensuring that we are prepared for all eventualities to ensure the uninterrupted provision of vital services. A number of noble Baronesses touched on that today.

I will start with the several questions asked by the noble Baroness, Lady McIntosh of Pickering. I might have three out of four answers for her; the second one probably eluded us all.

Everyone will be aware that there has been some recent instability and speculation around the financial resilience of some of our companies in the water sector. This has led Defra to carry out due diligence work on our water industry special administration regime legislation. This exercise identified unmodernised provisions in the current legislative framework. These statutory instruments update water industry special administration regime legislation to ensure that it reflects modern insolvency practices, as is the case for special administration regime legislation for other public services. Ensuring that legislation on special administration takes account of modern insolvency and business practices is important, regardless of the financial resilience of the sector, to ensure proper preparedness.

The noble Baroness, Lady McIntosh, also asked whether customers will be paying for water companies’ failures. I think that was the gist of her question, which cropped up in a number of noble Lords’ concerns. I want to make it clear that we will always act to protect consumers as a priority. Any intervention that puts pressure on the public purse will be considered very seriously and only as a last resort. The purpose of being able to utilise a more efficient insolvency practice is to protect consumers and ensure not only that they do not pay for those mistakes but, more importantly in the short term—a point raised by the noble Baroness, Lady Hayman—that we can provide that service. We can have an argument later about who paid for what and whether somebody needs some money back, but it is crucial that that service—water and wastewater—is delivered for everybody. That would be critical if we had to go through an insolvency, so I reassure the Committee on that front.

The final question that I can answer from the noble Baroness, Lady McIntosh, is whether the public would end up paying to bail out a company in special administration. I again make it clear that we will always act to protect consumers as a priority and that, as I have said, any intervention that puts pressure on the public purse would be considered very seriously and as a last resort.

The noble Baroness, Lady Bakewell, asked a lot of questions. I am not sure that I will get to all of them but I will reflect on the ones I have missed and make sure that she gets a written response. The first question was about the Government’s position on Thames Water. As the noble Baroness is probably aware, water companies are commercial entities; it is not appropriate for me or any member of the Government to comment on the position of a specific company. It is for the company and its investors to manage the company’s financial resilience in the context of its licence and broader statutory obligations.

The second question was about why no companies are listed in Ofwat’s leading category, or how many are failing—I think that was the gist of the noble Baroness’s question. It is clear from Ofwat’s performance report that there has been a marked decline in the performance of a number of water companies over the past year or so. This has been driven by company-specific factors but also by the effects of extreme weather, including an unusually hot, dry summer and a winter that brought multiple freeze-thaw events in 2022 and 2023. There are also live enforcement cases against six companies, which precludes a leading rating where an enforcement case is under way. Specifically, there was a question on how many companies we think are going to fail; I am not aware of any companies that are about to fail. I do not have any information on that at all.

The third question was about why the hive down provisions have been introduced. Without them, only a direct sale of assets would be possible. This is likely to be much more expensive and complex to implement from a tax perspective as you would not benefit from the no-gain, no-loss treatment on transfer. It is probably also important to recognise that, if you get to the point of insolvency, the quickest route to providing the services that are absolutely critical is to package up what the company has to deliver in that hive down and get it back into the hands of somebody who can operate the business in the most effective way. Tying it up, with all the debt and the other complications that go with an insolvency, will just complicate and delay the issue.

I turn to the question from the noble Baroness, Lady Bakewell, about breaching environmental standards. As I stated in my opening speech, a water company can be placed into special administration on performance grounds where there is either a serious breach of their principles or statutory duties or an enforcement order that it is no longer appropriate for it to continue to hold its licence. One of the principal statutory duties held by a water company is under Section 94 of the Water Industry Act 1991, which says that a water company has a duty to deal with the contents of sewers effectually and provide the necessary infrastructure for that purpose, including meeting the requirements of the Urban Waste Water Treatment (England and Wales) Regulations 1994. This is key as, without treatment, urban wastewater has significant adverse impacts on our water environment.

Finally, the noble Baroness, Lady Hayman, asked a number of questions. I think I have touched on a few of them as I have gone through here. One of the issues that she focused on specifically was how Ofwat will regulate underperformance. Following the publication of its performance report in November 2023, Ofwat published the financial penalties and payments for all water companies. Ofwat required 13 companies to return £193 million to customers for underperformance in 2022-23. This money will be returned to customers through bills over the 2024-25 year. On the action that the Government are taking on underperformance, industry performance is below the level that the Government and regulators expect and the Government are taking action, alongside Ofwat, as we progress.

[Baroness McIntosh of Pickering (Con)]

Both the noble Baroness, Lady Bakewell, and I asked about the unusual position in which we will find ourselves, where a subsidiary company can be set up, meaning that the company is not competitive or living up to its responsibilities financially. I drew the parallel with chapter 11. Is this the first time that we have done this in the UK or is there another parallel? My noble friend could write to me on this.

[Lord Douglas-Miller (Con)]

It might be easier if I wrote specifically on that. Is my noble friend referring to the special administrator’s duties?

[Baroness McIntosh of Pickering (Con)]

If I have understood correctly, if a subsidiary company is set up for the purposes of the company continuing to act, does that mean, as with chapter 11, that it does not need to pay off its creditors or debtors? Is this the first time that it has happened in this country?

[Lord Douglas-Miller (Con)]

I am a little unsure on that, so perhaps the best thing for me to do is write.

I think we have covered the questions for which I have answers, and I will write to the noble Baronesses on a number of other questions. With that, I commend these instruments to the Committee.

Motion agreed.

Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) Regulations 2024

Lord Douglas-Miller Excerpts

Wednesday 14th February 2024 Lords Chamber

Moved by

[Lord Douglas-Miller]

That the draft Regulations laid before the House on 12 December 2023 be approved.

Considered in Grand Committee on 13 February.

Motion agreed.

Food Import Requirements

Lord Douglas-Miller Excerpts

Wednesday 14th February 2024 Lords Chamber

[Baroness Hayman of Ullock]

To ask His Majesty’s Government what assessment they have made of the impact of new food import requirements on (1) domestic producers, and (2) food safety.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, the controls set out in our new border target operating model, BTOM, represent a comprehensive assessment of the biosecurity and public health risks presented by imports, together with the risks of relevant pests and diseases. They allow us to assess our confidence in the exporting country’s production standards and health controls. The BTOM aims to strike the right balance between allowing trade to flow and protecting our domestic producers from threats such as African swine fever.

[Baroness Hayman of Ullock (Lab)]

My Lords, April’s post-Brexit import controls come after numerous delays and redesigns, and against a backdrop of a shortage of vets to check consignments and hauliers to move them. The port of Dover is concerned that the decision to have physical checks so far from its border will enable illicit activity between the two sites. Domestic producers are worried that, as they face higher input costs and labour shortages, EU farmers will be able to undercut them. How can the Minister guarantee that British farmers will benefit from these reforms and that there will be no undermining of our high welfare and food safety standards?

[Lord Douglas-Miller (Con)]

I thank the noble Baroness for her extensive question. The purpose of the BTOM is to provide that balance between the necessity to check for our biosecurity and allowing trade to happen. Specifically on Sevington, since 2022 the Government have provided funding to all port health authorities, including Dover, to support Border Force, which has the responsibility for checks on illegal imports. The Government recognise the rise in illegal imports, particularly pork, from eastern Europe, which is why we continue to provide additional funding to district port health authorities. With the introduction of BTOM, many of the Dover Port Health Authority’s duties and associated costs will move to Sevington, including the commercial trade checks that are being implemented, hence the reduced funding package for Dover.

[Lord Deben (Con)]

Does it not sound like Mrs Thatcher’s belief in the single market was a good idea? Should we not recognise that and stop this nonsense now?

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[Lord Douglas-Miller (Con)]

I thank my noble friend. The last time I checked, we collectively voted to leave the European Union. The Government’s job is to implement the biosecurity checks to make sure that we are protected—not just our farmers and our consumers but the trade deals, which are worth billions of pounds a year to the UK economy.

[Lord Hannay of Chiswick (CB)]

My Lords, could the Minister find in his briefing pack the several occasions on which the European Affairs Committee of your Lordships’ House has recommended that there should be an SPS agreement with the European Union? If he looked at that, could he answer this question: how many of the new controls being imposed would be required if we had an SPS agreement with the European Union?

[Lord Douglas-Miller (Con)]

The noble Lord raises a very good point. I do not have the exact details of the requirement he is asking for, so perhaps the best thing I can do is write to him on that.

[Lord Bellingham (Con)]

My Lords, I declare my interests in the register. The Minister will be aware that we import 45% of the food in this country, and surely one of the lessons from the Ukraine war is the added emphasis on food security. Can the Minister say something about import substitution, and can he also give the House some assurance that the sustainable farming incentive does not always prioritise environmental schemes over food production?

[Lord Douglas-Miller (Con)]

I thank my noble friend for his question. The Government take the issue of food security extremely seriously, and we are absolutely committed to producing high-quality British food for British consumers. Getting the balance right between what we produce through our SFI programme—or our ELMS programme, I should probably say—is a fine judgment between getting the environmental and biodiversity improvements we all want to see, and producing food for the country.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, with beef and pork exports to the EU down by more than 20%, and the import of apples down 16.8% and oranges down 18.2%, what steps are the Minister and his Defra colleagues taking to ensure that, first, British farmers are not going out of business, and, secondly, supplies of essential foods are protected for the British consumer?

[Lord Douglas-Miller (Con)]

I thank the noble Baroness for her question. As I say, the Government are completely committed to domestic food production. I do not see that the introduction of the BTOM system has any bearing on what we import or export into or out of the UK.

[Lord Berkeley (Lab)]

My Lords, the Minister recently announced that meat imported through Dover will be checked at Ashford, which is about 15 miles upcountry. How is anybody going to stop the trucks from going straight up the motorway rather than turning left at Ashford? Will there be any enforcement, or are they just trusting people?

[Lord Douglas-Miller (Con)]

I thank the noble Lord for his question. It is important to differentiate between what is happening at the port of Dover and what is happening at Sevington. If you go to Sevington, you follow a system by completing the new electronic IPAFFS, which is designed for commercial imports. What is checked at Dover by Border Force is illegal imports. Now, you are not going to be sent to Sevington if you are illegally importing something; you go to Sevington only if you are following the Government’s designated procedures.

[Lord Lexden (Con)]

My Lords, has Brexit given any kind of boost to the production of apples in our country —those wonderful varieties Coxes, Pippins, Beauty of Bath and so on? I must say that I have not noticed any change since 2020.

[Lord Douglas-Miller (Con)]

I thank my noble friend for the question. I am afraid I am not an expert on apple varieties across the UK, but I know that there has been quite a lot of emphasis in government policy of late to widen the breadth of our different types of seeds and trees. I am sure that apples will be on the list; I will check for him.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, may I take the Minister back to his answer to the question from my noble friend Lord Berkeley? Perhaps I am very stupid, but I found it quite difficult to understand what he was telling us about the difference between what will happen in Dover and what will happen at the new facility outside Ashford. If people are being checked at Dover, what is then happening at Ashford? What is to prevent—this is the question he was asked—lorries leaving Dover that should be going to Ashford not doing so?

[Lord Douglas-Miller (Con)]

I hope I can clarify that for the noble Baroness. If you are commercially importing goods into the UK, you are following a system where you fill out an electronic form and that form identifies whether you are in the high, medium or low-risk category and whether you are going to be selected for a check at Sevington. When you arrive at the Port of Dover in your lorry, you will be notified that you have been selected for a check, and that information goes from the Port of Dover to Sevington. Sevington is then expecting to see the delivery arrive there shortly thereafter. That is entirely different from a white van arriving with illegally imported products—let us just call it pork—from eastern Poland. That is checked by Border Force at the port of Dover. So you have Border Force and you have border control posts, and they perform different functions.

[Lord Fox (LD)]

My Lords, can the Minister confirm whether the necessary professionals are still being recruited in order to provide this service? What percentage of capacity will be available on day one? Will it be 100%, 50% or what?

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[Lord Douglas-Miller (Con)]

I thank the noble Lord for his question. Having been down to visit Sevington myself, I can assure him that we are in the advanced stages of recruitment there. I fully anticipate that, by the time we are up and running for checks at the end of April this year, we will have a full complement of staff. As to whether we are going to go straight to 100% checks, the answer to that is no, we are probably not. We are going to monitor the situation and will be in control, through the IPAFF system, of the number of vehicles that we direct to Sevington for their checks.

Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) Regulations 2024

Lord Douglas-Miller Excerpts

Tuesday 13th February 2024 Grand Committee

Moved by

[Lord Douglas-Miller]

That the Grand Committee do consider the Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) Regulations 2024.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, these regulations were laid in draft before this House on 12 December 2023.

The purpose of this instrument is to make provision to ensure that the United Kingdom, as a member of the International Commission for the Conservation of Atlantic Tunas, henceforth referred to as ICCAT, can continue to meet the full range of its international obligations in relation to the convention which governs ICCAT. The UK has an obligation under the United Nations Convention on the Law of the Sea to co-operate on the management of shared fish stocks, including through appropriate regional or sub-regional organisations. ICCAT is one such example. It is responsible for ensuring that fisheries for tunas and tuna-like species, such as swordfish, in the Atlantic Ocean are managed sustainably. The UK became an independent contracting party to the convention—in other words, a member of ICCAT—on 1 January 2021, after depositing an instrument of accession following EU exit.

As a member of ICCAT, the UK must ensure that we are able to implement and enforce binding measures, known as recommendations, which are agreed by contracting parties under the convention. The UK must ensure that our domestic laws fulfil these international obligations. This instrument updates and amends various regulations of retained EU law to implement recommendations adopted by the commission immediately prior to and since the withdrawal of the UK from the EU. Where appropriate, this instrument also makes amendments to reflect the UK’s status as an independent coastal state.

I will now go through each element of the regulation in turn to briefly explain the amendments being made to retained EU law. Regulation 2 of the instrument removes provisions from Council Regulation 1936/2001, which laid down control measures applicable to fishing for certain stocks of highly migratory fish. It also included provisions that regulated the farming of bluefin tuna. The UK, however, does not farm bluefin tuna. These provisions have therefore been removed as they are not relevant to the UK.

Regulation 3 amends Council Regulation 1984/2003. It now correctly reflects the convention’s requirement for a statistical document to accompany imports of swordfish and bigeye tuna into the UK. Other amendments are made for clarity and to ensure that the amended provisions are enforceable. For example, amendments to the description of fish captured no longer reference the 1984 version of the EU’s combined nomenclature. They are instead replaced with references to the UK commodity codes used in the UK’s customs tariff.

Regulation 4 of this instrument updates Regulation EU 640/2010 to mandate the use of an electronic catch documentation system for bluefin tuna, replacing the use of clerical documents. Further amendments are made to ensure that the new requirements are clear and enforceable, as well as outlining the limited circumstances in which a paper catch document may be used instead of the electronic system.

Regulation 4 also amends the descriptions of fish captured within Regulation EU 640/2010. These descriptions have been updated with references to the commodity codes found in the UK’s customs tariff. This amendment makes the description of fish clear and ensures that the regulation is enforceable.

Regulation 5 removes provisions in Commission Delegated Regulation EU 2015/98, which established derogations from landing obligations in order to fulfil ICCAT requirements. Instead, these provisions are covered in Regulation EU 2016/162. Removing these provisions from Commission Delegated Regulation EU 2015/98 avoids duplication and provides clarity.

Regulation 6 of this instrument amends Regulation EU 2016/1627, which implemented ICCAT’s multiannual recovery plan for bluefin tuna in the eastern Atlantic and the Mediterranean. Since the recovery plan was introduced, I am pleased to say that stocks of bluefin tuna have improved significantly. The recovery plan has now been replaced with a multiannual management plan. Regulation 6 therefore comprehensively amends Regulation EU 2016/1627 to ensure that it correctly reflects the UK’s obligations under ICCAT in relation to the management plan and the UK’s catch quota.

A multiannual recovery plan was also developed for the management of swordfish in the Mediterranean. The EU gave effect to the recovery plan under Regulation EU 2019/1154, which was retained in our domestic legislation at the point of EU exit. However, as these provisions relate to swordfish in the Mediterranean, Regulation 7 of this instrument revokes the substantive provisions of Regulation EU 2019/1154 as they are not relevant to the UK.

Regulation EU 2019/1241 sets technical measures for the conservation of fisheries resources and the protection of marine ecosystems. Regulation 8 of this instrument amends Regulation EU 2019/1241 to insert minimum conservation reference sizes for bluefin tuna specified under the convention. By making this amendment, all minimum conservation reference sizes will be specified within one regulation rather than contained in different pieces of retained EU law, ensuring clarity within our domestic legislation.

In addition to amending retained EU law, Regulation 9 of this instrument amends the Common Fisheries Policy and Aquaculture Regulations 2019 to remove references to obsolete legislation. Specifically, amendments have been made to remove provisions relating to retained EU law; they have been removed and replaced with Regulation EU 2017/2107, which lays down management conservation and control measures within the conservation area of ICCAT.

The devolved Administrations are supportive of the amendments made in this instrument, ensuring that the UK can continue to meet in full its obligations as an independent contracting party to the ICCAT convention. If this instrument is not passed, the UK will not only fail to meet its international obligations under the convention; by not implementing enforceable management and traceability systems, we risk undermining efforts made over the past 17 years to ensure the sustainable management of Atlantic bluefin tuna stocks.

I hope that I have reassured all noble Lords on the purposes and aims of this statutory instrument, ensuring the continued sustainable management of this important fishery. For the reasons I have set out, I commend the regulations to the Committee. I thank noble Lords for their attention and remain at their disposal for any questions or discussion on this matter.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister for his introduction to this statutory instrument, which covers the International Convention for the Conservation of Atlantic Tunas, known as the convention.

While a member of the EU, the UK had no quota for tuna and tuna-like species. However, following Brexit, we are entitled to a quota as tuna stocks have apparently improved. The SI makes changes to retained EU law in eight previous sets of regulations, including the Common Fisheries Policy and Aquaculture (Amendment etc.) (EU Exit) Regulations 2019. That is quite a lot of change and I am grateful to the Minister for going through each of the eight sets of regulations.

Paragraph 7.2 of this instrument’s Explanatory Memorandum explains how the UK has acquired a quota for bluefin tuna

“as an independent contracting party … in line with the UK-EU Trade and Cooperation Agreement”.

From hereon in I shall refer to “BFT” because, as noble Lords can hear, I am getting tongue-tied in saying “bluefin tuna”. Despite not stating what the quota is, the EM indicates how the requirements will apply to UK fishing vessels catching BFT in the convention area; this includes the

“offence, penalty, and enforcement provisions”,

which

“have been added directly to relevant retained EU law to avoid … ambiguity as to whether existing enforcement provisions would apply to the newly amended provisions”.

A read through the government website’s guidance gives information about the size and length of the vessels, as well as the bait, to be used for catching BFT. It also gives detailed information about how such catch can and cannot be landed, including returning undersized live tuna to the sea, recording all catch and keeping on board dead catch for which there is no authorisation for landing.

However, it is not exactly crystal-clear. According to the government website, but not the EM, the BFT quota allocated in 2023 was 65 tonnes—an increase on the quotas for 2021 and 2022. The UK is to use 39 tonnes of that quota to trial a new, small-scale commercial fishery to see whether it will benefit UK fishers. Assuming that the 2024 quota remains the same as the 2023 one—65 tonnes—this leaves 26 tonnes of BFT to be distributed between a possible 10 available licensed authorisations. I am neither a commercial fisher nor a recreational one, but it seems to me that potentially receiving only just over 2 tonnes of the BFT quota will not be sufficient for many, especially in the commercial sector. I note that the regulations prohibit farming and the use of traps in UK waters or by UK vessels in the convention area for BFT. This is a good thing if enforced.

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[Baroness Hayman of Ullock (Lab)]

Perhaps the noble Lord can take that away and make sure the link works properly in the future. It was a bit frustrating that I could not get any detail on it. Having said that, we completely support this legislation and we need to move on with it.

[Lord Douglas-Miller (Con)]

I thank both noble Baronesses for their interest in tuna fishery. I was led to believe that the record for an SI is seven minutes; I was hoping that we might have beaten it, but BFT is obviously a long phrase and takes a bit of time to get through.

A few questions were raised. First, I will look at the consultation link and make sure that it works. Secondly, the management of our quota and the sustainability of the fishery are interlinked. We are governed by ICCAT, so it is not a European or a British thing. We do not say, “We’re going to take 50, 100 or 200 tonnes”; we have joined this organisation, which has an overarching responsibility across the whole of the bluefin tuna fishery and that of related species. As such, it does a lot of the research work that gives us some indication of how the bluefin tuna fishery is developing. It has been intricately involved in the management plan over the last 10 or 15 years.

We look to ICCAT for the quota, which it allocates across all other European countries, as well as ours. We get what we get, and then it is up to us to decide how we allocate that between the commercial and recreational fishery. This is all a bit new, not just to me but to most fishermen, I think. Not many people out there fish for bluefin tuna. The current plan is that all the recreational fishery will be catch and release. We will catch the fish, tag it and take information to feed back to ICCAT, which will help inform its decision-making. That may change over time if the fishery grows and we feel that there is a market.

The noble Baroness, Lady Bakewell, asked about objections. I am not aware that we have had any objections at all on this issue. If we bump into lots, we can feed that into our thought process and see where it takes us. I take her point about giving people clear instructions on catch and release. Tuna is a very big fish. I am a fisherman and I have some experience of catch and release; it is absolutely not as easy as it sounds. If we are doing catch and release, there is a real need to ensure that there is clear guidance on how it is executed and that we do not damage fish in the process of releasing them. That guidance and those details need to be fleshed out a bit.

Finally, I am afraid that I am unclear on the parity of permit charges, so I will write to the noble Baroness on that point.

I think that covers all the questions, so I will wrap up. I hope noble Lords share my conviction about the need for this instrument to make the necessary provisions outlined in the Sea Fisheries (International Commission for the Conservation of Atlantic Tunas) (Amendment) Regulations 2024. The regulations ensure that the UK can continue to meet its full international obligations under the convention which governs ICCAT, supporting the sustainable management of Atlantic bluefin tuna. With that, I commend the instrument to the Committee.

Motion agreed.

Met Office: 2023 Temperatures

Lord Douglas-Miller Excerpts

Tuesday 6th February 2024 Lords Chamber

[Baroness Jones of Moulsecoomb]

To ask His Majesty’s Government what additional measures they are planning in response to the news that the Met Office believes that 2023 was the second hottest year on record.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, adapting to our changing climate is vital to strengthen our national security, provide resilience in food production and protect the economy from higher costs in the future. In July last year, we published the third national adaptation programme, NAP3, which set out our ambitious programme of action for the five years to 2028. This marked a step change in the Government’s approach to climate change adaptation to address the climate crisis.

[Baroness Jones of Moulsecoomb (GP)]

Those are fine words, but we have to keep acting fast. I am sure the Government know that there have been recent discussions about developing a new category of hurricanes because of their increasing severity. That means that we will see more encroachment of coastlines, and that we ought to start worrying about flooding here in Britain and the Thames Barrier. In view of all those things, what are the Government’s plans for acting a little faster and sitting less on their hands?

[Lord Douglas-Miller (Con)]

As I said, NAP3 marks a step change in the Government’s work on climate adaptation, moving from planning to decisive action and delivery over the next five years. A key element of NAP3 is a much greater focus on monitoring, evaluation and learning than we have ever had before. Government departments will monitor the success of their actions throughout the programme, which will allow us to continually increase ambition in areas where risk reduction is insufficient.

[Earl Russell (LD)]

My Lords, there were 44,000 wildfires last year, an increase of 72% on the previous year. In the words of the Fire Brigades Union, the UK is “woefully unprepared” for the impact of climate change on wildfires. Does the Minister support the Fire Brigades Union’s call for a national wildfire strategy? What investments are being made in people, better equipment and training to fight against the increased risks of wildfires?

[Lord Douglas-Miller (Con)]

I thank the noble Earl for his question; it is extremely relevant in the current climate crisis. Wildfire represents a serious threat to large parts of the UK—not just England but the whole of the UK—and the Government are extremely supportive of any measures to address the issue. I will come back to him in writing on his specific question.

[Lord Hamilton of Epsom (Con)]

Does my noble friend the Minister accept that, if heather is allowed to grow out and become woody and large, we will have more wildfires destroying peat and so forth? The answer is to regularly burn heather. What plans does my noble friend have for this?

[Lord Douglas-Miller (Con)]

Heather burning is quite a niche area, but I know a little about it. I am conscious that there is a balance between mitigation and adaptation, and heather burning fits neatly into that space. The science is developing in this area, and at the moment it is a little ambiguous and unclear on precisely what we should do. We should allow ourselves a little more time and conduct a little more science, and use that evidence to lead us down the appropriate route.

[Lord Alton of Liverpool (CB)]

My Lords, the meeting of the All-Party Group for Africa last night was addressed by the Africa Minister, the right honourable Andrew Mitchell MP. He described the almost catastrophic drought that is likely to affect the people of the Horn of Africa, where there are currently 20 million people facing food insecurity. This is the worst drought in 40 years. Can the Minister tell the House how we are responding to that crisis? There are shrivelled crops, starving livestock, chronic hunger and widespread water insecurity, and 8 million animals, including livestock, died over the course of the last year. If he cannot give the answer now, can he agree to place a letter in the Library of your Lordships’ House setting out the Government’s response?

[Lord Douglas-Miller (Con)]

This is a heartbreaking story and situation that is causing a lot of pain and suffering. The Government’s international leadership on climate change has been demonstrated over the last few years in a consistent way. We continue to provide that leadership. I do not have the specific answers to the noble Lord’s question here and now, but I will endeavour to write to him very shortly to lay out the Government’s position.

[Baroness Hayman of Ullock (Lab)]

My Lords, can the Minister explain how the Government will square the circle of announcing their stated ambition on tackling climate change, while at the same time awarding new licences for oil and gas extraction and approving a new coal mine?

[Lord Douglas-Miller (Con)]

The noble Baroness raises an interesting question. This demonstrates very clearly the transition that we are going through, from fossil fuels to renewable energy. She will know that the Government have a clear policy of moving to renewable energy. It is a transition, during which we will still need oil and—I hope to a much lesser extent—coal to get us from A to Z. I appreciate that it is a complex area, but that is the Government’s position.

[Lord Trefgarne (Con)]

My Lords, who is the Minister responsible for the Met Office? I am sorry to say that it used to be me.

[Lord Douglas-Miller (Con)]

I believe that it is a Defra responsibility.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend the Minister agree that, with the changes in weather patterns—intense heat followed by very short, sharp but intense showers—surface water has been identified as an increasing problem since 2007? Will he address the issue of highways authorities not having responsibility for surface water run off? This is one of the greatest causes of pollution in our rivers and it needs to be addressed where it joins with combined sewers and enters people’s homes and our rivers.

[Lord Douglas-Miller (Con)]

It would probably be best if I wrote to my noble friend about this. She has raised a range of issues which I do not have time to go into today. I will write to her in due course.

[Lord Bellingham (Con)]

My Lords, rising temperatures obviously go hand in hand with rising sea levels and coastal erosion. The latter is having a particularly serious impact on parts of the Norfolk coast. Can the Minister confirm to the House that a previous policy of managed decline is no longer in place and that we will do all we can to help the communities affected by the impact of such events?

[Lord Douglas-Miller (Con)]

My noble friend will be aware that the Government have committed north of £5 billion for flooding and coastal erosion. We are now half way through that programme. I will write to my noble friend specifically about the Norfolk coast.

[Lord West of Spithead (Lab)]

My Lords, does that Minister agree that, with the need to cut emissions and the growth in the amount of power that our nation requires, there is a real need to speed up the provision of nuclear power to ensure that we have green energy?

[Lord Douglas-Miller (Con)]

I entirely agree with the noble Lord.

[The Lord Bishop of Bristol]

My Lords, as the Minister will know, net zero is impossible without decarbonising heating. The clean heat market mechanism is a crucial part of that. Does he recognise its importance? Will he refute media speculation that the Government are considering a U-turn on it? Will he make representations to boiler manufacturers that are unfairly passing these costs on to consumers?

[Lord Douglas-Miller (Con)]

Again, I will write to the right reverend Prelate in due course. I am doing rather a lot of writing today, am I not? This is a broad subject which I am slowly getting my head around.

[Lord Forsyth of Drumlean (Con)]

My Lords, further to the question from the right reverend Prelate, is it not important that everyone realises that passing on the cost to consumers is not unfair—this is what is going to happen? In pursuing our policy, we have to be aware of this cost and phase it in over time. It is completely irresponsible to move ahead of people’s ability to pay.

[Lord Douglas-Miller (Con)]

I entirely agree with my noble friend. The communication on this transition has not been entirely well presented. A transition to a green energy future is going to cost a significant amount of money. I concur with my noble friend’s view on this.

Sustainable Farming Incentive: Species Management and ELMS

Lord Douglas-Miller Excerpts

Thursday 25th January 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests in farming, fishing and land management, as set out in the register. I congratulate my noble friend Lord Caithness on securing this important and timely debate.

I welcome this opportunity to speak about the changes to our environmental land management schemes and the case for including species management within the Countryside Stewardship section. Species management plays an important role in meeting our biodiversity targets. I am grateful for the many thoughtful and knowledgeable contributions that noble Lords have made today; I will return to this point in just a moment.

Given the relevance of this debate, it is worth highlighting how we are seizing the opportunities of moving away from the EU’s inflexible common agricultural policy and implementing our own bespoke environmental land management scheme, as this move constitutes the main element of the agricultural transition plan, as the noble Baroness, Lady Hayman of Ullock, explained so well just now.

First, and contrary to what was said by the noble Baronesses, Lady Bakewell and Lady Bennett, we are maintaining the £2.4 billion budget for the sector across this Parliament by using money released from the winding down of the basic payment scheme to fund our new set of ELMS modules aimed at improving the environment, productivity and the health and welfare of animals.

As many noble Lords will know, our ELMS modules fall into three main parts. The sustainable farming incentive pays for standard actions that are needed across the farmed landscape to deliver our environmental objectives. Since its launch, we have seen growing uptake for the SFI. As of yesterday, we have received more than 9,300 applications, which is approximately 15% of all farmers. Importantly, feedback from pilot participants has helped to shape the scheme to ensure that it is flexible and works for all farmers across England. As of this month, for those actions already agreed with the Rural Payments Agency, farmers have taken up actions which mean that circa 123,000 hectares of arable land is being managed without insecticides and circa 53,000 hectares of low-input grassland is focused on improving sustainability.

The second part of ELMS, Countryside Stewardship, pays for locally targeted actions relating to the creation of specific habitats and the management of some species. I reassure the right reverend Prelate the Bishop of Norwich: Countryside Stewardship schemes have helped to maintain and restore more than 10,000 kilometres of existing hedgerows and to plant an additional 4,000 kilometres across the country.

The third part, landscape recovery, is aimed at farmers and land managers who want to take a more long-term and large-scale approach to producing environmental goods on their land alongside food production. The first round of landscape recovery in 2023 focused on species recovery and river restoration. There were 22 successful projects. Among other things, they target the conservation of more than 260 flagship species. The second round of landscape recovery focuses on net zero, protected sites and wildlife-rich habitats. There are 34 shortlisted projects that will deliver a wide range of environmental benefits, including restoring more than 35,000 hectares of peatland and creating more than 7,000 hectares of new woodland.

At the Oxford Farming Conference earlier this month, the Secretary of State announced an update to the agricultural transition plan. This represents the biggest upgrade to farming schemes since the start of the agricultural transition in 2021. The key message from the Secretary of State, which I reiterate today, is that we are delivering more money, more choice and more trust. On money, we have updated the payment rates for existing SFI and Countryside Stewardship actions, increasing rates by an average of 10% across the board. Farmers will also be paid a premium for certain actions which deliver higher value outcomes.

On choice, we want to ensure that there is something available for every farmer regardless of whether they own or rent their land. We are adding around 50 new actions to our schemes and amending many more after taking feedback from farmers, researchers and stakeholders to improve and expand existing actions, creating the most flexible and comprehensive offer yet. For example, we have added five new actions and amended four existing ones to support the management of rivers and their catchments. These focus on slowing the flow of water through the landscape, thereby helping to reduce the impact of extreme weather events such as those that we have experienced recently.

Importantly, to build trust, we have listened to farmers and want to enable every farmer to access our schemes quickly and simply. We will be streamlining the application process by bringing together SFI and Countryside Stewardship mid-tier applications and exploring how we can simplify the Countryside Stewardship higher-tier application process as well. This and other changes will make it easier for our schemes to slot seamlessly into farm businesses. That will help to ensure that we get the scale and ambition we need to achieve our targets, including having 70% of farmers signed up by 2028.

I know from personal experience that no one cares more deeply about the land, the nature around them or the health of their farm than the farmer or land manager who lives and works there every day. The Government are keen that the relationship between farmers and regulatory bodies moves towards one of working together and building trust, and the guidance from the Government to regulatory bodies will reflect that farmers and land managers are the solution, not the problem, as my noble friend Lord Sewell of Sanderstead suggested. I should add that the Government support a range of innovations, but I shall take away my noble friend’s thoughts on innovation and consider them further.

My noble friend Lord Caithness and other noble Lords asked about the balance between environmental benefits and food production. The Nature Friendly Farming Network is particularly interested in this point too. I know that my right honourable friend in the other place, the Farming Minister, met the Nature Friendly Farming Network on Monday this week. I was delighted to hear that they had a productive discussion on this topic and are working constructively together on potential routes forward.

I turn to species management, which my noble friend and other noble Lords spoke on with such knowledge today. As my noble friend explained, the evidence clearly points to three key functions that support biodiversity: suitable habitat, food source, and predator management. All three will be required if we are to hit our biodiversity targets. The lack of suitable habitat in good condition, and food scarcity, particularly over winter, are two of the primary reasons for species decline. We have many actions within ELM schemes that pay for habitat creation and management, and more are being added later this year. We also have specific actions to provide overwinter food for farmland bird species to boost their recovery.

Alongside those two critical components, we need predator management to support the recovery of certain species and priority habitats. Through Countryside Stewardship we already pay for actions to manage deer and grey squirrels to protect our woodlands, a subject raised by many noble Lords today, as well as the control of invasive non-native plant species such as Japanese knotweed and Himalayan balsam. This year we are expanding these offers to fund management across the landscape, beyond woodlands, and we are increasing payment rates to better reflect the complexity of the management actions that are required.

From this year, for the first time, we will also pay for the management control of edible dormice and American mink. The edible dormouse—a somewhat curious name, which I understand stems from the Romans acquiring a taste for this rodent—were first introduced to the UK from Europe in 1907. They cause damage to trees by bark stripping and ring barking, and they are known to eat fruit crops and compete with hole-nesting birds for nest boxes, and to predate on their eggs.

My noble friend Lord Robathan spoke with great emotion about the American mink, which is a widespread non-native invasive species with a broad diet that includes small mammals. The American mink has heavily preyed on our native water vole population, which is now endangered, as my noble friend mentioned. The key point, raised by the noble Baroness, Lady Hayman, and others, is that management of other generalist predators such as foxes, crows, stoats and weasels can and should be undertaken by farmers and land managers in accordance with the general licensing rules, which I appreciate have been a challenging area in the last year or so.

My noble friend Lord Robathan and others asked an important question concerning how we have taken species which are already included under general licences, such as GL38 for stoats, into account. I note that the evidence requirements for permitting the control of a species differ from the evidence requirements to incentivise the management of that same species through our schemes. The latter requires—

[Lord Robathan (Con)]

My question really is: why do we need general licences and so on? We know that crows are very destructive, for instance. We have mentioned squirrels, mink and magpies. Why do we need a licence at all, general or otherwise? Is it to keep civil servants working?

[Lord Douglas-Miller (Con)]

My noble friend raises a good point. It is the current law of the land. Perhaps I could take that point away and have a further discussion with him at a later stage.

Turning to future plans, I hope to reassure my noble friend and others in the House that, as part of the rolling review process, we will continue to explore whether to include additional species management actions within our schemes. This will involve working closely with stakeholders and farmers to understand specific issues as they emerge. It will keep our offers, including payments, up to date and allow us to respond to farmer feedback and changing scientific evidence to maintain progress towards achieving our biodiversity goals.

The noble Baroness, Lady Hayman, the right reverend Prelate the Bishop of Norwich and the noble Baroness, Lady Bennett, raised questions about soil. I emphasise that healthy soil, abundant pollinators and clean water are the foundations of our food security; I am sure that they would agree with me on that. The SFI pays farmers to improve and conserve their soils and provide flower-rich habitats for pollinators and other beneficial invertebrates. These actions support the delivery of our environmental objectives; they also benefit food production, by reducing farmers’ reliance on costly artificial inputs.

The noble Baroness, Lady Bakewell, raised the issue of the land use framework, which I know is due to be published shortly. I am afraid I do not have an exact date for the noble Baroness, but perhaps I can get back to her on it at a later date.

In conclusion, our agricultural transition plan represents the most significant upgrade to farming support schemes since we gained the freedom to design and implement options that support the unique nature of our countryside. The Government will ensure that we maintain progress towards our outcomes by keeping our schemes under review, while ensuring that our offers reflect the latest scientific evidence and represent good value to both farmers and taxpayers. If I have missed any specific points from noble Lords or noble Baronesses, I will write to them in due course. I thank my noble friend for the opportunity to have this important debate.

Biosecurity and Infectious Diseases

Lord Douglas-Miller Excerpts

Thursday 18th January 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con) (Maiden Speech)]

My Lords, I thank the noble Lord, Lord Trees, and other noble Lords for their very kind words. I am honoured and privileged to be giving my maiden speech in this afternoon’s debate. The key issues impacting our environment, such as biosecurity and species loss, are not only close to my heart but one of the central challenges we currently face. I shall return to this subject in a minute.

In researching maiden speeches, I was struck by two recurring themes. The first is a desire for brevity—a subject raised by the noble Lord, Lord Kennedy, this morning. My wife’s grandfather, Sir Walter Bromley-Davenport, was a prominent Member of the other place. He provided some formative training in this area. Whenever anyone stood up to make a speech, including the vicar for his Sunday morning sermon, he would mutter in a terrible stage whisper, “Five minutes”. If anyone dared to exceed the allotted time, he would follow up with an even worse stage whisper, “The fellow doesn’t know when to stop”.

The second theme is consistent reference to the warm welcome that new Members of this place receive from Black Rod and the many others who make up the wonderful team here. I add my own thanks for the very warm welcome that I have received. I am also grateful to my noble friends Lord Benyon—currently in Guatemala—and Lady Fraser of Craigmaddie for introducing me to the House just before Christmas. Both have offered me useful advice on how to navigate this place. I hope that your Lordships will bear with me as I find my feet in this unfamiliar landscape.

I am conscious that I have two tasks today—to respond to this debate and to give your Lordships a little personal background on my journey to this Dispatch Box. Let me start with a brief summary of the latter. In my working life, I have held a number of different jobs. I have been a soldier, a retailer, a commercial property manager and involved in quite a few start-up businesses.

I have also had the great privilege of working with some of our country’s most prestigious conservation charities and NGOs, most recently as chair of the Atlantic Salmon Trust. Like many other conservation charities, the Atlantic Salmon Trust is an amazing organisation, fighting to preserve the iconic wild Atlantic salmon from further decline. One of the most valuable things I learned about wild salmon is their importance in maintaining the health and biodiversity of the ecosystem they live in. The recovery actions that benefit a keystone species such as wild Atlantic salmon also benefit every other species in that ecosystem. If we are serious about reversing biodiversity decline, focusing on these keystone species is a very good place to start.

Running concurrently with my various day jobs, I have been a hill farmer and land manager for more than 30 years in the Scottish Borders, where I live with my wonderful wife, three children and a menagerie of other animals. The backbone of our farm is a flock of hardy blackface sheep. It is just as well that they are hardy, as our farm starts at a height of 600 feet and climbs to a little over 1,700 feet. At the top of our hill is open moorland—a hunting ground for golden eagles, peregrine falcons and a range of other raptors. It is also home to mountain hares, lapwing, grouse, snipe, golden plover, curlew, adders and many other rare species. They are all abundant, due to our careful habitat creation and targeted predator management—two essential ingredients in reversing biodiversity loss. One of the great joys of my life is that I can hear the eerie and evocative call of the curlew from my bedroom window in the spring and summer months.

Our constant objective and overarching aim is to balance nature recovery with farming and food production. As many in this place will know, balancing these two sometimes contradictory objectives is not easy. The time and cost of implementing nature recovery on the farm can create some difficult economic frictions and the very process of farming can present some really hard choices—choices that reflect the realities of life and nature on the front line. This balancing act—it is perhaps better described as a rebalancing act—represents one of the most difficult and important policy challenges for government today. Not only will it guide the future prosperity of our farming and rural communities and help secure domestic food production, it will be the main driver in delivering species recovery and climate change mitigation. I know that getting this balance right is no easy task, but it is certainly not mission impossible—the rather surprising view expressed in my introduction to your Lordships’ House before Christmas.

My second, rather more important, task this afternoon is to congratulate the noble Lord, Lord Trees, on securing this debate and to thank noble Lords for their valuable contributions. This has been a stimulating debate, with the full spectrum of views expressed—so much so that my support team have run out of paper with the number of messages that they have been sending to me.

The noble Lord, Lord Trees, is absolutely right to highlight globalisation and climate change as the key issues impacting biosecurity. Pests and diseases know no borders, while new and emerging threats are often the result of trade and globalisation and can be further exacerbated by climate change. In addition, upholding high biosecurity standards is paramount for food production and food safety, for human and animal health, and to support our economy and trade. Plant diseases alone are estimated to cost the global economy more than $220 billion annually, and up to 40% of global crop production is lost to pests each year. These are huge numbers that are unlikely to reduce as climate change drives the geographical expansion and the host range of pests and diseases.

Healthy plants and animals are not just an important tool in the fight against climate change and biodiversity loss; they directly contribute to many of the UN sustainable development goals, in particular to end hunger, to achieve food security, to improve nutrition and to promote sustainable agriculture. I assure noble Lords that this Government are focused on not only responding to these changing threats but protecting animal, environmental and plant health. The Government published their biological security strategy last summer, aiming to build UK resilience to the increasing spectrum of biological threats. The strategy specifically highlights the interdependencies between environmental, plant, animal and human health—a subject raised by many noble Lords this afternoon.

Let me assure noble Lords of the robust measures that we have in place to maintain and improve our ability to detect, prevent, respond and recover from outbreaks. Surveillance and detection are key to minimising risks from imports. We monitor and respond to trade and movement threats and have a strong information-sharing relationship with our European and international partners; for example, when EHD, a disease acute to deer, appeared on the continent, we stopped imports from affected countries and enhanced post-import testing from neighbouring regions. Our strong sanitary and phytosanitary standards are upheld by checking products in their final form and by assuring the whole production chain of our trading partners.

Our new border target operating model further sets out how we will introduce a new global regime that better targets high-risk commodities while simplifying processes for trade where it is safe to do so. The noble Lord, Lord Taylor, talked eloquently about the need for us to balance the sanitary and phytosanitary risks with the need for trade to flow freely. Having recently visited one of our border control posts and seen for myself the work taking place, I am confident that we have the balance about right for the upcoming rollout of the new BTOM system, which starts in earnest in April this year.

Our world-leading science and research capabilities further support our biosecurity. The UK’s health, agriculture, plant, environmental, and life science sectors are supported by a large cadre of expertise—of international standard reference laboratories and innovative research programmes. Research on new diagnostics, vector-borne diseases and veterinary vaccine technology, are just some examples. Indeed, our globally respected scientists at the Animal and Plant Health Agency require world-class facilities. I was delighted to see first-hand on a recent visit why our Weybridge laboratory is internationally recognised for diseases such as avian influenza and rabies. In fact, it has the largest number of internationally recognised reference laboratories anywhere in the world, something that we should be justifiably proud of.

The first stage of the Government’s £200 million redevelopment of this vital facility has begun. Once completed, it will be a world-leading facility. It will not only cement the UK’s global science status—since almost two-thirds of infectious diseases in humans originate from animals—but safeguard and enhance the UK’s capability to respond to the increasing threat from zoonotic diseases, protect public health and underpin the UK’s trade capability with animal export products, which are worth over £12 billion per year to the UK economy. I am committed to working with colleagues in the Animal and Plant Health Agency and across government, including His Majesty’s Treasury, to move the next stage of the Weybridge development forward.

On the plant side, the £5.8 million Holt Laboratory in Hampshire opened in 2022, conducting world-leading research on plant pests and disease threats. The Fera Science laboratory in Yorkshire, mentioned by the noble Baroness, Lady Hayman of Ullock, and many others, is our science reference laboratory for plant and bee health. Its work is vital for our success.

As many noble Lords have noted, despite our best efforts we cannot keep every disease and vector of disease out. Therefore, it is vital that we promote strong biosecurity and maintain our response capabilities. Unfortunately, in recent years we have had several opportunities to test these capabilities, including responses to the Asian hornet and the oak processionary moth, and on the animal side, avian influenza and, most recently, bluetongue virus.

We continue to regularly test our capabilities through exercises and horizon scanning, we learn lessons when outbreaks do occur, and we invest in improvements. We work closely with sector groups on our preparedness and outbreak response, and we remain ever grateful for their insight and commitment.

I am conscious of the time and the length and breadth of noble Lords’ questions. It would probably take me more than my 20-minute slot just to answer those. If I fail to answer anybody’s questions, I will write and place a copy in the Library.

The noble Lord, Lord Trees, and many others, asked about the progress on the biological security strategy. Defra is a key delivery department in the UK Biological Security Strategy published last June. It commits the Government to addressing biological threats, including those related to animal and plant health and invasive non-native species. Defra is working closely with the Department of Health and Social Care to lead the “respond” pillar. This includes having robust contingency plans for biological threats; ensuring that the UK border maintains biosecurity with a new BTOM system, which is going live this April; and establishing a new inspectorate to tackle invasive non-native species, which is now up and running. In parallel, our Environmental Improvement Plan 2023 set out how we will improve our environment at home and abroad, including through biodiversity.

The noble Lord also asked when the border target operating model would be working to full capacity. When the new certificates for EU imports come into force in January, they will need to be signed by an official veterinarian from the exporting country to confirm their safety of origin. It is the responsibility of that country to appoint official veterinarians who are qualified and authorised to do that job. Our Chief Veterinary Officer has been in constant contact with her colleagues in Europe on this subject.

On the number of vets we have here, I should probably declare an interest: my son’s partner is a vet, and I understand some of the issues around retaining young vets in our country. More than half her intake from the University of Bristol just three years ago have ceased to practise. Retaining and recruiting young vets over here is very important. We are aware of this issue and the high demand for this vital profession.

The noble Lord also asked questions on how Defra works to improve public awareness of threats to plant health and how to prevent them. The Government cannot act alone on plant health: we have a collective responsibility to keep our plants healthy. Campaigns are ongoing to raise awareness of plant health and biosecurity. This includes pests that are already present, such as oak processionary moth, as well as threats that are not yet present, such as Xylella. There is active join-up across the Defra family group with external stakeholders on plant health communications, including an annual collaboration campaign for National Plant Health Week.

Other noble Lords joined the noble Lord, Lord Trees, to ask about preparedness for a future pandemic. The Covid pandemic has focused us on being better prepared. Disease events that we once thought would happen once in a lifetime have increased and may be at least once a decade now. Globalisation and trade, the demand for imported food, and cheap travel all enable diseases to spread silently and far more easily. The UK is strongly advocating for international collaboration on pandemic preparedness and working towards better early-warning systems; more sensitive, cost-effective and faster diagnostics; and improvements in vaccine development.

The noble Viscount, Lord Stansgate, the noble Baronesses, Lady Murphy and Lady Bennett, and the noble Lord, Lord Browne, raised the important issue of antimicrobial resistance. I am unlikely to share the view of the noble Baroness, Lady Bennett, on the proven benefits of grouse-moor management, but I think we will agree that the issue of increased antibiotic use in the salmon farming industry is alarming. Antimicrobial resistance is a global threat. It can lead to untreatable or difficult-to-treat infectious diseases in humans, animals and plants. We are vigilant to its spread. We have a well-established surveillance programme that monitors the use of antibiotics in animals and resistance in major food-producing species. To tackle antimicrobial resistance, we are committed to reducing unnecessary use of antibiotics in animals.

I am conscious that there were many other questions from noble Lords but, as I said, I would prefer to write to them and leave copies in the Library.

In bringing this debate to a conclusion, I again thank the noble Lord, Lord Trees, for securing this timely debate and allowing me the opportunity to reinforce my department’s commitment to biosecurity. Protecting the biosecurity of the United Kingdom is at the forefront of this Government’s agenda, as our extensive and ongoing investment into the science capability at Weybridge demonstrates. This Government’s One Health and climate-focused approach is a key element of our biological security strategy: supporting efforts across environmental, plant, animal and human disciplines to safeguard our biosecurity. My department and our key partners across government are committed to this strategy. Not only does it address biological threats but it will deliver on our pledge to hand over our planet to the next generation in a better condition than when we inherited it.

Water Pollution

Lord Douglas-Miller Excerpts

Tuesday 16th January 2024 Lords Chamber

[Baroness Boycott]

To ask His Majesty’s Government, following the BBC “Panorama” documentary “The Water Pollution Cover-Up”, what assessment they have made of the ability of the Environment Agency to regulate and police water companies, and what steps they plan to take to stop sewage entering watercourses.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)]

My Lords, I declare my interests as set out in the register. The Government are clear that the current volume of sewage being discharged into our waters is unacceptable. Our plan for water is addressing this and delivering more investment, stronger regulation and tougher enforcement to clean up our water and water environment. Where there is evidence of wrongdoing, the Environment Agency will not hesitate to act.

[Baroness Boycott (CB)]

My Lords, I welcome the Minister to the Dispatch Box and I too declare my interests.

The “Panorama” programme threw up a lot of issues. It has not had quite the effect of “Mr Bates vs The Post Office”—although I wish it had, because there is a lot of covering up going on at the moment in terms of sewerage works in this country. I would like to raise one point; others will be raised as the Question goes on.

Campaigners and journalists have been using freedom of information requests or environmental information requests to water companies, to explore and expose the illegal sewage discharges. But, increasingly, the companies are refusing to comply. In fact, nine out of 11 water and sewerage companies in England and Wales have said that the ongoing Ofwat and Environment Agency investigations mean that they do not have to hand over any data. This is completely contrary to what David Black, the CEO of Ofwat, told the Public Accounts Committee just four weeks ago. He said this was not a good enough reason. Do the Government not agree that this data should be provided for the sake of transparency, public health and the protection of the environment? Sewage in our rivers is something that everyone in this country cares about.

--- Later in debate ---

[Lord Douglas-Miller (Con)]

I thank the noble Baroness for her Question. The Government do not believe that there is any collusion. The role of the Environment Agency, as the environmental regulator for water companies, is to provide guidance to help water companies with their water resource management and to ensure that they are complying with the regulations. On FoI and environmental information regulations, water companies are only subject to the Environmental Information Regulations 2004 and not the Freedom of Information Act 2000. For the purposes of the environmental information regulations, water companies are their own legal entity, which means that it is for the organisation itself to tell you why it cannot provide all, or some of, the information requested.

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome my noble friend to this House and congratulate him on his new appointment. Possibly the best way of preventing sewage entering the watercourses is to ensure the end of the automatic right to connect major new developments with inadequate, inappropriate piping. Will he look into when the consultation will be brought forward to implement Schedule 3 to the Flood and Water Management Act 2010 to ensure that there will be no automatic connections in these circumstances and a better use of SUDS and natural flood defences?

[Lord Douglas-Miller (Con)]

I thank my noble friend for her kind words, which are greatly appreciated. We will be implementing Schedule 3 to the water management Act, as previously announced. I hope that that addresses my noble friend’s question.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I welcome the Minister to his first outing at the Dispatch Box. It is clear from whistleblower evidence in the recent BBC “Panorama” investigation into water pollution that water companies can and do cheat the operator self-monitoring test by manipulating flows at failing sewage works. This ensures that there is no flow to sample when the official tester arrives. Will the Government concede that trusting companies that are financially motivated to cover up failing works to avoid penalties from Ofwat to carry out their own testing is not an effective regulatory system? Will they commit to putting robust independent regulation in place to ensure sewage works’ compliance?

[Lord Douglas-Miller (Con)]

Water companies, including United Utilities, have always been required to report pollution incidents and breaches of their permits to the Environment Agency. The agency also monitors and inspects water company sites independently. It has significantly driven up monitoring and transparency from water companies in recent years. Any reports of misreporting are a concern and, if there is evidence, the Environment Agency will always take action, including pursuing and prosecuting companies that are deliberately obstructive.

[Baroness Hayman of Ullock (Lab)]

My Lords, I too welcome the noble Lord to his place and say how much I look forward to working with him in the coming months.

In a Written Answer, the noble Lord noted that, following pollution from United Utilities in the Windermere area, the Environment Agency recognised that it should have done better and referred itself for independent review by its Scottish partner. The Answer also stated that learning had been shared with the EA to inform future responses. How many similar regulatory failures have taken place over the last three years, and how will the department ensure transparency over the outcomes?

[Lord Douglas-Miller (Con)]

Again, I thank the noble Baroness for her kind words. The Environment Agency has fully reviewed the evidence about this incident and concluded that the most likely cause of the Cunsey Beck issue at Lake Windermere was algal bloom. However, since the Environment Agency did not identify a definitive source of this serious problem, it asked the Scottish Environment Protection Agency to review its response. As a result of the review, the Environment Agency has made improvements to water quality monitoring in the area, including installing sensors that monitor river quality in real time. We have no plans to reopen the investigation in the absence of any substantial new evidence.

[Lord Cromwell (CB)]

My Lords, senior members of staff from water companies appearing in front of the regulatory committee told us that the monitoring that they have put in place is available freely, in real time, to the public. They now appear to be claiming that they are quasi sub judice because they are under investigation and are not prepared to provide that information. Is that something the Government will let them get away with?

[Lord Douglas-Miller (Con)]

The Government are very clear that we will be providing real-time information and that it will be available publicly. If any of the water companies feel that they will not be doing that, I can assure your Lordships that the Environment Agency will be chasing them.

[Baroness Jones of Moulsecoomb (GP)]

I welcome the new Minister, but on this issue he has stepped into a large bucket of doo-doo. I am just warning him; we are very unhappy here about this. I did not see the BBC “Panorama” programme that was referred to, but it showed that United Utilities is due to receive millions of pounds in performance payments from bill payers, as a result of it covering up and wrongly categorising pollution incidents. Will the Government research and look into this fraud? The allegations are that the Environment Agency is also complicit and other water companies could be doing exactly the same.

[Lord Douglas-Miller (Con)]

When I watched the “Panorama” programme, I too was left with the distinct impression that something fishy was going on. However, it is standard practice for the initial and final categorisations to be different. This is because the initial categorisation is based on the information provided in an initial report. An Environment Agency officer will then gather evidence about the incident from a variety of sources, including attendants at the most significant pollution events. They will then assess this information and give a final categorisation that is based on the evidence rather than on the initial estimate.

[Lord Forsyth of Drumlean (Con)]

My Lords, we made no progress on health and safety until we made company directors personally responsible. It is no good relying on a system of fines, because that just ends up putting up consumers’ bills. Now that my noble friend is in his new position, would he look at the prospect of holding boards to account for their performance in this regard? It would change the whole nature of their attitudes. On his point about something fishy going on, the point of this is that all the fish are dying.

[Lord Douglas-Miller (Con)]

As the former chair of the Atlantic Salmon Trust, I have some sympathy with my noble friend’s view. The Government have legislated to introduce unlimited penalties on water companies. I appreciate my noble friend’s point, but we have made a start in the right direction. A much wider range of issues can now be applied by the Environment Agency to hold water companies to account. As I stated at the beginning, the Government are acutely aware that the position is not satisfactory and are looking into the matter, with all seriousness.