Flood Defences

Lord Moynihan Excerpts

Wednesday 26th November 2014 Grand Committee

[Lord Moynihan (Con)]

My Lords, I declare an interest as I have recently taken on a chairmanship at Buckthorn Partners, a partnership which identifies and seeks to make investments in the mining, oil and gas services and water industries. Our main objective is to invest in clean and used water technologies with applications in the Middle East, for example in desalination-driven markets and in countries facing drought and water shortages, such as Saudi Arabia. This may seem a far cry from the subject of our debate—flood defences—and it is, as we have made no investments in the UK water industry and certainly not in flood protection. However, I adhere strongly to the principle that if there might be construed to be any doubt over a declaration of interest, then declare, declare, declare.

This week sees the culmination of a series of events reflecting on the 25 years since water privatisation, the original Bill for which I was ministerially responsible during its parliamentary stage in another place. There are good reasons for celebration. Both parties have subsequently worked closely together to ensure that one of the principal objectives of the Bill, that of ensuring that the water companies gained access to long-term capital markets to make the substantial necessary investments required of the sector, was achieved. The separation of functions in the industry between the National Rivers Authority and the industry recognised the need to ensure that the gamekeeper did not have the opportunity to turn poacher. Emphasis was placed on the equally important requirement for long-term investment in flood defences. Subsequently, with increasing rather than decreasing all-party consensus as the ideological divide over the original privatisation dissipated, a great deal of further work has been undertaken by Governments of both political complexions.

On the question of adequate flood defences, I would argue that the issue is not how much investment is made, but how effective that investment is. Only this year, the hard work of my noble friend the Minister paid off when the House recognised and acted upon the fact that water resources were under significant pressure in parts of the United Kingdom and water supply constraints were predicted to spread in the future. The need to secure future investment was realised and the importance of resisting considerable upward pressure on water bills recognised. In all aspects of the water industry, the key issue is the quality of investment programmes and this is nowhere more so than in flood defences and measures to combat coastal erosion. In that context, my noble friend Lord Deben has done outstanding work on the protection and strengthening of coastal defences, particularly on the east coast. The Minister has achieved his aim of delivering more resilient water supplies and, in the context of water management and flood protection, a new flood insurance scheme for domestic properties and a new duty for the regulator to focus on the long-term resilience of water supplies.

Consumers, with their concerns echoing in the press, simply and effectively amplified by dramatic photography, cannot understand why we apparently move from damaging floods and excess rain to drought orders in a matter of months. They rightly look to Government to provide adequate investment in flood defences, a strategy to conserve water in the summer months, and a national plan of reservoir management to safeguard this most required commodity for our survival. One reason why the Minister needed to make progress on the Water Bill a year ago was to give time to establish a new insurance scheme for those in areas of high flood risk to secure affordable insurance cover. That progress is being made on the introduction of Flood Re is to the significant credit of the Minister and his team. I would be grateful if he could update noble Lords on the precise level of progress being made.

The scale of the problem was not only one for the much publicised Somerset Levels and the countryside. It is important to place on record the impact of the 2013-14 floods here in our capital city. As cited in the evidence from London councils at the time, floods can clearly devastate the economy of our high streets, many of which contain SMEs and charity shops. They are affected by damage not just to property but also to stock, and it can take a long time to recover. The flood hazard and risk maps published by the Environment Agency just under a year ago show that more than 166,000 non-residential properties are at risk of flooding in the Thames area, nearly 76,000 of which are in London.

The broader challenge is to ensure we have coherent policies in place to cope with the inevitable effects if we do not address the need for adequate flood defences, and so I would ask the Minister to consider the following points when he comes to answer this debate. How far have the recommendations of the Pitt review, referred to by the noble Baroness, Lady Royall, been implemented, and in particular progress on flood forecasting? How prepared are we for future floods and how effective does he estimate our current level of flood defences to be? Will he give an update on his assessment of the effectiveness and life expectancy of the Thames Barrier? Have we increased the number of specialist flood rescue teams on standby, as promised, and whether the record levels of capital investment in projects on his watch are, in his view, effective and adequately audited for their effectiveness?

I conclude by picking up on the important subject of the Somerset Levels raised by the noble Baroness, Lady Royall. The Levels pose a unique challenge and I ask the Minister to give due consideration to introducing a new legislative framework for the area. I have long believed that the Norfolk and Suffolk Broads Authority, formed under the Norfolk and Suffolk Broads Act 1988, in which I declare an interest having taken the Bill through another place, has been an important example of a special statutory authority managing an area and thus affording a level of co-operation and protection similar to a national park. I believe it may be an appropriate model for the Somerset Levels and I would ask Ministers to give it due consideration in the future.

I conclude with the observation that the key to avoiding widespread damage to property from flooding is co-operation between the agencies, effective investment and flood prevention and asset resilience through regular and sustained maintenance, and investment in our flood defence assets and watercourses. Such measures are always preferable to clean-ups. I hope the Minister will be able to throw more light on the important issues raised in this debate and I congratulate the noble Baroness, Lady Royall, on having secured this timely opportunity, as we head into winter, for parliamentary consideration of the level of adequate flood defences throughout the United Kingdom.