Environment: 25-year Plan
Lord Oxburgh Excerpts(6 years, 9 months ago)
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Lord Oxburgh (CB)
My Lords, I too welcome this 25-year plan for the environment. It is nothing if not ambitious. It is clearly a first step in making the country more liveable, both for us and for the plants and animals with which we share it and on which we depend. The plan contains a great deal that is good, but success will really depend on it securing continuing cross-party support. We cannot have wavering if the political climate of the country changes. This is something that we need to stick to.
Defra is proposed as the owner on behalf of the Government. That seems appropriate, but active co-operation will be needed from other departments as well. Defra will need strong support from the Cabinet Office to ensure that others give the plan sufficient priority. The plan must be shared government-wide and feature in the forward-look plans of every government department. It is proposed to establish a new independent body to monitor progress against a series of metrics and to hold the Government to account. As various noble Lords have suggested, it is entirely appropriate that the Committee on Climate Change could be taken as a model for this.
The plan places heavy emphasis on natural capital. That concept is not without its critics, as we have heard today, but it also carries advantages. The beneficial practical applications were mentioned in the plan itself. But although there are difficulties in applying or assessing clear and fixed values for particular assets, the importance of the approach is the focus that it brings to assessing the real value that we derive from every aspect of our environment.
One of our most valuable natural capital assets, and one of the most neglected, is fresh air. Fresh air in crowded cities is all too often polluted by vehicle emissions. In that connection, the plan offers the opportunity to make two quite distinct points. First, it proposes ending the sale of internal combustion engine vehicles by 2040. That is understandable, but it is wrong. The emissions from vehicles should be banned with performance standards, not the technology itself. In the future, a super-diesel operating on a synthetic fuel might turn out to be the greenest means of local transport. Secondly, clean air is an asset to which we can attribute value. A recent study carried out by the British Lung Foundation estimated the direct costs of respiratory conditions to the NHS at around £11 billion a year. If as little as a quarter of that is attributable to vehicle emissions, on cost grounds alone we should act decisively to restore this element of our natural capital—not to mention the persistent ill health and premature deaths associated with it. This is an urgent and solvable problem and the mayoral initiatives in London are to be applauded.
However, there is one area to which the plan devotes too little attention. It is the major decline in numbers of the most undervalued and admittedly, for us, least charismatic animal group on earth—the insects. Reputable studies in the UK and elsewhere demonstrate population declines of over 75% during the last three decades. We know that from our own experience if we compare driving 20 years ago with today. Twenty years ago, we had to clean the summer insects off the windscreen with every fill-up. Today, that is a rarity. Similar declines are recorded in mainland Europe and in Canada.
Apart from the honey bees, should we be concerned? The answer is an emphatic yes. Insects have an unobtrusive but key role to play in our environmental system. Aside from their most obvious part in the animal food chain for birds, small mammals and others, they are very important as pollinators of crops. Although largely unseen, insects are important for breaking down waste products within the soil and conditioning it for plant growth. If the decline continues, the consequences for the human food supply look bad. Although the general trends are not clear, it is worrying that the records are insufficient for detailed analysis and the declines are not properly understood. I am prompted by the relatively low profile of insects in the plan to ask the Minister to review the environmental monitoring work of his department and to take advice on whether it is really sufficient to support this 25-year plan. The same point has been made by various other noble Lords. Long-time series of observations made in the same way under the same controlled conditions are not popular with those seeking quick results from science, but they are essential to support the science we need to understand and manage the environmental problems we face.
To conclude, this plan is a good first step, but we need better observational records. We should make sure that we regulate outcomes, not technologies, and recognise that the real challenge will be implementing the plan.
Water Bill
Lord Oxburgh Excerpts(10 years, 7 months ago)
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Lord Oxburgh (CB)
My Lords, I have to confess that this is a part of the Bill that I have not followed particularly closely, but I have listened to the government and opposition arguments with great interest today and, indeed, have sympathy with both. I would just like to ask the Minister—
Baroness Northover (LD)
I think the noble Lord is out of order. We are on Report, the Minister has spoken, and we are waiting for the noble Lord, Lord Whitty, to respond. The noble Lord can ask a quick question for clarification.
Lord Oxburgh
Thank you. The clarification that I seek is whether the Minister would be willing, when he brings back these amendments at Third Reading, to strengthen some of the words relating to consultation to something rather stronger and relating to an obligation.
Lord De Mauley
My Lords, it is difficult for me to respond to that point without knowing the strengthening that the noble Lord has in mind. I am, of course, perfectly prepared to meet him and discuss that between now and Third Reading.
Lord Oxburgh
“Restriction on undertakers’ power to require fixing of charges by reference to volume
(1) The Water Industry Act 1991 is amended as follows.
(2) In section 144B (restrictions on undertakers’ power to require fixing of charges by reference to volume), after subsection (1) there is inserted—
“(1A) Subsection (2) below shall not apply where the water undertaker considers that the fixing of charges by reference to volume is required to allow it to meet its duties under section 37(1)(a) (providing supplies of water) or section 93A (duty to promote the efficient use of water) and that measures for fixing of charges by reference to volume have been included in both the water undertaker’s draft water resources management plan as set out in section 37B and any such plan published as set out in section 37B(8)(a).””
Lord Oxburgh
My Lords, I begin by declaring an interest in a company that designs and manufactures smart meters for gas, electricity and water; the amendment is about water.
I shall not rehearse the arguments about water metering, which were well aired in Committee. The present situation is clear: a householder who wants a water meter is entitled to have one. However, no one is charged for their water by metered volume unless they want to pay in that way or they live in an area designated by the Secretary of State as one of water stress. As has been pointed out by the noble Baroness, Lady Parminter, that situation obtains despite the fact that in 2009 the independent Walker review of water charging set up by Defra concluded that charging by water volume was the only fair and sustainable basis for charging.
In Committee, I pointed out that regardless of the considerable fairness, efficiency and environmental benefits of metering, there were two other important considerations. First, because meters are relatively expensive to install on a one-off basis, it is much more cost-effective if a whole street or neighbourhood is done together. Secondly, because we live in times of changing climate and weather, an area that previously enjoyed an abundant supply of water may become water-stressed quickly and unexpectedly. If meters are already in place, it would be possible to respond to the changed conditions much more quickly. This means that there are good reasons to allow water suppliers to install meters at their discretion and convenience, while leaving the decision on whether to use those meters for water charging with the Secretary of State or the householder. This would allow meter installation at minimum cost and permit a timely response to water stress, if needed, and it was the essence of the amendment that I introduced in Committee.
In subsequent discussions with the Minister, his officials and the supporting Front Bench team, for which I am very grateful, the view was that water companies already had the authority to carry out general meter installation and that this amendment was unnecessary. Numerous communications which I have had since that time—I continue to receive them—suggest that this fact is not well known. I have tabled the present amendment at least in part to allow the Minister to make an authoritative statement on the present situation.
I will make a couple of comments on today’s amendment, the wording for which was offered by WWF and several collaborating organisations. First, I have to apologise to them and to the House that the wording in the amendment is in fact not the most recent wording—but never mind, it gives us an opportunity to discuss the general problem. The amendment would allow water companies to introduce universal metering if, after consultation with customers through the existing water resources management plan and business plan processes, it is found to be the most affordable option for customers overall as well as being the best option for water resources management. This will be consistent with the new resilience duty of Ofwat, and I strongly endorse that proposal. The present procedures for metering approval need widening and are glacially slow even when all those directly affected are in agreement.
Secondly, the text of the amendment provides an excellent illustration of the need for the Secretary of State to supply a clear and authoritative statement on metering to clarify the tortuous complexity of the present legislation. It is hardly surprising if water companies are confused about the law, if indeed they are. The subject matter is not intrinsically complicated, but successive layers of amending legislation, laid one upon the other, make the present state of the law difficult to discover without a great deal of work. At an earlier stage the noble Baroness, Lady Northover, assured me and the House that codification of water legislation would receive the attention of the department. I wonder whether the Minister could simply comment on any progress that has been made.
In conclusion, I believe that metering is important both to give consumers a fair deal and to help the environment. We ought to make it less expensive and easier to accomplish. I beg to move.
Lord Cameron of Dillington
My Lords, in supporting my noble friend Lord Oxburgh I realise that we are swimming against an overwhelming political current here. However, it is sometimes the duty of Cross-Benchers to point out the political follies of some of the main parties in this House. It is clear to me from having spoken to many Members of this House—including some very important Members, many of whom are here today—that on a personal vote this amendment, or something like it, would sail through the House. To put it bluntly, a lack of imagination at the other end of the Palace is preventing this happening. One might even say it was a lack of leadership. I say “lack of imagination” because it is quite easy to devise a tariff system or to further enhance or better promote WaterSure or some of the other systems so that large households on low budgets, for example, can continue to pay as little as they do for their water at the moment, or even less.
It has been my ambition throughout the passage of the Bill to ensure that water is valued more by all parties: government; businesses, including energy, which are great water users; farmers; and, above all, domestic consumers. Having read the Committee stage—I apologise that I was not in Committee when this was discussed—I know that it has already been said that no one will value it unless we measure it. That includes those who might be getting assistance. Everyone would value water more if they measured it. What seems strange is that that is the overwhelming view not only of Members of this House but of environmentalists and of most customers, when they are asked—you have only to read the Walker report to see that.
It is also the view of water companies that we should work towards 100% metering. Your Lordships might think that slightly counterintuitive because, if customers value their water more, surely they will buy less. However, water companies know that the costs and delays in providing ever-expanding infrastructure and water supplies to cater for an ever-expanding demand would cripple their balance sheets. In January, some of us heard that a mere extension of a reservoir in Essex took 20 years to achieve: 10 years to prove the case and 10 years to go through planning. How much longer would it take for the many new reservoirs required to cater for this system of unlimited demand? There is no doubt that a reduction in demand by around 15%, which is often cited as what can be achieved by universal metering, would be the equivalent of several new reservoirs. Metering is therefore so much quicker and cheaper, and infinitely better for the environment.
I want to tell your Lordships a small parable from India. In India, water was considered to be a commodity that was given by God and therefore should be free to all people. Because no one was paying for it or valuing it, the investment in infrastructure by the state and the private sector was therefore negligible. It was even worse than our water industry was before privatisation. So as a result of this paucity of investment, communities in both cities and rural villages often got water only for an hour per day, or sometimes two at the most. Anyone who has listened to any debates on overseas development in this House will know that poor sanitation caused by lack of water is the biggest killer of children in the world. Anyway, the Indian Government realised that everyone had to value water more and so changed the law about not charging for water. Almost immediately, a giant leap forward was taken in water supplies and sanitation across India, although it is not perfect and they have a long way to go yet.
Your Lordships may be thinking, “What on earth does this have to do with universal metering?”. However, as I said, it is a parable rather than a parallel because the Indian Government had learnt that you do not want to use water as a political or social tool to iron out the inequalities of life. Apart from anything else, water is one of the heaviest commodities on the planet. It is difficult and expensive to move around. It is best to put the proper value on water and then ensure through other measures that people have the wherewithal to pay for it; that is what I mean by a lack of imagination. Nearly all Western countries have universal metering and most of them, from what I can gather, have some sort of WaterSure scheme or an equivalent which relieve those who might get into financial difficulties. Universal metering is going to happen here eventually, as in the rest of the world, However, I am reminded of the German philosopher—I think it was Otto Mencke, although I cannot be dead certain—who said: “When the end of the world comes, I want to be in England because everything always happens 50 years later there”.
Baroness Northover
My Lords, I thank the noble Lord, Lord Oxburgh, for laying this amendment, and I think I thank the noble Lord, Lord Cameron, for his contribution, with all his liquid metaphors. I was pleased to speak at the WaterAid reception last night, which he attended, so I assure him—I think he knows it—that we recognise the importance of water, whether it is in developing countries or in the United Kingdom.
We have thought carefully about metering in bringing this Bill through Parliament. Our position on metering seeks to strike a balance between the benefits that metering brings and the consequences that it can have for customers and their bills. We agree that metering is a fair basis for charging, but we are also concerned about the potential impacts on struggling customers. As the noble Lord, Lord Oxburgh, has observed, any customer can request a meter. The company must then fit a meter for free. That customer has a year to decide whether to revert to paying according to the rateable value if it turns out that they are worse off.
We are already seeing increasing levels of metering across the country. Next year will see the number of metered households reach 50%, with a trajectory towards 80% by 2040. Where there is a credible economic case, any company may install meters across all or part of their area. The only restriction is on imposing metered charges on customers without their consent. Companies could, as the noble Lord, Lord Oxburgh, suggests, install a complete street or neighbourhood at the same time; and to answer my noble friend Lady Parminter, companies can put in meters throughout.
The evidence shows that the case for imposing metered charges on all customers in an area can be made in water-stressed areas where there is an insufficient supply of water to meet projected demand. The amount of available water varies around the country. When it makes social, environmental and economic sense to do so, charging all customers according to a meter is already a possibility, but in areas where water resources are not under pressure, imposing meter charges is restricted because of our concerns about affordability.
There are two sets of costs that must be considered here. First, the investment cost of installing meters across an area can put up bills for all the customers in that area. Secondly, imposing metered charges across an area can increase the bills of some of the worst off in society. This is not something that anyone wishes to do in areas that have sufficient water to meet demand.
The balance will doubtless change over time. With climate change and population growth, the case for universal metering in particular areas will no doubt shift. That is why we revised the water stress designation last year: to take better account of long-term climate projections and information about environmental pressures. We wanted to ensure that the designation of serious water stress is forward looking. It is also updated on a regular basis, and we will continue to keep the situation across the country under review. I hope that that does something to reassure noble Lords.
The noble Lord, Lord Oxburgh, asked me to clarify the circumstances in which companies can install meters, and he made the point that a number of organisations were not clear about the situation. I hope I have answered his question, but for the avoidance of doubt let me do so again for the record. Water companies are able to install meters wherever there is a good case for doing so. There is a variety of reasons why they may choose to do this, including to improve leakage detection and enhance their understanding of consumer behaviour. A number of companies already do this. What the companies are not allowed to do is to impose charges by reference to that meter without the householder’s agreement. The exception to this rule is in areas of serious water stress, for the reasons that I have mentioned. It is not the installation of meters, therefore, that is restricted; it is making people pay a metered charge without their consent in other areas. I hope that answers the noble Lord’s question.
The noble Lord also mentioned the complexity of the legislation in this area. We agree that the prescribed conditions regulations, which govern the restrictions around metering, are complex and hard to follow. I am glad to be able to confirm that under the Government’s Red Tape Challenge, we have a commitment to consolidate these regulations by April 2015.
Water companies can install meters wherever it makes sense to do so, but it is the householder who decides whether they wish to be charged by reference to it in the areas where that is permitted. There is flexibility to allow universal metering in the wider interest of water efficiency in areas of serious water stress. This is a careful balance. I hope that the noble Lord will be willing to withdraw his amendment, although I am sure he will do so with great reluctance.
Lord Oxburgh
My Lords, I thank the Government for their constructive response, and indeed for the clarification, which I think will be welcomed by many of the water undertakings that have expressed their concern about the present legislation and its lack of clarity. I would just comment that there is some concern, in so far as the noble Baroness referred to it, about the recent reclassification of areas of water stress. There is some disagreement that it is sufficiently forward looking. I am delighted to hear that the legislation is being looked at under the Red Tape Challenge. May we encourage the department in its efforts in that direction?
One disappointment is that, given the progress that has been made, the Government do not feel able to take the last step and say that there does not have be water stress if there is general agreement in an area that this would be the most cost-effective and generally acceptable way of charging. However, under the circumstances, I beg leave to withdraw the amendment.
Water Bill
Lord Oxburgh Excerpts(10 years, 9 months ago)
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Lord Oxburgh (CB)
My Lords, I have a question for the Minister in this general area. Does he feel that this proposed regulatory environment would cover cases in which fracking companies pipe sea-water on to land and then either dispose of it on land or, indeed, discharge it back into the sea? If it does not, it should.
I have a brief comment on what the noble Lord, Lord Whitty, said. To be fair, almost any ground-water or well-water that is drawn in regions that are underlain by coal measures—and this is predominantly the case in Pennsylvania—have some methane in those waters.
Lord Winston (Lab)
Before the noble Lord sits down, does he have any information as to whether sea-water pumped back into the sea after fracking might be hazardous to the environment in the sea-water?
Lord Oxburgh
My Lords, I think that it depends almost exclusively on how that water has been treated by the company that has used it.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley) (Con)
My Lords, as the noble Lord, Lord Whitty, has explained, Amendment 154 would require onshore oil and gas operators to provide financial security when applying for an environmental permit so that funds would be available to deal with any water pollution incident caused by the operator. The amendment would impact on both the conventional and unconventional oil and gas sectors. It would address any pollution that they caused to the water environment but not any other damage that might be caused by their activities.
We want a successful industry in this country—an aspiration supported at Second Reading—to provide us with an important source of gas for our future, but it is vitally important that it is safe. We already have a well established UK conventional onshore oil and gas industry that has happily coexisted with local communities, in some cases for half a century or more. This has been achieved not least because the industry has maintained a good record of environmental responsibility and competence. The existing controls and the application of good operational practice have served us well to prevent pollution from onshore oil and gas activities and to tackle in an appropriate way any problems that emerge.
The Department of Energy and Climate Change assesses as a matter of course whether a company has sufficient funding for its planned operations prior to awarding any licence. It also checks at the drilling stage and, where relevant, at the production stage that the company has appropriate insurance. Similar financial competence checks are also carried out by the Environment Agency as part of the permitting process. In the event of serious damage to surface or ground-water, the Environment Agency and Natural Resources Wales have powers, under the Environmental Damage (Prevention and Remediation) Regulations 2009 and the equivalent Welsh regulations, to serve a notice requiring that the polluter pays to clear up the pollution. If a significant environmental risk becomes apparent, the Environment Agency has the authority to stop the activity. These powers apply to a wide range of operations and activities undertaken by different industries. I do not think that it would be appropriate to create any specific provisions for the oil and gas industry.
However, the Government are aware that there are widely felt concerns about the capacity of companies exploring for shale gas to tackle any liabilities that might arise. This is the concern that the noble Lord, Lord Whitty, is pointing to. Therefore, I am pleased to inform your Lordships that the Department of Energy and Climate Change and the shale gas industry are working to put in place a robust scheme that would cover liabilities even if the relevant operator is no longer in business. They are also in discussion with leading insurers about proposals to build expertise and capacity in the insurance market to facilitate the development of products specifically appropriate for unconventional operations, which in turn could facilitate the development of an industry-wide scheme. In addition, while we already have a robust regulatory framework in place, I can confirm that it will be reviewed and refined as appropriate as we move towards the production phase. The question of the noble Lord, Lord Oxburgh, will be addressed in that process. This regulatory review will include the question of environmental liabilities in the wider sense, not solely relating to water.
I am sure that noble Lords will agree that these two initiatives, taken together, constitute a sensible approach towards ensuring that liabilities are covered in a comprehensive and proportionate way, rather than taking what might be a rigid legislative approach on a piecemeal basis. I hope that this news provides the reassurance that the noble Lord, Lord Whitty, needs that the Government are taking the right steps to ensure that liabilities are dealt with appropriately, and that he will feel able to withdraw his amendment.
Lord Oxburgh
Before the Minister sits down, I hope he can help me with a small matter, which nevertheless would be significant for a minority. Given the duration of the scheme, there is likely to be a rebanding of council tax during that time. Somewhere it needs to be made explicit what will happen to people who move up into, for example, band H during that time.
Lord De Mauley
I can count on the noble Lord to think of something that I did not arrive in the Committee equipped to answer. If I may, I will write to him.
Lord Grantchester
My Lords, the amendment concerns information on the flood reinsurance scheme and would clarify that regulations will be brought forward to set the date of the commencement, and that Parliament will have approved by affirmative procedure the requirements on insurers of the scheme. Most critically, the proposed new clause would ensure that when these important Flood Re provisions come into effect, the database will have been established, as defined in Clause 61, with the relevant information in the right form as specified in subsection (4) of the proposed new clause. Subsection (4) of the proposed new clause says that the database must be accessible to everyone, and must allow them to check whether or not the property with which they are concerned is covered by the Flood Re scheme, and what the risk of the property flooding is.
I know that all noble Lords in the Chamber today share my heartfelt sympathies for those in Somerset and the Thames Valley who have been struggling to deal with these awful floods, and hope that this Flood Re scheme will make sure that people are able to get affordable and accessible insurance in future. The importance of the amendment is that it would provide information to someone buying a property as to whether their prospective purchase is at risk of flooding and, if so, if they will be able to get insurance under the scheme. It does not make sense that a family looking for a house in Somerset, the Thames Valley or elsewhere would be unaware of whether or not it was covered. It would add particular difficulties for them when it came to budgeting for the years ahead. It would be essential information when it came to looking for a mortgage. Lenders will require insurance on property to be able to advance money for the purchase, and will want to know whether or not the costs associated with the property are going to be high and whether insurance is affordable.
The terrible events of recent weeks show how important it is that the public should have confidence that the database is accessible, and that they will be able to access that part of the database to which insurance companies also have access. While the objective of the amendment is to emphasise transparency of and accessibility to information, including mapping, it also highlights the necessity for clarity on flood risk. The Minister may respond that subsection (4)(c) of the proposed new clause is opaque and refers only to property in the scheme. Yet the scheme must manage the situation and a transition over the period of the scheme. There must be a planned and collaborative withdrawal of the Flood Re scheme, and not a precipitate change into market conditions.
At present, it has been expressed that there is a lack of clarity concerning elements of property tenure and the mapping of risk in relation to the scheme, following changes made by the Environment Agency to information and websites in relation to the proposal of the scheme. The Minister has offered today to meet Members of the Committee concerning properties, and the scheme’s treatment of them following repeated flooding occasions. It is vital that the database is accessible as any updating occurs.
Amendment 161A, in the name of the noble Lord, Lord Oxburgh, also seems to me a good idea: it would bring the flood risks of properties further to the attention of householders. It is vital that clarity on flood insurance on a database is accessible throughout the period and is made a basic principle of the scheme. I beg to move.
Lord Oxburgh
Amendment 161A scarcely needs any detailed discussion: we have spoken this afternoon on a number of occasions of the importance of getting information to people. Certainly, this was a plea that came to us through many of the verbal representations that we had when we saw various interested groups in the lead-up to the discussion of this Bill. I simply offer this proposal to use council tax demands as a simple and almost cost-free way of disseminating information very widely, reminding people on an annual basis of their vulnerability to flood. It could serve as a portal to the various schemes and proposals that we discussed this afternoon.
Baroness Northover
My Lords, I am grateful to the noble Lords for their amendments. We are certainly supportive of their intentions in tabling them. The provision of information to households at risk of flooding is vital for managing the costs and impacts of flooding. We believe that it is essential that households benefiting from Flood Re should know about Flood Re and actions that they could take, for example, to reduce flood risk, allowing them to plan for the future. This was a key issue in the public consultation on flood insurance; some of the issues in these amendments echo some of the issues raised in earlier groups, which my noble friend Lord De Mauley has addressed.
The noble Lord, Lord Grantchester, rightly emphasised transparency; we certainly agree with that. As my noble friend Lord De Mauley has just pointed out, the Government have agreed with the Association of British Insurers the principle that insurers will be required to provide information to customers, both when a property is ceded to Flood Re and at the point of a claim, highlighting their flood risk. We are also keen to ensure that Flood Re plays its part in managing the transition to risk-reflective pricing, which we discussed earlier. We are continuing to develop with the ABI proposals in this area. We strongly believe that it is equally important that households outside Flood Re are aware of their flood risk, and the Government are committed to making this information available to the public. That is why we already have systems in place, through the Environment Agency and its devolved equivalents, to provide this information.
In England, the Environment Agency already makes comprehensive and searchable flood risk data available on its website. This has enabled people to check their flood risk from rivers and the sea and take action to prepare for flooding. The agency provides the same information for insurers to use. In addition, last December, the Environment Agency published surface water maps for all areas of England on its website and will produce a combined map, showing all sources of flooding, by December 2015. This work further helps improve public understanding of their flood risk and I hope noble Lords will be further reassured by that. While this places the onus on home owners to seek the information themselves, it provides clear information to households, is well established and is actively promoted by the agency.
The noble Lord, Lord Grantchester, raised the point about people buying properties. Clearly, anybody purchasing a property should check their flood risk by commissioning property surveys and searches or, alternatively, information on surface water risk that has been available in recent years on request from lead local flood authorities. If they conduct those kinds of searches and surveys, then this kind of information should emerge. Clearly, if, having discovered the flood risk, they discuss it with whomever they are buying their property from, the issue of Flood Re would no doubt enter their discussion.
Since June, we have been working with the insurance industry to go even further to improve the data available on flood risk. We have now agreed that the Environment Agency, and its devolved counterparts, will be able to access Flood Re’s data on where the highest-risk households are. This will help the Environment Agency to improve its own mapping of flood risk and will mean that our record levels of flood investment can be targeted at those areas most at risk.
To add to what I have said to the noble Lord, Lord Grantchester, I also point out that the seller is required to fill in a property information form—he will be aware of that—as part of the conveyancing process. This form asks questions about the flood risk history of the property, and if the seller provided misleading information there would be potential for the buyer to seek damages.
Baroness Northover
Advice on obtaining flood insurance is also readily available. The National Flood Forum offers independent advice and guidance on how to go about getting insurance and how to reduce premiums and excesses. Separately, the Government have published a guide that provides advice on how to obtain affordable cover. We recommend that anyone finding it difficult to obtain insurance should talk to a broker and shop around—this was referred to by the noble Lord, Lord Krebs—as this is the best way to make sure that they get the best price for their insurance. There are a range of organisations that can provide help and advice, such as the British Insurance Brokers’ Association and the National Flood Forum. We hope that this reassures noble Lords and that they therefore will be content not to press their amendments. I am happy to write with further details about those people who are seeking to purchase properties.
Lord Oxburgh
Before the Minister sits down, would she care to comment on Amendment 161A?
Baroness Northover
As the noble Lord said, this creates a duty on bodies that issue demands for council tax,
“in an area designated as liable to flooding to include prominently on or with such demands the information that the relevant property lies within a flood risk area and information on where relevant advice on flood insurance may be found”.
I hope that even though I did not make explicit reference to the noble Lord’s amendment, I have laid out for him where the information is already provided, which is why we do not believe that his explicit reference is required. If the noble Lord looks at what I have said and is not reassured by what I have laid out in terms of addressing the substance of what he seeks, maybe we can have further discussions after Committee.
Lord Oxburgh
I simply say that there is a big difference between having information available—I readily concede that the Government are doing that with their proposals—and ensuring that people know about it and are reminded of its importance.
Baroness Northover
As I said in my response, we are putting the onus on home owners to seek the information—and I have indicated where that can be acquired—rather than to receive the information, as the noble Lord suggests. I appreciate that this may not be quite as strong as he would wish, but nevertheless there are a number of different sources for this information and a number of ways in which property owners, when they are ceded to Flood Re, will be informed as to their status. If they make a claim they will obviously be informed that that is the case. Therefore there are a number of ways in which they will receive information, even if it is not quite as comprehensive as the noble Lord might wish.
Winter Floods
Lord Oxburgh Excerpts(10 years, 9 months ago)
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Lord De Mauley
My Lords, I thank the noble Lord for his supportive comments, especially his sympathies for those who have suffered and the households and farms that have been flooded. As discussed in Questions, they have suffered a terrible experience. Like the noble Lord, I pay tribute to the emergency services, the Environment Agency and the Flood Forecasting Centre staff and to the leadership shown by the local authorities.
As alluded to by the noble Lord, there has been significant damage to sea and flood defences and road and rail infrastructure. Urgent repairs were made to critical coastal defences before the spring tides early this month. The Environment Agency is currently assessing the damage to flood defences. It may take a number of weeks to achieve a full assessment as water levels fall.
The noble Lord referred specifically to the Somerset Levels. As discussed in Questions, my right honourable friend the Secretary of State for Environment, Food and Rural Affairs has asked for an action plan to be developed within the next six weeks to look at different options as to how flood risk could be better managed sustainably on the levels and moors over the next 20 years. Dredging will form part of that plan but it will not provide the whole answer. The plan will look at a number of other options for improving the area’s resilience in the longer term.
The noble Lord, Lord Whitty, referred to lessons learnt. I agree with him very strongly about that. Those lessons will go quite wide. I also agree with him on the importance of a catchment management approach. The noble Lord referred to power shortages. My understanding is that of the 50,000 people who lost power the night before last, the substantial majority had power again yesterday. The energy companies are working hard on that. The noble Lord referred to transport. Immediate work is already underway, with that urgency that he described as so necessary. The noble Lord asked about the capability of the Environment Agency to continue to perform. The Secretary of State has been assured by the chief executive of the Environment Agency that he has every intention of protecting front-line services concerned with flooding. I have no reason to doubt his ability to do that.
I return to lessons learnt. The Minister for Government Policy is undertaking a review specifically to identify those lessons. There are a whole range of things that it will look at, and I know that he is looking to report to the Prime Minister as soon as he can—that will be weeks, not months.
The noble Lord referred to the Pitt review. The vast majority of its recommendations have been implemented. We are committed to implementing the remaining five by the end of this year. Some of the main aspects to come out of Pitt that we have implemented so far are the creation of the Flood Forecasting Centre, much lauded in recent weeks for its ability to warn us where the problems were coming, the publication of the National Flood Emergency Framework and the provision of funding to more than 100 specialist flood rescue teams. The Environment Agency has published its national strategy, which will help communities and all parties to work together to manage flood and coastal erosion risk.
Lord Oxburgh (CB)
Before the Minister sits down, might I ask him whether he would be willing to include in the list of those whom he has thanked for their contribution in understanding and managing the present difficulties the Met Office? We may not enjoy the information that it gives us, but it is certainly useful.
Lord De Mauley
That was an outrageous omission of mine, my Lords, and I absolutely do that.
Water Bill
Lord Oxburgh Excerpts(10 years, 9 months ago)
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Lord Oxburgh (CB)
My Lords, I have various interests to declare, which I shall do during the course of my remarks, but in so far as water metering has been mentioned, and we have to be very careful about these things these days, I should declare an interest as a director of the company that designs, builds and supplies water meters that telemeter their output to wherever it is needed.
At this stage in the debate, many of the more attractive foxes have been shot, and there is not much point in revisiting the corpses, which have been well worked over. It is clear that we are in a changed situation. Climate change will bring us less predictable and probably more intense weather episodes and we have the problem of growing urbanisation.
I, too, welcomed and applauded the White Paper and I am a little disappointed, for reasons that have been rehearsed, over the content of the Bill that we have today. Indeed, many of the points raised in the White Paper were foreseen in the report of the Science and Technology Committee some years earlier in its investigation most ably chaired by the noble Earl, Lord Selborne.
Today, I will restrict my remarks to three fairly high-level points. First, a number of noble Lords have referred to the question of the interface between the range of regulatory bodies involved in the areas of water provision, water discharge and flood containment. It would be of use to the whole House during further consideration of the Bill if the Minister were to agree to concisely put down, perhaps in a note in the Library, the present view of the responsibilities of the agencies involved and the accountability between them. One thinks immediately of Ofwat, the Environment Agency, the Drinking Water Inspectorate, Defra itself and, certainly in the discharge of water, the whole range of organisations involved in sustainable urban drainage systems—SUDS, as referred to by the noble Earl, Lord Selborne—and other related matters. It is hard to find this in a coherent and consistent manner at the moment.
I turn now to the question of a high-level, long-term national water strategy. I am not clear where the responsibility for that lies. I have searched the websites of the various regulatory bodies and Defra in vain to find an answer. I may have simply looked in the wrong places and not found it, but it is clear, to me at any rate, that we need a long-term strategy to deal with the challenges of climate change and increasing urbanisation. We need to be looking at a range of possible future scenarios for 25 or more years ahead. We may indeed find that the resilience criteria need to be changed and that more major infrastructural developments are needed as we understand climate change better. The reason for doing this now is that infrastructure developments are extremely slow to build. It is a long, slow business.
It is also worth pointing out that because moving water is expensive, the first solution to water problems should be sought within each catchment area. This does not mean that there ought not to be water transfer around the country. However, it is likely to be an expensive solution if done on any large scale. It does mean that we have to look hard at local solutions, and these have to start, as many have said, with reducing waste and leaks, or other deficiencies.
Beyond that, desalination has to be considered. The plant built by Thames Water in the Thames estuary is an example. To declare an interest, a company of which I am a director is providing the desalination plant with renewable energy. In many urban situations, however, as the Minister pointed out, particularly those located away from the sea, the solution may well lie in regenerating and purifying sewer water to potable standards. In this way a city could make an approach to being water self-sufficient. There is of course, as the noble Lord, Lord Redesdale, has pointed out, a serious energy penalty. Enhanced storage of water will also have a role to play.
A good example of both long-term strategic thinking and a resilient system is Singapore. Again I have to declare an interest, having for some time co-chaired the Public Utilities Board’s advisory committee on water and environment. Singapore now has what are described as four taps: water imported from Malaysia by pipeline, rainfall water from its own catchments, water from desalination, and so-called new water produced by the reprocessing and purification of waste water. The outcome of this long-term strategic programme is a resilient system implemented by private companies.
Finally, I shall say a few words on R&D. The UK water industry has had a poor record in recent years. Investment in water R&D has given a number of countries, some of them small, major positions in the international water industry—an industry that will necessarily grow with the world population and with the increased expectations of that population for higher living standards. Two examples of small countries that have built international reputations in water science and technology are the Netherlands and Singapore. For our part, we have had a regulatory regime imposed by Ofwat that made significant investment in long-term fundamental research virtually pointless, and indeed impossible. I understand that Ofwat has now changed its policy, but there is a lot of ground to make up. A second problem is that, with the investor profile described partly by the noble Lord, Lord Whitty, but also in the recent document by the New Policy Institute, the UK water companies tend to be seen simply as reliable and steady sources of income rather than as companies that should explore new technology that might lower costs, let alone earn from their R&D.
It is sufficient to say that at the most recent major international water meeting that I attended there were nearly 1,000 companies exhibiting their products. Among them I found only three from the UK, all concerned with pipelines. I have already drawn attention to the energy cost of purifying water to potable standards. This is now largely done with reverse osmosis membrane technology. The challenge is to devise membranes that will have lower energy demands. Singapore is one of the global leaders in this field. This is one example but there are a host of other examples of useful and applied research where this country has little or no presence, meaning that we are simply going to be followers.
The relatively small R&D capacity of UK water companies means that many do not have the competence in-house to be an intelligent customer for new technology and, as a consequence, tend not to use or exploit new technologies. That means that they will not be able to achieve the efficiencies and consumer price reductions that are urgently needed.
Water is set to become a major issue in this country. Although we have some companies that are forward-looking, many are not. To cope with the challenges of climate change and population, we need a well regulated and well run industry that is technologically sophisticated and aware. It is not clear that we have it today. This Bill is good as far as it goes but we shall need another.
Queen's Speech
Lord Oxburgh Excerpts(14 years, 5 months ago)
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Lord Oxburgh
My Lords, I, too, welcome the noble Baroness and the noble Lord in their new roles on the government Front Bench.
Today, I will continue the energy theme and talk about electricity supply. Unfortunately, the financial crisis is not the only one facing this country. I believe that every informed observer recognises that we have a looming electricity shortage. Older generation plant is being withdrawn from service without a plan for timely replacement of capacity. The problem has been apparent for years. With every passing month the opportunity to make an orderly transition to a modern electricity supply system slips away. We are facing a crisis that is entirely of our own making. The situation has not been helped by 17 changes of energy Minister in the past 10 years. Energy policy requires both understanding and continuity. I declare an interest as a director of Falck Renewables and Blue-NG and as honorary president of the Carbon Capture and Storage Association.
The role of government is to steer a smooth transition from a fossil fuel economy to one that is economically and environmentally more sustainable. Electricity generation is the most complex part of energy policy. It is complex because different methods of generation have quite different characteristics and because electricity demand can vary by a factor of three. Furthermore, it is not clear whether in the long term electricity demand will increase or decrease. It will decrease because of energy-saving measures and greater efficiency but may increase through population increase and, indeed, through increasing electrification of the economy.
Overall, our priorities have to be pretty clear. We need security of fuel supply and electricity supply; environmental security in the form of minimal emissions of particulates and greenhouse gases; and all that at the lowest cost. The Government have to balance these priorities against each other, take a system-wide view of electricity generation and then provide a regulatory and financial framework which aligns the interests of energy companies with the long-term interests of the country. The framework needs to recognise that many of these companies are international and has to be sufficiently clear that it provides business with the confidence to make the 30 to 50-year capital commitment in the UK. Today confidence is lacking. Building this must be one of the highest government priorities.
Security of electricity supply requires a diversity of generation methods and energy sources. Within a decade there will be an increasing role for photovoltaics, tidal generation, biomass, biogas and other technologies. However, today the main ways that we have of generating electricity are wind, nuclear, coal and natural gas, and the near-term strategy will be based on these. But because their characteristics are so different they cannot sensibly be combined in any proportions that happen to be the outcome of short-term market forces or, indeed, the likes or dislikes of particular pressure groups.
In the absence of government steer, and with uncertainty about the future penalties for emitting CO2, the market would, if left to its own devices, produce a system built entirely on gas. Gas plants are flexible, the least expensive, quick to build, and the gas price risk is carried by the consumer. However, this would not be in the country’s best interests.
Time precludes discussion of the complications of different generation mixes, but as an example, the proportion of wind in the mix has implications for the proportion of nuclear. Both are relatively inflexible and because most of the cost of both is paid at the time of construction there is no saving in not using either to the full when they are available. The proportion of wind also has a major bearing on other aspects of the system; for example, whether to build interconnectors with a view to exporting electricity when generation exceeds demand and importing it when we have a shortfall. Danish experience in this respect is not encouraging but there are obviously other ways of managing wind intermittency. I make these points only to emphasise that there is no single correct answer to the balancing conundrum; but there are numerous wrong ones. Action is urgent because lead times are long.
We have to consider the system as a whole and the interactions, both near-term and long-term, between its parts. That includes the electricity transmission grid, much of which will have to be replaced over the coming decade.
In conclusion, I re-emphasise that we have to consider the system as a whole. There are political decisions, technical decisions and business decisions to be made. I hope that the Government will consult rapidly and widely, and then act decisively. I wish them well.