National Policy Statement (Waste Water)

Andrew Love Excerpts

Monday 19th March 2012 Commons Chamber

[Richard Benyon]

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

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

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

One concern about both the development at Deephams and the Thames tunnel is the role of Ofwat. There is concern that Ofwat’s attention may be somewhat too concentrated on the Thames tunnel, for all the good reasons that we have discussed, and that it may not give sufficient priority to Deephams. Can the Minister reassure us that that will not be allowed to happen?

[Richard Benyon]

I can assure the hon. Gentleman that that is a matter of great importance to Ofwat. It has agreed funding to progress the Deephams upgrade, which will increase treatment capacity to accommodate the expected growth. I am convinced that Ofwat is taking the project seriously, but I am happy to write to him with more details. I think it would strenuously deny that it is looking myopically at the Thames tunnel, to the exclusion of Deephams. Of course, it is perfectly in order for him to contact Ofwat, because it is the independent economic regulator of these matters.

We made statements to the House about the Thames tunnel in November 2011, accompanied by documents setting out what we believe is the irrefutable case that it is the correct scheme for our capital city. To address the hon. Gentleman’s concern, I point out that although improvements to the Deephams sewage treatment works may have received less public attention over the years, they are on a large scale. The current site covers about 30 hectares and is the ninth largest sewage treatment works in England.

The improvements are essential to ensure that environmental quality standards in the waterways into which the treatment works discharge meet European and national standards. As the developer, Thames Water, is still evaluating the site and treatment options prior to selecting a preferred option for development, the waste water national policy statement does not consider alternative options. It will be for Thames Water to justify its preferred option in its development consent application.

The national policy statement, as with planning policy documents in general, does not prescribe the use of specific technologies. That is to ensure that developers are not fettered by the Government from taking account of future technological advancements. It is up to the developer to justify in its application its preferred treatment option, including any options it has considered and ruled out.

Although the national policy statement details two potential nationally significant infrastructure projects, may I stress that we are not here to debate how those schemes may be delivered? Our purpose is to discuss whether the national policy statement fulfils its requirements under the 2008 Act, and therefore whether it is fit for purpose. Designation of this national policy statement is not the last opportunity for people to have their say on development consent applications for waste water infrastructure of national importance. Developers must consult local communities before submitting an application to the Planning Inspectorate, and people will have the chance to have their say during the examination by registering and making representations to the Planning Inspectorate.

The waste water national policy statement is critical in helping to deliver important infrastructure developments and in ensuring that the right framework is used in the consideration of development consent applications. I strongly believe that the waste water national policy statement provides robust justification for the new infrastructure proposed. I welcome the debate and look forward to responding, with the leave of the House, to the points raised in it.

--- Later in debate ---

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

I thank the Minister for ensuring that we have this debate, especially as I had begun to lose faith that we would have an opportunity to discuss the national policy statement. Those who were present for the last debate will be unsurprised to learn that I propose to focus my remarks on the Deephams works in my constituency. I welcome the Minister’s comments on Deephams, and I want to press for a little more reassurance.

Let me give some background on Deephams. The existing infrastructure is exhausted. There has been little investment in recent years, although there is now to be an investment of £50 million, which is very welcome. Deephams is a constrained site, but that was not always the case. Many years ago, when the Lee valley was a leafy area, none of my constituents lived particularly close to Deephams, and most of them barely knew that it was there. In fact, it could be said that they did not really care, but that has changed in the last 10 years.

Housing now abuts the very edge of Deephams, and there are also adjacent industrial sites. It is now very much part of my constituency. Statutory nuisance is a major, and continuing, issue, and I have had many an argument with both constituents and Thames Water about it. Because some of my constituents now live close to the site, they are very concerned. We must address this issue.

The national policy statement attempts to provide reassurance. I was disappointed that the Select Committee’s recommendations were not followed, but I understand the reasons for that. I have now been somewhat reassured, and welcome some of the national policy statement recommendations. As the Minister said in his opening remarks, there is no longer a preferred option for redevelopment, so a range of options for Deephams can be considered. That is important. Fresh priority has also been given to design issues. That will be important in the context of Deephams, because of the constrained nature of the site. The Minister mentioned greater flexibility, too. Over the period in question, the number of people that the sludge works will serve will increase from about 800,000 to about 1 million.

The national policy statement contains comments on infrastructure. It says the infrastructure at Deephams is out of date and needs to be replaced. I want to add to what is contained in the national policy statement, and seek reassurance on two issues: the central role of Ofwat, and how we can best ensure that the fact that the site at Deephams is constrained does not prove to be an insurmountable difficulty.

First, let me tackle the issue of Ofwat. As everyone in tonight’s debate has recognised, it has a critical role to play in infrastructure investment. However, according to the Government’s water White Paper, Ofwat needs to be more competitive, less bureaucratic and much more flexible in financing infrastructure. Indeed, I understand that that will form a core part of the water Bill that will come before the House in the next Session. That new regime will not come in until after the next general election, but the need to meet EU water improvement standards means that Deephams has to be operational by 2017. So the first issue that I would like the Minister to talk about is: how we can achieve the benefits that the national policy statement mentions—innovation, flexibility and greater freedom in terms of infrastructure investment —from an unreformed Ofwat? What can we do to make sure that Ofwat is adequate for the task?

The second issue to address is the constrained nature of the Deephams site, and I wish to say three things about that. First, a higher level of water treatment must be achieved in a smaller area, as space is very limited at Deephams. Secondly, it is possible to retrofit the installation of the new facilities into the existing tanks—indeed, new technology is well suited to that retrofit capacity. Thirdly, we must minimise the statutory nuisance to adjoining residents. That is a continuing problem that will not go away, and it needs to be addressed.

We can best try to answer all three issues in relation to this site by using new technology. Using new technology will give us the additional benefit of future-proofing for likely required improvements in water quality over the extended life of the new Deephams, and it will also help to deal with further population increases—it is suggested that London’s population will increase significantly over the next 25 years—and, of course, climate change. If we are to future-proof for all three of those, technology will be very important. However, it must be tried-and-tested technology, and it must avoid the danger of being out of date even before Deephams is up and running.

May I conclude my remarks by asking the Minister to give a little further reassurance to my constituents and to the House that the role of Ofwat will enable the recommendations of the national policy statement to happen? May I also ask what role new technology will play in achieving our ambitions for Deephams? In such a constrained site, it seems to be the only solution that will be adequate for the task of making Deephams the sort of 21st century facility for which we are all hoping.