Flooding

Andrew Percy Excerpts

Tuesday 5th January 2016 Commons Chamber

[Elizabeth Truss]

I thank the hon. Lady for her question, but I point out that the Labour party’s proposal going into the 2010 election was to halve the amount that it would spend on capital spending. We increased spending on flood defence from £1.5 billion to £1.7 billion in that period. I have already said that I will look at the Leeds scheme to ensure that it is sufficiently resilient for the new conditions that we are facing, and I am happy to meet the hon. Lady and her colleagues to discuss that further.

[Andrew Percy (Brigg and Goole) (Con)]

I declare an interest, because I live 15 feet from the River Aire, and I spent Boxing day onwards sandbagged in my house, as did many of my neighbours. I thank the Secretary of State for her telephone call and her concern for my constituency. As the most flood-prone area of Britain, we have been hit repeatedly, although this time we were a little better off. Will my right hon. Friend give me two assurances? First, will she assure me that in any review, the flood defence funding that has been announced for the Humber estuary and tidal tributaries will remain in place and not be affected? Secondly, can we consider the whole policy of the EA, which seems to be about moving water as quickly as possible from the upper catchment down to people in the lower catchment in my area? We are already below sea level—water has to be pumped daily, and we need to be defended by banks that are 10 feet or higher.

[Elizabeth Truss]

I was happy to speak to my hon. Friend and ensure that he had sufficient sandbags in his area. I agree that we need to consider catchment management, and that is what the Natural Capital Committee will be doing. We have already seen successful pilots such as the Slowing the Flow project in Pickering in Yorkshire, which was effective. We must ensure that we are putting such measures in the right places, which requires whole catchment management and analysis. That takes time, but I agree that it is an important piece of work that we must get on with.

Oral Answers to Questions

Andrew Percy Excerpts

Thursday 30th October 2014 Commons Chamber

[Mr Speaker]

Guy Opperman. Not here. Mr Andrew Percy.

[Andrew Percy (Brigg and Goole) (Con)]

Thank you, Mr Speaker. I am rather pleased he is not here—nothing personal.

May I draw my right hon. Friend’s attention to the Humber flood risk strategy, which is a joint strategy supported by all Members of Parliament to get £880 million of investment into the Humber for our defences? The current system does not work for us. We need a specific solution for the Humber.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)]

My hon. Friend and his colleagues across the House who represent areas in the Humber estuary rightly consistently raise the need to review flood defences there and make sure that we have adequate investment. We will be bringing forward a capital programme alongside the autumn statement, and I know that he and his colleagues are very much pushing the case for investment in his area.

Humber Flood Risk Management Strategy

Andrew Percy Excerpts

Tuesday 1st July 2014 Westminster Hall

[Martin Vickers]

The right hon. Gentleman is absolutely correct. It is frightening to consider that people are still suffering in that way after six or seven years. As he also pointed out in his speech, floodwaters do not follow constituency boundaries.

We have been united in our approach to the issue. My right hon. Friend the Member for Haltemprice and Howden spoke about the united approach taken by local authorities. As those of us who live locally know well, the Humber can often divide communities, particularly political communities, but on this occasion we are absolutely united. The Government are putting together longer-term plans, and the figures—between £800 million and £900 million—have been quoted during the debate. I recognise that the Minister is not going to write us a cheque later today—

[Andrew Percy]

Tsk!

[Martin Vickers]

As my hon. Friend points out, that is extremely disappointing, but our constituents deserve nothing less than a serious plan, in the very near future, that will guarantee them the security and safety they need in their homes. If industry in northern Lincolnshire and the Humberside area is to go forward as we all want it to, it needs, as the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) pointed out, to know that the Government are behind it and that the Environment Agency and every Government agency involved will produce a long-term plan that provides the necessary security.

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[Andrew Percy (Brigg and Goole) (Con)]

It is a pleasure to follow the hon. Member for Kingston upon Hull North (Diana Johnson), whose points on flood insurance are well rehearsed. I supported her on the matter during proceedings on the Water Act 2014. I congratulate my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) on securing the debate. Coming on last means that unfortunately I will be repeating not only what he has said but what many other right hon. and hon. Members have said, but as we have 10 or 11 minutes until the Front Benchers start to be called, I am sure that you will indulge me in that endeavour, Sir Roger.

The Minister will, sadly, hear again many things that I have previously said, not least because at the time of the tidal surge we were considering the Water Bill and I was serving on the Committee. I used that opportunity on more than one occasion to regale the Minister with accounts of what was happening in my area, but just for the record I want to talk about my constituency again now, with specific reference to what happened in December.

My constituency was hit most of all in December and, as any flood extent map will show, it remains the constituency with the most land at risk of flooding. Unfortunately, we were hit from three sources. We saw the Humber coming over at South Ferriby and Winteringham, the Trent coming over at Burton-upon-Stather, Burringham, Keadby and Amcotts and the Ouse coming over at Reedness, so in total about 11 communities and 300 to 400 properties were flooded. As right hon. and hon. Members have said, we were lucky, although we do not feel particularly lucky, that the impact was not a lot greater.

I live right on the bank of the River Aire, and I was standing by the river at the time of the surge that evening. The water was within inches of coming over, even though we enjoy very high levels of protection there—the highest that the Environment Agency offers. I was also standing on the banks the next morning for the high tide of the River Ouse at Goole, which also had a near miss and where there are 18,000 residents. Had the circumstances come together in the way that other right hon. and hon. Members have said we were lucky to avoid, our area would have been devastated.

Unfortunately, such events are not new to our area or, in particular, to my constituency. We had flooding in Goole in 2011, 2012, 2007 and 2008, and in Crowle in 2012. It is a recurring theme in our area, not least because of the geography. The flood risk extent maps explain why. My right hon. Friend the Member for Haltemprice and Howden gave a potted history of the draining undertaken by Vermuyden in our area. That was hundreds of years ago. People have been living happily in our area since then, and it is of concern to people, as my hon. Friend the Member for Beverley and Holderness (Mr Stuart) said, that previous regimes and previous flood plans seem to operate on the premise that the rural areas can operate as a sponge, or be sacrificed, for the benefit of other areas. I want to explain why that is particularly dangerous in my constituency.

In 2007 we were faced with the first draft of the River Trent flood catchment management plan. Had it not been for the IDBs and several farmers who were well educated on the issue of flooding, that could well have been the policy that the Environment Agency adopted. It was only by arguing—we got up petitions and all the rest of it—that the Environment Agency was made to think again and to reassess the matter. It concluded that had it adopted the policy that it originally wanted to adopt, which was one of withdrawal, retreat and sacrifice, the entirety of the Isle of Axholme, apart from two high spots at Epworth, would have been underwater within a decade or two.

[Sir Greg Knight]

If the Government of the day, as a matter of policy, decide that it is all right to allow agricultural land to be flooded, is there not an argument to say that farmers should be paid for storing water just as they are for growing crops?

[Andrew Percy]

That is an interesting idea. I think that we would all prefer it if farmers were allowed to continue producing food, but my right hon. Friend raises one of the biggest criticisms of the current funding regime: the value placed on agricultural land is not sufficient. I am not against flood alleviation projects—of course not—and that includes the sacrificing of land at Alkborough flats in my constituency. That operated very well and possibly lowered water levels in the Trent to such an extent that it prevented a couple of communities from flooding. We do not have a problem with some of these schemes, in appropriate areas. What we have a problem with is the value placed on agricultural land and rural communities generally under the current system. In the original drafts of the various flood catchment plans for our area, there seemed to be a policy of retreat and sacrifice of rural areas. That has abated somewhat through various processes, for which we are very grateful.

My right hon. Friend the Member for Haltemprice and Howden and others, including the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson), have highlighted the nationally important infrastructure in our area and the national risk register. In my constituency, to add to the list of nationally important infrastructure that we all seem to be trotting out today, there is of course the port of Goole, which is England’s busiest and biggest inland port. We also have the power station at Keadby, which of course was one of the communities flooded in December. There is the Drax power station just across the way, and biomass imports come through my constituency via the railway lines. My hon. Friend the Member for Cleethorpes (Martin Vickers) talked about petrochemicals, and of course we have the motorway and rail infrastructure and agricultural land. I believe that 55% to 60% of our land is grade A agricultural land, so it is some of the most productive land in the country.

We have mentioned the Isle of Axholme, but of course the defences along the Trent and the Ouse do not just protect the 50,000 acres and 20,000 residents there. They are also major defences for Doncaster and Thorne. A catastrophic breach of those defences would have a significant impact on Doncaster, but although that is sometimes taken into account, it is not always accounted for in funding decisions.

[Mr David Davis]

May I draw my hon. Friend’s attention to something that has not been mentioned so far? Even though residential accommodation is given the highest score in the ranking, that is based on property value. One thing that works against the north of England is that properties there tend to be of lower value, which leads to a cyclical effect: the house is cheaper, so it gets less defence and therefore gets cheaper. It feeds on its own poverty. Does my hon. Friend agree that that has a distorting impact on flood defence funding?

[Andrew Percy]

Absolutely. I want to talk about the problems and failings in the current system, but before I do—I do not want to be entirely negative—I will praise the Government. The response in my area after the December surge was welcome. We appreciated the flood repair and renewal grants, and the support for business has been well received. Also, additional Government funding since December has been of particular benefit to my area: a £5 million scheme to raise the banks at Reedness has been approved, as has £3 million to shore up the banks at Snaith, and work will begin in a month’s time to shore up the banks at Burringham, which were not breached but were severely damaged.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate the right hon. Member for Haltemprice and Howden (Mr Davis) on his leadership on this matter, from which the whole region will hopefully benefit.

The hon. Member for Brigg and Goole (Andrew Percy) referred to the response to the floods. The local agencies responded well, but for future learning I draw attention to the Humberside fire and rescue service’s plans to develop the Ark flood preparation and response centre, which would be of major benefit not only to the region but nationally. What does he think about that?

[Andrew Percy]

I thank the hon. Gentleman for reminding me of that excellent bid, which aims for transition funds from the Department for Communities and Local Government and will be decided on towards the end of the year. He recently met the Humberside fire and rescue service to discuss the bid, which would create a national flood training centre. We do not currently have such a centre and firefighters must undertake training in fresh water, which is not always as clean as it could be. Events cannot be modelled in such water, but, more importantly, many firefighters come back with stomach bugs, which makes the practice expensive. Where better could a training centre that can model flood events be placed than in the Humber, which has the second highest flood risk after London? The bid has support from both sides of the Humber and from MPs of both parties, so if there is anything that the Minister can do to push it along with his friends at DCLG, it would be greatly appreciated.

I praise the Government for acting swiftly with the surveying work and for providing additional funding, which will benefit my constituency in the short term, but it is only a short-term fix. Although we are grateful for additional funding, today’s debate has been about the long-term strategy that is desperately required. Our region—the Humber, east Yorkshire and north Lincolnshire—is on the edge of an economic renewal. The Siemens investment has been talked about, and there is the potential Able site, so a lot is happening. The greatest risk to economic renewal must be the potential failure properly and adequately to deal with the massive flood risk. £888 million does sound like a lot of money, but it is not that significant when spread over 10 or 15 years. The potential return tells us all we need to know about the value of that money.

I do not have time to go on about the problems with the current funding system, such as building in future development and the value of agricultural land—the Minister has heard those arguments before—but I urge the Minister, who is gracious in all debates and knowledgeable about the flooding that hit our area, to do all that he can to support our proposal for a long-term solution to the problems. Although I said that it was outrageous that he would not write us a cheque for £888 million today, it is not actually all that outrageous—

[Martin Vickers]

Tomorrow will do.

[Andrew Percy]

As my hon. Friend says, tomorrow will do. We simply need to build support within the Department for Environment, Food and Rural Affairs and across Government for a long-term solution to a unique problem. Everybody claims that their area is unique, but the Humber really is, for all the reasons that have been expressed today. There is a massive flood risk to infrastructure there.

I congratulate my right hon. Friend the Member for Haltemprice and Howden on securing the debate. We will move forward as a united group to meet the Prime Minister next week, which will not be the end of it. We will continue to push the matter to ensure not only that businesses get the required investment to encourage them to create jobs in the area, but also that the homes of the people whom we represent are better protected in future.

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[Dan Rogerson]

I will come on to resourcing. The hon. Gentleman has made a point about the approach in another jurisdiction; a number of people referred to Holland—or the Netherlands, as I should properly say.

One example of the ongoing investment I referred to is the £20 million defence improvement project that is under construction to provide better protection in Grimsby. That will be completed in autumn 2015.

I will say a little more in a moment about what is being done in the Humber area, but let me first put this issue in the national context, following on from the comments of the hon. Member for Brent North (Barry Gardiner). I have worked with him in Select Committee, and I now face him in debates—he is one of the two Opposition Front-Bench Members his party leader has thoughtfully provided to shadow me, and I am obviously grateful to both of them for the way in which they do that.

Let me reiterate that flood management is a Government priority. We are spending £3.2 billion on flood and coastal erosion management over this Parliament. For the future, we have made a record six-year capital commitment of at least £370 million a year, as the hon. Gentleman said, to improve flood defences, and that will rise to more than £400 million in 2020-21.

With the 2014 autumn statement, we will publish a pipeline—to use the jargon—for flood defence improvement projects for the next six years. That will provide protection for at least 300,000 further households throughout the country, meaning that, by the end of the decade, we will have provided a better level of protection to at least 465,000 households. That is on top of our achievements over this Parliament.

Despite taking a terrible battering this winter, our defences have protected a significant number of properties. About 1.3 million properties and 950 square miles of farmland were protected during that period. In response to the exceptional events of the winter, the Government acted quickly. We not only made an extra £270 million available to repair, restore and maintain critical defences, but made available recovery money for those most seriously affected.

The £270 million of additional funding is being used on the ground now to help the Environment Agency and other risk-management authorities to ensure that important defences are repaired before the coming winter, and are returned to target condition as soon as possible. From time to time, it has been implied that some of these defences will not be there to do the job for which they were originally designed; that is why it is crucial that the money is spent to ensure that they are back up to target condition.

In 2007, the then Government approved the Humber flood risk management strategy, providing the Environment Agency with a strategic business case to invest up to £323 million over a 25-year period up to 2032 on works to manage and reduce tidal flood risk in the area. Although the strategy was led by the Environment Agency, it was developed with, and supported by, other risk-management authorities and key stakeholders in the area. The first programme of improvement schemes started to be delivered in 2009, including schemes at Brough, Swinefleet, Halton Marshes, Stallingborough and Donna Nook. Schemes have since been delivered at Burringham, Gunness, Tetney and Grimsby, and the scheme at Cleethorpes is under construction. Defence improvements are also being planned for Hull.

The right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) set out the importance of the protection at the Albert dock. The temporary defences are there, so they are in place to increase the level of defence. The work he was concerned about, which will make those defences permanent, will be completed during this financial year. Even if the defences are not made permanent by this winter, the temporary defences are in place, and they will be made permanent. It is important that the right hon. Gentleman raised the issue, given the level of risk. In the time remaining, I want to pick up on a few points.

[Andrew Percy]

Will the Minister give way?

[Dan Rogerson]

May I respond to the points that have already been made? I apologise to the hon. Gentleman, but there is a great deal to get through.

The right hon. Member for Haltemprice and Howden mentioned the importance not only of new defences, but of assessing existing defences to see where improvements need to be made. That very much has to be part of the strategy, and he is right to mention the issue. Hull is an example of that process.

The right hon. Gentleman mentioned the effects over the entire estuary. It is possible to ring-fence some of the major population centres. Other Members have referred to the times when farmland can be used as part of a short-term measure to absorb water. Although I accept the point the right hon. Member for East Yorkshire (Sir Greg Knight) made about the importance of farmland to the local economy and to the country’s food security, there are schemes—there is one in Kent—in which farmers have been paid to take flood water as part of a local strategy. Where a case can be made for doing that, it can certainly be part of the solution.

We have put in place the flood recovery fund for farmers, so that they can apply for funds to restore land that has been affected. A number of farmers in the west country have done that, but the money has also been made available to people who were affected by the early December flooding in the region we are talking about. It is important to put on record that that funding was available to help people deal with the shorter-term effects.

I am grateful to the right hon. Member for Haltemprice and Howden and other Members for their recognition of the fact that I do not have a cheque book with me and cannot sign over up to £1 billion of investment today.

Water Bill

Andrew Percy Excerpts

Wednesday 7th May 2014 Commons Chamber

Lords amendment 72 allows the Secretary of State to require Flood Re, through regulations, to provide information for relevant insurers to pass on to their policyholders who will benefit from Flood Re. We expect the information to cover the Flood Re scheme, flood risk and the actions householders can take to reduce the risk and impact of flooding.

[Andrew Percy (Brigg and Goole) (Con)]

I am intrigued by and interested in this amendment, not least because so many of my constituents—perhaps the majority of them—live in flood-risk areas. Will the Minister say a little bit more about what he envisages the Secretary of State will require to be provided to residents in terms of mitigating risk? This is an interesting idea, but my question is about the breadth of that information and whether it will include particular providers of certain solutions.

[Dan Rogerson]

The first thing that will be taken forward is information that a policy has been ceded to Flood Re. It is important that people should know that, as the scheme has a life span and the whole direction of policy is to protect more homes and to move to a post Flood Re period in due course. What exactly that information will take forward is a matter for discussion with the industry. When it comes to particular technologies or particular things that may help in certain circumstances, there are experts out there who offer that advice to policyholders. The Government’s current repair and renew scheme is in operation. There is also a body of work out there involving local authorities, which is giving people confidence in what might be done to support them. It is not our intention to be too specific as we consider this measure in the Bill.

I am sure that, like my hon. Friend, other Members will welcome this amendment, because it reflects our belief that it is important that policyholders whose buildings, contents or combined insurance policy are ceded to Flood Re know about their flood risk so that they can take simple steps to manage it. I am talking about signing up to free flood warnings as well as investigating other longer-term options.

To plan for the future, households also need to understand the likely impact of the transitional nature of the Flood Re scheme which is subsidising their premiums. Members should note that it is expected that standardised information will be sent to the customer by the relevant insurer that is ceding the policy to Flood Re, as that maintains the relationship between insurers and their customers.

Lords amendments 84 and 85 provide the power to define in regulations the meaning of “flood” and “flood risk” and are as a consequence of the amendment that I have just described.

Lords amendment 96 addresses the risk that secondary legislation made at the end of the life of Flood Re could be classed as hybrid. I can assure Members that, in any event, we have every intention of carrying out a full consultation before making that secondary legislation to ensure that any private interests are properly considered.

There are also a small number of technical changes made by the Lords amendments to the Bill. They cover the definition of the “eligibility threshold” and are intended to ensure the flood insurance measure is legally enforceable, as the risks relating to flooding are not calculated consistently across the various insurers.

On another matter, the Lords amendments to clauses 56 and 71 on the period of operation of Flood Re ensure that employment contracts within the scheme are transferrable.

Turning finally to the subject of sustainable drainage systems, we have also corrected an error to schedule 3 to the Flood and Water Management Act 2010 to ensure that unused bond funds, called in by a SUDS approving body, can be returned to the right person.

--- Later in debate ---

An issue that caused great concern in our pre-legislative scrutiny in Committee and later was the de-averaging of charges. Concern was raised about the risk of a competition or EU challenge to the Department’s guidance or Ofwat’s implementing rules on harmonised or regionally averaged wholesale charging, which could result in a forced de-averaging of charges. My understanding is that that could be seriously bad news for rural areas and I would like the Minister to put my mind at rest. Amendments were proposed to address that risk, but the Government did not accept that the risk existed or, if it did, that the existing provisions in the Bill were not adequate to address it. Any de-averaging of charges that might arise through the application of the Bill would be highly regrettable. Otherwise, I welcome this group of amendments, but I hope that the Minister can put my mind at rest on the concerns I have raised.

[Andrew Percy]

I intend to make only a short contribution. The Minister probably heard most of what I said in Committee, but if something is worth saying once, it is worth saying three times, so I will do so.

I begin, as I did in Committee, by welcoming Flood Re, which is important. I pay tribute to the Government for getting us here eventually. It is incredibly important for my constituents and those of my near neighbour, my hon. Friend the Member for Beverley and Holderness (Mr Stuart), who is here for this important debate. I am grateful and delighted that we have a scheme up and running to ensure that insurance cover will continue.

I am still concerned about the scheme’s limitation to properties built before 2009—a point that is often made by my constituency near neighbour, the hon. Member for Kingston upon Hull North (Diana Johnson). Many people in my constituency and constituencies nearby who bought their properties in good faith post-2009 have struggled to obtain insurance. I am still concerned that major developments on flood plains are continuing, including the Lincolnshire Lakes project near the River Trent in my constituency, where the proposal is to provide up to 10,000 properties in a major flood risk area on the River Trent’s natural flood plain. I have called on the developers to put a hold on that until we know where we are with flood defence funding for the Humber catchment area, but unfortunately that has not enjoyed the support of local Labour councillors, who accused us of scaremongering in trying to prevent that building on a flood plain. That is a concern because I am worried that the properties will be built but will not be covered by Flood Re and that there will be a whole set of other problems.

When I was in my constituency on Friday, visiting Hook church, which was launching its new heritage boards, I was approached by a single-property leaseholder who is concerned about whether he will qualify for Flood Re. He is not a major investor, but an individual who is using the property as a pension pot. He has been rejected for flood insurance yet again because of the flooding in Goole two years ago, and he is worried that he will not come within Flood Re. I echo the words of my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) about the need for clarity.

I welcomed amendment 72 when I intervened on the Minister. Informing residents that they are indeed part of Flood Re and providing practical advice on their exact flood risk and how they can deal with it are important. The Minister mentioned the renewal and repair grant, which is an excellent proposal. Providing people with the means and advice on how to protect their properties is important, and funding is required. Whether or not there is funding, there is a big job to be undertaken to ensure that residents are properly informed about their flood risk and how they can protect their properties.

Many residents have it in mind that the only way to protect their property is through every-increasing defensive banks in our area, and that may be true, but it is not the answer to everything, particularly as my constituency is so low-lying. Much of it is below high-tide level, so it is impacted not only by tidal and river flooding, but by surface water flooding. Getting information to residents to ensure that they know how to protect their property is vital. I welcome amendment 72 and look forward to establishing in more depth what information will be provided on flood mitigation measures.

The Minister mentioned the renewal and repair grant. I hope that it is in order, Madam Deputy Speaker, to raise that while I am on my feet. Many of my constituents are trying to use the grant, but there seems to be confusion about whether they will be able to access it if the Environment Agency has come up with community improvement schemes. That is a particular issue for one of my communities because the Environment Agency, after pressure from many of us, has come forth with a scheme that will be in place next year to raise defensive banks at Reedness in North Yorkshire. It is not now clear whether those properties will be eligible for a renewal and repair grant. They will still be at risk of flooding and, in the spirit of amendment 72, which is about providing people with more information on how to protect their properties, it is important that they still have access to the grant. It is not their fault that their improvement scheme will come forward more quickly than other schemes. I hope, Madam Deputy Speaker, that I am in order by linking the matter to amendment 72. I can see from that near-thumbs up that I am straying, so I shall move on.

Right of appeal is another issue that I spoke about in Committee. We need a mechanism of appeal for residents who are judged to be outside Flood Re. We know from the debates in Committee and elsewhere that that will be a very small number of people, but they are an important group all the same. It is important to have a mechanism that allows people to understand why they have been drawn outside the scheme, and they should have a right of appeal. Like my hon. Friend the Member for Thirsk and Malton, I ask Ministers to consider this.

I do not want to say much more. [Interruption.] I hear some chuntering from Opposition Front Benchers—in support of my last comment, I hope. If the hon. Member for Penistone and Stocksbridge (Angela Smith) wants to intervene, I will gladly give way. No? Okay.

[Maria Eagle (Garston and Halewood) (Lab)]

Sit down!

[Andrew Percy]

The hon. Lady tells me to sit down; that is a good way to work cross-party, if ever there was one. I will heed her advice, however.

I hope that the Minister will be able to respond to those few comments, particularly on leaseholders. This is an important issue for residents who have made small investments for their pension pots, or in lieu of a pension pot, and who may now be drawn outside the scheme. Other than that, I support the scheme and the amendments outlined by the Minister.

[Dan Rogerson]

I thank all hon. Members who have contributed to this debate, across a broad range of issues, and welcome their questions.

All three Members who spoke mentioned leaseholders. Let me put on record again the point alluded to by my hon. Friend the Member for Thirsk and Malton (Miss McIntosh). All contents policies would be eligible for Flood Re, whether leasehold, freehold, rented or owner-occupied, provided that the properties were built before 1 January 2009 and are in council tax bands A to G. Leasehold houses will also be within the scope of Flood Re in terms of buildings insurance, provided that the leaseholder lives in the property and purchased the buildings insurance in their own name. Flats will be eligible provided that there are no more than three flats in the building and that the freeholder, or one of those with a share of the freehold, lives in the building and takes out the cover.

Managing Flood Risk

Andrew Percy Excerpts

Monday 3rd March 2014 Commons Chamber

[Miss McIntosh]

Indeed. That is the purpose of the debate, Mr Speaker.

I am vice-president of the Association of Drainage Authorities. The Select Committee concluded that drainage boards are best placed to remove the vegetation and to carry out the maintenance that has been mentioned. Indeed, we are grateful that the Government have looked favourably on this opportunity to allow IDBs to use their local knowledge and resources, and to undertake more of the investment. We believe that there is a lost opportunity in relation to funding from private bodies that DEFRA—

[Andrew Percy (Brigg and Goole) (Con)]

Will my hon. Friend give way?

[Miss McIntosh]

I will stick to Mr Speaker’s strictures about reaching my conclusion sooner rather than later.

There is an opportunity to lever in more than 15% of contributions from other sources. Will the Minister tell us how the Government intend to do that? Do they intend to use common agricultural policy funds to encourage farmers to undertake flood prevention measures by rewarding them through EU agri-environment schemes or by paying proper compensation for flood storage, flood alleviation and other such schemes? Innovative funding should stretch to allowing water companies to invest through the price review, as I have said. I am a big fan of SUDS, and I believe that sustainable drains should be introduced by the autumn at the absolute latest. Most of Sir Michael Pitt’s recommendations have been adopted, but not, I note, those on ending the automatic right to connect and about sustainable drains.

I want to place on the record our commendation of the volunteers, flood wardens, police, fire, ambulance and Environment Agency staff and all those who responded to the floods.

There is scope for the Bellwin formula to be overhauled and reviewed radically. I have mentioned how the Yorkshire and the Humber region, particularly North Yorkshire, has not benefited from the formula. We recommend that the Bellwin scheme be amended to enable local authorities to secure central Government assistance to repair and reinstate roads and other infrastructure damaged by flooding. We also recommend a review of local authorities having to incur costs of at least 0.2% of its annual revenue budget to qualify for Bellwin funding to make it fairer by measuring the impact on the local community. I add that there should be a review of the cap on spending, which I understand hampers the ability of district and county councils to raise any further contributions towards a local levy.

Finally, we were told by the Association of British Insurers that this was a one-in-250-years event. It said that the cost to date has been £426 million, of which £14 million has already been spent. We welcome Flood Re, but there are too many unknowns. We need to know more about the cross-subsidy, what the final figure will be and—I repeat—from which budget the funds will come and what progress has been made on state aid should the Government act as an insurer of last resort for a similar one-in-250-years weather event. It is obviously extremely important that the military played a role in the recovery stage during the recent floods. However, the Government are silent over which budget is covering that military activity. It would be extremely helpful for the House to know that.

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[Caroline Lucas]

I am very pleased to hear that, but the comprehensive approach that I am talking about must involve a much wider evaluation of how we use land. For example, we must consider what use farm subsidies are being put to and whether they are inadvertently encouraging unhelpful ways of using land. I am referring to something rather larger than the holistic approach the hon. Gentleman mentioned.

First, we know that allowing development on floodplains puts more people at risk. Secondly, we know that compacted soil and damaged uplands channel water downstream faster. Thirdly, we know that climate change is making extreme rainfall events more frequent and intense. I will outline briefly the solutions we need in each of those areas—solutions that work with nature, rather than against it.

The Government’s ongoing attacks on the planning system are a real problem. Sensible, long-term development control in the public interest is being sacrificed at the altar of mindless, short-term GDP growth at any cost. Development on floodplains and in areas of high flood risk, not just now but for the lifetime of a housing development, needs a stronger, more accountable planning system. We must ditch the current approach that casts sensible planning rules and regulations as a barrier to growth and planners, according to the Prime Minister, as enemies of enterprise.

Crucially, we know that not all decisions about development on floodplains are taken by local planning authorities. The Secretary of State for Communities and Local Government can use his power to call in or recover a planning application. So why is it so difficult to obtain basic information about this from his Department? A written question that I tabled back on 5 February remains unanswered. I hope that the message will reach the Secretary of State and that he will tell us today how many times he has exercised his power to call in a planning application to approve or reject housing or commercial development on a floodplain or in an area of flood risk.

It is simply not good enough for the Secretary of State to point the finger at local councils, nor is it good enough for him to say that 99% of proposed new residential units that the Environment Agency objected to on floodplain grounds were decided in line with Environment Agency advice when the decisions are known. What about all the others? Why will the Government not give us the full picture? The fact that my question remains unanswered a whole month later raises suspicions about whether the Secretary of State has been overruling local authorities or Environment Agency advice and allowing development to proceed in areas at risk of flooding. I hope that that is not the case, but we need to see the statistics and we need to see them now.

A month ago, I also tabled a written question on the impact of recent and future flooding on small businesses.

[Andrew Percy]

On building on floodplains, the view from Brighton might be quite different from that in my part of Yorkshire and Lincolnshire where such building is almost unavoidable because the land is drained marshland surrounded by rivers that drain 20% of the UK’s water. We have a desperate need of affordable housing to help local people who want to live locally. The matter is not as simple as just stopping all building on floodplains, which would price more of my constituents out of the housing market.

[Caroline Lucas]

I thank the hon. Gentleman for his intervention. His point is reasonable, but in areas that he describes—they are not typical but they certainly exist and he has intimate knowledge of them—the architecture could be different with houses on stilts and resilience in the building process. That is not happening right now, which is why we are seeing so much flooding causing so much misery for so many people throughout the country.

--- Later in debate ---

[Mr Stuart]

I would like to say a few words on how my constituency has been affected. It was devastated in the 2007 floods. The impact on homes and businesses was far greater than it has been in the current floods, but, as others have said, flooding is devastating for every home and business. About 1,100 homes and businesses were flooded by the tidal surge in December that affected people around the Humber estuary. Whatever the cause, flooding has a tremendously strong effect.

I would like to praise the work of internal drainage boards in my area. The south Holderness internal drainage board undertook work to dredge Hedon Haven. Dredging needs to be done in the appropriate way and in the appropriate place—I can imagine dredging having a detrimental effect in the valleys mentioned by the hon. Member for Rhondda (Chris Bryant). The incredibly flat area of Holderness is effectively a man-made ecosystem. It is hard to see improved dredging, which would allow very slow-moving water to get out, leading to anything other than an improvement. It will not stop one-in-200-year flooding events having a negative effect, but it will make them last slightly less long with a less wide impact. Dredging also appeals to local people, who like to feel that those bits of the system that drain water away are kept in a state of usefulness.

One point I would like to make to the Minister is that when the Keyingham internal drainage board in my constituency was looking to carry out dredging at Stone Creek and Hedon Haven, the new Marine Management Organisation decided to charge it for a licence. We spent years pulling all the pools and the political will together to get the sign off to allow us to dredge and let the water out, but what happened? This glorified new quango came along and sent in a suggested bill for thousands of pounds to grant a licence, even though the Environment Agency, when it had done similar work elsewhere, had not charged anything. The MMO decided that it had to do so much more work it ended up charging £10,000 for that one bit of dredging. Will the Minister please ensure that quangos do not inflict charges that stop local people doing what is necessary to make sure that things are more sensibly managed?

After 2007, there was a good response from people who had, up until that point, not performed as well as they should; whether that was Yorkshire Water, the Environment Agency or the council. In our area, people did not know who owned the pumps, let alone whether they were responsible for keeping them going, but since 2007 they have worked together. In front of Willow Grove in Beverley, Yorkshire Water has done a great deal of work, and the local council then came in and worked closely with local residents. In 2007, a very beautiful row of houses was famously pictured all flooded. The picture went out around the world. A flood wall has now been erected in front of those homes, trees have been planted and the Westwood area has been restored. Local ownership really can work and we need to ensure we keep it that way.

We need to ensure that we have as broad an understanding as possible of catchments and their impact. That is why all the agencies involved—the hon. Member for Kingston upon Hull East (Karl Turner) who is in his place, Members of the European Parliament, Hull city council, East Riding council—supported setting up the River Hull Advisory Board, which I chair. The Environment Agency and others have supported finding the funding to try to have better modelling of the River Hull catchment, so that we can ensure the effective protection of agricultural land—which deserves consideration—rural areas and the urban areas in Hull. The truth is that we are all in it together and we need to ensure that we have a coherent and cohesive approach that works. I pay tribute to all the agencies that have worked together on the River Hull Advisory Board. We really are taking forward a better understanding and a better policy for the future.

[Andrew Percy]

My hon. Friend is entirely right about the need for catchment plans, but is there not a fear that, such as with the River Aire catchment plan in my constituency, funding will be factored towards the urban areas because of the formula? There is a perception that the River Aire plan is all about protecting Leeds and not protecting those of us a bit further down the river.

Flooding

Andrew Percy Excerpts

Wednesday 26th February 2014 Commons Chamber

[Maria Eagle]

I will not give way. I have given way on a number of occasions, and I want to make progress.

This reckless short-termism is set to cost the country more than the cuts were intended to save. The Pitt review commissioned by Labour after the 2007 floods made it clear that investment in flood protection needed to rise, and by time of the 2010-11 Budget set by Labour, funding had gone up from £500 million a year to £670.1 million, yet by 2011-12, in the first Budget set by the coalition Government, that had been cut to £573 million, which is a reduction of £97 million—a 17% real-terms cut.

[Andrew Percy (Brigg and Goole) (Con)]

Will the hon. Lady give way?

[Maria Eagle]

No, I want to make a little progress.

The budget has remained the same since then, meaning further significant real-terms cuts, year on year. Taking into account the extra funding announced this month, there will still be £64 million less available for flood protection this year than in 2010. The figure is £606 million now, compared with the £670 million available under the previous Government. The chief executive of the Institution of Civil Engineers, Nick Baveystock, said in the past day that this level of spending

“provided neither the level of investment nor long-term certainty required to improve resilience against flooding... This under-spend has been detrimental to communities, business and infrastructure”.

The Government’s decision to reduce the commitment to flood protection was a deliberate one. When the Secretary of State for Environment, Food and Rural Affairs rewrote his Department’s core list of priorities on taking office, he chose to remove the priority to

“prepare for and manage risk from flooding.”

He then stated in front of the Select Committee on Environment, Food and Rural Affairs that he had ordered civil servants to use his new priorities, which no longer included flood risk, when applying spending reductions within his Department. Ministers, including the Prime Minister, continue to claim that more is being spent on flood protection in this Parliament than in the previous one. In real terms, that is nonsense. Thanks to the complaint from my hon. Friend the Member for York Central (Hugh Bayley) to the UK Statistics Authority, we now have an independent view on the Government’s claims. Andrew Dilnot said:

“Our analysis...supports the conclusion that the statement ‘over the current spending review period, more is being spent than ever before’ is supported by the statistics if the comparison is made in nominal terms and includes external funding, but is not supported by the statistics if the comparison is made in real terms or if external funding is excluded.”

That is categorical, so I hope that the Communities Secretary will apologise on behalf of the Prime Minister and all those Ministers who have repeatedly sought to misrepresent the truth on spending on flood defences. As the UK Statistics Authority has stated, the Government like to include external funding in its figures, or “partnership funding” as it calls it.

The figure that Ministers quote is £148 million, yet thanks to a recent parliamentary answer from the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for North Cornwall (Dan Rogerson), the Government have been forced to admit that there is an £80.4 million black hole in this total because they have failed to secure the contributions anticipated. I hope that the Communities Secretary can update the House on how that will be filled.

[Andrew Percy]

I thank the hon. Lady for giving way on that point. Match funding is important in this. Last night, North Lincolnshire council set its budget, in which the Conservative-led council added £5 million for flood defences along the Trent and the Humber. Can she tell me why Labour councillors voted against that budget and that funding?

[Maria Eagle]

I hope that if the Minister, whose parliamentary answer I am quoting from, has updated figures, he will provide them to the House when he replies to the debate.

--- Later in debate ---

[Mr Pickles]

Of course. Absolutely. A mobile home is entitled to the same protection as a dwelling that has foundations.

On the Pitt review, in which the hon. Member for Garston and Halewood (Maria Eagle) took such an interest, the vast majority of its recommendations have been implemented, with the majority of measures now in force. The Department for Environment, Food and Rural Affairs is committed to implementing the remaining five Pitt recommendations by the end of this year. We are making the necessary legislative changes in the Water Bill.

Rightly, attention should now turn to how councils plan for development and how they build. Decisions on whether to grant planning permission are, of course, a matter for local planning authorities.

[Andrew Percy]

On the issue of building on floodplains, may I bring to the attention of the Secretary of State the proposals going through North Lincolnshire council to build up to 10,000 homes on a floodplain between Burringham and Gunness in my constituency and Scunthorpe, a project created by the previous Labour council? I am deeply concerned about it, as is the leader of North Lincolnshire council. It is still going through the local development framework process, but may I just put it on his radar and urge him to support those of us who are concerned, after what we have just seen, about development on floodplains?

[Mr Pickles]

I will come on to the question of floodplains in a few moments, but the matter is on my radar. My colleague the Planning Minister will of course look at it with a completely open mind when the time comes.

Rightly, attention is now turning to how councils plan to develop and where they plan to build. Councils should take advice, where appropriate, from the Environment Agency and weigh up the different material considerations, from biodiversity to the need for more homes. Having said that, 99% of proposed new residential units that the EA objected to on floodplain grounds were decided in line with EA advice, where the decisions are known. I would say this, however: there is no monopoly on knowledge. Local elected councillors should decide and be held to account for their decisions.

Nevertheless, the estimated number of dwellings built in areas of high flood risk in England is now at its lowest rate since modern records began. That figure will change from year to year. It may rise and it may fall, but it will never be zero. A zero figure would mean a complete ban on any form of development in many existing towns and cities that happen to be flood-risk areas. Approximately 10% of England is high flood risk, such as large parts of Hull, Portsmouth and central London—indeed, this Chamber is in a high flood risk area. National planning policy clearly states that inappropriate development in areas at risk of flooding should be avoided. Councils should direct development away from areas at highest risk. Where development is unavoidable, it must be demonstrated that it is safe and will not increase flood risk elsewhere.

Councils have a robust power to reject unacceptable planning applications. Councils’ local plans should also shape where development should and should not take place. They should address the needs of associated infrastructure to accompany new building. National planning policy is clear that any new building that is needed in flood-risk areas should be appropriately flood-resistant and resilient. Mitigation measures such as land raising, landscaping, raised thresholds and rearranging the internal use of buildings can also make a development appropriate in such areas.

For example, London has long been at risk of tidal flooding, as evident from the North sea floods of 1953, which inflicted immense damage to the east end of London. However, since 1983 the Thames barrier has mitigated that risk. We did not have to ban all development in London; we overcame the challenge through science. We do not face a binary choice of economic growth versus flooding, town versus country or bailing out flood victims versus saving children in other parts of the world from being killed by contaminated drinking water. These are false comparisons and false choices. I want to be clear: we can and must do both. All that is required is political will, determination and innovation.

--- Later in debate ---

[Andrew Percy (Brigg and Goole) (Con)]

It is a pleasure to follow my near neighbour, the hon. Member for Kingston upon Hull North (Diana Johnson). We both have experience of the 2007 floods—she as a Member of Parliament and myself as a councillor—and a good understanding of flooding in our area.

It has been an interesting debate, and I have liked a number of contributions. However, some Opposition Members have been more interested in trying to make political points about flood funding rather than in dealing with the recovery in which we are engaged. If they were honest, the reality is that after the devastating flood in 2000, which affected a large part of my constituency, the Government at the time increased flood funding but not to the level that they should have done, although we saw another boost after 2007. If we look at the history of flood funding, we see that we tend to get a boost after a major incident, and then it starts to taper off over a number of years. Sadly, that has been the case for decades. If anything comes out of this, it is perhaps the need for us to take a more long-term sustained approach to flood funding.

It is also a little bit incredible for Opposition Members to talk about flood defence funding as if they would not have made the same reductions had they won the last general election given their own commitments to cutting the deficit. We just need a bit of honesty from all parts of the House on this.

[Chris Ruane]

rose—

[Andrew Percy]

No, I will not give way, because there are others who wish to speak. The flood defence funding issue in my constituency was not related to cancelled schemes. In fact, the improvements that were expected in my area were not scheduled until 2023, and 2028 in many cases. Our flooding was down to a significant tidal surge, which flooded 350 homes in my constituency. As I have said on numerous occasions, that incident coincided with the death of President Nelson Mandela, so it was not top of the six o’clock news. None the less, the Secretary of State for Environment, Food and Rural Affairs visited, as did the chairman of the Environment Agency. Eleven communities in my constituency were flooded. Some of them, such as Burringham and Keadby, received warnings, but others in South Ferriby and Reedness did not and many people found themselves in quite dangerous situations with water in some cases as high as their waists, and in one case up to their chests. A number of residents were stuck in their properties because they had not been provided with proper warnings.

We had a public meeting in South Ferriby last Monday night; a couple of hundred people turned out. It was a really well attended and good spirited meeting. One thing residents asked me to take back is the issue of flood warnings. A lot of people are elderly and not on the internet. Large parts of my constituency have internet speeds of about one megabit a fortnight, so it is not possible to get the updates. They did not know a warning had been issued in the morning. We did not have a severe warning, and people were not evacuated. The first thing people knew of the problems was when the Humber started pouring through their front doors, which was a frightening experience for elderly people living in bungalows. No one was there to help them, because the flooding was not expected in that community. Had it not been for the parish council and younger, fitter neighbours, a number of residents could have found themselves in an even more distressing situation.

Following that flooding I visited all the communities, but it took me three days to get round them all, given the scale of the flooding across east Yorkshire and north Lincolnshire. At that time I was struck by the response of the emergency services, and of the Environment Agency, which has come in for a lot of stick, but whose dedicated personnel were out there on the front line—maybe not at the time that some residents would have liked them, but in the days afterwards and since then, informing and protecting residents.

I pay a particular tribute to North Lincs council. The flooding happened on the Thursday evening. From the Friday and the Saturday, the council worked with me and my hon. Friend the Member for Cleethorpes (Martin Vickers) on a package of support, which was put in place that Monday morning, of £300 to every home that was flooded and a £1,000 interest-free loan to every resident who had been flooded, repayable over five years, starting six months from the date of the flooding. That package was available and was delivered to people by the end of that week. So within a week they knew the council was there to support them.

I want to say a little about the history of flooding in our area. We know we are likely to flood. I live next to one of our tidal rivers. On 5 December it was about 6 feet higher than my front room; fortunately it did not overtop, but only by an inch or two. We know we live in an area that was drained by Cornelius Vermuyden in the 17th century. It is former marshland. We know the risks we face. That does not mean that we should be written off.

[Martin Vickers]

Will my hon. Friend give way?

[Andrew Percy]

I give way to my honourable neighbour, my hon. Friend the Member for Cleethorpes, who did so much to support his communities.

[Martin Vickers]

Does my hon. Friend agree that local knowledge is particularly important in forecasting, and that it would be very useful if we brought the farmers and councillors who serve on drainage boards into the equation a little sooner?

[Andrew Percy]

That is absolutely correct. It ties in with the point I am making, which is that in 2007 the river catchment plans for the Trent, the Ouse and the Aire were all issued, and those plans at that time suggested reducing defences. That was at the time of the last Labour Government. I, as a local councillor and a prospective parliamentary candidate, did not go around saying that the Labour Government wanted to flood our areas, but the catchment flood plans that we faced at that time would have reduced our defences substantially. We fought them very hard. Largely because of the information and skill of the drainage boards and local farmers, we were able to disprove the Environment Agency’s argument for its proposal and to win a change in the policy, so now our defences will be maintained and improved in line with rising sea levels.

That is all now subsumed by the River Humber flood strategy. This is where we really need some action. That strategy was adopted in 2008 for the Humber. It highlights large parts of my constituency as in need of improved defences, but at some time in the future—15 years hence. That is not good enough, bearing in mind what we have seen in the past few weeks. We need the funding for that, and we need to know what that strategy actually means. At a public meeting in South Ferriby, and in the previous public meeting we held at Reedness, residents were saying, “It is fine for our areas to have been identified in 2008 as needing improvement, but it is not good enough for us not to know when that will happen.” That is why I am pleased that last night the Conservative group on North Lincs council passed a budget that is bringing forward £5 million of funding, which we hope will be unlock that other funding.

What we want from Ministers now is leadership. Where money has been made available to unlock that match funding, as it has from North Lincs council—voted against by the Labour group, it must be said—we want Ministers to ensure that that match funding is unlocked now, not at a time convenient to the EA. Two and a half million pounds of that funding is scheduled for this financial year, specifically for defences on the Humber and the Trent, and the remainder in the forthcoming years. My plea to Ministers would be to ensure that where that match funding is being offered, the EA’s hand is snapped off and we can bring forward this investment as quickly as possible. I will end there, because I understand that there is pressure on time.

[Several hon. Members]

rose—

Flooding (North Lincolnshire)

Andrew Percy Excerpts

Thursday 23rd January 2014 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

I thank you, Madam Deputy Speaker, the Minister and my hon. Friend the Member for Cleethorpes (Martin Vickers) for giving me an opportunity to speak for a couple of minutes about the experiences in Brigg and Goole. Whatever the reasons for the flooding, I think we can all agree it was nothing to do with the passage of the same-sex marriage Bill in this place. Whatever the reasons, however, as my hon. Friend said, residents simply want action now. I agree with a great deal of what he said, and congratulate him on securing the debate. The Minister is a very competent Minister. We did not necessarily agree with everything in the Water Bill Committee, but I know he is incredibly competent on this matter and I reiterate to him our invitation to our constituencies to see the clear-up work going on.

My constituency was particularly badly affected when the tidal river Ouse overtopped the banks at Reedness and devastated many homes there. The Dutch river as we call it, but the River Don to others, overtopped at Old Goole. The Trent overtopped and flooded many properties in Burringham, Gunness, Amcotts and Keadby, and the tidal Humber estuary overtopped and devastated about a third of South Ferriby as well as houses in the communities of Winteringham and Burton-upon-Stather. We suffered particularly badly, therefore.

Since then the council has responded very well. I should pay tribute to Councillor Liz Redfern, the leader, who very quickly, having been approached by me, my hon. Friend and ward councillors, agreed to issue £300 to everybody regardless of whether they were insured, to help with the clear-up costs. Those cheques were out and delivered by the end of the following week. The council has also established a £1,000 interest-free loan for anybody who was flooded which they can pay back over a period of five years with no interest at all. The council has done everything it can, therefore, and the parish councils, too, have been incredible in my constituency. It was a privilege to see them in action both on that evening and the day after and the weekend after as I went around visiting flooded properties.

I concur with my hon. Friend about sirens. A lot of people did get warnings, but a lot of constituents either missed them or did not feel they came at the right time. In the community of Reedness, for example, people received flood warnings when the water was already up to their ankles or deeper. The Environment Agency is pursuing those issues.

There are two particular issues I want to raise with the Minister, but before doing so I should say that another issue I will be writing to him about is to do with the CEMEX plant at South Ferriby. I have not given him prior notice of that, but it was truly devastated when the Humber came over. Some £30 million-worth of damage was caused to that big local employer. Although it has said absolutely that it is committed to bringing that plant back into action, it will struggle, and it may require and seek some assistance. It has approached the council but the council simply does not have the resources, so I will be pursuing that separately.

The first of the major issues is where we go now with the Humber flood risk management strategy, a document I have been involved with since its inception some years ago when I was a local councillor. It identifies particular locations in my constituency, especially the bank at Reedness, which is significantly lower in part than in other communities, and there is a feeling that that dip in the bank of about 9 or 10 inches was the reason why it was flooded and other communities were not. There is the same situation at South Ferriby and the South Ferriby to Winteringham stretch. The Humber strategy is a good strategy because it talks about maintaining and improving defences over the next 15 to 20 years. The policies adopted for those two sections are welcome, but they were adopted in 2008 and we have not yet seen a clear timetable of when the funding is going to come forward.

[Sir Tony Cunningham (Workington) (Lab)]

I accept the importance of flood defences and in some respects flood resilience measures, which the hon. Gentleman is talking about, but does he agree that just as important is ongoing maintenance? We have to have that ongoing maintenance from the EA week in, week out.

[Andrew Percy]

In my constituency and that of my hon. Friend the Member for Cleethorpes—and particularly in mine, which is very susceptible to flooding—that maintenance has gone on. With the exception of a concrete culvert at Keadby, we saw no breaches of our defences. They did the job they were designed to do, and they are designed to a very high standard. They have been damaged since, which is important, but from a maintenance point of view the banks did the job they were designed to do. With rising sea levels, the issue is that they might not be sufficient and we want to see this investment brought forward.

My final point is on internal drainage board assets. I met representatives of the drainage board at Reedness two weeks ago. The board suffered significant damage to its assets when the embankment was breached there, and it is not clear yet how it will fund the recovery works. I would like a bit more clarity on that and have tabled a parliamentary question on the matter. I look forward to hearing from the Minister.

Waveney (Coastal Flooding)

Andrew Percy Excerpts

Wednesday 18th December 2013 Commons Chamber

[Peter Aldous]

I am grateful to my hon. Friend and neighbour for that intervention, with which I agree wholeheartedly.

A further problem with the Bellwin scheme is that the two-month limitation that applies to expenditure means that extensive capital works are excluded if they cannot be completed in that time scale, which in the current circumstances could be very difficult to achieve. The costs of employing additional temporary staff or contractors are also not covered.

In the light of those and other concerns, there is a worry that Bellwin on its own will not be able to achieve the Secretary of State’s objective of getting places back on their feet quickly. In the short term, there is a need for communities to look at a variety of measures that manage flood risk. They include the provision of flood boards and valves in air bricks and in WCs, and liaison with the insurance industry to ensure that, where such protection measures are in place, it provides cover on realistic terms. It is also necessary to plan for the future. I believe that owing to rises in sea levels such events will occur with increased frequency, and I am conscious that in Lowestoft there have now been two such events in the past six years.

[Andrew Percy (Brigg and Goole) (Con)]

I concur with a lot of what my hon. Friend has said, and I congratulate him on securing the debate. As the Minister knows from our debates on the Water Bill last week, hundreds of properties and many villages in my constituency were flooded. My hon. Friend has talked about the future. Does he agree that we urgently need a review and reassessment of all our flood strategy management plans, including the Humber flood risk management strategy plan, so that we can bring forward the works already identified in such plans as necessary to deal with rising sea levels? We need that to happen quickly and we need the funding in place to support whatever works are necessary.

[Peter Aldous]

I am grateful to my hon. Friend for that intervention, and I agree wholeheartedly that we need to address this issue as soon as practicable. One will lead on from the other.

We have had two such storm surges in the past six years, and arguably in both 2007 and 2013 we escaped by the skin of our teeth. In 2007, the wind dropped in the nick of time, while two weeks ago we were fortunate that the wind was blowing in a northerly direction and that there was no heavy rainfall, which would have exacerbated the surge up the rivers. It would be foolish to assume that we will be lucky a third time.

The challenges of rising sea levels and climate change mean that such events will take place with greater frequency. It is important to remember that sea levels along the Suffolk coast have been rising by 2.4 mm per annum since the 1950s. In Lowestoft, research carried out by Halcrow and Bam Nuttall concludes that a 1953-type flood, which was previously considered to be a one-in-1,000-year event, could well now take place every 20 years. There is thus a need for new and improved sea defences, and it is important that these be put in place as soon as practicable.

Preparatory work on a Lowestoft flood defence scheme is nearing completion. It should be submitted to the Government shortly, and I hope it will receive favourable consideration. It is important to the town’s future that work on the scheme starts as soon as practicable. There is the opportunity to attract considerable investment into the town, particularly in the oil and gas and offshore renewables sectors, and the inclusion of this part of Lowestoft in the draft assisted area map will help in this respect. However, businesses will think very carefully before making such commitments unless adequate flood defences are in place.

I have raised a number of issues, but I return to the most important, which is obtaining an assurance from the Minister that the Government are doing all they can to ensure that local communities affected by the storm surge get back on their feet as quickly as possible. In what is the season of good will, we owe it to those many people whose lives have been turned upside down this Christmas to provide an undertaking that they will not be forgotten.

On that note, Mr Deputy Speaker, happy Christmas to you, to the staff of the House and to all colleagues on both sides of the House. I look forward to the Minister’s reply.

Water Bill

Andrew Percy Excerpts

Monday 25th November 2013 Commons Chamber

[Mr Paterson]

The hon. Lady takes rather a churlish attitude, as her Government did absolutely nothing to replace the statement of principles, despite knowing perfectly well that it would run out in June 2013. We have been involved in extremely detailed negotiations but, as she knows, the subject is very complex. I entirely agree that it would have been ideal to have detailed clauses ready in time for the Bill; sadly, they are not ready. She is, however, rather critical of those who may be members of the Committee. If she is lucky, she might get on to the Committee, because it will be able to debate those clauses in exhaustive detail.

Our preferred approach, which is known as Flood Re, will limit the amount that high-risk households have to pay on the flood insurance element of their premiums and excesses. The effective limit on the premium would vary according to council tax band, rising for more expensive properties, which means that benefits will be targeted towards lower-income households. Insurers have agreed to continue to meet their commitments under the 2008 statement of principles until the Bill has passed through Parliament and Flood Re has been set up.

Although Flood Re remains our preferred approach, we are seeking reserve powers to provide affordable cover if it should prove unworkable or prices in a free market prove unacceptable. Having a fall-back means that customers can have confidence that the issue is being addressed. All Government policies go through a rigorous economic impact assessment, but that cannot always represent the full range of benefits, such as the value of reducing the uncertainty for households over whether they will be able to afford flood insurance. Our preferred option, Flood Re, may require me to provide a ministerial direction. If that is the case, I will be happy to do so.

I am pleased that there is cross-party support for our proposed approach. There will be a fair deal for householders and taxpayers, and better choice for flood insurance customers. I am particularly grateful to the Association of British Insurers and the rest of the insurance industry for their co-operation and work in developing a sensible solution for homes that are at flood risk.

[Andrew Percy (Brigg and Goole) (Con)]

My constituency is at massive risk of flooding because it is below sea level in many places. We require pumping 24 hours a day to keep us dry. I welcome what the Secretary of State has said about Flood Re because getting flood insurance has been a problem for my constituents. However, there is concern among people who live in houses that were built after 2009 and there is concern about the development of our town, given that we are so susceptible to flood risk. Will he set out the Government’s thinking on properties that were built after 2009? Will any solution be offered for them in the future?

[Mr Paterson]

It is not our proposal to include those whose houses were built after 2009 if they were built on areas that are subject to flood risk.

In the Bill, the Government are seeking to put in place the long-term conditions for sustainable economic growth and the improved resilience of our water supplies and environment. We are also seeking to increase choice for the consumer, exert a sustained downward pressure on water bills and ensure that there is affordable flood insurance. The approach under the Bill is one of partnership —partnership between the Government, business, regulators, environmental organisations and the public. I look forward to working with colleagues and each and every one of those groups to make that a reality. I commend the Bill to the House.

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[Miss McIntosh]

I am grateful for the intervention, but I think the hon. Lady misses the point that so many other people do. Water running off the road in this way is a new development. While the water is on the surface of the road, it is the responsibility of the highways authorities, whether it be the Highways Agency, the county council or the unitary council. As soon as that water runs off the road and goes into a combined sewer, it most frequently becomes the responsibility of the water company.

I believe that the Government should look at the possibility of creating a statutory responsibility on highways authorities—and should be supported by the whole House in this—for surface water while it is on the road. [Interruption.] The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for North Cornwall (Dan Rogerson) mutters under his breath, “What will the cost be?” I do not care what it will be: if we are to have sustainable drainage systems, we have to look at creating a system that will retain the surface water on the road and stop it going into the combined drains and sewers. That has been happening since 2007, for nearly seven years. Surface water has been mixing with sewage and coming into homes, such as the home of Mr and Mrs Hinds, causing health-related and very antisocial problems. Successive Governments have failed to deal with the issue, but I believe that the Bill presents us with a unique opportunity to sort it out.

According to the Environment Agency, 2.4 million properties in England are at risk of flooding from rivers and the sea, 1 million of those properties are at risk of surface water flooding, and a further 2.8 million properties are at risk of surface water alone. The agency estimated that the cost of the 2012 floods was £600 million. I agree with my right hon. Friend the Secretary of State that we need not just to grow the economy, but to limit the damage caused to it by floods.

It is regrettable that the sustainable drainage system that was envisaged in the Flood and Water Management Act 2010 has still not been implemented. I understand that discussions are taking place and that it is all very difficult, but we must get our heads around this. It is not impossible, although the difficult aspects may take a little longer to address. I urge my hon. Friend the Minister to rise to the challenge, and to introduce SUDS before April next year. It is unacceptable for my constituency and others elsewhere in the country to face a possible flood threat this very week because we have not put secondary legislation on to the statute book.

I am at my wits’ end because we have still not implemented the Pitt recommendation that the automatic right to connect should be removed. Sustainable drains are a significant aspect of that. The Environment Agency is already a statutory consultee, but we have not accepted that water companies should have the same status. I believe that they should be able to say, frankly and honestly, that in the case of major developments, there should be no ability to connect without a significant new investment.

[Andrew Percy]

Proposals for new housing in Goole pose the double threat of river and surface water flooding, and are therefore unacceptable to local communities. Goole has been flooded for about five of the last eight years. We want sustainable drainage systems, so that if the new housing development proceeds, it will have no further impact on our already creaking drainage system.

[Miss McIntosh]

I hope that we will all continue to press the Government to proceed with SUDS.

As for abstraction, I can only support what other Members have already said. Abstraction has an important part to play in resilience in times of drought and, potentially, in times of floods, when there are competing demands for the water supply. I urge the Government to show a greater sense of urgency. My right hon. Friend the Secretary of State said that they would be consulting shortly, and it would be helpful to know when that consultation might take place.

The water White Paper, which we also scrutinised, placed great emphasis on the importance of resilience and the need for innovation to improve it, but I think that the Bill has toned down that emphasis slightly. I hope that the Government will find renewed enthusiasm for resilience. There will always be competing claims from the farming industry and angling, but we must not forget jam-makers such as those whom I visited in the constituency of my hon. Friend the Member for Witham (Priti Patel), as well as brewers and other industrial users.

The role of the Environment Agency has been extremely positive, and fewer properties have been built on functional floodplains since it became a statutory consultee. However, I believe that it could do much more to share information, particularly mapping information. It is extremely frustrating for constituents not to be able to access a single map. Sir Michael Pitt—from east Yorkshire—was very clear in that regard, and I think that we owe him a great debt of gratitude for the work that he has done. I believe that there should be a one-stop shop for our constituents, and that they should be able to know exactly where to go.

Water Industry

Andrew Percy Excerpts

Tuesday 5th November 2013 Commons Chamber

[Charlie Elphicke]

rose—

[Andrew Percy (Brigg and Goole) (Con)]

Then they went back up again.

[Charlie Elphicke]

Then they went back up again, as my hon. Friend remarks. Under the previous Government the water industry was allowed to become 100% mortgaged to make the tax avoidance work. There have been excessive pay rises in the boardroom at a time when hard-working families have not seen substantial pay rises. That has been very hard to justify and people look askance at that.

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[Andrew Percy]

I congratulate my hon. Friend on securing this debate. We have heard a lot about people having problems with a shortage of water. In my constituency, which is very low-lying and where we rely on significant pumping capacity to keep us dry, the problem has been the other way round: we have had too much water. While our water companies have been making big profits, we have not been getting the investment in keeping us dry, let alone in ensuring we have enough drinking water.

[Charlie Elphicke]

That is true. In some parts of the country we have too much water and in some parts too little. I am sure that at some point someone will raise the need to move water from one place where there is too much of it to another place where there may be too little of it.

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[Frank Dobson]

That is certainly true. Until 1995, Ministers from all parties accepted the statement by the water industry that the bulk of the water that leaked out of the system leaked out of customers’ pipes. It took a lot of effort from me and somebody who was working for me at the time to finally reveal that that was nothing short of a lie. It was not that the Ministers were lying; they were being provided with lies by the water industry. I have had the figure changed into fashionable litres now.

[Andrew Percy]

What was it in gallons?

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[Gavin Shuker]

My hon. Friend is absolutely right. If we look at the price review periods since privatisation, we will see that water bills came down in real terms during only one of them and that was under the previous Labour Government. On the price review process, my hunch is that this Government believe that the water companies will read the signals coming from hard-pressed consumers and come in at RPI plus 0 or RPI minus 1 in the next price review period and claim it as their victory, but let us be clear: getting a sustained reduction in water costs requires action from this Government.

[Andrew Percy]

We have moved on a little, but the hon. Gentleman has graciously given way. He is doing a good job of reading the Labour brief and trying to pretend that all of a sudden it is interested in people’s bills. On the Pitt review, is he suggesting that it was somehow planned by the Labour Government, or did it come about because I and my constituents were all under about 2 feet of water for a long time?

[Gavin Shuker]

Intense flooding has major implications and climate change means that it will happen more regularly, but the hon. Gentleman seems to be saying that the previous Labour Government were in some way wrong to review the situation and flood defences. He was not the MP for his area at the time, but he knows that the flooding was devastating. If he wants proper action on ensuring that his constituents will be protected against the next bout of flooding, he should support our efforts to amend the Water Bill to make sure that there is a proper, workable Flood Re solution for flooding insurance. He mentions the Labour brief. I humbly point out to him that for the past few years I have been writing the brief.

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[Alec Shelbrooke (Elmet and Rothwell) (Con)]

I would like to go further in the debate and mention some of the powers that I think the water industry needs. I will focus my remarks around the Water Bill, and the fact that as with any industry, resources are scarce. It by no means passes the public by that their water bills go up, yet now and again we have hosepipe bans and so on because—let us be honest—of the mismanagement of our water resources. It does not help, however, when developers take no notice whatsoever of reports from water companies about the impact that their developments may have on the surrounding area. My constituency of Elmet and Rothwell is badly affected by such situations.

I recently had discussions with some people from Yorkshire Water about a small village in my constituency called Walton. It has a couple of houses that are badly affected by heavy rainfall and flooding. Yorkshire Water effectively said that a scheme to save two houses would cost £1.8 million—not in the region of something it could afford do—but that the problem came about in the first place because the original barn should never have been converted into a house. Messages to that effect were put forth at the time, but the conversion went ahead. The house was sold on in good faith and no matter what the situation in trying to alleviate the problem, Yorkshire Water is fairly certain that the water will always end up in that place. No one particularly noticed when it was full of cows, but when it is someone’s house, they tend to notice. That is a prime example.

My constituency is under unprecedented pressure for housing development. Figures from Leeds city council state that 12,500 houses could be built across my constituency. One place currently under great scrutiny is an area of Kippax called Sandgate drive. Some 260 houses are to be built at the back of some houses—by that I actually mean built on a hill behind those houses. Yorkshire Water has said that the water that will run off would be unacceptable and that it would put huge pressure on the water courses to deal with that run-off of water—something the developers appear to be ignoring.

The Environment Agency deals with water that floods off land and is taken away in rivers, but it is down to the water companies to deal with the surface run-off and to get it to the rivers. The current development plans do not help water companies in the slightest, which means two things: first, that resources that should be used to repair the network so we can use our resources more efficiently get soaked up in flood alleviation solutions; and, secondly, that people’s bills rise constantly, with no further improvement.

In an area of my constituency in the town of Wetherby, there is a planning application for 400 houses at the top of a hill. There have been problems with the water pressure in Wetherby. Yorkshire Water had to take measures on the Thorpe Arch trading estate to ensure it had proper pumping facilities to get the water to the top. That has been resolved, but only last week a resident told me that, last summer, on a very warm day, the water pressure dropped off when everybody in the area used the water. The developers have taken no notice of that, which means that Yorkshire Water must spend more of its resources dealing with the further drop in pressure, because it does not have the detonator to say, “That development cannot go ahead unless the developer is willing to spend huge amounts on the water infrastructure.”

A huge development—a dual carriageway ring road—is taking place to the east of Leeds. Back in the storms of 2007, my constituency, like that of my hon. Friend for—

[Andrew Percy]

Brigg and Goole.

[Alec Shelbrooke]

I cannot believe I forgot the name of my hon. Friend’s constituency, but there we go. Like his constituency, my constituency had a huge amount of water flooding through it during those storms. Fundamentally, the river valley could not cope with the amount of water. Nobody can do anything about such one-off events, but we can avoid exacerbating the situation. There is a live planning application for a development on the floodplain in the village that was 6 feet under water that day, which is disgusting. Yorkshire Water should have the ability to turn around and say, “No. That area will not be developed.” The developers can put in any flood protection scheme they like on their new development, but they do not give a tinker’s cuss what happens 100 metres down the road, where the houses will be flooded.

Those problems can be alleviated if the water industry has the ability to work hand in hand with the developers. I mentioned the ring road, which should have a flood alleviation drain built under it. The proposal will have a huge impact on my constituents, who have had to deal with flooding and must now deal with extra housing. We are talking about investment in the water industry and how it best uses the money it gets from water bills. Given the pressures of development, we need to ensure that the industry has every ability to work hand in hand with developers.

One village in my constituency, Methley, suffers from huge toxic, rancid smells from a pumping station for sewage. Yorkshire Water believes that that happens because there is a kink in the sewage pipe somewhere in the two miles of road by the village. It does not have the resources to dig up the road and find the kink—it says that the number of people affected does not justify the amount it would need to spend. That is an example of the pressures the water companies are under.

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[Andrew Percy (Brigg and Goole) (Con)]

The debate has been interesting, with more contributions from Government than Opposition Members—but I enjoyed their speeches all the same. The hon. Member for Luton South (Gavin Shuker) told us that he wrote the briefing for the Opposition. It seemed to consist of, “Here are lots of good things that the Government should have done, which we did not bother to do in our 13 years”, so he should perhaps revisit history a little before he writes his next briefing on this issue.

There are three water companies—Yorkshire Water, Anglian Water and Severn Trent—in my constituency, covering 250 square miles in two different counties. I have had experience of trying to deal with all three, and the experience can be different depending on which water company one has to deal with. I shall speak about my constituents’ experience with some of those companies and make some suggestions to make the consumer experience better, not just for my residents but for all constituents across the country.

We have been lucky and unlucky. We have seen considerable investment in the constituency in recent years, but that came after year after year after year of regular flooding. Bizarrely, over the last year or two, parts of the constituency have faced hosepipe bans because of a lack of water, while other parts have at different times been under several inches, if not feet, of water. Much of it has been surface water, and hence within the remit of the water and sewerage companies. My constituency, apart from a few bumpy bits, is generally very low lying, below the high-tide mark, and consequently most of the communities I represent rely on a pumping system to keep them dry. Where I live, there is a series of very high banks as well as pumping.

We have had some good experiences with Severn Trent, and have welcomed its investment in Westwoodside and Crowle. I have been a key member of the liaison team dealing with that investment. The company has also worked with customers: we have arrived at some solutions, and it has been generally responsive. That has not always been the case, but we have done reasonably well in recent years, and I am grateful for the company’s investment.

In Goole, which is covered by Yorkshire Water, we have had a very different experience historically, although it has improved a great deal recently. Goole has been flooded in at least four or five consecutive years out of the last seven or eight, including 2010 and 2011, when major assets failed in the town. At the time I was at pains to remind the House, and also Yorkshire Water, that sometimes it is the people who pay the bills who are the last to find out when something has gone disastrously wrong.

In 2011, I was in my wellies going from door to door and from street to street, visiting as many places in my constituency as I could. We were under rising water, because our pumping system had completely failed and if our town is not pumped, the water level rises very quickly. Over a period of about 12 to 18 hours, we all saw water levels rising. It was obvious that something had gone very wrong with our pumping system, particularly the big pumping station at Carr lane.

I became very angry when speaking to Yorkshire Water on the telephone, because it was impossible to obtain any answers. The company failed to communicate with residents at the most important time for them—when they were being flooded. Many of those people have medical conditions that require treatment, but power was going off, and there was still no communication. When the local authority, East Riding of Yorkshire council, tried to descend on the site, it was initially warned that it would not be allowed to enter, so it had to invoke its powers. All that was completely unacceptable.

Since then the position has changed significantly, thanks to the outcry from me and from local residents, and I am pleased to say that we have had a completely new experience with Yorkshire Water. The company has invested £3.6 million over the last 18 months to improve our pumping capacity by 20%, and 18 December will see the publication of a flood catchment study which it has funded and has cost a quarter of a million pounds.

That is all great news, but I must nevertheless ask why my residents and my constituency were put in such a position in the first place, given that it had been clear for a number of years that the town’s pumping capacity and the major assets that were meant to protect us were not fit for purpose. Yorkshire Water has tried very hard since then, and I feel very positive about what it has done, but we should not have been put in that position, particularly in view of Yorkshire Water’s dividends. There has been an improvement since 2010—the company’s dividend is now significantly lower in relation to its post-tax profits—but the statistics for 2005, 2006 and 2008-9 were pretty appalling, at the very time when we should have benefited from investment.

Meanwhile, bills were rising in my constituency. The Yorkshire Water household bill, which I pay every year along with other residents, was £264 in 2005. By 2009-10 and 2010-11, when we were under many feet of water owing to that lack of investment and an inability to maintain assets properly, it had risen to £330. Profit for utility companies is something that is established, and I have nothing against it as long as it is accompanied by investment, but the compelling statistics and data presented by my hon. Friend the Member for Dover (Charlie Elphicke) at the beginning of the debate made it clear that all is not well. We need either beefed-up powers for Ofwat, or the creation of further bodies to deal with water companies that are making huge profits while not investing in communities such as mine which are particularly prone to flooding.

Although Yorkshire Water’s profit-to-dividend ratio has improved since 2010, I am afraid that that of Anglian Water is moving in a different direction. I concur with some of the demands Members have made of the Government and the water industry. I hope the Minister will consider introducing new powers to allow companies making excess profits to be ordered to cut bills and to beef up the powers allowing Ofwat to require investment in our infrastructure when these profits are too high. The Government must stand up for consumers.

I was astonished that the hon. Member for Luton South (Gavin Shuker) claimed that because his leader had been making noises about consumer bills, all of a sudden people are concerned about water bills. If the hon. Gentleman had attended past debates or followed what many of us have been doing in our constituencies, he would know we have for many years been complaining about the fact that our constituents are paying more but we are not seeing the return in investment in our infrastructure. I thought that adding that political element to a debate that had generally been consensual was beneath him. In response, I have tried to make a wholly non-partisan speech.

There have been improvements in our area. My hon. Friend the Member for Beverley and Holderness (Mr Stuart), who is present and takes a great interest in these matters, will know of the transfer tunnel created in Hull which has helped to protect the Hull catchment a lot better. In Yorkshire, we have seen investments in the pipe network, which was in an abysmal state before privatisation, with massive leakage. We have also seen investment in my constituency.

Some good stuff has been done under privatisation by Yorkshire Water, Severn Trent and Anglian, but we now need somebody to stand up for the consumer where these companies are not acting as responsibly as they should. I hope the Government will respond to this debate by making sure the powers are in place to ensure these companies act responsibly towards their bill payers, who, after all, provide them with everything they have.

--- Later in debate ---

[Julian Smith]

The right hon. Gentleman’s intervention is very accurate.

Those highly paid—highly compensated—board members showed no contrition about how tough it is at the moment for consumers. They basically said that they would not budge on their stretching of the tax rules to ensure that they paid no tax. We talked about the clause in their commitment to customers where they said that they would be responsible and that they were environmentally and socially engaged, but they just would not listen.

[Andrew Percy]

These figures are incredible. Does my hon. Friend share my concern that these people are being paid these million-pound salaries but they still have not responded to my request, on behalf of my constituents, to pay compensation to people who were flooded because their assets failed when the company failed to manage them?

[Julian Smith]

I absolutely do, because the situation is a kick in the teeth from Yorkshire Water to hard-working people in Brigg and Goole.

We asked the management team about their debt standing at 84.5% of regulated capital value at the end of March in contrast to the figure of 56% when the company was acquired. We asked them how they explained their £63 million of shareholder dividends in 2012 quadrupling to £256 million in 2013. We asked them how they could seriously defend, in these tough financial times, a dividend payment of 27.3% of 2013 revenue. We asked them to enlighten us on the risks of having more than £4 billion in debt and what would happen if things went wrong. We asked them how they explained the quagmire of vested and conflicting interests between the different board structures— between investors and the company and the various Yorkshire Water subsidiaries. And we asked them how they could explain the claim in their annual report that these complex financial arrangements led to lower bills for customers, given that bills actually went up by about 7%. The answers were not weak or woolly—they were non-existent.

I welcome the measures that the Government have taken on tax reform and the general anti-avoidance rule. That is a shift from prescriptive rules to a general rule, which is the right thing to do. However, should Her Majesty’s Revenue and Customs really be having to wage an uphill struggle against a monopoly business that is providing customers with one of the most fundamental services and utilities in the world?

The Government have done a lot on tax, but I urge them to go further. I urge them to use things such as the Water Bill to implant exciting and novel policies from the Treasury and look at whether we can taper the level of deductions received for interest charges in corporation tax as shareholders take on more debt. Can we impose a bank levy on debt? Could we look at how to impose a levy payable by shareholders to customers so that the cost is not simply passed on to customers and instead they gain a share themselves?

Somehow, we must stop this limitless offsetting of interest against tax. We should push on with greater competition and consider ensuring that a percentage of profits goes back to customers. We should knock Ofwat about until it works vigorously in the interests of the consumer first, second and third. We should consider everything in the industry and say clearly to companies such as Yorkshire Water, “No. No more. This has to change.” We should shake this industry up from top to bottom.