Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2020

Baroness Bakewell of Hardington Mandeville Excerpts

Monday 8th June 2020 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

I am here. Can noble Lords hear me?

[The Deputy Speaker]

Please continue.

[Baroness Bakewell of Hardington Mandeville [V]]

Thank you. My Lords, I too am grateful to the Minister for his extensive introduction to this statutory instrument. It is a great pity that we have not been able to hear from the noble Baronesses, Lady McIntosh and Lady Altmann.

I feel certain that in 2013, when this instrument was first introduced and approved, it was envisaged that all relevant infrastructure projects would have been completed by the time we reached the sunset clause date. However, as we all know, an awful lot has gone on in the intervening years and infrastructure projects are not the fastest to be delivered.

Like my noble friend Lady Scott of Needham Market and the noble Earl, Lord Erroll, I would like to know why the sunset clause was introduced in the first place. As the Minister said, the SI introduced in 2013 was due to expire after seven years, on 27 June this year, with a five-year review period. It was to operate across the English/Welsh border, with customers in Wales being provided for by an English undertaker. I accept entirely that the devolved Administrations are able to deal with their own water infrastructure projects, but that was not always the case. There are large reservoirs in Wales—Lake Vyrnwy for one—which provide water to English authorities, and I know that Birmingham is grateful to Wales for providing its water.

In 2013, large and complex water projects were overseen by Ofwat, and that will be the case be in the future. I note that in future there will be no sunset clause, and I ask the Minister whether that is wise. As others have said, during the period since 2013, only one large and complex high-risk water or sewerage infrastructure project has been delivered—the Thames Tideway Tunnel project, referred to by the noble Lord, Lord Adonis—and this has not been without its problems.

As the Minister stated, during the five-year review in 2018, eight stakeholders were consulted and five responded: Ofwat, Thames Water, Bazalgette Tunnel Limited, BTL investors and the Consumer Council for Water. As a result of their positive responses, Defra decided to extend the 2013 regulations. The five-year review found that the legislation was effective and should continue. The protection of the capital investment of the undertakers has been seen to be effective and has reduced risk and costs, as mentioned by the noble Lord, Lord Moynihan.

The March 2020 consultation again included Ofwat, Thomas Water, BTL and the Consumer Council for Water, and, in addition, Water UK, the Environment Agency and the Drinking Water Inspectorate, plus sewerage and water companies informed via Water UK. This time, four responded: Ofwat, the Environment Agency, Thames Water and Affinity Water.

Future decisions will be made on a case-by-case basis. I am grateful to the Minister for listing the locations of the four major schemes likely to be considered in the coming years under this SI. That is extremely helpful, but it would also be helpful to know the timeframe for each scheme. Is he able to give us that information?

Water conservation is extremely important and reducing leakages is key to it. Like the noble Earl, Lord Caithness, I am not sure that a 50% target for leakages is sufficiently ambitious. Likewise, I am unclear whether water meters help to save water. I am not convinced that the one I have does that for me. I agree with the noble Lord, Lord Blencathra, that in future schemes rainwater run-off should be separated from sewerage and that better use should be made of this valuable resource. Avoiding some of the unpleasant aspects of the horrendous flooding that many areas have experienced is absolutely key.

Given that the last five-year review took place in 2018, when will the next review be? Will it be in 2023 or will it be five years from today’s date? Given that the SI consists of two lines, I congratulate the Minister and all speakers on their comments in this debate—I have been impressed by the level of detail. I am happy to support the removal of the sunset clause and to support this SI. I look forward to the Minister’s comments.