Baroness Humphreys Portrait Baroness Humphreys (LD)
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My Lords, I declare an interest as a trustee of the Crafnant Trust, which has responsibility for Lake Crafnant—a small reservoir above the Conwy valley in north Wales which I do not own.

I welcome the opportunity to contribute to this debate and to note that, although the Bill applies to both England and Wales, it gives Welsh Ministers powers in relation to the whole area served by water and sewerage undertakers,

“wholly or mainly in Wales”.

I would not presume or dare to speak on behalf of the Welsh Government, but I believe that they would not wish to follow the direction outlined by the Westminster Government, whom they consider to be,

“overly dependent on competition within the water supply system”.

That is their right under powers devolved to them, but I also welcome the fact that, if enacted as currently drafted, the Bill will enable Ministers in future Welsh Governments to introduce competition if they so wish.

I was pleased to hear the noble Lord speak about the work of Dwr Cymru, and perhaps here I should also declare an interest as a customer. There is a belief that in Glas Cymru we have a framework and a supply system that work for the people of Wales. Glas Cymru is a not-for-profit organisation with no shareholders. It has brought investment into the system and reduced bills, and it is perhaps a model that should be emulated.

I welcome the attempts in the Bill to help those in areas at high risk of flooding to secure affordable insurance. However, as I understand it and as other noble Lords have highlighted, there are some concerns about the provisions that apply only to those in domestic properties. I am sure we can all think of examples of flooding in our areas where homes may have been affected but so, too, have the business premises next door. Perhaps my noble friend could place on the record, for interested parties, the reasons why small businesses will not be treated in the same way. As I said, I welcome these changes as far as they go, but changing the insurance regime in isolation is surely dealing with only one side of the coin. I hope that your Lordships will allow me to deal with the other side of the coin as I seek to bring the debate back to the matter of insurance.

As we begin to realise the enormity of the task that we have to deal with in order to combat the effects of climate change, many of us believe that there has to be a commitment to further flood defence work to prevent a repetition of the misery that we have seen in recent weeks. The Conwy valley, where I live, is certainly no stranger to the misery caused by flooding. I respectfully suggest that the magnitude of the flooding that we experience would certainly not be solved by community or group activity. One characteristic of the Conwy river is that it rises very quickly and can subside equally quickly, particularly after a high tide, but the flood waters have in the past left up to 100 flooded homes in their wake.

Many Members have spoken about sustainability, and they may be interested to hear of some work that has been carried out in the area of the source of the river Conwy. Some £300,000 has been allocated to restoration work on the threatened Migneint upland peatbog on the Conwy-Gwynedd border. The scheme has been funded by the National Trust and Natural Resources Wales and supported by many volunteers. This project, which is aimed primarily at saving a threatened Welsh ecosystem which can store more greenhouse gases than the Amazon rainforest, is recording impressive results according to scientists. Miles of ditches dug on a large area of peatland over the past two centuries have been filled with the aim of storing carbon and, at the same time, reducing flooding in the valley below. Already, some evidence is pointing to a slowing down of the rate at which the river rises, as the run-off from the slopes of the Migneint and Berwyn mountains is retained for longer in the peatlands.

Because of the severity of the floods that we suffered in the Conwy valley in 2004 and 2005, we saw massive schemes put in place by the Welsh Government, Environment Agency Wales and Conwy County Borough Council. Here, I pay tribute to the effective partnership working that we have seen between these organisations, and I add my recognition of the contribution made by European rural development funding to the schemes.

In an effort to protect our homes and businesses, a massive culvert was constructed under the streets of our town. As they rise, flood waters are now diverted into the culvert, stored there and gradually released as the waters subside. Demountable barriers, purchased from Holland—where the people know something about controlling water—are now available and can be installed to block off streets if flood waters threaten properties. Thankfully, these have not been required so far.

Embankments, or levees, which had been constructed along the river bank over the years to claim the fertile flood plain soil for agriculture, have been levelled and the flood plains are once again allowed to do the job nature intended. Farmers have been consulted and compensated and their co-operation in moving livestock at times of high risk has been achieved. New bunds, or small embankments, have been built and artificial lakes created to store flood water in order to protect the next village.

Those of us who live in close proximity to water have a healthy regard for its power, force and unpredictability and would never be foolish enough to say that such schemes are guaranteed to make flooding a thing of the past. However, the Environment Agency's data show that the volume of water which would have caused flooding to properties in the past did not do so in our last flood event. An unseen and unheralded saving to householders and insurance companies has therefore emanated from the flood alleviation scheme.

We all understand that each river and each incidence of flooding has its own characteristic and a solution achieved in one location will not necessarily apply to another. However, our experience in the Conwy valley shows that innovative thinking and creative engineering can make a difference.

This is neither the time nor the place to make a plea for the encouragement of more schemes to restore peatlands or of more engineering projects to protect vulnerable areas, but I hope that my noble friend can confirm that these matters are at least under discussion, that consideration is and will be given to methods of their funding and that the potential consequential savings to householders, local authorities and insurance companies will also be taken into account.