Flood and Water Management

Barry Gardiner Excerpts

Thursday 8th September 2011 Westminster Hall

[Miss McIntosh]

I am grateful to my hon. Friend for making that point and for his invitation, which I was able to accept, to visit some of the areas that had been affected in Beverley.

Partnership funding for flood defences, which was introduced only this year, will of course be limited to the amounts that can be raised. The level of funding is the key to the success of our report and the message that we gave, as well as the success of the 2010 Act itself. I have a direct question for the Minister on the business of funding, particularly the levy-raising powers. I and many other hon. Members represent deeply rural constituencies. A concern has been expressed that, where there is not an established local levy, there may be constraints on the amount that can be raised. The Minister must realise that there is a limit to how much any individual local authority can afford because, as we note in the report, budgets have been reduced as a result of the comprehensive spending review.

We welcome the fact that regulations on the transfer of private sewers and lateral drains have proceeded, but the Minister must respond to the concerns expressed in our report, which are reflected across the country, about how we can recover the costs, which are either non-funded or underfunded. It will be helpful if the Minister responds to the water companies’ direct concern about that.

Colleagues would be disappointed if I did not mention sustainable drainage systems. We need to know the commencement date for the relevant provisions of the Flood and Water Management Act 2010. Are we really looking at a delay until 2012, and if so, do we as parliamentarians accept that? I put it to the Minister that we do not. I do not think it would be appropriate to have a phased introduction of sustainable drainage systems. The country is crying out for sustainable drainage systems to be introduced with a specific target date—I hope, by the end of this year. When will the regulations be laid and what consultation period is required? The time needed for preparation makes those provisions coming into effect this year a very tight timetable, and there is concern that they will be postponed until next year.

I want to place on the record my views on misconnections and the ending of the automatic right to connect. Sir Michael Pitt was extremely clear and categorical on that. I am not sure that we have reached an end to the automatic right to connect. I would like to make water companies statutory consultees on the same basis as the Environment Agency is. Many water companies have loose arrangements with the planning authorities, but it is important that we enshrine that in law. Water companies should be made statutory consultees on any future planning applications to limit potential misconnections as far as possible. I touched on the maintenance of watercourses in response to the hon. Member for Workington (Tony Cunningham), but I repeat that we need as many engineers as possible and that we should use the internal drainage boards where they exist.

[Barry Gardiner (Brent North) (Lab)]

The hon. Lady is making a compelling case on many fronts. Planning and misconnections are a considerable problem around the country, and a number of misconnections have been made in my area, but would creating an obligation for water companies to be statutory consultees in relation to planning applications make a difference to the builders putting in the equipment? The rules are very clear: they should connect to the appropriate foul water or surface water sewer. The key surely is to have better monitoring afterwards through building regulations and to ensure that the plans and specifications have been followed.

[Miss McIntosh]

I think we need both approaches. The system is failing because of the lack of consultation with water companies. Because they are not statutory consultees, they are being asked to link up to new developments where they do not think it is appropriate. One example is a proposal to build 300 houses in Filey on an area that is prone to flooding; the water company has said that there will be great difficulty in connecting, but I do not see where the planning inspector can overrule the local authority. The Committee’s key message was that more than 5 million properties in England are at risk of flooding—that is a Government and insurance industry figure—and, at the same time, the UK faces increasing economic and environmental challenges to securing clean, reliable and affordable water supplies.

The natural environment White Paper, “The Natural Choice: Securing the Value of Nature,” has been well received and, as I say, the Committee is doing a substantial piece of work on it, but we are severely disappointed that the water White Paper has been delayed. Despite its importance, it has not been published within two months of the natural environment White Paper. I had the opportunity to express our concerns to the Prime Minister and to say that the Committee does not want any slippage in the introduction of the water Bill, which will be as important to the water industry as the Water Act 1989. I know it is not within the Minister’s gift, but I hope that the Government business managers listening will make time available early next year for that substantial piece of legislation. I also hope that the Minister will be able to assure hon. Members today that we will receive the White Paper—no doubt, with great interest—well before the turn of the year. We want an holistic approach to flood and water management, and the natural environment White Paper and the water White Paper both have a substantial contribution to make.

The extended parliamentary Session—the first to run for 18 months—must not be used as an excuse to delay the introduction of legislation if the regulatory changes are to be made without disrupting the water price-setting process. The Minister has an opportunity to set out this afternoon the Government’s timetable for finalising the provisions of the 2010 Act that have not yet been commenced.

It is an understatement to say that the White Paper is eagerly anticipated, and we look forward to receiving it without further delay. Many strands of work are involved: we expect it to look at the Cave review of competition, the Walker review of household charging, the Gray review of Ofwat and the implementation of EU directives such as the water framework directive. Time will not permit me to go into many of the concerns that have been raised about the directive, but suffice it to say that many of the water companies and, indeed, many farmers and landowners are extremely concerned about how it will take effect.

There is good news. Since our report was published, we have had the Department for Environment, Food and Rural Affairs consultation on water affordability, which followed up from the Budget statement on 23 March. That demonstrated that the Government are committed to supporting households with water affordability pressures and households in areas with particularly high water bills, such as the south-west. I am sure my hon. Friends from that area will have plenty to say on that.

We also welcome the reforms to the WaterSure scheme, the approach to social tariffs and the options for additional Government spending to provide further support. Water companies would find it incredibly helpful if the Government—obviously, not DEFRA but another Department—could, on a confidential basis, give the details of people on benefits to the water companies, so that they can earmark and target those most at risk and those who would most benefit from a social tariff. The consultation closed on 17 June, and we now expect the Government to introduce their proposals.

The natural environment White Paper will make a clear contribution to valuing water more effectively. We heard from a number of witnesses in June and we will look further at the matter in the autumn. The national ecosystem assessment that was published in June shows that there is a great body of work to build on.

I know that the Minister would be disappointed if I did not express my disappointment at the failure of the Pickering pilot scheme for flood defences to go ahead. The Woodland Trust and others are enthusiastic about more natural means of flood defence, such as the planting of trees to slow the water down. I hope that the Minister will not feel constrained and will tell us today where we are on reservoir provision. I make a plea on behalf of many constituents, and I am sure many in the House as well: time after time, the Environment Agency seems to get carried away with over-engineered, over-expensive and over-fancy flood defence projects that fall flat on their face at the first hurdle. That is why we do not have the flood defences we need in Thirsk or in Pickering. The Pickering pilot project was innovative and looked at more natural means of flood defence, but it will not now go ahead. The money, particularly from the local authority, is ring-fenced only until next year. I am sure that the Minister would think that it was tragic if we were to lose that project for ever because of delay owing to the Environment Agency not knowing that the flood storage system it had in mind constituted a reservoir.

I again express the Committee’s support for sustainable drainage systems. Local authorities have expressed concern that they be properly resourced, and the Minister has the opportunity today to set their mind at ease. They have to be given the financial resources they need. I have mentioned water companies being statutory consultees.

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[Neil Carmichael (Stroud) (Con)]

Thank you, Mr Walker, for inviting me to speak in this timely and important debate. It is important because my constituents are dealing with the issues created by the Severn estuary and because of the work that the Select Committee has accomplished, which we are considering.

I want to look at the situation in my constituency from two directions: the Severn estuary and the Slad valley. The Severn estuary is the most important, because it has raised a number of key issues, which my constituents are concerned about. The first is the solutions being imposed from afar when localism and more community involvement would be much preferred. In that respect, we are talking about a long-running process, which has been under way ever since local people around the Severn estuary in my constituency first discussed a strategy after the Environment Agency produced its proposals. The second issue is the use of farmland adjacent to the estuary. The concerns are therefore largely about land use and the lack of consultation, and I will touch on both.

We have had an interesting discussion about insurance, and I will touch on that before I go on to the meat of my remarks, because that issue, too, has been raised by constituents. The flooding map would suggest that the whole village of Frampton On Severn is vulnerable to flooding, which it is not, and large parts have not been flooded for long periods or, indeed, ever. Why should the map be so misleading? It is largely because the map shows what would happen if there were no flood defences. However, there are flood defences, and that needs to be made clear. Insurance firms and the insurance industry in general need to be aware of the fact that flood maps show what the situation would be without defences. However, there are defences, which operate perfectly well in Frampton, so the village has no worries about being flooded. It would be a great step towards allaying residents’ fears if we could give more meaning to these maps and bring insurers’ attention to the reality of the situation.

To return to the Severn estuary, it is obvious that there are flood risks, because flood defences are already in place; some are in need of repair, some need adjustment and some need to be completely reshaped. There is no dispute that flooding is a risk. What we are disputing is how the strategy will unfold over the next 10 to 50 years. Essentially, three sequential tests will be applied to the strategy, and they all raise key issues, which we should consider.

The first test is economic and is all about the value of the territory being defended—whether it is farmland or land for housing and development. There are concerns about planning, but we are talking about the situation that exists now. Some areas of land along the Severn estuary in my constituency have an agricultural value but no developed value. That needs to be carefully considered, because it is necessary to ensure that public money is spent wisely. Huge sums would not necessarily be invested in defending just agricultural land.

That raises the issue of production. No planning system considers what would happen to land or to a factory if it were flooded or not flooded, but a lot of people in my constituency are rightly concerned about quality farming land being removed from production. That needs to be carefully considered by all concerned.

If the economic test is failed, there is the “make do and mend” approach, which my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) referred to indirectly, if not directly, when she noted that some farmers protect their own land. The existence of that option needs to be set out more explicitly as one of the range of options that are available.

The second test is the legal test and has something to do with habitat. At the end of the day, we have a commitment to ensure that new habitats exist after flooding. Where areas that are flooded hosted wildlife and so forth, we have to retrench and find new habitats. That raises two critical questions: what kind of territory are we really thinking about and how far do we consider the entire basket of options? That raises the question of where the habitat should be and how much should be provided.

[Barry Gardiner]

Does the hon. Gentleman agree that the biodiversity offsetting provisions in the White Paper that the Government released earlier this year go a long way towards addressing this question? They propose a very commercial way of proceeding, but they can bring real biodiversity benefits by looking at an offset bank and ensuring that appropriate provision is made elsewhere. I thought that was one of the great features of the White Paper.

[Neil Carmichael]

The hon. Gentleman is absolutely right that it is an important feature, but the question remains who will provide the habitat on what is, effectively, a peninsula. The Environment Agency has made it clear that that will be decided through agreement and consultation, but we still have to answer the question of where we should allow or encourage the conversion of farm land into habitat areas. That is still the issue. There is still a legal test. In that context, the question for the Minister is how much land he wants and how much DEFRA will agree to. That has implications in terms of the European Union’s attitudes and regulations. The legal test is therefore important, and it must be framed in a way that everybody understands.

The third test is the community test, which I have mentioned. It is critical because local people must feel part of the process; they must feel engaged and that their expertise and local knowledge are applied appropriately. That is where we have run into trouble to some extent in the processes that I have already described, relating to the Severn estuary. The Environment Agency has rightly recognised the concern and alarm and has, as it puts it, taken time out. Everyone will consider where we are, and the options that are on the table. Of course the time out will end at some point, and there will be some options and choices.

To make sure that the community test is given a fair chance to work, I am pleased that the Environment Agency has decided to appoint an engagement officer, with the specific task of ensuring that our communities—our farmers and the local people—will be properly consulted when the time out period comes to an end and options and choices are agreed. Of course, DEFRA has a key responsibility because, in the end, when it agrees a strategy the moneys will be released, so the question is a political one, as much as it is a function of the Environment Agency.

In concluding the part of my remarks that focuses on the Severn estuary, I want to emphasise the importance of the economic test in relation to respecting the value of land and acknowledging the issue of agricultural production. As to the legal test, I want it to be clearly understood that we must be sensitive and sensible about identifying suitable areas for habitat and making sure we consider a sufficiently wide area, so that any landowners who want to move in that direction can do so without threatening those who do not. That is a critical issue.

I want to touch on some other points, one of which is localism and the question of local knowledge and aspirations. There is a long valley in my constituency, called the Slad valley. It is famous as it is where the Woolpack is—the famous haunt of Laurie Lee. It is a great pub, and I invite all hon. Members to go there.

At the top end of the valley there is the beginning of the mills, water storage systems and so forth, and at the bottom is Stroud, which gets flooded. Of course there are ways to protect houses, and many have opted for protection, although not all, and certainly not enough. Our community, and people in the Slad valley, are keen for the problem to be solved further up the valley. My hon. Friend the Member for Thirsk and Malton has alluded to the same points, because I know that such things are being carefully considered in parts of Yorkshire. That emerged in the all-party group on flood prevention some months ago. I want to underline the importance of properly consulting organisations, to enable their ideas to be incorporated. I am also delighted, therefore, that the Environment Agency is willing to meet all the various partners and actors.

A point that needs some amplification is the role of internal drainage boards, which are important and do a huge amount of work. It is interesting that the one that covers most of my territory also covers a huge industrial area in the Avonmouth sector. Of course the work that it does there effectively finances the work it does on the agricultural side. We must be mindful of the cross-fertilisation approach that is used in all sorts of public protection measures. The internal drainage boards are a good example. First I put in a plea for recognition of the value that they bring to such management issues; and secondly I urge the boards, wherever they exist, to co-operate whenever they can with the other organisations.

I thank the Minister for agreeing to meet a contingent of my constituents to discuss the situation in the Severn estuary. They were going to come here today, but they are still more excited to have a direct meeting. I have had many meetings, with a huge number of people representing many different interests, but the key point that they want to get across is that they want to be consulted. They want their local expertise to be recognised, their local knowledge to be understood, and their homes and farms to be properly considered in the context of the three tests, which should be properly respected and understood.

[Barry Gardiner (Brent North) (Lab)]

I am delighted to speak in the debate, and congratulate the hon. Member for Thirsk and Malton (Miss McIntosh) on initiating it. She chairs the Select Committee with great aplomb, and I know that the matter is exceptionally dear to her heart. I was surprised only that she curtailed her remarks as she did. I expected at least an hour from her.

I look forward most of all in the debate to hearing from the Minister about the progress that has been made since the Government responded to the Committee earlier in the year. The Committee’s report was published last year following a series of welcome and ambitious commitments from the Government: safeguarding clean, reliable and affordable water supplies; protecting households and property from the risk of flooding; and reforming the water industry and making it more resilient, efficient, sustainable, innovative and affordable. The report provided the Government with a comprehensive and holistic approach to delivering on those commitments. Of course we should, in this debate, be assessing the progress that has been made. Instead, I am afraid we must reflect on a number of broken promises and missed opportunities.

A water White Paper was promised for June. In April the Minister revised that commitment and promised that it would be published in the autumn. Unfortunately, the latest business plan of the Department for Environment, Food and Rural Affairs now promises publication in December, nine months after the Committee’s report, and we are still no clearer on how the Government plans will encourage the retrofitting of sustainable drainage systems, how they will ensure that customers’ views will be taken into account during the price review process, and how investment in the water industry will be better managed to avoid the boom and bust cycle that so badly harms the supply chain. There is also uncertainty about the future of metering and water efficiency in households, social tariffs to reduce the impact of rising bills on low-income customers and the future of competition in the water industry. Publication in December would leave only four months for the Government to meet their commitment to introduce any new legislation required as a result of the White Paper by next April. I hope that the Government’s ambition will not be scaled back in the fight against a tight time scale.

Since our report, the Government have also severely cut capital funding for flood defences. When we consider that we need to increase investment simply to maintain the current level of protection, that is cause for considerable concern. As the Committee pointed out:

“To cut back significantly on flood defence infrastructure spending could be a classic example of short-term savings leading to much greater long-term costs.”

The Government have also failed to provide any assurance on the provision of flood insurance beyond 2013. The natural environment White Paper, which was excellent in many ways—we adverted to some of it earlier in the debate—also missed a valuable opportunity to set out how, for example, agriculture and land management could play a stronger role in reducing flood risk and improving water quality. I hope that the Minister will take the opportunity to update us on each of those issues, so that we may leave this afternoon’s debate with a much clearer idea of Government policy on the future of flood and water management. I shall try to deal with each of those issues.

I also want to discuss some of the priorities for the forthcoming White Paper. Ever since privatisation, capital expenditure in the water industry has been concentrated towards the middle of the five-year funding cycle. That has led to financial and managerial inefficiencies in addition to instability in the supply chain, ultimately resulting in higher costs for consumers. It also leads to the migration of skilled resources out of the sector to more stable industries. That has created a severe and worsening skills shortage in the water industry.

The White Paper must help to bring to an end the effect of that five-year asset management planning cycle. It should also explore the link between the price review and innovation. In the current investment period, companies are looking for tried and tested technologies with payback within three years. Some water companies have disbanded their research and development departments as they are not currently funded by the price review. R and D is now conducted on an ad hoc basis rather than in a co-ordinated way.

The water sector faces a period of huge challenge in coping with the implications of climate change, and in reducing its own carbon emissions. It can ill afford to be locked into a short-term investment cycle that stifles and inhibits innovation. The White Paper must set out how the Government will restructure the water industry properly to incentivise and encourage companies to invest in innovation, particularly in treatment processing, energy efficiency, leakage prevention, and water efficiency.

Competition can help to stimulate that innovation. Competition in the water industry is not an end in itself, but it is a means of improving services for customers, particularly the most vulnerable, and improving environmental outcomes.

In the White Paper, the Government gave a commitment to respond to the Cave review, and I would welcome an update from the Minister on how the White Paper will ensure that greater competition will meet those challenges. It would be helpful if the Minister clarified whether the Government’s one-in, one-out rule, which prevents a regulation from being introduced unless another is scrapped, will apply to any legislation proposed in the White Paper. If so, perhaps he will share the Department’s thinking on which regulations might be scrapped in the event of any legislation coming forward in April 2012.

We talked much about sustainable drainage systems in another area on which the Government gave a commitment in the White Paper. When sustainable drainage systems are successfully implemented, they can make a significant contribution to reducing the risk of flooding by increasing the capacity of land to absorb water. They can also reduce the risk of water contamination, and increase the sustainability of water use. The provision of SUDS for new developments and, where possible, for existing developments is widely supported throughout the House. However, evidence to the inquiry revealed widespread concern among local authorities about their ability to fund the adoption and maintenance of SUDS. The Government’s response to the Committee stated that DEFRA would fund local authorities for the costs of maintaining adopted SUDS and SUDS maintenance in the “short term.” Will the Minister say how long he expects that “short term” to be? That is important for local authorities.

In November, the Prime Minister said that flood defence spending would be protected, and would be “roughly the same” as under Labour. In fact, capital funding for flood defences to protect homes has fallen from a baseline figure last year of £354 million to £259 million. We now know the meaning of the phrase, “roughly the same”. It means give or take 30% according to my mathematics. In fact, it is a 27% cash cut to the budget, and a 32% real-terms cut when inflation is taken into account.

[Mr Graham Stuart]

After the floods in 2000, the then Prime Minister, Tony Blair, had people from Norfolk and other areas to No. 10 Downing street and made expansive commitments on flood protection. However, the pressures of political life being what they are, flooding moved out of the spotlight and those promises disappeared along with the floodwater. It is an historic happening for Governments slowly to cut long-term infrastructure investment when it is not in the spotlight. Does the hon. Gentleman have any thoughts on how to create a long-term sustainable structure which, regardless of the political cycle, ensures that our constituents are properly protected from flooding?

[Barry Gardiner]

The hon. Gentleman points out that at various periods during the previous Labour Administration the flood budget was raided, but he must acknowledge that overall there was both a real-terms and a cash increase in that budget. He is absolutely right that from time to time that budget was raided and cut as necessary in the political cycle, but overall it was increased. The Minister knows that I have the greatest respect for him and the work that he is trying to do in this area, and I know that he understands the importance of the matter. The hon. Member for Beverley and Holderness (Mr Stuart) talked about small cuts, but this is not a small cut. It is a 27% cash, or a 32% real-terms cut in this period. That is a huge amount.

[Mr Graham Stuart]

The hon. Gentleman is being generous in giving way. I was not trying to suggest that he is not being proper in challenging the Government. My point is that historically Governments tend to raid the flood budget when under the pressure that they inevitably suffer. The last Government was much better at spending money than the present one, but it turned out that so much of that money could not be sustained, and we could not afford it. He should not boast about that too much. What we should focus on is how to create a long-term situation so that whoever is in government and whatever the state of public finances our constituents will have a guarantee that that political cycle will not get in the way of sensible, stable support for flood defence in their homes.

[Barry Gardiner]

I absolutely agree with the hon. Gentleman. We have talked about introducing minimum standards, and we must move towards consensus, because that is in everyone’s interest.

The Government have given a commitment to deliver 15% efficiency savings in Environment Agency flood defence budgets, but that leaves an overall reduction in those budgets of 17%. I would be grateful if the Minister provided us with an update of his assessment of the impact of that reduced funding settlement in relation to the Government’s flood programme, and the flood defence work that the Environment Agency has programmed for the next three years. Will he also provide an indication of how the 15% of efficiency savings in the Environment Agency has impacted on that work?

Despite those funding reductions, the Committee noted the Government’s commitment fully to fund local authorities in their new roles under the Flood and Water Management Act 2010, and that they would provide direct grants of up to £36 million a year to lead local flood authorities. That is welcome. Each lead local flood authority would receive at least £110,000 a year, with the authorities tackling the highest levels of local risk receiving up to £750,000 a year. However, the communities and local government special grants settlement for 2011-12 highlights that the most that any lead local flood authority received this year was not £750,000, but £260,000—that was in Kent. Of the 152 lead local flood authorities, 144 received less than £200,000. To allow for local flexibility, those grants are not ring-fenced. On average, central Government funding to councils will fall by 26% over the next four years. I understand the constraint under which the Government are operating.

[Mr Graham Stuart]

The hon. Gentleman’s party created them.

[Barry Gardiner]

Indeed, I take on board the party political knockabout that we can have. Local authorities have been put in an extremely difficult position. By not ring-fencing the funds, the Government cannot be sure that they will go into flood defences. It is therefore important to find out from the Minister how the Government plan to review local authority spend on flood management, and how they propose to hold local authorities to account for the money they have been given to spend in that area.

I acknowledge that that is not just a matter for central and local government. The Committee concluded that it was right for beneficiaries such as developers to help fund new flood defence schemes. In light of that, will the Minister confirm how funding through the new flood and coastal resilience partnership funding arrangement will be focused on those communities at greatest risk? How will the Government identify those communities and ensure that their protection is achieved in practice? As discussed earlier, the Government’s draft national planning policy framework should also be amended to address how planning should apportion the costs of providing flood defences for new developments between public agencies and private beneficiaries.

The Labour Government’s statement of principles guaranteed universal flood insurance coverage for homes in affected areas. That guarantee runs out in 2013, and was based on the understanding, following the Pitt review, that Government should have

“above inflation settlements for future spending rounds.”.

We know that that will no longer be the case.

The Government’s response to the Committee’s report committed to updating the Committee on progress with implementing

“a roadmap to take us beyond 2013.”

I would be grateful if the Minister took this opportunity to update hon. Members on precisely what the roadmap beyond 2013 might look like.

Water saving through greater efficiency will become increasingly important, especially in parts of the country where climate change and population growth will lead to significant constraints in supply. The Building Regulations 2010 introduced a new minimum water efficiency standard for new homes. The potential consumption of potable water by persons occupying a dwelling should not exceed 125 litres per person per day. Will the Minister confirm whether the Government have plans to increase the minimum water efficiency standard in future revisions of the Building Regulations 2010?

As the Committee noted, metering plays a key role in helping to reduce water demand. More widespread introduction of metering will mean that there are winners and losers and some, including groups of vulnerable customers, could see significant rises in their water bills. Social tariffs can help to ameliorate the impact of rising bills on low-income customers. The Government’s response to the Committee stated that they were preparing

“guidance on company social tariffs under Section 44 of the Flood and Water Management Act 2010.”

Will the Minister confirm when that will be published as it is of great interest and importance to many poorer constituencies? The regulatory framework under which water prices are set must also be reformed to include stronger water efficiency targets for water supply companies. The water White Paper should be clear on how that will be taken forward.

In giving evidence to the Committee, the Environment Agency estimated that costs associated with implementing the water framework directive up to 2027 could be between £30 billion and £100 billion, depending on the approach taken. Despite that level of investment, the UK was likely to see only 26% of rivers achieving “Good Ecological Status” by the water framework directive target date of 2015. The Government’s response to the Committee highlighted that it was possible, within the terms of the directive, to set lower standards of compliance. Will the Minister confirm whether the Government have plans to make use of that option? If so, it would be extremely deleterious. Do the Government have any plans to implement the “polluter pays” principle more accurately, so that customers do not have to foot the bill for cleaning up pollution for which they are not responsible? Domestic water customers currently pay some 82% of the costs of implementing measures to meet WFD requirements.

Together with other members of the Environment, Food and Rural Affairs Committee, I welcome the focus placed by the Government on flood and water management. They seem, however, to have lost their way over the nine months since the report was published. An ambitious water White Paper and the commencement of provisions in the Flood and Water Management Act that have not yet been effected, must be a priority. I look forward to hearing from the Minister about how the Government plan to move the issue forward.

[Mr Charles Walker (in the Chair)]

Order. We have one hour and 10 minutes for speeches, and seven colleagues who wish to speak. That is about 10 minutes each.

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[Richard Benyon]

Of course I acknowledge that; I was coming on to talk about it. Possibly through the unguarded way in which I was talking about affordability in the south-west, I may have—heaven forbid—given the impression that I thought that people in the south-west were all millionaires. Of course I do not think that. I am fully aware of the profile of rural life across the south-west and across other parts of the country. The hon. Gentleman is absolutely right—there is deprivation in rural areas as well.

[Barry Gardiner]

Just to add to the Minister’s caution around the question of deprivation, so much of social housing in the past 25 years has been built in areas that are subject to flood risk. The people who live in that housing had few housing options open to them. Through being on housing lists, they were forced into that accommodation. They are particularly exposed to those risks, in ways which people who have the financial ability to choose where they live are not. For that specific reason, it is important that deprivation is taken into account.

[Richard Benyon]

The hon. Gentleman is right, and that relates to the issue of insurance as well. I have been taking forward one measure. Housing associations or council-owned housing stock offer an opt-in scheme on contents insurance. I believe strongly that we should encourage people to do an opt-out scheme. Fifty pence a week can give you £5,000 worth of contents insurance. People would be more likely to have that if it were an opt-out scheme. There is so much that we can do to protect.

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[Barry Gardiner]

Will the Minister give way?

[Richard Benyon]

I apologise, but I really cannot, because I do not have much time left.

The statement of principles was mentioned by a great many hon. Members. We are working hard with the insurance industry and all relevant parties. A number of hon. Members, including the Chair of the Select Committee, came to our flood summit, out of which came three working parties, which will look at the financial risks from flooding, data provision, transparency and sharing, and the customer experience of resilience to flooding. We had a meeting with the Secretary of State to follow up that work, which we are progressing, and we will come forward with the solutions in the early part of next year—that is a real priority for the Department.

It is important to recognise that some houses that have insurance in name barely do so if we take the excess charges into account. We face a great many difficulties, but our understanding of flooding—in particular we have a greater understanding of surface water flooding—is starting to pay dividends. We can now get a picture, almost house by house, of where risk starts and finishes, and of what we can do. Sometimes the risk can be alleviated merely by putting a row of bricks on top of a wall or by blocking an entrance or configuring it differently, but we must make certain that all our plans are joined up. Our desire to protect the natural environment, which is strong, does not mean that we are flooding homes because we are not thinking of things in an holistic and joined-up way. All agencies are seized of that, and I will continue to drive it.

I am rather concerned by the eponymous nature of some of the proposals and the optimistic view that people might have of my abilities. I hesitate to take credit for so much that has been thrown at me, because it has been a team effort. I pay tribute to how the Environment Agency is approaching this important issue, although I can assure hon. Members that I work closely with it.

DEFRA has spent a lot of money on equipping emergency services and other organisations with training and equipment to deal with flood. The hon. Member for Hayes and Harlington (John McDonnell) raised the issue of a statutory duty, but that is one of the few areas of the Pitt review that we have not taken forward. We have an open mind about it but, having said that, I cannot see why it makes a difference for a fire and rescue service to have a statutory duty. Every fire and rescue service that I have spoken to, and I have spoken to a lot, has done wonderful work when dealing with flood. We are equipping them and we are training. I am happy to talk to the hon. Gentleman with an open mind about whether a statutory duty would make a difference—the wording in the Pitt review is “as necessary”. Sir Ken Knight, the chief fire officer, has come forward with some proposals, and I would not mind discussing them with the hon. Gentleman in a less formal way, to see whether we can find a solution that satisfies everyone.

My hon. Friend the Member for Tewkesbury (Mr Robertson) and other hon. Members made important comments and gave moving descriptions of flooding in their areas—descriptions I recognise from flooding in my own constituency. I hope that hon. Members from the south-west were pleased with the Chancellor’s words in the Budget, which showed a real commitment to deal with the unfairness that they so accurately feel on behalf of their constituents. I assure them that we are following through on that.

The hon. Member for Copeland made many important points. He talked about whether we were taking an holistic enough view and dealing with the problems upstream. He was absolutely right to say that. It is important that water companies, farmers, landowners, local authorities and the Environment Agency ensure that we use the natural environment where we can to prevent flooding further down.

We will not spook the investor when we come to reform of the water industry. We recognise that around £100 billion has been spent by investors in the water industry in the past 20 years, and we want to see much more of that.

With those remarks, I would like to leave some time for the Chair of the Select Committee.