(9 years, 8 months ago)
Commons ChamberThe Select Committee on Environmental Audit has used a traffic light system to assess the Government’s performance over the past five years. On air pollution, it has given the Government a red light; on biodiversity and wildlife, it has given the Government a red light; and on climate change adaptation, flooding and coastal protection, it has also given the Government a red light. This Government were supposed to be the greenest Government ever, so why are they ending their time in office without being awarded a single green light?
During my time in office, I have been happy to give evidence repeatedly to the Environmental Audit Committee, though I might disagree with some of its conclusions. I am happy to say that this Government are making improvements on air quality. There are issues with nitrogen dioxide, but they are being addressed at European level. We are improving our status in the important area of biodiversity in this country. We are improving our water quality. Across a whole range of areas, this Government are taking action to improve the quality of our environment and to establish, through the processes of the Natural Capital Committee, the importance of our natural capital now and in the future.
(9 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I begin by welcoming you to the Chair, Mr Walker, and thanking you for your guidance in the remainder of the debate. I congratulate the hon. Member for Thirsk and Malton (Miss McIntosh), the Chair of the Select Committee, on an interesting report. I echo the tribute that several hon. Members have paid to the volunteers who helped others during the floods, and to those who worked around the clock to save life and property.
The risk of flooding has increased and is increasing. The Government abandoned our focus on reducing flood risk, and they abandoned the commitment they made before the 2010 election to deliver on the findings of the Pitt review, which would have reduced the cost of flooding to well-being and the economy. In that, the Government failed the country last winter. In addition to gradual changes in patterns of rainfall and a rise in sea level, climate change is likely to result in an increase in the frequency and severity of extreme weather events such as the floods and storms of last winter. The risk of catastrophic flooding happening in England within the next two decades, causing in excess of £10 billion in damage, now stands at one in 10—a 10% risk. That is the risk of a flood 10 times more damaging than the 2013-14 floods and three to four times more damaging than the widespread flooding of 2007. The Minister will know better than anyone that we are completely unprepared for such a flood, which would be four times greater than the largest civil emergency since the end of the second world war.
I am keen to hear the hon. Gentleman develop his argument on the way forward, looking at the Select Committee’s report and the Government’s response. He seems to be suggesting, however, that actions taken or not taken by this Government over our period of office led to the flooding of properties during the winter floods of 2013-14. I should be grateful if he let me know specifically which of those properties flooded as a result of a change in policy. We heard from my hon. Friend the Member for Somerton and Frome (Mr Heath) about some policies that had been changed over a number of years, and there are schemes that have been in development in other parts of the country, which may have a problem. I am concerned to clarify whether the hon. Gentleman was alleging that there were properties that were flooded through the fault of the Government, rather than as a result of the extreme weather. The future is a different matter, and we can debate that at some length, but I am specifically concerned about the winter of 2013-14.
It is quite clear that the Government abandoned the focus on reducing flood risk. They took it out of the Department’s priorities. That was one of the first things done in 2010. They abandoned that focus and reduced the budget dramatically, and as a result the Environment Agency was much less well prepared, financed and resourced to cope with the floods. The Minister knows perfectly well that hundreds of posts were taken out of the Environment Agency, not only back-room posts but front-line ones.
It is absolutely true that we delivered efficiencies right the way across Government. The hon. Gentleman knows the financial position that the Government were left when we came into office. The point that I sought to make was not about the available resources and so on, but about the results. I am sure he would agree that it is possible to be more efficient and still have guaranteed outcomes. There have been problems, and it is devastating for anybody to experience flooding. I will have the opportunity to talk about that and to respond to some other points later on—
It is a pleasure to serve under your chairmanship, Mr Walker. I apologise if I tested your patience a little with my interventions. I now have the opportunity to respond to and probe the arguments of my hon. Friend of sorts—the hon. Member for Brent North (Barry Gardiner). Your predecessor in the Chair, Sir Edward, was so keen to hear the remaining speeches that he hoped we would conclude before he left. As it turns out, however, we have now had the benefit of your chairmanship, for which I am grateful, as well as that of Sir Edward, who presided in such great style earlier.
I thank the Chairman of the Select Committee, the hon. Member for Thirsk and Malton (Miss McIntosh), for all the work she and the Committee have done. I might be seen as a little biased, having served on the Committee in the past. So, too, has the hon. Member for Brent North, and other members of the Committee are also present. The Committee has done the House and the country great service on many topics, and its contribution to this debate is very helpful. It is always a matter of great excitement for Ministers to be called before it, and I enjoy that as much as I am sure my predecessors did. I congratulate the Chairman on securing time for the debate through the Liaison Committee.
I want to start by setting some of the issues in context. As my hon. Friend the Member for Cleethorpes (Martin Vickers) said, we have had a number of these debates—some have covered issues relating to his constituency—and my hon. Friend the Member for Somerton and Frome said the same. None the less, it is important that we remind ourselves of the extreme levels of rainfall and the impact of the weather during the winter of 2013-14. There were record levels of rainfall, and it was the stormiest period for at least 20 years. There were record river flows, sea levels, wave heights and groundwater levels in many locations, and that led to the flooding of more than 8,300 homes, and caused damage or disruption to businesses, infrastructure, transport and utilities. Like other hon. Members, I have seen the damage caused by last winter’s flooding, and its devastating impact on people’s day-to-day lives. My sympathies go out to all those affected, especially those who still cannot go home.
There has been a major Government recovery effort to help people to get back on their feet, which included committing more than £560 million in recovery support funding. Many organisations were involved in responding to the exceptional weather, including the Government and their agencies, the emergency services and the military, and many voluntary organisations, as well as transport and utility companies. As the hon. Member for Vale of Clwyd (Chris Ruane), who is no longer in his place, said, individuals stepped forward to help neighbours and vulnerable people as part of the response effort. Also, people elsewhere who had seen what was happening wanted to help in some way and send assistance, which was gratefully received in areas such as the Somerset levels.
We have reviewed what happened and made improvements, which mean that we are now better prepared for flooding. In England alone, 844 flood defence assets were damaged last winter, including those managed by the Environment Agency, local authorities and internal drainage boards. In response to the exceptional weather, DEFRA made an extra £270 million available to repair, restore and maintain the most critical flood defences. Repair work at many of those sites started as soon as weather conditions allowed and, thanks to the tremendous effort by all involved, all areas will have at least the same standard of protection as they did before that winter. In discussions earlier with Environment Agency colleagues, I heard that their counterparts in the Netherlands, who watched the efforts here with interest and offered some input as to what they do in their jurisdiction, were incredibly impressed with the speed with which the repairs were done. It is good to hear praise for the excellent work done by the Environment Agency, its contractors and the local authorities it works with; they put tremendous effort into restoring the defences, given the investment.
Permanent defences were restored to more than 200,000 properties on schedule, by the end of October, and, for a small number of sites where repairs are continuing, contingency measures such as mobile pumps and temporary flood defences have been put in place to ensure that communities are protected until completion. More than 99% of permanent repairs should be completed by March, assuming that there is no further damage over the next few months—something that we need to keep a close eye on. For the remaining three sites, permanent repairs are not expected to be completed until March 2016. Interim contingencies are in place for all three sites. We are investing £3.2 billion in flood management in the current Parliament. That is a real-terms increase, and £500 million more than was spent in the previous Parliament. It includes both capital and resource funding. We are also making a record £2.3 billion capital commitment to improving defences, which is a further 9% real-terms average increase.
On 2 December we published a flood defence improvement project pipeline. We will be investing in more than 1,400 projects across the country over the next six years. That investment will protect more than 300,000 properties, in addition to the 230,000 households already protected so far this Parliament, keeping families safe from the misery that flooding can cause. It will also protect more than 420,000 acres of agricultural land, 205 miles of railway and 340 miles of roads. That investment is not just about protecting people’s lives and property now and in future. Throughout the country, businesses, infrastructure and farmland will also benefit. We estimate that our record investment will help to prevent about £30 billion of economic damage, including giving a £1.5 billion boost to the farming sector. That is an average of at least £8 in benefit for every £1 invested. There was some discussion earlier of the impact on the Somerset levels. Although quite a low number of properties suffered inundation, the economic impact lasted a long time. Rural and some urban communities had additional transport needs, and daily life was interrupted, and we must take account of that wider effect in what we do.
Tackling the risk of flooding can also help economic development and growth, unlocking opportunities for inward investment and helping to create and sustain jobs. We estimate that the benefits to the local economy are worth an additional £4 to £9 per £1 invested. Local enterprise partnerships, along with local authorities and other private sector partners, have increasingly been taking account of such issues in local growth bids when deciding where to invest for communities. That gives us confidence that the partnership model is the best approach. We can attract extra investment alongside Government investment through grant in aid.
What I have outlined demonstrates the Government’s commitment to reducing flood risk. However, that is not a task for the Government alone. Our partnership funding approach, which was introduced in 2011, has already exceeded our expectations in enabling others to contribute. We expect that the investment programme that we announced last month will attract more than £600 million pounds in local contributions, to expand on the work that could be done by Government alone. The Government will legislate to ensure that businesses’ contributions to flood and coastal erosion risk management schemes are tax deductible, as a way of incentivising their investment.
What percentage of the previous target for partnership funding has been realised?
I think we are on course to achieve about £140 million—I will confirm that in writing—during the present financial period to invest in those schemes. That compares with about £13 million under the previous Government, so it is a big step forward.
The hon. Gentleman was keen to point out that many of the schemes in the pipeline will require partnership funding. We have never sought to hide that fact: it is out there. It means that record investment can go even further. We also want to continue to secure efficiencies in delivery. The hon. Gentleman has talked about the resources available and the number of staff in the Environment Agency, but it is outputs that are important.
I pay tribute to the Environment Agency for the way in which it, like many other public sector organisations, has had to adjust to the reality of the deficit that we were left, and the need to tackle it. The shadow Chancellor has been keen to get out and persuade everyone that he gets it now, and understands the importance of dealing with it; and we have all had to tackle it. The Environment Agency has done particularly well in generating efficiencies—for example, taking out the regional tier, which is difficult in any organisation. It did it, and has been able to spend the resources made available by the Government more efficiently than ever, so that we can proceed with the investments. Because of the Government’s £3.2 billion investment in flood risk management during the current Parliament and the record levels of investment announced in the autumn statement, we will over the next six years reduce by 5% the risk that flooding poses to communities and businesses across the country.
There were several discussions during the debate about the effectiveness of dredging. Dredging and contour planting are tools that can help to reduce flood risk. Each catchment is different. It would in many cases be wrong to dredge where there is a fast-responding catchment. I am not an expert, but it seems to make sense that speeding the water to the next pinch point will cause problems further along the catchment. In landscapes such as those I saw in Somerset where the rate of flow is not the swiftest in the world—landscapes that, as my hon. Friend the Member for Somerton and Frome pointed out, are man-made—what is needed when there is a huge volume of water is to try to help it to get out to sea.
I have heard other Members of this House seek to debate that fact with my hon. Friend, so I am convinced of his expert knowledge of the area in which he grew up, and which he now represents so effectively.
We had many visits from right hon. and hon. Friends to the area in Somerset. As my hon. Friend knows, I was appointed in October, and the first east coast surge came a few weeks later, in early December. I went with him to Somerset early in the new year to see the impacts for myself, and came back with him and other hon. Friends to make the case for dredging work, which I am pleased to say has now taken place, as he pointed out. We hope that it will make a difference—not, as he said, by making the Somerset moors and levels bone-dry for the foreseeable future, but by helping with the management of that important landscape.
The effectiveness of dredging in managing flood risk varies from place to place. In some areas, dredging is the most cost-effective approach; in others, it would divert resources away from other flood risk management activities that are far more beneficial to local communities, such as maintaining pumps, sluice gates and raised embankments. It is right, therefore, that the Environment Agency should assess its value carefully, taking account of the other options available on a location-by-location basis, while working in very close consultation with local communities and organisations, a point made repeatedly and rightly by my hon. Friend the Member for Cleethorpes.
Approximately £10 million of the extra £70 million allocated by DEFRA to maintenance this financial year and the next is being invested in dredging. That is in addition to the dredging recently completed in Somerset. Maintenance and other flood risk management work is not just about what the Government can do; we want to enable others to undertake maintenance, including in partnership with the agency. The Government recognise and support the important work undertaken by internal drainage boards to manage water levels, reduce flood risk, support local growth and protect critical infrastructure.
There are excellent examples of partnership working between the Environment Agency and IDBs; my hon. Friend the Member for Thirsk and Malton was keen to make that point, and she was absolutely right. That includes sharing work programmes and agreeing to work together, for example by completing work on one another’s behalf through public sector co-operation agreements. There are now 28 public sector co-operation agreements in place and a further 30 agreed in principle, and the Environment Agency has already undertaken some work on behalf of IDBs. Such agreements can create efficiencies, and we want many more agreed over the next year. Recent work by IDBs on main rivers has included grass cutting, weed control, tree work, dredging, obstruction removal, operation of sluices and incident response.
During the summer of 2014, the Environment Agency held meetings across the country to explain the agency’s maintenance plans and give local stakeholders an opportunity to contribute to them and influence the maintenance programme for the year ahead. Maintenance plans for 2015-16 will be shared with IDBs and other risk management authorities early this year. We are grateful to IDBs for their help in the exercise to identify potential areas for dredging, as it is helping to build our evidence base on where dredging can be beneficial in managing flood risk. The evidence gathered is being assessed by the Environment Agency. Alongside evidence on other flood management options, it will help to ensure that the available funding is prioritised as effectively as possible.
The issue of agricultural land has been raised. As stated in the Government’s response to the report, we very much agree with the Committee on the importance of agriculture to the rural economy. The Environment Agency prioritises flood risk management asset maintenance according to the highest benefit, helping protect approximately 50% of the agricultural land at flood risk in England, including the majority of the most productive grade 1 and 2 land. As I have explained, we will spend more than £3.2 billion over the course of this Parliament on flood and erosion risk management, and much of the 1.3 million hectares of agricultural land at flood risk will benefit from that investment.
Capital investment also helps. Projects in the last three years have provided an improved standard of flood protection to more than 235,000 hectares of farmland. We made changes in 2011 to introduce financial contributions for worthwhile schemes to increase flood risk management work through the partnership funding we discussed earlier. Rural areas are benefiting from that approach; about 25% more schemes are proceeding with DEFRA grant in aid than would have been possible under the old rules.
Flood insurance was mentioned by a number of hon. Friends, and by the hon. Member for Vale of Clwyd, who is no longer in his place. I am grateful to my hon. Friend the Member for Somerton and Frome, given his experience in the Department prior to mine, for setting out the huge amount of work going on to deliver the Flood Re scheme. It is a very detailed form of negotiation, and we must ensure that it works effectively and does the job that it is designed to do.
I was a little disappointed that the hon. Gentleman opposite—I am not pointing at the shadow Minister, but over his shoulder to where the hon. Member for Vale of Clwyd was sitting, although he has, sadly, been called to business elsewhere—felt that the scheme was failing in some way. Actually, although it is an involved negotiation, we are delivering on it, and I pay tribute to all those across Government who have been involved in ensuring that we get it right, as well as to colleagues in the Association of British Insurers. We have been negotiating, which sometimes leads one organisation to face another across a table, but there is a spirit of co-operation on delivering Flood Re, which I think will make a difference.
I say to colleagues whose constituents have had problems obtaining insurance that I understand those frustrations. As my hon. Friend the Member for Somerton and Frome said, I recently attended a meeting in Somerset with constituents and representatives of others about some of those problems. Flood Re will help, which is why it is important that we move forward on delivery. I look forward to the opportunity to do something similar in his constituency, so that we can talk about some of the problems.
I am grateful for the Minister’s clarification of the remarks made on Flood Re. Can he expand on how he envisages Flood Re will work, over the next 25 years, to move the consumer towards risk-reflective pricing, as it is supposed to? Although Flood Re certainly postpones that question, it is not clear how the transition to risk-reflective pricing will be made.
Clearly, the Government’s responsibility across that period—the hon. Gentleman has alluded to the importance of considering the issue, modelling based on our changing climate and so on—is to continue investing in defences, but also to be clear in planning. My hon. Friend the Member for Somerton and Frome pointed out that earlier in the last century, perhaps it was not quite as clear that development should take place in areas that will not add to problems for the future. That is not to say that there should never be development in areas that are technically floodplains; as a London MP, the hon. Member for Brent North will know that a great deal of this wonderful city is in that situation, which is why we have the Thames barrier and other schemes moving forward. We want that economic development and investment. There are other towns, cities and villages in the same situation, but we must take account of the risk and deal with it as part of any development.
That raises a point of contention that I put to the Minister. He has acknowledged, and I accept—indeed, I made this point—that there still is, and will continue to be, development on the floodplain, so why, in the main assumptions in the baseline result, is that precisely excluded from the Government’s own projections when they assess risk?
We are clear that we should not develop on floodplains in a way that will leave the new properties at risk. We are talking about areas that are currently protected, or that will be protected as part of development. There are ongoing local growth scheme investment programmes aimed at economic regeneration that involve flood protection as part of development. That money comes from a different source from flood defence grant in aid, allowing those communities to continue to grow and enabling us to see that investment. However, we want to ensure that we continue to invest in flood defences in order to keep people and communities safe. By using partnership funding, we can make that money go even further.
The hon. Gentleman sought to set out particular groups, saying that he felt that some might benefit more than others in the categories that he mentioned. I hear on a daily and weekly basis from hon. Members throughout the House on their concerns about areas in their constituencies. The pipeline of projects announced in December sets out for hon. Members a great deal of ambition on how we can protect their communities and keep them safer. It has been welcomed by local authorities and those communities, and they can now seek to put those funding packages together.
I was involved in a debate—not a debate, but a reflective piece—on a local radio station this week, looking back to the period we are considering today, considering what has changed since then and talking about how the partnership funding is coming together from the different local authorities in the area and the private sector to deliver a project. In that local community, they do not expect the Government to fund the whole project through grant aid. They understand the principle of partnership funding and they are participating in delivering that solution.
The point I am making is a good deal simpler than that, and it does not involve partnership funding. It is simply that the Committee on Climate Change says that 20,000 new properties are being built on flood plains each year, 4,000 of which are being built in areas of significant flood risk, and yet the long-term investment strategy that the Government have in place assumes that there will be no further building on flood plains. Why?
As always, I welcome the work of the Committee on Climate Change, but the basis upon which it has made its calculations is a 2009 report by the Environment Agency, which will be updated this year. We look forward to seeing what the Committee makes of the updated calculations, which reflect the position now. Our mapping and understanding of flood risk is improving and growing all the time.
I want to turn to the issue of response.
When one is dealing with a market such as insurance, there is a complicated picture. There are brokers that can help with those discussions, helping to find the right policy in those locations and working with those companies that are prepared to take account of mitigating factors. I hope that my hon. Friend agrees that that is an incentive for those companies; they will get that business. Also, Flood Re, by giving some confidence to insurers that the flood element of the policy can be supported and underwritten, will mean that those insurers can compete on the other aspects of the policy as well, and that will help a great deal in this situation. I very much welcome the support that we have had from across the House in moving towards the introduction of that policy.
I turn now to the issue of response. Following the events of last winter, action has been taken at all levels of Government to improve the country’s resilience and response capability. The floods highlighted the valuable contribution that our armed forces can make to the response to domestic emergencies. New arrangements have been put in place to strengthen military involvement in local emergency planning and preparedness, and to make it easier for responders to access support from the armed forces in an emergency if they need it. Perhaps the issue that my hon. Friend the Member for Somerton and Frome was pointing to in discussing local experience was about when the armed forces are called. Certainly, we made it absolutely clear from the centre that that resource was available. Perhaps the problem was about perception, not reality, and what the impact might be on a local situation if that support was called on. Ultimately, the armed forces were deployed and they made a real contribution, so we are just making it clear that as they are involved in the planning process, all those relationships are much clearer, and local communities can have confidence that if there is any need to draw down that support at an early stage, it is available.
Last winter also saw disruption to our transport, energy and water supply networks. Extensive work has taken place to make sure that we are better placed to deal with any similar events in future, with action being led by both the Government and service providers. I have already mentioned the work undertaken by the Environment Agency to improve engagement with local communities, but we have also been encouraging local authorities to plan for flood risk. Bringing all their activity together in a local flood risk management strategy is an important way for local authorities to communicate with and reassure local people that they are well prepared to respond to flooding, and we will continue to encourage action at the local level. We have resourced local authorities to bring together their local strategies, and I have taken the opportunity on a number of occasions to remind in writing those local authorities that perhaps have not quite gone through that process yet that it is important that they do so as soon as is possible.
Recovery from the flooding of last year has gone well and is continuing. The Government have committed more than £560 million in flood recovery support funding. We are currently reviewing the position with regards to recovery funding, identifying lessons learned from 2013-14 and considering how Government can be better prepared to provide support during a long-term recovery programme. My officials are working across Whitehall to consider new arrangements that will ensure that future recovery schemes will be part of a clear, co-ordinated, flexible package of support, which will be easily and readily accessible by people, businesses and places.
As lead Department for recovery, the Department for Communities and Local Government is also undertaking a review of the Bellwin scheme, which allows local authorities to reclaim emergency response costs incurred to protect lives and properties. A number of changes to the scheme have been considered in light of last winter’s experiences, and DCLG consulted on those late last year. That consultation closed on 1 January and DCLG will be announcing the next steps in due course.
As far as the Department for Environment, Food and Rural Affairs recovery schemes are concerned, so far around 4,200 applications have been received by local authorities for the repair and renew grant. Local authorities have approved RRG applications to the value of £8.7 million; that was one of the points that the hon. Member for Brent North was keen to have an update on.
We are aware that a number of local authorities have expressed concerns about meeting the 31 March 2015 deadline for RRG claims, and we are doing everything we can to resolve the situation and to provide some flexibility for them. As we speak, discussions are still ongoing about extending this deadline, and we expect to notify local authorities imminently. We are keen that as many eligible people as possible benefit from that grant. All applications for the farming recovery fund were processed last year, with a total value of £5.14 million.
I hope I have reassured hon. Members about the implementation of Flood Re and the question of flood insurance. I understand the aspiration across the House to explore how to make best use of revenue and capital funding to deliver better outcomes for communities, people and their property, and those discussions will continue. As the Chairman of the Select Committee pointed out, some of those questions will have to remain for the next spending review period, but as she rightly said, the Committee has put down a marker and I am certainly keen to explore ways in which we can respond. Important principles exist to ensure that we have capital invested in infrastructure and that we maintain those necessary fiscal controls on revenue spending; nevertheless, I understand the point the Committee made.
Reference was made to the importance of agricultural schemes. My hon. Friend the Member for Cleethorpes talked about support for partners coming together. That is a process to be led at local level—as he said, those partnerships are emerging—but I am happy to explore with him the support we might be able to offer and what the best approach might be.
Despite the exceptional weather experienced last winter, the impacts were significantly less than previous events of similar magnitude. For example, our existing flood defences protected some 1.4 million properties and more than 2,500 sq km of farmland from flooding. That reinforces the importance of continuing our investment in flood defence schemes and forecasting capability.
The hon. Member for Brent North talked about the Pitt review. Some of its recommendations are for Government, but others are for agencies and bodies such as local authorities. Some are ongoing—they are not the sort of thing we can just deliver on and then tick off; they have to be constantly examined and updated. However, the Government have moved forward on those recommendations. Had we been debating this subject at this point last year, the hon. Gentleman could rightly have raised the question of sustainable drainage systems, but we have now moved forward on SUDS, as he is aware, and we are working with our colleagues at DCLG on a regime to implement that scheme. That was therefore an important recommendation.
Some of the hon. Gentleman’s colleagues have raised in previous debates the question of the statutory responsibility for fire and rescue services, an issue of particular concern to them. The advice of the chief adviser at DCLG, which we have taken, is that the suggested approach is not appropriate. However, the Pitt review recommended that we consider that suggestion in detail, and we did.
It is good that there has been progress on some of the other 46 recommendations of the review that had not been addressed before. Will the Minister agree to report back on that progress? One problem with knowing what has been going on is that in 2012, the Government announced that they would not provide further updates on progress with the Pitt review. It would help if that progress report was updated.
Before he closes, will the Minister simply answer my question about the increase in the number of properties at significant and high risk? Does he think that the reduction of 5%, which the Government have talked about, in respect of the lowest-risk properties is a proper use of capital expenditure?
As I have sought to set out, our pipeline of projects, which is informed by calculations of the sort the hon. Gentleman mentions, will go a long way to helping communities, people and businesses around the country, and to meeting the demands and appropriate needs of local authorities, Members and individuals in their areas. I am happy, as always, to look at and review both the projects and the underlying assumptions.
We have also said that the pipeline gives an indication of which projects have met the test for funding so far. Some projects may change during the six-year period as other information emerges or local circumstances change, and as other sources of partnership funding come forward that people might want to integrate into such a scheme. Other projects that have not yet provided the level of detail needed to be in a scheme may move into that six-year programme. In setting out that programme, we have done more than any previous Government to give people confidence that we are serious about investing to keep them safe for the future.
Alongside that, we have one of the best forecasting and warning systems in the world and we are investing more in such computing power. Although we cannot control the weather and cannot stop flooding altogether, we are determined to reduce the risk further and to provide better protection for people’s homes and for farms and businesses across the country. We have acted on the lessons learned from last winter and have put in place numerous measures to improve response capability at all levels. With local partners at the helm of flood preparedness, coupled with the Government’s record level of investment in flood defences, we will be better equipped to deal with the risk of flooding this winter and beyond.
(9 years, 12 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to respond to the debate on behalf of Her Majesty’s official Opposition. I pay tribute to the Chair of the Select Committee, my hon. Friend the Member for Stoke-on-Trent North (Joan Walley), for all the work she has done on this issue, for her Committee’s excellent analysis and for her excellent presentation of it.
Simply put, the Government should not have a stand-alone policy on plastic bags. Reducing their use must be part of a coherent waste management strategy with a focus on preventing plastic from entering the waste stream and reducing litter. There should be no disagreement on that in the House, but, of course, one of the Minister’s first acts on entering the Department was to announce in his infamous letter that there would be an abandonment of waste management by Government.
The hon. Gentleman and I served on the Environment, Food and Rural Affairs Committee together, and we discussed these matters informally and formally. However, I ask him to refer to what I actually said in my letter, which is that there are some areas of policy that have been taken forward, and it will now be up to industry and wider society to respond, and others that we will continue to conduct research on and get behind. To say that my letter said we were abandoning waste policy is not an entirely fair characterisation.
The Minister pleads in his own defence, and I will let the industry judge for itself, but the industry has been clear that it was deeply unhelpful of the Department to announce that the Government no longer saw fit to take part in some aspects of waste management and that it was down to the industry just to get on with things.
The rationale behind the Government’s position was that they should not intervene in areas where there was no market failure. The problem, however, is that I happen to believe that 2,309 items of plastic per kilometre on UK beaches constitute market failure. The remarks of the hon. Member for Truro and Falmouth (Sarah Newton) about the levels of plastic litter experienced around the UK coastline bear witness to that. They are disgusting, but they are also a warning about the level of plastic that has not washed up on our beaches and that is still floating out at sea. The Government have just not thought through waste management in this respect. If they had, they would have listened to the industry and delivered a workable policy programme. They have not done that.
What percentage reduction in plastic bag use do the Government expect will be achieved as a result of their policy by 2020? Will it be as much as in Wales, where there is a simple charging system without all the loopholes and caveats the Government have added?
When does the Minister think that a biodegradable plastic bag will fulfil the criteria for exemption from the single-use plastic bag charging policy? My hon. Friend made an incontrovertible and admirable point: where else in Government policy does one create in law an exemption for something that does not exist? It really beggars belief.
The Committee’s report stated:
“The policy around the exemption for biodegradable bags appears rushed and taken before reviewing existing evidence or considering the concerns of all stakeholders.”
If I may say so, I think my hon. Friend’s Committee let the Government off lightly by putting it so delicately.
The report continues:
“It appears to us that Defra is trying to use innovation to justify a rushed and flawed policy proposal to allow an exemption for biodegradable bags.”
The question we must ask is why. Can the Minister give a reasoned explanation— because there is certainly not one in the Government’s response to the Environmental Audit Committee’s report—of why the Department has gone into such contortions to do that? The waste management industry and environmental scientists are clear about the fact that the exemption is absurd. The British Plastics Federation has made it clear that DEFRA made the decision on the exemption before consulting manufacturers. British Polythene Industries opposed the exemption and stated that it would increase the use of plastic bags and undermine recycling targets. What progress has been made as part of the small business research initiative on biodegradable bags?
Objections to the policy on environmental grounds have been as emphatic as the industry’s. A professor of marine biology and adviser to DEFRA told the Environmental Audit Committee that he was surprised by the proposals to exempt biodegradable bags. His research found that approximately 98% of plastics, including so-called biodegradable plastics, remained after 40 weeks, in part because of a lack of light reaching the bags under water. There is no such thing as a biodegradable plastic bag; the plastic just degrades into smaller pieces that are more easily ingested by marine life. That means that they are more easily able to contaminate and pollute the marine environment.
Quantities of litter on UK beaches have more than doubled since 1994, according to the Marine Conservation Society’s Beachwatch survey, which is the source for the figure of 2,309 items per kilometre found in 2013. Last year English beaches had, on average, 45 plastic bags per kilometre, an increase of just over 20% since 1996. Let us consider the impact of that on wildlife. The northern fulmar does not regurgitate plastic, but accumulates it in its stomach. Data collected between 2007 and 2011 show that 95% of fulmars in the North sea had plastic in their stomach—62% exceeding legal limits.
The Government’s response to the Committee’s report states:
“Several key impacts of the policy (e.g. reduced disamenity impact of litter; reduced damage to marine life) are difficult to measure in quantitative and monetary terms.”
Indeed they are, but that does not mean they are not real. They are what classical economics regards as externalities, and, as so often with the present Government, externalities are ascribed a nil value. That is the problem. The Government have chosen to discount the importance of litter and, significantly, of damage to marine life, because it is too difficult to work out what those things cost. That is the wrong approach. Litter ruins neighbourhoods; plastic waste damages entire marine ecosystems.
The waste management industry, perhaps more than any other, can produce growth that increases the productivity of our economy and creates new, skilled jobs. The job creation rate for recycling and reprocessing is significantly higher than that for landfill. It has been estimated that one job in landfill is created for every 50,000 tonnes of waste. By contrast, SITA estimates that job creation per 1,000 tonnes of waste for recycling ranges from 0.75 to as many as 40 jobs, depending on the material. That is between 38 and 2,000 jobs for every 50,000 tonnes of waste. That is the industry on its own, making an immensely valuable contribution to jobs and growth; but it is even more important as a driver of the wider economy.
Some organisations have taken that on. I have met some of them and they have given evidence to the Committee. Other organisations, such as the Federation of Small Businesses, have taken a different position. It is important to look at the implementation of the charge. The huge majority of the bags will be distributed by retailers who will be covered by the charge. We can continue to examine how the exemption operates post-implementation. The smaller retailers who want to make a charge can do so. They are exempt from the compulsion to do so and the reporting of that, which will be an obligation on those who are covered by the charge.
If small retailers charge 5p for a bag but are exempt, that will presumably constitute part of their revenue stream and they will have to declare VAT on that element of their income, whereas those who are not exempt will be exempt from declaring VAT. The exemptions are working directly counter to each other. Is that correct?
I have been having discussions with some of the organisations representing smaller retailers. Some small businesses have already chosen to introduce a charge voluntarily in local areas. That is a decision for them. We are talking about the difference between compulsion and an option to do so. When smaller retailers have chosen to introduce a charge voluntarily or as part of their business model, and to use the money for good causes, which is what we are expecting larger retailers to do, that will be a matter for them to decide. I want to talk about how we expect that money to be used because that is important and there have been discussions about that outwith this place.
As in Wales and Scotland, we hope and expect that retailers will give the proceeds of the charge to good causes. The Climate Change Act 2008 does not give the Government the power to determine what retailers do with the proceeds of the charge. We will require retailers to report to the Government the number of bags they give out, the amount raised by the charge and what they do with the proceeds. We will then make that information public. We expect that pressure from customers will ensure that the net proceeds, when reasonable costs have been deducted, will go to good causes. Many large retailers have already stated that they will give the proceeds to charities and publish details on their websites.
Given that retailers will be obliged to publish how many bags they have given out and how they have given the money from those bags to charitable causes, is it correct that it will be simple for anyone to calculate how much VAT will be related to the income derived from those bags? It will be a straight 20% to the Government, so why in paragraph 27 of their response to the Committee do they say that that will be a large additional burden on business?
Just for clarification, when the hon. Gentleman says burden on business, is he talking about small businesses that we are exempting from the charge?
I am referring to paragraph 27, which states:
“Requiring businesses to report specifically on the VAT on plastic bags would also introduce additional administrative burden for those firms involved.”
For that reason, the Government did not propose to follow the Committee’s recommendation to report on the VAT and to hypothecate that for the monitoring and effectiveness of the scheme. The excuse given by the Government for not doing so is that it would pose an additional burden on business, but the Minister has just told us that the business will have to report on the number of bags sold and the proceeds of that charge. Given that all one has to do is divide the proceeds of the charge by five, how is it that the Government use the excuse of that being an additional burden on business to avoid the Committee’s conclusions? It is simply a case of dividing by five the burden that has already been placed on them to report on the proceeds.
The reporting system will require retailers to report on the VAT that is paid. I understand the hon. Gentleman’s points, but I was covering the importance of where the money goes and our ability to state our expectations of that. As the Chair of Committee said in her opening remarks, the provisions that allow us to do that without requiring primary legislation are in the Act. That is the area in which we work.
With regard to the regulations on the scheme and the explanation of how the scheme will operate, we will be tabling the regulations in December. One of the hon. Lady’s other questions was about the timetable for implementation. It is still our intention to table the regulations by the end of this year and to have the charge come into operation in October next year. That timetable still remains and, obviously, we will have the opportunity to explore the operation of the system in Committee. Should the hon. Lady be a member of that Committee, we could debate any further questions she has, but the reporting of how that money is to be spent will come to the Government, because retailers will have to do it and make it public. I would be very surprised if companies that were taking the charge in and giving it to good causes did not wish to demonstrate clearly to their customers the purpose to which the money was being put. It would be rather strange for them to give money to good causes—I am sure many of those companies are altruistic—and not tell the public about the good causes to which they are giving money. We have seen other schemes in supermarkets in which, as part of their corporate-social responsibility, they demonstrate how they are supporting community activities in the local area.
I would like to make a little progress, if I may.
It is not only charities that stand to gain from the charge, because when littered, carrier bags cost all of us. They cost taxpayers in England around £10 million every year in clean-up costs. The hon. Gentleman and the hon. Lady mentioned biodegradability—my hon. Friend the Member for Truro and Falmouth, who is concerned about the marine environment, also mentioned it. The Government’s position is that there will always be a need for some plastic bags. People may forget their reusable bags or they may require a new bag to avoid contamination if they are buying raw meat. At the same time, we should aim to reduce the visual impact and the harm to wildlife if those bags go on to be littered. A bag that biodegrades into harmless products is clearly more desirable. That is why we are working with industry and academic experts to review existing standards and to set a suitably robust standard for biodegradable bags. Bags that meet that standard will be exempt from the charge.
Hon. Members have referred to bags that are already on the market and the challenges we face. Bags biodegrade in different circumstances in different environments. Those circumstances include hedgerows in the countryside and the marine environment, which we have talked about. We will need to be satisfied that there is a product that is biodegradable in the multiple circumstances in which it may be littered or find itself disposed of.
The Minister is being very generous giving way—I do like him so much and I find it difficult to be quite so difficult with him. He is absolutely right that, depending on the light available, plastics will degrade in differential ways, but standards could be set to allow bags to be used in different circumstances and different contexts. Is he seriously saying that, if someone lives or does their shopping within a mile of the seaside, they will not be able to get hold of a particular plastic bag, whereas if someone lives in Birmingham, that bag might be available to them? Context-specific measures cannot be applied in legislation in that way. We require a bag that does not just break down into small particles, because those small particles are ingested by birds, as well as fish and other marine organisms, and that is a key problem. Unless he can come up with an answer to that critical point, the exemption for supposedly biodegradable bags really does not wash.
I understand the hon. Gentleman’s point. He is absolutely right that it would be wrong to have different types of bag that biodegrade in different circumstances and then allow them to be sold in particular places—we are absolutely not doing that. We are talking about a product that meets a standard that covers that range of circumstances. That is the super-biodegradability aspiration.
Obviously, as I said, the hon. Lady will be able to study the detail of the regulation when it is tabled. The intention behind signalling the desirability of a product that meets the criteria is that that is an important and perfectly reasonable thing to do to stimulate investment in innovation. The hon. Member for Brent North has pointed out that we have studies under way, as is referred to in our response, first, on materials, and secondly on processes for reprocessing bags, to satisfy concerns in that regard. We have had the initial work back. We will review it and consider whether we want to take anything further forward.
I want to make some progress and come to some of the other issues raised in the debate.
The Chair of the Committee was right to point out that, along with such a product, we need a standard to measure it and ensure that it is suitable. However, we would not be doing this at all if we were signalling that in no circumstances would such a product ever be exempt. The whole point of extending that possibility is to stimulate the discussion and innovation. That is the reason behind that aspect of the policy.
The hon. Lady also referred, as did her Committee, to paper bags. We are focusing the charge on plastic bags as part of a targeted and proportionate approach. Plastic carrier bags take the longest to degrade in the natural environment, can harm wildlife, as hon. Members pointed out, and are extremely visible in the environment because they take so long to degrade. Paper bags make up less than 0.1% of the bags distributed in the UK by the seven major supermarkets and can also biodegrade naturally in the open air. Of course, paper bags should still be reused a number of times before being recycled and should never be littered. We have analysed their life cycle—this addresses the carbon problem that the Chair of the Committee was keen to point out—but, because they make up such a small part of the overall number of bags used, we do not think that that will be significant, although they do have a part to play, for the reasons I have set out.
The assumption, from what the hon. Lady is saying, is that there might be a massive switch to paper bags and that therefore some of the littering issues and so on might continue even if biodegradability and the use of oil and so on—separate questions—are taken aside. I suggest that retailers, who are used to other forms of the policy in the Welsh jurisdiction, will make the charge part of the operation of their businesses. That was another of her questions—she mentioned working with retailers. We have had regular meetings with the British Retail Consortium and others. The fact that a system has been introduced in other jurisdictions means—the vast majority of those businesses operate across those boundaries—that retailers understand how such a system can work and will be prepared for it.
The hon. Lady mentioned the European Union. We are very pleased that the European Union has reached agreement on a robust plan for tackling the blight of plastic bag pollution, but with each member state doing what works best in its own circumstances. The negotiating position adopted by the United Kingdom Government was to safeguard that flexibility, so that member states can take systems forward in the way that is most suitable in their jurisdiction. That was at the heart of what we were trying to do.
Will the Minister assure the House that, when the Government said, quite properly, that they were going to pursue a charge on plastic bags, a company did not come to them and say, “Hold on a second. We think that we have a product that’s going to be developed that will go a substantial way towards meeting some of the problems with plastic bags, so can you tailor-make an exemption for us”? I ask that because it would be deeply concerning if there were any suggestion that the Government were passing legislation simply to facilitate a company bringing a product to market in that way. It would be good for the Minister to clear the air and say that that is definitely not the case.
As the hon. Gentleman may well be aware, the European Commission is committed to further research on oxo-biodegradable bags, and we will always use robust scientific evidence to inform our decisions. As I set out in our discussion about how things biodegrade in different environments, whether the marine environment or another environment, and the standards that we are seeking to set for our domestic policy, we are very clear that we would have a high barrier for any product to overcome to satisfy the exemption. This is not about taking one technology and saying, “We think that’s fine. We’ll make an exemption for it.” It is about saying, “We want a new sort of product that will overcome a high barrier.”
I want to give the Minister the opportunity to deny categorically that, when the policy against plastic bags was being put forward, a specific company came to the Government and lobbied and got the exemption put into the legislation. I understand what he is saying about standards and the benchmark—when standards are in place, they apply to everyone—but it is really important that the Minister stands up in the House and says, “No. The exemptions that we have put into this legislation are not a result of lobbying by a specific company that came to us once this process was under way.”
The hon. Gentleman has been a Minister, so he knows that decisions that are taken are subject to a process of discussion across Government, across all Departments. I can certainly say that the policy that we have taken forward is not to suit any particular company or any particular technology. It is to meet the obligation to improve environmental outcomes and to deal with the issues of litter, and to generate an income stream for good causes, which we have discussed. That is the focus of the policy.
In concluding my remarks, I thank hon. Members for their close interest in the policy.
(10 years ago)
Commons ChamberI am happy to discuss with my hon. Friend any specific issues he has on behalf of his constituency. The statement of principles, which exists with the insurance industry, is still in operation up until the implementation of Flood Re. We of course have regular discussions with the industry to ensure that people are being offered the flood insurance they need.
The answer to the question from my hon. Friend the Member for Kingston upon Hull North (Diana Johnson), which the Minister failed to give, is £403,000 out of the £10 million that the Government promised—less than 5%. That applied at the beginning of the summer recess. Tomorrow is 31 October, the day on which the Government promised that all the 890 flood defences damaged last year and in need of urgent repair would have that work completed. Will the Minister assure us that the 49% of those repairs that had not been completed by last month will be finished by tomorrow, as promised? The people at risk from those 437 unfinished schemes would really like to know.
The hon. Gentleman will no doubt be aware that work has continued since that reference point in September. The vast majority of those schemes will be completed by the end of the month, and temporary defences are in place to protect any communities where the work is still ongoing into November. The vast majority will be completed by the end of this month.
(10 years, 5 months ago)
Commons ChamberI will meet Cornwall council tomorrow and we can discuss those issues. I do not know whether my hon. Friend or a member of her staff will be there, but I will be happy to raise any local issues with the council so that we can work through them.
In February, the Prime Minister promised that “money is no object” in the Government’s response to the winter floods. Four months on, only £530,000 has been paid to farmers out of the supposed £10 million available in the farming recovery fund, and only £2,320 has been paid to fishermen out of the supposed £74,000 approved under the support for fishermen fund. Why is that much needed support not getting to the people it is supposed to be helping?
I reassure the hon. Gentleman that there is nothing “supposed” about those totals, and the money is there for people to bid for—the key question is encouraging people to do so. My hon. Friends and I, as well as agricultural shows, for example, continue to emphasise that people should apply for that money, and we have simplified the system. Many applications are currently being processed, and I encourage all people eligible for those funds—whether farming, fishing or the other funds I have set out—to apply and make use of that money.
(10 years, 8 months ago)
Commons ChamberI am under pressure of time, so I will proceed.
Let us be clear: the Government need to do two things. They need to construct more flood defences that will bring more homes and properties into a lower risk of flooding, but they also need to maintain those new and existing flood defences in proper condition so that they continue to provide protection. Unhelpfully, the Government chose to categorise all major maintenance or repair work to existing flood defences as capital spend. Uniquely in the debate so far, the hon. Member for Thirsk and Malton alluded to that point.
I want to make two points in that connection. First, it is not sensible to increase the new build flood defences without a corresponding increase in the budget for major repairs. In the interests of transparency, the Government need to disaggregate the element of their capital spend budget that is for new defences and the part that is for the major repair and maintenance of assets. Secondly, as the Government have used the capital spend as a proxy for spending on flood defences, they might confuse people who think that they are building more defences when, in fact, because of climate change and storm damage, they are simply spending more on major repairs to existing defences. In other words, there may be no increase in the number of defences or, indeed, the number of properties and homes defended, just an ever-increasing capital repair bill to maintain them. The hon. Member for Brighton, Pavilion made that point earlier.
It is therefore important that we examine the fine detail of the EA’s budget in this respect. In a policy note of 21 January, the adaptation sub-committee of the Committee on Climate Change did precisely that. All its figures are based on real terms, according to 2010 prices. The capital is lower in every year of this Government than when they started with £360 million in 2010-11. The figure falls to £261 million in 2011-12 and to £269 million in 2012-13, before rising slightly to £294 million in 2013-14, and finally, at £344 million, falling £16 million short of where it started in 2014-15. As my hon. Friend the Member for Garston and Halewood (Maria Eagle) noted in her speech to the House last week, those spreadsheet figures translate into real projects. The loss of £274 million has resulted in 290 shovel-ready projects being cancelled and 996 being delayed.
I am quite happy to respond to the hon. Gentleman on the generalities when I come to make my main remarks, but the specific number of schemes that he is referring to, which has been mentioned in, for example, articles in The Guardian newspaper, relate to medium-term projects that were in no way shovel-ready. They are schemes that are in the pipeline and that are being assessed. They are projects that will come forward for delivery when they are assessed as being at the stage when that can happen. That is not the same as saying that they are shovel-ready.
I am sorry; the Minister is wrong on that point. The 290 projects that I referred to are those that were shovel-ready and scheduled within that four-year period; the 996 projects are the ones that were not. Significantly, 13 of those schemes were in the north-east Thames valley, where more than 350 homes have been flooded, and 67 of them were in the south-west, where 100 homes have been flooded.
My right hon. Friend the Leader of the Opposition made the further point at Prime Minister’s questions that the EA is planning to make 550 flood defence posts redundant. I specifically questioned the Minister in the Westminster Hall debate last week on whether those redundancies will go ahead. He was pressed for time in his summing up and was unable to explain how he considered that the EA could give people the sort of assistance that we have seen over the past two months and to which many hon. Members have paid tribute this afternoon, and I join them in doing so. How will the EA do that with 550 fewer staff? Today, I ask him to tell the House what roles the people in those posts currently perform. Are some of them the people who actually manage the flows of water in the waterways, by monitoring and operating the sluice gates, the weirs, the locks and the pumps? Do they include the people who survey and assess the condition of flood defences. Do they include the people who prepare the maintenance schedules for those defences? Do they include any of the people who have been helped with the clear-up operations? What is of enormous concern is that those skills and expertise might be lost with these redundancies, with the corresponding loss of service and safety to the public in the future.
(10 years, 9 months ago)
Commons ChamberThe hon. Lady will be aware that colleagues in the Wales Office and the Treasury will lead on how the Barnett formula operates, but if she would like to write to me or other Ministers with specific questions, I am sure we will get back to her.
Does the Minister accept his Department’s climate change risk assessment that up to 1 million more properties, including 825,000 homes, are likely to be at risk of flooding by 2020? If he does, why is funding for flood protection £63.5 million less in the current year than in 2010, even after last week’s budget changes? What is the implication for the Government’s Flood Re insurance scheme, which the Committee on Climate Change has warned him does not factor in the impact of climate change at all?
The view of Lord Krebs’s sub-committee on Flood Re is being debated in another place. I have been ensuring that, as Flood Re goes forward, it takes account of extreme weather events and factors involving climate change. As I have set out, the Government will be investing more in flood defences than any previous Government, given our spending review deal on capital investment. In the first four years of this Parliament, we have spent more on flood defences than the previous Government did in their last four years in office.