Water Industry (Financial Assistance) Bill

Ben Bradshaw Excerpts

Wednesday 29th February 2012 Commons Chamber

[Dame Joan Ruddock (Lewisham, Deptford) (Lab)]

May I start by apologising to the House? I have an urgent constituency engagement and will have to leave before we conclude the debate.

Let me say at the outset that my constituents and I support the construction of the Thames tunnel. There is no doubt that we cannot continue to discharge raw sewage into the Thames. Much as I would like to debate many of the wider issues, I am essentially here to make a statement on behalf of my constituents, because Thames Water has a proposal to intercept the Deptford storm relief sewer that runs through Deptford discharging north into the Thames.

The site selected by Thames Water is a triangle of green, open space—the Crossfield amenity green, which is bounded by Coffey street, Crossfield street and Deptford Church street. For those who do not know it, Deptford Church street is a major dual carriageway intersecting the Crossfield residential housing estate. Thames Water proposes at least four years’ work on the site, the permanent legacy of which will be four main ventilation columns at least 6 metres high, with associated control units and maintenance requirements. During the phase one consultation, the preferred site was Borthwick wharf foreshore, but for the phase two consultation Deptford Church street is the preferred site and the Borthwick wharf foreshore is put forward, together with the Sue Godfrey nature reserve in Bronze street, as an alternative.

We in Deptford cannot understand Thames Water’s change of plans, which will have a great impact on an exceptional area of my constituency. The phase two consultation site information paper identifies three reasons why Deptford Church street is now preferred. The reasons given are, first, that Deptford Church street has relatively good access compared to Borthwick wharf foreshore; secondly, that using Deptford Church street would avoid work to the Thames foreshore; and, thirdly that the potential effects on residents, visitors and business amenity would be less than with the alternative site.

On access, no traffic impact assessment is provided to enable comparison between the two sites, so how can we judge? On avoiding work on the foreshore, there is a particular paradox. The majority of the site selection assessments favour sites in close proximity to the river, with jetty or wharf facilities. Clearly, the Borthwick wharf foreshore would have a great advantage over Deptford High street, in that material and spoil could be delivered and removed using the River Thames. Furthermore, the alternative site is located at the point at which the combined sewer overflows are discharged into the River Thames. Intercepting the sewer at that point would capture the contents of the entire length of the sewer. Intercepting it further inland, at Deptford Church street, would leave a length of the sewer uncaptured.

Thames Water has provided no data on the number of people, households and businesses affected at both sites, so it is impossible to compare the sites. In addition, the impact on St Joseph’s Catholic primary school on Deptford Church street is direct and severe when compared to any comparable community impact resulting from the use of the Borthwick wharf foreshore. A number of businesses will be directly affected by the use of Deptford Church street, while Borthwick wharf and the adjacent Payne’s wharf are both vacant.

Let me turn to the issues specific to the Deptford site chosen by Thames Water. There are two primary schools close to the proposed site: St Joseph’s Catholic primary school is opposite the site, and the new Tidemill academy is close by. As I say, the proposed works will take at least four and a half years, which represents most of the period of primary school attendance. That area of Deptford appears in the top 10% of areas in the country in the index of deprivation, making primary education of paramount importance. Both indoor and outdoor learning will be impacted by noise and air pollution.

Fire evacuation for St Joseph’s during the period is of concern. The school requires an off-site space near the school for 260-plus children and 25-plus staff, and they need to reach it quickly and safely. The site currently used is the green space that Thames Water proposes using for its shaft and associated construction works. No impact assessment on the school and its fire regulations has been offered.

Sited alongside the green is the grade-I listed St Paul’s church, the single most significant listed building in Lewisham. The proposed shaft and associated building works directly affect the setting and structure of the church, the boundary wall to the church cemetery, which is listed in its own right, and the grade-II listed railway viaduct to the south. It is therefore not surprising that English Heritage has expressed a preference for the alternative site to the Deptford Church street site, as there would then be less impact on heritage assets in our area.

The effects of the disruption to traffic patterns would be numerous, and the disruption would cause congestion and danger. The proposal involves closing the two northbound lanes of Deptford Church street; the two southbound lanes would provide one lane in each direction. Again, no detailed traffic modelling has been provided. There could even be emergency vehicle access restrictions associated with the traffic management measures along the proposed construction vehicle routes. Bus lanes in both north and southbound directions would be temporarily suspended, yet the width of the southbound carriageway is insufficient to accommodate heavy goods vehicles and buses in a two-way traffic scheme, particularly as Deptford Church street is on the borough’s oversized vehicle route.

There can be no doubt that the proposed works will impact on existing businesses along Crossfield street, particularly given that access, both vehicle and pedestrian, could be disrupted and restricted. The construction vehicle movements would have a highway safety impact in Coffey street, particularly for those accessing St Paul’s church, and when the movements coincide with St Joseph’s school’s arrival and departure times. Narrowing Crossfield street would have an impact on the commercial units on Crossfield street, particularly in relation to deliveries and servicing. A further raft of transport concerns have been raised by Lewisham council in its formal objections to Thames Water, but they are too numerous for me to go into now.

[Mr Ben Bradshaw (Exeter) (Lab)]

Hear, hear.

[Dame Joan Ruddock]

I am most grateful to my right hon. Friend for that intervention. I will now slow down, as I know that he is desperate to be able to speak in the debate.

Overlying all the concerns that I have outlined is an aspect of Deptford that has been completely neglected. Planning consents have already been given for the construction of thousands of new homes in the immediate vicinity of the Deptford Church street site. Work is already under way and the nearby Convoys site, which has a footfall—this is quite amazing—equivalent to the whole of the south bank, is expected to be redeveloped over precisely the same period as the Thames tunnel. This is a prescription for chaos. It is particularly unfortunate because Deptford has enjoyed a prolonged period of regeneration led by Lewisham council, financially underpinned by the Labour Government and supported by a number of private sector partnerships.

Lewisham is the 12th most densely populated local authority in the UK, and my constituency the most dense of all. As a consequence, every small piece of open space is greatly valued and provides essential green lungs for the city. The Crossfield amenity green will be made unavailable and inaccessible for at least four years in an area of very limited open space.

Lewisham borough’s core strategy emphasises the importance of improving connectivity throughout the area for pedestrians and cyclists. The recently completed links project from Deptford high street through to Margaret McMillan park, as well as the work on Giffin square, the Deptford Lounge, Tidemill academy and Wavelengths, demonstrate the implementation of the council’s strategic aspirations for the area.

The completion of the Thames tunnel site works is not expected until 2021, resulting in an unacceptable delay to the delivery of the council’s strategic objectives for links to and connections through the area. Furthermore, Deptford high street is classified as a site of nature conservation importance in the adopted unitary development plan. If the borough were the local planning authority for this application, it would either refuse permission that had adverse impacts on nature conservation or, if development were considered essential, it would require an environmental appraisal that included methods of mitigation and proposals for compensation.

I appreciate the need for the Thames tunnel, so I would not be objecting to this site if I thought this was a case of simple nimbyism. It is not. There is so much at stake that we have to make the loudest and clearest objections on the grounds that I have outlined. Already 1,300 people, in an area where there is not a great deal of activism, have signed a petition opposing the use of the Crossfields amenity green. I support the measures in the Bill that will enable Thames Water to undertake a much needed improvement on behalf of all Londoners, but I| believe that it can provide the necessary shafts elsewhere with less damage than that which would result in my constituency. My plea to Thames Water is, in the words of the local campaign, “Don’t dump on Deptford.”

--- Later in debate ---

[Mr Ben Bradshaw (Exeter) (Lab)]

I wholeheartedly associate myself with the final comments of the hon. Member for Hendon (Mr Offord).

I welcome the Bill, and I thank the Minister and the Secretary of State for introducing it. As my hon. Friend the shadow Secretary of State said, it goes a small way towards righting the terrible injustice that was done as a result of how the water industry was privatised, particularly in the south-west, in 1989.

As other Members have said, other people deserve credit, too. I thank the excellent public servant Anna Walker, whose year-long review in 2008-09 made recommendations, some of which the Government are now implementing. I also thank my right hon. Friend the Member for Leeds Central (Hilary Benn), who was the Secretary of State who commissioned the Walker review.

I also thank somebody else who has been named by a number of Members today—my colleague the former Member for Plymouth Sutton, Linda Gilroy. Linda worked tirelessly as a leading member of the all-party water group during her 13 years in this place. She was like a terrier with a bone on the issue—I remember seeing two Prime Ministers and several other Ministers scurrying away from her whenever they saw her approaching them in the Division Lobby, because they knew she would pin them against the wall to talk about water prices. She brought not just great persistence but huge expertise to the subject, and she helped to change minds. It is no exaggeration to say that without Linda Gilroy’s contribution, the Walker review would never have happened. We might have got there in the end, but we would have been much less far down the road. It is gratifying that Members in all parts of the House have paid tribute to her, because she is no longer in this place to smile on her legacy.

I would be grateful if the Minister could answer a couple of questions. What will happen at the end of the next comprehensive spending review period? Will further legislation be needed if the £50 rebate is to be extended beyond the next CSR period; and if so, how will the legislative mechanism be put in place to do that? Given that when the Labour Government considered this issue in the past there was a problem with European state aid rules, is he satisfied that there will not be such a problem with what the Government are doing?

Why are the Government implementing only part of the Walker review? Will the Minister assure us that the other bits will be implemented when the Government bring an all-singing, all-dancing water Bill to this House? I am a little disappointed that we will apparently not get such a Bill in the forthcoming Queen’s Speech, but I hope that we will during this Parliament. That is absolutely vital because, as the hon. Member for St Ives (Andrew George) said very clearly and convincingly, there is a desperate need for root-and-branch reform of the water industry.

The £50 cut in bills in the south-west is extremely welcome, but our bills will still be the highest in the country, and the cut will already have been wiped out by the time we get it owing to the increases in the current and forthcoming financial years, with a 5.7% increase in April.

[Anne Marie Morris (Newton Abbot) (Con)]

Does the right hon. Gentleman agree that despite the fact that the £50 cut will be impacted by high inflationary rises, those rises apply across the country, so one cannot say that we are worse off in the south-west, because we are still better off by that £50?

[Mr Bradshaw]

That is absolutely right. I am afraid that water customers across the country are paying the price for this Government losing control of inflation. The reason we are all facing these massive increases in the current financial year and the next is that inflation is out of control. We in the south-west are suffering like everybody else. However welcome the £50 cut is, it will already have been wiped out by the time we get it. People will not notice it because their bills will be no lower than they were before, as a result of the two years of increases that they will suffer this year and the next.

We must stop the culture of annual increases, and I hope that the Government will do that when they bring forward their full water Bill. The hon. Member for St Ives is absolutely right about this. We always talk about the water industry as though it were the same as the gas industry, the electricity industry and the other privatised utilities, but it is not—it is a monopoly private provider. Customers in the south-west cannot choose where they get their water from. Admittedly there is also a problem in the energy industry, but people do have a limited choice of provider for their gas and electricity.

The other reason it is completely wrong to put water in the same category as the other privatised utilities is that water is plentiful. We live in a wet country; it rains. If it stops raining, we might as well all pack up go home, but that is not going to happen—we hope. Water is not like gas, electricity or oil, where the resources are finite. The Government must challenge the assumption that water prices should always rise. Given the advances in modern technology, there are strong arguments for water bills coming down rather than going up. I ask the Minister to look carefully at the structure of the industry and the strength of the regulator. For the reasons that the hon. Member for St Ives and I have mentioned, there is a very good argument for the water regulator being much stronger than the regulators of the other privatised utilities.

The Prime Minister is fond of making speeches about crony capitalism; well, he can show us his mettle by dealing with an industry that is a private monopoly where customers have no choice. The industry has its hands round their necks, they cannot go anywhere else, they are fed up, and they do not understand the inevitability of year-on-year increases.

Of course we have to improve our outdated infrastructure, and a lot of work has been done on that. However, when I hear industry spokespeople and Ministers saying that we are about to face a terrible drought, worse than that in 1976, I wonder why the industry and the Government have not looked more carefully at the idea of water trading, which I think has been mentioned by a Government Member. Why do we not pipe water from the Severn catchment area, where it is plentiful, to the Thames catchment area? That could be done quite cheaply. It is not hugely expensive or terrible for climate change, as the Secretary of State said in her opening remarks. A similar thing could be done across the country. My right hon. Friend the Member for Holborn and St Pancras (Frank Dobson) mentioned reservoir capacity.

There is no reason why in this country, which has a cool, temperate climate with plenty of rain, we should pay such high prices for our water. We should not accept inexorable rises year on year, particularly when families are feeling the pinch. I share the admiration of the hon. Member for St Ives for the current management of South West Water. However, in the increases that that company and the rest of the industry have asked for in this financial year and the next, they have not shown the sensitivity that they might have shown to the state of household finances.

[Richard Benyon]

I urge the right hon. Gentleman to read our water White Paper, which addressed many of the points that he is making. It was long overdue in doing so. It is important that water companies talk to each other about bulk trading, moving water and the connectivity between water company areas. That is precisely what the White Paper sought to achieve. It addressed a long-standing problem.

[Mr Bradshaw]

I look forward to the recommendations in the White Paper being implemented in legislation. I hope that that will happen in the next Session and that we will not have to wait another year or more, but there is talk of the legislative process being clogged up by House of Lords reform. We need this legislation as soon as possible to address the problem once and for all.

I will end my remarks on this point. The Bill is a welcome development, as far as it goes. Of course the £50 cut is welcome, regardless of the fact that it will be wiped out by the big increases in water bills this year and next. However, it is only a temporary solution to the problem in the south-west and nationally. Although it will assuage the public anger in the south-west over the cost of water bills temporarily, if those bill continue to go up every year, this bit of help will be but a distant memory in a few years’ time. I address my final remark as much to those on the Opposition Front Bench as to the Government. Whoever is in power has to grasp this nettle once and for all and reform this industry properly, so that it operates for the benefit of the consumer and the customer.