Oral Answers to Questions
Dan Rogerson Excerpts(10 years, 4 months ago)
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Sir Tony Baldry (Banbury) (Con)
1. What steps he is taking to safeguard trees from the threat of disease.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
We have made rapid progress towards implementing three of the independent taskforce’s recommendations: we have produced a prioritised plant health risk register, undertaken work on contingency planning and initiated recruitment of a senior chief plant health officer. We have accepted the remaining taskforce recommendations, and we are working with stakeholders to develop a new plant health strategy, to be published this spring, which will set out a new approach to biosecurity for our plants.
Sir Tony Baldry
Is my hon. Friend satisfied that sufficient attention is being given to import checks? Are we doing sufficient to help other countries manage the risks of pests and diseases that may be transferred in plants and woods exported to the UK, and how are we agreeing priorities for action?
Dan Rogerson
I thank my right hon. Friend for his question. We have introduced further restrictions on, for example, the import of sweet chestnut and plane trees before the 2013-14 planting season. Our negotiators are successfully influencing the review of the EU plant health regime, which will maintain strict controls and simplify the broad range of legislation.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister will know that this year is the 150th anniversary of the death of one of our greatest poets of the countryside, John Clare. He wrote a great deal about diseased trees—there was a plague of oak disease in his lifetime—and he was certainly a great defender of the English countryside. What does the Minister think John Clare would have thought of giving up our ancient woodland and replacing it with new growth?
Dan Rogerson
I thank the hon. Gentleman for bringing a cultural dimension to our proceedings so early this morning. I share his concern, and that of John Clare, for ancient woodland, and that is why the guidance is very clear. In any discussions about development, the guidance we offer to all local authorities is very clear that ancient woodland should be protected.
Mr Speaker
Not for nothing is the hon. Gentleman known as culture vulture Sheerman.
Mr Philip Hollobone (Kettering) (Con)
Which tree species does the Minister regard as most at risk from disease?
Dan Rogerson
There are a number of threats, as my hon. Friend will know. We are of course concerned about ash, although ash dieback is a disease that takes several years to progress, and we are obviously concerned about larch as well. Across the range of species, we maintain under review all potential threats that are not yet in this country.
Kerry McCarthy (Bristol East) (Lab)
I want to press the Minister on the issue of protecting our ancient woodlands. Today’s written ministerial statement talks about planting lots of new trees, but does he accept that that is no replacement for the destruction of ancient trees? The quantity of new trees will not be a substitute for the diversity and quality of such woodland.
Dan Rogerson
The hon. Lady is absolutely right to point out that, given the maturity of such ecosystems, ancient woodland has a whole range of things that new planting cannot hope to replicate. That is why the planning guidance is absolutely clear that the hierarchy should protect ancient woodland.
Nigel Mills (Amber Valley) (Con)
2. What assessment he has made of the scope for cutting red tape in the farming industry.
Grahame M. Morris
I am grateful to the Minister for that answer but I draw his attention to the fact that a cost of living crisis is affecting about 2 million households in England and Wales who are classed as living in water poverty, which means they are paying at least 3% of their household income in water bills. Will the Government think again and consider supporting Labour’s proposals to introduce a reduced social tariff to help families who are struggling to pay their water bills?
Dan Rogerson
As I made absolutely clear to the hon. Gentleman in my previous answer, many water companies are now taking such action, but there are other things we can do to help people who are struggling with their water bills. The biggest thing we can do is to ensure that we bear down on charges for everybody. My right hon. Friend the Secretary of State has been clear in his expectations, Ofwat has been clear in the way it has entered into the price review period and companies are now responding. We will see, in the vast majority of cases, bills going with inflation or even perhaps, in some cases, going below inflation. That is a real improvement on the last price review period, given the opportunities companies have had with low borrowing.
Thomas Docherty (Dunfermline and West Fife) (Lab)
Water bills have increased by almost 50% in real terms since privatisation, yet in the past financial year the regional water companies made £1.9 billion in pre-tax profits and paid out a staggering £1.8 billion to shareholders. Will the Minister explain why on Monday his Government rejected Labour’s proposed amendment to the Water Bill for a national affordability scheme with clear and standardised criteria set by the Secretary of State to replace the Government’s failed voluntary approach?
Dan Rogerson
I am happy to reiterate to the hon. Gentleman what I said on Report on Monday. His proposal to fund some sort of national affordability scheme out of excess profits relies on the regulator allowing excess profits in the first place. This Government’s robust price review period will press down. Under the previous Government, when the previous spending review took place, there was a lack of guidance. It is a very different situation now.
Andrew Griffiths (Burton) (Con)
6. How many cattle were slaughtered as a result of bovine TB in 2013.
Robert Neill
If the Minister wants evidence, would he like to look at the waste-for-fuel site in my constituency, which has so far had 15 fires in the past two years, at a cost of £568,000 to the fire service and 1,900 hours of firefighters’ time—more than the clear-up cost of removing this rogue operator—and where repeated attempts by the Environment Agency to secure an injunction have so far failed? Will he press the agency to honour its commitment to give my constituents the results of toxicity testing on that site?
Dan Rogerson
I am happy to pass on that request to the Environment Agency. As the hon. Gentleman knows, I have met him and local representatives to consider what is occurring at that site, and subsequently I met the chairman and chief executive of the Environment Agency specifically to talk about how it could intervene earlier on new or untested operators to prevent these vast amounts of material from appearing on sites such as the one in the hon. Gentleman’s constituency. As he knows, however, there is an action at the High Court, and there is now a deadline to clear the site by 1 May. The agency will have to respect that in the enforcement action it takes.
Andy Sawford (Corby) (Lab/Co-op)
The waste gasification plant proposed at the Brookfield site on the edge of Corby is causing great local concern. Will the Minister assure me that any changes to the environmental permitting regulations will not prejudice the proper planning process by allowing a waste permit to be issued in advance of planning consent being received?
Dan Rogerson
As I believe the hon. Gentleman is aware, we have been consulting on how the planning and permitting processes can be better aligned. If he would like to raise with me specific problems regarding that potential development, I would be happy to hear from him by letter.
Martin Vickers (Cleethorpes) (Con)
11. What reports he has received on the recent floods in northern Lincolnshire; and what discussions he has had with the Environment Agency on its plans to improve flood defences.
Neil Parish (Tiverton and Honiton) (Con)
T4. Flooding has continued in my constituency, as it has in many other constituencies throughout the country. Seaton sea defences have held, but will the Secretary of State carry on devolving powers and money to parish councils and local land and property owners so that they can clear culverts and ditches when they become blocked? Will he also ensure that silt from rivers can be spread on fields as a fertiliser rather than a waste?
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
The hon. Gentleman has maintained an interest in these issues for a long time. Pilot studies are being carried out to assess the impact and potential benefits of the dredging of watercourses, but if the hon. Gentleman wishes to raise any further points about the use of materials or has any other ideas relating to local management of river catchments and watercourses, I shall be happy to hear from him.
Phil Wilson (Sedgefield) (Lab)
T6. Yesterday, during Prime Minister’s Question Time, the Prime Minister said that he strongly suspected that the recent abnormal weather events had been a result of climate change. Does the Secretary of State agree with the Prime Minister?
Mark Pawsey (Rugby) (Con)
T5. Will the Minister confirm that his Department intends to exempt small and medium-sized businesses from its proposed tax on plastic carrier bags? Given that biodegradable plastic in the waste stream is a contaminant and will reduce the number of plastic bags being recycled, will he withdraw that exemption?
Dan Rogerson
I am happy to confirm that there is a proposal for the exemption of small businesses. DEFRA’s call for evidence in relation to a charge on single-use plastic bags closed on 20 December, and the results are now being analysed. The Government recognise that there is a significant debate about acceptable levels of contamination from biodegradable plastics in the recycling stream, and have therefore called on industry to develop new ways of separating plastic bags from the waste stream. Two companies have been awarded contracts for the research, and will complete their feasibility studies by April.
Hugh Bayley (York Central) (Lab)
T7. Will the Secretary of State clarify his earlier statement about an increase in his Department’s funding for flood protection? During the second half of last year, the hon. Member for Newbury (Richard Benyon), who was then a DEFRA Minister, told me in a written parliamentary answer that in the year in which his party came to power, the Department spent £646 million. Spending in the current year is £113 million less, at £533 million. Did the Secretary of State’s earlier statement mean that the Government have now increased funding for flood protection in this and future years, and does that mean that he can now abandon the proposals to cut 1,700 jobs at the Environment Agency?
Caroline Nokes (Romsey and Southampton North) (Con)
In parts of rural Hampshire, the cost of high-speed broadband runs to many thousands of pounds per connection. Can my hon. Friend reassure those living in villages such as Barton Stacey that resources from, for instance, the rural community broadband fund might provide them with high-speed connections?
Dan Rogerson
My hon. Friend is right to refer to the benefits of broadband connections to the rural economy. Through the work that the Department for Culture, Media and Sport is doing with Broadband Delivery UK, and also through the rural community broadband fund, we are providing resources that will deliver projects in locations such as the one to which she referred. Some 10,000 properties a week are already being connected to superfast broadband, and we expect the figure to rise to about 40,000 a week by the summer.
Angela Smith (Penistone and Stocksbridge) (Lab)
T8. Will the Secretary of State clarify how the remarks he made on allowing ancient woodland to be lost to development meet the spirit of his Department’s forestry policy statement which states categorically:“Protection of our trees, woods and forests, especially our ancient woodland, is our top priority”?
Tim Farron (Westmorland and Lonsdale) (LD)
Following the damage caused by the tidal surges in the Kent estuary on more than one occasion last week, will the Minister confirm that draft flood defence schemes along the whole of the River Kent will now be prioritised?
Dan Rogerson
My hon. Friend knows that, as we heard from my right hon. Friend the Secretary of State, the Government are making investment in flood protection schemes a key priority. We have secured record investment in the next spending review period to do that. If my hon. Friend would like to write to me about those specific schemes, I would be happy to hear more.
Caroline Lucas (Brighton, Pavilion) (Green)
The remit of the independent expert panel was originally restricted to the planned six-week badger cull period and my understanding is that that remit was not extended when the badger culls were themselves extended. Can the Secretary of State reassure the House today that the independent expert panel’s scope and report will cover the whole of the culling period and not just the first six weeks, because it is really important that his decisions are informed by wider experience of the whole cull?
Dr Thérèse Coffey (Suffolk Coastal) (Con)
The consultation on abstraction reform has just started. Can my hon. Friend assure me that there will be consultation events, particularly in areas where there is water stress, like Suffolk Coastal?
Dan Rogerson
That is part of our programme, which includes the Water Bill, and, as my hon. Friend rightly points out, the abstraction reform consultation opened before Christmas. There will be opportunities for everybody to contribute to that process and of course if my hon. Friend would like to take up some specific constituency issues with me, I will be happy to hear them.
Water Bill
Dan Rogerson Excerpts(10 years, 4 months ago)
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Thomas Docherty
I do not want to get sidetracked by a debate about the merits of privatisation—I think you would pull me back in line if I did so, Madam Deputy Speaker—but I will just point out to the hon. Lady that Scottish Water, which is owned by the state, has invested more per connected property, I think, than any of the English water companies, with the exception of South West Water, so I am not entirely convinced by her argument.
To go back to the comments made by the hon. Member for Skipton and Ripon, despite paying out hundreds of millions of pounds to investors, Yorkshire Water has paid next to nothing in corporation tax over the past few years. I am not singling out Yorkshire Water in particular—it is clear that its behaviour is no better or worse than that of any of its competitors. The problem lies with the culture of water companies themselves. They have behaved in an unacceptable manner towards their customers for too many years. It is clear that they have come to regard customers as nothing more than cash cows, and many have paid little or no attention to customer complaints. That is why we believe it is in the interests of hard-pressed customers that the industry be subjected to greater scrutiny.
New clause 11 in particular shines a light on the opaque world of the companies’ financial and business practices. This is not an unreasonable or overly bureaucratic requirement. For many years, water companies voluntarily produced reports such as those that the new clause would require of them; yet, strangely, in recent years they seem to have got out of the habit of providing that information to customers, the regulator and the Department.
It is also worth noting, before the Minister replies, that Ofwat’s Scottish counterpart, the Water Industry Commission for Scotland, requires Scottish Water to produce the relevant information on an annual basis. Therefore, we believe that this is not an onerous or bureaucratic requirement.
New clause 12 would require Ofwat to pay far more attention to the problem of affordability of bills. I am conscious that we will have a wider debate about affordability when we discuss the second group of amendments, but Ofwat’s current interpretation of its role as an economic regulator is far too narrow. Both household and business customers feel that they are an afterthought, and the new clause makes it clear that Ofwat must have due regard to the cost of bills when setting the prices in future review periods. Labour believes that during a time of unprecedented squeezes on household budgets, much more must be done to help hard-pressed customers. Our two new clauses are important measures that would ensure that water companies served their customers’ interests, not the other way around.
We will, unsurprisingly, support the Select Committee’s new clause 2 on retail exit if it is pressed to a vote. We welcome the fact that the hon. Member for Brecon and Radnorshire (Roger Williams) appears to have had a change of heart over the festive break. During the Bill’s Committee stage he did not vote in favour of Labour’s proposal, but we very much welcome his change of heart. If we do not get an opportunity to discuss the proposal today, we hope that the other place will note that even members of the Bill Committee have signalled that they believe, on reflection, that it is a sensible and worthwhile measure. I will not repeat the discussion we had in Committee, but I think it is fair to say that, based on the signatories to the new clause, the proposal has cross-party support, which we welcome.
We will also support the Government’s amendments. I am slightly surprised that they felt the need to table a series of amendments, but not as surprised, I suspect, as the Minister when he was informed by his civil servants. The Minister has told us many times that he is lucky enough to be half Welsh, so one would have thought that he would have noticed the impact on Wales of the new clauses tabled by the Government in Committee. I hope he will explain how that slightly embarrassing oversight occurred.
We hope we will have an opportunity later this evening to press our new clauses to a Division. We welcome the spirit in which this first part of the debate has been conducted and I do not wish to detain the House any further at this point.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
I start by echoing the remarks of the Opposition spokesman, the hon. Member for Dunfermline and West Fife (Thomas Docherty), with regard to the earlier statement made by my right hon. Friend the Secretary of State. Our thoughts are with those who have been affected by the storms and flooding over the Christmas and new year period, and I pay tribute to all those who have worked incredibly hard, including the Environment Agency, local authorities, the emergency services and, of course, those volunteers and community representatives who have supported their neighbourhoods and neighbours.
This discussion has covered a number of new clauses and amendments in relation to the regulation of water and sewerage undertakers and licensees, particularly those provisions designed to extend competition in the sector. The new clause tabled by the hon. Member for Arfon (Hywel Williams) would alter the devolution settlement by devolving further powers to the National Assembly, and he has set out his appetite for doing so. Generally, the Government of Wales Act 2006 devolves its issues down the national border, but the situation is not so straightforward for water supply. Water catchment areas and water supply management infrastructure cross the national boundary. The appointment and regulation of any incumbent water company whose area is not wholly or mainly in Wales is not devolved. That means that the legislative competence of the Assembly does not cover the parts of Severn Trent Water’s area in Wales.
Jonathan Edwards
Would the Minister be so kind as to inform the House of the situation in terms of the geographical boundaries of the water system in Northern Ireland? Is it based on the water table, as is the case in Wales, or on the actual state border with the Republic?
Dan Rogerson
The hon. Gentleman sets out his aspirations quite clearly by viewing the boundary between Wales and England in the same way as the sovereign state boundary between the Republic of Ireland and Northern Ireland, but I am addressing my remarks to the devolution settlement within the United Kingdom.
Roger Williams (Brecon and Radnorshire) (LD)
The Minister is well aware of the new clause’s implications for devolution. Does he agree that such a fundamental change would be better considered as part of devolution legislation, not as a new clause in a Bill on another matter?
Dan Rogerson
I thank my hon. Friend for his helpful intervention. He has somewhat pre-empted the remarks I was about to make, but I am happy that we speak as one on this issue.
Licensing of water suppliers is also not devolved. I recognise the deep, historical reverberations in Wales—we heard about them in the heartfelt speech by the hon. Member for Arfon—about the management of water, which is an essential natural resource. Much of the responsibility for water is, I am pleased to say, now devolved. However, further changes to the current devolution arrangements would have implications for customers and household bills on both sides of the border. They would also affect the companies, their assets and their operating rules, and possibly the people who work for them. Therefore, changes should not be undertaken without very serious consideration of all the implications.
The UK Government position is that we will not make changes to the devolution settlement in advance of the review and report by the Commission on Devolution in Wales—the Silk commission—which, as hon. Members will know, is led by Mr Paul Silk. The commission is currently working on part II of its remit and is expected to report in the spring. It is reviewing the powers of the National Assembly for Wales in the light of experience. The commission’s terms of reference make it clear that any changes it proposes must enable the UK Parliament and the National Assembly better to serve the people of Wales.
Thomas Docherty
I wish you a happy new year, Mr Deputy Speaker. Given that new clause 2 specifies that the process can take place only with the Secretary of State’s consent, will the Minister tell the House how such an unintended consequence might happen?
Dan Rogerson
We are very clear that we look at such issues strategically across the whole market, rather than picking them case by case. The issue is that we want to make reforms based on the principles that we set out during discussions in Committee and elsewhere.
Were a company to exit and to leave household customers on their own—without the non-household element—customers would not only be left with a company that had limited incentives to focus on improving customer service, but would be at risk of having higher bills, because providing, as new clause 2 does, for forced legal separation of the companies’ retail businesses would reduce regulatory stability and risk increasing the cost of capital.
Let me be clear: we want to see a successful retail market. The Bill sets a framework for new entrant retailers to enter the market on an equal footing with the retailers of the incumbent water companies. Our opposition to a provision about retail exit has nothing to do with supporting the position of incumbent water companies; we expect Ofwat to use its regulatory powers to make sure that new entrants can be confident that they are competing on a level playing field.
However, retail exit is not about delivering a level playing field. For example, in written evidence to the Public Bill Committee, the Water Industry Commission for Scotland argued that a provision about retail exit was needed so that new entrants had other options for increasing their market share than
“to acquire customers by winning them one contract at a time.”
However, that is exactly how entrants to the market in Scotland have had to win business unless an existing licensee surrenders its licence or has it withdrawn. In that case, the customers of the exiting licensee are shared out among other licensees, but otherwise all business customers stay with the incumbent retailer, Business Stream, until they actively decide to switch.
Some commentators have painted a picture of an incumbent water company being left without any customers, because all of them are lost to their customers once our retail reforms are in place. We feel that that is a very unlikely scenario, given that non-household customers represent only some 10% of the total retail market, and that 90% of customers—in other words, households—will not be able to switch suppliers.
It is quite an assertion to say that 100% of an incumbent’s non-household customers will switch suppliers. Some 60% of non-household customers in Scotland have put their water services out to tender, but most customers have elected to stay with Business Stream. We understand that only about 5% to 10% of customers have switched since 2008. The customers who stayed with Business Stream have benefited from improved services, without having to switch, by renegotiating their terms. We might expect a more active market in England from 2017.
Thomas Docherty
I fear that the Minister is confusing two different issues. Undoubtedly, competition in itself has brought huge savings and has made Business Stream—or Scottish Water—change its whole ethos, but like does not follow like: simply because customers have stayed with Business Stream does not mean that the market is not working. Given that only 10% of customers have switched, as he says, does he not accept it is quite likely that some smaller water companies will not be able to compete with big retail providers?
Dan Rogerson
I certainly was not seeking to suggest that the market is not working in Scotland. My point was that some people have chosen to stay with their incumbent, and they may wish to do so rather than to have an incumbent abandon them and walk away.
An Oxera report commissioned by WICS and published in November 2012 predicted that incumbents would lose some 40% of their non-household customers in the first year of the opening of the retail market, with a 5% loss of profit. However, arguments that make an economic case for exits seem to be based on incumbents losing all their public sector and multi-site customers in the first year of market opening. The Oxera view is bolder than that of the rating agency Moody’s which, in February 2012, said that a worst-case scenario would be incumbents losing 25% of their non-household customers in the short to medium term, with a much smaller loss of 0.69% of profit. Although no doubt all incumbents will lose some customers, we can suppose incumbents will take steps, such as those that Business Stream has taken, to retain customers.
Anecdotal evidence from business customers suggests that incumbents are already upping their game, even though retail competition reform is some years away. Large business customers have suddenly discovered that they have a named customer service contact, and some have been offered improved metering services. The idea of incumbents sitting around while customers disappear is therefore, in our view, an unlikely scenario. In addition, water-only companies will be able to apply to Ofwat for a sewerage licence, which will allow them to compete with licensees and other incumbent sewerage companies by offering both water and sewerage services to their customers.
My point is that this is evolution, not revolution. Many non-household customers may choose to stick with the incumbent supplier because the incumbent supplier will improve its services to them as a result of the reforms. The benefits of that may in turn be passed on to household customers. Forcing or even allowing retail exit ignores such points. Where customers choose to switch, we anticipate a growth market in which innovation and competition lead to benefits, both environmentally and in customers’ bills. Allowing partial retail exit would open the door to forced separation if individual cases of discrimination were discovered, and we have made clear our position on that.
As I have said, any decision on separation should be made by Ministers and Parliament. We are not prepared to take the risk of forced restructuring, or even the potential for it as provided for in new clause 2, destabilising investment or increasing costs to customers. The new clause envisages the Secretary of State permitting exits, but that may not reduce the risk of a competition authority forcing an incumbent water company to make an application to exit. I therefore urge hon. Members who tabled new clause 2 and amendment 12—led by the Chair of the Select Committee, the hon. Member for Thirsk and Malton (Miss McIntosh)—not to press them to a Division.
The hon. Lady raised other issues about the industry in general, particularly in relation to upstream reform. We know from experience that setting out how markets should work in primary legislation is very inflexible and can stifle innovation. I know that she is keen for us to do more in that regard, but our view is that that was one clear lesson from the last attempt to extend competition through legislation in 2003. That is why the framework in the Bill sets the scope and direction of reform, without being overly prescriptive. We are working closely with Ofwat, customers and the industry—through the high-level group and the Open Water programme—to ensure that new markets work effectively, and we know that the industry does not want to constrain the market unnecessarily with too much detail in primary legislation, any more than the Government want to do that.
On new clauses 11 and 14, the hon. Members for Dunfermline and West Fife and for Hayes and Harlington (John McDonnell) have raised important issues about how the sector is run. As the hon. Member for Dunfermline and West Fife pointed out, we had a previous debate on this set of issues in which hon. Members from all parties were keen to put on the record their concerns about the past operation of the industry. I fear, however, that we have been talking about things as they were, not as they are and will be. Ofwat is already taking action to improve standards of corporate governance across the sector. It recently consulted on principles relating to board leadership, transparency and corporate governance, and it is putting pressure on water companies to strengthen audit arrangements, board member appointments and governance. The response from water companies has been positive and I welcome that. I do not want to belittle the issues that the hon. Member for Hayes and Harlington set out, but Ofwat has listened and is providing leadership to deal with them.
John McDonnell
Is the Minister satisfied that United Utilities, which supplies water to the north-west, is forecast to have made £627 million in the year up to March last year, which is up from £594 million; that Pennon, the owner of South West Water, which must supply his constituency, is due to unveil profits of £273 million, which is up from £268 million; and that earnings at Severn Trent Water, which supplies the midlands, are expected to hit £525 million, which is up from £504 million? The profiteering is continuing as normal.
Dan Rogerson
The hon. Gentleman is referring to the current price review period, but we are about to enter a new one. The measures that I am setting out have been prepared by Ofwat to change the industry and to meet its aspiration of better performance by the industry. They also recognise the low cost of borrowing from which companies have benefited in the latter years of the current price review period.
John McDonnell
Would the Minister put his mortgage on United Utilities, Pennon and Severn Trent not increasing their profits next year?
Dan Rogerson
I suspect that they would not welcome my mortgage, given the debts that they are already dealing with because of the investment that they have put into the sector. The Secretary of State made it very clear in the letter that he sent to the industry and the framework that he set out for Ofwat that we want to see a settlement that reflects the market conditions that companies have benefited from in recent years. Ofwat, in turn, has been very clear that it expects companies to take account of that in the coming price review period. Companies are responding to that and we have seen some good signs.
Mr Charles Walker (Broxbourne) (Con)
I do not often applaud water companies, but Affinity Water, which serves large parts of my part of the world, hopes to achieve an average bill reduction of 0.7% before inflation in each of the five years up to 2020. That is worth welcoming.
Dan Rogerson
I thank my hon. Friend for that intervention. As he is not always an enthusiast for what water companies do, it means all the more that he is prepared to offer those words of congratulation. It is fair for hon. Members across the House to express clearly their view that water companies should offer a fairer deal to consumers. That is what the Government want to see as well. That is why I am pleased that water companies are responding positively to the process.
Hywel Williams
The Minister talks about fair deals between water companies. Is he satisfied with the terms for the supply of water from Wales to Severn Trent, especially given that Severn Trent is apparently selling on 30 million litres of water a day to Anglian Water at commercial rates? Of course, that is happening on the back of Welsh resources.
Dan Rogerson
The hon. Gentleman is tempting me to get into the specifics of individual companies. The framework that the Government have set out and our policy statements are very clear, and Ofwat is responding to that. The companies will have to take account of that and satisfy the regulator that they are acting fairly and effectively.
Richard Benyon
Given that one of the key objectives of the Bill is to increase the resilience of the water sector across the country—or perhaps I should say countries—should we not welcome the fact that Severn Trent is trading bulk quantities of water with Anglian Water and say that we hope to see more water flowing from areas where it rains a lot to areas where it does not?
Dan Rogerson
My hon. Friend and predecessor is a great advocate of ensuring that we have a far more resilient water sector on environmental and sustainability grounds, as well as on economic and social grounds. It is important that we get that message across and I welcome his intervention.
New clauses 11 and 14 would place a duty on water companies to report information that is already freely available in the public domain. Both new clauses require reporting about company performance, investment, tax, corporate structure and dividends. Indeed, the hon. Member for Hayes and Harlington cited those figures in his speech, which shows that they are readily available.
New clause 14 would also require the Secretary of State to report on the cost of water, disconnections, water quality, leakage and the legal compliance of water companies. The cost of water to consumers is published every year in each company’s charges scheme. The Water Industry Act 1999 removed the power of any water company to disconnect homes because of the non-payment of bills. That prohibits the disconnection of the water supply to homes, schools and hospitals. The drinking water inspectorate is responsible for providing independent reassurance that water supplies are safe and that drinking water quality is acceptable to consumers. In England and Wales, 99.96% of drinking water supplies meet national and European standards. The tiny proportion that are failing to meet that standard—0.04%—are predominantly private supplies, rather than supplies from incumbent water companies. Since the mid-1990s under the current framework, there has been a 30% reduction in leakage, which is more than 2 billion litres per day. Companies are now operating at their sustainable economic level of leakage.
Dan Rogerson
My hon. Friend is an astute and fearless challenger of all authorities, whether they be in the private or public sector. I am sure that he is well aware of the routes that he can take to challenge the company on that matter publicly and privately. The new clauses that we are debating would not assist him in that aspiration.
Thomas Docherty
The Minister probably has first-day-back blues. I refer him to Opposition new clause 11, which would allow the hon. Member for Broxbourne (Mr Walker) to check the performance of his water company.
Dan Rogerson
The hon. Gentleman hopes that his new clause would require further reports to be made to the Secretary of State. However, that information is already in the public domain. That is why supporting new clause 11 would not be helpful. I understand and respect his desire to ensure that the industry is as transparent as possible. I understand the ambition behind the new clause, but I do not share his enthusiasm for the wording that he has chosen.
The privatisation of the water industry has been a success story in terms of investment. Helpfully, the hon. Member for Hayes and Harlington pointed out that I represent a constituency in the South West Water area. The coalition Government have recognised that there were a few flaws in the privatisation process, so there is now extra money to support bill payers in the south-west, who paid for the clean-up of the beaches around the south-west peninsula.
As was pointed out by my predecessor, my hon. Friend the Member for Newbury (Richard Benyon), there has been huge investment in infrastructure since privatisation. That is one of the key successes that we want to build on and not jeopardise. The stable regulatory framework for the water sector has enabled companies to attract more than £111 billion of low-cost investment to upgrade water and sewerage infrastructure and to improve customer service and environmental standards.
I agree that we should be putting pressure on the water sector to act as transparently and responsibly as possible. Ofwat is already doing excellent work on the issues that have been raised by hon. Members. I do not believe that duplicating the reporting requirements would help. For that reason, I believe that new clauses 11 and 14 should be resisted.
New clause 12, for which the hon. Member for Dunfermline and West Fife argued, would place a duty on Ofwat to have regard to the charges to household and non-household customers. That would simply duplicate Ofwat’s existing duty.
I turn to a number of technical amendments, which the hon. Member for Dunfermline and West Fife charitably referred to. I will move amendments 13 to 50, 52 to 54 and 60 to 87 formally at the appropriate time. They will mainly make changes to schedules 5 and 7. Schedule 7 makes consequential changes to the Water Industry Act 1991 and other primary legislation as a result of our reforms, and schedule 5 makes further changes should the Welsh Ministers decide to adopt the reforms being introduced in England. Amendment 59 and new schedule 1 will provide the Secretary of State with the power to produce transitional orders that allow us to deliver retail and upstream reform separately.
Taken together, our amendments will provide Ministers with the maximum flexibility to commence the different market reform provisions transparently and in stages, as per our commitment to stagger the implementation of our retail and upstream reforms. They will enable the current arrangements to continue without diverting attention from the immediate priority of preparing for the opening of the reformed retail market in April 2017.
Hywel Williams
We have had an interesting debate, and I was glad to hear the contributions of the Chair of the Environment, Food and Rural Affairs Committee, the hon. Member for Thirsk and Malton (Miss McIntosh), and the hon. Member for Hayes and Harlington (John McDonnell), with whom I yet again agreed entirely. I was also glad to see the hon. Member for Newbury (Richard Benyon) taking an interest in his former beat, and to see the hon. Member for Brecon and Radnorshire (Roger Williams) in his place, although essentially in a non-speaking role.
I was disappointed by the lack of contributions from Welsh Members, and disappointed that the hon. Member for Dunfermline and West Fife (Thomas Docherty) did not make any reference to my new clause 1. Pretending it is not there does not mean it will go away.
Thomas Docherty
I wish you a merry Christmas and a happy new year, Mr Deputy Speaker.
I welcome the thoughtful remarks by the hon. Member for Thirsk and Malton (Miss McIntosh). As she rightly said, the Minister and I had the pleasure of serving on the Select Committee under her chairmanship. She was an excellent tutor to both of us, although I suggest, looking at the debates today and in the Bill Committee, that I remember more of what the Select Committee agreed than the Minister. I am sure he will eloquently explain his position.
Dan Rogerson
The hon. Gentleman is always kind enough to remind me repeatedly, so I fear I can never forget any of our deliberations.
Thomas Docherty
It is always a good thing to be a charitable and giving soul, so I do my best to try to accommodate the Minister.
I would like to speak to the new clauses that stand in my name. As I said earlier, much attention has been paid to households that faced a difficult Christmas and new year because of the climatic conditions that battered the United Kingdom. Much less, however, has been written on households that faced a stressful period because of the economic conditions that have battered the United Kingdom, not just in the past three weeks but in the past three years. Hundreds of thousands of households did not enjoy the Christmas that all of us here in the House of Commons did, in warm and secure homes with plenty to eat and with presents given and received. Too many families were left unable to enjoy the Christmas joys that we take for granted.
The cost of living crisis cannot be dismissed as a soundbite, as many Government Members try to do. The cases of hardship regularly brought to the attention of Members of Parliament cannot simply be batted away. At a time when household incomes are continuously being squeezed, it is not acceptable to Opposition Members for most water companies to continue to do so little to help their struggling customers.
The size of water bills may not have reached the obscene level of their gas and electricity counterparts, but there is no disputing their cumulative impact. Citizens Advice reported to MPs in November that it had received almost as many inquiries from people worried about their water bills as they had about the other two utilities. DEFRA’s own statistics state that some 2.5 million households now find themselves in what the Department itself defines as water poverty, while in the past year water companies reported pre-tax profits of £1.9 billion and paid out, in dividends, a staggering £1.8 billion to their shareholders.
You might have expected the water companies to rush forward with schemes to assist their hardest-pressed customers, Mr Deputy Speaker. After all, the previous Labour Government put in place legislation to allow each company to introduce a tailor-made scheme for its own region. The water companies told the then Government and Parliament that that was all that was needed: a voluntary system of social tariffs that each and every water company would then set and implement quickly. Four years later, what progress has been made? So far, only three water companies have got around to implementing social tariffs, helping a grand total of 25,000 households across the country. Even by the end of the price review period, more than a third of water companies will still have not bothered to lift a finger and introduce such a scheme. When the water companies gave evidence to the Bill Committee, did they acknowledge that they had let down their customers and Parliament? Did they acknowledge that the rate of progress was not good enough? Did they say sorry, even once? Of course not. They blamed everyone but themselves: they blamed the regulator, they blamed the Government and they blamed the customers.
What has been the response of the Secretary of State, and his Minister with responsibility for water, to the crisis facing households? The Secretary of State sent a letter to the companies in October begging them not to raise prices further. It was not, we note, an instruction or a warning that if they did not take heed, the Government would step in. It was not even a rebuke; it was just a weak letter. That is why the Opposition have tabled four new clauses that will each help hard-pressed households. Taken together, they would make a tangible difference to those struggling with the cost of living crisis. With your permission, Mr Deputy Speaker, I will briefly take each new clause in turn, explaining the existing problems and how our proposals would address them.
First, on bad debt, I will build on the excellent remarks by the Chair of the Select Committee. Ofwat estimates that on average bad debt adds £15 to every customer’s annual bill. Note, of course, that that is just the average amount; in some cases, it is significantly more than that. As the hon. Lady said, water companies are, rightly, not allowed to cut off those who cannot afford to pay their bills, but they are allowed to pass the cost of non-payment on to their other customers. In effect, the sector already has cross-subsidisation.
Dan Rogerson
The hon. Gentleman has set out how the burden of pursuit would fall on the water companies, but of course the burden of providing that information to them would fall on the landlords, so there would be a burden.
Thomas Docherty
I congratulate the Minister on stating the blindingly obvious. Of course, the landlord would have to provide that information, but it is not the longest list in the world, and it is information that landlords have anyway, so the Opposition, like the Select Committee, find it difficult to comprehend why it would be so onerous for landlords to provide a list of their tenants by property. If he has specific examples of hard-pressed landlords who have made representations to him, I am sure he will refer to them when he responds.
For the fourth time, I ask myself the question: why the opposition from the Government? The Secretary of State has had his usual Pavlovian reaction to a suggestion that the Government should take action. It appears once again that when Parliament, the Select Committee and the water industry ask DEFRA to do something, its knee-jerk response is to think of spurious reasons why it should not or cannot do it. Our new clause would be a pragmatic and efficient measure that would help to drive down costs on all decent households, help water companies to do their job and ensure that all customers meet their responsibilities.
Our second new clause—new clause 10—recognises that not all water companies have done all they can to tackle the problem of bad debt. As I mentioned earlier, although the average bad debt figure is about £15, there are wide variations across the country. As the hon. Member for Newbury (Richard Benyon) pointed out, that is because some, such as Yorkshire Water, have worked with customers and debt advice groups, such as Citizens Advice, to put in place measures to help customers genuinely struggling to access payment packages and programmes, but unfortunately that is not the case across the country. Too many water companies have come to the unsurprising conclusion that, because they can pass the cost of bad debt on to their other customers, they need not bother to do anything about it themselves.
That is why we have tabled new clause 10. We want to give Ofwat and water companies a clear and unambiguous signal that hard-pressed customers should no longer be treated as a cash cow by companies that cannot be bothered to meet their own responsibilities. Where the regulator and the Department are satisfied that water companies are not doing enough to pursue bad debtors, the cost should no longer be passed on to other customers. Taken together, not only would our two new clauses be practical measures, but they would send a clear signal that while we will do more to help those who are struggling, we expect all customers and water companies to do their fair share.
Our third new clause—new clause 8—would help to ensure that customers know about the help for which they are eligible. In 1999, the last Labour Government introduced WaterSure to help low-income metered households with high essential water use. WaterSure caps the bills of metered households in receipt of a qualifying benefit or tax credit at the average bill for that water company’s operating area. It applies to households with three or more children under the age of 19 living at home or where someone in the household has a medical condition that necessitates high water use. It is an important measure that at the time received cross-party support and which, according to the latest figures that the Minister gave us in Committee, has helped 70,500 households in England—I think a similar scheme has helped approximately 20,000 households in Wales. Although that is welcome, we believe that that level is unacceptable. Given that, as the Consumer Council for Water has said, only one third of eligible households are in receipt of the benefit to which they are entitled, the Government have been guilty of complacency.
The Minister previously claimed there was no need for the new clause because all the water companies already provided this information. For the benefit of Members who have not had a chance to look at the amendment paper, we are proposing that information about the eligibility criteria and how to apply should be included in all water bills. He believes that all water companies already provide this information, but unfortunately for him the reality does not match his statement. Not only do his own figures show that the current approach is not working, but our own anecdotal research shows that customers are not even aware that WaterSure exists. We want to make it clear to water companies that they must do much more to promote the scheme, and we want Ofwat and the Government to hold them to account if they do not. I hope he has reflected not only on the evidence we presented in Committee, but on his own figures and the evidence from the CCW, and will listen to common sense.
Finally, our fourth new clause—new clause 7—deals with the central problem of the failure of the voluntary approach to social tariffs. As we have set out, too few water companies are helping too few customers through social tariffs, and it is clear that left to their own devices many water companies, by their own admission, will never introduce such schemes. That is why we are proposing a national affordability scheme to end the postcode lottery and ensure national standards for eligibility. We would expect schemes to be funded by the excess profits of the water companies, not by other water bill payers. As I have said, last year these companies made an eye-watering £1.9 billion in pre-tax profits and paid out £1.8 billion to investors. The idea, for example, that Yorkshire Water, which paid out £240 million, cannot afford to provide support through social tariffs is clearly nonsense.
Enough is enough. Hard-pressed households need real help now, and these new clauses are four practical and simple measures that would ensure they get it. It is time for the coalition to match our commitments.
Dan Rogerson
The hon. Member for Dunfermline and West Fife (Thomas Docherty) has proposed a number of new clauses, which I shall address before dealing with the lead new clause 3, tabled by the Select Committee Chairman.
New clause 7 would place a requirement on the Government to introduce through secondary legislation what is described as “a National Affordability Scheme”. The details of the scheme are not entirely clear. We debated in Committee an identical clause tabled by the hon. Gentleman, but at that point, the funding was not made clear. He said today that it would be funded specifically from the profits of the water companies rather than from other bill payers in a cross-subsidy approach.
Thomas Docherty
I refer the Minister to the evidence session during the eighth sitting of the Public Bill Committee, where I specifically said that the scheme would be funded from excess profits. Perhaps the civil servants should pay more attention in future.
Dan Rogerson
The hon. Gentleman is, as always, keen to assist. What I said comes entirely from my recollection of his introduction of the measure in Committee and if it is faulty, it is certainly not on account of any information briefed to me by others. I am grateful to the hon. Gentleman for highlighting the issue of excess profits. However, this does not address the point that we have a regulated system under which the profits are allowed for under the price review process. I appreciate that he was not a Member when his party was most recently in government, but it was quite happy to move forward with the pricing process. What he is saying now is that he has no confidence in the regulator—in other words, that the regulator would set a level of profit that it thinks reasonable for the price review period, but that this would now somehow be unpicked as being in excess in some cases in order to fund the scheme. I am happy to give way again, in case he wants to correct this.
Thomas Docherty
I am grateful, but on this occasion it is perhaps the Minister who should have paid more attention to my remarks a few moments ago. I clearly said that the last Government gave the water companies time to introduce the voluntary schemes, but that they have now failed to honour their commitment, so the Government should step in and do what the companies failed to do themselves.
Dan Rogerson
I understand the hon. Gentleman’s views on social tariffs, which he feels have not been introduced in a speedy enough fashion. My point was rather about the issue of excess profits. I said that the hon. Gentleman was seeking to introduce a concept that is perhaps a subjective rather than an objective assessment of the profits made by water companies. The whole point of the price review process and price review period, however, is that a regulated process takes account of the need to attract investment and thus the need to make a reasonable return in profit.
Roger Williams
My understanding is that the water companies made larger profits because the period of very low interest rates benefited them to a great extent. However, basing an entire policy on windfall profits that might not occur in the future would certainly not be a very good idea.
Dan Rogerson
I thank my hon. Friend for his intervention. He is absolutely right to point out that what is proposed is a new bold national scheme built on profits that might or might not go up or down in accordance with the markets and through the price review process. Although I accept that the intention of the hon. Member for Dunfermline and West Fife is, as always, to be helpful, I feel that his scheme could use a little work and I therefore urge my hon. Friends to resist it should he seek to press it to a vote.
Let me move next to new clause 8, also tabled by the hon. Gentleman. It would place a legal requirement on water companies to include information in their bills about the WaterSure scheme, but, as I have said—I provided information to this effect to the Committee—all water companies already do so voluntarily. He made a point based on anecdotal evidence. I would be happy to see that evidence and I am sure that he will want to share it with us, but I think we should base our policy making on the evidence provided to us, and the Consumer Council for Water has been quite clear that companies provide such information to customers.
In addition, new clause 8 would place requirements on water companies to provide information about tariff structures and the lowest available tariff, a point picked up on by my hon. Friend the Member for Sherwood (Mr Spencer). The proposals simply fail to reflect the realities of the water sector as opposed, for example, to the energy sector. Water companies do not have complex tariff structures. The sole choice for the majority of household customers is whether to pay according to the amount of water they use through a metered tariff, which is particularly prevalent in areas such as my own, or according to the rateable value of their home through an unmetered tariff. The cheapest option for each household will therefore depend on the location of the property and the amount of water used by the household.
Many smaller households with low water use can benefit from a meter. Water companies are required to fit a water meter free of charge on request and they also advise customers on whether they might benefit financially from the installation of a water meter. A further point to bear in mind about the operation of WaterSure is that it caps the bills of eligible customers at the average of the metered and unmetered bill for the area. That could, in effect, put the bills of some eligible customers up and it is therefore not surprising that they have chosen not to apply for WaterSure.
There is no evidence, in my view, that further regulation is required in this area. As I have noted, all companies already include details of WaterSure in their household bills and they also all provide details of the support available to any customer struggling to pay their bill. Legislation to require the companies to do something that they are already doing voluntarily would be redundant.
The Consumer Council for Water works closely with the companies on the format of their bills. Its expert advice, as we discussed in Committee, is that one of the biggest risks in using water bills as a means of communication with customers is information overload. I do not, therefore, consider the new clause to be necessary.
Let me turn next to new clause 9, also tabled by the hon. Gentleman. We discussed an identical clause that he tabled in Committee. Section 45 of the Flood and Water Management Act 2010 already enables Ministers to introduce secondary legislation that would require landlords to provide water companies with personal details about their tenants or become liable for paying the bill. That was a point that the Chairman of the Environment, Food and Rural Affairs Committee was keen to emphasise, given her involvement with the passage of that Act.
Following extensive consultation with the industry and with landlords’ organisations the Government took the decision that a voluntary approach would be more suitable. During consultation, landlords argued that the additional regulatory burden would be disproportionate as they are not the source of the problem we are trying to tackle. At the same time, the evidence provided by the water sector to support the case for additional regulation was not sufficient to make the case for additional regulation of millions of small and micro-businesses.
The Government simply do not believe that more regulation is always the answer. As we discussed in Committee, good practice in tackling bad debt is not applied consistently across the water sector. The hon. Gentleman quite rightly took great pains to point that out. The significant variation in performance between companies tells us that the focus should be on driving better standards across the sector rather than regulating landlords.
One reason we do not propose to bring forward the bad debt regulations on landlords is that we do not wish to endorse the argument that performance on bad debt is not within the control of water companies. We think there is more that the companies can do to collect their debts and we want them to focus on that rather than look to the Government to solve the problem for them.
Of course, the real drivers of company performance are the incentives and penalties set by the regulator so I am pleased to be able to report that Ofwat has changed its approach to bad debt in the methodology it is using for the 2014 price review. The new approach will enable it more effectively to bear down on the costs of bad debt. It is doing so by insisting that the companies demonstrate that any increase in bad debt is genuinely beyond their control and that they have taken all available steps to control it. Unless they can prove that that is the case they will not be allowed to include it in customer charges. We are already seeing our focus on the industry’s taking responsibility for tackling bad debt bear fruit. As I mentioned in Committee, the industry is working with landlords’ organisations to establish a new voluntary scheme that will enable landlords to provide information about their tenants direct to water companies swiftly and easily.
Miss McIntosh
I am most grateful to my hon. Friend for giving way, but before he concludes his remarks he must say what the Government object to as regards the 2010 Act. I do not personally subscribe to the data protection argument if someone is genuinely in need.
Dan Rogerson
The Chair of the Select Committee is quite right that I have yet to respond to that aspect of her argument and I will seek to do so, I hope to her satisfaction, once I have made my closing remarks on new clause 9.
The industry is working with landlords’ organisations to establish the new voluntary scheme that will enable landlords to provide information about their tenants direct to water companies swiftly and easily and that approach has the support of Water UK and the main landlords’ organisations. The new database will launch in March next year and I believe that it should be given time to work. For those reasons, I believe that new clause 9 is not necessary.
Thomas Docherty
I am grateful to the Minister and am listening carefully to what he says. He will, I am sure, come on to his justifications as regards new clause 10 in a second. Before he finishes dealing with new clause 9, however, can he say what he defines as “time to work”?
Dan Rogerson
We should at least allow the database to be set up and give it a chance to operate. That would seem to be a fair approach and it is certainly the one I seek to take. I understand the hon. Gentleman’s keenness to see progress but I believe that the voluntary approach will have some effect and we should give it time to do so.
Let me turn now, as the hon. Gentleman uncannily predicts, to new clause 10, which he has tabled in his efforts to make some changes to the Bill, and in Committee we discussed a similar clause that he tabled. The new clause will provide a new power for Ministers and Ofwat to disallow companies from recovering the cost of unpaid bills from their paying customers. The hon. Gentleman has argued that there is no incentive for companies to collect bad debt. During our previous discussions, I made it clear that Ofwat has the power to decide which costs may be recovered through the price review. Ofwat is already using the price review process to bear down on the costs of bad debt and requiring companies to demonstrate high performance in debt collection and to show that any increase in bad debt is beyond their control before they are allowed to include it in customer charges. The price review will challenge poor performers to raise their game.
The new clause proposes a power for a future Secretary of State to intervene in the setting and recovery of charges. That is exactly the kind of political interference that concerns the investors who are critical to the water industry. I have stated before that the stability of the regulatory regime is vital to keeping the cost of borrowing low. An increase in that cost will have the direct result of putting up customers’ bills and I am firmly of the view that it is for the regulator and not the Government to make detailed decisions about charges. New clauses 9 and 10 intend to incentivise companies to improve their debt collection performance and I absolutely support that objective. I cannot, however, support the approach that has been proposed and I am sorry to disappoint the hon. Gentleman—and, I am sure, to surprise him.
Let me turn finally to new clause 3, tabled by my hon. Friend the Member for Thirsk and Malton (Miss McIntosh), the hon. Members for Poplar and Limehouse (Jim Fitzpatrick) and for North Tyneside (Mrs Glindon) and my hon. Friend the Member for Brecon and Radnorshire (Roger Williams). The proposed clause targets a number of points that we have already discussed in some detail, including bad debt and social tariffs.
The practical effect of the new clause would be to require the Department for Work and Pensions to supply water companies with personal information about their customers. The clause focuses solely on the subset of customers that are both in receipt of benefits and living in rented accommodation. Amendment 9 would simply include the proposed new clause in the list of measures to be commenced two months following Royal Assent.
I am grateful to my hon. Friend the Member for Thirsk and Malton for her clarification that the clause is intended both to help water companies to collect their debts and to target social tariffs at customers in rented accommodation who are also in receipt of benefits. However, I am afraid that I do not believe that the clause is likely to achieve either objective effectively.
As I have already set out, the Government’s position on bad debt among water customers is that there is a great deal more that the industry can do for itself. We think, therefore, that there is more companies can do to collect their debts and we want them to focus on that rather than to look to the Government to solve the problem for them.
I am pleased, as I have said, that the industry is already taking more responsibility, by working on a voluntary approach to sharing information on customers in rented accommodation, using the landlord database, as we have discussed in response to new clause 9, tabled by the hon. Member for Dunfermline and West Fife.
Thomas Docherty
I remind the Minister that our scheme would not involve cross-subsidisation. I am surprised that he is so against the use of benefit systems for social tariffs, because the Liberal Democrats in Scotland actively supported the introduction of social tariffs based on council tax benefit. What is the difference?
Dan Rogerson
I am seeking to point out that there are a range of benefits and a range of circumstances for people. The hon. Gentleman highlights one benefit. Of course council tax benefit no longer exists in this country in the format that it does in Scotland, as we have now moved over to local council tax forms of support, so there is a different system, which would not necessarily translate across. The hon. Gentleman is keen always to learn the lessons of Scotland, but some of these things do not apply simply, given the different frameworks following the devolution settlement.
We place emphasis on locally designed social tariffs developed in close consultation with the customers who will ultimately foot the bill, as opposed to crude, centrally imposed eligibility criteria. Although I very much thank hon. Members for their new clauses and understand their aspirations in tabling them, I would urge my hon. Friends to resist them.
Miss McIntosh
We have had a fruitful debate, but I express my disappointment that my hon. Friend the Minister has not seen fit to take a simple measure that already exists on the statute book and is not intended to be regulatory. He will, of course, have opportunities in the future to appear before the Select Committee that I chair and that will give him plenty of opportunity to explain at greater length why he is unable to support these new clauses. It is my fervent wish that such new clauses might perhaps find their way on to the notice paper in another place. However, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 4
Sustainable drainage and automatic right to connect
‘The Secretary of State shall by order made by statutory instrument implement the provisions of section 32 and Schedule 3 of the Flood and Water Management Act 2010, and any other provisions as the Secretary of State considers appropriate in connection with the coming into force of those provisions, no later than the end of the period of one month beginning with the date on which this Act is passed.’.—(Miss McIntosh.)
Brought up, and read the First time.
Thomas Docherty
May I wish you a warm and happy new year, Madam Deputy Speaker?
We have had a thoughtful and knowledgeable debate over the past hour and a half or so. I commend two Select Committee Chairmen and a former Minister for their remarks, even if we did not agree with every part of the former Minister’s interpretation of the past three and a half years.
Time is limited, so I hope the House will understand if I restrict my remarks to some of the new clauses. Unsurprisingly, the Opposition agree with the Environment, Food and Rural Affairs Committee about SUDS. I am sure that, as a former member of that Committee, the Minister will agree with himself on the issue. The hon. Member for Thirsk and Malton (Miss McIntosh), who chairs the Committee, was right to highlight the increasing burden being placed on a network that, in many cases, is struggling to cope. We have heard that the ability to cope with additional development is not always given the consideration that it needs. I hope that the Minister will reflect on the cross-party support on that point that the hon. Lady demonstrated.
There is a broad coalition of opinion on abstraction reform, to which the hon. Member for Newbury (Richard Benyon) alluded, but it is not just made up of what he might describe as the usual suspects—the non-governmental organisations involved. That well known environmental organisation the Food and Drink Federation made a submission to the Public Bill Committee. We welcomed the Minister’s announcement in the Committee. It was disappointing that his colleagues chose to make it to the media before it was made to Parliament, but of course I assign no responsibility for that to him. We welcome the consultation, but we agree with the Environment, Food and Rural Affairs Committee that it is long overdue.
I say to the hon. Member for Newbury that the Government certainly could not be accused of legislating in haste, because after almost four years we simply have not seen sufficient progress on abstraction reform. My hon. Friend the Member for Garston and Halewood (Maria Eagle) and I look forward as Ministers in the next Parliament to taking such legislation through with due speed, and we look forward to the support of Conservative Members.
My hon. Friend the Member for Stoke-on-Trent North (Joan Walley), the Chair of the Environmental Audit Committee, made an incredibly thoughtful and logical speech, and we support her new clause 6. We are clear that, as she said, this is not a debate about the merits and demerits of fracking technology. It is about trying to ensure that there are safeguards in place. Her constituency is still suffering the fallout from open-cast mining not having had sufficient guarantees in place, so I understand exactly where she is coming from.
Given that time is incredibly short I will bring my remarks to a conclusion, but it is clear that the other place will have an important job to do in the weeks ahead. A number of issues in this group of amendments—and indeed elsewhere—have not been addressed, and my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) is right to say that we must consider Flood Re in some detail. With the greatest respect, the Opposition will not simply go along with the Government because they have come to a deal and say that that is good enough; we need more detail from Ministers. We look forward to the Bill making progress but we will, as I have suggested, press some amendments to a vote.
Dan Rogerson
In the time available I shall seek to respond to as many points as I can. The Chair of the Environment, Food and Rural Affairs Committee, the hon. Member for Thirsk and Malton (Miss McIntosh), has been a strong advocate of and campaigner for sustainable drainage over many years, and the Government are pressing ahead and implementing the requirement to secure approval for sustainable drainage systems for new developments under schedule 3 to the Flood and Water Management Act 2010. Regrettably, it is looking increasingly unlikely that we will be in a position to ensure that the scheme comes into force this April, which was our preferred date for implementation as stated previously. I accept that that will be a great disappointment for the hon. Lady and other hon. Members, but I remain committed to introducing the legislation at the earliest opportunity. I plan to lay the relevant affirmative regulations by April, to underline the Government’s commitment to addressing flood risk.
I share the hon. Lady’s frustration that the process has been so protracted, but we are working with developers and local government to develop the processes, standards and guidance that are an integral part of a new SUDS approvals and adoption regime, rather than just imposing them. That takes time, but it is time well spent if the end result is an approach that is fair to all parties and successful from the outset because local government and developers are fully prepared to take on their respective new responsibilities.
Amendments 1, 2 and 3 address flooding on highways or that caused by the run-off from highways. The causes of flooding can be complex and it is difficult to make a general statement about them. There are already legislative powers to ensure that highway surface water drainage does not pollute or flood, and section 100 of the Highways Act 1980 enables the local highway authority to take action related to the drainage of highways—for example, it can construct drains or erect barriers on the highway or adjoining land to divert surface water into an existing drain.
The majority of new road drainage systems are not connected to the public sewerage system. Typically, they discharge under designated conditions, either to a watercourse or a storage pond with controlled exits to a watercourse, or alternatively soak into the ground in a designed manner. A decision to connect new highway surface water to a combined or foul public sewer can be made only subject to an agreement with the receiving water authority. There is no automatic right to connect new highway drainage to the public sewerage system. We recognise, however, that in some cases local flooding may be exacerbated by drainage from existing highways, and as I have said, the 2010 Act places a duty on lead local flood authorities to develop a local flood risk management strategy for their area. I hope hon. Members will be reassured by that.
Let me seek to address the points raised by the Chair of the Environment, Food and Rural Affairs Committee about flood insurance, and amendments 5, 6 and 7, which relate to small businesses. Flood Re has been specifically designed to recreate the current cross-subsidy in the domestic home insurance market. There is little evidence that the same type of cross-subsidy applies in the commercial insurance market, and the majority of business insurance policies are already priced to risk. A recent English business survey of more than 9,000 businesses in England found that fewer than 1% of businesses had experienced difficulty getting property insurance in the last year due to the risk of flooding, and that no businesses had been refused insurance cover due to such a risk.
As outlined by the Association of British Insurers in its evidence session, businesses tend not to face the systematic issues that householders experience. We must also remember that Flood Re is funded through a levy on all household insurance policies. We have deliberately set that at £10.50, which the ABI estimates is the same as the current cross-subsidy. Widening Flood Re to include small businesses would significantly increase costs. We do not want someone living in a council tax band A property, for example, to subsidise the cost of insuring a private company that potentially earns up to £1 million a year. I am also mindful of the need to comply with state aid rules. Government intervention to support business would be carefully scrutinised and at greater risk of rejection—I know the hon. Lady is familiar with that issue.
On flood insurance and amendment 8, which was tabled by the same group of hon. Members, we are clear that we are talking about a one-in-200-year annual loss, not a one-in-200-year flood event. If Flood Re is legally responsible for claims above a one-in-200-year level, the cost of the liability could be prohibitive. Likewise, if the Government took on a liability beyond a one-in-200-year level, we could expose the taxpayer to extremely large and unpredictable costs. In such a catastrophic situation, many more homes than would be insured by Flood Re are likely to be affected. That is why the memorandum of understanding says that the Government of the day would work with Flood Re and representatives of the insurance industry to decide how any available resources should be distributed to Flood Re customers if flooding exceeds such a level.
Government amendment 58 is a technical one. On the issues raised by the hon. Member for Stoke-on-Trent North (Joan Walley), the Chair of the Environmental Audit Committee—we discussed them in Committee—the Government remain convinced that the existing provisions would be helpful enough in terms of the checks on companies’ financial probity and their technical ability. However, she rightly raised issues that could be addressed following Lord Krebs’s intervention in his letter. I am pleased to hear her calling for things such as betterment, meaning better quality reinstatement, and more information to customers, for which Lord Krebs has also called. Many hon. Members would like to include that in discussions with the ABI.
On misconnections, the hon. Member for Edmonton (Mr Love) is aware that local authorities currently have the power. We are not convinced that giving the power to companies would be helpful. His points are on the record and it is right that the Government take account of what he has said. I am happy to talk to him in future to see that we get the right response.
There is only a very little time for me to respond to all the points hon. Members have made on abstraction. My predecessor as Minister, my hon. Friend the Member for Newbury (Richard Benyon), has rightly said that there is agreement in the House that we want progress. Action is taking place under the existing regime—the Environment Agency has changed 77 licences since 2008, returning around 75 billion litres of water per year—but we need to go much further. That is why we are consulting. The process is under way and will lead to legislation, hopefully with the support of all parties, to reform that complicated system. However, we need to do that properly. I do not believe it is appropriate to do it in the way suggested in the new clause.
Finally, Government amendments 55 to 57, which I have tabled, seek to clarify the resilience duty. We want to make it absolutely clear to hon. Members that we are covering environmental sustainability. I hope the changes we are making to the resilience duty will reassure hon. Members who believe that we need to elevate the sustainable development duty that we are looking at environmental resilience as well as social and economic resilience.
Miss McIntosh
We have had a good debate on Flood Re. The Environment, Food and Rural Affairs Committee wanted to flag up the point that the proposals do not reflect the value for money of other aspects of Government policy.
We have also had a good debate on abstraction, but the jury is out. The Bill would be a retrograde step if there is a severe drought between now and whenever the Government introduce provisions.
Obviously, both personally and on behalf of the Committee, I am disappointed that the SUDS provisions will not be in place. The House would wish to record its disappointment and the fact that, if the regulations will be introduced only in April, there is time before those who must apply them are in a position to do so.
However, mindful of the opportunities that hon. Members have had to debate the matter, and that the Bill must continue its passage, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 7
National affordability scheme
‘(1) The Secretary of State must, by order, introduce a National Affordability Scheme for water.
(2) The National Affordability Scheme must include an eligibility criteria, determined by the Secretary of State, in consultation with—
(a) the Water Services Regulation Authority; and
(b) the Consumer Council for Water.
(3) An order under this section—
(a) shall be made by statutory instrument; and
(b) may not be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.’.—(Thomas Docherty.)
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Dan Rogerson
I beg to move, That the Bill be now read the Third time.
I begin by thanking those who have been involved in the Bill. Members of the Public Bill Committee, under the excellent co-chairmanship of the hon. Members for Halifax (Mrs Riordan) and for North Wiltshire (Mr Gray), did an outstanding job of ensuring that critical issues were debated in depth, and the considered amendments that were tabled allowed us to explore several issues in detail. I thank hon. Members on both sides of the House for their contributions over the past weeks and months—and, indeed, today. Members of the EFRA Committee scrutinised the draft Bill, and I was grateful for the continued engagement of current and former members of that Committee during our debates on the Bill, including on Report. The Bill leaves the House stronger as a result of the changes made to the draft Bill before the introduction of this legislation, and the amendments made in Committee and on Report.
The Bill addresses difficult challenges that we all accept that we are facing. Climate change and population growth will place our water resources under more pressure than ever before. At the same time, unfortunately, it is widely recognised that the future holds more frequent and severe weather events. We need to keep bills affordable while addressing those challenges, which means finding new approaches to encourage innovation and greater efficiency in the water industry. We also need an affordable solution to the problem of flood insurance for those at high risk of flooding.
The Bill is just one part of the action that the Government are taking to secure our vision of a sustainable and resilient water sector. It provides a framework for greater competition with the aim of driving more efficiency and innovation. Its measures will ensure a resilient future in which water is available to all at an affordable price, but not at the expense of the environment. It will ensure that there is choice and flexibility for customers and that bills are kept affordable, that there is more innovation in the water industry, and that there are opportunities for new businesses so that the industry continues to attract crucial investment. The Bill will not only protect and improve the environment, but contribute to the growth of our economy.
The Bill will deal with the availability and affordability of flood insurance for households at high risk of flooding, and in the longer term it will ensure a smooth transition to a free market. The most significant change made to the Bill during its passage through the House was the addition of its flood insurance clauses in Committee. I am greatly encouraged by the support for our proposed approach of ensuring that households at high risk of flooding may access affordable flood insurance.
I visited the south-west flooding incident room last week, and I would like to thank all those who are still working hard on the ground to support people following such distressing events. Hon. Members know that our preferred approach on flood insurance is to create an industry-led flood reinsurance scheme. Flood Re will carefully target benefits towards low-income households, who are the people most in need of support during the managed transition to risk-reflective prices. In developing the scheme, we have been mindful of the costs of the levy, which will be spread across all those holding household policies. We believe that our proposals get the balance right, and it also right that we should take powers on a fall-back obligation to ensure that there is certainty for householders.
Just as we want to ensure affordable flood insurance, we also want to make sure that water bills continue to be affordable for everyone, and that has been a recurring theme of the debate on this Bill. We want those who are struggling to pay to get help. All water and sewerage companies have developed packages to help customers with affordability problems, and they include customer assistance funds, support tariffs, debt advice and water efficiency measures. Most water companies are taking action to put social tariffs in place in 2015. The most important thing we can do is make sure that everyone’s bills are kept affordable. Let us not forget that this is a sector subject to price-cap regulation, which means that Ofwat scrutinises and challenges the business plan of all water companies to secure a fair deal for customers. By taking account of lower financing costs, Ofwat estimates that the next price review could significantly reduce pressure on bills from 2015 by between £120 million to £750 million a year. This Bill will contribute to the affordability of bills for all. Measures will exert a downward pressure on bills by encouraging greater competition to keep bills as low as possible.
Greater competition will drive more efficiency and innovation in the water sector. All customers and the environment will benefit from an industry that is incentivised to find the most efficient ways to meet future demand. We are preparing to open the expanded retail market in 2017. Upstream reform will take place at a slower pace because of its increased complexity, which also means that we expect it to be introduced in parallel with longer-term abstraction reform.
In Committee and today, Members raised concerns about making legislation on upstream reform before the abstraction regime has been reformed. Let me assure Members again that we are confident that there are sufficient existing safeguards to prevent an unsustainable increase in abstraction in response to the implementation of upstream reform. We are tackling unsustainable abstraction now by varying and removing abstraction licences, but over the longer term we are committed to making the abstraction regime more flexible and resilient. A consultation on abstraction reform was launched on 17 December and we expect to legislate in the next Parliament.
Improving our approach to abstraction is critical, but it is only one part of our approach to ensuring the long-term resilience of our water resources. Today we amended the Bill to make it absolutely explicit that the new resilience duty is about ensuring the long-term resilience of both our water supply and sewerage services and the environment on which those services depend. I want to make it very clear that this is not about resilience of supply at the expense of our precious water resources. It is about ensuring that we all have enough water for the long term and that our environment does not suffer as a result.
I have no doubt that this Bill will continue to receive thorough scrutiny in another place. I look forward to following those discussions with interest. After that, I am looking forward to the implementation of the Bill. Experts are already working hard on the detailed work to develop new markets in water. The open water programme, which includes Government, regulators north and south of the border, water companies and customers, is developing the practical details of market implementation. It launched its market blueprint consultation last week.
We are also continuing to work with the Association of British Insurers, and I am grateful to it and the rest of the industry for their co-operation and hard work. I reiterate my thanks to all Members and all officials and staff who have aided in the preparation and passage of the Bill, and I commend it to the House.
Miss McIntosh
My hon. Friend will have an opportunity to read our proceedings tomorrow and see the debate that we have had on SUDS. For reasons that the Minister has not rehearsed in full, the SUDS regulations will not be on the statute book by April. I am sure that there are very good reasons for that, including those that my hon. Friend raised, but I do believe that SUDS will have a substantial role to play.
If the flood insurance system leaves out leasehold flats, that will be a matter of concern.
Dan Rogerson
I am grateful to my hon. Friend for giving way on this point, as I did not have the opportunity to deal with it on Report. I assure her that householders living in those sorts of properties would have access to the contents aspects of flood insurance if they were council tax payers.
Miss McIntosh
That will be very welcome news. As I said, I was alerted to this problem after the time for tabling amendments had expired.
What we have seen this week and saw in the weeks running up to Christmas shows the scale of the challenge that we face. I welcome the all-party approach that we have seen across the House today and in Committee, which I was not at liberty to participate in. That is a very good basis on which the Bill can go forward from this House, and I commend it to its future stages.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Waveney (Coastal Flooding)
Dan Rogerson Excerpts(10 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Thank you, Mr Deputy Speaker, for calling me to respond to this important debate. I congratulate the hon. Member for Waveney (Peter Aldous) not only on securing it, but on how he opened it and the measured way in which he raised issues that are important to his constituents and others across the country who either were affected by the surge or, as he pointed out, escaped being affected this time but are concerned that we prepare for future events.
The coastal surge that struck the eastern coast of England on the night of 5 and 6 December was a significant flood event. It was the largest surge since 1953, and in several places the water height exceeded that experienced 60 years ago. It caused flooding to about 1,400 properties and some damage to infrastructure. I know all our thoughts are with those whose homes and businesses were damaged during these powerful storms. However, through investment by Government, and improvements to the way we manage this type of flooding, we were able to protect up to 800,000 properties countrywide that might otherwise have been flooded.
As my hon. Friend the Member for Waveney pointed out, there was a multi-agency response to this event, with all relevant authorities pulling together to protect people and their property. I am grateful for the excellent response from our front-line emergency services, including the police, the fire services, the Environment Agency and, of course, local authorities, as well as all the volunteers who assisted. They all worked tirelessly to respond to the surge, both as it happened as well as in the ensuing recovery effort.
Mr Douglas Carswell (Clacton) (Con)
In Essex, we all acknowledge how well Tendring district council and Essex police did—they did a fantastic job in organising the evacuation of Brooklands and Jaywick. Thousands of people were moved; it is to the great credit of people in Jaywick and Brooklands that thousands of people were moved with such minimal fuss. Does my hon. Friend accept that absolutely key to the whole process was the fact that the Environment Agency put the information out in the public domain early? By mid-afternoon, it was available through mainstream media and, in particular, social media, which allowed people to take responsibility and act responsibly. Often, they did not need the authorities to do things for them because they were able to make arrangements themselves. That shows a key way to move large numbers of people quickly and safely in future.
Dan Rogerson
I am grateful to my hon. Friend for that intervention. I visited his constituency on the Sunday after the events, as he knows, and I was very impressed with the feedback I received from local residents about how the evacuation had proceeded and how reassuring it was for them, with everything well handled. I spent some time with Dr Charlie Beardall, whom my hon. Friend the Member for Waveney mentioned, and with officials from Tendring council, who talked about not only the response to the events, but how they were engaging with our programme for partnership funding to ensure that further defences in that part of the coast can be brought forward. I shall say more about that.
As well as the agencies I have mentioned, I would like to praise the work of the Flood Forecasting Centre, run by the Met Office and the Environment Agency. More than 160,000 homes and businesses received a flood warning, as my hon. Friend illustrated from his own constituency, and they received advice in advance to enable them to put the flood plans into action.
Nationally, the Environment Agency issued 71 severe flood warnings, five of which were for the Waveney district. Emergency service partners were aware of the event 36 hours in advance of the tide, and strategic goal controls were established in Norfolk, Suffolk and Essex on Wednesday 4 December. Those remained in place throughout the event. The combination of accurate forecasting and extensive planning and preparation allowed us to co-ordinate the response to ensure the focus was on protecting communities at risk and the key infrastructure that supports them.
The extremely severe conditions were caused by a rare combination of factors: very low atmospheric pressure over the North sea, causing the sea level to rise, which, combined with the high astronomic tides and gale force winds, resulted in a tidal surge of unprecedented sea levels on some parts of the coast. The extreme conditions put sea defences to their greatest test in 60 years, with record tidal surge levels experienced at many locations along the entire length of the east coast. In Lowestoft, the record high tide, or the recorded high tide, was the same as in 1953, and over half a metre higher than the more recent surge of November 2007.
With the changing climate, there is more of a risk of extreme weather events. According to the climate change risk assessment, the probability of coastal flooding is projected to increase as the climate changes. I assure the House that the Government, in this and all their policies, take full account of the potential impact of climate change on our flood defence strategy.
Let me refer to a number of important local aspects that my hon. Friend has raised. Our thoughts are, of course, with the family and friends of Mr Robert Dellow, who tragically lost his life as a result of the high winds. I pay tribute, too, to Malcolm Gibbs, Danielle Bailey and, indeed, the customers of the Oddfellows pub and the Eastern Daily Press for all they did to help the community recover.
As for the local impact, the latest Environment Agency estimate suggests that 87 properties were flooded in the low-lying centre of the commercial heart of Lowestoft. The area of Oulton Broad, which lies at the western end of Lake Lothing in Lowestoft, also suffered a second inundation by flooding from the River Waveney, some two hours after the initial tidal surge. The road crossings at the bascule bridge and Mutford lock crossing were both closed, effectively cutting Lowestoft in half. Flooding also resulted in the closure of the A12 at Blythburgh. Rail services between Lowestoft and Norwich and between Lowestoft and Ipswich were disrupted as a result of flooding at Lowestoft Central station and damage to the signalling network. The Lowestoft to Ipswich line remained closed some 11 days after the tidal surge.
Further south in the constituency, there was limited flooding at a number of locations in the Blyth estuary. Recent defences protected the vast majority of properties in Southwold. It was confirmed that seven commercial and three residential properties had been flooded in Southwold and the surrounding marshes, while 133 properties in the town had been protected from flooding. My thoughts go out to all who have been affected by the floods: it is especially difficult for them in the run-up to the season that we are about to celebrate. The internationally important designated coastal habitats between Lowestoft and Southwold were all subject to breaching of the fragile sand and shingle barriers that offer them limited protection, but the Environment Agency has inspected the sites and expects the barriers to repair themselves naturally over the next few tides.
The principal coast protection authority in the Lowestoft area is Waveney district council, while other defences are maintained by Associated British Ports, the harbour authority. The Environment Agency has worked closely with the council’s engineering staff throughout the event and its aftermath. The damage to defences has been assessed and appears to be relatively minor except on Lowestoft south beach, where more detailed engineering assessments are still taking place. Separately, Suffolk county council has been preparing a flood alleviation scheme for sections of the A12 that were flooded at Blythburgh. The scheme is expected to become operational in 2014. There are 550 properties that lie outside Lowestoft in the Waveney valley. The Environment Agency has spent approximately £12 million on strengthening flood defences along the valley over the past 10 years under the Broadland flood alleviation project.
During the event itself, a number of people were temporarily re-homed, and advice has been offered to businesses and householders. A multi-agency information centre has been established in the worst-affected area. The district council has removed damaged goods and possessions free of charge, and has granted rate and council tax relief to affected properties. The multi-agency response to the surge is now focusing on recovery, and the Secretary of State for Communities and Local Government has set up a Bellwin scheme to reimburse local authorities for their immediate costs caused by the storm surge. My hon. Friend asked about the configuration of the scheme. As he will appreciate, such matters are for the Department for Communities and Local Government, but his comments are on the record, and I shall ensure that they are conveyed to those at the Department so that they can respond to him.
The Government have begun the process of discussing with all local authority areas affected by the flooding what further help they need to ensure that they can get back on their feet quickly, and we stand ready to assist where we can do so. Waveney district council has already notified the Department for Communities and Local Government that it has in mind a potential claim under the Bellwin scheme.
Nic Dakin (Scunthorpe) (Lab)
Can the Minister reassure Waveney district council, North Lincolnshire council and other councils that they will not be out of pocket as a result of having supported their communities following this natural disaster?
Dan Rogerson
As has been made clear, measures in the Bellwin formula enable the Government to reimburse councils. As one who represents an area that has been flooded, I have seen how the system operates. For example, there are always different implications for two-tier and single-tier local government areas. The Department for Communities and Local Government takes those issues very seriously in its interaction with councils, and it will be discussing with councils what is necessary in this instance.
Local resilience forums and the various front-line responders all along the east coast have been planning and preparing for an event such as this for some time. A prime example is the east coast flood framework document that was published in January this year, which sets out local response arrangements. It was prepared by a wide range of local authorities and other front-line responders, including those in the Waveney constituency, working with central Government to ensure alignment with wider national resilience planning. It is testimony to their efforts that the impacts, although, as we have heard, devastating for those directly affected, are on a much smaller scale than those of the comparable coastal flooding event in 1953. However, there are always lessons to be learnt from our response to events such as this. I assure the House that the Government will review their approach, and that we will improve our planning and preparedness accordingly.
Flood management is a top priority for the Government. It has a vital role to play in protecting people and property from the damage caused by flooding and in delivering economic growth and supporting a strong economy. I was particularly impressed, when I visited Clacton, to hear about its plans to use the flood defences to restore the sandy beach, which should also have economic benefits. There is a clear case for investing in flood defences not only because of the economic risks attached to flooding but because of what they can bring to the local economy. That is an excellent project. I know that the situation in Lowestoft is being considered, as my hon. Friend the Member for Waveney has outlined, and I look forward to hearing about the proposals for its flood defences. Commitments have been made by local partners to invest in them, and that will no doubt make the case for investment in the scheme even better.
Dr Thérèse Coffey
I thank the Minister for his response so far. Will he also lobby the Department for Communities and Local Government on the use of the coastal communities fund, which exists to promote jobs and growth, to see whether funds could be made available to improve flood defences, which could protect existing jobs as well?
Dan Rogerson
My hon. Friend makes a good point about the pots of money that are available for local communities. Sometimes a case can be made for linking them to various projects. I have learned about a case in the past week for investment in economic growth to be joined with work on flood prevention. It is an excellent example—
Waste Prevention Programme for England
Dan Rogerson Excerpts(10 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Today I am announcing the publication of the waste prevention programme for England. The programme fulfils a commitment in the 2011 Government review of waste policy in England.
Preventing excess waste from arising delivers environmental, economic and social benefits, and is key to moving towards a more sustainable economy. The programme demonstrates the benefits of reducing waste, making the link to wider work on resource efficiency and sustainable consumption and production. It sets out the aims and priorities, along with actions businesses, the wider public sector, civil society and consumers can take to benefit from waste prevention.
Many individuals and organisations are already taking action to reduce waste, which is highlighted in the programme. To encourage further action, we will support change in a number of ways. For example, we will bring industry together under a new sustainable electrical action plan to catalyse action and seek commitment on designing products for optimum life. Alongside this, we are supporting pilot projects and trials of takeback and hiring and leasing schemes to demonstrate the benefits of resource-efficient business models and supply chain innovation.
Supporting and making it easy for individuals to take action is equally important. We are developing a two-year, £800,000 scheme to support communities to take forward innovative waste prevention, reuse and repair activities. We will also develop a web-based postcode locator to provide a practical tool to enable householders to find their local reuse and repair services.
Specific actions for Government are highlighted and we will lead by example by continuing to reduce waste across the public sector and using Government buying standards to support cost-effective sustainable procurement. The programme does not propose any new regulation. It also fulfils a requirement of the revised waste framework directive (2008/98/EC).
At the same time as publishing the programme, we are also publishing:
An evaluation of the usefulness of measures identified in the revised waste framework directive along with a summary of existing activities.
A summary of the responses received and the Government response to the call for evidence and consultation published earlier this year.
An overview of evidence used to produce the programme.
As waste is a devolved matter, Wales, Scotland and Northern Ireland have developed their own programmes.
Further information on the programme is available on the Government website.
Water Bill
Dan Rogerson Excerpts(10 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Government amendments to the Water Bill on flood insurance have been published today.
An updated impact assessment has also been published and a commentary document which provides further details of the intended effect of the amendments. Copies of these documents will be placed in the Libraries of both Houses.
The Government response to the public consultation on flood insurance undertaken during the summer was published on 18 November.
Water Bill
Dan Rogerson Excerpts(10 years, 6 months ago)
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Thomas Docherty
If the hon. Lady shows a bit of patience, she might hear more detail from us than we heard today from the Secretary of State.
The previous Labour Government passed legislation that allowed the water companies to introduce their own schemes. Those companies had assured the country that they were keen to do so, yet almost four years after that legislation was passed, how many of them have kept their promises? How many water companies have developed a scheme within their region? How many of those fat-cat boards have put even a fraction of their obscene profits into the pockets of the hardest hit households? Just three out of 20 of the most successful and profitable companies in the country have lifted a finger to help their customers. It is no wonder that the most charitable description of the system, as offered by Citizens Advice, is “ad hoc”.
What did we hear from the Secretary of State today? What was his response to corporate failure and what was his proposal to help customers? He has written a second letter to his friends, the water bosses, not to demand real action but to make a helpful suggestion. He does not believe in Government intervention. No matter how much the market fails and the companies drag their feet and how many customers cannot afford the inflation-busting prices, this is a Government who do not believe that they should act. We on the Labour Benches do not share that belief. We believe that when fat-cat bosses will not act, the Government must.
As my hon. Friend the Member for Garston and Halewood (Maria Eagle) said, we will introduce a national affordability scheme. I welcome the points made by my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck), who has been a constant champion of hard-pressed customers in the south-west region. Along with other Members, she raised the subject of flooding and flood insurance, which is an important issue. We share the concerns of many Members from across the House about both flood defences and how households can secure affordable insurance. The latest figures from the Environment Agency put the cost of damage to property in the past year at £277 million, almost £200 million of which was household damage.
We heard an excellent speech from the Chair of the Environmental Audit Committee, my hon. Friend the Member for Stoke-on-Trent North (Joan Walley), who highlighted the problem eloquently. The Chair of the Environment, Food and Rural Affairs Committee, the hon. Member for Thirsk and Malton (Miss McIntosh), highlighted the important and often overlooked issue of surface water run-off. The Opposition welcome the principle behind the proposed new scheme, Flood Re, but like the Select Committee we have serious and legitimate concerns about the fact that the Bill contains only one clause on that matter.
My hon. Friend the Member for Kingston upon Hull North (Diana Johnson) spoke from the heart about the problem of flooding. I am sure that the House would acknowledge that she has been a champion for her city, and I hope the Minister will provide real answers to the important issues that she raised.
I understand that Ministers are hastily drafting new clauses even now, but they must be adequately scrutinised. The issue has been raised by Members on both sides of the House, so will the Minister give a firm undertaking that the new clauses will be tabled in time to be reviewed adequately in Committee? Will he assure the House that such crucial amendments will not be rushed out at the last minute without due scrutiny?
We also heard from Members on both sides of the House about the tax paid by the water companies. As my hon. Friend the shadow Secretary of State has already said, it is simply unacceptable for water companies to make £1.9 billion in pre-tax profits and pay out £1.8 billion to shareholders. That is why we need to give the regulator broader powers to step in to protect customers and to ensure that fat-cat companies play by the same rules as other businesses. We want to ensure that excess profits, rather than heading to shareholders’ pockets, are used responsibly to reduce bills and improve infrastructure such as the Thames tunnel.
The hon. Member for Broxbourne (Mr Walker) mentioned abstraction. Not for the first time, he raised his concerns about the damage to chalk streams and asked whether I would set out our party’s position on the environmental impact issue. I am always keen to oblige him, so let me set out clearly our view of the crucial need for environmental mitigation. Even when the Government have tried to introduce reform, they have failed to follow through. As the Environment, Food and Rural Affairs Committee has warned repeatedly, a half-baked proposal to introduce upstream competition without proper abstract reform is worse than the status quo. As the WWF warned today,
“The licence system is completely broken, unsustainable and out of date”.
Why have the Government ended up in that mess? As in so many other cases where the Government have decided that something is difficult, tricky or requires them to act, they have just pushed this off. It should be no surprise that the Secretary of State ideologically opposes any Government action, but I wonder why the Minister responsible for water, the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for North Cornwall (Dan Rogerson), has simply gone along with his boss’s laissez-faire attitude to our natural environment. Simply to promise, as Ministers apparently have, that the Department will do something in the next Parliament shows a lack of credibility.
Let me be clear: if Ministers have found thinking of solutions too hard, they should postpone all upstream reform until we have Ministers and officials who will stand up to the vested interests who are damaging our rivers.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
I am grateful to the hon. Gentleman for giving way, and I look forward to debating many of these issues with him in Committee over the coming weeks. I am struggling to follow his argument. He says that there is an issue with abstraction reform and that we should press ahead and do something now, but his solution otherwise is to delay the whole process and not to consider any kind of reform of the industry. That seems to be his argument.
Thomas Docherty
Oh dear me; the Minister has obviously forgotten his own position. He will still be a member of the Environment, Food and Rural Affairs Committee for a little longer, so perhaps he can set out which side of the argument he agrees with—that expressed by the Select Committee of which he is a member or that in his new role as a Minister.
The hon. Members for Arfon (Hywel Williams) and for Newbury (Richard Benyon) mentioned retail competition, and the Opposition support non-domestic competition. It has been a success in Scotland, and like the Select Committee of which the Minister is still a member, we believe that, implemented properly, it will work in England. Like the Committee, however, we think there are technical improvements that we intend to explore further in Committee.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
I particularly welcome that last comment from the hon. Member for Dunfermline and West Fife (Thomas Docherty) and I look forward to discussing some of these issues in Committee. I thank all hon. Members for their participation in this interesting debate, which has been well informed. Hon. Members have covered a number of aspects of the Bill and, as it is a debate on Second Reading, some things that they would like added to the Bill. I will try to cover as many of those issues as I can.
I start by responding to the closing remarks from the hon. Member for Dunfermline and West Fife. He dangled the prospect of something to do with affordability and helping people with their bills. I was in the House in the previous Parliament when constituents throughout the country and particularly in areas such as mine in the south-west were facing a real challenge, as the hon. Member for Plymouth, Moor View (Alison Seabeck) pointed out. I had meetings with the hon. Gentleman’s Front-Bench colleague who is no longer in his place, the hon. Member for Ogmore (Huw Irranca-Davies), and we debated these issues. It was felt that nothing could be done. It was a very difficult problem. What we had from the previous Government was a series of reviews, some of which were good, well informed reviews that made a number of suggestions, but it has taken this Government to act upon them. That is the difference between the Government and the Opposition.
The hon. Member for Dunfermline and West Fife says that he will not oppose the Bill today. That is encouraging, and I look forward to working at that level of consensus to deliver the aspects of the Bill that will assist many of our constituents around the country, as well as updating the framework around the water industry for the future and dealing with the flood insurance issues, to which I shall return in a little while. These are hugely important issues. As a Member for an area where water issues have been a live topic of debate and as a member of the Select Committee, as the hon. Gentleman helpfully pointed out, I am all too aware of the range of challenges that we face, from the cost of living for hard-pressed families to future pressures on water resources and flooding. We heard many contributions about those issues.
I have witnessed at first hand the environmental benefits that investment in the water sector have delivered over the past 24 years since the industry was privatised. I could raise some issues about how that occurred at the time. My hon. Friend the Member for South East Cornwall (Sheryll Murray) sought to give us a history lesson about the political balance in Cornwall and what that may or may not have delivered. There were no proposals to deal with the lack of affordability in the south-west until the coalition Government came in. Single-party Governments of both stripes did not deal with the problem, so I leave hon. Members to draw their own conclusions on what might have led to the change.
Ian Swales
We heard about the real-terms cut applied by the previous Government. Do we know the average annual value of that cut?
Dan Rogerson
We saw bills cut for a period, but then they went back up again. If we talk to our constituents about their memories of water bills over the past few years, both in the run-up to the general election and since in the price review period presided over by the previous Government, we will hear that their experience was that bills were rising.
On the environmental benefits since privatisation, we have seen huge improvements—for example, in bathing water quality—and that is very much to be welcomed and something that we should dwell on. We have had the opportunity to consider how that progress has been made. Of course, we will see further challenging regulation on bathing water quality in future, so it is absolutely vital that the industry, along with everyone else in the community who can influence water quality, is ready for the challenge, to make it even better.
The Bill seeks to look at market reform, because we need water supplies that are resilient to future pressures, while keeping bills affordable and, indeed, minimising the impact on the environment. That is competition not for the sake of it, but to drive greater efficiencies in the water industry and encourage more innovation. The benefits to business customers are obvious: more choice, better customer service and packages tailored to their needs.
All customers, including householders, will benefit from an industry that is incentivised to look for the most efficient way to meet future demand. We know that that works in practice. Last week, I visited a housing development in Rissington in Gloucestershire, where Albion Water—a new entrant—is supplying water and sewerage services. With its innovative solutions, it can provide separate supplies of drinking water and recycled greywater to houses in the development. It can therefore compete successfully against the incumbent water company on price, while reducing daily drinking water consumption by nearly half. That is evolution, rather than a radical overhaul.
Since privatisation, the industry has been successful in bringing in investment, which has delivered huge improvements, as I have mentioned. We have a strong and stable regulatory regime and no intention of disrupting it. That is why we are working closely with the industry to develop future markets.
Market reform is understandably of great interest to hon. Members. They want to know about it from both perspectives: they are concerned in some cases that we might be going too far, and in others that we might not be going far enough. Some Members, such as my hon. Friend the Member for St Austell and Newquay (Stephen Gilbert), are keen to see competition in the residential sector, but we want to ensure that the change that we introduce is proportionate and that we proceed on a good evidence base. We can learn from the experience of Scotland, where business customers and non-domestic customers increasingly benefit from competition, so we know that the system can work. Competition in the residential sector would be a huge change, so we would have to come to anything that we wanted to do in that area at a later date. However, I take on board my hon. Friend’s comments and am reassured that he is observing that.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
At least half my constituency is supplied by Thames Water. There are consistent rumours that it is thinking about forcing all its customers on to water meters. Will the Bill make it easier for Thames Water to do that?
Dan Rogerson
Companies in water-stressed areas will be able to push people towards meters. Of course, new properties are customarily metered now, as a result of existing legislation. As we have heard today, there is a range of views on whether metering is desirable. Certainly, with regard to managing a scarce resource, it is desirable, but we must carefully examine the implications, such as the cost of the investment needed to install meters and the impact on bills, because there are always winners and losers. We need to look at that closely, as we move forward.
Mr Charles Walker
The population of this country is forecast to grow by 8 million or 9 million, and most of that growth will be in the east and the south-east. The problem is that the Bill simply does not address what we are going to do with these people and how we are going to provide them with water. We need more reservoirs.
Dan Rogerson
I agree that, as my right hon. Friend the Secretary of State said, we need to capture more of this water and make it work for us in such a way that we can improve environmental outcomes as well as resilience. That is very much what we want to happen.
Miss McIntosh
In terms of capturing water, is my hon. Friend going to deal with SUDS and surface water, because I know that he will care as passionately about this in his new position as he did when he was a member of the Select Committee?
Dan Rogerson
I had a premonition that I might get such an intervention from my hon. Friend, the Chair of the Select Committee. I know she is pleased that we are, as a Government, making progress towards implementing this process in April 2014. She would like it to be sooner, but we have to make sure that we get it right. The views of the Select Committee have been very useful in making sure that we get it brought in adequately.
We heard a couple of very specific questions on market reforms. My hon. Friend the Member for St Austell and Newquay asked about small charities that operate from residential properties. The reform would affect non-domestic properties, so if a charity is operating from a property that is primarily residential, it will not have access to it, but it will be open to it if it is operating from other premises.
On abstraction reform, I entirely agree with Members’ comments about the need to tackle abstraction, which is damaging our rivers. We are tackling this in two ways. First, we are taking action using the tools already available to address over-abstraction. The Environment Agency has reviewed thousands of abstraction licences and has changed about 80 of them, returning 75 billion litres of water per year to the environment in England. That is equivalent to the annual average water use of a city larger than Birmingham. There is clearly a lot more to do in the individual catchments that have been mentioned, and we have to take account of the stress that is put on them.
The Bill will also help by removing water companies’ right to compensation to ensure that the funding of these schemes moves into Ofwat’s price review process, which is a far better way of tackling over-abstraction. In the longer term, we need a reformed regime fit to face the future challenges, and we will publish a consultation on possible options in December. [Interruption.] These reforms will affect a range of businesses, so we need to get them right.
George Hollingbery
An awful lot of gibbering and jabbering and yibbering and yabbering is going on on the Opposition Front Bench. Will the Minister please remind us of how much abstraction reform occurred in the 13 years of the Labour Government just past?
Dan Rogerson
Very little, I think is the answer. I thank the hon. Gentleman for his intervention.
Dealing with abstraction gives me an opportunity to welcome the contribution by my predecessor, the hon. Member for Newbury (Richard Benyon), not only because of all the work that he put in and how he has informed our debate, but because by seemingly being very popular across the House he will make it much harder for anyone to oppose what is in the Bill, as it was his work that got us to this stage. I am sure that that will help to develop the consensus, because everyone agrees with the conclusions he drew and the position we are in. The Government are clear that any moves on abstraction and upstream reform must work together, so what we are establishing in the Bill will come into effect alongside the abstraction reform that we are moving towards. We have to get this right because it is crucial that we have the water resources to deliver the growth and environmental outcomes that we want to see.
Many Members covered flood insurance. I am all too aware of the devastation caused by flooding and its financial and emotional impact. I recall the destruction in Boscastle in my constituency. I became the Member of Parliament for North Cornwall a year after that tragedy, where fortunately no lives were lost. It also affected other nearby communities such as Crackington and Canworthy Water. The problem was that flood insurance companies were not up to the task. Fortunately, the Association of British Insurers was able to step in to offer advice and to help resolve the issues. As we have heard, other Members have similar recollections from their constituencies.
Flood risk management remains a top priority for this Government. We have committed record levels of capital spend and more than quadrupled contributions from other sources. As a result, we will have improved defences for 165,000 households by March 2015 and an extra 300,000 by 2021. I recently visited South Zeal in Devon, where residents shared with me their harrowing experiences of flooding. They also showed me the actions the community is taking to become more resilient to flooding, to keep down their insurance premiums in the long term. This Government are committed to providing access to affordable insurance for households at high risk.
We will table new clauses in Committee. Draft clauses have been available for some time and much of our work in Committee will be based on them. Were we to delay the Bill after this Second Reading debate, we would not be able to deliver our programme in a timely fashion. That is our objective. Yes, it is regrettable that those clauses are not in the Bill as drafted, but these are very complicated negotiations to ensure that an industry-led solution works not only for the industry, but fundamentally for communities and residents who need support.
Thomas Docherty
The Minister has given an undertaking that those new clauses will be available for scrutiny by the Bill Committee next week. Will he say, once and for all, whether those 20-odd clauses will be available in time for the Committee adequately to review them next week?
Dan Rogerson
It is my intention that they will be available for the Committee to look at as soon as possible, but we have to get them right and make sure that they deliver what the Government and my predecessor agreed with the industry, so that we deliver effectively.
Alison Seabeck
I thank the hon. Gentleman for giving way; he is being very decent with his time. Will he confirm that the new clauses will be available for the witness sitting, which will take place before the Committee considers the Bill? Will he make it clear that they will be available for the witnesses and not just the Committee?
Dan Rogerson
We would be much further forward had the previous Government done some of this work before they left office, but we have had to act on what we inherited, which, sadly, was very little.
Members have raised a number of other issues, including the use of council tax banding. I hope that all Members accept that that is a way forward. It may have some problems around the edges, but fundamentally it is the right approach. It is not my intention to move away from what was originally agreed, although the hon. Member for Cardiff North (Jonathan Evans) has made a case on behalf of his all-party group and Members who have an interest in issues such as band H and the 2009 cut-off.
The hon. Member for Kingston upon Hull North (Diana Johnson) made an impassioned plea, understandably, for her constituents and the issues faced by communities such as Hull, which is constructed in such a way that it has historically been subject to flooding. My hon. Friend the Member for Wells (Tessa Munt) pointed out similar issues with her rural constituency. The agreement takes forward the work that was already in place. The hon. Lady set out the argument—although she came to a different conclusion from ours—that we do not wish to incentivise more building in areas prone to flooding, which explains the 2009 cut-off. The Government will respond to any argument for change, but our current view and, indeed, our agreement with the industry—which is, crucially, at the heart of this—is that that is the right way to proceed.
Dan Rogerson
I am sorry, but the hon. Lady has not been present for most of the debate and I need to make progress.
The Chair of the Environment, Food and Rural Affairs Committee raised the issue of state aid. We have made it clear that aspects of Flood Re will count as state aid, so under competition rules we will need to seek approval from the Commission. We have been in communication with it and will start, along with the ABI, the formal notification process in 2014.
As we have heard, the aspiration of all this is to move to a free market over the next 25 years. Part of that involves seeking to continue to invest in flood defences and their maintenance, which I have already talked about, and looking at property-level protection schemes to ensure that they can be insured.
Hon. Members have mentioned uninsurable properties. I want to make it clear that no property will be seen as uninsurable initially, but if a property is repeatedly flooded, issues may arise that the scheme will have to take into account as we move forward. Certainly, the expectation is that all properties will initially be covered.
In relation to the impact on bills, a crucial part of the agreement was to get a limit on the proposed industry levy of £10.50 for a combined policy. The ABI thinks that that reflects existing levels of cross-subsidy for high flood risk, but it can of course be set out far more transparently. As I have said, I hope to table the flood clauses as early as we can in Committee, but we have to make sure that they are ready for debate.
We have sought to be as helpful as we can on the issues raised by members of the all-party group. I hope that consensus on a solution that works for those under threat of flooding and that is affordable and deliverable for the industry means there will be support for the proposals as a whole.
Richard Benyon
Before the Bill goes into Committee, may we lay one myth to rest? We can probably all point to developments in our constituencies that should never have taken place, but the fact is that in 97% of the times that the Environment Agency has objected on flood risk grounds in recent years, developments have not gone ahead. If hon. Members are honestly saying that no developments should ever take place in flood risk areas, there would be no more developments in Hull, London and York. We have to make sure that such developments are the right ones.
Dan Rogerson
My hon. Friend is absolutely right. House building has not been at its fastest recently, so the vast majority of properties in this country were built before the cut-off date, which ensures that there is affordable coverage for those who need it.
The Chair of the Select Committee made a point about sharing benefits data with water companies, as did the hon. Member for Plymouth, Moor View. We have to be careful because those data are very sensitive, and sharing them with the industry would currently be illegal. We can look at that, and the Select Committee has made recommendations, but we must get it right.
Thomas Docherty
The Minister is obviously talking about bits of the Bill that do not yet exist and which the House has not seen. A few moments ago, he said that capital expenditure had gone up. It might help him if I point out that there has been a drop of £96 million this year compared with the situation that the Government inherited in 2010. We want to place on the record the accurate figures, rather than those given to him by his civil servants.
Dan Rogerson
Over the spending review period as a whole, the investment will be bigger, and we will see the numbers climbing over the coming spending review period as well, by up to £400 million a year by 2021.
Several hon. Members raised the issue of bad debt, and rightly pointed out that some companies are better than others. We of course want all companies to aspire to do better. To return to the points made by my right hon. Friend the Secretary of State, we now have a far more vocal and effective regulator than we have had for some time. On issues of bad debt, affordability and company transparency, which matters to many right hon. and hon. Members, the expectation on companies to deliver is now much greater. I want to make it clear that many companies are doing a good job, investing money and delivering for customers, but where there are problems, the regulator will tackle them. My right hon. Friend set out absolutely clearly in his letter to the companies his expectations for the industry. The Government are supporting the regulator to carry out the work that is necessary.
Joan Walley
In the remaining six minutes, will the Minister say whether he is minded to consider that the regulator should have a duty in respect of sustainability as a primary function, which has been raised by many Members?
Dan Rogerson
I am happy to consider that. The case for such a duty has been made by Members on both sides of the House. The clear gain that we want is for Ofwat to have an additional duty in respect of resilience, for all the reasons that we have given. We want to incentivise the water industry to have long-term solutions to the problems that face it, rather than moving from price review period to price review period. We want to encourage continued investment in solutions that involve retaining water for use, rather than abstraction-based solutions. We want to incentivise investment in the best environmental solutions.
Ofwat already has a duty in respect of sustainable development. We have received legal advice that, regardless of whether that is a primary duty, there is a duty on Ofwat to take sustainability into account. Were we to make that a primary duty, we would perhaps not be able to bring in the resilience duty that we want. We will consider that issue and I am sure we will return to it in Committee, because a number of hon. Members have said that they will raise it. At the moment, we think that there are dangers in elevating the sustainability duty above the resilience duty. If I can be convinced that there is a way to deliver both, I will be happy to listen, but I want to ensure that we have resilience.
A number of other detailed issues have been raised. My hon. Friend the Member for Newton Abbot (Anne Marie Morris) spoke about park homes and I am meeting her this week to discuss the matter. I will be pleased if we can make progress on it, but there are issues with the way in which they take their water from an intermediary, as she pointed out. Canals were mentioned. We have discussed the Canal & River Trust on the Floor of the House in Question Time. I am happy to meet the hon. Member for Stoke-on-Trent North (Joan Walley) and other hon. Members to discuss that issue.
I am grateful that we have had so much time to discuss the issues and to get them out in the open. We have talked about the need to keep water available and affordable, and to continue to improve the environment. We have also mentioned the uncertainties in our water supply and the pressures on it, such as unpredictable weather and the growing population. We have a responsibility to ensure that we use our water wisely, to protect it and to ensure that there is enough for future generations. That is why we are taking action now. I am grateful for the support of Members from all parts of the House. I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second Time.
Water Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Water Bill:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 17 December 2013.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.—(Mark Lancaster.)
Question agreed to.
Water Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Water Bill, it is expedient to authorise the payment out of money provided by Parliament of:
(1) any expenditure incurred under or by virtue of the Act by the Secretary of State or the Competition and Markets Authority; and
(2) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Mark Lancaster.)
Question agreed to.
Water Bill (Ways and Means)
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Water Bill, it is expedient to authorise:
(1) the inclusion in sewerage licences of conditions requiring the payment of sums to the Water Services Regulation Authority,
(2) an extension of the cases in which a penalty may be imposed under section 22A of the Water Industry Act 1991,
(3) an extension of the cases in which a penalty may be imposed under section 111 of the Enterprise Act 2002 as applied by section 17M or 17Q of the Water Industry Act 1991,
(4) the charging of fees for providing copies of, or data comprising, all or part of the main river map for England,
(5) the conferring of powers on the Secretary of State to make regulations requiring insurers to pay levies or make contributions for purposes relating to flood insurance, and
(6) the payment of sums into the Consolidated Fund.—(Mark Lancaster.)
Question agreed to.
National Forest Company (Triennial Review)
Dan Rogerson Excerpts(10 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Today I am publishing the report of the triennial review of the National Forest Company (NFC) which was launched on 12 July 2013, Official Report, column 53WS. Triennial reviews of non-departmental public bodies (NDPBs) are part of the Government’s commitment to ensuring accountability in public life.
The National Forest Company was set up in 1995 to oversee the creation of the National Forest—a multi-purpose forest across 200 square miles of the midlands. The NFC’s work plays an important part in realising the objectives of the Government’s forestry and woodlands policy statement (2013)—“protecting, improving and expanding” woodland assets, with its emphasis on economic growth and creating a woodland culture.
The review concludes that the NFC is the most appropriate body to continue to lead the creation, management and evolution of the National Forest and that it should remain as an NDPB.
In the longer run, the Government and NFC share the aim of a staged progression towards independence of the NFC from Government. This would see a viable and sustainable organisation passed from Government into the third sector and enable innovation and enterprise to be pursued with greater freedom. The NFC’s new 10-year strategy (2014-24), due to be published in summer 2014, should set out how the company will move towards independence.
To support the move toward independence, the NFC should set out how it will increase the use of wider funding sources. As part of this, the review has concluded that the NFC should undertake further work on the potential for further integration with the National Forest Charitable Trust (NFCT), including a possible merger, and taking on charitable status. The NFC and DEFRA should agree a decision on possible integration with the NFCT and charitable status once this further work has been carried out and a decision should be announced next year, ahead of publication of the NFC’s new 10-year strategy.
The review also concluded that the NFC should ensure that there is sufficient local representation in the NFC’s governance processes and that its future governance structures are as effective as possible.
The report of this review will be published online, and copies will be placed in the Libraries of both Houses.
Oral Answers to Questions
Dan Rogerson Excerpts(10 years, 6 months ago)
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Karen Lumley (Redditch) (Con)
1. What assessment he has made of the importance of broadband to the rural economy.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
The UK broadband impact report, undertaken by analysts SQW, was commissioned by the Government and published on 14 November. It looks at the economic, environmental and social benefits of superfast broadband, including in rural areas. The report estimates that the net annual gross value added impacts for the UK attributable to faster broadband speeds will rise to about £17 billion by 2024, of which approximately £4.6 billion will accrue to rural areas.
Karen Lumley
Given the importance of small and medium-sized enterprises in the rural economy, will my hon. Friend inform us what support the Government are providing for superfast broadband, especially in places such as Hanbury, the Lenches and Inkberrow in my constituency?
Dan Rogerson
I absolutely agree with my hon. Friend about the huge value of broadband in rural areas, particularly to the small and medium-sized enterprises that are so important to the rural economy. The roll- out of broadband to all rural communities across the country is a top priority for us. The Government’s current £530 million rural broadband programme will ensure that 90% of the country has access to superfast speeds. The Government recently announced an extra £250 million investment to extend superfast coverage to 95% of premises by 2017. Together with the industry, we are exploring how to expand coverage further, using more innovative fixed wireless and mobile broadband solutions to reach at least 99% of premises in the UK by 2018.
Andrew Stephenson (Pendle) (Con)
17. I recently met the managing director of ELE Advanced Technologies, a fast-growing, mid-sized engineering business based across two sites in Colne in my constituency, one of which is in a particularly rural area. It could grow even faster with better broadband connections between the two sites. Will my hon. Friend assure businesses in Pendle, such as ELE, and those in other rural areas that they will not be left behind under this Government?
Dan Rogerson
My hon. Friend is absolutely right to ensure in his discussions with local delivery bodies that the projects now being put in place by the Government are delivered effectively in his local area. If he has any concerns about that, I will of course be happy to take that up locally.
Jason McCartney (Colne Valley) (Con)
18. Towns in my constituency, such as Hade Edge and Marsden, are still struggling with poor broadband provision. Does my hon. Friend agree that with snow coming and threatening to cut off businesses in such rural communities, strong broadband connections are vital for our local rural economies?
Dan Rogerson
I absolutely agree with my hon. Friend that broadband is crucial for the future of the rural economy. He sets out that if other communication links are cut for any reason, businesses will be even more reliant on it, so it is absolutely right that we press forward with it. I hope that communities in his local area will receive the benefits of schemes that we are putting in place nationally.
Nick Smith (Blaenau Gwent) (Lab)
2. What plans he has to tackle the effect of rising water bills on the cost of living.
Mr William Bain (Glasgow North East) (Lab)
4. What steps he is taking to reduce levels of food waste.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
We are working with food manufacturers and retailers to reduce food waste under the Courtauld commitment, which is targeting a further reduction of 1.1 million tonnes in food and packaging waste. We have also launched an agreement with the hospitality sector, which includes restaurants, pubs and canteens. We are helping households waste less and save money through the Waste and Resources Action Programme’s Love Food Hate Waste campaign.
Mr Bain
I am grateful for that answer, but does the Minister not accept that with food prices rising nearly five times as quickly as wages under the Government’s cost of living crisis, the most pressing issue for millions of families across the country this winter will be finding enough food to eat, not throwing it away?
Dan Rogerson
Obviously, we want affordable choices for people across the retail sector, and we have an efficient retail sector in this country. Excellent local food is also produced, and we hope that people will take advantage of what is provided locally to ensure they are well fed over the winter. Having said that, it is important to consider waste because if we do not look at what is being wasted across the supply chain, we will be wasting resources that could be used to help feed people, and that will also have an effect on the environment.
Mr Philip Hollobone (Kettering) (Con)
A staggering amount of the food purchased in supermarkets ends up not being consumed. Will my hon. Friend liaise with supermarkets to ensure that any surplus they have goes to food banks, and that they look closely at their packaging so that food for consumption in people’s homes is sold in the requisite amount of packaging?
Dan Rogerson
My hon. Friend raises a number of ways forward. There are many solutions for dealing with surplus food at different points in the chain, including at supermarkets. Further up the food chain there is the option advanced by Company Shop, which I visited recently. It looks at making affordable food available through company shops and, hopefully in the future, to people on low incomes as well.
Glyn Davies (Montgomeryshire) (Con)
5. How many cattle have been slaughtered as a result of bovine TB in 2013 to date.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Air quality in the United Kingdom has improved significantly over many years, but it still has an effect equivalent to reducing the average life expectancy of everyone living in the UK by six months. The Government are committed to ongoing work to reduce the impact and have invested many billions of pounds in measures that will help to reduce air pollution from transport, energy and industrial sources.
Valerie Vaz
With 29,000 early deaths from poor air quality, a Supreme Court judgment against the Government and the World Health Organisation saying that poor air quality is a primary cause of cancer, what more can the Government do to avoid a public health crisis?
Dan Rogerson
If we take the transport sources of air pollution, for example, we have invested over £1 billion in measures to promote growth in electric vehicles, which will help to transform future air quality, along with cleaner buses and a range of other policies. We are also negotiating at the European level for better standards in diesel vehicles, which contribute significantly to oxides of nitrogen levels.
Jim Fitzpatrick (Poplar and Limehouse) (Lab)
Most of the polluted roads in the country are in London. What meetings has the Minister had with the Mayor of London to address this serious situation for residents in the capital?
Dan Rogerson
In the last month I have had no such meetings, but my right hon. Friend the Secretary of State has met the Mayor to discuss this issue.
Mark Pawsey (Rugby) (Con)
10. What assessment his Department has made of the role of packaging in minimising food waste.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Food packaging plays a vital role in ensuring that consumers do not throw away the food they buy. The Waste and Resources Action Programme’s “Fresher for Longer” work shows how the way we use food packaging and the storage advice it carries can help to keep food fresher for longer, by using techniques such as vacuum packing, shrink wrapping or re-sealable packaging to maximise the safe-storage life of food. This saves consumers money and reduces the impact of food waste on the environment.
Mark Pawsey
The Minister has already acknowledged the Love Food Hate Waste campaign. I am sure he will agree, as my predecessor as chairman of the all-party group on packaging, that innovations in packaging such as vacuum and re-sealable packs, which he described, help to keep food fresher for longer. Does he agree that they also play an important role in reducing the value of the food thrown away by the average family, which is currently £270 a year?
Dan Rogerson
I thank my hon. Friend for his kind words about my work with the all-party group, but if there are things that I think the industry needs to be challenged on, as Minister, I will be happy to do that. However, I completely agree with him that we can see significant gains in tackling food waste through innovative packaging solutions.
Andrew Griffiths (Burton) (Con)
11. What increase there has been in pork exports to China in the last year.
Karl MᶜCartney (Lincoln) (Con)
T4. My right hon. Friend is no doubt aware that Lincolnshire produces a quarter of the nation’s food and does quite well in recycling waste, but with 15 million tonnes of food across the country going to waste annually, what steps is his Department taking to encourage the uptake of anaerobic digestion?
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Government financial support and action under our anaerobic digestion strategy and action plan is leading to growing uptake of AD. Since the strategy was published the number of plants has increased from 54 to more than 120 and a further 200 projects have planning permission.
Diana Johnson (Kingston upon Hull North) (Lab)
T6. The Government claim that excluding homes built since 2009 from the Flood Re insurance scheme is sending a message to developers not to build in flood-risk areas, so can the Minister explain to me why posters heavily promoting the Government Help to Buy scheme are plastered around Kingswood in my constituency, even though my constituents will be outside the flood insurance scheme in an area that is prone to flood risk?
Dan Rogerson
The details of the scheme agreed with industry, which I welcome and we look forward to taking forward in the forthcoming flooding Bill, are predicated on what was agreed under the previous regime. We are happy to debate this, of course, and if the case is made to change it, we will look at that. As the hon. Lady says, however, our current plan is to send a very clear message that we do not want to see further building on the flood plain.
Mark Menzies (Fylde) (Con)
T5. Farmers in Fylde are losing thousands of pounds each year and homes are at risk from flooding in the fields around Main Drain and Liggard Brook. The Environment Agency came up with options to resolve this, but funding was denied. Will the Minister meet me to discuss how we can move this vital work forward?
Dan Rogerson
I am happy to meet the hon. Gentleman to discuss the case in his constituency.
Sheila Gilmore (Edinburgh East) (Lab)
Over several months—indeed, nearly two years now—I have frequently raised the issue of the health effects on certain individuals of low-energy lighting. Has the Department made any progress in its negotiations with Europe on this issue?
Dan Rogerson
That is not an area I have discussed in recent weeks, but I am happy to write to the hon. Lady about any progress we have made on it.
David T. C. Davies (Monmouth) (Con)
T7. Does the Minister share my concern about the apparent monopoly British Telecom has in installing broadband in hard-to-reach areas such as Monmouthshire under the terms of public schemes?
Dan Rogerson
My hon. Friend is clearly making a case to examine this. There have been a number of reports into our delivery of the broadband programme saying our approach will lower risk and reduce cost to the taxpayer. If my hon. Friend has any specific concerns and he would like to write to me, I will be happy to examine them.
Kerry McCarthy (Bristol East) (Lab)
Proposals were made for 127 marine conservation zones, which it was agreed were necessary to create an ecologically coherent network. It is therefore very disappointing that the Government are going ahead with only 27 zones, and if press reports are correct they will not be consulting on the second tranche until 2015. Why is there such a delay?
Nick Smith (Blaenau Gwent) (Lab)
Asthma UK has condemned the Government’s proposals to reduce air quality monitoring across the UK. Will the Minister drop these damaging proposals?
Dan Rogerson
We want to focus our efforts on reducing air pollution, and we are confident that we will have enough information coming back from monitoring to ensure that we can update the position. As I said in answer to a previous question, this issue remains a Government priority and we will take action on it at European, national and local levels.
Roger Williams (Brecon and Radnorshire) (LD)
There is conclusive scientific evidence that sheep as a species is not infected with a prion that causes new vCJD. Nevertheless, certain regulations relating to sheep, such as the compulsory splitting of carcases over 1 year old and the ban on on-farm burial, are based on the belief that sheep are so infected. What will the Minister do to take forward an investigation to ensure that these costly regulations can be brought to an end?
Julie Hilling (Bolton West) (Lab)
If the amount of air quality monitoring taking place is being reduced, how will we know that air quality is improving? How does this work?
Dan Rogerson
There will still be air quality monitoring; we are talking about the level of monitoring. We want to focus resources on where we can do the most on this issue.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
I am pleased that the marine conservation designation for the Stour and Orwell site has not been approved. I thank the Minister for that, and can he assure me that it will not be reconsidered in future rounds?
DEFRA Office (Alnwick)
Dan Rogerson Excerpts(10 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
I pay tribute to my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) not just for how he is currently representing his constituents as regards the Alnwick office, but for how he has done so, as we have heard, over many years—going back to the era when Peter Walker was the Secretary of State. I am sure that they are very grateful for and well aware of all that he has done to support them.
My right hon. Friend has set out the issues from his perspective. I will set out the Government’s point of view on the office in Alnwick and its history. The building is owned by the Department on a freehold basis. There are three occupants: DEFRA, Northumberland county council and the newly created joint venture organisation that we have heard about, Shared Services Connected Ltd. I will take each of those in turn.
The DEFRA network has a large estate spanning England and Wales that supports the delivery of its business. That includes officers, operational depots and scientific sites. The cost of the estate has come down significantly since 2011. By 2015, the savings from exiting properties and reducing the amount of space that we use will reach about £53 million per annum. However, the annual cost will still be about £113 million. We will look for ways to reduce that further. In Alnwick, DEFRA occupies office space for about 24 full-time equivalent staff who are focused on the management of information and providing warehouse facilities for archiving. There are also two full-time equivalent members of staff from the Rural Payments Agency.
Northumberland county council occupies 2,000 square feet of the Alnwick site. That lease expires on 2 February 2017, although a mutual break is available with 12 months’ notice from February 2015. However, there is no indication that Northumberland county council is looking to vacate the site.
Stimulating economic growth is a top priority for the Government. We want rural areas to contribute to and benefit from that growth. As my right hon. Friend kindly pointed out, I represent a rural area, although it is perhaps not as far flung and widely set as his area. None the less, it is a rural area and it faces many similar challenges. The Government have introduced a wide range of policies and initiatives to promote business and deliver growth in urban and rural areas, including new infrastructure, raising skill levels and supporting business, particularly small and medium-sized enterprises, which make up a significant element of the rural economy, as my right hon. Friend knows.
The roll-out of superfast broadband infrastructure is vital to sustainable economic growth and the creation of jobs in rural areas. Online small businesses, whether rural or urban, grow four to eight times faster than their offline counterparts. The Government are investing £530 million in rural broadband up to 2015, which, through match funding, will result in up to £1.2 billion of public funds. The pace of progress is accelerating, with 42 of the 44 local projects contracted, including all of those in the south-west. Across the UK, 10,000 rural properties are being connected each week. As was announced in the spending review, a further £250 million will be available from 2015 to extend superfast broadband to 95% of UK premises by 2017.
I am setting out these policies to establish that the Government are very much committed to seeing rural areas share in the economic growth that we are delivering, in contrast to the position that we inherited.
Sir Alan Beith
I am pleased that my hon. Friend has responsibility for this area, not least because Northumberland is way ahead of the field in its work on rural broadband. However, if small businesses can operate from rural locations, so can the Department for Environment, Food and Rural Affairs.
Dan Rogerson
Absolutely, we can. I have set out the history of the office. As my right hon. Friend has pointed out, it has shown that it can be a very efficient place from which to operate. We want to get to the position where the new company recognises that. What is being delivered there must be so competitive that it is attractive on a continuing basis. We would welcome that, but it must be a matter for the new shared venture company.
We are taking other action to support the rural economy, including improving competitiveness and skills, investing in rural tourism, and supporting new micro-enterprises and those that have aspirations to grow. We have established five pilot rural growth networks, which aim to tackle the barriers to economic growth in rural areas, such as the shortage of work premises, slow internet connectivity, which I have mentioned, and fragmented business networks.
DEFRA’s rural development programme for England has, to date, invested more than £400 million in projects to grow the rural economy. Completed projects have created more than 8,500 new jobs and safeguarded a further 9,700. The next seven-year rural development programme is a major opportunity to continue to invest in rural growth and the environment. We are working together with interested groups to design a programme that makes a measurable contribution to improving the environment and economic growth, while providing real value for money. The civil service is moving to being faster, smaller and more unified, and sharing services is a central part of that. The next generation shared services strategy sets out a new model to share human resources, procurement, finance and payroll functions with five centres, instead of the current eight, to deliver more efficient and cost-effective services.
As my right hon. Friend pointed out, the Government signed an agreement on 1 November 2013 with Steria Ltd to create a joint venture partnership with Government. The new company, Shared Services Connected Ltd, has been formed initially from a consolidation of some existing shared service centres: the Department for Work and Pensions, DEFRA and the Environment Agency, with in-scope services from UK Shared Business Services Ltd expected to become part of SSCL by 2015. All DEFRA staff previously engaged in the delivery of shared services transferred to the new organisation from 1 November 2013. Services to existing customers are being maintained and delivered out of DEFRA offices in Alnwick and York.
The creation of SSCL is a key part of the civil service reform plan, which will harness industry best practice to deliver Government back-office functions more efficiently. Transforming back-office operations across Government could help to deliver between £400 million and £600 million in savings for the taxpayer, freeing up scarce resources to be better spent on front-line services. Economies of scale will enable Steria to drive down costs and improve service levels by sharing expertise across customers, adopting common processes and systems and investing in new tools. To be a competitive and viable business, SSCL needs to be in line with other companies of this kind, which see some non-customer-facing transactional roles being sourced offshore. As longer term transformation plans are agreed, SSCL will consult staff and representatives. Assistance will be provided to any affected staff, including reinstatement and redeployment opportunities.
Over time, the objective is to establish SSCL as the pre-eminent provider of shared services to UK central Government and the wider public sector. By migrating clients to a low-cost shared service model, it is estimated that total benefits delivered by SSCL will be in excess of £l billion. It is expected that in the course of the next couple of years there will be some site consolidation from the nine existing delivery sites, and we expect some staff reductions. Steria has made a number of commitments on behalf of SSCL, including: no compulsory redundancies in the first six months, an intent to minimise the need for compulsory redundancies through work force planning, and a series of redundancy avoidance measures during the transformation period. Steria has also agreed that any final decisions on location will not be made for six months. That will be a business-based decision. My right hon. Friend will be well aware that this is a key point. There will be a chance to demonstrate office efficiency, given the low cost of locating in the base, the ownership of the premises and so on, so there is a good case to be made to Steria for the Alnwick office. However, the decision will ultimately be based on what it aims to deliver to Government and the taxpayer.
With regard to shared services staff currently based in DEFRA’s Alnwick office, we have an agreement that SSCL will continue to occupy accommodation at Alnwick Lion House for a period of 20 months. That is an update on the minimum 12-month commitment that was previously communicated. That represents progress in the right direction, and my right hon. Friend’s efforts to focus attention on what has been achieved at Alnwick have played a part in that. The Department is well aware of what it has delivered over many years.
Sir Alan Beith
May I press my hon. Friend on the 20-month period? The phrase “occupy accommodation” is unpersuasive. I had understood him to anticipate that in the 20-month period the work would be likely to remain there, although that would not involve an absolute guarantee on the number of jobs that would remain during that period. Will he clarify that for me?
Dan Rogerson
I understand my right hon. Friend’s concern about that. He is right that, in a period of transition, members of staff might look to the future and decide whether to look for other opportunities, while others will stay on. The agreement is as described, which is to say that the accommodation will continue to be occupied. The company’s plans for carrying out the activity there is essentially a matter that he will have to take up with the company itself, but he has certainly put his concerns on the record tonight. I am happy to take those concerns back, so that we can get a little more clarity for him and his constituents about what that might mean.
My right hon. Friend asked what staff could expect. There is an expectation that other opportunities for staff will be put forward first, so that options for redeployment can be explored. I have a great deal of sympathy generally for his view about Government jobs in rural areas. The tax office in my constituency went during the last Government drive to narrow the HMRC estate, which was a matter of great sadness. As a Government, we need to ensure that we explore all the options for keeping jobs in rural areas. He was generous enough to point out that I am relatively new to my responsibilities, but I know that previous Ministers will have made the case for keeping as many jobs as possible in rural areas, and I am keen to do so too, alongside ensuring the private sector investment that we are stimulating in the ways that I have set out.
The company’s tax position is clearly not a matter for DEFRA, but my right hon. Friend asked that I seek further information for him, and I am happy to do so. He also made a fair point about how the Government will use their stake in the new organisation. Clearly we will want to ensure that lessons are learned and that the objectives of the original project to make efficiencies are met, but there might also be opportunities to ensure that the company takes into consideration some of the points he has raised this evening. Again, I can feed his concerns about that through to ministerial colleagues in the Cabinet Office.
The shape of what will happen at the office has not been decided—that is a matter for the new organisation to take forward. I welcome the fact that my right hon. Friend is in discussions with the company, which is a sensible way for him to proceed. I thank him for the diligent way in which he has pursued this matter. Having been in this role for about a month, I have heard from him on several occasions—through parliamentary questions, in discussions with officials and, now, on the Floor of the House. I know that he will continue to ensure that his constituents get the very best service as the transformation project moves forward.
I hope I have given my right hon. Friend a little reassurance that we recognise the huge achievements of people at the Alnwick office, who will be well placed to make the case for how efficient they have been in the duties they have discharged. The commitment to continue to occupy the accommodation in Alnwick for 20 months goes much further than the original 12 months. Some of the questions he has raised tonight will be considered during that period and the answers will come forward. I am happy to remain in contact with him about this matter, and in particular about the questions he has posed that I have been unable to answer without reference to ministerial colleagues.
Question put and agreed to.
Bathing Water Quality Results (England)
Dan Rogerson Excerpts(10 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)
Today I would like to announce to the House the results of water quality monitoring at England’s popular beaches and lakeside sites during the 2013 bathing season.
Between May and September, the Environment Agency took samples of water at 415 bathing areas that have been designated under the Bathing Water Regulations 2013 to test for compliance with the water quality standards set by the EU bathing water directive.
High-quality bathing water is important both for the health of water users and for our seaside resorts whose economies depend on people’s enjoyment of the beach.
This year a record number of 342 of the 415 bathing waters—over 82%—met the highest standard, known as guideline. Almost 99% have complied with the directive’s mandatory minimum standard. This means that the compliance rate has returned to the level we would expect after last year’s extreme weather conditions. It confirms that investment by water companies and other measures to improve bathing water quality are paying off over the long-term.
Only five sites failed this year—Allonby, Fleetwood, St Annes, Seascale and Instow. Failures to meet the standards are caused by a complex and individual set of circumstances at each bathing water. The main sources of pollution are sewage and animal waste washed into water, particularly during rainfall.
These results are particularly encouraging because we are now only two years away from full implementation of the revised bathing water directive, which will introduce much tighter water quality standards from 2015. If these standards applied now, over 55% would meet the highest “excellent” standard and almost 90% would pass the new minimum standard. I remain committed to all designated waters passing the new minimum standard. Water companies, national and local government, businesses and the wider community have a part to play to ensure we meet the new standards and have beaches that people can enjoy.