Environmental Targets (Public Authorities) Bill [HL]

Earl Russell Excerpts

2nd reading
Friday 18th October 2024 Lords Chamber

[Earl Russell (LD)]

My Lords, I too support the Bill. I am grateful to the noble Lord, Lord Krebs, for bringing it and for his well-worded explanation of it. I am also grateful to the noble Baronesses, Lady Bennett and Lady Willis, for lending their support and for the speeches they have given.

The Bill requires specified public bodies to contribute to the delivery of statutory targets established under the Environment Act 2021 and the Climate Change Act 2008. As it stands, our climate change and nature protection legislation has a gaping hole at its heart in that no statutory duty is applied to the many public bodies on whose everyday decisions and actions we depend in order to meet the targets. The noble Lord, Lord Krebs, put it very well: the Government have all the levers on their desks, but the trouble is that the levers are not connected to anything. So far, our ad hoc efforts in this area have not worked. The state is already in possession of all the obligations but it does not have the statutory powers required to fulfil them.

The Bill is carefully crafted so as to be effective but, equally, not to be overly burdensome. Its thoughtful application includes regulators such as Ofwat, Ofgem and the Environment Agency; local authorities; key bodies such as Natural England, the Forestry Commission and National Highways; and some other 40 specified public bodies. It also contains an option for Ministers to include national parks in England and Wales by secondary legislation; I think this should be done.

The Bill uses well-versed legal language, saying that each of the identified bodies

“must, in the exercise of its functions, take all reasonable steps to meet the environmental recovery”

obligations. This duty is specific and active. It provides a clever means of aligning the functions of many organisations around a single shared goal. The Bill is careful not to define how the obligations should be met. Equally, it does not introduce a significant extra cost; indeed, as the noble Lord, Lord Krebs, said, it may induce cost savings from cost implications avoided, bringing longer-term cost savings. Importantly, my understanding is that the Local Government Association has signalled its support for the Bill. The simple and sad truth is that, as a country, we do not assign a fair value to nature. Our statutory powers are inadequate and do not provide the required levels of protection.

The Bill updates many bits of individual legislation that were written long before the nature and climate change crisis. One example is that for the Forestry Commission, which is over 100 years old. Often, they do not have clear environmental goals. This Bill also saves all of us, as parliamentarians, a job of putting down multiple amendments to lots of Bills that simply waste precious parliamentary time.

The UK has many key targets in place, but without statutory obligations such as these we will just not meet them. The Labour manifesto states that the UK faces a nature crisis, accelerated by climate change, and argued that the UK has become

“one of the most nature-depleted countries in the world”.

Labour committed in the King’s Speech to improve access and I hope that this Government do that. We face an interlinked and conjoined nature and climate crisis, and we must work at pace and scale to meet it. That manifesto also included a clear commitment that Labour would take

“action to meet our Environment Act targets”.

Here is a clear and effective way to do that at pace and scale. I hope the Minister agrees and can lend government support to the passage of this Bill.

Flood Prevention: Farmers

Earl Russell Excerpts

Thursday 10th October 2024 Lords Chamber

[Earl Russell (LD)]

My Lords, it is a pleasure to speak in this debate. I thank the right reverend Prelate the Bishop of St Albans for bringing it to us, and thank the others who are speaking. It is important that we fight to support and protect our farmers from the hardships they face. Between the impacts of Brexit, the implementation of delinked payments, wet weather, declining crop yields and inadequate compensation schemes, our farmers face a perfect storm that is sending many to the wall. The collective impacts are heartbreaking: the loss of family farms to bankruptcy, increased rates of suicide, and an overall decrease in crop yields due to the ever-present wet weather.

No farmers, no food: farming contributes £120 billion to the UK economy and is responsible for 4 million jobs, and our farmers provide 64% of the food we eat. Our farmers produce the food we need to survive. We all ate lunch today thanks to the work of our farmers. Farmers are our champions in the fight against climate change. Equally, the impacts of climate change hit them hardest and first. Farmers are the backbone of our food security—the protection of our land and soils. They are key partners in the work that must be done to protect the natural environment.

This September has been one of the wettest on record. Something is wrong when all we do is break climate records day after day. The UK is getting warmer and wetter as the impacts of climate change and climate breakdown are increasingly felt. The luxury of talking about possible future extreme weather events and their possible impacts is over. They are here now and only set to get worse.

For every rise of 1 degree Celsius in the atmospheric temperature, the atmosphere can hold up to 7% more moisture. Increasing heat brings increasing evaporation, which means that we will experience more precipitation, extreme rain events and flash flooding. Storms such as Babet, Ciarán and Henk have caused considerable damage to our agricultural land. Some of our farmers have had their land continuously underwater since October last year.

Either farmers have not been able to plant crops at all or the crops that they have planted have been impacted by waterlogged soils. Crop yields are down as a result. Wheat is down 15%, oilseed rape is down 28% and winter barley is down 22%. These are the real impacts that climate change is having today on our food security and farmers’ bottom lines. In 2023, the income from farming decreased by 19% as a result of flooding. It is against this background that we need to talk about the role of farming in our flood defences. Society needs farmers’ help in the fight against flooding and government needs to be clear that this means sacrificing their land, and their livelihoods, so their land is used to delay or hold water so that it is then released slowly and does not cause extreme damage to our homes and critical infrastructure. All this has an opportunity cost to farmers and we must compensate them fairly and quickly for this public service.

The announcement by the last Government of the flood recovery framework and the farming recovery fund were both welcomed. The flood recovery framework was poorly designed. Farmers struggled to get the information necessary to make applications. The requirements for 50 or more properties to be flooded were inappropriate for a farming fund. The local authority verification processes were also slow. The farming recovery fund still requires 50 properties to be flooded, but I welcome the fact that the qualifying measure of being 150 metres from a river has been removed. However, these systems are still not really fit for purpose and payments are still being delayed, which is causing real hardship. We really need a clearer and more flexible payments system that has the right criteria and is efficient in making the payments necessary. Above this, we need long-term stable support mechanisms so that farmers can prepare and plan longer-term changes and recover from traumatic weather-related events.

Farmers are only one small part of the food resilience framework. I welcome the Floods Resilience Taskforce that has been set up, but the Climate Change Committee has been clear that government must do more work on our resilience to plan for and invest in our flood defences. Government must properly fund the Environment Agency and other bodies. The Environment Agency has a £34 million deficit in its maintenance budget. Government must ensure that capital funding is in place for flood defences, to ensure that basic maintenance is conducted on drainage and flood defence systems. My view is that we need to do much more work with nature-based solutions that delay and hold water and release it slowly. These systems are good for people and the planet.

To conclude, there are rumours in the press that Labour may be planning to cut funding support for flooded farmers and that the budget decisions are also delaying reforms that are required to the application criteria. A Defra source said that decisions about how much money could be paid to farmers for the floods were being held up because of the spending review, and that cuts were on the table. We have already seen threats to cut £100 million a year from the nature-friendly farming budget.

I respect the Minister and I suspect she is not able to comment on the Budget, but my speech here today is leading to one appeal, and I suspect she can guess what it is. Now is the time to find solutions that work in practice, pay out on time, are adaptable to individual farmers’ needs and balance the competing objectives of flood prevention and food security. The window for finding solutions to the flooding problem is closing. Let us get these solutions right and let us get them in place now. The longer we leave this, the worse it will get and we will be overwhelmed with dealing with everyday levels of chaos, without having the necessary robust, basic systems in place that we need to weather the storms ahead. I call on the Minister to protect budgets and fight for a fair deal for our farmers and for holistic solutions to the ever-growing flooding risks.

Water (Special Measures) Bill [HL]

Earl Russell Excerpts

2nd reading
Wednesday 9th October 2024 Lords Chamber

[Earl Russell (LD)]

My Lords, I declare my interests as set out in the register. There is much to welcome in the Bill. There is much that we on these Benches will support. Equally, we call on Labour to be braver and bolder and to act with greater urgency. The environment cannot wait while Labour decides on the real systemic reforms that are the only solutions to this crisis.

The most positive thing in the Bill is the acknowledgment of the scale of the problem and the signal from Government that further, more fundamental measures, beyond this Bill, will be tabled in this Parliament. I give Labour my thanks for this. With this we finally have a potential starting point for change. The Bill is a welcome first step, but the Bill alone is far from a comprehensive solution. It is a list of useful measures, but if the Government think that simply blocking the payment of bonuses to poorly performing water company executives and a few other measures will resolve the sewerage crisis, there are real grounds for further thought.

Since privatisation 35 years ago, we have witnessed one of the worst environmental crises in the UK, with unabated and unprecedented pollution. Just 14% of England’s rivers and streams are in good ecological health. In 2023, there were some 3.6 million hours of untreated sewage discharges in England alone. Water, water everywhere, and not a drop of it unpolluted.

Meanwhile, water companies have paid at least £78 billion in dividends, while failing to invest adequately in the infrastructure required. At the same time, they have piled on £64 billion net in debt, when the water companies had been debt-free at the point of privatisation. The regulatory system is broken and has failed to hold companies to account. When researching this speech, I was astonished to find that Ofwat has to give 25 years’ notice to revoke a water licence.

Measures such as monitoring outflows, banning bonuses, automatic fines, lowering the burden of proof, and possible jail terms for obstruction of investigations are all welcome. The reality is that the Bill is just a list of useful, but ultimately nothing more than stopgap, measures. The real change needed is a radical and complete systematic overhaul of the whole system. Feargal Sharkey called the Bill inadequate. He rightly said:

“We want an end to pollution, clean rivers and seas. We wanted transformative action and these small steps do not satisfy that goal”.


Similarly, Charles Watson of River Action said:

“What we’ve got today is a long list of measures that will cost the government nothing and is really not going to fix anything because it’s the system that’s broken”.


The review of water health is welcome. Is the Minister able to confirm that the review will be independent of government, with an independent chair? When will it start work, and when is it expected to complete? Steve Reed has said that a “full review” of the water sector will take place over the course of this Parliament. I hope that Labour has the courage to be brave. It also needs to find its own policies and grasp the reform nettle. Why is more comprehensive legislation not yet ready, after some 100 days, on such a fundamental issue?

The broken system and the consequences of light-touch regulation were all issues at the general election. Our rivers, streams and lakes have been polluted to the point of ecosystem collapse in some cases. I am proud that my party has led the campaign on these issues, which cut through to people on all sides of the political spectrum. The broken system saw the polluter paid time and again, instead of the “polluter pays” principle ever being applied.

My warning to Labour is that the people who voted for it did so with an expectation that real action would be taken to resolve this mess, and that it would be undertaken at scale and pace. The Liberal Democrat position is clear: out-of-control water companies must be forced to put the interests of the environment before profits. They must be held to account for their corporate failings. Our policies include plans to abolish Ofwat and install a clean water authority—a regulator with real powers. We would turn private water firms into public benefit companies—the quickest and least costly method of resolving this mess. England remains the only country in the world to have privatised its entire water system, and for good reason.

The hard part about scrutinising the Bill is that the important parts of the puzzle are not in it at all. They are yet to come, and we do not know exactly when they will arrive and what they will say. I remain to be convinced that, even with further legislation, Labour can keep private water companies and the existing regulation architecture, including Ofwat, in place, and pull off the magic trick of protecting the environment, making regulation fit for purpose, securing the billions of investment and protecting bill payers in the midst of a cost of living crisis.

Can the Minister reaffirm that, where water companies systematically use overflows to dispose of untreated sewage in dry conditions, it is the Government’s intention to swiftly prosecute them? Enforcement powers exist already—water industry bosses can be sent to prison under certain circumstances—but these powers have hardly ever been used. Since 2001, the DWI has brought only three prosecutions and given two cautions. Are the Government clear that the regulators will have a firm touch and prosecute breaches?

It is welcome that the Environment Agency will be able to levy automatic fines and recover costs, but cost recovery is retrospective and does not pay for the enforcement today. The Environment Agency had its budget cut almost in half between 2009 and 2019. Will this Government properly fund enforcement? Laws cannot be enforced without effective regulators. We need fundamental regulatory reform. The Bill could be strengthened through the inclusion of environmental and clean-water duties on Ofwat. Companies that persistently breach obligations should face the prospect of special administration. We need much larger fines that are a real deterrent. We need legislation which ensures that funds from fines will be invested in environmental projects through the water restoration fund. Enforcement is still based solely on ecological impact, with no requirement to restore areas that have been severely polluted in the past. We need more investment in mechanisms and processes that work with nature—so-called nature-based solutions. All water companies should be required to implement pollution reduction plans. Ofwat should have a statutory duty applied to contribute to meeting our climate and nature targets.

The Bill has many measures coming in at different times and subject to different consultation processes by associated regulators and the need for many measures to be approved by statutory instruments. When does the Minister envisage that all the measures contained in the Bill will be enacted? Will the Minister agree to work with your Lordships’ House to ensure that measures in statutory instruments are able to be debated on the Floor of the Chamber as far as is possible? Finally, I worry that the villain of the piece is the lack of funding for enforcement measures. Only real reform, determination and hard cash will ever change this.