Water Industry

Jim Shannon Excerpts

Wednesday 10th June 2020 Commons Chamber

[Rebecca Pow]

My right hon. Friend makes a sound point. A lot of the issue is that we have been in lockdown and there has been an enormous increase in demand for water because people have been at home, filling their paddling pools and watering their gardens and vegetable patches, as I have. That increased use of water has put on immediate pressure. It is not a drought situation, but he is right: we need to deal with our overall water supply, and that is absolutely on this Government’s agenda.

A decision as to whether the infrastructure projects I have referred to could come within the scope of the 2013 regulations will be made on a case-by-case basis at the appropriate time when the schemes are brought forward. The Government are committed to improving water supply resilience, as set out in our strategic policy statement to Ofwat and our 25-year environment plan. That ambition is made more challenging because of the growing population, increased water demand from agriculture and industry and, of course, climate change.

We also want to ensure that there is sufficient water left for the natural environment. Without any action, many areas of England will face water shortages by 2050. The starting point for action is to reduce water use by reducing leakage from the water distribution networks and reducing our personal consumption. However, even if leaks and personal consumption are reduced, we will continue to need new water resource infrastructure. In our “Water conservation report”, published in December 2018, we set out our progress on promoting water conservation from 2015 onwards.

[Jim Shannon (Strangford) (DUP)]

The Minister responded to an Adjournment debate secured by a Member from England on the decreasing water supply in rivers because of water being taken out by water companies. Is it her intention to ensure that that practice will stop and that river water levels will be retained?

[Rebecca Pow]

The water supply is to be looked at in the round. If the hon. Gentleman would like to have a conversation with me, I would be happy to tell him about all the things we have in train to deal with that, to ensure that we have enough water for everyone in future and take account of climate change and the growing demands. He raises an important point; keeping the right status for our rivers is incredibly important.

We endorse the industry’s existing commitment to a 50% reduction in leakage by 2050, and we announced a consultation to enable us to set an ambitious target for personal water consumption. We consulted on measures to reduce personal water consumption, including supporting measures on amending building regulations, water efficiency labelling and smart metering. Most of those measures can be taken forward without the need for new primary legislation, and we will publish a Government position on it later this year.

Alongside reducing leakage and personal water consumption, new water resources infrastructure, including reservoirs and water transfers, is needed to provide a secure supply of water for future generations. In the current price review period, Ofwat has made £469 million available to nine water companies to investigate and develop integrated strategic regional water resource solutions, in order to be construction-ready by 2025. That work will be supported by the Environment Agency’s national framework for water resources, which was published in March this year.

In summary, this statutory instrument enables the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 to continue in force, in order that they can continue to be used in the future delivery of large or complex water or sewerage infrastructure projects. Such projects play an essential role in strengthening the future resilience of water resources in England. Retaining the 2013 regulations will help to reduce the associated financial risks of such projects, ensure that water undertakers continue to deliver their existing water or sewerage services to customers and provide greater value for money. I commend the regulations to the House.