Water Bill

Lord Crickhowell Excerpts

Thursday 6th February 2014 Lords Chamber

[The Earl of Selborne (Con)]

My Lords, I am always impressed by the fervency with which my noble friend Lord Redesdale promotes the cause of sustainable development. Who could disagree with him that the sustainable use of water is clearly desirable? But does the more specific mention of sustainable development in the Bill help towards those causes or duplicate what is already there and in previous legislation? Does it give a much clearer direction to Ofwat? None of us would dispute that the major issue that must be addressed is long-term sustainable management of water resources. None of us disputes that the new resilience duties on Ofwat are extremely helpful. However, my noble friend Lord Redesdale did not remind us that this issue of whether the situations of Ofgem and Ofwat are totally parallel was looked at by the Gray review in 2011, the advice of which was to reject that. I accept that the Government rejected much other advice—from the Cave review and others—so that is not a roadblock. However, it must be recognised that there are already duties on Ofwat to promote sustainable development.

I am always a little nervous about those who find themselves supporting sustainable development. The concept has three pillars: the economic benefits, the societal benefits and the environmental benefits, all of which must be interconnected. The argument put forward by my noble friend Lord Redesdale was almost entirely based on the environmental and water efficiency benefits. Those are very worthy and very important, but I have also heard sustainable development prayed in aid of some pretty harsh economic messages. Clearly, that is not an appropriate way to interpret it. Is the Minister really sure that this is going to help to clarify Ofwat’s roles? I am not as convinced as my noble friend Lord Redesdale.

[Lord Crickhowell (Con)]

My Lords, at Second Reading I said I was green with envy that the environmental regulators will now have the Bill rather than the legislation that I had to deal with as chairman of the National Rivers Authority when I was in almost continual friendly conflict—I emphasise the word “friendly”—with Ian Byatt the economic regulator. It was so friendly that I have two cartoons at home, which were sent to me by a notable newspaper, showing both of us in the boxing ring. In the first, we are engaged in a vigorous fight, and the second shows us collapsing together exhausted at the end of the exchange. We have made huge progress since then, and the existing sustainable development duty, as I understand it, is now being given statutory authority in the Bill. The clear steer that has been provided by the Government is now being given statutory effect in the Bill. As I understand it, Ofwat now has sustainable development as a central objective. It will have to take account of that. It will have to carry out its functions in accordance with the strategic priorities and objectives identified by the Secretary of State.

So while I entirely understand and, indeed, sympathise with the arguments advanced by the noble Lord, Lord Redesdale—and perhaps it is because we have made such a huge advance from the position with which I had to deal when the economic regulator just did not think he had any obligations to provide for the environment and blocked almost every proposal that came from Europe or from us—I would like my noble friend to clarify what is to be gained or lost if we accept the proposition put forward by the noble Lord, Lord Redesdale, over what we have already in the Bill. I find it very difficult to understand exactly what benefit we would gain. If there is nothing to be lost by including it, I would not be against including it. Against the background of a huge step forward having been taken, I am seeking from my noble friend clarification of the benefits and possible downsides of having this written into the Bill in the way proposed.

[Baroness Parminter (LD)]

My Lords, I thank my noble friend Lord Redesdale for raising this issue yet again. He has done so on numerous occasions, as have many other noble Lords. It is an important debate. It is quite clear that the Government are committed to sustainable development, but they believe that they do not need to elevate the primary duty of sustainable development for the regulator in the water industry because it has a secondary duty. What they are prepared to give is the new primary duty for resilience. I think we are going to carry on arguing about whether resilience delivers the environmental and social benefits that those of us who are concerned about sustainable development believe it does. The Government say it does and I am sure that the Minister will reiterate today that he believes that resilience will deliver the sustainable benefits that we believe are crucial for the regulator to deliver. There are others who believe that the resilience duty does not.

I would like to pick up on what my noble friend Lord Redesdale has said. We should try and move the debate on from arguing about what “sustainable development” and “resilience” mean to what we actually want to achieve. It is significant that my noble friend Lord Redesdale raised the issue of water efficiency. That is, bluntly, what we want to achieve—a more resilient future for our water industry which protects the scarce resources that we have, to the benefit of the environment and communities. I urge the Minister to reflect again between now and Report on a duty to promote water efficiency. I think that is a constructive way forward. There will be a difference between those of us who believe resilience is sufficient and those of us who would have liked to see a primary duty on the regulator. I do not think the Government are going to move, but I do think that a duty to look at the issue of water efficiency is a helpful way forward.