Environment Bill

Lord Russell of Liverpool Excerpts

Committee stage
Wednesday 7th July 2021 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

Before I turn to individual amendments, I want to assure noble Lords of our commitment to improving water quality. Our rivers and lakes are an essential and valuable part of our countryside and urban landscapes, and the power we are taking in Clause 83 is to enable us to continue to monitor their health, so that we can better improve it.

I will begin with Amendment 189A from the noble Lord, Lord Cameron, so that I can assure noble Lords of the Government’s strategic approach to this issue before elaborating on the specifics. The Government fully agree with the intent; that is why we are already taking a strategic approach to the management of the water environment, in particular through river basin management plans. Additionally, through the Environment Bill, we are introducing the requirement to create a new, legally binding target for water quality. This will drive forward action needed to improve the water environment.

River basin management plans establish the goals we set for our water bodies and set out the steps required to meet them, guiding investment and action. The plans are updated on a six-yearly cycle, following extensive consultation. The Environment Agency will consult this year on the draft river basin management plans covering the period until 2027, and I encourage all interested parties to engage with that process. The 2015 plans confirmed £3 billion of investment over the period to 2021. In England this has led to more than 11,000 kilometres of surface water being enhanced and a further 2,349 kilometres being protected.

We are also working at a strategic level with the Environment Agency, Ofwat and water companies to ensure that the water companies’ investment through their next periodic review delivers the best possible outcomes for the environment. Requiring an additional strategy would therefore be unnecessary.

I thank the noble Baroness, Lady McIntosh of Pickering, for Amendment 188 on priority substances and the price review. I will be very happy to speak afterwards to arrange a meeting with her. On that point, I was a bit surprised by the comments from the noble Baroness, Lady Jones of Whitchurch, about meetings. I have just checked with my office, and we have had numerous meetings to discuss the Bill. We have had at least three, including with the Secretary of State. I have had five with groups of opposition Peers. The noble Baroness herself told me last night that we have a meeting planned for the 19th, so she clearly knows about it, and I offered another meeting in addition to that when we spoke. I hope she will reflect on her comments because they are a little misleading for the House.

On the amendment of the noble Baroness, Lady McIntosh, I would like to explain why it is critical that we have the power in Clause 83 of the Bill. The current priority substances list was frozen in our law at the end of the transition period under the European Union (Withdrawal) Act. Without appropriate regulatory change powers, the UK Government and devolved Administrations would be left operating an out-of-date list of substances and standards potentially harmful to the water environment. Section 8 of the European Union (Withdrawal) Act, which enables the UK to transfer EU Commission powers to UK Ministers by regulation, does not apply in this case so we need primary legislation to obtain the powers to update the priority substance list.

Updates to the list of priority substances, which must be tested for in the water environment, will take into account the latest scientific and technical evidence. It would not be appropriate to constrain our ability to make updates and react rapidly to emerging substances which pose a threat to the aquatic environment. Under the EU system, the list was updated by introducing a new EU directive. Data needed to be collected across the EU and, as in the case of all new directives, member states were given long grace periods to transpose updates, resulting in a lengthy process.

We can act on emerging substances much more quickly outside the EU if we do not unnecessarily prolong the process of making updates, which tying the process to the cycle of the price review would entail. Furthermore, as the noble Baroness suggests in her amendment, I reassure her that the price review already takes into account water company obligations, including those in relation to the water environment. The price review has flexibility to allow for changes in circumstances.

The Government have regularly updated key stakeholders, including the water industry, on the progress of this measure and any proposed changes to the priority substances list will be subject to statutory consultation requirements. In response to her question about consultation, we consulted on the policy of Clause 78 through the January 2019 consultation on improving our management of water in the environment but we did not specifically consult on the Explanatory Notes, which I understand is normal practice.

The noble Baroness asked about the price review and planning for water quality monitoring. Ofwat’s price review process is clearly key for water company business planning. Water companies’ current non-statutory drainage and wastewater management plans will help inform their business plans and required funding for 2025-30 to deliver them. Companies will complete their plans by spring 2023 to feed into the PR24 process. Ofwat has a mechanism that allows for consideration of additional funding requests made by companies during the price review period, but there are strict rules governing this. We are confident that companies are undertaking comprehensive assessments of their plans to set out their priorities in price review 2024, including priorities around sewerage assets to mitigate any impacts on water quality.

I turn to Amendments 188A, 188B and 188C from the noble Lord, Lord Cameron. I reassure the noble Lord that the power in Clause 83(1) will allow for only relatively narrow changes to be made to water quality standards for certain chemicals in existing legislation. For example, in 2013 the priority substances list was updated via a new EU directive. We were required to transpose into our regulations 12 new substances, and a new requirement for the EA to make provision for these substances in river basin management plans. This update also instigated biota testing for some toxic bioaccumulative substances.

This new power in the Environment Bill is critical in enabling the same kind of narrow technical changes. Changes will be informed by the latest scientific advice from the UK technical advisory group, a working group of experts convened by the EA and drawn from the environmental agencies for England, Wales, Scotland and Northern Ireland. It consults appropriate stakeholders when carrying out its work and its recommendations are published.

We designed the clause to include a statutory requirement for the Secretary of State to consult the EA before exercising this power. As the noble Lord’s amendment proposes, the Secretary of State must also consult any persons or bodies likely to be affected by the regulations. This may include water companies and environmental groups as well as, no doubt, many others. This is exactly what the Government intend to do. The OEP will not have a role in setting technical standards for water. That is not its area of expertise. The Environment Agency has deep expertise and long experience in this area, and is therefore best placed to continue this role.

Clause 29, however, does allow the OEP to provide advice to Ministers on any aspect of environmental law, so it will be able to hold Ministers to account on any changes. As such, we do not believe that it is necessary to specify the OEP as a consultee.

Regarding Amendment 188C, the noble Lord’s suggestion of a standard affirmative resolution procedure is disproportionate and unsuitable in this instance. This power can be used only to make narrow changes, subject to the extensive consultation that I have already set out, to certain water quality standards involving highly technical discussions. Indeed, the report by the Delegated Powers and Regulatory Reform Committee did not feel the need to highlight this delegated power as one which needed stronger parliamentary oversight than the Bill currently provides for.

Finally, regarding Amendment 189 tabled by the noble Baroness, Lady Parminter, reducing household water demand is clearly a priority, as it is for the Government. This is why the Government published a Written Ministerial Statement last week on reducing water demand, announcing numerous measures that they will take forward in response to the 2019 consultation. In answer to the question asked by my noble friend Lady McIntosh, this includes plans to introduce a mandatory water efficiency label to inform consumers and encourage the purchase of more water-efficient products. We will encourage local authorities to adopt the building standard of 110 litres per person per day in all new builds where there is a clear local need, such as in water-stressed areas. We will also develop a road map towards greater water efficiency in new developments and retrofits, to be published in 2022. These measures can be taken forward without the need for new primary legislation.

To reiterate a point I made in an earlier debate about building regulations, which was picked up by the noble Baroness, Lady Parminter, we are having discussions with MHCLG, and my colleagues in Defra and I are pushing for the highest possible standards. There is a huge number of opportunities and we do not want to lose them. She is right about lobbying. As anyone who has been in government knows, lobbying happens. We all get lobbied in government. It is the job of government to discriminate between positive and less-helpful lobbying. However, when the zero-carbon homes policy was cancelled during the coalition Government, there was a lot of pushback by some of the bigger developers who found it unhelpful. They had adjusted their business models, considered what needed to happen, enjoyed the certainty and felt that it was driving innovation, so I think it was a mistake by the coalition Government. It is not always the case that bigger businesses push back on these kinds of regulations.

The Government are not currently making changes to existing rules around when people can be charged for their water use through water meters, but water companies in seriously water-stressed areas may implement wider water metering programmes where it is shown by their water resources management plans that there is customer support and it is cost-effective to do so.

The Government take the health of rivers, waterways and our wider aquatic environment very seriously indeed. A key plank of our 25-year environment plan includes improving the ecological status of our aquatic environment and ensuring that water is both clean and plentiful. I am pleased to have had the opportunity to debate these issues today. I thank noble Lords for their amendments. I have tried to provide a thorough explanation of our approach and respectfully ask them not to press their amendments.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

I have received one request to speak after the Minister, from the noble Lord, Lord Randall of Uxbridge. Lord Randall? Uxbridge is offline. I call the mover of the amendment, Baroness McIntosh of Pickering.

[Baroness McIntosh of Pickering (Con)]

I thank all noble Lords who have contributed to the debate, especially those who spoke in support of Amendment 188.

I pay tribute to my noble friend the Minister. It must be pleasing for him to see his work on the quality of life come to life. I commend a slightly shorter report that we did on bricks and water, which goes to the point of building regulations and minimum standards. I am pleased that he is committed not only to labelling but to the work being done with the Ministry of Housing, Communities and Local Government on minimum standards. As the noble Baroness, Lady Parminter, said, that is extremely important. I share the concern of the noble Baroness, Lady Jones of Whitchurch, that Clause 83 allows a potential weakening of the EU water framework directive. I hope this will not be the case and that, if anything, we might impose higher standards, which we would wish to meet.

--- Later in debate ---

On a point of factual correction, the noble Lord, Lord Cameron, said that we are the only country in Europe which does not charge on value for water. I think Denmark charges through the council tax for its water consumption and that is then passed back to the water companies. That is a lead-in to saying that I wish both teams playing tonight well but, as a half-Dane, obviously I will be wishing Denmark on very vigorously. I hope that my noble friend will listen carefully to those of us who have made our representations so strongly in this group but, at the moment, I beg leave to withdraw Amendment 188.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

Before the amendment is withdrawn, apparently the noble Lord, Lord Randall, has reappeared. Lord Randall? No? He should talk to his MP.

Amendment 188 withdrawn.

--- Later in debate ---

Amendments 192 to 194A not moved.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

We now come to the group consisting of Amendment 194AA. Anyone wishing to press this amendment to a Division must make that clear in debate.

Amendment 194AA

Moved by