Growth and Infrastructure Bill

Lord Shipley Excerpts

Monday 4th February 2013 Lords Chamber

Moved by

[Lord Shipley]

81CC: After Clause 24, insert the following new Clause—
“General duties with respect to water industry
(1) The Water Industry Act 1991 is amended as follows.
(2) In section 2A(1) (guidance on social and environmental matters) after the words “in the guidance” insert “and about how in exercising its powers and duties, the Authority shall take into account aggregate population and housing growth projections relevant to water undertakers and sewerage undertakers”.
(3) After section 2A (general duties with respect to water industry) insert—
“2AA Duty on the Authority (Ofwat) to have regard to local population and housing growth projections in undertaking price reviews
In exercising and performing the powers and duties mentioned in subsection (1) above, the Authority (Ofwat) shall have regard to aggregate population and housing growth projections (which are agreed as part of an adopted local plan, relevant to the individual appointment area or areas of the water and sewerage undertaker).””

[Lord Shipley]

My Lords, I hope that Amendment 81CC will be seen by the Minister as a constructive one. It is supported by the Local Government Association, of which I am a vice-president but it is also supported by the water industry, specifically its trade body, Water UK. The purpose of the amendment is to place a requirement on Ofwat to have regard to future housing projections and demographic growth in adopted local plans. This would give greater certainty for water companies to invest in the essential infrastructure needed to support growth. The benefit for local communities would be more consistent planning such as investment in new reservoirs, more flexibility between water supply zones and upgrades to outdated existing infrastructure to cope with more extreme weather conditions and the increased incidence of drought and flooding.

--- Later in debate ---

[Lord Shipley]

My Lords, I thank the Minister for her reply. I shall read what she says very carefully. I am not sure that I agree that the current system works as well as she indicates—we have ended up with an excess of water in some places and not enough in other places. In the end, we do not seem to be dealing with the leakages, the availability and the flooding that is currently prevalent. I will, however, consult further and think further about the need for an amendment on Report. For the moment, I beg leave to withdraw the amendment.

Amendment 81CC withdrawn.