Water Bill

Mark Pritchard Excerpts

Monday 25th November 2013 Commons Chamber

[Mr Paterson]

I hope that the hon. Lady will not mind if I carry on, as the debate is about the Water Bill rather than fracking.

Earlier this year, we announced that the Bill would also include measures to deal with the availability and affordability of flood insurance. That is an important issue for many Members of the House and their constituents and I am glad that we are making progress on it.

[Mark Pritchard (The Wrekin) (Con)]

My right hon. Friend will know, as a fellow Shropshire MP, that there is significant flooding in areas such as Shifnal and Albrighton in the east of the county in my constituency. What discussions has he had with the Association of British Insurers to ensure that people have access to affordable flood insurance?

[Mr Paterson]

I am grateful to my hon. Friend and neighbour for his question. I shall come on to that in a minute, but we have had exhaustive and extensive discussions with the ABI to ensure that the statement of principles is succeeded by a new regime, on which I shall elaborate in a few minutes.

The main focus of the Bill is reform of the water industry. Reform will provide more choice for non-household customers and bring new entrants into the market. It will use the power of competition to drive efficiency, innovation and benefits to the environment.

--- Later in debate ---

[Mr Paterson]

Our planning guidance is absolutely clear that there should be no building on areas that are subject to flooding.

We know perfectly well that the priority must be to avoid flooding in the first place. That is why we will spend £2.3 billion over this Parliament on protecting households and businesses against flooding. In practical terms, that means that 165,000 properties will be better protected in 2015 than they were in 2010. It is also why we will make record levels of capital investment over the six years from 2015-16: the level will rise to more than £400 million per annum by 2020-21.

We need to give people at high risk of flooding the certainty that they can continue to get affordable flood insurance, as was touched on by my hon. Friend the Member for The Wrekin (Mark Pritchard). We consulted on draft flood insurance proposals over the summer, and I know that hon. Members agree that a solution is essential for the continuing protection of people at high risk of flooding. We are still in intensive and constructive discussion with the insurance industry on some of the finer points of detail, but we plan to table new clauses in time for consideration in Committee. The powers in the Bill will help to ensure that affordable flood insurance is available for households in high-risk areas.

[Mark Pritchard]

My right hon. Friend is being generous in giving way, as is his custom. In addition to those comments, he will know that there is often run-off from motorways and roads, so what discussions has he had with the Highways Agency and local government on that issue?

[Mr Paterson]

That issue is really for the Environment Agency, which works closely with the Highways Agency and local government to ensure that there is no pollution from water that runs off public roads.