Flood Risk Management

Neil Carmichael Excerpts

Wednesday 9th February 2011 Westminster Hall

[Hugh Bayley]

My hon. Friend gives an extremely good example. The Environment Agency says that the cost-benefit ratio of its schemes in the pipeline are 8:1, which was confirmed by the Environment, Food and Rural Affairs Committee’s recent excellent report on flood and water management legislation. That means that we get back much more than we pay. If we leave it to each individual to try to insure themselves—if they are able to insure themselves—the cost to them and the private insurance companies will be much greater than the cost of investing in flood protection. Moreover, if we were to relax the squeeze on publicly funded capital schemes, the jobs that would be created would be in the private sector, precisely where we need to create jobs to pull the economy back on track and to get the Government’s fiscal position looking better than it does now.

I ask the Minister to talk this matter through with the Treasury in the run-up to the Budget. I do not expect any feedback in the purdah period before the Budget. None the less, I hope that his Department will make representations, so that if the Chancellor is talking about relaxing the squeeze on public expenditure, he looks at capital works, particularly the cost-effective investments in flood alleviation.

I will try to be brief because I know many Members want to speak. The City of York council and the Yorkshire regional flood defence committee are considering alternative sources of funding for the Leeman road and Water End scheme, including the possibility of funding from the European Union, which is available to support businesses. I have talked earlier about the enormous impact that flooding can have on commerce. Is the Minister prepared to work with the council and the Environment Agency to try to get support for such a scheme?

Consultation documents from the Minister’s Department reveal that the Government are seeking to transfer part of the cost of providing flood defences from central Government budgets to local communities. I am not making a particular point about that, but I hope that the Minister will listen and focus on what I am saying. He can describe it slightly differently if he wants. It would be a mistake to have a flood tax added to local authority taxation because the boundaries of local authorities do not match the boundaries of river catchment areas. If we are planning to deal with flood waters, we need to plan for the river catchment as a whole.

When York floods, we provide a service for places upstream, because we take the water away from them and prevent them from flooding. Equally, when Selby floods it does a service for the city of York, as it takes our water away and saves us from flooding. That is precisely what Selby is doing at the moment and hopefully it will not flood as a consequence. We are interdependent—that is how nature works—and the funding response needs to take account of how nature works and be based on river catchments rather than local authority areas.

One way in which we might do that is through giving responsibility, in part or in whole, to water and sewage management companies, which of course have been set up to follow river catchment areas. We talk about the “Severn Trent” region. Why is that a region? It is a region because anyone extracting water needs to follow the river courses. Equally, anyone dealing with flood water needs to follow the river courses.

It would be wholly unfair if people in York had to pay for draining water away from upland areas on the east side of the Pennines—the 300,000 square kilometres of land that York drains—or if Leeds city centre had to pay for draining water away from people living upstream in the Wharfe valley. Yet it would be fair for people living in those valley catchments to work out collectively how to deal with the water as a whole. That is what the Environment Agency says they need to do.

[Neil Carmichael (Stroud) (Con)]

Will the hon. Gentleman give way?

[Hugh Bayley]

I will give way in just a moment.

I see excellent work that the Environment Agency has done upstream from York, creating small ponds on agricultural land, planting trees and building dams that can be closed at times when there is a lot of water, so that water can be stored. If we can slow the run-off, we can convert an 18-foot flood over 24 hours in York, which would be catastrophic, into a 15-foot flood over three days in York, which would be quite manageable. The Minister will have seen such schemes. They exist because we cannot expect small communities—working village by village, town by town, city by city—to protect themselves without a scheme being worked out for the catchment area as a whole.

I ask the Minister to consider an interesting proposal that has been put to me by Yorkshire Water that the company could perhaps buy flood defence infrastructure from the Environment Agency, which would give the Government a capital receipt. Yorkshire Water would be able to do so because it can go to equity markets, which a Government cannot do. Of course such a scheme would increase the cost of water, because the company would have to repay the cost of managing floods more effectively. However, it would mean that those increased charges were spread across the river catchment area as a whole—upstream and downstream communities—rather than on downstream communities exclusively.

--- Later in debate ---

[Neil Carmichael]

Will the hon. Gentleman give way?

[Hugh Bayley]

I said that I would give way to the hon. Gentleman. I will do so, then I will give way to the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) and then I will sit down.

[Neil Carmichael]

I just want to support what the hon. Gentleman has been saying about the need to think strategically. In my constituency of Stroud we have the Slad valley, which is a relatively small valley. However, if we had a co-operative Environment Agency, a less rigorous interpretation of the water directive and a general willingness to allow local people to do what they think should be done we would solve a huge number of problems for Stroud, which has nearly 5,000 houses in total that are vulnerable to flooding. My appeal is for more local flexibility, so that we can take action and implement flood alleviation measures.

[Hugh Bayley]

I am glad to receive support from the hon. Gentleman. However, I hope that he will join me in saying that these risks, which people in both our constituencies face, are present and real risks now and that we need Government funding now to address them. I say that because by the time that we work out a new system in five years’ time, our constituencies might have flooded.

In fairness to everyone else who wants to speak, I will take an intervention from the right hon. Member for Berwick-upon-Tweed and then I will draw my remarks to a close.