Water (Special Measures) Bill [ Lords ] (Third sitting)

Neil Hudson Excerpts

Committee stage
Tuesday 14th January 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

It is lovely to see everybody again and it is a pleasure to serve under your chairwomanship, Dr Huq.

Clause 7 will give the environmental regulators new powers to impose automatic penalties for specified offences. The current process for imposing fixed monetary penalties for minor to moderate offending can be time and cost-intensive. To impose a penalty, the regulators must evidence beyond reasonable doubt—the criminal standard of proof—that an offence has been committed. In addition, the fixed monetary penalty amount that regulators can currently impose for certain water industry offences to that standard of proof is set at just £300. That means it is generally not cost-effective for the regulators to impose financial penalties for frequent minor to moderate offending. Clause 7 introduces automatic penalties for specified offences, which will enable the regulators to impose penalties more quickly without having to direct significant resources to lengthy investigations.

I reassure hon. Members that we will consult on the specific offences that will be in scope for the new automatic penalties and on the value of the penalties. The proposed offences will cover information requests and reporting offences, pollution offences and water resource offences. The House will also have the opportunity to debate and vote on secondary legislation before any changes are made. I hope the Committee agrees that this measure is essential for improving compliance across the water sector.

[Dr Neil Hudson (Epping Forest) (Con)]

It is a privilege to serve under your chairship today, Dr Huq. We have no formal objection to clause 7, which imposes a duty on environmental regulators to impose penalties for offences by water company that the clause specifies. Offences have of course increased, and water bosses have been banned from receiving bonuses if a company has committed serious criminal breaches. Regulators have more powers than they used to in being able to impose larger fines for polluters without needing to go to court. The clause focuses on exactly the same principle and we therefore have no formal objections.

I raised in an earlier Bill Committee sitting—this is relevant here—that there has been an increase in the number of inspections that water companies can expect, from 4,000 a year by April this year to 10,000 a year by April of next year. In other words, what has been addressed in the past is not just regulation, but the whole pathway of the enforcement of regulations, so that regulations are not merely blunt instruments but active ones that water companies can expect to have to deal with if they do not act responsibly to their customers, the environment and the wider public.

On that last point, will the Minister clarify and ensure that these offences are and will be enforced and commit to making further amendments to the law, not only regarding the offences themselves, but also on their enforcement, if the Government believe that things need to be tightened up moving forward? Aside from those clarifications, we have no formal objections to the clause.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a great privilege to serve under your guidance this morning, Dr Huq. We also have no objection to the clause and, in fact, we consider automatic penalties to be a positive move.

My concern is that we see water companies not paying the fines that are levied against them. We talk about minor to moderate offences, but water companies wriggle out of paying fines for much larger offences, too. I just want to probe the extent to which the automatic penalties might stretch to what are considered more serious breaches.

I mentioned an example last week in Committee. In November 2021, Ofwat launched an inquiry into sewage discharges and how water companies manage their treatment centres and networks. It found three water companies in particular to be in breach: Thames, Northumbrian and Yorkshire. It imposed fines on those three companies—a £17 million fine against Northumbrian Water, a £47.15 million fine against Yorkshire Water and a £104.5 million fine against Thames Water—but as of autumn last year, not a single penny of that has been collected. It is understood that Ofwat allocated a grand total of eight and a half people to pursuing that particular line of inquiry.

Large fines, which there is no doubt that these companies rightly face, make no difference if they are never collected. That underpins the failure of our regulatory framework—water companies clearly feel they can just run rings around Ofwat and the other regulators. We very much welcome the automatic penalties, but we remain a bit concerned and would like the Minister to clarify whether those automatic penalties would have covered fines of that size as well. Otherwise, we are very supportive of the clause.

[Emma Hardy]

Clause 8 grants the Secretary of State and Welsh Ministers the power to introduce conditions or general rules subject to which water industry abstraction and impounding licences will have effect. This provision is needed to ensure that automatic penalties under clause 7 can be applied to abstraction and impounding offences under the Water Resources Act 1991. Existing licences have been issued since the 1960s and have inconsistent conditions, making the use of automatic penalties nearly impossible.

More broadly, clause 8 allows for the harmonisation of requirements in relation to abstraction and impounding activities so that the sector operates under consistent and modern standards. A delegated power to introduce conditions or general rules through regulations is crucial in this context, because water resource management is dynamic and must be responsive to emerging challenges. I hope that hon. Members will agree that this power is needed to improve the water industry’s regulatory framework.

[Dr Hudson]

Clause 8 seeks to grant the Secretary of State and Welsh Ministers additional powers to impose conditions or general rules on water industry licences relating to abstraction and impoundment activity. His Majesty’s loyal Opposition do not have any formal objections to the clause, but I would suggest that it reinforces some of my comments on clause 6 about the need to make the Government have the powers they need to regulate as necessary a more consistent principle across the Bill.

[Emma Hardy]

I thank the hon. Gentleman for his comments. Modifying the licences individually is both expensive and time consuming, which is why we are hoping to modernise and harmonise the process under this clause. It is crucial that automatic penalties under clause 7 can be applied to abstraction and impounding offences, so this power is needed to improve the water industry’s regulatory framework. For that reason, I commend the clause to the Committee.

Question put and agreed to.

Clause 8 accordingly ordered to stand part of the Bill.

Clause 9

Requirement for Ofwat to have regard to climate change etc

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[Dr Hudson]

Clause 9 would introduce a new requirement for Ofwat to consider, as part of its regulatory decision making and the exercise of its powers and duties as given by the Water Industry Act 1991, the section 1 duty confirmed the Climate Change Act and section 5 of the Environment Act 2021. We have no formal objections to raise to that basic principle and no amendments that we wish to make to clause 9.

Can the Minister provide some clarity on the line that amendment 27 from the Liberal Democrats seeks to remove from the Bill? It states that Ofwat’s duty to have regard to the Secretary of State’s duty to meet environmental targets applies

“where the Authority considers that exercise or performance to be relevant to the making of such a contribution.”

Will the Minister assure the Committee that she and the Government will work with Ofwat so that it has clear guidance on when these environmental targets would be relevant, so that there are no grey areas in Ofwat’s work as it looks to enforce those targets? Can she assure the Committee that the Government will also work with Ofwat to ensure that with regard to its powers and duties in the spirit of clause 9, consumers are protected should there be any subsequent financial costs to water companies, so that we get both environmental protection and the value for money that the tax-paying consumer deserves?

I would be grateful if the Minister provided clarification on some of those questions. However, his Majesty’s loyal Opposition have no formal objections to clause 9.

[Emma Hardy]

As I am sure the hon. Member for Westmorland and Lonsdale will agree, the Government heard the strong support in the other place for adding a further environmental duty to Ofwat’s core duties to support the Government in making progress against our environmental targets. I pay tribute to Baroness Hayman for her work on this.

We understand that there are concerns around the current core environmental performance of the water industry and around the role and responsibilities of the water industry regulators. It is for this reason that the Government tabled an amendment in the other place that will require Ofwat to have regard to the need to contribute to achieving targets set under the Environment Act 2021 and Climate Change Act 2008 when carrying out its functions.

This amendment will further ensure that Ofwat’s work to contribute to the achievement of environmental targets complements the work of Government, who are ultimately responsible for the 2021 Act and the 2008 Act targets. It is important to note that the independent commission announced by the Government will take a full view of the roles and responsibilities of the water industry regulators. Any changes made now to Ofwat’s duties may therefore be superseded by the outcomes of the commission. I hope the Committee agrees that this power is needed to ensure that the environment is considered in regulatory decision making.

Amendment 27 seeks to remove Ofwat’s discretion to exercise its duty to have regard to environmental targets where it feels this as relevant. It will be for Ofwat as the independent regulator to determine how it applies the Government’s new obligation to its regulatory decision making, and how this new duty will not take precedence over other duties. It is for this reason that flexibility has been built into the drafting of this duty, ensuring that Ofwat has discretion to exercise the duty where it feels it is relevant.

Mechanically applying a duty in circumstances where it is not relevant to a particular matter would be a waste of resource. That discretion is in line with similar duties for other regulators. For example, the Financial Services and Markets Act 2000 was recently amended to provide an environmental duty for the financial regulators. It is right that as the independent regulator, Ofwat has the discretion to balance its duties and determine when it is appropriate that they are applied. The new duty introduced by the Government can be only a stopgap before more fundamental reforms are brought forward. For those reasons, we will not accept the amendment from the hon. Member for Westmorland and Lonsdale, and I hope he feels able to withdraw it.

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[Dr Hudson]

Clause 10 amends the Environment Act 1995 to allow the Environment Agency and Natural Resources Wales the power to make charging schemes to recover costs from water companies. While the Opposition wish to raise no formal objections to the clause, we would be grateful for clarification on a couple of points from the Minister.

First, can the Minister explain whether the changes in this clause to the Environment Act 1995 that allow costs to be recovered from water companies could impact consumers in any way? Although it is already possible, we must be mindful that consumers may face extra costs, which I will discuss later regarding issues with the special administration orders that the Government have laid out in clauses 12 and 13, to be debated shortly. Consumers have already been informed by Ofwat that they should expect to see bills rise—the complete opposite of what the Government had said they intended to deliver. Therefore, do the Government feel confident that they can avoid contributing to the problem of a rising trajectory of bills, at a time when trust in the industry, as we have been debating in Committee, remains low due to financial mismanagement from some water companies and, too often, consumers receive poor quality from these services?

A further question, which I would be grateful if the Minister could clarify, is what modelling have the Government done to ensure that all the costs recovered will always be to the benefit of the taxpayer and the consumer? While we all share the desire that water companies that do the wrong thing must pay to put it right, we must ensure that, when we punish those water companies, we do not hurt the end consumer, who very much deserves to be protected. I would be grateful for the Minister’s thoughts on this, but again, we have no formal, explicit objections to the clause.

[Emma Hardy]

Clause 10 requires payment by water companies. It is fair and reasonable that the regulator should recover costs associated with its regulatory functions. Ofwat will consider the regulator’s proposals to determine which costs are appropriate to be passed on. The impact assessment, which I have mentioned in previous debates, details exactly how much all of the Bill will cost the customer. All the details are in there, and I refer the hon. Member for Epping Forest to look at that if he wants the specifics on the exact numbers that each measure will take.

I thank all hon. Members who have contributed their views on clause 10. I remain of the view that clause 10 will empower environmental regulators to become self-sufficient, reducing the burden on the taxpayer to fund water industry enforcement activities. Therefore, I commend the clause to the Committee.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clause 11

Drinking Water Inspectorate: functions and fees

Question proposed, That the clause stand part of the Bill.

[Emma Hardy]

We are making excellent progress on the Bill this morning. I am grateful for the opportunity to speak on the importance of clause 11. I would like to mention the unsung hero of water regulation: the Drinking Water Inspectorate.

The clause enables the Drinking Water Inspectorate to fully recover the costs for the security and emergency regulatory work that it provides to companies. I think one of the reasons that it is an unsung hero is because it does its job so well; that is why not many people have heard of it. The responsibility for security and emergencies was delegated to the Drinking Water Inspectorate in 2022, but since then it has been unable to fully recharge for that work. This clause, subject to amendments to the Water Quality and Supply (Fees) Order 2016, will ensure that the inspectorate can fully recover all costs related to security and emergencies, enabling it to scale up its enforcement activities and enhance its capacity to conduct security and emergencies checks with water suppliers.

The clause will give the DWI greater flexibility in how it structures the fees it charges water companies. It will allow the DWI to introduce new charging models that more equitably share the financial burden of regulation in the water sector. I hope the Committee agrees that the clause rightly remunerates the DWI for its security and emergencies work and allows it to design a more equitable fee structure.

[Dr Hudson]

Clause 11 extends the purposes for which water quality inspectors may be appointed to include functions relating to national security directions under section 208 of the Water Industry Act 1991, and it provides flexibility for the charging of fees for regulatory work. This is a straightforward clause to which we raise no formal objection, but once again we would be grateful for a couple of clarification points from the Minister. How will the Government increase the Drinking Water Inspectorate’s ability to monitor and audit water supplies? Does the Minister feel that the clause will improve the inspectorate’s functions? Will the Minister please explain how the Government intend to support the powers of the Drinking Water Inspectorate, beyond this clause? She praised the inspectorate, and I echo that praise, but how do the Government intend to support its capabilities?

Once again, we wish to raise no formal objections to the clause. I would be grateful for clarity on the points I have highlighted.

[Tim Farron]

We also have no objections to the clause, but I want to probe it a bit. The Minister rightly praised the Drinking Water Inspectorate. I think most of us would say that its performance as a regulator is significantly better than Ofwat’s, but one of the biggest problems that we face within regulation is the fragmented regulatory framework. We have the DWI, Ofwat, the Environment Agency and others too. What consideration has the Minister given to the efficacy of continuing that fragmentation?

The Minister may argue, in relation to the DWI, that if it ain’t broke, don’t fix it. I take that point, but regulation of the water industry is absolutely broke. It is very clear, particularly when it comes to the Environment Agency and Ofwat, that large water companies run rings around the regulators because of their heft, their weight, their capability and the volume of their staffing, which is larger than that of the regulators. The culture of the regulators is sometimes not aimed at pursuing those they are meant to regulate.

Although the DWI is broadly a successful regulator, do we not face the ongoing problem that having so many regulators gives water companies the ability to avoid their responsibilities? Will the Minister give that some further consideration?

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[Charlie Maynard]

We are seeking for the debt providers to take the hit. They have gone into this process and been part of the problem that has led to the state of our rivers today. They should be taking the hit ahead of the customers. That is our direction of travel, and I think that is fair and reasonable. What the clause does is the opposite, and that is what we are going after.

We fully support the losses being recovered by the administration process—we have no issue with that—but if we support the clause as drafted, we will find a very large bill on the customer’s account. That is something we want to avoid. I am keen to hear the Minister’s view as to why it is reasonable for the customer to be paying rather than the lenders.

[Dr Hudson]

On clauses 12 and 13, the Opposition tabled amendments 7 and 8 to remove them. They provide the Government with the power to issue special administration orders to water companies that face financial difficulties.

I put on record my thanks to my Conservative colleagues in the other place for sounding the alarm on this issue when the Bill came forward. They made the case that the measures in clauses 12 and 13 could put the very people we want to protect in such legislation, namely the consumers, at risk. The moral hazard has been explicitly set out by my colleagues in the other place, but I will attempt to summarise it so that we are clear what the problem is. As it stands, the clauses will give the Government the power to recover any losses they make through placing a company in special administration by raising consumer bills.

The problem seems self-evident. If water companies, through their own failure, require the Government to place them under special administration, why should consumers be expected to foot the bill for those failures when they had no particular responsibility for them? It runs contrary to the nature of all the action that has been taken in recent years to try to improve our water quality, and companies that have failed to get their affairs in order must take responsibility.

I was on the Environment, Food and Rural Affairs Committee in the last Parliament, and we spent a lot of time looking at the financial resilience and behaviour of the water sector in close detail. I know that the current iteration is continuing that work. It was concerning to hear about the financial resilience of the sector at first hand in our hearings and meetings. As I said in a sitting of this Committee last week, the financial resilience of the water industry is not a hypothetical issue, but one of paramount concern right now.

We are all starkly aware of concerns surrounding the financial resilience of companies such as Thames Water. We heard about that in detail on the Environment, Food and Rural Affairs Committee in the last Parliament. In November, Ofwat’s “Monitoring Financial Resilience” report identified 10 companies that needed an increased level of monitoring and/or engagement concerning financial resilience. Three were placed in the highest category of “action required”, which means that action must be taken or is being taken to strengthen a company’s financial resilience challenges and that there is a requirement to publish additional information and reporting on improvements at a more senior level with Ofwat.

As well as sending out the opposite message to the companies that Ofwat is working so hard to scrutinise and regulate to protect consumers, clauses 12 and 13 send out the wrong message to consumers themselves. Consumers were recently told that they can expect their average bills to rise by a minimum of about £86, at a time when no doubt some of them have concerns about how to afford their existing bills, along with wider cost concerns. I say gently to the Government that the recent Budget did not help the situation for people’s household budgets. How can it be fair that as a result of these clauses the Government may lead consumers to pay more at a time when many are finding it difficult to pay their bills and do not feel that they are getting the clean water that they deserve? It will potentially add insult to injury when many people are all too aware that they could face higher prices on their water bills because of the Government’s moves.

Shareholders and water company bosses used to be able to receive dividends and bonuses despite polluting our rivers and seas and failing to do the right thing to tackle it. Although reforms have been made to ensure that water company bosses who are not doing their duty with regard to our waterways are forbidden from claiming excessive bonuses, the sting will remain for many people when they keep in mind the prospect of paying higher bills to bail out companies for their poor financial performance.

To water companies, these clauses will send out a signal that they do not have to worry about incurring the consequences of financial irresponsibility, as the Government will have a mechanism to bail them out and consumers may indirectly have to fork out the costs. Nobody is being required to take accountability or face the consequences of the decisions that have caused the failure, but those who have no responsibility or influence are being forced to pay an unfair price increase.

Worse still, the clauses fail completely to specify how much they can require companies to raise from consumers or how much consumers could have to pay in increased costs as a result of the Government’s imposition of these conditions on water companies. That means that any announcements of price changes to water bills, such as those announced by Ofwat, could give no indication at all of how much consumers could end up paying on their water bills. To compound the higher prices even further, consumers may end up facing higher bills to solve special administration financial issues for companies by which they are not even served.

Under clause 12, proposed new section 12J(4) of the Water Industry Act states that “relevant financial assistance” in subsection (3) can include

“any other company which holds or held an appointment under this Chapter and whose area is or was wholly or mainly in England.”

Companies that do the right thing could be forced to pay up, or make their consumers pay up, for the mistakes of those who have failed to do the right thing. As my noble Friend Lord Remnant put it:

“It is the debt and equity investors”

in a company that has failed to do the right thing

“who should pay for these losses in the form of lower proceeds from any eventual sale. Why should a retired police officer in Yorkshire or a hard-working nurse in Cornwall lose out to a hedge fund owner in New York trying to make a quick return?”—[Official Report, House of Lords, 20 November 2024; Vol. 841, c. 293.]

Although in the other place the Government attempted to explain away concerns by suggesting that they do not think that they will have to use the power except as a last resort, and that the bar for special administration would be extremely high, the fact that on more than one occasion the Government could have accepted amendments to remove proposed new subsection (4) must mean that they expect that on at least some occasions they will require its use. The time taken to defend the measure and oppose reforms suggests that this is no mere formality in the wording of the Bill, but something that the Government may put in place.

The Minister in the other place said that the Government would seek to exercise the power in proposed new subsection (4) only if Government bail-outs to water companies could not be financed for the duration for which a company is in special administration—that is, during the shortfall. If that is the condition the Government are setting for the measure—if we have to have the measure at all—could they not have set it out explicitly within the Bill? At the very least, that would have provided clarity about how far the power should be permitted to go.

Clause 13 will provide the Welsh Government with the same powers as those in clause 12. Although the powers in clause 13 are independent of who occupies the offices of the Welsh Government, it should be noted that the Welsh Government who would currently be expected to exercise the powers do not have the most brilliant track record on the water industry, to say the least. Under the Welsh Labour Administration, the average number of spills from storm overflows in 2022 was two thirds higher than in England. That record suggests that the Government in Wales leave much to be desired when it comes to the competence of the water industry, and there is evidence for concern when it comes to exercising the clause’s powers.

Regardless of the specifics of the subsections and of who holds the powers contained in clauses 12 and 13, they are, as they stand, completely against the principles of improving the water industry. I urge the Minister to consider those points and to remove the clauses. Accordingly, we will seek a vote to remove clauses 12 and 13 from the Bill.

[Tim Farron]

I back my hon. Friend the Member for Witney, who has made an excellent case for our amendment to clauses 12 and 13. We are deeply concerned about the issue. There are two aspects to the public’s reaction to the scandal in our water industry. First, there is revulsion about sewage being dumped in our lakes, rivers, streams and coastal areas, which is obviously appalling. Secondly, there is a deep sense of injustice that people are making vast amounts of money while not providing basic services.

For a day or two last week, the coldest place in the country was Shap, in my constituency. I had the pleasure of being there over the weekend. All water was frozen. However, that is not always the case. Last year alone, at Shap pumping station, 1,000 hours’ worth of sewage was pumped into Docker beck. Just along the way at Askham waste water treatment works, 414 hours’ worth of sewage were dumped into the beautiful River Lowther just last year. I make that point because the water bill payers who have to deal with that know that of every £9 they spend on their water bills, £1 is going to serve United Utilities’ debt. That is at the low end of the scale: until the change announced just before Christmas, 46% from Thames Water’s bills was used to service debt.

Over the lifetime of our privatised system in this country, the water companies have collectively racked up £70 billion of debt. That means that all bill payers are paying between 11% and 46% of their bills simply to service those companies’ debt. Our amendment would simply tackle the fact that if investors choose to take risks, hoping to make gains, but fail, they should accept the consequences of those risks, which they chose to take, rather than passing on the cost to my constituents and everybody else’s. It is not for the public to carry the can for corporate failure.

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[Emma Hardy]

I hope this clause will be a little less fractious than the last one—it is pretty straightforward. If a water or waste water company is about to go insolvent, it can make a winding-up petition to court, as may its creditors. If the court is satisfied that the company is insolvent, it must make a special administration order, triggering a water industry special administration regime, or SAR.

Unlike in normal administration, in a SAR the administrator must prioritise the public interest ahead of creditors. In this case, that means ensuring that water and waste water services continue. However, there is no statutory requirement for creditors or the court to notify the Government or Ofwat that a winding-up petition has been made. In addition, neither the Government nor Ofwat have guaranteed rights to be heard at the subsequent court hearings. This creates the risk that a SAR could be triggered without Government involvement. Given the essential nature of water and waste water services, a SAR presents significant risk to public safety if it is not conducted appropriately. It would be vital, in the event of an imminent SAR, for the Government to be quickly made aware of important developments and to be involved in the arrangements for how the SAR is run. Creditors are unlikely to protect the public interest as comprehensively as a Government and may exercise undue influence over a SAR if a Government are unable to make their views heard.

This clause prohibits a court from making an SAO without the Government and Ofwat being notified, and it gives both parties guaranteed rights to be heard at the subsequent court hearings. That provides a vital safeguard against the risks of a SAR being triggered without Government involvement and the potential dilution of the public interests that that could entail. This also updates the water industry’s SAR to bring it into line with more recently introduced regimes, such as energy, where these rights are standard practice. I hope the Committee agrees that these rights are essential to safeguard the public interest and modernise the water industry’s special administration regime. I commend the clause to the Committee.

[Dr Hudson]

The Opposition note that clause 14 attempts to make amendments to previous legislation so that a court may not exercise powers that it currently has with regard to an application for winding up an undertaker without providing advance notice of the petition to the Secretary of State, Welsh Ministers—as appropriate—and Ofwat, and without a period of 14 days having elapsed, as outlined in subsection (2). We also note that the clause likewise grants a further power for the Secretary of State, Welsh Ministers and Ofwat to be entitled to be heard at a winding-up petition’s hearing and any other hearing that relates to part 4 of the Insolvency Act 1986.

Again, we do not wish to raise any formal objections to this particular clause, but we ask for a couple of clarifications from the Minister, if she will indulge us. First, we would like to hear the Minister articulate what benefits this particular clause brings to the Bill. I was not fully clear from her introductory remarks about the actual benefits. Secondly, does she believe that this change to winding up a water company or any other relevant undertaker will provide a fairer winding-up process?

While we are focusing on water companies and the processes for them, we all want to ensure that the clause provides, again, protection for the consumers, who, as we agree across the Committee, have for too long faced unsatisfactory levels of service from the water industry and the practices of some water companies, so could the Minister please explain whether consumers were considered when this clause was drafted? I and others have outlined in Committee that the performance of water companies in financial resilience, as well as many other matters, has not been satisfactory and has been very upsetting for the British public. Therefore could the Minister please respond and assure the Committee that there can be no unforeseen repercussions for consumers from this clause? That is a recurrent theme as we go through line-by-line scrutiny of the Bill: are there any unintended consequences whereby the taxpayer and the end point consumer will be unfairly penalised by the legislative changes? With that in mind, we have no formal objections to this clause but again we seek clarification that the end point consumer will not inadvertently suffer detriment from this legislation.

[Emma Hardy]

To be clear, this is literally just a point of process. The provision, which is not currently available in law, says that in the event of an application to the court for a SAR, the Government will be notified at the same time. The reason, as I outlined in my opening remarks, is that we do not believe that creditors are likely to protect the public interest as comprehensively as the Government. It is a mere process clause that provides that in the event of an application to the court for special administration, the Government and Ofwat need to be informed at the same time. The Government maintain the importance of ensuring that the Government and Ofwat are notified in the event of a winding-up petition. For that reason, I urge that the clause stand part of the Bill.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Clause 15

Extent, commencement, transitional provision and short title

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[Tim Farron]

We recognise and, indeed, strongly believe that patience is a virtue, but on these Benches we are also a bit impatient. Our concern regarding this clause is simply about implementation. There are two categories of things to be delivered. Some are to be done straightaway, and with others it looks like we are preparing to drag our heels. Therefore our amendment seeks to simplify implementation with one clear and immediate deadline for all provisions of the Bill.

Clause 15 provides that issues to do with remuneration and governance, pollution incident reduction plans, emergency overflows and nature-based solutions, for example, will come into force

“on such day as the Secretary of State may by regulations appoint”—

in other words, not right now. That troubles us, given that there is this great sense that there has been a lot of talk about reform of the water industry and we run the risk, at least when it comes to those provisions, of getting just more talk. Making things subject to consultation, further navel contemplation, does not feel like the way to radically reform our industry. Our single deadline would cut through all that and bring the urgent change that the water industry desperately needs, so we commend amendment 20 to the Committee.

[Dr Hudson]

I support Government amendment 5, as it is a privilege amendment in accordance with the procedure for the passage of Bills between the other place and this place. We wish to raise no formal objections to this and we have no opposition to the amendment.

[Emma Hardy]

I thank all hon. Members for their contributions. Amendment 20, tabled by the hon. Member for Westmorland and Lonsdale, seeks to make all provisions in the Bill come into force on the day it receives Royal Assent. I share his urge to get on with things, which is why I am a little confused by the desire elsewhere for another water review, but we will get to that when we get to it. First and foremost, I would like to reassure the hon. Member that the Government have carefully considered the appropriate method and timing for the commencement of each clause and have made provision accordingly in clause 15. A one-size-fits-all approach cannot be justified.

For example, the emergency overflows provision will be implemented over the course of two price review periods to protect bill payers from sudden cost increases. Therefore, the commencement provision for clause 3 has been designed to allow for a staged implementation where it is needed. The Government have already committed in clause 15 to the immediate commencement of the civil penalties provisions on Royal Assent. I assure the Committee that the Government and the water industry regulators are dedicated to ensuring that all measures in the Bill are commenced and implemented as soon as possible and appropriate, to drive rapid improvements in the performance and culture of the water industry.

The hon. Member for Westmorland and Lonsdale tempts me to read through a list of every provision and when they will be enacted, but I am going to save that treat for another time and instead list the clauses, rather than going through them in detail. The provisions in clauses 5 to 8, and in 10 to 15, will all come into force automatically either on Royal Assent or two months later. Clauses 1 to 4 and clause 9 will not commence immediately after Royal Assent and will require secondary legislation to come into force, which is due to the need for regulations required to commence the powers. I am sure that the hon. Member will have thoughts to share on those provisions involving statutory instruments after Royal Assent.

I trust that the hon. Member for Westmorland and Lonsdale is reassured by the Government’s careful consideration of the commencement of each clause, which has the best interests of bill payers in mind and recognises the need to debate and discuss some of the exact details under secondary legislation. I therefore ask the hon. Member to withdraw his amendment.

Government amendment 5 removes the privilege amendment made in the other place. I like this amendment, because one of the quirks of how British politics has evolved is that we have the amendment in the Bill—I found it quite amusing. The privilege amendment is a declaration from the other place that nothing in the Bill involves a charge on the people or on public funds. It is because the Bill started in the Lords that we have to have the amendment to remove that. It recognises the primacy of the Commons, and I think it is quite fun. It is standard process for that text to be removed from the Bill through an amendment at Committee Stage.

Clause 15 sets out the extent of the Bill, when and how its provisions are to be commenced and its short title. The Bill extends to England and Wales only. As set out in the clause, the provisions of the Bill will variously come into force on Royal Assent, two months following Royal Assent, or in accordance with regulations made by the Secretary of State or Welsh Ministers. The clause makes specific provisions, such as that the commencement of clause 3 may make reference to matters to be determined by the environmental regulators.

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[Adrian Ramsay]

I thank the Minister for her response. I appreciate that special administration would only happen in extreme cases. We have, however, repeated failures and neglect, including on environmental performance, from a number of water companies. That is why I wanted to make the provision explicit in the Bill that environmental neglect could be a reason for special administration. I take her point that there are reviews and wider plans underway. Although I am happy not to push this to a vote at this stage, I will take a close interest in how the situation progresses. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 2

Establishment of Water Restoration Fund

(1) The Secretary of State must, within 60 days of the passing of this Act, make provision for the establishment, operation and management of a Water Restoration Fund.

(2) A Water Restoration Fund is a fund—

(a) into which any monetary penalties imposed on water companies for specified offences must be paid, and

(b) out of which payments must be made for expenditure on measures—

(i) to help water bodies, including chalk streams, achieve good ecological status, and improve ecological potential and chemical status;

(ii) to prevent further deterioration of the ecological status, ecological potential or chemical status of water bodies, including chalk streams;

(iii) to enable water-dependent habitats to return to, or remain at, favourable condition;

(iv) to restore other water-dependent habitats and species, especially where action supports restoration of associated protected sites or water bodies.

(3) The Secretary of State must, by regulations, list the specified offences for the purposes of this section, which must include—

(a) any relevant provisions of the Water Resources Act 1991, including—

(i) section 24(4) (unlicensed abstraction or related works or contravening abstraction licence);

(ii) section 25(2) (unlicensed impounding works or contravening impounding licence);

(iii) section 25C(1) (contravening abstraction or impounding enforcement notice);

(iv) section 80 (contravening drought order or permit);

(v) section 201(3) (contravening water resources information notice);

(b) any relevant regulations under section 2 of the Pollution Prevention and Control Act 1999 (regulation of polluting activities etc) related to water pollution;

(c) regulations under section 61 of the Water Act 2014 (regulation of water resources etc).

(4) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(5) The provisions in this section replace any existing provision for the sums received for specified offences, including in section 22A(9) of the Water Industry Act 1991 (penalties).—(Dr Hudson.)

Brought up, and read the First time.

[Dr Hudson]

I beg to move, That the clause be read a Second time. The proposed new clause would introduce a legal requirement that money collected from water companies from financial penalties imposed by the Bill are legally required to be used by the water restoration fund. As with much of the Bill, the Government intend to build on the work begun by the previous Conservative Government. The water restoration fund is one pillar of that record that the Government would do well to advance. I look forward to hearing from the Minister what they plan to do with that excellent fund, which needs to be reinstated and progressed.

I have personally championed the water restoration fund, not only in my present role as shadow DEFRA Minister, but before that as a member of the Conservative Environment Network. I pay tribute to that body for its successful campaigning, which in led no small part to the previous Conservative Government introducing the excellent water restoration fund. In 2022, I was proud to sign the Conservative Environment Network’s “Changing course: a manifesto for our rivers, seas and waterways”. That was its first public declaration, setting out the ambition to introduce this policy recommendation.

In addition to the Conservative Environment Network, I would like to namecheck and thank the good folk of Wildlife and Countryside Link for their support and campaigning for the fund and this proposed new clause. I also pay tribute to the Angling Trust for the discussion we had on this matter, and give a big shout-out to our former colleague Philip Dunne, who was respected across the House. The former MP for Ludlow and Chair of the Environmental Audit Committee made assiduous efforts to see this fund introduced, as well as wider measures to protect our precious waterways.

As we have discussed with the Minister, there is considerable consensus on what we can do collectively and on a cross-party basis to protect and nurture our watercourses and waterways. I hope the Government will take forward and continue the water restoration fund because it is pivotal to what we are trying to do.

[Jerome Mayhew]

I have a slightly cheeky intervention. Is the shadow Minister aware that there is a debate in Westminster Hall at 4 o’clock tomorrow led by yours truly on nature-based solutions for farmland flooding? The fund is central to improving the situation.

[Dr Hudson]

Yes, I was aware of that. I am acutely aware of it now and congratulate my hon. Friend on securing it. It highlights the fact that there is a lot of agreement. I am sure that his debate will demonstrate cross-party consensus on the use of nature-based solutions. We debated flood mitigation in Committee last week, but the water restoration fund is pivotal to trying to improve the situation at the local level and at the local catchment level as well.

Since being introduced by the previous Government, the water restoration fund has provided £11 million for communities to repair their local waterways and restore them to the quality that they should be at—the quality to which local communities should be entitled. At the heart of the proposal is simply this: those who are at fault for the damage done to our waterways must make restoration for it. Given the facts, I find it disappointing that, despite the cross-party efforts in the other place to enact such measures, they were not listened to by the Government. I hope that in a spirit of consensus the Government will look at that in this Session.

The arguments made by the Government in the other place were not satisfactory. They objected to the principle of ringfencing the funding and to the need for the Treasury to have flexibility in how it spends the money, but in this specific case the argument does not quite stack up. Where money comes from taxation, ringfencing is not always the most reliable way to ensure the Treasury has the spending power it needs to deliver public spending, but we are talking about something completely different. Fines are much more uncertain and provide less guarantee regarding the amount of money that they will bring in. To rely on funds such as these for day-to-day broad Treasury spending simply does not make sense.

Ringfencing penalties for the water restoration fund is a much more sensible measure that allows Governments to guarantee that they can meet a specific need. In other words, those who are at fault for harming the quality of our rivers, seas, coasts and lakes make restoration for the damage caused by their action—or inaction. Given all that we have outlined, there cannot be a more justified way of directly making restoration for damage to our previous water system than the mechanism laid out by the water restoration fund. Water companies pay the fines for the damage that they have done, and local communities that are affected are empowered to restore the precious waterways that they live near.

A finer detail of the amendment that should not be ignored is the fact that we will improve chalk streams. It is unfortunately clear that, despite the Government’s pitch to the British public that they would do better than the previous Government in protecting our waterways, their actions on chalk streams do not bear that out. It was very disappointing that over the Christmas period it was revealed that plans from the Conservatives to recover our chalk streams have been laid to one side by the Government. Given that England is home to over 80% of the world’s chalk streams, the failure to act on this issue is neglect of a vital duty to protect a not only a key part of the UK’s environment, but a feature in the environment of the world. They are a precious resource that very few countries are lucky to have access to. Members across this House represent areas with chalk streams. It is a dereliction of duty to ignore that category in the UK environment.

The plans that the previous Government proposed would have given chalk streams a new status of protection. Special consideration would have been given to watercourses in road guidance, and supporting the physical restoration of the streams as key pillars of our plan would have put chalk streams back on the road to the recovery that is needed. As the deviser of the plans has said publicly, although the Government may want to focus on chalk streams in national parks and landscapes, they risk ignoring chalk streams in most need of recovery across the country. Can the Minister explain why this vital plan of action, which was ready to go, has not been fulfilled? I hope that this decision was not based on politics. We need to look at this in terms of evidence and what is best for our environment.

[Emma Hardy]

I wonder whether there has been some confusion, given that the debate on chalk streams comes later on.

[Dr Hudson]

It is actually part of our amendment.

[Emma Hardy]

Well, have a go again then.

[Dr Hudson]

Good. We are all for talking about and raising the issue of chalk streams, but it is clear that we wanted to include that in our amendment. Our amendment will therefore be a chance to give chalk streams the attention they need from this Government. The previous Government were ready to deliver that and hand the baton over to the new Government, so that they could follow through on the explicit requirement that chalk streams be considered.

The amendment is a chance for the Government to reconsider their stance on the water restoration fund. I would be grateful for clarity from the Minister about what they are planning to do. If they are serious about improving our waterways and if the money from penalised water companies is allowed to go back into the local area to improve those waterways, we could agree about that. If the Government do not face up to this, that might be a negation of the various promises they made to the electorate when in opposition and send a message that their words are merely soundbites. I hope that the Minister will consider the points I have made and support this amendment to restore the water restoration fund—for the sake of not only our waters, but the democratic and local accountability on which they rely. We will seek to push new clause 2 to a vote.

[Tim Farron]

I rise briefly to support the new clause. Among many other reasons, it bears great similarity to one proposed by my noble Friend Baroness Bakewell. We consider everything in it to be right. As the hon. Member for Epping Forest has said, we should be deeply concerned about the Treasury seeking to hang on to money that, if there is any justice, ought to be invested back into the waterways that have been polluted by those who have been fined for that very offence.

I talked earlier about the deep sense of injustice felt across the country about those who pollute, who are getting away with polluting and who even—far from being found guilty—are getting benefits from that pollution. The measure would simply codify a move towards the establishment of a water restoration fund, supported, at least in part, by the fines gathered from those guilty in the first place. There would be a great sense of justice being done for folks concerned about how Windermere is cleaned up, how we make sure that Coniston’s bathing water standards remain high and how we deal with some of the issues I mentioned earlier on the River Lowther, River Eden and River Kent.

The water restoration fund should in part be supported by funds gained from those who are guilty: that is basic justice. We strongly support the new clause and will be voting for it if it is put to a vote.

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[Dr Hudson]

I am not reassured by those comments. The Minister says that the water restoration fund does not need new legislation, but we are concerned that the fact that the fund is not in the Bill shows that the Government are not doing anything with it. They are completely silent about it. I fear that they are going to drop the baton they are being handed and let it pass away. The fund needs to be in the Bill. I am not reassured by the Minister, so we will press a vote on the establishment of a water restoration fund in the Bill.

Question put, That the clause be read a Second time.

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Brought up, and read the First time.

[Dr Hudson]

I beg to move, That the clause be read a Second time.

New clause 3, which His Majesty’s Opposition will again push to a vote, has at its heart the people we want to protect—the very individuals who this Committee has acknowledged are most affected: the consumers and bill payers. They are the pivotal reason why we have tabled the clause.

The clause would require the Secretary of State to make provision so that where a water company has faced financial penalties for failure to comply with the law, a financial amount equal to those penalties must be removed from the bills of that water company’s consumers. Of course, one might suppose that it is difficult to make an equivalence between the amount of a financial penalty and the amount to be reduced on the bills, but subsection (2) sets out that it must be calculated by dividing the total financial penalty by the water company’s number of customers. We have laid out a formula that the Secretary of State could follow in fulfilling the duties under the clause.

The Government might object that the clause would create additional duties for the Secretary of State on top of their existing ones, but the Opposition believe that the measure is relatively simple, can be calculated and is worth adopting for the very principle of accountability for which all of us across this House are striving.

I have already mentioned that, when the Conservatives were in government, we took action to set out that water bosses would be banned from receiving bonuses if a company had committed serious criminal breaches. The Bill copies that and takes it forwards, but the new clause takes the principle of accountability, which has been raised in the Committee’s last couple of sittings, even further.

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Dr Huq. The hon. Member referred to the record of his party while in government for the last 14 years, and said that it set the threshold for a water boss being denied a bonus at the level of criminal activity. Does he agree that many of our constituents would find it strange to set a bar for not having a bonus at the level of committing criminal activity, given that in many workplaces up and down the country a bonus is based on good performance and on serving customers? The last Government set the bar for banning bonuses far too high, and that is why, despite repeated failure, the boss of Southern Water still received a bonus, as the boss of Ofwat confirmed to the Select Committee.

[Dr Hudson]

The Conservative Government were the first Government to start addressing this issue by actually evaluating the data, monitoring overflows and monitoring outflows. I gently remind the hon. Member that when her party left power, only 7% of storm overflows were measured; when the Conservatives left power, 100% were measured. We were the first party to find that there was a problem.

To return to the dental analogy, in the last parliamentary Session we tried to give the regulators more powers—more teeth—to go after the water bosses. We need to firm up how the regulator has been using those powers, so that we can hold the water companies to account. I agree that there is outrage across the House about how water companies have breached their terms of reference and broken the law. We have tried to hold them accountable. The Bill will try to take things further, but I gently say to the Government that we were the party that started collecting the data, which allowed us to realise the scale of the situation and try to introduce measures to sort it.

The new clause ensures fairness for customers and ensures that fines on water companies will not impact customers, who are not at fault for the water companies’ mistakes or the bad practices that led to the fines. We believe that customers should not be impacted by fines imposed on water companies. The clause attempts to remedy that. In the name of accountability and trust between the public and Governments—of all colours—that seek to address this issue, subsection (3) states that the reductions to customer bills imposed under the clause will be indicated on the statement of account for each consumer who has received the reduction. We believe that that is important.

For too long, a toxic cocktail of water companies’ poor behaviour and rising bills has led too many people to feel that they are getting poor value for money, and that they are not getting the quality water services they deserve for the price they are paying—hard-working people, up and down the country, who work consistently to pay their bills and do the right thing, while the water industry’s negative practices continue. Given the amount of time we have spent talking about this issue, they may also feel that the new Government are not willing to act to protect the consumer in this area.

Subsection (3) seeks to break that cycle and send a signal to bill payers that actions to regulate water companies have a real, tangible effect. Showing the reduction in consumer bills directly on the statement of account will provide a real, tangible sign that the poor behaviour has been looked at, people are going after the water companies and consumers will benefit from that. It also serves as compensation for those who have been directly affected and as an example of justice in action—the principle being that those who harm pay a penalty, and those who are harmed receive restitution.

I return to my comments about the water restoration fund. Fines being re-circulated into the local area will be good for local accountability.

[Dan Aldridge (Weston-super-Mare) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Huq. The hon. Gentleman talks about the outrage across the House, and I also feel outraged as a member of the public. The vast majority of my constituents are incredibly outraged at the situation they find themselves in. One of the things I am told when I knock on doors in my constituency is, “The previous Government have shown no contrition about their role in the degradation of our waterways.” The Opposition have a revisionist attitude that is incredibly perplexing to me and angering to my constituents, so I would just like to see a bit of contrition from them.

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[Dr Hudson]

Can I just say that the previous Government went and looked for the problem, and found the scale of it? We all agree that it is a huge problem that needs to be addressed; we are not downplaying the scale of it. We collected data and were brave enough to say, “There is a problem.”

Labour Members threw a lot of things at us during the passage of the landmark Environment Act 2021. They have made misleading comments about Conservative Members of Parliament, but we were the party that grasped the nettle and said, “There is a problem, and we need to look at it.” A lot of the amendments that were tabled to try to scupper the Environment Act were completely uncosted and would have cost taxpayers lots and lots of money. We tried to introduce practical, cost-effective, reasonable measures to address the scale of the problem that we unearthed.

[Jerome Mayhew]

The shadow Minister is right that a lot of the supposed solutions were uncosted and had an impractical timeframe. One that springs to mind was the Liberal Democrat amendment that was costed: there was a tax that was supposed to pay for the improvements to water quality. Does he agree that, on a basic calculation, it would have taken more than 300 years to pay it back?

[Dr Hudson]

I agree. Amendments are easy to table with a view to obstruction and making political points, and those were not affordable and would not have been deliverable in any realistic timescale. Governments have to make realistic, cost-effective decisions that honour the taxpayer, and they have to be clear with the public about how such measures will be implemented and paid for.

If the Government do not support our amendment, I hope they will clarify what steps they are taking to protect customers from the knock-on impact of fines. Unfortunately, in many industries when costs are imposed, customers sometimes pay higher prices. With the new clause, we want to ensure that when we rightly impose financial penalties on water companies there are no unintended consequences for the consumers we aim to defend by imposing the financial penalties in the first place. With that in mind, and given the aim of accountability, we sincerely hope the Government will support the new clause. Ultimately, we aim to press it to a vote.

Ordered, That the debate be now adjourned.—(Jeff Smith.)

Water (Special Measures) Bill [ Lords ] (Second sitting)

Neil Hudson Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[Tim Farron (Westmorland and Lonsdale) (LD)]

There are no further comments from us, and we do not seek to press to a vote any of the amendments that we have tabled. We are concerned that there is not enough detail in the Bill about the impact of pollution incidents on the wider environment, much as I am grateful to the Minister for many of the comments she has made. All the same, we will not seek to trouble the Committee with a vote at this stage, and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Dr Neil Hudson (Epping Forest) (Con)]

In the interests of promoting transparency and clarity, we would still like to press our amendment 6 to a vote. To bolster, support and protect the precious integrity of our national parks, we would like to do the same with amendment 9.

Amendment proposed: 9, in clause 2, page 5, line 10, at end insert—

“(2A) A pollution incident reduction plan must, in particular, state how the undertaker intends to reduce the occurrence of pollution incidents in national parks that are attributable to its system.”— (Dr Hudson.)

Question put, That the amendment be made.

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[Dr Hudson]

It is a great pleasure to speak to amendment 3, in the name of my hon. Friend the Member for Beaconsfield (Joy Morrissey). Today, there is a recurrent theme—transparency and clarity. We want cleaner waters and we want the data collection to be transparent and available to people so that they can actually monitor and analyse. The spirit of this amendment is, again, transparency and clarity.

Amendment 3 would, as the text suggests, make it a statutory requirement for water companies to publish the information that they have on discharges from emergency overflows on the home page of their website. Some water companies already go some way to discussing overflows of different kinds, including what they are and why they occur, but this amendment from my hon. Friend would go further by setting a clearer guideline for how transparent water companies must expect to be for every specific incidence of an emergency overflow that may occur.

We of course know that emergency overflows are those that occur particularly when technical faults or blockages in the water system arise and require overflows to help with their resolution, as opposed to storm overflows, where the system is overwhelmed by excess surface water or groundwater entering the network. The work of the previous Conservative Government tackled the issue of storm overflows—unlike any Government who had preceded them—including by, as I have said, getting 100% of reporting and monitoring of storm overflows, which was at 7% back in 2010. That was in addition to fast-tracking £180 million of investment from water companies to prevent 8,000 sewage spills in 2024, and introducing requirements for further investment, over 25 years, of upwards of £60 billion.

Moving forward, however, we need to ensure that emergency overflows are treated with a similar parity of attention. We do not want the hypothetical situation to arise whereby the problem of storm overflows, which have had so much attention in recent years, is simply shifted to emergency overflows, and technical fault is used as an unnecessary justification for emergency overflows to occur. By requiring emergency overflow information to be published on the home page of each and every water company’s website, this risk is potentially alleviated.

Although the Government may argue that the risk is alleviated by clause 3 in and of itself, this amendment goes further in its specificity about the publication of data relating to emergency overflows. By requiring the home page to be used for publication of emergency overflow data, the requirement in clause 3 that the information be published in a way that makes it readily accessible to the public would be given a definition that the Bill in its current form lacks. In other words, amendment 3 would provide explicit clarity in the Bill for water companies about the requirements for publication of emergency overflow information, without the risk of dispute down the line about whether an individual company has complied with the measure’s requirements.

On that basis, I encourage the Government to support the amendment, as it clearly does not seek to frustrate their intentions to be stringent with the water companies about duties on emergency overflows. The amendment merely strengthens the existing conditions in the clause by providing further clarity and specificity. We urge the Government to consider it.

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[Tim Farron]

I beg to move amendment 17, in clause 3, page 9, line 1, leave out from start to “in” and insert—

“a Minister with specific responsibility for issues relating to the coast,”.

I have made my argument in favour of amendment 17, probably at the wrong time. I do not seek to press it to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Dr Hudson]

I beg to move amendment 4, in clause 3, page 9, line 38, at end insert—

“141H Failure to report discharge from emergency overflows

(1) If a relevant undertaker fails to comply with its duties under section 141F—

(a) the undertaker commits an offence, and

(b) the chief executive of the undertaker commits an offence, subject to subsection (2).

(2) It is a defence for the chief executive to prove that they took all reasonable steps to avoid the failure.

(3) A person who commits an offence under this section is liable, on summary conviction or conviction on indictment, to imprisonment for a term not exceeding 5 years or an unlimited fine, or both.”.

This amendment would make it an offence for an undertaker to fail to comply with its duty to report discharges from emergency overflows.

In my remarks on amendment 3, I highlighted the fact that parity of attention between storm overflows and emergency flows is critical to action in regulating the water industry. With that point in mind, I move amendment 4, in the name of my hon. Friend the Member for Beaconsfield, which would make it a criminal offence for water companies and their chief executives to fail to comply with their duty to report on discharges from emergency overflows.

As I stated earlier, much was done to tackle the issue of storm overflows by the previous Conservative Government, including the passing of the Environment Act 2021, which we have spoken a lot about today. That introduced the statutory duty for water companies to publish storm overflow data in England every year and a storm overflow discharge reduction plan that created strict targets for sewage pollution and demanded water company investment in the necessary infrastructure to resolve issues.

Amendment 4 would address the need to ensure that emergency overflows are subject to the strict enforcement that we have seen exercised towards storm overflows in recent years. We have seen that an emphasis on strict enforcement can work in getting the reform that we all want to see the industry practise, and indeed in improving water quality. I note and welcome the comments from the hon. Member for Witney who welcomed the progress that we have made in that area on monitoring and trying to address these issues.

The Government have set out in the Bill plans to put in place a criminal offence for failing to co-operate with or obstructing regulatory investigations. The amendment seeks to address a gap in those plans in a key area of public concern—a duty to report discharges from emergency overflows.

Despite significant steps, some water companies are not taking their responsibilities to protect our waterways seriously enough. This is a sector where the rewards for success have historically been high for shareholders and, as we have heard a lot about, for executives. It is time now for serious consequences for failure to protect our waterways and the public to sit alongside those rewards for success.

The duty to report discharges from emergency overflows is basic, reasonable and vital to public transparency. I come back to our points about transparency. There can be no defence from any water company that it does not understand that duty or why that duty matters. Given the Bill already puts in place the principle of a criminal offence for failure to fulfil a reasonable duty and establishes a criminal offence for failure to co-operate or to obstruct a regulatory investigation, the amendment would strengthen the Bill’s intent that water companies’ conduct must be subject to criminal sanction and unlimited fines.

Of course, at the same time, however, as human error and technical fault can plague many walks of life and water companies are no exception, there must be a fair and reasonable opportunity for water companies and chief executives accused of violating their duties to show that they have genuinely tried to comply with the duties of reporting emergency overflows. Therefore, subsection (2) of amendment 4 provides explicit criteria that failure to meet the duties of publication for storm overflows does not result in a criminal offence when the company has done all it reasonably could to prevent the incident from occurring.

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[Emma Hardy]

I thank the hon. Member for Beaconsfield for tabling amendment 4, which seeks to make a failure to publish discharge data from emergency overflows in near-real time a criminal offence.

I wholeheartedly agree that it is vital that regulators have a clear means of ensuring that water companies comply with this duty. However, clause 3 already ensures that the duty is enforceable by Ofwat under section 18 of the Water Industry Act 1991, which provides a range of tools—including significant fines—for Ofwat to bring companies into compliance. Changing the provision to a criminal offence might slow down enforcement, because criminal prosecution is typically slower than enforcement by section 18 of the 1991 Act.

In addition, we do not believe that in this case it would be proportionate to create direct criminal liability for a chief executive, particularly the potential sanction of imprisonment, because the large number of emergency overflows operated by companies, with each company operating in a different situational context, means that it is unreasonable to hold a single person to account for full compliance with the duty. By making changes such as introducing bonus bans and provisions to support prosecuting executives for obstructing the regulator, the Bill already strengthens provisions to hold executives to account for wrongdoing.

[Dr Hudson]

I thank the Minister for her comments. I can confirm that we will not push the amendment to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Dr Hudson]

I beg to move amendment 10, in clause 3, page 9, line 38, at end insert—

“141H Restriction on the use of emergency overflows in areas used for aquatic sports

(1) A sewerage undertaker must not permit a discharge from an emergency overflow in an area used for aquatic sports.

(2) In this section, an ‘area used for aquatic sports’ is a section of any body of water connected to and within a one mile radius of—

(a) the clubhouse of a rowing club affiliated with British Rowing,

(b) a Royal Yacht association training centre or the clubhouse of an affiliate member, and

(c) the properties or facilities used by any organisation that the Secretary of State deems to provides water-based sporting activities for the purpose of teaching, training or leisure.

(3) If a relevant undertaker fails to comply with its duties under section (1)—

(a) the undertaker commits an offence, and

(b) the chief executive of the undertaker commits an offence, subject to subsection (5).

(4) It is a defence for the chief executive to prove that they took all reasonable steps to avoid the failure.

(5) A person who commits an offence under this section is liable, on summary conviction or conviction on indictment, to imprisonment for a term not exceeding 5 years or an unlimited fine, or both.”

This amendment creates an offence for a sewerage undertaker to use an emergency overflow in an area used for aquatic sports.

I will try not to mention teeth in this part of our proceedings, but I cannot promise. It is with great pleasure that I rise to speak in favour of amendment 10, on behalf of my hon. Friend the Member for Beaconsfield —this is sounding like “Groundhog Day”, isn’t it? The amendment has a simple principle: that waters used for aquatic sports should be subject to the same protections as those used for bathing. It establishes that there should be clear consequences for water companies and their chief executives when they fail to comply with a clear duty to protect the waters in which people practise aquatic sports.

Aquatic sports are an important part of our sporting heritage in this country, but the impact of overflow discharges into our waterways and rivers is potentially creating an existential risk to some sports clubs up and down the country. We have heard reports of increased incidences of illness among participants as a direct and indirect consequence of exposure to pathogens and bacteria from sewage outflows in the waterways where they practise their water sports. That is a significant cause for concern for our rowing, sailing, canoeing and other aquatic sports clubs.

Many clubs take their duty of care very seriously indeed. They are having to put in place their own monitoring systems to protect their participating members. Training sessions, competitions and regattas are all facing potential cancellation, and participation in those sports risks becoming less attractive and less available to people. We can all agree that actively participating in sport and physical exercise is so good for not only our physical health, but our mental health. Any deterrents discouraging people from being involved in some sports are deeply regrettable.

The amendment is trying to put the safety of the waters used for aquatic sports on the same basis as those where people bathe. It is time for water companies to take responsibility for ensuring that those waters are safe to use. The amendment sets out a reasonable expectation that a water company must not discharge from an emergency overflow within a one-mile radius of an area used for aquatic sports. The definition of such an area is clearly outlined, and further discretion is provided for the Secretary of State to determine such areas where needed. The consequences for water companies and their chief executives for failure to comply with this duty are set out clearly and are consistent with amendment 4, also tabled by my hon. Friend the Member for Beaconsfield.

[Emma Hardy]

I thank the hon. Member for Beaconsfield for proposing amendment 10, which seeks to make it an offence for sewage undertakers to use an emergency overflow in areas used for aquatic sports. I will mention how much I enjoyed meeting the Clean Water Sports Alliance just last week to hear about its fantastic work to get us all up, out and active, although I have so far resisted the temptation to don a wetsuit and join in.

I agree that it is vital for us to reduce the impact of sewage pollution, so that our children and their children can make the memories that we did enjoying our waterways. However, we do not believe that the amendment is necessary. It risks duplicating existing requirements to limit pollution for emergency overflows, as well as protections for bathers that are already in place. Emergency overflow discharges are permitted only in very strict circumstances and as a last resort, such as in the event of mechanical breakdown or a downstream blockage. That factsheet on the different circumstances might help.

Should an emergency overflow discharge occur outside permit conditions, the Environment Agency is able to take robust enforcement action, including fines and criminal prosecution. The measures in the Bill will increase transparency around emergency overflow discharges, shining a light on where they should not be happening.

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[Emma Hardy]

As I say, I wholeheartedly agree with the intention behind the amendment, but I note that later on we will be discussing the importance of chalk streams as well. The amendment would create a hierarchy between what is important and what is not. My argument is that emergency overflows are a problem wherever they are, and they should not be used unless it is, as the Bill says, an absolute emergency.

Measures in the Bill will increase transparency around emergency overflow discharges, shining a light on where they are happening. Although emergency overflow discharge should occur only very rarely—when it says on the tin; it should be an emergency—it is not possible to eliminate them altogether, as they are important safety valves to protect businesses and home in time of emergency. Removing or blocking emergency overflow outlets could lead to excess effluent waste water being released elsewhere, including through manholes. That would have significant safety implications.

Significant protections are in place for designated bathing waters both inland and on the coast. The Government consult on and designate our bathing waters. The Environment Agency monitors them to ensure that the health of bathers is protected, and to assess what action is needed to improve water quality. Once designated, water companies are required to investigate and improve bathing water sites, including with upgrades and improvements to overflows where needed. As part of the storm overflow discharge plan—those are obviously different from emergency overflows—by 2035 water companies will have improved all storm overflows that are discharging near every designated bathing water. We have also recently consulted on reforms to the Bathing Water Regulations 2013, including expanding the definition of “bathers” to include other water users.

A Government response to the consultation will be issued in due course, and if reforms are taken forward in future, that could mean that more bathing sites, including those used by aquatic sport users, will be subject to improvements. As such, we do not believe that the amendment is required.

[Dr Hudson]

I thank the Minister for her comments and for acknowledging the importance of the safety of the waters in which people practise water sports. I also thank the hon. Member for Westmorland and Lonsdale for supporting that concept—we must try to keep these waters safe. I confirm, happily, that we will not be pushing the amendment to a vote.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to consider new clause 25— Duty on sewerage undertakers to monitor overflows at sewage treatment works, pumping stations and on the sewer network—

‘(1) The Water Industry Act 1991 is amended as follows.

(2) In section 94—

(a) after subsection (1)(b) insert—

“(c) to make provision for the accurate collection of data relating to its performance in fulfilling its duties under paragraphs (a) and (b).”

(b) after subsection (2) insert—

“(2A) In performing its duties under subsection (1)(c), a sewerage undertaker must—

(a) install volume flow meters in all locations where sewage overflows occur, including sewage treatment works, pumping stations and on the sewer network for which it is responsible;

(b) establish appropriate required capacities for each sewage treatment works and pumping station;

(c) publish information on the data and calculations used to establish such required capacities; and

(d) install all required monitoring tools within 12 months of the passing of this Act.”’

--- Later in debate ---

[Jerome Mayhew]

I understand that this will not be put to a vote, but I want to add my support for nature-based solutions and to draw to the Minister’s attention an experience I had with Anglian Water. It had a village-sized water treatment works just over the border in north Norfolk at a place called Langham. The chalk stream that the sewage works discharge into is the Stiffkey, which runs through my constituency and then just over the border. To its great credit, Anglian Water co-operated with a local landowner and created a wetland. I would have thought it would be the easiest thing in the world to have the treated sewage discharge into a secondary processing unit—it was, from memory, about two acres in size, so it is quite a large wetland with meandering going through it—and then exit back into the Stiffkey.

The Environment Agency eventually allowed this to take place, but it is worth highlighting that its initial response was, “No, you have to apply for a new licence to discharge effluent into the river.” That was because it was coming not from the pipe, which was semi-treated, but from a new entrance into the stream via the wetland. The “computer said no” attitude of the Environment Agency was quite extraordinary, because it was not going to get any worse with the discharged water going through a wetland before entering the stream, and yet it took several months. It was a very significant constraint, and it called into question whether or not the project would go ahead.

I would be grateful if the Minister could take that away with her and ensure that the Environment Agency sees the development of wetlands as a really positive step forward. I know its senior leadership does, but that message should go right through the organisation so that the time and delay of bureaucracy, and the requirement for new applications for licences, do not get in the way of what we all wish to achieve.

[Dr Hudson]

I rise to speak to new clause 5, tabled by His Majesty’s loyal Opposition. We are talking about practical nature-based solutions to flood risk. I welcome the comments made about nature-based solutions, not least from the hon. Member for Westmorland and Lonsdale, who talks passionately about the importance of nature-based solutions for flood mitigation and that side of things.

I noted that during the election campaign, he waxed lyrical about Windermere, which is a beautiful part of his constituency. I know that he was an active participant with the leader of his party in water sports as well, although I note that he was a lot more competent at staying on the paddleboard than his leader. I welcome his comments on the importance of protecting and preserving our water spaces, but very much encourage the Government to facilitate landowners, land managers and farmers to do nature-based solutions to mitigate flood issues.

New clause 5 would try to ensure that water companies consider practical, nature-based solutions to flood risk. That would also make water companies try to improve water quality and nature restoration in their catchment areas, so there would be a double win. In Government, we Conservatives set specific, legally binding targets to improve water quality and availability in order to try to reduce nutrient pollution and sediment pollution from agriculture to the water environment. We also set out how to reduce water pollution in our environmental improvement plan. Nature recovery was carried out under us, and opportunities to do that with nature-based solutions should be seized on as we move forward.

--- Later in debate ---

[Emma Hardy]

Individuals can already be prosecuted, under section 110 of the Environment Act 1995, for obstructing Environment Agency investigations. However, that legislation does not allow executives to be prosecuted where obstruction has occurred with their consent or connivance or is attributable to their neglect. The Bill will remedy that omission by adding a consent, connivance or neglect provision to the Act, meaning that executives or other relevant officers may face imprisonment if obstruction occurs as a consequence of their actions.

[Dr Hudson]

The Opposition have no formal objections to the clause, but I do have a couple of clarifying questions. I realise I am getting into territory with which I have no familiarity. I am not a lawyer; I am a veterinary surgeon. When we are changing offences to make them more criminal, there are implications for the courts and for individuals. Although expanding the options available to the court when sentencing offenders who have not followed the rules is welcome, how have the Government ensured that the offences are clear, so that those who commit them face the full punishment if and when required?

In terms of modelling the potential impact downstream, what work have the Government done to look at the situation retrospectively? If this provision had been law over the last few years, how many offenders would have been caught by it and potentially imprisoned? I realise that that is quite a technical question, but I wonder if the Government have looked at that at all. When we bring in laws, we need to ensure that we are aware of their implications and know how the legal and judicial system can exercise them. However, we have no formal opposition to the clause.

[Tim Farron]

Likewise, the Liberal Democrats have no objection at all to this clause. I cite from memory that in 2021-22, there were just under half a million spillage incidents in this country: a total of 16 were prosecuted, eight with a fine of more than £50,000. I think what the Minister was getting at before was that very often, it is worth taking the hit. First, organisations get away with it, but even if they do not, they pay a pittance compared to the cost had they invested properly in the infrastructure. It is right to take these things seriously. However, prosecutions with potential imprisonment and loss of liberty may be as few and far between as prosecutions relating to fines, unless we make sure that the whole process is more rigorous than it has been so far.

We are supportive of the clause and I need say nothing further.

--- Later in debate ---

[Emma Hardy]

Regulators can currently impose civil penalties where they are satisfied beyond reasonable doubt that an offence has been committed. The civil penalties are imposed by the regulators, rather than through the courts. The criminal standard of proof is appropriate for severe offences—for example, where there is a major impact on human health, on quality of life or on the environment. A high investigatory burden is not proportionate for minor to moderate offences that have a lower impact. Clause 6 will allow these offences to be enforced more quickly, cost-effectively and proportionately by enabling penalties to be imposed using the civil standard of proof, which is

“on the balance of probabilities”.

The penalties will be in addition to existing enforcement options that can be imposed only using the criminal standard of proof, including prosecution and unlimited variable monetary penalties, which will remain unchanged. Of course, the most serious cases will still require criminal proceedings. The Government will consult on the specific offences for which the civil standard of proof may be used and on the cap for the new lower standard of proof for variable monetary penalties. There are no plans to remove unlimited penalties for severe offences. Parliament will then debate and vote on secondary legislation before any changes are made.

The clause will strengthen the power of the water industry regulators, driving improved performance in the sector, and I commend it to the Committee.

[Dr Hudson]

I note that clause 6 would grant the Secretary of State and Welsh Ministers the power to introduce secondary legislation concerning fixed and variable monetary penalties, as confirmed by the Regulatory Enforcement and Sanctions Act 2008. It would likewise change the condition of imposing these penalties from “beyond reasonable doubt” to

“on the balance of probabilities”.

Although His Majesty’s Opposition have no problems with the clause, we believe it would be beneficial for the Minister to make some clarifications to aid the reading of the clause in the future. First, how often does the Minister think that secondary legislation may be required for the fixed monetary penalties? During the last Government’s period in office, we knew that sometimes penalties needed to be adapted to get regulation of our water industries right. As I discussed in previous debates, the Conservative Government saw fit to amend the amount that water companies could be fined for violating the water quality rules.

As was also mentioned earlier, Baroness Hayman in the other place highlighted the importance of flexibility in changing rules on the water industry. The Opposition agree that flexibility is important, but for there to be flexibility, there also needs to be consistency, and awareness and monitoring of the issue so that we know exactly what flexibility is needed. Could the Minister therefore comment, now or in due course, on whether the Government will be continuously updating and monitoring to ensure that monetary penalties are having the desired outcome, that they remain aware of any potential issues and that they can determine whether they need to modulate and change things?

Does the Minister support the use of secondary legislation to increase scrutiny? As we have already discussed, the Government have sought to avoid the responsibility of accountability at ministerial and Government level by using statutory instruments for things like Ofwat’s remuneration and governance guidance. Can they not see that a bit of a discrepancy remains? If they are willing to use available powers to make change but not enhance powers, they might need to do that on other issues that we have discussed. Barring those comments and clarifying questions, we have no formal objections that we wish to raise.

[Emma Hardy]

I thank the hon. Member for Epping Forest for his contribution to the debate. I think the point my hon. Friend, and friend, Baroness Hayman made in the Lords is that we do need some flexibility, and that it would be inappropriate to set out the details of implementing these powers in the Bill, because that would result in a fixed power that would not be adaptable to the industry’s circumstances. We would like to be able to continue to adapt it.

I think the shadow Minister is trying to make sure that we set things in the right way and at the right level. That is why Ofwat will be doing a consultation. We want the level to be a deterrent rather than something that water companies can easily dismiss, but it needs to be set at the right level. It is important that that is done properly and through consultation.

I am grateful that everybody supports the clause. By strengthening the powers of the water industry regulators, we will drive improved performance in the sector.

Question put and agreed to.

Clause 6 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Jeff Smith.)

Water (Special Measures) Bill [ Lords ] (First sitting)

Neil Hudson Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[Charlie Maynard (Witney) (LD)]

I rise to explain amendment 22. On 11 July, the Environment Secretary issued a press release on the reform of the water industry that stated:

“Water companies will place customers and the environment at the heart of their objectives. Companies have agreed to change their ‘Articles of Association’—the rules governing each company—to make the interests of customers and the environment a primary objective.”

However, that commitment is not currently in the Bill. The amendment simply seeks to bring that commitment into this legislation.

[Dr Neil Hudson (Epping Forest) (Con)]

It is a great privilege to serve under your chairmanship, Mr Vickers.

On behalf of His Majesty’s Opposition, I rise to challenge the Government on their plans in Government amendments 1 and 2. Before I go into the detail, I will make some general comments about the clause that are pertinent to the amendments.

The Opposition worry that the Bill, rather than taking original and new measures to tackle these issues, is purely an attempt to copy and paste the work done by our previous Conservative Government. In fact, many of the measures have already been copied from previous measures that we introduced in government.

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

In the Environment, Food and Rural Affairs Committee, we took evidence from the chief executive of Ofwat, who was clear that the bonus that the boss of Southern Water, Lawrence Gosden, received this year would not have been paid had the previous Conservative Government brought the measures in this Bill before the House. The Conservatives had 14 years to change the rules, but they failed to do so.

[Dr Hudson]

With the greatest respect, I sat on the Environment, Food and Rural Affairs Committee in the previous Parliament, and we took evidence from the chief executive of Ofwat on some of the key measures that the Conservative Government brought forward. Our Government gave Ofwat teeth and powers, and we need to make sure it uses them.

As detailed in the explanatory notes, Ofwat already has wide powers to set the conditions of water company appointments and licences. The Conservatives worked hard to strengthen its ability and power to do that since this issue came to the fore in order to drive the regulatory change that was vitally needed to tackle the scale of the crisis that came to light.

I again remind Members on both sides of the House that when Labour left office in 2010, only 7% of storm overflows were monitored; when we Conservatives left office, 100% of outflows were monitored. We found the scale of the sewage problem and were the first party to start to address it. The Conservative Government’s Environment Act 2021 gave Ofwat the power to consider, when deliberating about dividends, the environmental performance of a company and its credit rating, whereby Ofwat could stop the paying of dividends if it felt that the firm faced financial risks as a result of its actions.

[Charlie Maynard]

The hon. Gentleman said that 100% of outflows are monitored, but I am afraid that is not correct. In fact, 100% of the 14,000 storm outflows are monitored—he did not mention storm—but 7,000 emergency overflows are not currently monitored. On the other aspect that he just mentioned, Ofwat was entirely devoid of looking at the balance sheets of the companies under the Conservatives’ watch. That is the root of all our trouble, and it would be beneficial to acknowledge that.

[Dr Hudson]

If the hon. Gentleman checks Hansard, he will see that in my speech on Second Reading and just now I said “storm overflows”. I gently remind the third-party spokesman that in the coalition Government the Liberal Democrats had a Water Minister who did absolutely nothing on this issue.

[Helena Dollimore]

Will the hon. Gentleman give way?

[Tim Farron]

Will the hon. Gentleman give way?

[Dr Hudson]

I will make some progress, if I may.

[Tim Farron]

The hon. Gentleman has just referred to me—

[Dr Hudson]

I was referring to the hon. Gentleman’s colleague.

It is therefore worrying that although the previous Administration went to great lengths to ensure that water companies were financially resilient, this Government are doing quite the opposite with Government amendment 1. That amendment, which will leave out lines 4 to 8 of clause 1, would amend the requirement for rules made by Ofwat under the clause to specifically include rules on financial reporting. That could not more clearly delineate the Conservative approach that the Labour party so derided—it promised the British people that it would do things differently—from the actual approach that Labour has taken in power.

Government amendment 1 undermines not only the hard efforts of the previous Conservative Government in taking the issue seriously, but the efforts of the cross-party consensus that secured the commitment to having financial reporting rules made by Ofwat in the Bill. That cross-party coalition, which included my Conservative colleagues in the other place, forced the Government to ensure that the original commitment would be in place in the Bill. Labour voted against the commitment and is simply seeking to overturn a clear cross-party consensus for Ofwat to be given powers to set rules on financial reporting.

Ensuring that Ofwat can view a water company’s financial structuring will help it to scrutinise and have an understanding of how the company is operating. It will also ensure that the consumers who have been let down by the water industry for far too long are protected. With close financial monitoring, water companies will face the necessary scrutiny to reduce the risk that ordinary consumers are left without a supplier. Financial mismanagement poses great risks, so every sinew must be strained to prevent it; financial reporting is key to ensuring that that takes place. The financial resilience of the water companies is not a hypothetical issue, but a paramount concern right now.

As recently as November, Ofwat’s monitoring financial responsibility report identified 10 companies that needed an increased level of monitoring and/or engagement concerning financial resilience. Seven of those companies were placed in the elevated concern category, meaning that some concerns or potential concerns with their financial resilience have been identified. Three companies were placed in the highest category of action required, meaning that action must be taken or is being taken to strengthen the company’s challenges with financial resilience, and therefore they need to publish additional information and report on improvements at a more senior level with Ofwat.

[Catherine Fookes (Monmouthshire) (Lab)]

Does the hon. Gentleman agree that his Government had 14 years to reform Ofwat, during which time they did absolutely nothing?

[Dr Hudson]

I respectfully disagree with the hon. Member. We passed the Environment Act 2021, we gave Ofwat and the Environment Agency more teeth and, as I have said, we were the first party to start measuring and collecting the data that meant we could act on this issue. Moving forward, we are trying to ensure that Ofwat and the Environment Agency use the teeth given to them by the previous Conservative Government to make our waters better. To suggest with Government amendment 1 that Ofwat should not be concerned with financial resilience rules quite simply sends the wrong message to the public, so I urge the Government to reconsider. The Opposition will seek to push Government amendment 1 to a vote.

--- Later in debate ---

[Tim Farron]

I will just have a quick canter through three things that I should have talked about earlier. My apologies, Mr Vickers, and thank you for your indulgence. I will speak to amendments 21 and 19 and new clause 26 briefly.

I reiterate the comments by my hon. Friend the Member for Witney about amendment 21. I have great respect for the hon. Member for Epping Forest, but I think he has misunderstood. As my hon. Friend said, our amendment seeks to ensure that we do not run the risk of kicking into the long grass the taking of action against bonuses by sticking that provision anywhere other than in the Bill. We were not planning to divide on it, but we will be happy to be the ones voting in favour of immediate action rather than kicking it into the long grass, if that is what he wishes to do.

I do not want to bore anybody about the coalition, but it has been mentioned—give me 20 seconds on it, Mr Vickers. The privatisation of the water industry was where all this went wrong. All the parties that have been in government in the 35 years since then share some responsibility. Just for the record, it is worth stating that DEFRA had no Liberal Democrat Minister in it at all for the majority of the coalition period. For 18 months, my great friend Dan Rogerson served in that position. That was the time during the coalition, by the way, in which we undid some of the foolish capital costs that were made at the beginning of the coalition. It is the opposite of the truth to say that we did nothing; we actually did the only thing that did happen during that time. It is also worth bearing in mind—people might remember—that we were in the EU then and properly regulated, and things were different. That is the end of that defence.

[Dr Hudson]

Will the hon. Gentleman give way?

[Tim Farron]

Oh, go on.

[Dr Hudson]

His recollection is perhaps different from many people and the public at large regarding the Liberal Democrat record on water. His party seemed to jump on this bandwagon once the Conservatives were the party that actually started measuring the scale of the problem.

Returning to amendment 21, the hon. Gentleman has the word “Democrat” in the name of his party. I do not know why they are so scared of having democratic and ministerial accountability by having a very simple clause in the Bill that would provide for a statutory instrument being laid so that the Secretary of State for DEFRA would have some accountability for that. I take on board the point about the first part of paragraph 5 in terms of the first six months of the Bill, but with the amendment would remove two thirds of that clause, which was put in with cross-party consensus in the other place. I am surprised that they are scared of democratic accountability.

[Tim Farron]

Well, that is bizarre. With total respect for the hon. Gentleman, he completely misunderstands. We are seeking to put this on the face of the Bill and not kick it off to a statutory instrument. That seems the opposite of anti-democratic—or, indeed, democratic.

Let us move on to the other issues I would like to briefly mention. New clause 26, which is in this group—

--- Later in debate ---

[Emma Hardy]

I have to say that it is slightly disappointing that we do not have a full contingent for such an important Bill Committee, which matters so much to people up and down the country. There could be personal reasons, so let us reserve judgment, but it is a little surprising to me too.

[Dr Hudson]

The Minister said that she worries that the amendment from Lord Cromwell would duplicate things. Actually, it is quite a simple amendment that achieved a lot of cross-party support in the other place. If it duplicates things, a bit of repetition is not a bad thing to ensure annual financial reporting by water companies. It would not create confusion: repeating this important matter on the face of the Bill would just create clarity, so we urge the Government to reconsider.

[The Chair]

Just for the record, I am advised by the Clerk that Adrian Ramsay has sent his apologies, as he is ill.

--- Later in debate ---

[Emma Hardy]

I strongly disagree that this amendment weakens the Bill or is retrograde. Instead, it is doing things effectively. If we were to put a six-month deadline in the Bill and rush to get the rules done in that period of time and there were complications, we would risk leaving a loophole that could be exploited by companies that have exploited loopholes for an incredibly long time and become rather apt at doing so. With respect, I would rather do it properly.

[Dr Hudson]

The Minister says that she would like to do this properly. We all agree around this House on the scale of the problem, the public outrage at some of the things that have happened with water companies and the fact that we are trying to address and improve our water quality. I am therefore curious why both the Government and the third party are shying away from giving the Secretary of State and the Department the democratic powers and accountability to pass statutory instruments, which, as we all know, can be done very quickly. We have talked about dental analogies. I am an equine vet; I have rasped many teeth in my time. It would help ministerial oversight to see that the dental work is being done properly.

[Emma Hardy]

I am desperately searching for a dental analogy. I have already outlined to the hon. Gentleman that we tabled this amendment to protect the independence of Ofwat, protect investor confidence and ensure that rules under clause 1 are effective and in place as soon as possible. It is therefore necessary to remove Lord Roborough’s amendment. I again urge hon. Members to look at the written evidence supplied by Ofwat today. On that basis, and considering the arguments I have put forward for removing the six-month deadline for the rules to be published, I ask the hon. Member for Westmorland and Lonsdale not to press amendment 21.

Turning to amendment 22, also tabled by the hon. Member for Westmorland and Lonsdale, public trust in the water sector has been severely damaged and the number of serious pollution incidents is increasing. At the same time, companies are paying out millions in bonuses. I therefore fully support the intention behind the amendment and agree on the importance of ensuring that customers and the environment are put at the heart of companies’ objectives. That is why the Secretary of State announced immediate action to improve the performance of the water industry in his first week in office. That included an agreement that companies would update their articles of association to make the interests of customers and the environment a primary objective. I am pleased to inform the House that a number of companies have already made that change, and DEFRA is working to ensure that all companies implement it as soon as possible.

This is a Government of service, focused on improving people’s lives, and it is important that consumer interests are represented at the heart of decision making. That is why, under clause 1 of the Bill, Ofwat must make rules requiring consumer involvement in corporate decision making. Companies will be required to put in place arrangements to involve consumers in decisions that have a material effect on consumer interests. I trust therefore that the hon. Member for Westmorland and Lonsdale is reassured by the steps being taken by Government and he feels able to withdraw amendment 22.

--- Later in debate ---

[Tim Farron]

I will speak to amendments 23 and 25 first, as they are connected, then amendment 24, and then amendments 9 and 6, which were tabled by those on the Conservative Front Bench. I think amendments 9 and 6 are both fine and helpful, and we would be supportive of them.

In amendments 23 and 25, tabled in my name and that of my hon. Friend the Member for Witney, we are referring to impact. There is reference in the Bill to an incident reduction plan, to reduce occurrences and to have reports about occurrences. Our concern is about much more than occurrences; it is about impacts. We know, for example, that a spillage into the River Kent, River Eden, Windermere or Coniston may last a certain amount of time, but we do not know about the volume. We may have a trickle over a day or a deluge over a half-hour period.

It is important to understand the impact not only on marine life, fish stocks and biodiversity, but on things such as leisure activities. As an occasional wild swimmer myself, and as somebody who knows a lot of anglers, canoeists and sailors in my constituency, it seems wrong that we should not put front and centre, not just a greater awareness of and action on incidents, but a look at the impact—the measured impacts on biodiversity, wildlife, livestock, farmers and the tourism economy in places like the Lakes, which is the biggest visitor destination in the country after London. I would be very grateful if amendments 23 and 25 were taken on board by the Government.

Amendment 24 relates to nature-based solutions and looks at incident reduction plans. As the Chartered Institution of Water and Environmental Management put it:

“Nature-based solutions…can help address many of the water sector’s challenges while also providing significant benefits for people and planet, such as water quality improvement, flood risk reduction, carbon sequestration, climate resilience, nutrient neutrality, biodiversity enhancement, community engagement, and public health and wellbeing.”

Indeed, nature-based solutions are also a vital source of funding and income for farmers. Examples include natural flood management techniques, such as wetland restoration, tree planting across catchments of areas of unproductive land—not of productive agricultural land, I hasten to add—and building resilience to flooding; the construction of treatment wetlands and reed beds to treat waste water and improve water quality; the creation and restoration of ponds and pondscapes; climate mitigation and adaptation; and the building of resilience to drought.

Finally, the multiple benefits delivered by working with nature also create opportunities for blended finance by drawing in private investors or gaining income from buyers and ecosystem services. That further increases taxpayer value for money at a time when the delivery burden on the water industry, and therefore customer bills, is at a record high. Investment in nature-based solutions will help to ensure that water industry spending supports the delivery of the maximum environmental and social benefits.

Amendments 23, 24 and 25 are about assessing the damaging impact of pollution incidents in our lakes, coastal areas and rivers in my communities and across the country. Through amendment 24, they also try to provide practical solutions that will help to address those issues. They are meant to be helpful amendments and I hope that the Government will take them on board.

[Dr Hudson]

I rise to speak about amendments 6 and 9, proposed by His Majesty’s Opposition. I hope that they are self-explanatory amendments that are quite simply about the core concept of accountability, which was at the heart of the previous Government’s mission to improve our water system. We must remember that at the heart of every failure that damages our waterways, it is the Great British public—those who rely on our waterways as consumers and as members of communities served by them—who are let down and denied the rights to pollution-free water systems to which they are entitled.

Amendment 6, which would require water companies to publish their implementation reports accessibly online, gives the public a tangible and visible sign by which water companies can be held to account for the promises they make and the actions they say they will take. It is a vital step in trying to restore the trust that water companies may be seen to have lost in recent years with the public through their inadequate actions to deal with this issue, as people have seen and as hon. Members have articulated today on both sides of the House. It is very much about having not just words and promises but explicit standards to judge water companies by, and it would form a kind of contract between the companies and their consumers, who would then know what to expect from their individual company.

His Majesty’s Opposition have no objections to the principle of clause 2 and its requirement that water companies publish an implementation report, nor in the specific details that companies would be expected to produce in proposed new section 205B of the Water Industry Act 1991. In fact, we welcome the Government’s willingness to listen to the concerns from Conservative peers, including Lord Roborough, and peers from other parties in the other place to strengthen clause 2, including the requirement for implementation reports to be drafted by water companies in the first place and ensuring that the requirements for pollution incident reduction plans also include water supply system-related incidents, not just sewage-related incidents.

However, we believe that amendment 6 would go even further to strengthen that proposal and advance the accountability that we all want water companies to have. Requiring implementation reports to be published online in an accessible way sets out an explicit and clear definition to water companies of how they are expected to publish any such plans, as the clause requires, and demonstrates how water companies must comply with the law in unequivocal terms.

In stressing accessibility, amendment 6 would end the ambiguity that can sometimes exist for the public, which means that it is often too easy for companies to hide away behind protocol and procedure. By making such information available to consumers, we would ensure that there could be no hiding in murky waters on this vital issue and the concrete commitments to improving our waterways.

Water companies can also benefit from the chance to make reflections on their progress available in full sight of the public. In all walks of life, sometimes people’s efforts to make good on promises cannot come to full fruition for reasons beyond their control. If genuine reasons arise for not meeting targets, there can be full transparency for the public as to why, so they can understand more about the nature of the industry and the issues involved in protecting the quality of our water system. In other words, full transparency is in everyone’s interests.

A 2023 review commissioned by Ofwat about the importance of open data was clear that open data provide great benefits in a range of areas when it comes to the water industry. In terms of the environment, it highlighted that open data from sewage overflow monitoring were beneficial to the creation of the predictive analytics tools used in Wessex Water’s intelligent sewers competition, which helped to identify sewage blockages much earlier than they otherwise would have been. That demonstrates an explicit link between the work of recent years to require data monitoring in the water industry, such as on storm overflows—I reiterate that 100% are monitored thanks to the work of the previous Conservative Government—and improvements in the water industry’s tackling of pollution. That is in addition to the improved accountability and the responsibility that data publication places on water companies to get the issue right.

The report highlighted, however, that at the time there was a trend towards companies sharing data with their key partners, rather than making information completely and clearly available for unrestricted public access. The report therefore explicitly recommended that companies in the water sector should look at the data they had been sharing only with specific groups and partners, and take steps to make available those data where they can.

Amendment 6 would solve the problem of information reports before it could even arise—upstream—by unequivocally stating that water companies must publish implementation reports on their websites that would be accessible to all members of the public, not just those with the time and influence to ask for such data. We talked about citizen science: this will give those data to the people to analyse and hold water companies to account. The Conservatives will therefore be pressing amendment 6 to a Division.

I am conscious of time, Mr Vickers. Are you going to call stumps in about 20 seconds?

[The Chair]

No. We can keep going until 1.30 pm.

[Dr Hudson]

On that note, I will move on to amendment 9, which would make it a requirement for pollution incident reduction plans to include how an undertaker intends to reduce the occurrence of pollution incidents in national parks attributable to their water system. The Opposition tabled the amendment to strengthen the existing plans that the Government have put forward, so that no stone is left unturned in ensuring environmental protections from our water companies. The amendment ensures that water companies make it clear how they will work to reduce pollution incidents in national parks in a system that a water company operates in.

National parks are an area that the previous Conservative Government took great efforts to protect in their legislative programme on protected landscapes. We worked to encourage water companies to invest in peat restoration, and allowed teams at national parks to bid for investment that improved their water environments. The history of recent work on national parks goes beyond just the most recent Government, with the Glover review being published in July 2019. In a response to that review, the Conservatives highlighted their commitment to national parks and water quality, such as through developing the natural capital and ecosystem assessment, which combined data science, citizen science and earth observation technology to inform water quality improvements as a priority target; and ensured that capital and natural capital reporting were embedded into the management plans of protected landscapes.

Flooding

Neil Hudson Excerpts

Monday 6th January 2025 Commons Chamber

[Dr Neil Hudson (Epping Forest) (Con)]

I thank the Minister for advance sight of her statement. I put on the record my gratitude to the Minister and her whole team for hosting a constructive and helpful cross-party meeting on Friday, together with officials from DEFRA, the Environment Agency, the Met Office and the Ministry of Housing, Communities and Local Government.

On behalf of His Majesty’s Opposition, I pay tribute to the emergency services, local authorities and the Environment Agency for their efforts, over the challenging festive period and the ongoing start of the working year, to help people quickly, often in dangerous circumstances. I thank members of the public, volunteer groups and our amazing farmers, who have once again stepped in to help their neighbours and local communities in difficult times.

The current flooding, snow and rain have had, and continue to have, hugely detrimental impacts across the United Kingdom. Today, roads are closed, many schools have been unable to reopen on what should have been the first day of term, rail services have been suspended, and airports have experienced extreme delays. Furthermore, as the Minister said, as a result of the extreme weather Leicestershire Fire and Rescue Service has declared a major incident across Leicester, Leicestershire and Rutland. Our thoughts are with all those whose homes and businesses have been damaged, and with all those who continue to be affected.

Many of those people will be distressed, angry and completely exhausted as they begin the new year with the process of restoring and rebuilding their homes and businesses. I sound a bit like a broken record, but I reiterate that we must not underestimate the mental health impacts of flooding on communities, in respect of both the anxiety of being flooded and the trauma when flooding hits. It is essential that practical support is provided as quickly as possible and remains in place after the waters have subsided and the blue lights have departed. Will the Minister update us on the action the Government are taking to get schools open as soon as possible? What steps are her Department taking to ensure that insurance claims can be processed as quickly as possible, so that those affected can return to their homes as soon as they can?

In addition, what steps are the Government taking to review and potentially expand the vital Flood Re scheme, so that insurance cover is expanded in terms of the age of building eligibility and to include businesses? We discussed that issue at the cross-party meeting on Friday. While in government, the Conservatives ringfenced £100 million to help communities threatened by repeated flooding. Will the Minister commit to that funding, and will those affected by flooding again, in the latest period of bad weather, be eligible to apply?

Furthermore, will the Minister provide assurances that discretionary funding, such as the flood recovery framework or the Bellwin scheme, will be implemented to alleviate the effects of flooding? Even if the thresholds for the numbers of properties affected are sometimes not met, will the Minister and her colleagues across Government commit to a compassionate, pragmatic and case-by-case approach to awarding that vital discretionary funding?

Additionally, the previous Conservative Government established the farming recovery fund to support farmers recovering from uninsurable damage. Will the Minister confirm whether the Government will renew that Conservative initiative and provide new funding for this winter’s storms?

Finally, the Secretary of State has set up a flood resilience taskforce to improve flood preparedness that has met only once. What work did the taskforce do ahead of the latest bad weather? Should it not meet more regularly—certainly before the end of this month, as the Minister stated—to learn any lessons and to respond to the ever-dynamic weather events we have seen in recent weeks? With many warnings for flooding still in place, I know that many people will be experiencing huge anxiety and uncertainty, so I conclude by wishing every community, and the services and people supporting them, a safe period moving forward.

[Emma Hardy]

I will try to answer as many of the hon. Gentleman’s questions as I can. I share his concern about the impact of flooding on people’s mental health, which cannot be exaggerated. Someone losing their home, or seeing it damaged, and having to move out over the winter has a devastating impact on them. I agree that farmers have done a great job in supporting communities at risk of flooding.

On Flood Re, we do not currently have plans to extend the scope; however, we regularly review all policies. If any hon. Member wants to contact me with specific suggestions on Flood Re, I am open to receiving them.

On the different pockets of funding that the previous Government announced, we will look at how the flood funding formula works as a whole. I mentioned the review of the formula, and I will let the hon. Gentleman know as soon as it goes live so that he can join in the consultation.

We will hopefully be able to announce the schemes that are being funded by next month. I know that people have been impatient to receive that information. We have worked as quickly as we can. There is a formula for when Bellwin is activated—a local authority has to hit a certain level of expenditure. We have been really pleased that money from the farming recovery fund has already arrived in farmers’ bank accounts. We have been getting that money out the door to the people who need it the most.

Oral Answers to Questions

Neil Hudson Excerpts

Thursday 19th December 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Dr Neil Hudson (Epping Forest) (Con)]

The autumn Budget put family farms in jeopardy. Those farms also need biosecurity to protect their futures. With avian influenza spreading, bluetongue still with us and African swine fever at our doorstep in Europe, biosecurity is national security. Central to that is the Animal and Plant Health Agency, whose headquarters in Weybridge needs a £2.8 billion redevelopment to protect farming and animal, plant and public health. The Conservative Government rightly started that work with £1.2 billion committed in 2020. I note that Labour has committed £200 million to support that transformation, but that will not touch the sides. Will the Secretary of State confirm that the Government will complete the project in full, as the Minister for Food Security and Rural Affairs called for in opposition, and commit the remaining £1.4 billion to protect our nation’s biosecurity and prevent an animal disease outbreak catastrophe?

[Steve Reed]

I am grateful to the hon. Gentleman, who raises an important point. However, I find it a little ironic that Conservative Members are calling for this Government to commit to spending that their Government never committed to. The Weybridge biosecurity facility is so dilapidated that it faces obsolescence by the early 2030s—that is the legacy that the Conservatives left. The £208 million that we have committed will start the process of improving those facilities, and through the spending review phase coming forward, we will consider how we can commit further funding to ensure biosecurity for farmers, which the Conservatives absolutely failed to do.

Water (Special Measures) Bill [Lords]

Neil Hudson Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[Dr Neil Hudson (Epping Forest) (Con)]

It is a pleasure to wind up for His Majesty’s loyal Opposition in what has been a comprehensive debate tonight. I want to thank all Members, who have made so many interesting points across the House about many different aspects of policy.

The hon. Members for Reading Central (Matt Rodda) and for Hastings and Rye (Helena Dollimore) talked about water supply issues and when companies fail to deliver on their duties. The hon. Member for Scarborough and Whitby (Alison Hume) talked about the fantastic Wave Project helping young people with their mental health in her constituency. The hon. Member for Shrewsbury (Julia Buckley) raved about the magnificent Severn, and the hon. Member for Morecambe and Lunesdale (Lizzi Collinge) waxed lyrical about her local birdlife.

My hon. Friend the Member for Beaconsfield (Joy Morrissey) talked about the importance of monitoring and of a holistic approach to water management, as was echoed by my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths). My hon. Friend the Member for Mid Bedfordshire (Blake Stephenson) talked about the importance of fit-for-purpose water infrastructure for new developments. My hon. Friend the Member for South Northamptonshire (Sarah Bool) eloquently articulated the issues with our Victorian sewage network and about the importance of the water restoration fund. My hon. Friends the Members for Exmouth and Exeter East (David Reed) and for Windsor (Jack Rankin) are proud advocates for standing up for water quality for their constituents.

As for those in the party sitting to my left, the Lib Dems seem to airbrush themselves out of Government history and seem to forget that they were in coalition Government for some five years. May I gently remind the Liberal Democrats that they actually had a Water Minister in that coalition Government who did absolutely nothing on this issue when they were in power? They pivot and posture as the party of protest, jumping on their stand-up paddleboard bandwagon, but far from being concerned about water quality and safety, they appear more than happy to strap on their wetsuits and dive headfirst under the water.

The amendments to the Environment Bill in the last Parliament that Labour and the Liberal Democrats voted for would actually have cost in excess of £300 billion to rebuild the entire Victorian sewage and drainage systems. That was completely unaffordable, and it would have put up taxpayers’ water bills by hundreds of pounds each year. They did not tell the public that when they cast their smears on Conservative MPs and peers who voted for sensible, costed plans to realistically address the sewage situation, but they never let the truth get in the way of stand-up paddleboard bandwagons.

Water quality and how sewage is dealt with are of vital importance to all our constituents right across the House, and we on this side—the Conservatives—are proud that we were the party that began the process of addressing this while in government. What we can now see with this new Labour Government is an attempt to copy and paste many of our Conservative achievements and plans, rebadging them as their own. It is an interesting approach and a recurrent theme. They opposed and blocked all of our plans when in opposition, and now they are scrabbling around and trying to say that they agreed with our plans all along. In fact, just look what the Government have been saying this week about the Conservative-delivered comprehensive and progressive agreement for trans-Pacific partnership, which Labour now thinks is the best thing since sliced bread, having distanced themselves from it when they were in opposition. That is the theme of this new Government.

The Labour manifesto promised to put failing water companies under special measures to clean up water and clean up our rivers that have been polluted by illegal sewage dumping. Now it is Labour Members’ turn in government to deliver on these promises to ensure that these are not more broken promises, such as their heartless family farm tax, which they promised they would not do and then cruelly went on to do, or their promise not to raise national insurance.

I note that we would not be talking about this issue today, or we would be talking about a worse situation, had it not been for the previous Conservative Government being the first to investigate the problem, grasp the nettle and meet the ambitious pledge to ensure that 100% of storm overflows are monitored, so that we could get accurate data on what is being put into our waterways. Without that, we would need to do far more groundwork to start determining what we need to do. We must remember that the last time Labour was in charge of DEFRA in England, when it left office in 2010, only 7% of storm overflows were being monitored, compared with 100% when the Conservatives left office. It was left for us to sort and improve monitoring, so that we can have an accurate view of what is happening—an evidence base for policy making, rather than poking around in the dark under Labour.

I really hope that Labour does not break its promises to improve water quality in England, because the story in Labour-run Wales is sub-optimal to say the least. In 2022, the average number of spills from storm overflows was two thirds higher in Labour-run Wales than in England—not exactly the best blueprint for government that Labour at Westminster said it would emulate. Some 92% of English bathing waters meet water quality standards, but that still needs to be higher and we look forward to the new Government detailing their plans to achieve better results.

We have heard from many Members about Thames Water, which is a notable, critical issue at this moment, but so far Labour has failed to come up with a clear plan for how it will address that and protect both the bill payer and the broader taxpayer. The Labour Government are promising to review the water system, with more reviews and more reboots, but what they should be doing is rolling their sleeves up and continuing the progress that the Conservatives started. That progress includes our landmark Environment Act 2021, delivering our plan for cutting plastic pollution and holding water companies to account; our work on measuring storm overflows; our ambitious “Plan for Water”; and strong action on water companies that were illegally dumping sewage into our waters—we have heard a lot about that tonight. That has included quadrupling water company inspections, meaning a pathway to 4,000 inspections a year by April 2025, and 10,000 a year from April 2026. That was part of our plan to crack down on poor-performing water companies.

We banned bonuses for the bosses of water companies that have committed criminal breaches, so that polluting our waters is not rewarded—a Conservative measure that this Bill copies. We also fast-tracked £180 million of investment from water companies to prevent more than 8,000 sewage spills this year, and stepped up requirements on water companies to increase investment in water infrastructure, with a commitment upwards of £60 billion over the next 25 years. We put pressure on those companies. We also prosecuted water companies that illegally pollute our rivers, making it clear that polluters must pay for damage to our natural environment. We tried to give more teeth to the regulator, Ofwat, and to the enforcer, the Environment Agency.

Let me touch briefly on the Bill’s passage in the other place. Our colleagues there tabled amendments to the Bill that we are happy were accepted, but we were disappointed that amendment 51, tabled by Lord Roborough, did not pass. It would have stopped customers across the country having their bills increased in the event of a water company being put into special measures. Under the current Bill, if a company in one part of the country is placed in special measures and costs are incurred, consumers in the rest of the country may still be liable to pay for it, despite not using the company that has been placed in special measures. The amendment would have provided a significant improvement to the Bill, and in Committee we will be asking Labour to think carefully about amendments to improve the legislation. It was disappointing that when the Labour Minister in the other place was asked about amendment 51, she failed to commit to protecting consumers from higher bills if a water company goes under.

Our Conservative colleagues in the other place also worked hard to bolster important nature-based solutions, and we are glad that the Government listened to them. We will look to strengthen that, along with the important role of the Water Restoration Fund.

His Majesty’s loyal Opposition will support this Bill on Second Reading, and we will look to improve it in Committee, as our Conservative colleagues did in the other place. We will scrutinise the Bill as it goes through the rest of the legislative process, to ensure that it can be the best for all our constituents right across the House. This Bill must function in the way that the British public expect, to continue the work to clean up our British waters. The strong action that began under the Conservatives to improve our waters needs to be upheld by this new Labour Government.

Future of Farming

Neil Hudson Excerpts

Wednesday 4th December 2024 Westminster Hall

[Dr Neil Hudson (Epping Forest) (Con)]

Thank you, Sir Roger. It is a privilege to serve under your chairmanship. I commend the hon. Member for Upper Bann (Carla Lockhart) for securing this important, forward-looking debate, and for highlighting the challenges facing our farming communities—not least their mental health.

In Parliament today, we have had the biosecurity debate in this Chamber, which I spoke in, the family farm tax debate that has just concluded, and this current debate. Three debates related to farming in one day show how important these issues are to this House, to our constituents and to the farmers who feed us and look after our precious environment.

[Perran Moon (Camborne and Redruth) (Lab)]

Will the shadow Minister give way?

[Dr Hudson]

I will not give way, I am afraid.

Hon. Members will all be aware of the ongoing situation with bluetongue virus, avian influenza, bovine TB and other diseases, of threats from outside the UK, from African swine fever to foot and mouth disease, and of the challenges that they pose to our livestock farmers, our economy and our national security. As I said this morning in this Chamber, biosecurity is national security. While I note that the Government have chosen to allocate £208 million for the transformation of the Animal and Plant Health Agency HQ in Weybridge, I urge the Minister to make representations to the Treasury to ensure that that HQ is funded in full. In 2020, the previous Government rightly committed £1.2 billion to start that off, but now we need the further full £1.4 billion to complete that critical national security measure.

It is vital that we also make use of new technologies to further build our national resilience against livestock disease, and to protect human, animal and plant health. The Genetic Technology (Precision Breeding) Act 2023, brought in by the Conservative Government, will help with that, in terms of disease resistance in plants and animals, and climate-resilient crop development. Likewise, wider innovation in machinery, horticulture, farming practices and sustainability are all positive processes.

The elephant in the room today is family farm tax, and we cannot have a debate in which we do not include it.

[Sarah Smith]

Will the hon. Gentleman give way?

[Dr Hudson]

I am not going to give way, I am afraid. That tax hits at the heart of future thinking in farming, taking aim at the bond between farming parents and their sons and daughters, and punishing farming families who have worked their land for generations for acting in the best interest of their children and grandchildren, and of our country by looking after our environment and feeding our nation.

What possible incentive can there be for sustainable, thoughtful farming or for improving the productivity of a field, flock or herd when, after a farmer has passed, the farm will have to be broken up to pay that unfair inheritance tax?

There have also been, as we have heard today, worrying developments in the Government’s approach to capital grants. Those vital lifelines, which make possible the wider environmental objectives of the environmental land management schemes, have for some bizarre reason been suspended by the Labour Government, with no warning or phase-in period. Farmers want to be able to deliver food for our country in an environmentally friendly way, but that will only be possible if the Government of the day, of whatever political colour, is prepared to support them on that journey. The slashing of those grants is another hugely damaging development in relation to future impact on our farmers, which is what we are considering in this debate.

We must clear away the dark clouds of the ill-judged, short-sighted Labour Budget, in particular the heartless family farm tax, which will damage food security, hollow out rural communities and deeply impact the mental health of the people living and working in those sectors. The Government must start listening now. They must reverse this awful tax, and we must help our farmers to see some sunlight on the horizon.

In conclusion, biosecurity is national security. Food security is national security. The Government must start listening and actually look after the communities that nurture those critical factors for our country. I urge them to consider what they are doing and to do the right thing.

Biosecurity

Neil Hudson Excerpts

Wednesday 4th December 2024 Westminster Hall

[Dr Neil Hudson (Epping Forest) (Con)]

It is a pleasure to serve under your chairship, Dame Siobhain, and to have the opportunity to contribute to this vital debate on biosecurity. I sincerely congratulate the hon. Member for South Norfolk (Ben Goldsborough) on bringing the topic to the Chamber. Of the B-words that I have mentioned in this place over the last five years, biosecurity is right at the top. It is something that I am absolutely passionate about. I declare a strong professional and personal interest in the topic as a veterinary surgeon.

There have been great speeches today on this important topic. The hon. Member for South Norfolk touched on the important issues of blue tongue, avian influenza, African swine fever, and the vital importance of the Animal and Plant Health Agency. He also touched on virus yellows and the significance of the topic for animal, plant and tree health across the United Kingdom. It is so important, so I thank the hon. Member again for introducing this debate.

I am gutted that I did not get a chance to intervene on my friend, the hon. Member for Strangford (Jim Shannon). He talked about the importance of biosecurity and joined-up thinking right across our precious United Kingdom. He made a powerful intervention on the impact of bovine TB on farmers, speaking of how distressing and devastating it is when there is a positive reactor. I am going to touch on the mental-health impacts of biosecurity breakdowns.

The hon. Member for York Outer (Mr Charters), who is the chair of the UK food security APPG, again talked about the importance of the Animal and Plant Health Agency, and the people within that great institution working on the frontline to keep the United Kingdom safe. He stressed the importance of more support for the APHA, which I will touch on firmly and robustly with the Minister in due course. The hon. Member highlighted, as Members across the Chamber have done, the distressing and alarming situation of illegal meat imports coming into the country and the risks that African swine fever and foot and mouth disease may bring to our agricultural sectors.

The hon. Member for South West Norfolk (Terry Jermy) has personal experience of being on the frontline in his constituency. He spoke of the pivotal risks to both the poultry and pig sectors if those diseases come in. Some of the diseases, such as avian influenza, are here, as we have heard, but heaven forbid we get African swine fever. It would be devastating and catastrophic for this country.

I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for championing the veterinary sector. She cited the Environment, Food and Rural Affairs Committee, on which I served during the last Parliament. I chaired the emergency session on veterinary medicine when we heard powerful evidence from the chief veterinary officer, Christine Middlemiss. I take the opportunity—shamelessly—to give a big shout- out to people like Christine Middlemiss, as well as the chief vets right across our precious United Kingdom. The joined-up thinking of those veterinary experts working together to keep our nation safe is important, and we must champion and support them.

I want to state firmly that biosecurity is national security. What we are here to discuss today is not a niche concern but something that is vital for human public health, food security, protecting our precious environment, and upholding animal health and welfare. The priority for the Government must be to shore up the nation’s biosecurity or risk the grim consequences of an animal disease outbreak, which could ravage wild and kept animal or bird populations, and doing untold damage to our economy and international trade standing.

My journey to Parliament, as the first veterinary surgeon elected to the House of Commons since 1884, started in 2001, when I spent a period as a veterinary inspector on the frontline of the foot and mouth outbreak. I saw sights then that I never want to see again in my lifetime. The mass culls that devastated our rural communities showed the horrific reality of what can happen when Government gets biosecurity policy wrong. I gently but robustly say to the Minister that that remains an ever-present warning to Ministers of any political party. We must never forget, we must be vigilant and we must stand prepared.

In 2001, previously bustling farms and fields were left empty, and even the hardiest of stoic farmers could not contain their grief. One memory I cannot shake off came after we worked through the night, with logistical support from the Army, to cull an entire herd of cattle, including the calves. In the morning, the farmer and his wife invited my veterinary colleague and me into their home for breakfast. He said to me, “Do you know, Neil, this is the first time of a morning that the only thing I can hear on my farm is complete silence.”

Beyond the personal tragedies and the 6 million animals culled, the outbreak was estimated to have directly cost the public sector more than £5 billion and the private sector £8.7 billion in today’s prices when adjusted for inflation. Tragically, we saw lives, livelihoods and community mental health impacted.

Fast-forward 20 years, and the UK now faces a significant threat from diseases, as we have heard today, such as bluetongue virus, avian influenza and—heaven forbid, if it crosses from the continent—African swine fever. As we have heard today, we still have the chronic presence of bovine tuberculosis. This year, we have seen cases of bluetongue across the UK, stretching from Cornwall to North Yorkshire, and Anglesey to East Anglia. In recent weeks, we have seen new outbreaks of highly pathogenic avian influenza strains, including in Cornwall and Yorkshire. We also have the ever-present threat of African swine fever, which is advancing across Europe and now present in many countries, including Germany, Italy and Poland, to name just a few of the countries that are facing that virus. As we have heard, we have seen alarming levels of illegal meat imports being detected.

During the 2022-23 avian influenza outbreak, 5.4 million birds died or were culled, and were then disposed of for disease-control purposes. Distressingly, huge numbers of wild birds also died. That is worrying not purely for birdlife but for other species, including humans. Avian influenza has been reported in the US in dairy cattle, and in South America in marine mammals. We all know the dangers of diseases that cross the species barriers, including zoonotic diseases, which move from animals to people.

I return to the subject of bluetongue, which is spread by midges. Between November 2023 and May 2024, there were 126 identified cases of bluetongue virus serotype 3—BTV 3—in England. As of 25 November this year, 168 cases have been identified. The Minister has previously confirmed that bluetongue is

“challenging to control without vaccination”,

so will he assure the House that the Government are increasing work on vaccine manufacturing and procurement, for ultimate delivery and roll-out?

The European Commission has published figures detailing cases of African swine fever in more than 20 nations across the continent this calendar year. Although we remain incredibly fortunate to have avoided cases in the UK, we must remain vigilant; otherwise, there is a risk that that highly infectious disease will cause catastrophe for our pig sector. The need for vigilance was underlined by a recent freedom of information request by the BBC, which showed that Border Force seized 70,000 kg of illegal, and therefore unregulated, meat in the 2023-24 financial year, up from 35,000 kg the year before.

The Minister has updated us about the border target operating model. Will he update us on its capacity to keep us safe from diseases such as African swine fever and foot and mouth disease? We know that checks will be starting at Sevington, 22 miles inland from Dover. Will the Minister reassure us that we will still be able to carry out random spot checks within the port of Dover itself? It is important that the unscrupulous and immoral people who are trying to smuggle in foodstuffs that could potentially devastate our farming and food sectors know they can be targeted with checks.

Live animal imports to this country can also pose a risk to animal and human health. There have been reports of Brucella canis, a disease in dogs that we have not heard about today, which sadly has limited treatment options and which in many cases ends up with the dog being euthanised. There were no cases in 2019 but 187 in 2023. It is a zoonotic disease, which means that it can transfer from animals to people, and there have been reports of dog-to-human transmission in the UK. It is therefore vital that the Government look at pre-import health testing of animals such as dogs coming in from countries in which diseases such as Brucella canis are endemic. On Friday, I was on the Front Bench supporting the puppy-smuggling Bill—the Animal Welfare (Import of Dogs, Cats and Ferrets) Bill—which is now going into Committee. I urge the Government to look closely at the possibility of introducing pre-import checks to keep animals that are coming in safe, and to protect human and animal health in this country.

I hope the dangers of the infectious agents that I and others have talked about today are taken seriously. We cannot afford to be complacent about the risks that threaten not just animal but human health, as well as our economy, our trading links and standards, and the wider agricultural sector. To put it simply, if a major outbreak were to occur and we were not fully prepared to deal with it, the consequences would be catastrophic.

The Government, of whatever colour, must protect our nation’s biosecurity. To do that, they must fully back the Animal and Plant Health Agency, which is in urgent need of support, as we have heard. I pay tribute to the veterinary professionals, animal officers, scientists and officials at the APHA, who do so much to keep our country biosecure. The APHA’s Weybridge site in Surrey is the UK’s primary capability for animal health science. In the previous Parliament, I sat on the Environment, Food and Rural Affairs Committee, and we strongly called for the redevelopment of the APHA’s Weybridge facilities. A 2022 report by the National Audit Office outlined that the APHA’s HQ needed a complete redevelopment, and I guested on the Public Accounts Committee when we looked at that report.

The site needs an estimated £2.8 billion redevelopment; otherwise, we risk being left unprotected against a major animal disease outbreak or, as we have heard today, if we face simultaneous outbreaks of different diseases. The APHA is hanging on by its fingertips, and if it is challenged with multiple cases, we could have a catastrophe. It is therefore vital that the Government—and I look again at the Minister—invest fully in the APHA to ensure that it maintains state-of-the-art facilities that can identify, respond to and manage emerging risks.

The previous Conservative Government rightly initiated plans, with a £1.2 billion commitment in 2020, so that work could begin, but that must now be followed up by necessary further capital investment as a matter of urgency. I note that in the Budget the new Government have committed £208 million to support Weybridge’s transformation—I am sure the Minister will cite that today. But they need to go much, much further, because that does not touch the sides. I therefore urge the Minister to make the case to Treasury colleagues for the site to be funded in full, and for the remaining £1.4 billion to be committed. I repeat: biosecurity is national security. Without the full funding, the APHA’s ability to respond to simultaneous infectious disease outbreaks will be severely limited, and we may have a national security disaster.

I ask the Minister to please relay this message to his counterparts at the Treasury: investing in the redevelopment of the APHA headquarters is an investment in our nation’s biosecurity, our national security, our economy and the lives and livelihoods of generations to come. Before the general election, many Labour Members, including the Minister himself, called for this funding and for the full redevelopment. I now urge Ministers to put their money where their mouth is and urgently safeguard our biosecurity. If the Treasury will not deliver it through the DEFRA budget, I would urge it to consider delivering it through the Contingencies Fund. I repeat: biosecurity is national security—it needs to be paid for.

I want to come back to farming. We need to support our farming communities when adversity strikes, such as acute disease outbreaks or extreme weather events. Where something is more chronic, as the hon. Member for Strangford said—such as when farms get a positive result during regular bovine TB testing—we need to make sure that the mental health of farmers, vets and everyone else is supported. I again cite the EFRA Committee, which in the last Parliament produced a report on rural mental health that looked at these issues very closely.

The pressures on our farmers’ mental health are increasing day by day, with extreme weather events, animal disease outbreaks and financial pressures. The issue is now more important than ever, with the increased pressures that this Labour Government are unnecessarily putting on farming communities with—I have to say it—their incredibly ill-judged and heartless family farm tax. I look to the Minister and say, “Please reconsider.” Today we are holding a debate in the main Chamber on this heartless tax, and I hope that every Member in this Chamber, including Labour Members, and their colleagues, will vote for their farmers and their rural communities. That will send a strong message to the Government that they have got this wrong, and that they need to reverse this heartless, awful family farm tax.

We have talked about mental health today, and I am keen for the Minister to reiterate what support the Government will give to the mental health of farmers and others in rural communities, who face infectious disease outbreaks when biosecurity breaks down, as well as extreme weather events, and financial stress and pressure. On that point, I want to mention the tremendous work of charities up and down the land in support of the mental health of our farming communities. They include YANA—Opposition Members will know it well, and I met it recently to discuss its outreach coming over into Essex from Suffolk and Norfolk—as well as RABI, Farmerados, the Farming Community Network, Yellow Wellies, Vetlife and many others. I say a deep and sincere thank you to them.

In conclusion—I am being repetitive, but I think it is worth it—biosecurity is national security. Compromised biosecurity affects everything from animal health and public health to the price of food, trade, our position on the world stage and our precious environment. The covid pandemic sent us a clear message that some infectious diseases do not respect borders or species barriers. We ignore that at our peril. I urge the Government from the bottom of my heart to fully fund the APHA HQ redevelopment, to make sure that the burning pyres of slaughtered animals, and the economic and mental health devastation of foot and mouth, remain resolutely confined to the history books.

[The Minister for Food Security and Rural Affairs (Daniel Zeichner)]

It is a pleasure to serve with you in the Chair, Dame Siobhain. I thank my hon. Friend the Member for South Norfolk (Ben Goldsborough), not just for securing this important debate—and for winning South Norfolk, which is very precious to me—but for his continued commitment to championing our agriculture sector. East Anglia is a crucial part of the UK’s livestock and, in particular, arable sectors and provides quality produce that underpins our nation’s food security and is in demand across Europe and beyond.

We have had a thoughtful and sensible discussion this morning. Let me start by reiterating the Government’s total commitment to all those who work in the agriculture and horticulture sectors, and all those beyond. They are on the frontline, not only producing our food but protecting our national biosecurity. I was struck by the passionate interventions by all speakers this morning. I listened closely to the hon. Member for Strangford (Jim Shannon) talking about the impact that bovine TB has on people. I was struck by the account that my hon. Friend the Member for South West Norfolk (Terry Jermy) gave of walking through Thetford and seeing the dead birds after the avian influenza outbreak. Of course, I could not help but be struck by the way my hon. Friend the Member for York Outer (Mr Charters) summed up biosecurity as being like a Yorkshire wall—solid, well-built and designed to keep out things we do not want here. I paraphrase, but he gave a very good account of what we are trying to achieve.

I also listened closely to the hon. Member for Epping Forest (Dr Hudson). I do not think anyone could have failed to be moved by his powerful personal account of the foot and mouth outbreak, and I echo his warm words for those in our Government Departments, such as the chief vet, Christine Middlemiss, for the work they do. I think there is actually a lot of agreement in the Chamber this morning about the importance of the issue and our support for those working on it.

Biosecurity is vital. It underpins safe food, protects animal and plant health, and supports a prosperous economy and trade. It is a joint endeavour: Government, animal keepers, horticulturists and the public must do everything we can collectively to keep disease out. As we have heard from Members this morning, the costs are significant. Plant diseases alone are estimated to cost the global economy over $220 billion annually, and up to 40% of global crop production is lost to pests each year. Those are huge numbers, and are sadly unlikely to reduce as climate change drives the geographic expansion and the host range of pests and diseases. Healthy plants and animals are not just an important tool in the fight against climate change and biodiversity loss, but contribute directly to many of the UN’s sustainable development goals—in particular, ending hunger, achieving food security, improving nutrition, and promoting sustainable agriculture.

Pests and diseases know no borders. New and emerging threats are often the result of trade and globalisation, and are then further exacerbated by climate change. Safe trade is essential to food security in a thriving economy. We want healthy trade to support food security and the economy, but at the same time we need to protect ourselves from risks. That is why DEFRA is a key delivery Department of the UK biological security strategy, which takes a UK-wide approach that strengthens deterrence and resilience, projects global leadership and exploits opportunities for UK prosperity. In parallel, the environmental improvement plan sets out how we will improve our environment at home and abroad, including through enhancing biosecurity. I can assure the House that we have in place robust measures to maintain and improve our ability to understand, detect, prevent, respond and recover from outbreaks that affect animals and that affect plants.

One of our first defences is to understand the threats and monitor the risks, which we do through established expert groups, the veterinary risk group, the human animal infections and risk surveillance group, and the plant health risk group. Our programmes of research support the expert groups. For example, for plant health, DEFRA has invested more than £8 million into ash dieback research, including the world’s largest screening trials for resistant trees, the Living Ash Project, while for animal health, DEFRA and the Biotechnology and Biological Sciences Research Council are funding £6.5 million of research projects to better forecast, understand, mitigate and avoid vector-borne diseases transmitted by mosquitoes and ticks.

Our second line of defence is detection through strong surveillance systems. Our network of official laboratories, veterinary investigators, border inspectors and bee, fish, and plant inspectors all contribute to the early warning detections for signs of disease or antimicrobial resistance.

Thirdly, prevention is key. As the saying goes, prevention is better than cure, so this Government will take action to prevent pests and diseases from arriving in the first place. Preventing an outbreak of African swine fever in the UK, for example, remains one of our key biosecurity priorities. Although, as has rightly been said, we have not had an outbreak of ASF in the UK, the overall risk of an incursion is currently assessed to be medium. We continue to prepare for a possible outbreak.

To help prevent ASF incursions in the UK, robust safeguards are in place, prohibiting live pigs, wild boar, or pork products from affected European Union areas from entering Great Britain. Enforcement is carried out by Border Force and Port Health Authority officers at seaports and airports. Under the enhanced safeguard measures introduced in the autumn—I am grateful to my hon. Friend the Member for York Outer for referencing them—travellers are no longer allowed to bring pork products into Great Britain unless they are produced and packaged to the EU’s commercial standards and weigh no more than 2 kg. DEFRA and its agencies continuously review the spread of ASF and other diseases, and are ready to introduce further biosecurity restrictions, should they be deemed necessary, in response to new scientific and risk data.

Our fourth line of defence is our response capability. Our disease contingency plans and underpinning legislation are regularly reviewed to ensure that they remain fit for purpose, and that we have the necessary capacity and capability to respond. We exercise our plans regularly and work closely with stakeholders on their own preparedness.

[Dr Hudson]

The Minister is turning to the contingency plans, so let me take us back to African swine fever, as he has not really touched on my question in that regard. Will there be the capability to have random spot checks within the port of Dover itself? We know that the inland centre will be up and running, but it is so important that unscrupulous people coming in know that they could be targeted within the port, so that these illegal meat imports can be snapped out.

[Daniel Zeichner]

I absolutely share the hon. Gentleman’s concerns. We are working closely with the Port Health Authority to make sure that everything that needs to be done can be done.

As I was saying, we exercise our plans regularly and work closely with stakeholders on their preparedness. The ongoing response to bluetongue and highly pathogenic avian influenza are cases in point. Officials from across the UK are working closely with sector representatives on the implementation of control measures.

Early identification was crucial in enabling a rapid response to the bluetongue outbreak. DEFRA provided free pre-movement testing to animal keepers in counties at the highest risk of incursion from infected biting midges originating from the continent. A restriction zone covering the counties affected by bluetongue has been established. That measure has been carefully considered to protect the free area from disease spread while allowing the free movement of animals in the zone, keeping business disruption to a minimum. On the question asked by the hon. Member for Epping Forest, permitted use of the BTV-3 vaccine is available, and I am told that just over 14,500 animals have been vaccinated so far.

To respond to my hon. Friend the Member for South Norfolk, I am aware of reports that some meat processors may have taken unfair advantage of the bluetongue outbreak to reduce prices. That is dreadful; I do not condone that behaviour at all, not least since bluetongue does not affect the meat. My understanding is that it is not a widespread issue, and that prices paid to farmers for beef and sheep continue to be stable and at five-year highs. That is a good example of why this Government consider fairness in the supply chain to be critical for farmers across all sectors. I also reassure hon. Members that the bluetongue virus is not a public health threat and does not affect people or food safety. While no sick animal should enter the food chain, meat and milk from infected animals is safe to eat and drink.

A number of hon. Members raised the issue of virus yellows. A lot of work is going on with British Sugar, particularly at the John Innes Centre, which is just outside Norwich; I understand that there is a project involving the biotech company Tropic. I have stood in fields and looked at sugar beet suffering to varying degrees from yellows. Our proposals on genetic engineering may provide a solution in future, but in the shorter term some new innovations are being looked at. Those should give us better ways of tackling this disease, which is serious, as my hon. Friend the Member for South Norfolk said—particularly for our region in the east of England.

On plant health in general, joint working with the horticultural sector takes place with the Royal Horticultural Society and the Horticultural Trades Association through the plant health accord, the tree health policy group and plant health advisory forum, and the Plant Health Alliance, which leads the plant healthy certification scheme.

As I have said, biosecurity has to be a shared endeavour. The Prime Minister and the President of the European Commission have agreed to strengthen the relationship between the European Union and the United Kingdom, and we are working with the European Union to identify areas where we can strengthen co-operation for mutual benefit. We have been clear that a veterinary and sanitary and phytosanitary agreement could boost trade and deliver significant benefits to the European Union and the United Kingdom, but delivering new agreements will take time. It is important that we get the right agreement, meet our international obligations, and protect the UK’s biosecurity and public health throughout the process.

Furthermore, maintaining our high standards requires constant investment. The hon. Member for Epping Forest made a powerful case about the Animal and Plant Health Agency at Weybridge. This Government are not in the business of making unfunded commitments, but we have announced £208 million for the next phase of the redevelopment of the Animal and Plant Health Agency’s Weybridge laboratory. I echo the powerful praise from my hon. Friend the Member for York Outer for Jenny Stewart and her staff—we should thank all those, right across the piece, who work on our behalf.

We believe that the £208 million investment will help to safeguard and enhance the UK’s capability to respond to the threat from animal and plant diseases, help to protect public health, and underpin the UK’s trade capability with animal export products, which are worth £16 billion per year to the UK economy. The APHA is also looking to grow its external income streams over the coming years to support the delivery of key services, recognising the efficiencies that we all need to deliver in these challenging times.

I have talked about bluetongue, so let me turn to the threat to our poultry sector.

--- Later in debate ---

[Dr Hudson]

I have a lot of respect for the Minister and I like him a lot as a person, too. I will ask a question about the APHA before he moves on from it. I acknowledge that the Government have put forward £208 million. The previous Government committed £1.2 billion. The APHA still needs £1.4 billion. I know that he cannot make Treasury commitments on behalf of the Chancellor, but please can he give assurances that DEFRA will keep making representations to the Treasury that the refurbishment we have discussed needs to be undertaken in full? The £208 million is a start to help with the transformation, but more money needs to be committed for national security. Please will he and his DEFRA colleagues make that case to Treasury? If the money cannot come from the DEFRA budget, it can come from the Contingencies Fund.

[Daniel Zeichner]

I hear and respect the point that the hon. Gentleman is making, but I gently point out to him that the country is in an economic mess and we can only spend the money that we have. That point will be reiterated in debate after debate. Every part of our rural economy, indeed every part of our country, needs a sound economic basis upon which to proceed. The previous Government did not take that view, but we will.

In response to the detection of two new cases of highly pathogenic avian influenza in poultry in England this autumn, DEFRA and the APHA have stood up the well-established outbreak structures to control and eradicate disease, restore normal trade and assist the recovery of local communities.

We are in a better place than in previous years, but there is absolutely no complacency. Hon. Members regardless of party have referred to the situation that we are in. It is too early to predict the outlook for future seasons, and risk levels may increase further this winter; obviously, we hope that they do not. However, this situation is associated with the migratory pattern of wild waterfowl and the environmental conditions becoming more favourable, sadly, for virus survival. As I have said, I was very taken by the points made by my hon. Friend the Member for South West Norfolk about the impact on the wild bird population as well as on our kept birds.

So, we continue to monitor closely the avian influenza outbreak and any effects it might have on bird keepers, poultry producers and processors, in addition to those wild bird populations that have been mentioned, particularly those of conservation concern. We urge all bird keepers, whether they have pet birds, commercial flocks or just a few birds in a backyard flock, to maintain stringent biosecurity in order to protect the health and welfare of their birds.

Slaughtering of turkeys and other birds for the Christmas market has already begun and we do not currently anticipate avian influenza to have any impact on supplies. Further information on the latest situation and guidance on how keepers can protect their birds from avian influenza can be found online from Government sources.

Draft Movement of Goods (Northern Ireland to Great Britain) (Animals, Feed and Food, Plant Health etc.) (Transitory Provision and Miscellaneous Amendments) Regulations 2024

Neil Hudson Excerpts

Tuesday 3rd December 2024 General Committees

[Dr Neil Hudson (Epping Forest) (Con)]

It is a privilege to serve under your chairmanship, Mr Twigg. I thank the Minister for bringing forward the draft regulations for the Committee to scrutinise. His Majesty’s loyal Opposition have some significant doubts and concerns about them, however, because of the impact that they might have on goods moving from Northern Ireland into Great Britain. Although we welcome the fact that some Northern Ireland goods that qualify will continue to have unfettered access to Great Britain and will not be subject to sanitary and phytosanitary controls, we have some concerns regarding the rest of the so-called non-qualifying goods and the impact that the regulations will have on businesses that regularly trade across the Irish sea.

The Opposition will continue to scrutinise this secondary legislation and assess its impact. As was raised by the hon. Member for Worcester, given the temporary nature of the guidance, impact assessments will be needed on what it means for secure unfettered trade between GB and Northern Ireland.

How will the Labour Government support businesses in Northern Ireland when trading across the sea to Great Britain? What about the other way around, where businesses in England, Scotland or Wales want to do business with Northern Ireland? How will the Government support that smooth trade? How will the Minister monitor the impact of this secondary legislation on the trade between Northern Ireland and Great Britain? How will the Minister monitor its impact on businesses in Northern Ireland dealing with the regulations, and their success?

Goods from Northern Ireland must be able to make it across the sea so that businesses there are not at an unfair disadvantage. Accordingly, as we have some concerns and reservations, the Opposition will be formally abstaining on this piece of secondary legislation.

We look forward to scrutinising further, and to the Minister’s addressing our concerns about smooth trade between Northern Ireland and Great Britain and about upholding the importance of biosecurity. We will press the Government to bring forward plans to encourage businesses to trade across the sea, so that we all benefit across our entire United Kingdom.

Animal Welfare (Import of Dogs, Cats and Ferrets) Bill

Neil Hudson Excerpts

2nd reading
Friday 29th November 2024 Commons Chamber

[Dr Neil Hudson (Epping Forest) (Con)]

Animal welfare unites us in humanity. As a veterinary surgeon, a Member of Parliament and the shadow Environment, Food and Rural Affairs Minister, I can proudly say that His Majesty’s loyal Opposition strongly support this Bill in the interests of animal health and welfare.