Environment Bill

Rebecca Pow Excerpts

Consideration of Lords message
Monday 8th November 2021 Commons Chamber

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

I beg to move, That this House insists on its amendments 31A and 31B and disagrees with Lords amendment 31C.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Lords amendment 33B, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendment 45B, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Government motion that this House insists on its amendments 75A and 75B, Lords amendment 75C, and Government motion to disagree.

Lords amendments 85D and 85E.

[Rebecca Pow]

I am delighted to be here in the House for what I really hope will be the final time discussing the Bill, even though I have quite relished my involvement with it. It has been quite a journey, but here we are with a Bill that does so much to set us on a sustainable trajectory for future challenges: tackling air, water, and waste pollution; improving our environment on a scale never before done; and stemming the tide of biodiversity loss and restoring nature. The sum of all these parts is groundbreaking.

I turn first to Lords amendments 31C and 75C, tabled by the noble Lord Krebs and Baroness Ritchie of Downpatrick in the other place, and amendments 31A, 31B, 75A and 75B, which the Government are insisting on today. I wish to put a number of points on the record in the knowledge that ministerial statements in Hansard could be drawn on by the courts as a legitimate aid to statutory interpretation in the future.

The office for environmental protection is and must be an independent body capable of holding public authorities to account for their environmental responsibilities, including through the use of its enforcement functions. That is why the Government have given the OEP a remit and powers of unprecedented breadth in the Bill. For the OEP to work effectively, it must act strategically and take action only when there is an environmental and public interest in doing so. On that point, everyone is agreed.

As the Secretary of State is ultimately accountable for the OEP’s performance and use of public funds, the Government consider that the accountability power in clause 24 is necessary to ensure that the body continues to use public resources effectively to achieve the greatest public good. However, I must be clear that the content of guidance is limited to the areas of the OEP’s enforcement policy listed in clause 22(6). It cannot be used to direct the OEP as to the content of any report it might produce or any advice to the Government. Indeed, it cannot be used as a power of direction at all. It would also be inappropriate for the Secretary of State to issue guidance on specific matters relating to the enforcement of environmental law against the Secretary of State for Environment, Food and Rural Affairs, given that there would be a conflict of interest. I do not want to be disingenuous: the OEP would be expected to have regard to any guidance issued, but it will retain the ability and discretion to make its own decisions, and will not be bound to act in accordance with the guidance where it has clear reasons not to do so.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way on that point?

[Rebecca Pow]

I am going to rattle on. We have one hour only, but I will respond in my closing speech as much as I can to any issues that arise.

Many in this place and the other place have previously raised concerns that the Secretary of State might be able to use guidance to preclude the OEP from investigating a broad category of individual cases or subject areas, such as a nuclear power station. I must say, unequivocally, that it is our view that the power could not lawfully be used in that way. Any guidance issued must be consistent with the duty in paragraph 17 of schedule 1 for the Secretary of State to have regard to the need to protect the independence of the OEP. Any guidance that diverted OEP scrutiny away from entire policy areas, outside of existing statutory steers on prioritisation, would not be in keeping with that duty. This is not a power that could be used simply to divert the OEP away from investigating issues that could be in some way inconvenient to the Government. The provision for guidance on how the OEP intends to exercise its functions means that the guidance will, by its nature, be on the OEP’s approach to those issues, rather than defining specific areas to prioritise or deprioritise.

The OEP will operate with a very high degree of independence, especially when it comes to making individual enforcement decisions. In exercising its discretion in individual cases, the OEP would need to have regard to all relevant factors, but must ultimately take all its decisions objectively, impartially and independently of Government. Furthermore, the Environment Bill already provides that the OEP should focus on cases that have national implications. Guidance could not be issued that went against the existing provisions, but it could instead add further detail. However, it will remain up to the OEP, within the framework provided by the Bill and any guidance, to determine whether cases that have a discrete local impact also have national implications, or for some other reason have sufficiently broad or widespread impact to be considered serious, or to be prioritised for the purposes of its enforcement functions.

It is important to note that the Secretary of State is also able to offer guidance on how the OEP should respect the integrity of other bodies and existing statutory regimes. With such a broad remit, the OEP will be able to scrutinise all public authorities, including many expert scientific bodies. This ability will be important for it to be able to take a broad view and identify systemic issues.

I am sure the OEP will be extremely effective, but it will be a relatively small body with a broad remit. The decisions of organisations such as the Centre for Environment, Fisheries and Aquaculture Science, which employs hundreds of world-leading marine scientists, will be based on deep expertise and often highly technical scientific data. The OEP will need to be mindful of that in its own decision making when scrutinising such bodies. It is important to get the balance right to maintain confidence and integrity within existing regimes, and guidance could help to address that. We believe the power is important to ensure accountability, so that the OEP can contribute to delivering environmental improvements in the way I think we all agree it should: by acting strategically not just in the short term, but long into the future.

--- Later in debate ---

[Jim Shannon]

rose—

[Rebecca Pow]

I hope that might answer the point the hon. Member was going to ask.

Draft guidance will need to be laid before both Houses for 21 days. During that time, either House will be able to review the guidance and make recommendations or resolutions to which the Government must respond. Select Committees, such as the Environment, Food and Rural Affairs Committee and the Environmental Audit Committee, may also wish to take the opportunity to scrutinise the guidance, and Ministers would be obliged to respond to them in the usual manner.

I turn now to Lords amendment 33B on environmental review, tabled by the noble Lord Anderson of Ipswich, and the Government amendments (a) and (b) in lieu that I am tabling today. On environmental review, the key area of debate has been the remedies available in the event a breach of environmental law if that is confirmed by the court. At the heart of the issue has always been the fact that through environmental review the OEP will have the ability to bring cases to court outside standard judicial review time limits, potentially long after the decisions in question have been taken. For that reason, the Government have maintained that bespoke provision is necessary to ensure certainty and fairness for third parties who have acted in line with decisions made by public bodies, and to protect good administration.

The OEP may pursue cases for enforcement action only if it considers that the conduct in question would constitute a “serious” failure to comply with environmental law. Clause 22(7) states that the OEP must have regard, among other things,

“to the particular importance of prioritising cases that it considers have or may have national implications.”

The OEP will have discretion to interpret those criteria, setting out its approach in its enforcement policy, but it follows, in the Government’s view, that cases which have only a local concern, for example most individual planning and environmental permitting decisions, are unlikely to have sufficiently broad or widespread impact to be prioritised. The OEP could pursue such cases if it considers they are indicative of a broader or more systemic issue or failure, or if especially serious harm has or may result from the potential failure. The OEP, for example, could consider it in relation to the destruction of a nationally important population of a rare and protected species, but it should not be the norm.

However, we have listened to and carefully considered the views and concerns raised in this House and in the other place, and agree it is important that the protections are balanced with the need to prevent or mitigate serious environmental harm. As such, I am pleased to be able to propose an amendment in lieu, which strikes that important balance. In introducing it to the House, I must repeat my earlier acknowledgement that ministerial statements in Hansard could be drawn on by the courts as a legitimate aid to statutory interpretation in future. The amendment will ensure that a high bar is still set for the granting of remedies where third parties may be affected. This is set out in condition A of our amendment. But, critically, it will also provide that, even where condition A is not met, if the court is satisfied that it is necessary in order to prevent or mitigate serious damage to the natural environment or human health, and there is an exceptional public interest reason to do so, the court will be able to grant a remedy. This is set out in condition B. It gives the court discretion to undertake a real and meaningful, albeit weighted, balancing exercise. It means that there would no longer be a blanket prohibition on the granting of remedies where third parties are likely to suffer substantial hardship or prejudice.

In the rare cases where third parties may be affected, however, I would like to illustrate how this provision could operate with an example. Potentially, on an environmental review, the court could rule that an environmental permit had been granted to a factory operator with such inadequate conditions that it was unlawful. If the court concluded that condition A was not met, because substantial hardship to the factory operator would be likely to result from quashing the permit, it would turn to condition B. If, in the absence of a quashing order, it is likely that the factory would continue to release harmful air pollutants with serious impacts for the health of the local population, the court may conclude that it is necessary to grant a remedy in order to prevent or mitigate serious damage to the natural environment or human health. At this point, the court would need to weigh the public interest in preventing serious harm against the public interest in preventing substantial hardship occurring to the third party. In order to grant a remedy, the court would need to be satisfied that the public interest in preventing this serious harm substantially outweighed the interest in preventing hardship, thereby constituting an “exceptional public interest reason” to grant the remedy.

In such cases, where severe damage to the environment or people’s health could occur or continue if no remedy was granted, the court may choose to grant a remedy. Given the types of serious cases that the OEP is likely to bring, we consider that this test strikes the appropriate balance. I have every faith that it will do so and that the amendment will therefore be a valuable addition to the OEP’s enforcement framework as a whole. I hope that the amendment provides reassurance that the Government are thoroughly committed to protecting against environmental harms through the OEP’s enforcement functions, and that the House will support it today.

I turn to what I believe most people are waiting for: the issue of storm overflows. I hope that colleagues will bear with me while I set out our position, because I believe that this is extremely important. So many people have spoken to and contacted me constantly about this whole process and I will take questions at the end, if that is okay, because we are so tight for time.

I have been clear that the frequency with which sewage is discharged from storm overflows into our waters is absolutely unacceptable. It is a credit to my right hon. Friend the Member for Ludlow (Philip Dunne) and the campaigning of many others that the phrase “storm overflow” is now used 47 times on the face of the Bill. However, I recognise that many hon. Members wanted to see more, and I am pleased to have tabled a further amendment that says that water companies “must” secure a progressive reduction in the adverse impact of discharges from their storm overflows. In this legal drafting, the word “must” means that we are placing a direct legal duty on water companies to do this. That is really crucial. Water companies will have a simple choice: reduce sewage discharges or face the consequences—that is, strong enforcement action.

Turning back to the specific amendment from the Duke of Wellington, we have redrafted it to ensure that it has proper legal effect and there is more effective implementation, and we have gone further in places. I have had much discussion with the Duke of Wellington —I greatly respect and value that—and I would like to clarify a number of points. This amendment places a clear legal duty on water companies to deliver improvements —something that the Duke particularly pressed for. Indeed, ours is a stronger duty than in his wording. Our amendment will ensure that they have to take the necessary steps relative to the size of the problem. We have taken the “progressive” reduction wording from the Lords amendment. “Progressive” means that water companies must continue to take action even after the next price review period and even after they have achieved a significant reduction and tackled high-priority sites, as required in the draft policy statement to the regulator, Ofwat.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Will the Minister give way?

[Rebecca Pow]

I will not take any interventions, because I just want to get this on the record, if the hon. Gentleman does not mind—I know that he is passionate about this whole environmental issue.

I am aware of some wildly inaccurate claims that have been circulating online for the past so many days that we are somehow legalising the dumping of raw sewage—we are not. Our amendment goes further than the Lords amendment by legally specifying that “adverse impacts” includes impacts both on the environment and on public health—for bathers, canoeists and so forth. Enforcement was a key part of the Duke’s amendment and our version goes further, because it will dock in with the existing enforcement regime in the Water Industry Act 1991. Ofwat can issue enforcement notices that can direct specific actions or fine companies up to 10% of their annual turnover, running to millions of pounds. If we do not see sufficient progress from water companies, Ofwat and the Government will be able to take enforcement action, and we will not hesitate to do so. Not only that—under other provisions in the Bill, the OEP will be able to take enforcement action against the Environment Agency or Ofwat or, indeed, the Government, should it feel that any of us are not adequately discharging our duties.

There has been much debate about the costs required to eliminate sewage discharges from storm overflows. Last week, the Storm Overflows Taskforce, which I set up, published research on this issue. It estimated that the complete elimination of sewage discharges through storm overflows in England, which many are calling for more broadly, is likely to cost between approximately £350 billion and £600 billion. That could mean up to £1,000 on bills every year. There are important discussions to be had about the best way to address this important issue while protecting bill payers, and this very morning, I called the CEOs of all the water companies in to a meeting. They assured me that they recognise the need for urgent action. We must see better performance from them and I will be watching the progress closely, as indeed, will the Secretary of State for Environment, Food and Rural Affairs.

I would much very like to thank my right hon. Friend the Member for Ludlow and the Duke of Wellington for their tireless efforts on this issue. Today, I am asking the House to vote in support of the Government: you will be voting directly—

[Madam Deputy Speaker (Dame Eleanor Laing)]

No, I will not be voting at all.

[Rebecca Pow]

Apologies, Madam Deputy Speaker—that is a pity. My fault—I got carried away. Today, I am asking the House to vote in support of the Government, and this means a vote directly to clean up our rivers, lakes and seas, with greater protection for our waters than ever before.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

Here we are again—it is 648 days since the Environment Bill was first introduced to Parliament and we are still here debating it, trying to get bolder action from Ministers on the environment, climate and nature. Ministers, I am afraid, are still dragging their heels in not introducing the bold action that we need—particularly against the routine discharge of raw sewage into rivers—still favouring a weaker watchdog than they should be.

In the middle of a climate and ecological crisis and at the very time that the UK is hosting COP26, this is generational injustice in action. We need to see bolder action. There was no mention from the Chancellor in the Budget of climate or nature. In fact, there were cuts to domestic flying duty, coupled with the Prime Minister flying from Glasgow to London on a private jet. I am sure that the Minister will have joined me when we came back from COP in travelling by train, rather than flying, and the Prime Minister should have done so as well. It is a wrong, bad, outdated message to say, “Do as I say. Don’t do as I do”, but I am afraid that that is what we are used to. It sets an appalling example for the world that the Prime Minister did not take the train instead of taking the plane, and it is up to us here to sort that out.

Britain is, again, the dirty man of Europe. Not one English river is in a healthy condition; not one meets good chemical standards.

--- Later in debate ---

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

I will finish within a minute and 20 seconds, Madam Deputy Speaker. Let us just focus on the sewage, then, given that that is the time available to us.

We have, thanks to the Government amendment, now a duty on water companies to progressively reduce the amount of sewage discharged through storm overflows —but there are no targets for either volume or timescale. That leaves water companies with the power to continue doing what they do now. This amendment is something to get Conservative Back Benchers off the hook, rather than to give water companies the direction they need.

I represent the English Lake District. I am disgusted that there is raw sewage being dumped into Lake Windermere for 71 days, collectively, in any given year. This amendment will do nothing to stop that. Currently, a water company dumps 40% of all the phosphates in Windermere. If that goes down to 39%, there is no measure to say whether that is okay, so I assume the water companies will think that it is okay.

What about timescale? What if the amount goes down over five years or over 10 years? All the Government amendment does is give the Back Benchers of the Conservative party an excuse to write to their constituents and say, “There has been further movement in the right direction.” It allows the Government to let the water companies off the hook, while doing nothing at all to demand what is necessary to clean up our lakes and our rivers.

[Rebecca Pow]

We have been two and a quarter years bringing this enormous Bill through Parliament. I want to thank all hon. Members and hon. Friends for their contributions, particularly those who have approached me personally over the past few days: my hon. Friends the Members for Redcar (Jacob Young), for Workington (Mark Jenkinson), for St Austell and Newquay (Steve Double), for Rochester and Strood (Kelly Tolhurst), for North Cornwall (Scott Mann), for Devizes (Danny Kruger), for Somerton and Frome (David Warburton), for Yeovil (Mr Fysh), for Havant (Alan Mak), for Keighley (Robbie Moore), for Hertford and Stortford (Julie Marson), for Runnymede and Weybridge (Dr Spencer), for Rother Valley (Alexander Stafford), for Arundel and South Downs (Andrew Griffith) and for Watford (Dean Russell).

I also thank many others from all around our coasts, including my hon. Friends the Members for Truro and Falmouth (Cherilyn Mackrory), for North Devon (Selaine Saxby), for South East Cornwall (Mrs Murray), for North Norfolk (Duncan Baker) and for Ynys Môn (Virginia Crosbie). If I have left anybody out, I will be writing to them—[Interruption.] And my hon. Friend the Member for Isle of Wight (Bob Seely). Yes, we will be looking at ecological sites and bathing waters first when we bring in the storm overflows legislation. That should placate the wild swimmer from the Opposition Benches, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard).

I have outlined in enormous detail why we should vote for these amendments—