Environment Bill (Third sitting)

Saqib Bhatti Excerpts

Thursday 12th March 2020 Public Bill Committees

[Deidre Brock]

Q You think a blanket exemption is not appropriate.

Chris Tuckett: The environment does not see any difference, does it?

[Saqib Bhatti (Meriden) (Con)]

Q Mr Colville, you spoke about the water industry. Do you agree the Bill is a step forward with respect to the regulation of the water industry? Obviously, the current process can constrain water companies and increase uncertainty about regulation and so on, but bringing the process in line with other sectors can strengthen Ofwat’s ability to improve the way water companies operate and the information they receive.

Stuart Colville: You are referring specifically to the changes to licence amendments and the process around that.

[Saqib Bhatti]

Yes.

Stuart Colville: This is clearly an area that needs to be approached with caution, because the licences that water companies hold are extremely important to the way that they operate and for attracting investment, essentially. We think the Bill broadly strikes a reasonable balance between the powers that the Government and the regulator feel that the regulator needs, while maintaining protections for investors and continued investment.

[Marco Longhi (Dudley North) (Con)]

Q I am interested in the panel’s views on the role of local government and, more broadly, on the regulatory framework once we have decided what the medium and longer-term targets may be. As I observe the water economy—if I could use those terms a little loosely—it seems very fragmented. We have water providers, water treatment, marine, canals, x, y and z. How do you see the regulatory framework, as that develops, once we have decided what those targets should be? I just want to make sure that we do not put the cart before the horse, if that makes sense.

Stuart Colville: I think the role of local authorities is crucial. We are seeing an increasing move towards catchment-based planning across the UK. Local authorities bring a sort of accountability that industry and regulators cannot. Involving local authorities more in the medium-term or long-term plans around some of our most important river catchments is really important—bringing them into the partnerships that are being constructed to think about how best to maintain and improve water quality, flood resilience and so on.

I do not necessarily see a role for the Bill in promoting that. I think it is already happening to some extent, and we are seeing work quite well in particular areas. It requires a proof of concept and a scaling up of what is already happening.

Chris Tuckett: Absolutely, it is complicated. The Bill is huge. The governance framework is also huge.