Flood Risk Management

Tony Cunningham Excerpts

Wednesday 9th February 2011 Westminster Hall

[Hugh Bayley]

The River Ouse, which flows through the centre of York, drains water from about 3,000 sq km of the Pennines. When there is heavy rainfall, the river rises enormously. At the moment, York has severe floods; the river has risen by about 15 feet above its summer level. When that happens, the Kings Arms public house gets flooded. I am sorry to say that there is no defence in the world that will stop it being flooded several times a year. It almost trades on the novelty of being built in such a way that people can simply hose down the mess and get on with the drinking.

Hundreds of private homes in York—and hundreds of businesses in York; I shall say more about them later—suffer catastrophically when the river rises. In 2000, when the River Ouse rose to its highest recorded level in 400 years, some 350 homes were flooded, and hundreds more came within a whisker of devastation. I left my job as a junior Minister then and went back to York to join Silver Command, which managed the crisis. I remember clearly the November night when hundreds of local residents and 500 soldiers from the 2nd Signal Regiment were sandbagging the Leeman road and Water End area, putting sandbags on top of the existing flood defences to protect the homes behind. Those homes came within a centimetre of being inundated. About 380 homes most certainly would have been inundated, and perhaps another 120 were at risk. Indeed, the leader of York city council was evacuated from his home; he lived in the area at the time.

I shall quote from a statement prepared for this debate by York city council’s chief engineer:

“Water End is shown in the York Strategic Flood Risk Plan as being an area of Rapid Inundation and failure of the existing defences in times of a severe flood could result in a depth of water inside properties in excess of l m, in a very short period of time.”

I remember preparing evacuation plans 10 years ago. Our fear was not that we would have seepage and slowly rising water levels in people’s homes, but that the flood defences might collapse. The engineers believed that that was a real danger, so much so that we tipped thousands of tons of sand and gravel behind the built flood defences to strengthen them. If they had collapsed, we could have had a wall of water running through the centre of York, which would have caused absolute devastation.

The City of York council received advice from the Association of British Insurers about the cost of repairs if the Leeman road and Water End flood defences were overtopped. The calculations were based on 382 homes being inundated. ABI’s advice was that the cost of repairing each of those homes would be between £20,000 and £40,000. The total cost of repairs for one flooding event would be £11.5 million, almost twice the cost of the flood defence scheme that the Environment Agency has deferred. The community largely consists of two-bedroom Victorian railway cottages. Many of them are privately rented, and others are owned by people on low to modest incomes—the priority group that the Government say should be helped by the new flood defence plans.

Ten years ago, 100 or so homes in the Clementhorpe area of York were inundated. It received a lot of attention because one of the streets involved is called River street. The papers all carried pictures of firemen evacuating people by boat. That area, too, needs protection. A temporary scheme has been provided by a private benefactor, but it does not work as the council would like, so it is not being used at the moment. Before this debate, I asked the Association of British Insurers and individual insurers, and I am grateful for their advice. For obvious reasons, insurers are always cautious about telling the public how much they pay out in claims. One told me that in York it has paid out £12.5 million in claims for flood damage—800 claims in all—over the past decade. The claims peaked in 2000 when it paid out in respect of 286 properties, and again in 2007 when it paid out in respect of 247 properties. The average claim per property flooded was £25,000.

When we debate the problems and risks of flooding, we often talk about home owners and households. It is quite right that individual people—our constituents—should be at the front of our minds, but we must not forget that businesses are very seriously affected, too. I see that my hon. Friend the Member for Workington (Tony Cunningham) is nodding his head. He has had a much more recent experience of flooding than, thankfully, we have had in York.

In response to the Government cuts in capital flood defence schemes, Gary Williamson, the chief executive of the Leeds, York and North Yorkshire chamber of commerce said:

“I find it extremely concerning that the Government would take such a gamble with York and North Yorkshire economies. The cost of flood damage can have a devastating effect on businesses and is something that small, independent businesses and retailers may struggle to recover from.”

The impact of the floods in 2000 on businesses in York was catastrophic. Visits to main attractions, such as York Minster and the Jorvik Viking Centre, dropped by 94%, from 5,425 in November 1999 to 356 in November 2000. Once the flood had gone, the number of visits was down by 86%. Bed occupancy in hotels was down by a third. Retail business was down between 30% and 50%—it varied from shop to shop—in the busy pre-Christmas shopping period. The York Minster shop suffered a 72% fall in sales. Overall, as a result of the floods in 2000, there were 200,000 fewer visitors to the city, costing something in the region of £10 million, and that ignores all the other business and commerce in the city that suffered as a result of the flood and the subsequent severing of a railway line. The railway is an extremely important commercial highway, pipeline or communication link for York. When the line just south of York in Selby was severed by the flooding, it cost the city far, far more.

What will the Minister do to get the Leeman road and Water End scheme back on track, working with me, as MP for the city, and the local authority, the City of York council? Like all hon. Members, I understand that the country’s macro-economic position is weak. In the last published quarterly figures, we learned that the economy had contracted by 0.5%. Economists are now asking what the Chancellor’s plan B is should the country fall back into recession; in other words, two consecutive quarters of contraction of the national economy. Of course Labour has argued that the deficit must be brought under control, but the way in which the Chancellor is doing that is too fast and the cuts that he is implementing are too deep. In the run-up to the Budget, the Chancellor will obviously be considering his options. He may not announce it in the Budget, but it is perfectly obvious to all of us in this Chamber that the Treasury is considering a plan B. If the Chancellor were to respond to the worsening economic situation by relaxing the pace of public expenditure cuts, the most obvious place to provide an expansion—or perhaps a lesser contraction—of public expenditure would be in relation to capital schemes. We know that there is a current account deficit, but even when Governments are running a current account deficit, they continue to invest over the long term, and rightly so. When someone buys a house, they take out a mortgage for 25 years. When the Government invest in flood defences, they also need to borrow and pay back over a long period of time and pay back, because flood risk is a long-term risk and the flood defence will be there for 50 or 100 years and the capital scheme needs to be financed over that period.

[Tony Cunningham (Workington) (Lab)]

Perhaps the best example that I can give my hon. Friend is Carlisle in Cumbria, which was flooded a number of years ago. In 2009, as a result of a £35 million investment in flood defences, Carlisle did not flood. As a Government, we spent £35 million to prevent flooding. If we had not spent that amount and Carlisle had been flooded, it is estimated that it would have cost between £70 million and £80 million to clean up and repair the damage. Surely that is a good example of how we need to spend in the short term to ensure that we are not stacking up long-term problems.

[Hugh Bayley]

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

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

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

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

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

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

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

--- Later in debate ---

[Tony Cunningham (Workington) (Lab)]

I will be brief, as I know that I have only a couple of minutes.

The emphasis in this debate has been, rightly, on flood defence. I ask the Minister to ensure that the Environment Agency budget has sufficient funds to deal with two other issues. One is maintenance. One contributory factor to the floods in west Cumbria in November 2009 was the lack of dredging and maintenance of becks, streams and rivers. We must ensure that there is sufficient funding for that.

The other issue is flood resilience measures. It is all right having flood defences and doing maintenance, but individual houses and businesses need protection, and we must ensure that funds for flood resilience measures are sufficient.