Water Companies: Customer Bills

Lord Benyon Excerpts

Tuesday 23rd May 2023 Lords Chamber

[Lord Sikka]

To ask His Majesty’s Government what assessment they have made of water companies’ plans to increase customer bills to fund investment.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, it is Ofwat, the independent regulator, and not the Government that assesses water companies’ business plans and sets the overall price cap that each company may recover from its customers. As part of that process, Ofwat balances the interests of consumers with the ability of companies to fund their services. Companies are preparing their plans for 2025 to 2030, which will be submitted to Ofwat in October 2023. Ofwat will make final decisions on investment and bills by December 2024.

[Lord Sikka (Lab)]

My Lords, the Minister sidestepped the issues here, so let me lay down some facts for him. Since the water companies were privatised, water bills have soared by 40% in real terms, investment has declined by 17% and £72 billion has been paid in dividends, with another £15 billion possibly by the end this decade. Now, the companies are saying that they will make investment if they can increase water bills by another £100. I hope that the Minister will exercise his considerable powers of persuasion on the water industry and insist that shareholders fund the investment and not customers, who have already been fleeced for the last 34 years.

[Lord Benyon (Con)]

I fear the noble Lord and I are working off different facts. Capital investment by water companies is 84% higher than it was before the sector was privatised. I have seen independently assessed evidence that water bills would have been higher if we had not privatised the industry. Some £190 billion has been spent by water companies, paid for out of customers’ bills, for investment in water. My noble friend Lady Vere said earlier that nationalisation was a soundbite, not a solution. I could not agree more.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I refer to my interests in the register. I want to ask my noble a bit more about Ofwat. The Government are getting criticised a lot in relation to water bills, but am I not right in saying that the regulator, looking at this matter in an independent fashion, has got pretty well the final say on who has to find the money for the developments that we are talking about?

[Lord Benyon (Con)]

My noble friend is right to a point. The Government give direction to Ofwat and have given it very clear direction in terms of resolving issues in relation to sewage overflows into rivers. We have a system where, like all utilities, it is extremely attractive, not least to pension companies—which are the recipients of dividend payments—that invest in our water industry. Having that balance between making sure we are being fair to bill payers, and how much they pay, and getting that investment is absolutely crucial. That is why we work regularly with Ofwat to achieve it.

[The Duke of Wellington (CB)]

My Lords, none of us underestimates the complexity and magnitude of this problem. We have had years of underinvestment in our sewage disposal and treatment systems. Such is the size of the problem today that I think we must all accept that the strain will have to be taken by a combination of higher bills for the consumer, shareholders receiving smaller dividends and—I know that it is difficult for politicians to even contemplate—general taxation, with the Treasury sharing part of this burden.

[Lord Benyon (Con)]

I thank the noble Duke for his continued interest in this issue. Undoubtedly, we could resolve the situation by spending somewhere between £120 billion and £600 billion separating clean water from dirty water, retrofitting an entirely new sewerage system and creating additional storage equivalent to 40,000 Olympic swimming pools, but that would add between £271 and £817 per annum to bills. It is important that we are honest with customers—with the people who get water into, and have sewage taken out of, their homes every day—that this comes at a price. Some of the promises being made that this is a simple solution are entirely fallacious. We have to be honest with the people who pay these bills.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, for the past 30 years, we customers have paid the water companies all the money they needed to do their job properly. Their statutory duty was to build, operate and maintain sewerage systems capable of effectively dealing with the contents of sewers. We have paid the money for them to do that; the fact that they are not doing it means that we are surely owed a refund, rather than paying more bills.

[Lord Benyon (Con)]

First, the noble Baroness suggests that there was no sewage going into rivers before water companies came along. Underinvestment when they were nationalised businesses was at historic levels, and our bathing waters were much worse than they are today. I am not saying for a moment that there are not serious problems. This Government are—if I can steal a soundbite—tough on sewage in rivers and tough on the causes of sewage in rivers. We want to be absolutely clear that everything that happens comes at a price. We want companies to be able to pay out dividends, because that is what encourages investment in our water sector. It is about getting that balance right.

[Viscount Hailsham (Con)]

Would it not be appropriate for executive bonuses to be linked to challenging reductions in pollution?

[Lord Benyon (Con)]

My noble friend makes a very good point. Water is the only utility business where the regulator does link reward for company executives and dividend payments to performance. It is the only sector of privatised utilities where that link is made.

[Baroness Hayman of Ullock (Lab)]

My Lords, while we are on soundbites, can I just say that I think levelling up is a bit of a soundbite rather than a solution? The National Infrastructure Commission has warned that

“there does not appear to be a comprehensive and consistent understanding of asset condition across the sector and how this may change in the future”.

We know that asset replacement rates need to be significantly higher, so does the Minister agree with the commission that Ofwat should take a leadership role in developing consistent, forward-looking metrics for defining and measuring asset health across England? If not, what does he consider to be the alternative to achieve this?

[Lord Benyon (Con)]

I do not agree that levelling up is a soundbite—it is really happening. I do agree that we need to make sure that we are supporting water companies and, through the regulator, making sure that they are taking a longer-term view on this. Each price round is five years, and the investment decisions we want them to take look way into the future, ahead of that. We want to make sure that we are working with the industry to create a long-term solution and that we are doing that with customers in mind. Some of the promises being bandied around about ending all sewage outflows by 2030, and those making them, really need to be challenged, because that will have a very big impact on households that are struggling to pay other bills at the moment.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the first three CEOs of water companies to waive this year’s bonus due to sewage pollution were from Yorkshire Water, South West Water and Thames Water, followed by those from Welsh Water and, lastly, Southern Water. The campaign waged both inside and outside this Chamber to influence water companies has begun to have an effect. Does the Minister believe that the measures which have recently been announced by water companies are sufficient to achieve the desired outcome?

[Lord Benyon (Con)]

The noble Baroness makes a good point, because the activities within Parliament and outside it on this issue have really struck home, and people are, rightly, demanding that we take into account the impact of development and growing populations on the health of our rivers. It is not just water companies; it is agriculture and the connections we all make from our sewers and septic tanks that are causing problems for our rivers. So she is absolutely right: we need to ensure that we are tackling those things, and it is right that the water companies are recognising that. Those four companies should be applauded for doing it, but we want to see much more investment from them, and that is what the Government are driving.

[Baroness Blower (Lab)]

My Lords, water companies have borrowed £56 billion, even though investment has declined in real terms. Water bills include about £80 to cover interest payments. However, much of the debt is actually intra-group and is used to shift profits and dodge corporate tax. That much was acknowledged by Michael Gove in a speech on 1 March 2018. Can the Minister explain why the Government have failed to curb customer and tax abuses by water companies?

[Lord Benyon (Con)]

I am concerned about making sure that water companies spend money on infrastructure that is needed to clean up our rivers and environment. We have to ask ourselves what the best model is of doing that, and one that encourages investment into this country from sovereign wealth funds and other countries around the world as well as pension funds and investments based here is surely a good way of doing it. The model is right. The alternative would mean that the water companies would have to sit outside the Chancellor of the Exchequer’s office in a queue behind the health service, the police and the Armed Forces. Does the noble Baroness honestly believe that there would be more investment through a system of public sector borrowing, rather than getting this kind of investment flowing into our infrastructure?

Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2023

Lord Benyon Excerpts

Monday 22nd May 2023 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2023.

Relevant document: 36th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, the purpose of this instrument is to make nine minor amendments to the environmental permitting regulations 2016 as applied to groundwater activities. Groundwater is a critical national resource; it provides a clean and reliable source of drinking water, plays a vital role across many industry sectors, and supports ecosystems. The Government are committed to ensuring that the quality of our groundwater resources is protected.

In the face of growing pressures from climate change and population growth, it is important to optimise the regulatory tools available for managing and protecting groundwater quality. The environmental permitting regulations 2016 are an effective tool for managing groundwater activities. However, several limitations with the way the regulations implement groundwater protections have been identified, which has led to inconsistencies in approach within the wider environmental permitting regulations regime. These limitations can be resolved by the nine amendments, which will support many industries by reducing regulatory burden and costs, facilitating green energy production from geothermal and ground source heat, promoting growth and accelerating permit delivery. These amendments also create the right regulatory conditions to promote and allow innovation within the circular economy, allowing the appropriate and safe reuse of materials where it is environmentally acceptable. I now turn to the detail of these amendments.

Currently, groundwater activities can be permitted only through the use of bespoke environmental permits, which are the highest level of permits. This results in higher than necessary costs and an unnecessary level of regulatory burden to businesses. This instrument will give the regulators the ability to grant other types of permits, such as standard rules permits and mobile plant permits. Those non-bespoke permits are significantly less costly and reduce the administrative burden on businesses while maintaining environmental standards.

The instrument will also introduce exemptions from the requirement of an environmental permit for new cemeteries that pose a low risk of pollution to the groundwater environment. The public consultation received 264 responses and almost all the proposals received majority support. Following feedback on the cemeteries proposal and further discussion with key stakeholders, adjustments have been made to the cemetery-specific amendments to enable greater clarity and ease implementation issues.

Another aspect of this SI is that controls will be applied to prevent groundwater pollution from currently uncontrolled pollutants such as heat and micro-organisms. As heat will be added as a pollutant, the majority of closed-loop ground heat pump activities will be exempt from the requirement of an environmental permit. The instrument will also help to fix a loophole in the general binding rules for small sewage discharges, which are currently being exploited, resulting in harm to nearby environmental habitats and local water quality. These new rules will reduce the risk of groundwater pollution.

The current wording of the environmental permitting regulations 2016 is unclear on the breach of permit conditions. The instrument will help to bring clarity around the liability of sewage undertakers following a breach of permit conditions due to specific circumstances beyond their control. To bring the regulations in line with current operational practices and facilitate energy recovery and the latest green technology, the current list of exemptions from the prohibition on direct discharges to groundwater needs to be updated. This instrument will update the list.

Finally, there will be a requirement for operators of onshore oil and gas facilities to apply to surrender their groundwater activity permits. Regulators need to be satisfied that any pollution issues are remediated and there are no ongoing risks to the groundwater environment at the point of decommissioning or that may arise in future. This will ensure that the environment is better protected.

These amendments will bring about benefits for groundwater quality, will reduce unnecessary costs to businesses and will also help to ensure that government resources are being used most effectively to protect and preserve groundwater quality for future generations. I beg to move.

--- Later in debate ---

[Baroness Anderson of Stoke-on-Trent (Lab)]

My Lords, I have a heavy cold, so if I start sneezing I apologise in advance.

I thank the Minister for his overview of these regulations. His Majesty’s Opposition agree that the management and protection of our groundwater is vital for sensitive ecosystems and a range of key industries that have already been outlined, so we support these proposed changes to the regulatory framework. However, I have a few questions for the Minister following on from the debate held in the other place.

The environmental permitting regime came into force in 2010, and the amendments made by this SI are described as minor tweaks which

“provide a more proportionate, risk-based regulatory approach”.

Although the changes might be considered minor, and although we have no major objections, could the Minister outline when during the last 13 years various deficiencies referenced in paragraph 7.10 of the Explanatory Memorandum were identified and why it has taken so long for the revisions to be brought forward?

As highlighted by the noble Baroness, Lady McIntosh of Pickering, the Secondary Legislation Scrutiny Committee’s comments on the SI focus in part on its potential implications for the use of technology such as hydraulic fracturing. Although Defra says that it is not currently aware of any proposals for low-volume, low-pressure fracturing in deep formations containing groundwater in the onshore oil and gas industry, can the Minister outline any specific stakeholder engagement on the issue and say how long it will be kept under review and reported on should the situation change?

In the House of Commons, the Minister, Rebecca Pow, committed to write in response to specific questions on sewerage undertakers’ liability for certain offences under the EPR. Does the Minister have a copy of that correspondence that could be read into the record? If not, is he able to provide a copy to participants?

Finally—without sneezing—this new suite of potential exemptions will require enhanced monitoring and enforcement arrangements. How confident is the Minister that the Environment Agency has the resources to oversee the additional workload, given that research published by Unchecked UK states that the EA has seen cuts equivalent to 25% of its staffing base and 63% of its funding since 2009?

Protection of our delicate ecosystems in the coming decades is a responsibility that falls on all of us, especially given the challenges posed by climate change, so it is vital that we get the regulatory framework correct and have the enforcement structures in place.

[Lord Benyon (Con)]

I am grateful to your Lordships for your important contributions to this debate and for what I sense is support for the amendments to the 2016 environmental permitting regulations. These amendments will optimise the regulatory tools available for managing and protecting groundwater quality. I am delighted that we are delivering on the Government’s commitment to ensuring that the quality of our groundwater resources is protected.

I will now address the points made. First, my noble friend Lady McIntosh and the noble Baroness, Lady Anderson, raised hydraulic fracking. The Government’s moratorium on high-volume, high-pressure hydraulic fracking for shale gas is very much still in place. Hydraulic fracturing is already permittable in some geological formations. The amendment will allow control through permitting of stimulation techniques including hydraulic fracturing in all formations that have the potential to release heat and energy, but only where it is demonstrated to be environmentally accessible. I make the point to my noble friend and all noble Lords that there is no change or diminution in protections; it just allows us to have a system that is more suitable to the problems with which we are dealing.

Treated sewage effluent discharges can contain high numbers of microorganisms, including harmful pathogens. Where such discharges occur very close to private drinking water supplies, the risk of potential harm to health increases. This amendment provides the ability for the regulator to apply proportionate, risk-based controls to prevent microbial pollution where the risk deems it necessary.

The existing environmental permitting regulations specify that a water company sewerage undertaker is not guilty of an offence relating to discharging sewage effluent under certain conditions, such as if a third party made an unauthorised discharge into the sewer, resulting in a discharge from the works breaching the permit conditions at that site. That is fair. However, the defence applies only to the offence of operating without a permit, not the offence of contravening permit conditions, which is more commonly the case.

This change is necessary because that situation creates uncertainty for water companies and enforcement difficulties for the Environment Agency. The amendments provide legal clarity for the Environment Agency to be able to take enforcement actions, including prosecutions, with more certainty of success, and do not reflect the previous legal position where the defence was open to both offences of operating without a permit and in breach of permit conditions.

On the point about chicken slurry in the River Wye, that is not classified as groundwater so these regulations do not apply in those circumstances. However, we are tackling that issue through a variety of different actions to protect that important river environment.

The noble Baroness, Lady Bakewell, also asked what we are talking about here. An example would be a SSSI, which we have a vital duty to protect. We want to see 75% of them in good condition in just a few years’ time.

The noble Baroness asked about the definition of a mobile plant permit. It is a type of environmental permit used to regulate shorter-term, temporary activities which utilise equipment that is designed to move from site to site. Discharges into river are separate from discharges to groundwater; both need permits to discharge pollutants into the environment.

On the question of geothermal schemes, only proposed systems in sensitive groundwater locations will need a permit from the Environment Agency. This means that the use of this green energy technology is still an option in locations that cannot meet the exemption conditions, and any potential impact on groundwater quality can be controlled.

On the questions relating to the consultation, the public consultation was held from September to December 2021 to seek views on the nine amendments. The draft statutory instrument was published on 23 March 2023. As I said, there were 264 responses to the consultation. Overall, there was majority support for the consultation, except for the proposals to mitigate potential groundwater impacts from cemeteries, which showed clear opposition. I have some knowledge of this issue. When I was in the other place there was an application to create a green burial ground—the sort of land use which I think many of us would support; it is a type of burial that is particularly attractive to individuals and their families who want one which is perhaps more environmentally friendly. Some of the misunderstandings about the impact of that resulted in me, as the MP, receiving letters saying that body parts would be found floating down the river, and things like that. That is not the case. These burials are very much in keeping with the environment. They need licensing, as do any such schemes, and this will allow us to have better systems of protection.

The noble Baroness raised a point about garden burials; I may have to contact her with details. Due to the low intensity of the impact of such burials, I do not think that is important.

On the question of why this SI has been brought forward and why it has been delayed, I am absolutely happy to explain to the Committee that the current changes are a long-standing issue that has been delayed several times due to reprioritisation during EU exit and Covid. Improving the regulatory regime for groundwater is a priority for this work by reducing regulatory burdens and freeing business to grow and invest.

I will find out about the letter from my honourable friend Rebecca Pow. We are not sure where it is in the process, but I am certainly happy to share it with Members of the Committee.

In conclusion, I hope I have addressed the points raised by your Lordships and thank you again for your contribution. I commend the regulations to the Committee.

Motion agreed.

Land Use Commission

Lord Benyon Excerpts

Monday 22nd May 2023 Lords Chamber

[Lord Roborough]

To ask His Majesty’s Government what assessment they have made of the report of the Land Use in England Committee’s recommendation to establish a Land Use Commission to help landowners and managers make the most appropriate decisions for their land.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I declare my farming interest as set out in the register. We welcome the committee’s report and agree with many of its findings. The land use framework programme led by Defra is aligning thinking on land use across departments. We have yet to be convinced of the value of a commission.

[Lord Roborough (Con)]

I thank my noble friend for his Answer and refer to my interest as a landowner, as set out in the register. The Royal Society recently highlighted that government policies could require up to one-third of England’s land to be repurposed by 2050. England is a densely populated nation with multiple overlapping stakeholders on every acre of our country. That makes change in land use complex, time-consuming, expensive and risky for the land manager. How else can the Government help to streamline this process and highlight the optimal uses of different types of land to those who manage it?

[Lord Benyon (Con)]

My noble friend raises really important points. In its Multifunctional Landscapes report, published this year, the Royal Society referred to the UK rather than England; of course, we have to operate within the system that we have. It bases its assumptions about the total areas required by government targets on figures that it describes in the report as “illustrative”. However, we do not want to prescribe particular uses to landowners or land managers from a national level. We would rather make sure that they have the information and guidance they require to make efficient decisions based on local knowledge. I give the example of local nature recovery strategies, which help to steer nature restoration projects to the areas where they can be most beneficial.

[Lord Cameron of Dillington (CB)]

My Lords, in devising a continuous renewal of their land use strategy, how will the Government recruit and accommodate the necessary expertise in areas such as energy, leisure and housing—to take a few—which are outside Defra’s normal remit? How will they arrange for interdepartmental co-operation or even an interdepartmental commission or committee?

[Lord Benyon (Con)]

I compliment the noble Lord on his leadership of the committee that produced this excellent report. We are involved in discussions right across government, including with the Department for Energy Security and Net Zero, the Department for Levelling Up, Housing and Communities, and the Department for Science, Innovation and Technology. The noble Lord’s crucial point about skills and expertise is completely understood. In line with the recommendations on skills from the Independent Review of Net Zero, the renewables industry is working with the Green Jobs Delivery Group to develop net-zero skills and a workforce action plan. We are definitely considering the necessary skills and expertise as we prepare the land use framework.

[The Lord Bishop of Chelmsford]

My Lords, I thank the Minister for his responses so far. Can he clarify whether the Government will encourage Defra to give regard to land tenure and, in particular, to ensuring that the tenanted sector is considered within the land use framework?

[Lord Benyon (Con)]

The right reverend Prelate raises a crucial point. We talk about farmers and land managers, but those descriptions are too simple and generic, because we have owner-occupiers, registered tenants under the 1986 Act, graziers and farm business tenancies; it is an incredibly complex system of tenure. We are considering the Rock report and will respond to it.

Of course, the Church is a very big landowner. We want to make sure that it works alongside a great many other landowners, both large and small, to tackle these important issues, including feeding the population; tackling net zero; reversing declines in species; building homes; and providing space for people—all on a single piece of real estate. This is a complicated process, but it is one that we are determined to tackle.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, as a member of the land use committee, I know just how many detailed evidence sessions and discussion there were on the proposals for a land use commission. As the noble Lord, Lord Cameron, indicated, the proposed commission is to cover all aspects of land use and more than one government department, not just Defra. However, there has been no indication of when this report will be allocated time for a debate in this Chamber. Can the Minister please put in a good word for it to be expedited before the Summer Recess?

[Lord Benyon (Con)]

I would love to spend hours talking about this issue; it is one of endless fascination. I have the zeal of the convert on this because I was always sceptical about what I felt was a very top-down process but, having read the report, I now see the need for it. That is why we are tackling the issue in a meaningful way right across government; if we can find time for a debate on the report, I am certain that I will be dragged in to give the Government’s view.

[Baroness Hayman of Ullock (Lab)]

My Lords, as we have heard, there are many pressures on land: housing; food production; tackling biodiversity; and climate change. Clearly, the recommendation to set up a land use commission to oversee progress on this is the best solution. Are the Government going to take that recommendation forward and set up a commission? If not, how does the Minister envisage not just being in discussion with departments but delivering on this issue across government so that we get the land use we need for the future?

[Lord Benyon (Con)]

My concern about a commission is that it would probably have to be a creature of statute. That would take time. We would have to have consultations and pass legislation, and another factor is the cost, which the report said should be similar to that of the Scottish Land Commission, at £1.5 million, and the Climate Change Committee, which is about £4.5 million. The most important thing is that Ministers want to drive and be held to account in both Houses on this very important piece of work. We are yet to be convinced about parking it with a commission, but I am happy to have further conversations with Members of this House to get to the bottom of that.

[Baroness McIntosh of Pickering (Con)]

My Lords, my noble friend the Minister mentioned tenant farmers and graziers. When will the extent to which they will benefit from ELMS become clearer?

[Lord Benyon (Con)]

They are already benefiting from ELMS. We are working hard to ensure that they can benefit from not just the sustainable farming incentive but all the other parts of the schemes that we are bringing forward. Areas of countryside stewardship have always been a problem with landlord and tenant. We are trying to iron those things out and ensure that we are providing a future of support for all parts of the farming sector.

[Lord Berkeley of Knighton (CB)]

My Lords, to what extent does the Minister see a connection between this problem and the dearth of people going into agriculture as a job, compounded by the problem that those people find, especially in less favoured areas, in getting housing at an affordable price?

[Lord Benyon (Con)]

The noble Lord identifies a strange social phenomenon which is going on, where people who can afford to live in villages are driving into towns to commute or work there, and they are passing people who cannot afford to live in the villages but who work on the farms or in the countryside around them. We have a very clear, determined policy to extend the exception site housing scheme and support local authorities, parish councils and those communities which want to grow organically. Providing affordable housing in rural areas is key.

[Baroness Bennett of Manor Castle (GP)]

My Lords, does the Minister agree that there are some existing land uses that are simply too environmentally destructive, too carbon emitting, and have too little benefit for human and non-human animals, and that this needs to be addressed? Is that something the land use commission could address, or will the Government address it in other ways?

[Lord Benyon (Con)]

I am not entirely sure what the noble Baroness is talking about; she might have given me some examples. It is important that a land use framework gives land managers the ability to plan into the future, knowing what is predisposed from the land, where it is best to plant trees, where we will concentrate our desperate economic and environmental imperative of reversing the declines in species, and where we will produce food. We will have a real attempt at giving land managers the understanding they need to take their businesses forward in this new and changing world.

[The Earl of Caithness (Con)]

My Lords, we welcome Defra’s appreciation of the need for land use. It has taken some years in getting there, but it appears that no other department is as keen as Defra to do this. Can my noble friend tell us a bit more about his discussions with the other departments and whether they are looking constructively at this matter?

[Lord Benyon (Con)]

We are having very good discussions across government. You cannot have a land use framework that does not address planning—I know that we will be talking about planning later today and into the night. You cannot have this conversation without talking to that department, for example, and you cannot have net zero without talking about trees. There is an absolute link-up. I reassure my noble friend that we are very serious about our conversations across government.

Air Quality Strategy Consultation

Lord Benyon Excerpts

Thursday 18th May 2023 Lords Chamber

[Baroness Hayman of Ullock]

To ask His Majesty’s Government what assessment they have made of the compliance of their revised national air quality strategy consultation with best practice, as laid out in the Cabinet Office Consultation Principles.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, the Government published the Air Quality Strategy: Framework for Local Authority Delivery by the legal deadline of 1 May. Although we recognise that the consultation period for the draft strategy was shortened, almost 450 responses were received, including 97 from local government. We took into account these responses in the publication of our final strategy, and the document will drive the local action on air quality that we all want to see.

[Baroness Hayman of Ullock (Lab)]

My Lords, local authorities are central to efforts to improve the country’s air quality, but the nature of this consultation exercise suggests that the Government think otherwise. Regardless of any prior engagement, does the Minister really believe that a period of just 10 days—starting immediately before Easter, during the school holidays and in the run-up to the local elections—was sufficient to allow councils to formulate their response and get it signed off internally? Will the department do the right thing and reopen this consultation to ensure that no one misses their opportunity to respond—or are the Government once again dodging any scrutiny?

[Lord Benyon (Con)]

The noble Baroness knows how I hate to see her disgruntled, so I will see whether I can make her gruntled. The consultation was open for 10 days, the department received 434 responses in total and 97 local authorities responded—but that was not the totality of it. We have engaged with stakeholders, including local government, since December 2021; we have run a series of nine workshops to gain views and input from a range of stakeholders; and more than 30 meetings were held with internal and external stakeholders, as well as over 200 stakeholders from community groups, NGOs, academia and local authorities. This Government consult like no Government have before; sometimes, I wonder whether we consult too much, but in this case I think we have got this absolutely right and created a strategy that reflects what people want.

[Baroness McIntosh of Pickering (Con)]

My Lords, in relation to consultation and the London mayor, does my noble friend agree that the main cause of increased traffic congestion and the knock-on effect on air quality is the lack of synchronisation of traffic lights, which is driving not just London cab drivers but all London motorists to distraction?

[Lord Benyon (Con)]

My noble friend raises a point that cab drivers raise with me frequently. It is a serious point. As she knows, air quality is devolved to the mayor, who is ultimately responsible for the delivery of his policies. Undoubtedly, with ULEZ and other policies, this is causing tensions, but it is for him to answer. Our point is to help local government in all its forms to deliver. We are putting in money to assist local authorities in tackling air quality right across the country. London is the biggest challenge. That is why we work with the mayor when we can to make sure that we are achieving that in the capital.

[Baroness Sheehan (LD)]

My Lords, Cabinet Office consultation principles state:

“Consultations should last for a proportionate amount of time”


and should be judged

“on the basis of legal advice and taking into account the nature and impact of the proposal”.

Air pollution is estimated to be responsible for more than 64,000 deaths in the UK, costing in the region of £20 billion, as estimated by the Royal College of Physicians report, Every Breath We Take. Does the Minister really believe that nine working days is a proportionate amount of time to gather responses on air pollution, the biggest environmental risk to public health?

[Lord Benyon (Con)]

I cannot add in response to the noble Baroness more than I said in my reply to the noble Baroness, Lady Hayman, because I think that we have consulted very widely, not just during those dates that she cited but across the piece. Air quality is one of the key priorities. If the noble Baroness looks at our environmental improvement plan, she will see what we are asking to be delivered right across this country. She will see that it is a priority and that we are consulting in a variety of ways to make sure that we reflect those who have to deliver this, which is, in the main, local authorities.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the noble Lord, Lord Campbell-Savours, is participating remotely.

[Lord Campbell-Savours (Lab) [V]]

My Lords, as we are told by the Government in their draft air quality strategy that they expect

“local authorities to … reduce PM2.5”

and that if action is insufficient

“we will consult on introducing a … legal duty on local authorities to take action”,

why are Conservative authorities in London are not only obstructing the taking of action to reduce PM2.5 but playing politics by attacking Sadiq Khan for implementing government policy on the congestion charge zone? Is that not just blatant hypocrisy?

[Lord Benyon (Con)]

That question reflects issues relating to politics in London that are particularly complex and the impact of the mayor’s ULEZ on people on low incomes who have to travel to the centre of London. The noble Lord makes the accusation of playing politics, but the Question is about consultation. What we are trying to do nationally is support local authorities, and sometimes what the mayor is trying to do is despite what the local authorities within his mayoralty are trying to achieve. That is a local question for London and not for our national policies.

[Lord Whitty (Lab)]

My Lords, does the Minister not recognise that not only is it disastrous that there was such a short time for consultation but the substance of the document on which he was consulting is woefully inadequate to attack the problem? I speak as a former president of an independent organisation, Environmental Protection UK, which made a submission to the consultation. Is it time for the Government—and, in view of the electoral cycle, probably the main opposition party—to recognise that we need a new clean air Act and a central direction through a new clean air commission? Until the Government grasp that necessity, this problem will continue to afflict our people and contribute to the long-term sickness that we have just been discussing.

[Lord Benyon (Con)]

What I would say to the noble Lord, whom I respect for his experience in this area, is that running campaigns to create new laws sometimes misses the most effective way to deliver. The most effective way in which the Government in England can be responsible for this is to support the local authorities which have to do it. We are doing that with money, and we are doing it with policies that require them to hit certain targets—on PM2.5, on nitrous oxide and others. That is the best way to do it. If the noble Lord wants a piece of legislation that will deliver that, it is the Environment Act.

[Lord Hamilton of Epsom (Con)]

My Lords, surely when it comes to pollution in London, if you have bicycle lanes and increased traffic jams, you do not reduce pollution, you increase it.

[Lord Benyon (Con)]

My noble friend talks about an issue which may well be the case in certain areas. Encouraging cycling, walking and the use of public transport is undoubtedly better for health, as the previous Question showed; it is undoubtedly better for the quality of life in our cities. On the other side, if you get it wrong, you make the problem worse. That is why local solutions are better, and it is why the Government’s policy provides resources and targets and why they will take further action if local authorities fail to deliver.

[Baroness Sherlock (Lab)]

My Lords, I regret to tell the Minister that my noble friend Lady Hayman is still disgruntled. That is because he did not address the fact that the events for stakeholders that he described were poorly advertised and the notice was short. As a result, many stakeholders who would have liked to attend or to contribute to the consultation did not get the opportunity. Could he address that?

[Lord Benyon (Con)]

The number of responses was typical of the kinds of consultations that my department conducts. That 97 local authorities responded in full and that there were many other events, engagements and direct contact with local authorities and other campaigners meant that we ran a full consultation, and we have an air quality strategy that reflects that.

[Baroness Hayman (CB)]

My Lords, the Minister’s throwaway remark about the possibility of there being too many consultations tempts me to ask him—and I declare my interests—whether the problem is not too many consultations but not enough follow-up and action when consultations have taken place? Could he look in particular at the consultation several years ago on energy-efficiency standards in the private rented sector?

[Lord Benyon (Con)]

I entirely understand the point made by the noble Baroness. Perhaps mine was born out of being slightly long in the tooth in this game, because when I was last at Defra, it was always the threat of infraction fines that delayed policy—“Oh, Minister, that may well result in us being infracted by Europe”. Now, I find very often that consultations are followed by consultations on consultations, and it is a way of kicking the can down the road. I am a firm believer in the right sort of consultation; I just want to make sure that we are delivering policy as quickly and as efficiently as possible.

Horticultural Peat

Lord Benyon Excerpts

Tuesday 9th May 2023 Lords Chamber

[Baroness Jones of Whitchurch]

To ask His Majesty’s Government why they have delayed the complete ban on the sale of horticultural peat until 2030.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, we have not delayed the complete ban on the sale of peat. Last August, we announced that we would ban the sale of peat for use in amateur gardening by 2024. We are clear that we are considering limited technical exemptions for professional growers where alternatives do not exist. Professional use will be banned from 2026, with exemptions from the ban for essential use until 2030. These measures will be brought forward when parliamentary time allows.

[Baroness Jones of Whitchurch (Lab)]

I thank the Minister for that reply, but a voluntary approach to ending peat use was agreed in the horticultural sector back in 2011. It has already had 12 years to find alternatives—what has gone wrong with all that? As he said, most retail growers are already marketing peat-free compost and are on target to meet the 2024 deadline, so why do the professional growers need an extended deadline when, as we know, peat is not a unique growing medium and peat-free alternatives already exist? In the meantime, as he will know, every year of peat extraction—which is continuing to happen on an industrial scale—causes millions of tonnes of CO₂ to be released into the atmosphere.

[Lord Benyon (Con)]

The noble Baroness is absolutely right, which is why we are bringing forward this mandatory ban. I am aware of the voluntary requirement from 2011 to find an alternative because I brought it in. We are now having to pass measures to see this happen. The Horticultural Trades Association and others are registering concerns about how they are going to get their members to use alternative means and maintain our food security. Environmentalists and those of us who want to see an early ban are very keen for that to happen as quickly as possible. The fact that both sides are unhappy means that we might be getting this just about right.

[Baroness Humphreys (LD)]

My Lords, while it is important to introduce a ban on peat as quickly as possible, with EU imports continuing but not to the same standards as those applied to UK growers, what are the Government doing to ensure a level playing field to enable the UK industry to remain competitive?

--- Later in debate ---

[Lord Benyon (Con)]

The noble Baroness asks a very important question. We could act unilaterally, which would result in the export of jobs, skills and benefit to our economy to countries which are not bringing in measures as rigorous as we are. We want to ensure that we are operating this in the same way as we buy timber, where we recognise the impact we are having globally as well as nationally. We are seeing a massive reduction in the use of peat, and we want to see it end. We have set forth a clear timetable for that to happen. The target of 2026, with certain exemptions, will mean that there will be a tiny amount left which will continue to be used. That will maintain some key areas of our food security, such as mushroom production.

[The Lord Bishop of St Albans]

My Lords, the Lea Valley in my diocese is an area sometimes known as Britain’s salad bowl. The Lea Valley Growers Association already faces huge problems, mainly because of the increase in energy costs at the moment, and many of these growers are going out of business. Its concern is that some crops are grown in very specialist ways, and some of the alternatives are not working very well. The association wants real guarantees and help to make sure that, where there are not good alternatives, growers have some security for their planning at a time when many of them are not planting anymore. Can the Minister give those assurances?

[Lord Benyon (Con)]

The right reverend Prelate accurately sums up the difficulty for some growers. We have learned, through detailed engagement with the industry, that the alternatives have not been easy to produce but, as the noble Baroness says, great progress has been made in finding new media. Large organisations now declare themselves peat free, and we want to ensure that the specialist areas can continue to move towards our clear timeline of 2026, with certain exemptions that will allow the propagation of plants that are very much needed and the protection of businesses, such as he mentions.

[Lord Taylor of Holbeach (Con)]

Perhaps noble Lords will know of my interest in the horticultural industry, and I might say that our firm is peat free: we use it neither as a growing medium nor as a packing medium. What help are the Government giving to the horticultural industry in practical terms that will make it easier? The right reverend Prelate put the case for specialist growers that are finding the alternatives suggested to them not effective whatever. There will need to be a partnership between the industry and government, and I should like to hear that from the Minister.

[Lord Benyon (Con)]

My noble friend is absolutely right, and there is a very good partnership in dealing with this. He comes from a part of the world where there is a lot of peat, but it is a diminishing resource. We want to talk not just about the use of peat for crops that we grow in specialist settings but protecting peat where it is farmed. That is another issue where we are determined to react to the clear direction given to us by the Climate Change Committee, and this is all part of that.

[Lord Curry of Kirkharle (CB)]

My Lords, banning peat is something we obviously all support and want to achieve as soon as possible, but, as the Minister has highlighted, the supply of peat is a complex issue. Can he reassure the House that the department has carried out an environmental impact assessment of the alternatives to peat to make sure that we are not jumping out of the frying pan into the fire?

[Lord Benyon (Con)]

The noble Lord makes a very good point: in every policy area, there is an unintended consequence unless we fully consider it. In producing alternative media, there is sometimes a cost to the environment. If we are buying coir from abroad, what impact is that having on some very vulnerable parts of the world? There are many other growing media with which we have to ensure that, in our determination to protect our remaining peatlands, we are not exporting the problem and causing problems further afield. It is a very difficult issue, as the noble Lord rightly raises, and I assure him that we are all across this subject.

[Baroness Hayman of Ullock (Lab)]

My Lords, clearly it is critical that we stop peat extraction, but restoration must also be a priority. What are the Government’s plans to increase the restoration of our peatlands, and what resources are being provided, including through ELMs?

[Lord Benyon (Con)]

In our environmental improvement plan we have set clear targets for the restoration of peat, both in uplands and lowlands. With lowland peat this involves re-wetting and assisting those growers to farm in a different way on wetter peatlands using cover crops. In uplands we have a demanding target of restoring moorland peat in a way that reflects the fact that it locks up an enormous tonnage of carbon every year. I do not know of any other country that is doing more to protect its peatlands.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, something that really annoys me about this Government—

[Baroness Jones of Moulsecoomb (GP)]

All right, one of the things that really annoys me about this Government is that they are not coherent or joined-up in their thinking. The Government have just allocated £20 billion to develop carbon capture and storage, and at the same time they are allowing CO₂ to be released from peat, which is one of nature’s own carbon sequestration systems. Why are the Government not more joined-up in their thinking and why can they not see that they are encouraging damage to the climate?

[Lord Benyon (Con)]

The noble Baroness has made the point that I am about to make rather better than I will, and that is that we need to do all of these things. We need carbon capture and storage, because that will be a big part of dealing with our greenhouse gas emissions and protecting our environment, including our peatlands. I am sorry that this Government annoy her; I live for the moment when she and her Green Party colleague stand up and congratulate the Government on having serious targets for protecting our peatland and addressing climate change in a way that no other country is.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not accept that one of the reasons he is able to pass laws and deal with this in a balanced manner is he has the freedom to do so because we have left the European Union?

[Lord Benyon (Con)]

I did not see that one coming. I may have been on a different side to my noble friend but I can tell him that, on environmental issues, I am enjoying the freedom that I have, both nationally and internationally, to take action to protect our environment.

Microchipping of Cats and Dogs (England) Regulations 2023

Lord Benyon Excerpts

Monday 24th April 2023 Lords Chamber

Moved by

[Lord Benyon]

That the draft Regulations laid before the House on 13 March be approved.

Relevant document: 35th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 19 April.

Motion agreed.

Water Companies: Licences

Lord Benyon Excerpts

Monday 24th April 2023 Lords Chamber

[Baroness Bakewell of Hardington Mandeville]

To ask His Majesty’s Government what assessment they have made of the announcement by Ofwat on 20 March of a change to the licences of water companies requiring that dividend payments are linked to performance.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, we support Ofwat’s new measures, which were made possible by new licence modification powers that this Government gave to Ofwat via the Environment Act 2021. The measures strengthen the existing dividend licence conditions so that Ofwat can take enforcement action against water companies that do not make an explicit link between dividend payments and their performance for customers and the environment.

[Baroness Bakewell of Hardington Mandeville (LD)]

I thank the Minister for his response. Since I tabled this Question, the Government have published their plan for delivering clean and plentiful water, which is to be welcomed and offers much hope. However, river pollution has blocked the development of 20,000 much-needed new homes, and more than 7,500 days’ worth of raw sewage has been dumped in various Ministers’ constituencies. Does the Minister believe that withholding dividend payments to water company executives and shareholders will really contribute to making the difference needed to improve long-term water quality? Surely something more robust is needed.

[Lord Benyon (Con)]

My Lords, that is just part of a great many things that the Government are doing. The new power that the Environment Agency has to link the companies’ licences to ring-fence provision on infrastructure spending is important. This comes as part of a plan that includes the Environment Act, as I said earlier; the Storm Overflows Discharge Reduction Plan; a strategic policy statement for Ofwat, in which the Government required very stringent new standards; and our recently published plan for water. No Government are doing more to tackle this issue.

[The Duke of Wellington (CB)]

My Lords, I also commend Ofwat on its recent announcement that it will seek to take some powers over dividends, but what it actually says is that the company boards will be required to take account of their performance towards the environment. What worries me—I wonder whether it worries the Minister—is that it is up to the company to assess its own performance. Is that really a strong enough power?

--- Later in debate ---

[Lord Benyon (Con)]

It is not just up to the company; it is up to the regulators, Ofwat and the Environment Agency. We are currently considering this, and there is a proposal to lift the cap on fines from the Environment Agency to an unlimited level. This is part of a concerted effort to tackle a serious problem.

[Baroness McIntosh of Pickering (Con)]

My Lords—

--- Later in debate ---

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome the Government’s commitment to implement Schedule 3 to the Flood and Water Management Act 2010, but will my noble friend exercise a degree of urgency? Wales has already implemented this, making SUDS and sustainable drains mandatory in all new builds. That one measure alone will prevent sewage spilling over antiquated pipes and leading to river and sea pollution.

[Lord Benyon (Con)]

My noble friend is absolutely right: this was a key recommendation of the Pitt review following the floods in 2007. The Government are implementing it. It is complicated, because it is about who owns and has responsibility for the maintenance of the SUDS. My noble friend is right that this will have an impact on the amount of unwanted effluent that flows from developments into watercourses and aquifers, and it is being implemented—we are taking it forward urgently.

[Baroness Jones of Whitchurch (Lab)]

My Lords, following on from the previous question about the water companies marking their own homework, can the Minister explain how it is that the water companies themselves are responsible for monitoring and reporting? Will that change? He will know that a lot of the monitors do not work, so how can we be assured that decisions will be made on the basis of accurate reporting? It is not in their interest to provide that accurate information.

[Lord Benyon (Con)]

There was no information on this until 2013, when I required water companies to publish a full list. We now have—or will have in a matter of weeks—100% of all the monitors. The Environment Agency investigates anywhere a fault is not being correctly measured. The telemetry will exist to measure the quality of water in all these outflows, above the outflow and below it, so accurate comparisons can be taken. That sharing of information, which was lamentably woeful but which we have corrected, will be a key part of our attempts to successfully clear up our rivers.

[Baroness Altmann (Con)]

My Lords, the Government can be extremely proud of their record on the environment with regard to the Environment Act and a number of the measures to ensure improvement that I know my noble friend the Minister is personally committed to. Can he explain to the House whether he believes that Ofwat has sufficient powers to deal with this enormous problem that is exercising the public so much across the country?

--- Later in debate ---

[Lord Benyon (Con)]

My noble friend raises a key point. The Government give direction to the regulators of utilities such as water companies, and we have given very clear direction, which has been manifest in the latest Ofwat demand that water companies tackle this. It is not the only regulator. As I said earlier, the Environment Agency has huge powers and will levy fines and make sure that water companies that fail are taken into account. Of course, Ofwat also has to balance the importance of the pressure of bills on households with an increasing level of investment in tackling these issues. It is a constant balancing issue and one that I hope we are getting right.

[Lord Rooker (Lab)]

Can the Minister please explain how competition in the water industry is of direct benefit to the public?

[Lord Benyon (Con)]

It allows us to make comparisons between good and bad performers and to ensure that they are able to operate in the open market and borrow on the capital markets in a regulated way. Dividends are really important because they pay for investment, and very often they are paid to pension companies that invest in these companies. The average dividend is around 3.8%, which is not massive, but we want to make sure we get that balance right. Competition is also in the customers’ interest. Evidence shows that if it had not been for the kind of competition that we have created in the water industry, there would be higher bills for households and less money spent on infrastructure.

[Lord Cormack (Con)]

My Lords, week after week we read about the Wye and other beautiful rivers—they are sewers, in some cases. The question we are constantly being asked is: when can we expect our rivers to run clear and pure? Is it 2040, 2050 or 2030? When can we expect this?

[Lord Benyon (Con)]

We have set out dates by which we will expect to see different levels of improvement. We are requiring water companies to spend £56 billion, and most of that is being front-loaded. The date of 2030 is the first by which my noble friend will be able to see how successful we have been at that front-loading. On rivers such as the Wye, it is not just the water companies but farming that is the problem—a particular type of farming. We have had this debate many times, and action is being taken through the Environment Agency and grants that we are now offering through our environmental land management schemes to correct some of the issues that have gone wrong. We also need to look at planning, which has been part of the problem.

[Baroness Merron (Lab)]

My Lords, the Minister has previously said that the Government are looking at a proposal from the Environment Agency that directors of water companies that fail to improve and continue to pollute our watercourses should face a prison sentence. Can he update us on what progress is being made?

[Lord Benyon (Con)]

These are issues that require us to work across government, such as sentencing, but where a crime has been committed and it can be proved that an individual in a senior position in a company has directed that company to operate in an illegal manner, that is a criminal act and therefore sanctions should reflect that.

[Baroness Parminter (LD)]

My Lords, the Government have said that they will use the evidence of enforcement and litigation in determining whether they will use this new power on dividends for companies, but that requires evidence. As the noble Baroness, Lady Jones of Whitchurch, said, it has recently been shown that of the storm overflow monitors that the water companies put in, one in six—2,300—are not working. Why are the Government not fining these water companies immediately if their storm overflow monitoring devices are not working, because otherwise no one can get the evidence and Ofwat cannot make these decisions?

[Lord Benyon (Con)]

The Environment Agency has a suite of enforcement actions it can take in those circumstances, including criminal prosecution. Last year it reported 30 monitors that were not recording data properly. Faulty or inactive monitors are identified by the agency through its data monitoring, and where water companies are failing to meet expected levels of monitoring coverage, the agency is holding them to account by requesting plans and monthly updates on progress. Some 15,000 storm outflows exist in this country; we now know where they are and we can monitor them.

Ecology Bill [HL]

Lord Benyon Excerpts

3rd reading
Friday 21st April 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I will say only a very few brief words. Clearly, reversing biodiversity decline is extremely important, and we have had useful debates around the Bill, which clearly has been on a bit of a journey. I wish it luck for its passage in the other place and I am sure that we will see it again at some point.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I pay huge tribute to the noble Lord, Lord Redesdale, for tabling this Private Member’s Bill and for the passion, knowledge and understanding of this issue that he brings to the House. As he says, this is a crucial issue, and I am glad that throughout the Bill’s passage we have had the opportunity to debate and discuss it. I know that noble Lords will agree with me when I say that tackling the twin challenges of biodiversity loss and climate change is of the utmost importance.

I will not repeat the discussion we had at Second Reading and in Committee, but I will emphasise the action that the Government have taken since the last time we discussed the Bill. In England, we have now set four legally binding targets for biodiversity. By 2030 we have committed to halt the decline in species abundance and by 2042 we aim to reverse species decline, to reduce the risk of species extinction, and to restore or create more than 500,000 hectares of wildlife-rich habitats.

We have set out our plan to deliver on these ambitious targets, along with other environmental targets, in the revised environmental improvement plan, published on 31 January. Here we link the different objectives, plans and mechanisms for recovering nature. The environmental improvement plan also includes short-term interim targets in addition to those long-term targets. This overall suite of targets will ensure that the policies, actions and commitments in the plan are collectively driving progress towards our ultimate goal of leaving the environment in a better place than we found it. Additionally, the plan matches the ambition agreed internationally in the new global deal for nature at the UN nature summit COP 15 in December.

I thank the noble Lord again for bringing the Bill to the House and for enabling this debate, but I hope that noble Lords are reassured that biodiversity is an absolute priority for the Government and that action is being taken and will continue to be taken.

[Lord Redesdale (LD)]

My Lords, I thank the Minister for his reply; I know that he has a personal passion for this area and brings a great deal of knowledge to the department. I do question whether the 2042 target is far too far away. However, on the basis of his reassurance, I commend the Bill to the House.

Microchipping of Cats and Dogs (England) Regulations 2023

Lord Benyon Excerpts

Wednesday 19th April 2023 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Microchipping of Cats and Dogs (England) Regulations 2023.

Relevant document: 35th Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, the purpose of this instrument is to introduce compulsory cat microchipping in England, delivering one of the Government’s key manifesto pledges. This measure was supported by 99% of respondents to our public consultation, which received over 33,000 responses.

Microchipping improves animal welfare by increasing the traceability of pets, making it easier for lost, stray or stolen pets to be reunited with their keepers and returned home safely. Microchipping is a safe procedure involving the insertion of a chip, generally about the size of a grain of rice, under the skin of a pet. Once the microchip has been inserted, contact details are registered with a compliant database. The regulations also include provisions that relate to ensuring that microchips are inserted by competent people.

Since the Government introduced compulsory dog microchipping in England in 2016, around 90% of dogs are now microchipped. Evidence suggests that stray dogs that are microchipped and have up-to-date microchip records are more than twice as likely to be reunited with their keeper than stray dogs without a microchip.

There are over 9 million owned cats in England, but as many as 2.3 million are currently not microchipped. These measures are intended to address this. From 10 June 2024, any owned cat over the age of 20 weeks must be microchipped and the keeper’s contact details registered on a compliant database. There is an exception to this, where a vet certifies that the procedure should not be carried out for animal health reasons. However, I reassure your Lordships that this exception is rarely used. These requirements apply only to owned cats; they do not apply to free-living cats that live with little or no human interaction or dependency, such as farm, feral or community cats.

As with the existing requirements for dogs, keepers found not to have microchipped their cat may be served with a notice by the enforcement body, which will usually be the local authority. If they do not comply, they may face a fine of up to £500, and the enforcement body may also arrange for the cat to be microchipped at the keeper’s expense.

This instrument also repeals and replaces the Microchipping of Dogs (England) Regulations 2015, bringing all the measures into a new single instrument covering both dogs and cats. There are no substantive changes to the existing provisions covering the requirement to have your dog microchipped, although we have taken the opportunity to make technical drafting changes where we considered the existing text would benefit from further clarity. Animal welfare is a devolved issue and therefore these regulations apply to England only.

Noble Lords may be aware that, last year, the Government also consulted on wider pet microchipping reform designed to improve the operation of the existing regime. This includes plans to: make it easier for approved users to access microchip records; improve the accuracy of the records; and standardise database operator processes. We will be issuing our response to this consultation shortly. However, I can reassure noble Lords that we are planning to come forward with amending regulations in due course to implement these improvements. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome these regulations. I was chair of the Environment, Food and Rural Affairs Committee in the other place and, as my noble friend will recall, we took great interest in this.

My view is that this measure will be successful only if it is properly enforced. Given that that the penalties will, I presume, be similar to those imposed for a breach of the obligation to microchip dogs, how many fines have been imposed for failure to comply with the obligation to microchip dogs? Does my noble friend share my frustration that we are still 10% short of the magic 100% figure for dogs? It is hoped that the obligation to microchip cats will bring it up to that level. Is that the Government’s ambition, or are they aiming even higher than that?

At the moment, there is the vexed issue of dangerous dogs doing damage. Often, they attack a person in a public place. I assume that these dogs will be microchipped. To what extent does my noble friend think that the Government’s current obligation to microchip dogs is successful in identifying and tracing dogs that commit a grievous injury or fatality in a public place?

On the exemption, I presume that there will be potential for a feral cat to cross over and commit an injury such as biting or scratching a perfectly innocent bystander, which we know can have very significant effects. Obviously, they have no owner, so what happens in that situation, in terms of identifying the feral cat and bringing it to justice, as it were?

My final question is about the continuous issue of what I think are called boiler-house dogs: the breeding of multiple pups which, when they are not sold, are unlikely to be microchipped. For the sake of completeness, what is the Government’s policy in that regard? I understand from press reports that these dogs are literally dumped on the streets and taken in by cats and dogs homes, such as Battersea Dogs & Cats Home, for whose work we are grateful. Is that occurring more than it was before and is there a similar problem with cats and kittens?

--- Later in debate ---

[Baroness Anderson of Stoke-on-Trent (Lab)]

My Lords, I thank the Minister for providing an overview of this very important statutory instrument and also thank his team for the helpful briefing that it provided.

The issue of microchipping cats has been widely consulted on, and these regulations are, of course, supported by His Majesty’s Opposition. Let us be clear why we are here today: one-quarter of all owned cats are not currently microchipped, which compares unfavourably to their canine friends, as only 10% of dogs are not chipped. While that statistic is surprising enough, the scale of the problem is compounded by the fact that 59% of cats taken in by Battersea Dogs & Cats Home and 80% taken in by the Cats Protection adoption centres were not chipped. That can truly be heartbreaking for those pet owners who have lost their feline friends and cannot be reunited with them. As a proud nation of animal lovers, we must do better, which is why these regulations are so important. However, I would like to ask the Minister a couple of questions related to the implementation of the regulations.

Can the Minister confirm that the department is in discussions both with local authorities and with the relevant charities to ensure support for those who will struggle to meet the financial obligations associated with the implementation of the regulations, as has been highlighted?

On a further point, Rebecca Pow, the Minister in the other place, this week suggested that a further SI would follow regarding the microchipping database system and the need to have a standardised system in place for relevant parties to access. Can the Minister inform us as to when we should expect both the SI and sight of these plans to streamline the 22 current systems?

I would also be grateful if the Minister could provide your Lordships’ Committee with the definition his department and relevant stakeholders will be expected to use to differentiate between owned, feral and community cats.

We all want nothing but the best for our pets and those animals which we see in and around our communities every day—or currently on the campaign trail—which is why the Labour Party supports this statutory instrument. I pay tribute to the animal welfare organisations which have campaigned on this issue for many years and brought it to our attention, most notably Battersea Dogs & Cats Home, Cats Protection and the RSPCA, whose work we recognise today.

[Lord Benyon (Con)]

I am grateful to noble Lords for their important contributions to this debate and for the support for the compulsory cat microchipping provisions. I join the noble Baroness in paying tribute to Battersea Dogs & Cats Home, Cats Protection, the RSPCA and other organisations which have long campaigned for this. I hope that we will see this on the statute book in the very near future—I should just say to the noble Baroness, Lady Doocey, that it will kick in in June 2024.

Microchipping has established substantial benefits for the welfare of our pets and offers peace of mind for their keepers. I am delighted that we are delivering on the Government’s manifesto commitment, which is so strongly supported by the public. I will address as many of the points as I can.

On enforcement, the maximum fine is £500. My noble friend Lady McIntosh asked about the implementation of this with regard to dogs: I think almost 500 people have been fined for not having had their dog microchipped.

My noble friend also asked what the definition of an “owned cat” is. Colloquially, the term refers to cats that are generally kept as pet cats; free-living cats such as farm, feral or community cats that live with little or no human interaction or dependency are not regarded as owned cats. The statutory Code of Practice for the Welfare of Cats will be updated to include the new requirement for compulsory microchipping and provide further clarification that may be needed. We will consider issuing guidance on enforcement to local authorities. Of course it is difficult to define in government and legislative terms something so broad as the life of cats. We know that some move very short distances away from their owners, whereas others live virtually as wild animals.

Microchips are used to identify dangerous dogs. All prohibited dogs which receive an exemption under the Dangerous Dogs Act must be microchipped. It is mandatory to microchip your dog, and since 6 April 2016 it has been a requirement for dogs in England to be microchipped. Puppies over the age of eight weeks must be microchipped and their details recorded on one of the compliant databases. Scotland, Wales and Northern Ireland also have mandatory dog-chipping requirements in place.

We recognise how painful it is for an owner to lose a pet. When I was in the other place, dog theft was a major issue in the Berkshire/Oxfordshire area, and it struck me as a new MP that it was not being taken seriously, particularly by the police in those circumstances. Losing a pet in this way is a horrible crime that completely ruins people’s lives, so it is important to be able to work locally and make sure that the profile of that is raised. I know that police and crime commissioners have gone a long way towards making this a much more seriously viewed crime among local police forces. Great work is happening, and we want to make sure that that continues.

On a point mentioned by the noble Lord, Lord Trees, compulsory microchipping will make it easier for deceased cats to be reunited with their owners and for their owners to be informed of the circumstances. Highways England and the majority of local authorities already have procedures in place to scan dead cats and dogs found by the roadside. In addition, we are committed to improving the operation of the microchip databases.

Further on my noble friend Lady McIntosh’s point about fines, in fact 421 fines were issued for this offence; 1,126 various summary offences contrary to the Microchipping of Dogs (England) Regulations 2015 have been imposed, with an average of 84 fines per year, the average fine being £204.

Many noble Lords have raised the issue of the databases. The legal framework for database operators that store cat microchip records mirrors that currently in place for dogs. My noble friend is absolutely right: there are 22 separate databases that hold themselves compliant with the legislation, 21 of these also accept cat microchip records and a list can be found on GOV.UK. Our current consultation, to which the noble Baroness, Lady Anderson, referred, will address the point of access to the data on those databases. She is absolutely right: at the moment, you can access under which database it is listed, but then there is a further procedure. We are seeking to create one portal which will enable the veterinary surgeon or whoever is scanning the cat to identify the owner as quickly as possible. We think that is really important. The consultation on the microchip database system reforms closed on 20 May last year. We are currently analysing the responses with a view to introducing reformed measures this year, and we will be issuing a response to the consultation soon.

In response to my noble friend Lord Caithness, dog breeding is regulated under certain circumstances, but cat breeding is not. As puppies can be rehomed from eight weeks of age, the requirement for them to be microchipped by eight weeks ensures that the breeder is the first registered keeper—I am sorry: I cannot remember who raised this. The Government decided to raise the age at which a cat should be microchipped from the proposed 16 to 20 weeks due to responses in the public consultation. This is to allow the procedure to be carried out alongside neutering, which may be routinely carried out up to 20 weeks, so it fits with those specific requirements of cats, as opposed to dogs.

My noble friend Lord Caithness also raised the important issue of wildlife being killed by cats. It is very hard to legislate against this, but millions of birds are killed every year by domestic pets, many of them cats. We of course encourage responsible ownership. There are various things that a cat owner can do to make it harder for it to catch birds—where you put your bird feeder is but one of them—but he raises a very important point. The number of feral cats, although they can be very useful in farmyard settings for controlling vermin, is also part of the problem with killing birds, and we need to see a reversal in the decline of species in this country. We have a very firm commitment, and we are open to any suggestions which can help with responsible pet ownership. It is not just cats: if you watched “Springwatch” last year, you will have seen a dog destroying a redshank’s nest on the North Norfolk coast. People must control their pets and be responsible. We recognise that the damage that can be done by irresponsible pet ownership can be devastating to rare species.

We agree with the point made by the noble Lord, Lord Trees, about scanning not being compulsory. We agree with his position and thank him and the royal college for their support on this matter.

Oil Spill: Poole Harbour

Lord Benyon Excerpts

Wednesday 29th March 2023 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, television has shown us the extent of this spill; the oil has clearly mixed with the water in the bay. Two hundred barrels were released, allegedly containing only 20% oil, yet seabirds are being covered in it. This is not the first time such an instance has occurred. The plant is 50 years old. This is an SSSI, a Ramsar site and a European marine site, and the licence for the plant has another 15 years to run. Does the Minister agree that this is not the right environment for such a polluting activity to take place, affecting not only the environment but the bathing water status of Poole harbour?

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

I thank the noble Baroness for her point, and I agree with her that this is a very serious and worrying spill; I hope it has been contained. A lot of work has been done by a lot of agencies, including the marine coastal agency, the Environment Agency, Natural England, the Food Standards Agency—regarding the shellfish produced in Poole harbour—and the local IFCA. The Dorset Local Resilience Forum has also done noble work in galvanising lots of different agencies to resolve this.

I am not aware of the legislation governing Poole Harbour, but, as the noble Baroness, Lady Bakewell, points out, there are overlaying environmental designations; it is a very special area indeed. There is also an enormous amount of human activity, not least that associated with the tourist income for the local area. We want to make sure that we are not only containing this but finding out what caused it and doing everything we can to make sure it does not happen again. The recovery operation has sealed the pipe. It will be replaced and we will monitor the company doing that, which owns this very large facility, and make sure that the polluter is responsible for the damage caused.

The noble Baroness, Lady Bakewell, is absolutely right: about 80% of the 200 barrels of pollutant that was released was water. As of this morning, some 20 birds have been found to be affected. It is not known at this stage whether they will recover or will require further treatment, but I very much hope that we have contained the situation.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, there is likely to be a lot of damage to marine ecosystems in Poole harbour and outside. What remedial action are the Government undertaking or perhaps recommending be undertaken?

[Lord Benyon (Con)]

Poole harbour is a large expanse of water and this is a significant spill. Booms have been put out, but they will not contain all the pollutant. Other measures have been put in place and the Environment Agency is overseeing the recovery. Repair works will be conducted close to the salt marshes, mud flats and reed beds which are used by a variety of residents and overwintering birds. As the noble Baroness will know, Poole harbour is home to a native population of spiny seahorse, short-snouted seahorse and other rare species, and there is also a mussel fishery and an oyster fishery. We will make sure, working with the Food Standards Agency, that they are safe to eat. We are advising local people to continue to use the beaches but at this stage not to swim there, and we are monitoring the situation. The Environment Agency is in charge of all outreach to local people, and is making sure that we are communicating to them what we are doing by way of recovery and to limit the effects of the spill.

[Baroness McIntosh of Pickering (Con)]

My Lords, will the Minister pass on our congratulations to those who managed to contain the spill? It could have been so much worse. He mentioned potential loss of income to fishermen and tourism businesses. What compensation might they get if there is significant loss in that regard?

[Lord Benyon (Con)]

Noble work is being done, and I thank my noble friend for pointing that out. There is a very clear line of process for compensation, which is that the polluter should pay. We will assist anyone who feels they have a legitimate case to make in following that process through. However, at this stage it is unclear whether there are significant losses. As I say, we are working with organisations such as the Food Standards Agency to make sure that the food is safe and that people can continue to produce high-quality shellfish from that area.

[Lord Berkeley (Lab)]

My Lords, this oil spill is serious, and it is good that the Government are doing all they can to mitigate the effect. However, this oil field has been there for a very long time, and I recall a lot of opposition to any development such as this in such a sensitive site. Is there an argument now for looking at new developments on similarly sensitive sites and saying, “No, we’re not going to do it there under any circumstance”?

[Lord Benyon (Con)]

We apply very strict environmental conditions to any new applications. I think this site is the largest onshore oil-producing business in Europe and it has been there for quite a long time. We want to make sure that all the supporting infrastructure is in the best possible condition and that this kind of spill does not happen again. For future licensing of this or any other site, huge measures will need to be taken to reassure local people that all measures are in place to protect them and the environment.

[Baroness Boycott (CB)]

My Lords, it is really good to hear that we will have the polluter pays principle, but I can see that being only for specific things such as tourism. What about the FSA and the other agencies that will have to stop doing other work to go to Poole harbour and spend time sorting this out? Will the owners of this oil compensate them for their time?

[Lord Benyon (Con)]

The noble Baroness makes a very good point, and I am not entirely sure what the precedent is in such circumstances. Undoubtedly, an enormous amount of taxpayers’ money is being spent with all the agencies I listed. I will have to reflect on that and talk to colleagues not only in my department but in those responsible for such facilities to see what the precedent is in the circumstances.

[Lord Sentamu (CB)]

My Lords, I chair the Bayelsa State Oil & Environmental Commission, which has been in operation for nearly three and a half years. The greatest pollution in the world is in the Niger Delta, and part of the problem is that some of the oil pipes are 50 years old. Recently, one of the pipes burst and had to be renewed, because if you do not replace them, you are sitting on a timebomb. I am very glad to hear about the principle that the polluter should pay. In the Niger Delta, Shell, BP, Agip and others have not been paying their polluting costs, and two cases are pending at the moment in the Supreme Court here. How can we be sure that the polluter will actually pay—and clean up, as well?

[Lord Benyon (Con)]

We are working very closely with the company here to get to the bottom of what caused this and make sure it does not happen again. The noble and right reverend Lord raises the issue of this kind of incident taking place on a much larger scale in other parts of the world. There are measures that should be taken through corporate governance to make sure that companies that are polluting are held responsible through clear ESG guidelines. That is a much wider and bigger debate, but I entirely understand the point he makes.

[Lord Sterling of Plaistow (Con)]

How big is the area covered? Some 20 years ago, down under there was a major spill and they set fire to it. That played a very important part, because it did not cause any problems whatever after it was set fire to.

[Lord Benyon (Con)]

This is a relatively small part of a quite large, very precious marine and coastal environment, and we think the damage has been contained within that small area. I certainly would not want to see that kind of response. As I said, the leak is about 80% water and 20% oil, and measures are being taken both to contain it and remove it. That will be ongoing, and I am very happy to keep the House informed on the progress made.