Water (Special Measures) Bill [HL]

Baroness Young of Old Scone Excerpts

Committee stage
Monday 28th October 2024 Lords Chamber

[Baroness Parminter (LD)]

My Lords, I will be brief because the noble Baroness, Lady Willis, has set out clearly the case for a duty for Ofwat to deliver on the Government’s biodiversity and climate change objectives. I just want to pick up on the point about the review, because I think the Minister will say, “This is a fantastic amendment, but we just need to wait for the review”, and there are three reasons why this Committee will find that response unsatisfactory.

The first point is that made by the noble Baroness, Lady Willis, which is around the timing of the review, which we all welcome, but we do not know when exactly it is going to finish. Of course, by the time it is in legislation, and we do not know when there is going to be a slot, we could have missed our biodiversity targets, let alone our climate target.

Secondly, there is nothing in this amendment which is not already Government-stated policy. It is Government-stated policy to deliver on our biodiversity objectives, to move towards our climate change objectives, and to adapt to respond to those. So why do we need to wait for the review? There is nothing about putting this in legislation now which is counter to the Government’s position and therefore there is no barrier.

Thirdly, the wording is rather clever. It does not say “Ofwat”; it talks about “the Authority”. So, whatever the review decides, it is relevant. It is also clever because it says that it must “take all reasonable steps”. Again, it is not precluding or being prescriptive about that future authority; it is just setting the parameters.

It is a very well-crafted amendment and I think the Committee will be deeply disappointed if the Minister comes back and just says we should wait for the review. It would also make us question what the point of the review is, and we would not wish to do that because we have the highest regard for the Minister. If the Government are not prepared at this stage to put in the Bill that part of the review is to ensure that we deliver on our environmental and climate targets, then how can we be sure the review is going off on the right foot?

[Baroness Young of Old Scone (Lab)]

My Lords, I add my support to these two amendments, to which I have put my name. I was pondering why Ofwat lost the plot on the environment around 2010. In a way, it is not surprising, because the reality is that it was getting a strong steer from government that the important thing was to keep bills down and that everything else should take second place. It was eminently possible to say that to Ofwat because the number of objectives and duties that it had been given was quite a large, disparate and often conflicting set and was growing yearly.

Ofwat currently has a primary duty under Section 2 of the Water Industry Act 1991 to

“further the consumer objective … to protect the interests of consumers, wherever appropriate, by promoting effective competition”.

That really became the sole mission of Ofwat in the 2010s.

Section 3 says that Ofwat’s work to further the conservation of flora and fauna should be undertaken only as far as it is consistent with the primary consumer objective. So, there is a “get out of jail free” card for Ofwat about environmental improvement and biodiversity decline and they take a very second-class seat. Ofwat also has a duty for pursuing sustainable development and a whole suite of environmental and recreational duties.

In 2014, a very muddled objective was added to Ofwat’s increasing list relating to resilience. In 2024, Ofwat got a statutory duty to promote growth. If one was being benign towards Ofwat, one could say that perhaps it was a bit confused by a number of directions which were mutually inconsistent, but the primary one was that Ofwat was told very firmly to keep prices down, and it pretty well did that in terms of the environmental elements of successive price rounds since then. Had Ofwat been challenged at any point as to whether it was meeting these duties, many of which are about contributing to or furthering or having regard to, it would have been very easy for it simply to construct arguments that demonstrated that it had a limited compliance with almost anything and to deliver nothing that it did not want to deliver.

The Minister will no doubt say that the broader review which has been referred to will consider how to streamline and focus Ofwat’s duties, and I agree that that is important and that the review should do it, but I share the views expressed that we cannot wait that long. The review will report eventually and there will be a delay while legislation comes forward. This amendment, which gives equal prominence to environmental duties and consumer duties, is fundamental if Ofwat is going to immediately play its full part in meeting the legally binding targets of the Environment Act and the Climate Change Act. At the end of the day, though I gather the debate on climate change last Thursday tried to deny it, these are in fact existential issues, which is why there are legally binding targets on both climate change and biodiversity.

Water (Special Measures) Bill [HL]

Baroness Young of Old Scone Excerpts

2nd reading
Wednesday 9th October 2024 Lords Chamber

[Baroness Young of Old Scone (Lab)]

My Lords, I declare my interests as a former chief executive of the Environment Agency and, briefly, a non-executive director of Anglian Water—I did not gallop over the horizon with bags full of money.

Before I turn to the particulars of the Bill, I will comment on the importance of the wider review of water issues that the Government have promised, because the poor state of our water bodies and rivers is not just about how water companies and others have dealt with sewage. There are other major sources of pollution in agriculture—including, indeed, chicken shit, which the noble Lord, Lord Lipsey, promoted with vigour. There are also other pressures that have caused diminution in the quality of our rivers and water bodies. Surface water run-off is a major aspect, particularly from roads but also from other surfaces, including all urban surfaces, and there are pressures from novel and persistent chemicals.

The state of our water bodies is therefore not just about the sewerage issue, so we need to put the Bill in a much wider context. The state of our water bodies is also about the record and effectiveness of the regulators, Ofwat and the Environment Agency, as many noble Lords have pointed out. It is also about the ineffectiveness of the current arrangements for water pricing. I therefore urge the Minister to publish for consultation the framework for the review and ask that it includes the following four issues.

The first is what action would be needed to reduce overall pollution of the water environment from the whole range of sources, particularly agriculture, and not just sewage pollution. The second is what is needed to get both regulators back to the point where they can regulate effectively. In the case of the Environment Agency, this means resources to enable effective, real-time monitoring; reduce reliance on self-monitoring by operators, particularly the dodgier operators; and fund effective enforcement.

In the case of Ofwat. I believe that it seriously lost the plot from around 2010. It was focusing very much at that stage on the promotion of rather spurious competition in a business which is naturally monopolistic. It was not helped by strong direction from the Government that keeping bills flat was more important than environmental programmes. For those reasons and many others, I would be very cautious about giving more powers to Ofwat until we can be assured that it will operate more effectively in the public interest. After all, Ofwat has been responsible for overseeing the financial shambles that the current water companies have become.

The review should therefore cover the appropriate powers and approaches of the regulators. I do not support the creation of a single regulator for the water industry. I think it would be disastrous to combine economic and environmental interests in one regulator. It would hide the environmental and economic trade-offs. As long as there are two regulators, both robustly defending their part of the equation, either economic or environmental, it is a very transparent system.

In addition, if you think about it, regulating the water companies because of their impact on rivers is a rather crazy thing to do when what we should be doing is regulating rivers and water bodies in an integrated way to take account of all the pressures on them. After all, farmers, planners, builders, water companies, fisheries, forestry and a whole range of other economic activities impact on rivers. If we have one regulator which is talking simply about water company impacts and another regulator which is talking about all other impacts—or if, even worse, the regulators are fragmented even further—I think that we would lose sight completely of integrated management of our water environment. I am surprised that the noble Lord, Lord Whitty, was keen on the single regulator solution. I thought that we had trained him rather better at the Environment Agency—he is off my Christmas card list.

The third thing I would like is a review of the culture in water companies. There is a totally different culture in the parts of water companies that deal with drinking water. There is an absolute prohibition on falling from grace in that part of the water industry because drinking water standards are regarded as inviolable, and it is not good for business to poison people. There is not that culture on the other side of the water industry, which deals with sewage. That is very visible considering the prosecutions against and fines on water companies in the recent past. Many of them are not just negligent, but also carried on for far too long and caused even more damage than was necessary, had they been dealt with promptly. We need a radical look to make sure that the high-quality culture in the drinking water supply is merged in the case of pollution reduction measures. That culture really has to change.

The fourth thing I would like in the review is the need, at long last, for an open public debate about the options, trade-offs and costs of cleaning up the water environment. It is not as simple as punishing the water companies and controlling them, and the water environment then recovering. It will not, and it is unfair to wind the public up to expect that, which is what much of the public debate is about at the moment. People think: “It’s all these rotten water companies and if we sort them out we will have a clean environment”. That is simply not the case. There needs to be a properly informed, understandable public debate about how much the public can pay, what they think it is most important for them to pay for and over what period of time. At the moment we have more heat and steam than illumination.

Can my noble friend the Minister tell the House more about the timescale of this review and whether the scope will be consulted on? I have gone on rather long about the review and have very little to say about the Bill itself. It is a bit performative—kicking the water companies, which have lost the confidence of the public and the Government. It is not a substitute for more fundamental action on water policy and the water environment. However, as the Bill is here, I would like to support several of the amendments to it that have already been mentioned, and raise a few of my own. It is important to give an environmental duty to Ofwat to ensure that it cannot be guided, or by default, soft-pedal the environment, as has happened since 2010. I would like the earmarking of all water company fines to an environmental fund such as the Water Restoration Fund. I would like measures to ensure the commencement of Schedule 3 to the Flood and Water Management Act, as the noble Baroness, Lady McIntosh, mentioned. It is outrageous that 14 years have passed since Parliament endorsed SUDS and soft drainage measures to try to reduce the amount of run-off into the sewerage system and therefore the cause of more overflows. Why on earth are we here creating legislation if it is never commenced? I would also like measures to strengthen the examination and sign-off of the pollution incident reduction plans by regulators and by Ministers to make sure that they are fit for purpose and can be properly implemented and monitored.

There are other amendments to come forward, but I make one last plea to the Minister. It is a more general point about legislation, but this is a good place to make it. She very kindly summarised the number of delegated powers in the Bill. I remember the days when I first came into this House when it was regarded as outrageous if we did not have, in draft, guidance and secondary legislation that flowed from a piece of primary legislation before we finally pressed the button on it at Report and Third Reading. I would like to think that a new Labour Government would bring back a commitment to making sure that this House sees in draft form what the contents of guidance and secondary legislation will look like, so that when we debate the Bill we are not debating a pig in a poke.

Environment and Climate Change Committee Report: An Extraordinary Challenge: Restoring 30 per cent of our Land and Sea by 2030

Baroness Young of Old Scone Excerpts

Wednesday 11th September 2024 Grand Committee

[Baroness Young of Old Scone (Lab)]

My Lords, the worst thing in the world is to follow the noble Baroness, Lady Parminter, for two reasons. One is that she was a magnificent chair of this committee, on which I was very privileged to serve, and the other is that she has now said everything that needs to be said, and said it eloquently and with no notes—goodness, there are days I hate her. I could just say that I agree with the noble Baroness, Lady Parminter, and sit down, but that would be a bit of a cop out. I would like to make a few additions, mostly focusing on the land-based elements of our report.

The noble Baroness used the word “slogan”, and that is what 30 by 30 is—it is a great slogan, and there are some in this Room who helped invent it, but we now need a plan, and it needs deliverables, and timescales for those deliverables, and a way of monitoring them, or we certainly will not hit the 30 by 30 target.

I will start with sites of special scientific interest. They are the jewel in the crown of nature conservation and biodiversity in this country, and they are the best protected sites that we have, but particularly the subset of those that are special areas of conservation and special protection areas. However, there have been no real increases in the number of these sites for the last 20 years.

I was probably chairing English Nature at the time when the last major additions to the suite of SSSIs went through. A small number have been declared since then—I can see that some noble Lords are going to contradict me on that one—but generally speaking we need more. It is true to say that it has not been the fashion to declare SSSIs over the last few years, but there is a real gap: there are ecological networks that need to be filled and species that need to be protected where an SSSI would be the appropriate way of doing that. We have to get over the unwillingness to declare SSSIs and see them as the pinnacle of protection. There is not a huge number of them, and we need more to fill in those gaps.

Perhaps more worrying is the whole condition argument. To hark back again—I am so old that I can remember the 1990s, for goodness sake—we at English Nature used to agonise that only about 60% of SSSIs were in favourable condition in those days. That was a key English Nature performance indicator; it had to report on that every year in its annual report, and it was a big issue for us. We are now at the point where we have less than 35% in favourable condition, and that is down from last year’s number of 37%. There is a pressing need for management plans to improve these SSSIs, for those management plans to be resourced and for there to be a system of monitoring conditions that is better than the one at the moment. In reality, if the two issues of the extent and condition of our SSSIs were tackled effectively, those two simple remedies would take us half way to 30 by 30.

One of the two other big contributions to the 30 by 30 issue is our national parks and our protected national landscapes. The Climate Change Committee was keen on giving an additional statutory duty to protect nature to what were in those days AONBs and national parks, but that was rejected, rather fulsomely if I may say so, by the Government during the Levelling-up and Regeneration Bill—I break out into hives when I utter the words “Levelling-up and Regeneration Bill”. There was a compromise amendment on protected landscape plans and the contribution to environmental improvement targets, but the regulations to make that happen in practice were delayed by the fall of the Government. We now need to revisit that. To be honest, I do not think the compromise amendment should be pursued any further; we should just go straight to an action that declares a new nature purpose for protected landscapes and national parks.

There has been some progress on delineating the draft criteria for what should count towards 30 by 30. In the early days of 30 by 30 it was felt that, if we lumped in the national parks and the AONBs, we would hit it in one go, but most of the land in the national parks and AONBs is not managed for nature conservation as its primary purpose, or indeed its secondary purpose, so we have to be pretty clear about what should count and what should not. In common with the noble Baroness, Lady Parminter, I think we should simply fall in line with the IUCN guidance and the international definitions, and then include other effective area-based conservation measures if they can be demonstrated to be well managed.

The last chunk of land that we need to focus on—a very big chunk—is agricultural land, which makes up a huge proportion of the land under management in this country. Nature-friendly farming is going to be crucial in this. We need to ensure that more farmers are encouraged, advised and supported to move into the higher tiers of nature-friendly farming schemes, and particularly that the guidance for that is made more specific and simpler, and is clarified. It is only at those higher tiers that we will get the right sort of outcomes that will produce genuinely high-quality land that is in favourable condition for nature conservation.

The current Government, of whom I greatly approve, have made some commitments already. They have said they will halt the decline of species by 2030, which is quite a big ask, and have honoured their international commitment to 30 by 30. Most importantly, there will be a new statutory plan to protect and restore our natural environment, with delivery plans for each of the targets therein, and a rapid review of the environmental improvement programme. That is crucial, and all our work on 30 by 30 needs to clearly link to that.

We also need to make sure that all of this work on the 30 by 30 agenda relates to other strands of work that are under way. We have local authorities beavering away on local nature recovery strategies, so we have to ensure that we understand the relationship between those and site protection. We now need to see what the land use framework—the broader framework that the Government say they support—will actually comprise; it will put nature conservation, food production and trees and all sorts of other non-environmental issues into one framework that allows us to make the best of our land, a scarce resource in this country.

The land use framework will, I hope, provide an overarching way to look at the need for land in this country. It will allow actors at national, regional and local authority level, and individual land owners, to have a basis of sound and well-analysed data, and a set of principles under which they can begin to think about how land that they have any influence on can do the best it can not only for private landowners but for the nation as a whole. It need not be something we are scared of. It is not going to be obligatory. It will, I hope, be a help. I hope that it will also be a help in some of the rather nasty local disputes we might see coming up around the use of land for development, infrastructure and housing.

I want to make one last point that your Lordships will not be surprised by from a former chairman of the Woodland Trust—about ancient woodland, my favourite topic. The time has come for proper protection for ancient woodlands. Ancient woodlands would be a key part of 30 by 30, but they have absolutely no statutory protection beyond some very finely crafted words in the National Planning Policy Framework. We had to work pretty hard to get those words in, and we are working pretty hard to make sure they do not fall out in the review of the NPPF.

In this country, we still have over 1,000 sites containing ancient woodland that are being threatened by development or inappropriate land use. That is unacceptable. They are irreplaceable habitats, they are hugely environmentally and biodiversity rich, and they have historic heritage, as well a very modern purpose of combating climate change and giving the public a lot of pleasure. Let us grasp the nettle and have a new designation of equivalent protection for ancient woodland as currently exists for SSSIs. We are due to report to COP 16. Unless we do some of these things, we are going to look a bit cheesy.