Water White Paper

Ben Bradshaw Excerpts

Thursday 8th December 2011 Commons Chamber

[Richard Benyon]

I have looked very carefully at that issue, and as my hon. Friend will know we are in the process of a very exciting change in how we manage our waterways, in transferring British Waterways to the charitable sector. There remains the opportunity to use our canals to move water around, but the sad truth is that water is an extremely heavy substance, and it is very carbon-intensive to move it very far. The economic assessments that I have seen state that to move water much more than 30 miles is uneconomic, but through a range of different measures we start to see that, with interconnectors, we can incentivise water companies to use a variety of means to move water from neighbouring areas to theirs. Then, we can start moving a trickle of water from areas of high rainfall to areas of low rainfall.

[Mr Ben Bradshaw (Exeter) (Lab)]

I welcome the fact that the Government are implementing the part of Anna Walker’s review that will bring relief at last to consumers in the south-west, although I note, of course, that our bills will still be more than £100 more than in any other part of the United Kingdom. Will the Minister say a little more about infrastructure? The thing that puzzles many members of the public is that we live in a wet, temperate climate with lots of rainfall, and yet we constantly talk about having droughts. What more can the Government do to increase the capacity of reservoirs and other infrastructure to avoid that happening?

[Richard Benyon]

I thank the right hon. Gentleman for his words. Of course, he is right. We want to encourage water companies to continue to invest. A key element of the White Paper is to send a very clear message to the investor community that we value the nearly £100 billion of investment in our infrastructure over the past 22 years and want to see more of it in future. There have been two intentions in that direction: first, not to spook investors by giving the wrong indications about how we want to proceed on competition; and secondly, to say to the investor community, “This is a place of safety and security where you can invest for the long term.” We will still require greater infrastructure and elements of construction that will make our economy and our environment more resilient to the kinds of weather changes that are happening.

Oral Answers to Questions

Ben Bradshaw Excerpts

Thursday 24th November 2011 Commons Chamber

[Richard Benyon]

The fish in our seas are a national resource and what we are talking about, in the reform of this failed policy, is getting a fairer system for the allocation of that resource. Transferable fishing concessions in other countries are sometimes a lever towards better conservation, but I reassure my hon. Friend and fishermen in her constituency that we are not happy with the proposal that has been made thus far. We think it requires much more detail and there are certain elements of it to which we are opposed. We will keep her and the House informed at every stage.

[Mr Ben Bradshaw (Exeter) (Lab)]

Will the Minister accept that, however the common fisheries policy is reformed, the biggest threat to fish stocks in our waters and internationally is unsustainable commercial fishing? Given that, what is he doing to ensure that all public procurement of fish in this country, including by this place, is from sustainable sources?

[Richard Benyon]

I am pleased to report, if the right hon. Gentleman has not heard, that the Government are announcing Government buying standards at the highest level, commensurate with the Olympic standard, which is considered to be the relevant level of sustainability. Across Government, we will procure fish only from sustainable sources.

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The hon. Member for Banbury, representing the Church Commissioners, was asked—

[Mr Ben Bradshaw (Exeter) (Lab)]

1. What the authority is for the policy of the Church of England that services of blessing should not be conducted in church premises for those who register civil partnerships.

[The Second Church Estates Commissioner (Tony Baldry)]

In its pastoral statement of July 2005, the House of Bishops affirmed that clergy of the Church of England should not provide services of blessing for those who register a civil partnership. The Church of England’s response to the Government’s consultation document on civil partnerships on religious premises, which was produced earlier this year, reflected that policy and was approved by the Archbishops Council and by the Standing Committee of the House of Bishops.

[Mr Bradshaw]

I am grateful for that reply. Given that when the law changes to allow civil partnerships to be conducted on religious premises many Church of England priests and parishes will want to conduct such ceremonies, would it not be better for the Church of England to do what it did when it first allowed the remarriage of divorcees in church, and allow individual priests and parishes to make the decision?

[Tony Baldry]

In fairness, I would contend that the Church of England, led by its bishops, has to be free to determine its own stance on matters of doctrine and ethics. The Government have said that the new option to register civil partnerships in places of worship must be entirely voluntary. That means that those who think that the Church of England should opt in need to win the argument within the Church.

Waste Review

Ben Bradshaw Excerpts

Tuesday 14th June 2011 Commons Chamber

[Mrs Spelman]

I thank my hon. Friend for a question that obviously shows that he has read the review. He will know that it contains the startling fact that we waste £12 billion-worth of food a year, which we can ill afford to do. We need to work with all involved in food production and packaging to try to minimise the amount of food waste.

[Mr Ben Bradshaw (Exeter) (Lab)]

Why is the right hon. Lady sparing the blushes of the Communities Secretary? Was it not always nonsense for a Government to pay lip service to localism but then to try to force local authorities to reintroduce weekly collections? Will she confirm that most of the local authorities that have alternate weekly collections are Conservative-controlled, and that there is a strong correlation between high recycling rates and alternate weekly collections?

[Mrs Spelman]

It is important to encourage councils to respond to what local people want and need. That is the very essence of localism. Therefore, we will proceed with a new commitment from councils to redouble their efforts to listen and respond to the wishes of their residents on refuse collection.

Water and Sewerage Charges (South West Water)

Ben Bradshaw Excerpts

Wednesday 9th March 2011 Westminster Hall

[Mr Adrian Sanders (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Amess. I have not had the experience before, but it is certainly a pleasure.

Today, I am raising a matter that is of great concern to the people of Devon and Cornwall and has been for as long as I have been a Member of Parliament, and I suspect for longer than any of us here today have represented our local communities. I had the pleasure of raising this issue in an Adjournment debate previously, but this is the first time that I have been able to do so as a Member of Parliament on the Government side of the House. The fact that the problem has remained almost exactly the same for so long is both a reflection of the intractable nature of the issues involved and a sad reflection on the record of previous Administrations. They had time to tackle this injustice, but sadly they were unable to come up with a solution. I sincerely hope that the Minister who is here today will not let our Government follow the same path.

Of course, the problem is the disproportionately high water bills in the south-west. Although the new Ofwat settlement has only just been released, the indication is that the average bill in the region will be £517 a year and the price rise will be about 8.1%. Rather mischievously, Ofwat had initially told the press and the public that the rise would be only about 5%, but that forecast assumed that customers would adapt their behaviour in the future. It is accepted that more people will move to using water meters. Around 70% of water customers in the south-west already have one and Anna Walker predicted that that figure would rise to 80% by 2015. Moving to water meters would save those south-west customers around £400 per year, but the money still has to be found from somewhere. Metered bills will rise in response to the dwindling supply of high-paying unmetered customers, adding more than £200 to the bills of metered customers.

Metering and in-region social tariffs have long been identified by Ofwat and the Government as an easy solution, but they do not have an impact on the underlying problem. Even if one takes the price rise as a 5% average, that is still far too high for most people to cope with in this age of austerity. It is also important to remember that I am talking about average bills. Many of my constituents now face water bills far in excess of £1,000. That reflects a range of circumstances, from medical conditions that require extra water to simply having a larger family. As always, unmetered customers suffer the worst. The average bill of £517 in the south-west compares starkly with the average bill in London, for example, which even for unmetered customers is only £332 per year.

The privatisation of utilities was meant to open up sectors to competition and to empower consumers, but the privatisation of water has done nothing of the sort. Can one imagine the outcry if electricity prices were 60% higher in Newcastle than they are in London? Any electricity company that tried to implement such price disparities would simply see its regional market share evaporate.

Hopefully, we are all aware of the background to this problem. The privatisation of water in the late 1980s left South West Water with a backlog of infrastructure improvements to invest in. Combined with a tiny customer base and a lengthy coastline, that backlog meant that under the system of regional monopolies South West Water customers would pay higher bills in perpetuity, with their only recourse being to move somewhere else in the UK.

For all its inaction, the previous Government at least recognised the problem. The result is Anna Walker’s report on water charging, chapter 14 of which focuses specifically on the south-west. The coalition is about to respond to her report, which again makes this debate timely.

I want to cover briefly three points that are relevant to what is happening now and hopefully the Minister can take them into account when he is developing the final policy on this issue. First, the role of Ofwat needs to be assessed very closely. Ofwat’s role as the regulator must be to protect customers and as Regina Finn, its chief executive, said herself:

“People can shop around for the best deal on many things, but not water. Our job is to do this for them.”

I am afraid that the overwhelming view of my constituents is that that “job” is not being done. Many of them see Ofwat as hindering rather than helping the situation in the south-west. Whereas bills fell slightly ahead of inflation in other areas, the south-west has seen the very large rise that I described.

[Mr Ben Bradshaw (Exeter) (Lab)]

Is not the real scandal of this year’s price increase that customers were assured at the time of the last price review under the Labour Government that there would be reductions in their water bills in this price period? South West Water is hiding behind the current Government’s failure to control inflation. That is a sign of gross insensitivity compared with the situation in, say, local authorities, where everybody else is having their pay frozen.

[Mr Sanders]

I only half-share the right hon. Gentleman’s view, because Ofwat is the body that should protect the consumer and it has allowed South West Water to raise charges by the amounts that I described.

--- Later in debate ---

[Richard Benyon]

My understanding is that that is the figure over the piece. However, I am happy to look into that and give my hon. Friend an absolutely clear and unequivocal answer, because it is important that we know that figure. In her earlier remarks, I think she raised the point about why we use the retail prices index rather than the consumer prices index. [Interruption.] Sorry it was not her; it was my hon. Friend the Member for Torbay. Bills have been tied to inflation since privatisation because, when inflation is higher, water companies’ costs increase. As is the case with other regulators, Ofwat uses RPI. Although RPI was higher than CPI this year, it was actually lower than CPI when last year’s bills were calculated, so average bills that year were lower. We can argue about percentage points, but that is an important factor. Let us take that matter forward in our consultation, which I will come to in a moment.

I am acutely aware that nobody wants to see higher bills, particularly in these tough economic times. However, we should not lose sight of the fact that the money raised will pay for £159 million of investment in the region during the next financial year, which will benefit customers. I know that that sounds trite, and I am not diminishing the effect of the increase, but we must recognise that there are also benefits, including £14 million to improve tap water quality, £10 million to repair crumbling sewers and £28 million to further reduce pollution incidents.

[Mr Bradshaw]

Given the severe squeeze on family incomes, would it not have been better for South West Water to have delayed some of that expensive investment and to have frozen the rise? The Minister seems to be giving the impression that the Government do not bear any responsibility for inflation, but it is, of course, his Government who have let inflation rip.

[Richard Benyon]

I chose to ignore the right hon. Gentleman’s earlier remarks about the Government being responsible for the rise in inflation at a time when commodity prices and oil prices are rising. He only has to read the newspapers to see what is happening to food prices and how that is being influenced by so many other different factors. I think I shall move on, because I simply do not accept his point.

[Mr Bradshaw]

Why is inflation in Britain more than twice as high as it is in Germany?

[Richard Benyon]

We could debate that at great length and talk about our reliance on oil, how that might differ from other countries, where we were working from a year ago and the impact of the previous Government’s activities, of whom he was a part. I will be happy to have that debate at another time but, at the moment, I want to talk about the right hon. Gentleman’s constituents and the impact of the increase in water bills. I also want to talk about the actions that are in my power to take to improve that. I am happy to take any interventions that he may wish to make on that.

We have been carefully considering Ofwat’s final advice in relation to the south-west, which I only received in January. These are difficult issues, and, as has been said, there are no simple solutions. It is essential to ensure that our proposals are workable, fair and affordable, particularly in the current economic climate. We hope to issue our consultation on the Walker review soon, but it is essential that we get this right.

Hon. Members have discussed the differential between metered and unmetered bills. The average bill for a metered household in the south-west is around £400, while the average bill for an unmetered household is around £720. Hon. Members have given examples where both types of bill are considerably higher than those averages. That is because—as we have heard—70% of households in the south-west are metered. Average metered and unmetered bills reflect the estimated water consumption between those households. Unmetered households pay more, because, on average, they use more water than metered households. As hon. Members are aware from previous debates, bills vary between companies. That reflects the cost of providing water and sewerage services in an environmentally sustainable way in different regions with different circumstances.

In all cases, Ofwat—as the independent economic regulator of the water industry—ensures that bills are no higher than they need to be to finance the investment required to provide water and sewerage services. My hon. Friend the Member for Totnes and others have discussed how unfair it is that 3% of the population pay to clean up 30% of the coastline, and I know that that is the prevailing view in the south-west. The Walker review looked closely at whether environmental improvements are public or private goods and who should pay for them. Anna Walker concluded that spending on environmental improvements, such as cleaner beaches, is largely required to make sure that the disposal of sewage does not harm the local environment and that the benefits are mainly local. In particular, having a sewage system and beautiful clean beaches delivers huge benefits to the region through tourism. I know that there are many people—I am one of them—who enjoy the beaches and the coastline, but who do not pay those bills. The complication of trying to devise a scheme where we can hypothecate is something that not just I, but my predecessors and many others in this House, have sought to tackle.

Support is available now for low-income and vulnerable households. Currently, the national WaterSure tariff caps the bills of qualifying households at the average metered bill for their company. Households qualify for WaterSure if they are metered and in receipt of means-tested benefits, and either have three or more children living at home under the age of 19, or someone in the household who has a medical condition that necessitates a high use of water.

Individual cases were raised today. As they were described to me, those people should qualify, but are not receiving WaterSure. I want to take those cases up. My hon. Friend the Member for Totnes raised a case about a multiple sclerosis sufferer. I would like to know whether multiple sclerosis has an increased water requirement, and why that case is not covered by WaterSure. That is something that we may have to look at through the consultation that we are about to undertake.

WaterSure ensures that such households do not cut back on their essential use of water due to fears about the size of their bill. This year, some 31,200 households are benefiting from WaterSure and approximately one in three of those households live in the south-west. We are looking at whether WaterSure should offer a more generous cap, which could cap bills at the lower of the national average metered bill, or the company average metered bill, as recommended by Anna Walker. That would deliver substantially lower bills for those households that live in high-cost areas. We are also looking at whether it would be more fair to share the cost of WaterSure across customers in England, rather than fund WaterSure at the company-specific level. We will be inviting views on that when we publish our Walker consultation.

Some have asked why the Government have not made those changes already. We have been considering them alongside Ofwat’s advice on tackling the problem of high water bills in the south-west. I received Ofwat’s final advice only in January. I am sure that hon. Members agree with me that we must ensure that our proposals are workable, fair and have the support of interested parties. I am determined, as I have said frequently—I make no apologies for saying it again, although I wish that we had got there by now—to get this right.

Forestry (England)

Ben Bradshaw Excerpts

Thursday 17th February 2011 Commons Chamber

[Mr Ben Bradshaw (Exeter) (Lab)]

Did the Prime Minister offer to come and give the Secretary of State his support in executing this humiliating U-turn? As my hon. Friend the Member for Wakefield (Mary Creagh) said, the real problem is that we have a Prime Minister who almost prides himself in not knowing what is going on in Government Departments, and likes to float above everything as a non-executive chairman. It is he who needs to get a grip, not just the Secretary of State.

[Mrs Spelman]

Well, that might have been the right hon. Gentleman’s experience of the previous Prime Minister, but I have spoken to the Prime Minister on a number of occasions over the last few weeks, as it was quite apparent that we were having difficulty with the consultation. I have been very grateful for his support.

Flood Defence Allocations

Ben Bradshaw Excerpts

Wednesday 9th February 2011 Commons Chamber

[Richard Benyon]

We very much want to gear things towards a system where the benefits can be understood by people. That is why the payment-for-outcomes scheme offers so much potential; it offers clarity, for the first time, where the current system is opaque. It will allow communities such as my hon. Friend’s to see where they are in the pecking order, why they are constantly overtaken as our understanding of flood risk management gets better and where they are missing out. Thus, when people and businesses are benefiting, they may choose to contribute and get their scheme above the line. This approach offers her and her constituents a great opportunity.

[Mr Ben Bradshaw (Exeter) (Lab)]

Can the Minister please explain how the cuts that he is being forced to confirm to the House today are consistent with a very clear assurance given by the Prime Minister to this House during Prime Minister’s questions on 17 November? He said that flood defence spending would be “protected” and would be “roughly the same” as under Labour.

[Richard Benyon]

I hope that we will be able to prove at the end of this process that the spending is broadly the same: an 8% cut compared with the previous four years, but with 15% efficiency savings that we think we can get out of the Environment Agency and a greater understanding of how we can deliver. The right hon. Gentleman must agree that what really matters is the outcome: households protected from flooding. I am really confident that at the end of this process we will be able to produce outcomes that are no worse than those in the past and perhaps even better.