Offshore Petroleum Licensing Bill

Debate between Graham Stuart and Barry Gardiner

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Graham Stuart]

It is a pleasure to take part in the debate this afternoon, which has been wide-ranging, well informed and genuinely interesting. I thank Members from across the Committee for their participation and for playing an important role in scrutinising this important piece of legislation.

Before I move on to specific amendments I will, if you allow me, Dame Rosie, briefly outline the importance of this Bill. The UK leads the world on tackling climate change, and is the first major economy to halve emissions. The Bill will protect jobs, tax receipts and sovereign capability, so that we can continue that world leadership. As one of the world’s most decarbonised major economies, the UK remains dependent on oil and gas and will continue to be, albeit in reducing amounts, according to the Climate Change Committee. Even when we are at net zero in 2050, we will require oil and gas. However, we are a net importer and, as has been discussed, UK production is falling fast.

The ambition of the right hon. Member for Doncaster North (Edward Miliband) to destroy UK supply ignores industry, the unions and his own Back Benchers, and would simply replace UK oil and gas with higher-emission imports. That is at the heart of this; that is why we want to pass this legislation—it is because of the policies of the parties opposite. The hon. Member for Angus (Dave Doogan) looks a little confused. The parties opposite are very clear that they want to end new licensing, and we would thus have to import more from abroad. It is as simple as that. That would mean more LNG, which has four times the embedded emissions of domestically produced gas. That is the reality. That is at the heart of the Bill; that is why it is so important that we legislate today to send a signal to industry that continued fast-declining production in the North sea is the right thing to do environmentally, economically, in terms of tax—on every front. If it was not, we should not and would not do it.

[Barry Gardiner]

Will the Minister give way?

[Graham Stuart]

I will make a little more progress.

Annual licensing will improve our energy security and that of our neighbours. It will support 200,000 jobs and safeguard billions in tax revenue and, as my hon. Friend the Member for Banff and Buchan (David Duguid) set out so well, it will safeguard the skills needed for successful energy transition. Hon. Members can listen to everyone from Offshore Energies UK to Robert Gordon University for evidence of the need for that. These things are not in tension; they mutually complement each other and need to be supported.

[Barry Gardiner]

Is the Minister going to give way?

[Graham Stuart]

I promise to come to the hon. Gentleman before I finish.

Turning to the amendments selected today, I first thank my right hon. Friend the Member for Reading West (Sir Alok Sharma) for amendment 12 on flaring and venting. As has been discussed, the guidance from the North Sea Transition Authority is clear that all new developments should be planned on the basis of zero routine flaring and venting. The Government have already committed to ending routine flaring and venting by 2030, going further than the World Bank’s zero routine flaring initiative. That voluntary North sea transition deal is reaping rewards. Based on the latest data, North sea flaring is down 50% since 2018, and the sector is on track to deliver the 2030 target.

I fear that the amendment would risk replacing voluntary momentum with a slower, compliance-based, more resistant approach from industry. However, I will continue to engage with my right hon. Friend as the Bill moves to the other place, with a view to delivering the end of flaring and venting by 2030 at the latest, which is an ambition he and I share, as do the Government.

With that, if the hon. Member for Brent North (Barry Gardiner) has not lost his mojo and his moment, I shall give way to him.

[Barry Gardiner]

I am very grateful to the Minister for giving way, and no—I would not lose my mojo on this. We all know that there is 110% more oil and gas already in the world than we can use if we are to remain within the 1.5°C threshold. Does the Minister think the climate really cares where that oil and gas are used? His argument about imports implies that he does believe that the atmosphere cares. The damage will be done; the only way we can reduce its impact is by ensuring that the proposed additional exploration licences are not achieved.

[Graham Stuart]

I thank the hon. Gentleman for his question. He has taken a long and deep interest in this issue, for which I pay him respect. It is the burning of oil and gas that is the primary issue. He mentions 110%—we probably have 200%, 300% or 400%. There are countries setting out to massively increase their production. That is all driven by demand. If we—as a species, as a globe—are to get to net zero, we will have to cap wells all over the world. We will have to leave it in the ground. The most important thing is to ensure that the demand curve is going in the right direction. Despite all the issues, challenges and difficulties of maintaining our role as the leading major economy in cutting emissions, the UK’s biggest challenge in dealing with climate change is not domestic, despite the difficulty of that; it is to get others to join us on a net zero pathway. The idea of producing our own emissions to ever-lower standards and replacing them with higher-emission products from abroad is for the birds. It makes no sense.

Offshore Petroleum Licensing Bill

Debate between Graham Stuart and Barry Gardiner

2nd reading
Monday 22nd January 2024 Commons Chamber

[Barry Gardiner]

I am well aware of that—of course I am—but the hon. Member will have heard the discussion that took place earlier about global leadership. He will know that other countries around the world are not declining at the required rate, and leadership is about taking a lead.

The logic of drilling for more when the world has already more than it can safely burn is that of the myopic salesman, not the visionary politician, or to use the Prime Minister’s words, it is the logic of the zealot. The Government’s actions are already making the UK a less attractive place for green investment. Three quarters of all North sea oil and gas operators currently invest nothing at all in UK renewables. The largest operator, Harbour Energy, has ruled out such clean investment altogether, yet last year the five oil super-majors—BP, Shell, Chevron, ExxonMobil and TotalEnergies—rewarded their investors with record payouts of more than £79 billion, so we know the money is there to do it.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

Will the hon. Gentleman give way?

[Barry Gardiner]

The Minister is asking whether I will give way. The right hon. Member has long confused the scoring of party political points with the ability to debate an issue to arrive at the truth and get decent policies out the other end. However, if he has changed the habit of a lifetime, I will happily give way to him.

[Graham Stuart]

I thank the hon. Gentleman. He mentioned a specific company, Harbour Energy, and it is absolutely investing in the Viking carbon capture centre and playing a positive role. That is true of the whole oil and gas supply chain in this country, which the hon. Gentleman, if he went to visit them, would find are working right across the energy sector. Weakening one part, as he would with no new licences, would damage the new clean emerging sectors, too.

[Barry Gardiner]

I recognise the work that Harbour Energy is doing and I also recognise the work that the Government have done in trying to attract more investment into green energy and renewables, and I welcome that work. I want us to have a cross-party consensus around getting to net zero. The trouble is that—and the Minister knows this to be true—he and many people on his side, including the Prime Minister, have tried to make this a wedge issue, a political issue to divide people. I think he really does need to step up to the plate. If he wants cross-party consensus, he has to try to build it, not score cheap political points.

COP28

Debate between Graham Stuart and Barry Gardiner

Thursday 14th December 2023 Commons Chamber

[Graham Stuart]

I thank my right hon. Friend, and it was good to see her out in Dubai following up on so many of the issues, not least in recognising the needs of the most vulnerable and the poorest communities and countries around the world to ensure that they are not left behind and that we do have a just transition.

My right hon. Friend highlights the fact that she was a parliamentary delegate there, and we were proud to support GLOBE International UK, of which the hon. Member for Brent North (Barry Gardiner) and I were previous chairs, to provide the first ever parliamentary pavilion at COP28. I pay tribute to Malini Mehra, who has headed up GLOBE. She came in when it was in a troubled position for a promised maximum of six months, and she is still there. She is committed to ensuring that parliamentarians are armed with the information they need.

The answer to my right hon. Friend’s specific question is, yes, absolutely. When we consider that the country that has decarbonised most over the 31 years from 1990 to 2021 has reduced its emissions by 48%—namely, us—and that the world, on a 2019 basis, has to cut by 43% by 2030, with many large emitters pointing in the wrong direction, we can see that the challenge and the gap are not to be underestimated. COP28, with the UAE consensus, is significant, but there is so much more to do, and it has to convert into real change if we are to bend the curve further.

[Barry Gardiner (Brent North) (Lab)]

There is much in the Minister’s statement that I commend and agree with, and in particular I reinforce his praise to our officials who played such a significant part in the negotiations. I regret the tone of some of his responses to colleagues, because the cross-party consensus on this issue over the past 30 years has been fundamentally important to the progress that we have been able to make. The science is clear; the world’s Governments are not. Those who are ready to deliver the transformation required to win the war against climate change are now considering whether the United Nations framework convention on climate change process is capable of delivering it in time. How long does the Minister think it will be before we see coalitions of the willing, such as the Beyond Oil & Gas Alliance, imposing sanctions on those recidivist countries who are still driving our world towards disaster?

[Graham Stuart]

On the coalitions of the willing, the world is changing, and the EU has already legislated for a carbon border adjustment mechanism for selected parts of industry, which will put up a carbon tax or a carbon price at the border. There is a certain intellectual inevitability about that if costs of production in one country are not reflected in others, and ensuring that that is done in a just manner is important. I would hate to look back at COP28 and find that it was one of the last times that countries around the world were able, on the basis of mutual trust, to talk to each other and come to a common agreement. The hon. Gentleman, who is highly experienced in this area, knows just how tender—I am sure there is a better word. The hon. Gentleman knows just how fragile the process could be if we do not all step carefully and ensure that we carry people with us.

Oral Answers to Questions

Debate between Graham Stuart and Barry Gardiner

Tuesday 19th September 2023 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

The Environment Agency’s recent consultation on varying the environmental permit for the Beddington energy recovery plant closed on 1 September. The Environment Agency will carefully consider all relevant responses and issue a final decision in due course.

[Barry Gardiner (Brent North) (Lab)]

In the Select Committee inquiry into preparations for this winter, one of the repeated calls that we have heard from expert witnesses is to support the vulnerable and fuel poor with a social tariff. Will the Minister do that?

Net Zero: 2050 Target

Debate between Graham Stuart and Barry Gardiner

Tuesday 6th June 2023 Westminster Hall

[The Minister for Energy Security and Net Zero (Graham Stuart)]

It is a great pleasure to serve under your chairmanship, Sir Christopher, and to listen to this excellent and important debate. I begin by congratulating my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng) on securing it. Of course, I come to this debate with some trepidation, as I am facing someone who did my job previously and then, unlike me—yet, anyway—went on to be Secretary of State at what was then the Department for Business, Energy and Industrial Strategy. He made immense progress on our path to net zero and energy security

I would not normally be rude, but I hope that the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) can perhaps move on, as we debate more often, from a rather adolescent approach to one that more genuinely engages with the substance. His was not a particularly brilliant contribution to this debate in comparison with those made by other Members, which I thought actually had some substance.

My right hon. Friend the Member for Spelthorne oversaw the publication of the landmark, world-leading net zero strategy. The independent Climate Change Committee described it as

“an ambitious and comprehensive strategy that marks a significant step forward for UK climate policy”

and as

“the world’s most comprehensive plan to reach net zero”.

It is worth highlighting a couple of points. When we came to power in 2010, just 7% of this country’s electricity came from renewables; now it is well over 40%. The issue of insulation and the number of houses being insulated was also raised. I do not know why the Liberal Democrat member who raised it, the hon. Member for Tiverton and Honiton (Richard Foord), is no longer here for the winding-up speeches, but anyway—he raised it before leaving the Chamber. It is worth noting that in 2010 the figure was just 14% and by the end of this year I expect that 50% of homes will have reached energy performance certificate level C or above, which is a huge—indeed, transformative—change, albeit one that needs to go much further and faster.

My right hon. Friend the Member for Spelthorne oversaw COP26, which was the biggest summit that this country has ever hosted. It brought together 120 world leaders and over 38,000 key figures from Governments, civil society, businesses, youth and more, in order to tackle the urgent challenge of climate change. It is also worth noting that we have met all our carbon budgets to date and that we are the first major economy to legislate for net zero—done under this Government. So this country is more on track than almost any other country and certainly more than any major economy on earth. That is the context that people could be forgiven for not realising was in fact the case from the rather adolescent contribution of the Scottish National party spokesman. I will leave to one side any comments that the chairman of the Climate Change Committee has made about the Scottish Government’s performance in meeting their climate targets, because doing otherwise would be to descend to the level that the SNP spokesman stayed at throughout his speech.

[Barry Gardiner]

When the Minister says that this country is “more on track”, does that mean that we are “on track” or that we are just closer to being “on track” than anybody else?

[Graham Stuart]

That is an excellent question—we have exceeded every carbon budget to date. We not only have the net zero strategy but we had the net zero plan on 30 March, setting out how we will do it. Of course that stretches through to 2037. Not every aspect of the way in which we will fulfil that aim has been set out to date—people would not expect them to be 14 years before that date—but we are on track. What we have to do is make sure we stay on track. I would not try to represent to the House today anything other than the fact that it is an extremely challenging business to ensure that we continue on track. That is what we are working on flat-out.

My right hon. Friend the Member for Spelthorne oversaw the publication of the British energy security strategy, which raised greatly the ambition set out in the net zero strategy, and since those documents came out the Government have continued to progress. In March, we published the Powering Up Britain package, which demonstrates that we are on track to reach net zero, and in the net zero growth plan we are bolstering delivery. That plan responds to the expert recommendations made in Mission Zero, the independent review of net zero, to which there has been reference in the debate, which explored how we can achieve net zero in the most pro-growth, pro-business way.

Our net zero ambition needs strong public and private partnership, and we are forging these links in a number of ways. Government policy and funding commitments are already leading to real outcomes, and we are leading the world in so many ways, not just on offshore wind.

The Government are committed to accelerating renewable electricity deployment. The Powering Up Britain package sets out our delivery plans for meeting those ambitions. It includes important announcements on a range of technologies, including up to £160 million of new funding to kick-start our investment in port infrastructure to deliver on our floating offshore wind ambitions, which were referred to earlier, and a new solar taskforce to drive deployment of that important technology as we seek to increase that fivefold by 2035. We launched the taskforce on 25 May, getting key players from Government, industry, regulatory organisations and other relevant organisations round the table to drive forward the actions required to deliver that ambition of deploying 70 GW of domestic and industrial rooftop and ground-mounted solar by 2035, all while cutting installation costs, boosting British skills and jobs, and improving grid access to support a solar power revolution.

[Barry Gardiner]

The Minister rightly refers to the need to improve our electricity supply from solar. Has he looked at the interconnection that is proposed from Morocco to come in at the Hinkley juncture? Are he and the Department now considering a contract for difference, which would enable that contract to go ahead?

[Graham Stuart]

I thank the hon. Gentleman for his question. We are looking at the Xlinks project. We have set up a team to look at it with no further commitment other than to make an assessment. It will be reporting to me shortly on that. We will look at the outline business case going forward. We are looking at it; I do not want to go further—positively or negatively—than saying that.

Sustainable Energy Generation: Burning Trees

Debate between Graham Stuart and Barry Gardiner

Tuesday 6th December 2022 Westminster Hall

[Selaine Saxby]

rose—

[Barry Gardiner]

rose—

[Graham Stuart]

I will make a little more progress, if I may.

It is important to remember that wood used for bioenergy is not high-quality and high-value timber. Although it has been said repeatedly in the debate that wood used for bioenergy diverts material away from other uses, the opposite is true. In response to my hon. Friend the Member for St Ives (Derek Thomas), who comes from the construction industry, the value of timber for other uses is much higher than the value of timber used for waste, so there is no economic rationale for using it.

Wood pellets and Drax purchases do not compete, because they do not offer the same financial return. The idea—it has obviously been seeded, taken root and taken off, because I hear it again and again—that people are, in a sinister way, diverting excellent wood from uses for which they would get paid a lot more money to a use for which they get paid a lot less has spread, and it has become a conspiracy. In fact, bioenergy use does the opposite: it supports sustainable forestry. It supports the very forests that can supply wood panelling and construction material. We can ensure that it is part and parcel of delivering a stronger forestry industry around the world, and that we can have more wooden-constructed homes, as my hon. Friend the Member for St Ives suggested we should have.

[Barry Gardiner]

I am sorry to interrupt the Minister in his rhetorical flow, but does he accept that two of the licences that Drax has utilised in British Colombia were for areas of primary forest that have been destroyed? Those areas—in one case, more than one square mile of primary forest—have been clear-felled, and Drax has denied it.

[Graham Stuart]

I will write to the hon. Gentleman on that specific issue, as it is right that I give him a proper answer. On investigation, we do not find that the allegations that “Panorama” made are fundamentally sustained. The general process involves thinnings. Every managed forest has to be thinned in order to be sustainably managed, and thinnings sometimes include whole trees—that is the nature of forest management. If we do not do it, it does not have the desired effect. It is worth saying again to my hon. Friend the Member for North Devon that young, vigorous stands grow and sequester carbon at maximum speed. As stands get older, the tree canopy closes and individual trees begin to die off from self-thinning and other causes. Very old forest stands can reach a carbon-neutral equilibrium, whereby trees die and decay at approximately the same rate as they grow back.

It is worth saying that before thinnings were used for bioenergy and turned into pellets, they were typically burned to get rid of them. The idea that the use of biomass is taking away fundamental primary forest, which is being cut down even though there are better uses for it, is false, but I will write to the hon. Member for Brent North (Barry Gardiner) about the specifics of that. It is always possible that there are exceptions, but Canada and the United States have really strong forest management and sustainability practices, regulations and laws. We have looked closely at the issue, and if they wish to keep this business going and manage the crops of these forests, they have every incentive to maintain them.

I say to my hon. Friend the Member for North Devon that we could do with bringing in some experts, and I will hold a meeting. Let us have the scientists in and discuss some of this stuff—it would be an opportunity to talk about it further.

--- Later in debate ---

[Graham Stuart]

I entirely agree with my hon. Friend. We must not get stuck in the past, and we need to have a thorough and proper examination of the issues. That is why, as one small contribution to that, bringing in the Government experts and the people we are listening to would be a useful way to carry on with this and make sure that we are making the right judgments overall. The last thing we want to do is get this wrong. As successive Members have said, there is a substantial subsidy involved for a start, and we want to ensure that whatever we are doing is the most sustainable, both economically and environmentally, for the good of the country. It is well worth having that conversation.

Forest sites are harvested to produce fibre for multiple products, such as timber, plywood and oriented strand board, among others. Those industries invariably pay more for the fibre. Wood pellets for bioenergy make up only a small portion of a harvest—notwithstanding the talk of 27 million trees—and help to maximise the benefit of each harvest. It is, effectively, a harvest—an energy crop, and a by-product energy crop of the main product, which is timber produced for other uses.

Material that is not wanted by sawmills can be used when it does not have a suitable destination in the sourcing regions—for example, when there is a lack of local pulp and paper mills or other suitable industries. The destination of lower-quality material such as low-grade roundwood that is unsuitable for use in sawmills depends on the types of industry present around the sourcing area. If there is a pulp or paper mill nearby or a wood panel producer, material suitable for use in those industries is taken there, as those end users pay more for the fibre than wood pellet producers do. It is simply not economical for the harvester to sell those materials to the pellet mill if other, higher-paying industries are present.

[Barry Gardiner]

rose—

[Graham Stuart]

I give way, for the last time, I think.

[Barry Gardiner]

The Minister has been generous in giving way, and I appreciate that. Will he address an issue that many Members have raised, which is the payback period and the cycles not being short enough to achieve the emissions reductions in the timeframe that the climate will allow?

[Graham Stuart]

The hon. Gentleman, as so often, has put his finger on the central point. We cannot do this by looking at an individual tree. We look at the whole forest and different parts of it, which are of different ages. That forest is harvested in an ordered way. We need to look at the whole forest, and as long as there is replanting—that is precisely what the sustainability criteria are about, and those are applied in Canada, America and elsewhere—and the overall carbon sequestration is maintained, and indeed over time preferably increased, there are no emissions, effectively.

Let me return to the point source emissions at Drax and say that that is why we do not count them. As long as the overall picture is in balance—this is only a by-product of the energy crop and of the main use, which is for timber—we can see, straightforwardly, that it is right not to view that as having emissions. That is what the policies are in place to try to ensure.

I must allow two minutes for my hon. Friend the Member for North Devon, and I look forward to a further discussion of the matter. As has been said, I have been in the job for only a relatively short time, and, as Members can tell, I am seized of a certain view, but I am certainly interested—

Oral Answers to Questions

Debate between Graham Stuart and Barry Gardiner

Tuesday 25th October 2022 Commons Chamber

[Graham Stuart]

We have an assessment process for all new licences to look at that and see its overall impact.

[Barry Gardiner (Brent North) (Lab)]

T8. The Minister accused this side of the House of misrepresenting the figures on climate change, but it is the independent Climate Change Committee that says that the Government are not on track to achieve net zero and that 61% of their own targets for emission reductions have no credible plan in place to achieve them. Is the committee also misrepresenting the facts?

[Graham Stuart]

We are on track. [Interruption.] We are on track and we are focused on delivering that. The margins are tighter than we would like, but we are on track, we have delivered to date and we will deliver in future.

Energy Prices Bill

Debate between Graham Stuart and Barry Gardiner

Committee stage
Monday 17th October 2022 Commons Chamber

[Graham Stuart]

I have so much to do and a duty to cover as much as I can, having agreed not to go on too long.

New clause 9 aims to remove regional variations from standing charges. Ofgem, which is responsible for the network charging regime, is considering that matter and we should not pre-empt the review’s outcome in the Bill.

Amendments 2 and 3 aim to enable the backdating of the gas price reduction scheme in Great Britain to begin from 8 September. The Government have designed the scheme to work in combination with the 22 May cost of living package to which I referred. That ensures that the most vulnerable households will see little change in their energy between last winter and this. I therefore do not see any need to alter the operative date of the energy price guarantee schemes.

I move on to amendments 19, 17, 18 and 7, new clause 5 and amendment 5 on the energy bill relief scheme. On amendments 17 and 19, the Government fully intend to introduce regulations under clause 9 and we expect them to be laid in Parliament by the beginning of November. I have committed to publishing a review of the scheme in three months.

[Barry Gardiner]

Will the Minister give way?

[Graham Stuart]

If the hon. Gentleman will allow me, I will try to cover—

[Barry Gardiner]

The Minister did actually refer to me.

[Graham Stuart]

Indeed. On amendments 5 and 7, I am pleased to note that the hon. Members for North Shropshire (Helen Morgan) and for Richmond Park (Sarah Olney) agree with my decision to extend the eligibility date for customers on fixed-term contracts back to 1 December 2021. I hope that they also welcome our commitment to review the scheme, and I hope that that will please the hon. Member for Brent North.

[Barry Gardiner]

Will the Minister give way?

[David Linden]

Will the Minister give way?

--- Later in debate ---

[Alan Brown]

Will the Minister give way?

[Barry Gardiner]

Will the Minister give way?

[Graham Stuart]

I will not. Amendments 6 and 9 and new clause 12 would require equivalent support for domestic and non-domestic consumers. We have committed to providing equivalent support for consumers on alternative fuels. The Secretary of State has said that he will put the workings in the Library, and I appeal to hon. Members on both sides of the Committee to recognise that the support is comparable. It is therefore important not to tell those who are off-grid that they are not getting comparable support when indeed they are.

[Barry Gardiner]

On a point of order, Mr Evans. Will you confirm that when a Minister, or indeed, any Member of Parliament, refers by name to another Member, it is courtesy and normal practice to allow them to respond to the point that was made? Indeed, in this case, the Minister talked about me doing more, as a Minister in the Labour Government, on ensuring that we had insulation. However, he seems to forget that in 2013, his Government cut that by 92%—

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. The hon. Gentleman is doing an intervention now. Is the Minister giving way?

Oral Answers to Questions

Debate between Graham Stuart and Barry Gardiner

Thursday 17th October 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

I congratulate my hon. Friend on working so hard to promote businesses in his area. I am delighted that our performance in dealing with licence applications is good, and I pay tribute to those who work in the Export Control Joint Unit. Some 80% of applications are concluded within 20 days, and 96% within 60 days. In some cases, complex issues have to be assessed, but we will do everything that we can to facilitate and accelerate the decision on the case raised by my hon. Friend.

[Barry Gardiner (Brent North) (Lab)]

The House recently passed a statutory instrument to extend EU protection against extraterritorial lawsuits under the US Helms-Burton Act. The Secretary of State will know that investors are already speaking with law firms to launch dispute proceedings against the UK under long dormant bilateral treaties. What estimates has she made of the quantum of such suits, and what protections will she introduce to safeguard the public purse and public policy?

Future Free Trade Agreements

Debate between Graham Stuart and Barry Gardiner

Thursday 21st February 2019 Commons Chamber

[Graham Stuart]

First, I should say that parliamentarians will continue to be able to inform the negotiations. Parliament will be updated regularly as the negotiations progress, and it will be Parliament, through the process set out in the Constitutional Reform and Governance Act 2010, which was passed by the Labour party, that will ultimately play its role in the ratification of any new FTA.

[Barry Gardiner]

Will the Minister give way?

[Graham Stuart]

I will not.

Both Houses will be fully involved as we balance meaningful scrutiny with the security necessary to protect sensitive negotiating positions and market-sensitive data. Having reflected on the contributions in this debate, including those of the hon. Member for Dundee East (Stewart Hosie), we will return with more detailed proposals shortly, ahead of the next stage of the Trade Bill.

As I said, we have had interesting contributions from Government and Opposition Members. I shall pick on some. The right hon. Member for Warley (John Spellar) noted in an intervention that he fully accepts that there is no threat to the NHS from the potential trade deals. He has accepted that we are not going to let that happen. I hope that Opposition Members, who have, like me, heard the concerns of many constituents on that front, can not only bring those concerns to the House but help to allay them. If there is a genuine issue, it is worth looking at it, but if there is not, we do not want false fears. There are enough real challenges facing us without spectral ones being introduced as well.

The issue of developing countries and what more we can do was touched on by Members on both sides of the House. One Opposition Member—I cannot remember who it was—sounded rather sceptical, saying that we might go backwards in that regard. I think that there is a real opportunity to go forward. As the Secretary of State has said, bringing trade and development together is really important if we are to help people out of poverty. Ultimately, trade, not aid is the way out of poverty. Therefore, the issues that have been raised here, not least about coffee and other such products, are about making sure that poorer countries can add value in their country and then sell into the UK. That is the kind of forward-looking policy that we have in mind.

Market access was also touched on. While we are talking about these big flagship trade deals, more advantage could well be had by targeting smaller market access issues. We heard about the pork industry earlier, and we could mention the opening up of Taiwan and China to pork. It has made an enormous difference to the pork industry in this country. There is an opportunity to do much more in many other areas, not least in the new digital and data-related areas as well.

The hon. Member for Swansea West (Geraint Davies) did his usual gloom routine. I really do not understand how such a dynamic and forward-looking area as Swansea can be represented by someone who is so down on this country and its future prospects. I really hope that, at some point, he will cheer up and recognise that there is an upside, and that every cloud does have a silver lining.

The hon. Member for Brent North (Barry Gardiner) mentioned differences between the EU mandate and our own. We will set out our plans and a scoping document in due course. As I have said, we really are committed to making sure that this House and, as broadly as possible, civil society and certainly the devolved Administrations can be included, and we will be having that inter-ministerial forum as well.

[Barry Gardiner]

rose—

[Graham Stuart]

I will give way to the shadow Secretary of State.

[Barry Gardiner]

I just wanted to say thank you.

[Graham Stuart]

Excellent. That is delightful.

I have been speaking for eight minutes so far, and will seek to stay within the time. My hon. Friend the Member for Mole Valley (Sir Paul Beresford) was informative, fascinating and interesting when he talked about the scale of farms. Agriculture was raised in the debate. There is a balancing act to be done between looking after consumers and making sure that we look after the beautiful countryside, not least in the north-east of England, but in the rest of the country as well. If there are to be any changes—liberalisation, for example—they need to be done in a sensible way that maximises the potential upsides and minimises any downsides to any losers.

The Chairman of the Select Committee, the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), said that we needed to carry Parliament with us, and he is absolutely right. In talking about winners and losers, he mentioned compensation for areas that lose out. By having a central Treasury, this country makes sure that we provide a counterbalance between those areas that do less well and those areas that do better. I point to the behaviour of the Department for International Trade. As the Minister responsible for investment, my job is to lead the investment team. [Interruption.] Well, the shadow Minister, the hon. Member for Sefton Central (Bill Esterson), seems to invent facts rather than actually access them. If he looks at the latest numbers from the United Nations Conference on Trade and Development, probably the most respected ones globally, he will see that they suggest that, while global foreign direct investment fell markedly last year, that in the EU fell even more, and the UK—despite that—went up by 20%. So there is little truth in the suggestion, which we hear so often from the Opposition, that somehow things are going downhill. We have more people in work than ever before, more disabled people in work than ever before, rising wages and lower inflation. The truth is that we have fewer unemployed young people than at any time in our history. This is good news. Trying to talk the country down about both its future and its present may be a standard Opposition tactic, but, in the current circumstances, it is, frankly, disingenuous.

Oral Answers to Questions

Debate between Graham Stuart and Barry Gardiner

Thursday 15th November 2018 Commons Chamber

[Graham Stuart]

I am glad to confirm to my hon. Friend that our stock of foreign direct investment has gone up. We remain the No. 1 destination in Europe and are seeing companies in so many sectors coming here. Investors have some concerns about Brexit but, as I have said, what they are really alarmed about is the prospect of Labour seizing their assets and destroying the job creation that investment brings.

[Barry Gardiner (Brent North) (Lab)]

May I associate myself with the Secretary of State’s remarks about Sir Jeremy Heywood?

I was delighted, if somewhat surprised, to see the Secretary of State at the Dispatch Box this morning. He and his Ministers have talked about a record number of FDI investments in the last full year, 2017, but he knows that, in value, it was actually the worst year for inward investment since 1994. Complacently, he celebrates the forecast by the United Nations Conference on Trade and Development for the first half of 2018, but he knows that the UNCTAD report states that this reflects

“a surge in intra-firm loans”.

These are loans that are often used to minimise tax by creating an artificial debt shield and they create no new jobs in the UK. How many such intra-firm loans are in the FDI statistics, and what assessment has the Minister made of the reduction in tax receipts to the Exchequer as a result?

[Graham Stuart]

The UNCTAD figures that measure foreign direct investment showed the UK moving above the United States into third in the first six months of this year, but the hon. Gentleman is entirely right to say that they include intra-company loans. Any figures around flow should be treated with caution; the most important thing is the stock of foreign direct investment in this country. As my hon. Friend the Member for Kettering (Mr Hollobone) said, if we had listened to some, we would have expected divestment. There was no divestment; there were increases in investment. In the last year, if I may deal with what is most important to me and my constituents, there were 75,000 new jobs created by foreign direct investment.

Humber Flood Risk Management Strategy

Debate between Graham Stuart and Barry Gardiner

Tuesday 1st July 2014 Westminster Hall

[Mr Graham Stuart]

Will the hon. Gentleman give way?

[Barry Gardiner]

I am conscious that the Minister needs to speak, so if the hon. Gentleman will forgive me, I will not give way.

Last week, the outgoing head of the Environment Agency used a speech at the RSA—the Royal Society for the encouragement of Arts, Manufactures and Commerce—to call for cross-party consensus of the kind that we have seen this morning. That is what we had with the Pitt review: an approach that focused on building the capacity for strategic intervention. There were 92 recommendations, but only 46 were implemented. That approach, however, saw improvements implemented at Brough, Swinefleet, Burringham, Gunness, Stallingborough and Halton Marshes.

Since 2010 many of the projects named in the Humber flood risk management strategy have become stuck in the pipeline, because Government cuts have closed off, and in some cases indefinitely delayed, the available funding for essential projects. Examples include the Sutton Ings flood alleviation scheme, a sustainable drainage retrofit that would have protected an area of central Hull in which there are 2,982 homes at significant risk of flooding. The Ulceby flood alleviation scheme would have protected an area of Grimsby in which 2,164 homes are at significant risk of flooding. We urgently need to get back to an evidence-based flood management policy that all parties in the House can support. Nothing else will deliver the risk management strategy required for the Humber.

Natural Capital (England and Wales)

Debate between Graham Stuart and Barry Gardiner

Monday 21st October 2013 Commons Chamber

[Barry Gardiner]

The hon. Lady, whose chairmanship of the Select Committee is redoubtable, is absolutely right that that is clear in certain Departments but not in others. The way we value the input, as a number of Members have already indicated, is precisely the way contained in the natural capital committee’s first report to Parliament. The first thing we have to do—I will move on to this in more detail a little later—is to get each Department to create an inventory stating what capital it owns, what capital it affects and what capital it influences. Once we get Departments to look at it in that way, they can feed that into the Treasury so that better cost-benefit analysis is done and better economic decisions and policies are made.

Some of our political colleagues act as if they are still living in the 19th century. They believe that economic prosperity and environmental protection are destined to be in conflict with each other, but in fact the opposite is true. In 2011 the green economy made up just 6% of the economy, but it accounted for 30% of all growth.

Those on the economic right fall into the trap of thinking that the environment is the enemy of growth, but it is not. Their conclusion is that we must sacrifice the environment in order to achieve growth. But for those of us on the economic left there is an equivalent trap. Some on the left actually seem to agree with the economic right. Their claim is simply put the other way around: that economic growth is the enemy of the environment. Their conclusion is that we must sacrifice growth to achieve environmental protection. Both are wrong, of course, and they are wrong because they are locked into the same language of economic growth and environmental protection. They have failed to move into the new paradigm of economic wealth and environmental sustainability. There is a reason for that: the new paradigm requires a proper understanding of the value of natural capital, and not just an understanding of it, but a proper accounting of it.

What competent business would fail to carry out a proper inventory of its assets? Yet that is precisely what we as a country have done. We have not looked at the stocks and flows of natural capital and properly assessed them. In the UK we are beginning to introduce a fundamental change in environmental policy. Instead of focusing on individual species or habitats, we are pioneering an approach based on whole ecosystems. We commissioned the UK’s national ecosystem assessment, which has established that 30% of the UK’s ecosystems are in decline and that many others are only just holding their own against an increasingly hostile background of rising population, consumption and pollution. However, the Government have not yet taken the important step of instructing all Departments to create an inventory of the natural capital assets they own, utilise and affect. The Minister should speak to his colleagues in Government to ensure that that happens.

Quantifying the problem is the beginning of a solution. In the national ecosystem assessment, we have begun to put a value on the contribution of ecosystem goods and services to human well-being. The market has long known how to exploit the benefits of nature, whether by dumping waste at sea or chopping down rainforests with no thought for the wider damage that it was doing. But now, the most progressive businesses are beginning to understand the importance of sustainable supply chains. They are beginning to see the business imperative to reduce their own corporate risk profile and are now seeing genuine advantage in being net positive for the environment.

The establishment of the natural capital committee in response to the United Nations convention to combat desertification conference of the parties in Nagoya in 2010 is a significant and positive move on the part of the Government. I welcome it. I pay tribute to the right hon. Member for Meriden for how she steered the issue through Government. She also established that the committee should report to the economic sub-committee of the Cabinet. Her officials had put to her that it should report to her as Secretary of State, but she decided that it should report elsewhere, knowing full well that a Secretary of State for Environment, Food and Rural Affairs was perhaps less powerful than the Chancellor of the Exchequer. She played a significant role in ensuring that the natural capital committee had the prospect of real success and traction. My hon. Friend the Member for Stoke-on-Trent North (Joan Walley) was entirely right to say that we should also have had a Treasury Minister on the Front Bench this evening.

[Mr Graham Stuart]

The hon. Gentleman no doubt anticipates what I am about to say. He agrees that there should have been a Treasury Minister on the Front Bench tonight. It would also have been extremely helpful if Her Majesty’s Opposition had managed to get a shadow Treasury Minister, who are a great deal less busy than actual Treasury Ministers, to join us.

[Barry Gardiner]

I heartily endorse that. I will ensure that all these remarks are conveyed to my colleagues on the shadow Treasury Front Bench. I give the hon. Gentleman the commitment that they will get copies of my speech.

Having a Treasury Minister here would have truly shown that the Government were not just paying lip service to the idea of natural capital but were listening to the recommendations of the natural capital committee— namely, that the Government should establish a framework to measure and account better for changes in natural capital assets, and to improve the valuation of those changes and how they are fed into policy decisions.

The natural capital committee points out that the Government need to establish a risk register for natural capital assets that will clearly identify potential resource constraints or tipping points that may arise from the further degradation of our biodiversity. It insists that the implications for business supply chains from the loss of key natural resources must become a fundamental part of national economic planning. It recommends that the Office for National Statistics should include natural capital fully in the UK’s environmental accounts and that we should be working with business to develop guidance on corporate natural capital accounting.

I pay particular tribute to the work conducted by the Prince of Wales’s accounting for sustainability project. A4S has worked with strategic corporate partners to identify $72 trillion of resources and environmental services that classically have been omitted from corporate balance sheets around the globe, to enable those businesses better to understand the risks to their own supply chains and ultimately their future sustainability unless they change their business model for one that respects and properly values natural capital.

The Government should follow the prince’s initiative in involving business in accounting for natural capital. Will the Minister say whether he agrees with the suggestion of asking companies to prepare annual corporate sustainability reports for shareholders as part of their reporting cycle, in line with the business-led corporate sustainability reporting coalition’s recommendations?

Let me say this loud and clear: some things are beyond price. Some values cannot be monetised. It is not just that the aesthetic and spiritual values of a mountain are difficult to quantify; we should not even try. We must recognise that those values should not be traded in any market. They are not directly comparable and we must not attempt to compare them on a like-for-like basis in any cost-benefit analysis. However, to recognise that is not to accede to the demands of the fundamentalists of both right and left that we should not sensibly ascribe a value to the mountain for the tourism benefits that it generates or the watershed services that it provides. These are real economic values and we conduct our policy decision making in wilful and deliberate ignorance if we ignore them. This is not to commoditise nature; it is to ensure that the true value of nature is not ignored and treated as a free good by those who for decades have peddled a false theory of value that has allowed them to trash the environment with impunity.

The proper valuation of our natural capital is a means to its better protection, not a tariff sheet of charges for its destruction. The Secretary of State recently made several remarks that are deeply worrying because they have implied precisely the opposite. In his speech to the Association of National Park Authorities last month, he suggested that the protection of our finest countryside could be traded away to the highest bidder. This is quite simply a disgrace, and an ignorant one at that. Anyone with the slightest understanding of biodiversity offsetting knows that there is a hierarchy of principles that it must follow, foremost among which is that offsetting cannot downgrade or amend the existing levels of protection for biodiversity. The Secretary of State, by his ignorant, unscientific and dogma-driven approach, has shown himself to be incapable of leading the Government’s important work on natural capital and has probably done more to undermine the undoubted benefits that could flow from a proper system of biodiversity offsetting than any of the open-toed-sandal anti-development campaigners whom he so clearly despises .

I am delighted that the hon. Member for Beverley and Holderness mentioned the work of the UN Statistical Commission on the system of environmental economic accounting. The UN has adopted SEEA as a new international accounting standard. It is important for the Minister to indicate to the House the Government’s commitment to develop the SEEA proposals and incorporate natural capital fully into their accounting framework by 2020.

I am also delighted that the hon. Gentleman mentioned the work of GLOBE International and its excellent natural capital initiative. I had the honour of chairing the national capital legislation summit that he mentioned which took place in the Bundestag this summer. I agree with the importance that he placed on incorporating natural capital into the first 2015 sustainable development goals. I should like to put on record my thanks and appreciation for the support of the German Government, who have consistently, and with great vision, understood the importance of this work in tackling global poverty as well as in addressing issues of climate change and biodiversity.

It has long been a fundamental principle that the polluter should pay. All too often, though, the polluter has got away with it because nobody has been able to answer the question, “How much?” In the UK we have set up the natural capital committee to ensure that the market and the non-market values of the public goods that nature provides are taken into account in all policy decision making. Our goal must be to incorporate these values into the standard Treasury method of cost-benefit analysis, our purpose being to stop those who seek to exploit the goods and services that nature provides by diminishing her continued ability to provide the essential ecosystem services and public goods that the rest of society needs.

The state of natural capital in the UK is at a critical point. Thirty per cent. of it is in decline, and action now is essential. The natural capital committee has produced an important report, but the Government must listen to what it says and implement its recommendations.

Finance Bill

Debate between Graham Stuart and Barry Gardiner

Monday 2nd July 2012 Commons Chamber

[Barry Gardiner]

I am sure that it is only a matter of time. In so far as the hon. Gentleman seeks to speak for his party—

[Mr Graham Stuart]

Does he?

[Barry Gardiner]

I do not want to see dissent break out on the Government Benches. No fighting amongst yourselves, please, gentlemen. These are serious matters. They cannot be treated as an experiment because people suffer.

Flood and Water Management

Debate between Graham Stuart and Barry Gardiner

Thursday 8th September 2011 Westminster Hall

[Barry Gardiner (Brent North) (Lab)]

I am delighted to speak in the debate, and congratulate the hon. Member for Thirsk and Malton (Miss McIntosh) on initiating it. She chairs the Select Committee with great aplomb, and I know that the matter is exceptionally dear to her heart. I was surprised only that she curtailed her remarks as she did. I expected at least an hour from her.

I look forward most of all in the debate to hearing from the Minister about the progress that has been made since the Government responded to the Committee earlier in the year. The Committee’s report was published last year following a series of welcome and ambitious commitments from the Government: safeguarding clean, reliable and affordable water supplies; protecting households and property from the risk of flooding; and reforming the water industry and making it more resilient, efficient, sustainable, innovative and affordable. The report provided the Government with a comprehensive and holistic approach to delivering on those commitments. Of course we should, in this debate, be assessing the progress that has been made. Instead, I am afraid we must reflect on a number of broken promises and missed opportunities.

A water White Paper was promised for June. In April the Minister revised that commitment and promised that it would be published in the autumn. Unfortunately, the latest business plan of the Department for Environment, Food and Rural Affairs now promises publication in December, nine months after the Committee’s report, and we are still no clearer on how the Government plans will encourage the retrofitting of sustainable drainage systems, how they will ensure that customers’ views will be taken into account during the price review process, and how investment in the water industry will be better managed to avoid the boom and bust cycle that so badly harms the supply chain. There is also uncertainty about the future of metering and water efficiency in households, social tariffs to reduce the impact of rising bills on low-income customers and the future of competition in the water industry. Publication in December would leave only four months for the Government to meet their commitment to introduce any new legislation required as a result of the White Paper by next April. I hope that the Government’s ambition will not be scaled back in the fight against a tight time scale.

Since our report, the Government have also severely cut capital funding for flood defences. When we consider that we need to increase investment simply to maintain the current level of protection, that is cause for considerable concern. As the Committee pointed out:

“To cut back significantly on flood defence infrastructure spending could be a classic example of short-term savings leading to much greater long-term costs.”

The Government have also failed to provide any assurance on the provision of flood insurance beyond 2013. The natural environment White Paper, which was excellent in many ways—we adverted to some of it earlier in the debate—also missed a valuable opportunity to set out how, for example, agriculture and land management could play a stronger role in reducing flood risk and improving water quality. I hope that the Minister will take the opportunity to update us on each of those issues, so that we may leave this afternoon’s debate with a much clearer idea of Government policy on the future of flood and water management. I shall try to deal with each of those issues.

I also want to discuss some of the priorities for the forthcoming White Paper. Ever since privatisation, capital expenditure in the water industry has been concentrated towards the middle of the five-year funding cycle. That has led to financial and managerial inefficiencies in addition to instability in the supply chain, ultimately resulting in higher costs for consumers. It also leads to the migration of skilled resources out of the sector to more stable industries. That has created a severe and worsening skills shortage in the water industry.

The White Paper must help to bring to an end the effect of that five-year asset management planning cycle. It should also explore the link between the price review and innovation. In the current investment period, companies are looking for tried and tested technologies with payback within three years. Some water companies have disbanded their research and development departments as they are not currently funded by the price review. R and D is now conducted on an ad hoc basis rather than in a co-ordinated way.

The water sector faces a period of huge challenge in coping with the implications of climate change, and in reducing its own carbon emissions. It can ill afford to be locked into a short-term investment cycle that stifles and inhibits innovation. The White Paper must set out how the Government will restructure the water industry properly to incentivise and encourage companies to invest in innovation, particularly in treatment processing, energy efficiency, leakage prevention, and water efficiency.

Competition can help to stimulate that innovation. Competition in the water industry is not an end in itself, but it is a means of improving services for customers, particularly the most vulnerable, and improving environmental outcomes.

In the White Paper, the Government gave a commitment to respond to the Cave review, and I would welcome an update from the Minister on how the White Paper will ensure that greater competition will meet those challenges. It would be helpful if the Minister clarified whether the Government’s one-in, one-out rule, which prevents a regulation from being introduced unless another is scrapped, will apply to any legislation proposed in the White Paper. If so, perhaps he will share the Department’s thinking on which regulations might be scrapped in the event of any legislation coming forward in April 2012.

We talked much about sustainable drainage systems in another area on which the Government gave a commitment in the White Paper. When sustainable drainage systems are successfully implemented, they can make a significant contribution to reducing the risk of flooding by increasing the capacity of land to absorb water. They can also reduce the risk of water contamination, and increase the sustainability of water use. The provision of SUDS for new developments and, where possible, for existing developments is widely supported throughout the House. However, evidence to the inquiry revealed widespread concern among local authorities about their ability to fund the adoption and maintenance of SUDS. The Government’s response to the Committee stated that DEFRA would fund local authorities for the costs of maintaining adopted SUDS and SUDS maintenance in the “short term.” Will the Minister say how long he expects that “short term” to be? That is important for local authorities.

In November, the Prime Minister said that flood defence spending would be protected, and would be “roughly the same” as under Labour. In fact, capital funding for flood defences to protect homes has fallen from a baseline figure last year of £354 million to £259 million. We now know the meaning of the phrase, “roughly the same”. It means give or take 30% according to my mathematics. In fact, it is a 27% cash cut to the budget, and a 32% real-terms cut when inflation is taken into account.

[Mr Graham Stuart]

After the floods in 2000, the then Prime Minister, Tony Blair, had people from Norfolk and other areas to No. 10 Downing street and made expansive commitments on flood protection. However, the pressures of political life being what they are, flooding moved out of the spotlight and those promises disappeared along with the floodwater. It is an historic happening for Governments slowly to cut long-term infrastructure investment when it is not in the spotlight. Does the hon. Gentleman have any thoughts on how to create a long-term sustainable structure which, regardless of the political cycle, ensures that our constituents are properly protected from flooding?

[Barry Gardiner]

The hon. Gentleman points out that at various periods during the previous Labour Administration the flood budget was raided, but he must acknowledge that overall there was both a real-terms and a cash increase in that budget. He is absolutely right that from time to time that budget was raided and cut as necessary in the political cycle, but overall it was increased. The Minister knows that I have the greatest respect for him and the work that he is trying to do in this area, and I know that he understands the importance of the matter. The hon. Member for Beverley and Holderness (Mr Stuart) talked about small cuts, but this is not a small cut. It is a 27% cash, or a 32% real-terms cut in this period. That is a huge amount.

[Mr Graham Stuart]

The hon. Gentleman is being generous in giving way. I was not trying to suggest that he is not being proper in challenging the Government. My point is that historically Governments tend to raid the flood budget when under the pressure that they inevitably suffer. The last Government was much better at spending money than the present one, but it turned out that so much of that money could not be sustained, and we could not afford it. He should not boast about that too much. What we should focus on is how to create a long-term situation so that whoever is in government and whatever the state of public finances our constituents will have a guarantee that that political cycle will not get in the way of sensible, stable support for flood defence in their homes.

[Barry Gardiner]

I absolutely agree with the hon. Gentleman. We have talked about introducing minimum standards, and we must move towards consensus, because that is in everyone’s interest.

The Government have given a commitment to deliver 15% efficiency savings in Environment Agency flood defence budgets, but that leaves an overall reduction in those budgets of 17%. I would be grateful if the Minister provided us with an update of his assessment of the impact of that reduced funding settlement in relation to the Government’s flood programme, and the flood defence work that the Environment Agency has programmed for the next three years. Will he also provide an indication of how the 15% of efficiency savings in the Environment Agency has impacted on that work?

Despite those funding reductions, the Committee noted the Government’s commitment fully to fund local authorities in their new roles under the Flood and Water Management Act 2010, and that they would provide direct grants of up to £36 million a year to lead local flood authorities. That is welcome. Each lead local flood authority would receive at least £110,000 a year, with the authorities tackling the highest levels of local risk receiving up to £750,000 a year. However, the communities and local government special grants settlement for 2011-12 highlights that the most that any lead local flood authority received this year was not £750,000, but £260,000—that was in Kent. Of the 152 lead local flood authorities, 144 received less than £200,000. To allow for local flexibility, those grants are not ring-fenced. On average, central Government funding to councils will fall by 26% over the next four years. I understand the constraint under which the Government are operating.

[Mr Graham Stuart]

The hon. Gentleman’s party created them.

[Barry Gardiner]

Indeed, I take on board the party political knockabout that we can have. Local authorities have been put in an extremely difficult position. By not ring-fencing the funds, the Government cannot be sure that they will go into flood defences. It is therefore important to find out from the Minister how the Government plan to review local authority spend on flood management, and how they propose to hold local authorities to account for the money they have been given to spend in that area.

I acknowledge that that is not just a matter for central and local government. The Committee concluded that it was right for beneficiaries such as developers to help fund new flood defence schemes. In light of that, will the Minister confirm how funding through the new flood and coastal resilience partnership funding arrangement will be focused on those communities at greatest risk? How will the Government identify those communities and ensure that their protection is achieved in practice? As discussed earlier, the Government’s draft national planning policy framework should also be amended to address how planning should apportion the costs of providing flood defences for new developments between public agencies and private beneficiaries.

The Labour Government’s statement of principles guaranteed universal flood insurance coverage for homes in affected areas. That guarantee runs out in 2013, and was based on the understanding, following the Pitt review, that Government should have

“above inflation settlements for future spending rounds.”.

We know that that will no longer be the case.

The Government’s response to the Committee’s report committed to updating the Committee on progress with implementing

“a roadmap to take us beyond 2013.”

I would be grateful if the Minister took this opportunity to update hon. Members on precisely what the roadmap beyond 2013 might look like.

Water saving through greater efficiency will become increasingly important, especially in parts of the country where climate change and population growth will lead to significant constraints in supply. The Building Regulations 2010 introduced a new minimum water efficiency standard for new homes. The potential consumption of potable water by persons occupying a dwelling should not exceed 125 litres per person per day. Will the Minister confirm whether the Government have plans to increase the minimum water efficiency standard in future revisions of the Building Regulations 2010?

As the Committee noted, metering plays a key role in helping to reduce water demand. More widespread introduction of metering will mean that there are winners and losers and some, including groups of vulnerable customers, could see significant rises in their water bills. Social tariffs can help to ameliorate the impact of rising bills on low-income customers. The Government’s response to the Committee stated that they were preparing

“guidance on company social tariffs under Section 44 of the Flood and Water Management Act 2010.”

Will the Minister confirm when that will be published as it is of great interest and importance to many poorer constituencies? The regulatory framework under which water prices are set must also be reformed to include stronger water efficiency targets for water supply companies. The water White Paper should be clear on how that will be taken forward.

In giving evidence to the Committee, the Environment Agency estimated that costs associated with implementing the water framework directive up to 2027 could be between £30 billion and £100 billion, depending on the approach taken. Despite that level of investment, the UK was likely to see only 26% of rivers achieving “Good Ecological Status” by the water framework directive target date of 2015. The Government’s response to the Committee highlighted that it was possible, within the terms of the directive, to set lower standards of compliance. Will the Minister confirm whether the Government have plans to make use of that option? If so, it would be extremely deleterious. Do the Government have any plans to implement the “polluter pays” principle more accurately, so that customers do not have to foot the bill for cleaning up pollution for which they are not responsible? Domestic water customers currently pay some 82% of the costs of implementing measures to meet WFD requirements.

Together with other members of the Environment, Food and Rural Affairs Committee, I welcome the focus placed by the Government on flood and water management. They seem, however, to have lost their way over the nine months since the report was published. An ambitious water White Paper and the commencement of provisions in the Flood and Water Management Act that have not yet been effected, must be a priority. I look forward to hearing from the Minister about how the Government plan to move the issue forward.