Water Bill

Lord Howard of Rising Excerpts

Tuesday 11th February 2014 Lords Chamber

Moved by

[Lord Howard of Rising]

165ZA: After Clause 73, insert the following new Clause—
“Internal drainage boards: apportionment of drainage expenses
(1) The Land Drainage Act 1991 is amended as follows.
(2) In section 37 (apportionment of drainage expenses), at end insert—
“(f) in the case of—the Secretary of State may by order define an equivalent measure for valuing the land”.”(i) any land to which none of paragraphs (a) to (d) applies and it is not possible to calculate a value under paragraph (e)(ii) as the relevant rating lists no longer exist or cannot be located, or (ii) land to which one of paragraphs (a) to (c) does apply but for which the relevant rating lists no longer exist or cannot be located,the Secretary of State may by order define an equivalent measure for valuing the land”.”

[Lord Howard of Rising (Con)]

My Lords, before speaking to Amendment 165ZA, I declare interests as a member of the Kings Lynn Internal Drainage Board, a payer of land drainage rates and an owner of riparian rights.

This is a simple amendment so I will not detain your Lordships long. Where an internal drainage board extends its area, it may raise special levies on billing authorities to cover expenditure in that area. This process is based on the valuation of land and is set out in Section 37 of the Land Drainage Act 1991. For one reason or another, the rating lists referred to in the Land Drainage Act no longer exist in certain parts of the country. Where it is not possible to value as set out in the 1991 Act, this amendment seeks to provide for the Secretary of State, by order, to introduce an equivalent method of assessing land. The amendment does not say how this should be achieved but would give the Secretary of State the power to do so where no other method exists. The amendment allows a gap to be plugged. In view of the simple and uncontentious nature of the amendment, I hope that the Government will feel able to support it. I beg to move.

[Lord De Mauley]

My Lords, I thank my noble friend for raising the issue in Amendment 165ZA. We value and support the work of internal drainage boards and I agree with my noble friend that we should act to remove unnecessary barriers where it is clear that these are preventing boards getting on with their important work. It is for this reason that we have included provisions in the Bill to streamline the legal processes for internal drainage boards, making it easier and quicker for them to amalgamate or to make other structural changes.

My department has a close and constructive working relationship with the Association of Drainage Authorities, which represents internal drainage boards. Officials meet the ADA regularly to discuss a wide range of issues related to the work of IDBs, and the ADA has not highlighted this previously as one of significant concern to it. Until my noble friend’s recent communications with me, which resulted in the tabling of this amendment, we were not aware that this issue had been identified as a potentially widespread problem.

The concern that has been raised is that some internal drainage boards may no longer have access to the rating lists referred to in Section 37(5) of the Land Drainage Act 1991, and that this could present a barrier to boards wishing to extend their boundaries. However, I am concerned that the amendment of my noble friend is a tad premature, given that we have not yet received evidence on how widespread and significant this problem may be. If there is evidence to show that it poses a significant practical problem, we must consider whether it could be addressed through other means, potentially without recourse to legislation.

I am particularly concerned that the amendment has the potential to give rise to significant unintended consequences that might impact adversely on some internal drainage boards and local authority rate payers. For example, if rating lists to be used were revalued, this could have the effect of increasing special levies on some unitary and district authorities and in turn increase council tax in those areas. The amendment also appears to provide for the creation of a two-tier system whereby some internal drainage boards would continue to use existing rating lists for the valuation of urban land while others would potentially use a different measure where those rating lists are unavailable. This could result in different levels of charge being levied on local authorities in different parts of the country. It is important that a transparent and consistent approach to calculating internal drainage board levies and rates is applied across the country.

I hope that my noble friend is prepared to withdraw his amendment. However, I will consider carefully any further evidence brought forward by my noble friend or the Association of Drainage Authorities on this issue.

[Lord Howard of Rising]

I thank the Minister for his comments. It is interesting that he wants to see the expansion of internal drainage boards, as my amendment is there only to facilitate that. It is very nice that he has been in touch with the association, but it is not all-knowing. Few people are.

I cannot see how there would be unintended consequences. We merely seek to give the Secretary of State the power to take action should it be so needed. If he were to take the wrong action, there might be unintended consequences.

If there are no rating lists available, what are the Government going to do—absolutely nothing? Or will they agree that the Secretary of State can produce a method of valuation that is as close to other people as is possible? The whole point of the amendment is not to tell the Government how to do it; it is merely to give Her Majesty’s Government the power to do it so that there is no blockage on what the Minister has said is their intention.

[The Lord Speaker (Baroness D'Souza)]

Does the noble Lord wish to withdraw his amendment?

[Lord Howard of Rising]

I may return to this later. I hoped that the Minister might comment, but perhaps he does not want to. I beg leave to withdraw the amendment.

Amendment 165ZA withdrawn.