Thursday 12th March 2020

(4 years, 2 months ago)

Public Bill Committees
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Saqib Bhatti Portrait Saqib Bhatti
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Yes.

Stuart Colville: This is clearly an area that needs to be approached with caution, because the licences that water companies hold are extremely important to the way that they operate and for attracting investment, essentially. We think the Bill broadly strikes a reasonable balance between the powers that the Government and the regulator feel that the regulator needs, while maintaining protections for investors and continued investment.

Marco Longhi Portrait Marco Longhi (Dudley North) (Con)
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Q I am interested in the panel’s views on the role of local government and, more broadly, on the regulatory framework once we have decided what the medium and longer-term targets may be. As I observe the water economy—if I could use those terms a little loosely—it seems very fragmented. We have water providers, water treatment, marine, canals, x, y and z. How do you see the regulatory framework, as that develops, once we have decided what those targets should be? I just want to make sure that we do not put the cart before the horse, if that makes sense.

Stuart Colville: I think the role of local authorities is crucial. We are seeing an increasing move towards catchment-based planning across the UK. Local authorities bring a sort of accountability that industry and regulators cannot. Involving local authorities more in the medium-term or long-term plans around some of our most important river catchments is really important—bringing them into the partnerships that are being constructed to think about how best to maintain and improve water quality, flood resilience and so on.

I do not necessarily see a role for the Bill in promoting that. I think it is already happening to some extent, and we are seeing work quite well in particular areas. It requires a proof of concept and a scaling up of what is already happening.

Chris Tuckett: Absolutely, it is complicated. The Bill is huge. The governance framework is also huge.

Marco Longhi Portrait Marco Longhi
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Q It follows on from Mr Hepburn’s comments earlier on integrated thinking. Given the fragmentation of the whole environment around water, it is a complicated equation.

Chris Tuckett: The systems thinking around governance, as well as the environmental system itself, is really important. There is a specific example I have around local government. The inshore fisheries and conservation authorities that operate around England, at six or 12 nautical miles—the inshore area—get their funding through local authorities. We know that due to the situation local authorities are in, some of that funding is lost along the way. It just happens.

The funding position there is pretty dire, so from a marine point of view, to regulate the inshore and to do this job properly and recover our marine environment, we need the regulators to be in place to have the power and, bluntly, to have the funding to be able to do the job. That goes for the Association of Inshore Fisheries and Conservation Authorities and for the Marine Management Organisation.

With local authorities, you of course also go on to the waste and resources side of things, which I think you will be talking about later. It is important to think about their role on such things as deposit return schemes versus what would happen within a new system that is set up. I am sure DEFRA is absolutely on the case with thinking about governance arrangements, the flow of money and how all that works as part of this, but it is vitally important.

Kerry McCarthy Portrait Kerry McCarthy
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Q Can I just ask a quick question about chemicals in the water supply and whether the Bill does enough to increase the monitoring of pesticides and other pollutants in the water? You are all nodding, but nobody is answering.

Ian Hepburn: It is not something I have looked at in depth, but certainly there seems to be concern—this is from other organisations that support and work with Greener UK—that there is a large number of substances out there that will be risky as far as human health is concerned, let alone the health of the environment. That will need to be regulated. I do not see within the Bill that there is necessarily the right framework to do that monitoring.

It is also probably worth touching on the fact that if one puts that responsibility on the Environment Agency, which has had fairly significant depletion of its resources, it may be that there is no capacity, even if you include that responsibility in the Bill, to get that monitoring done. I think that is something that we need to bear in mind when developing something that will help us watch these novel substances, both alone and in how they operate together in the environment, because they do pose risks.

Stuart Colville: I would just observe that regulators and the water industry itself have a programme of research into what I suppose you would call novel contaminants or novel pollutants within watercourses and water bodies. That is funded at a reasonably high level and will continue. In fact, the next round, between 2020 and 2025, is about to start. That looks at things such as microplastics, antimicrobial resistance and exotic chemicals that may be leaching into watercourses from various forms. I suppose the question is whether there needs to be some duty or obligation through legislation to formalise that somehow. My sense is that the current system, which is overseen by the Environment Agency, is reasonably effective at keeping an eye on those substances and trying to work out what is actually in the environment.

Chris Tuckett: Clause 81 of the Bill, which relates to water quality, gives the Secretary of State powers to look at the substances that are regulated through what is now the water framework directive. That is good, and we do need flexibility on the sorts of chemicals that are monitored. It is slightly different for pesticides, but it is important to adapt as new chemicals come on to the market. What we would say about that clause is that there should be absolutely no regression on standards. Those standards that are there should not be reduced in any way.

Stuart Colville: Just to be clear, we would agree with that.