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Developments such as those which I have described have the potential, along with many others, to make water supplies safer, more reliable and, in the long term, they are likely to save expense, as shown by work carried out by Yorkshire Water. It is very important that water companies have access to these technologies. However, to do so cost effectively, they must be able to act as intelligent customers. That means having in-house expertise to recognise and evaluate new developments and to see how they may be best adapted to their particular needs. This can be done by working closely with UK Water Industry Research and with other external bodies, but it costs money.
I am afraid that the replies of both the Government and Ofwat suggest that neither properly appreciates either the practical difficulties in setting up and conducting research, the importance of continuity, or the importance of research to an industry such as the water industry, facing the challenges that it does today. Expenditure on research should be seen as an investment for the future rather than as an in-year cost.
Regardless of whether the funding mechanism for research suggested in our report is the most appropriate, it is essential that the industry should have every incentive to innovate. The fiscal regime within which the companies operate should be designed to encourage research in a positive way and to ensure that research projects can continue overat least two funding periods; that is, over at least10 years. Given the time that it takes to set up a project properly, the present regime makes it virtually impossible to consider projects that extend beyond two or, at the most, three years. It would be helpful for Ofwat to consult the Government’s director-general for research and innovation, or the Chief Scientific Adviser, on appropriate means to ensure that the funding structure for research is appropriate for the water challenges that lie ahead. I hope that they will do so.
2.10 pm
Lord Broers: My Lords, once more, as in the case of our recent inquiry into energy efficiency, members of the Science and Technology Select Committee
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As we have all said, the sub-committee was fortunate in its chairman, the noble Earl, Lord Selborne, whose extensive knowledge of the subject, so apparent in his excellent opening speech, and his outstanding skills as a chairman, enabled us to get to the roots of the problem and to come up with constructive recommendations. I also compliment our specialist adviser, Professor Richard Ashley, whose international expertise was especially valuable, and our Clerk, Tom Wilson, with the assistance of Michael Collon and our specialist assistant,Dr Jonathan Radcliffe, on their efficient organisation of the meetings and visits and their clear and accurate drafting of the report. I also compliment all noble Lords who have spoken, and especially the noble Lord, Lord Crisp, on his eloquent maiden speech.
I shall concentrate on the related issues of public understanding, metering and billing, all of which have been mentioned already several times but which I nevertheless feel will bear repetition. The majority of consumers believe that our supply shortages can be rectified simply by having the water companies mend the leaks in the distribution system but, as the noble Earl, Lord Selborne, and others have said, the problems are much more complex than this suggests. However, I support strongly the cry of the noble Lord, Lord Mitchell, for improved management in some of our water companies and the introduction of increased competition. I also disagree with the water companies’ claim that the reduction of leakage below what has been called the “economic level” of leakage would lead only to an unacceptable increase in cost and that it is better to increase supply. We think that that is simplistic and does not adequately take into account environmental issues.
As our chairman has already said, we recommend that Ofwat replace the concept of an economical level of leakage with a broader concept of a sustainable level of leakage. As we have said, that would take into account but place more emphasis on the environmental and social consequences than on cost and providing additional supply. It would lead to lower levels of leakage and go a long way to persuading the public that the water companies are behaving responsibly. In turn, more people would be inclined to support the companies’ request to provide additional supply through building new reservoirs or
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There is also the issue of the contribution that people can make themselves to conserving water. As with electricity, a large number of people have little idea of how much water they use or of the relative importance of the different ways in which they use it. Much of that ignorance is a consequence of inadequate, or a complete absence of, metering.
Our systems of monitoring water usage and billing are primitive—years out of date by the standards of best practice in the western world. As we have said in the report and mentioned today, we saw much more intelligent and advanced methods being practised in Australia, quite coincidentally in Melbourne, where I happen to have spent most of my youth. Residents of Melbourne receive a water bill that outlines in detail their present and past usage of water, and how much it is costing them. If they do not pay their bill, the suppliers have the right to limit their supply—not disconnect them—by placing a constriction in their supply pipe. It is interesting to reflect that, in those days long ago when I grew up in Melbourne, there was little concern about water supply. But Australians have realised that their modern way of life, their prosperity and climate change together place demands upon the water supply that are many times more severe than they were in the first half of the 20th century.
Things have changed dramatically, and it is well past the time when we should have realised that our case is similar and modified our behaviour. We are in the bizarre situation where people will pay as much for a litre of bottled water as they will for a litre of petrol, and yet a significant minority of the same people refuse to pay their water bills when the water, in most cases, is of the same quality and purity as that of the bottled variety, and yet costs one-thousandth as much. Never has public ignorance been more expensive to the public.
The Government should ensure that systems are put in place that better inform people of the genuinely high quality of tap water and, more importantly, of their responsibilities to use this precious substance sparingly. Meters should be provided for everyone, not the diminutive 28 per cent who have them at present, and the meters should be both accessible and prominent. Consumers should be provided with bills that show their usage and how it relates to the consumption of others and to their previous usage.
Of all the countries in the world, Britain should not be precipitating itself into a water crisis. The problems can all be solved by modifying our behaviour, and, in a few cases, carefully planned increases in supply. But we have to act now and be proactive and creative, as the noble Lord, Lord Oxburgh, has just said. It was extremely disappointing that the Government’s response to our report was largely a defensive reiteration of the status quo.
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2.17 pm
Baroness Miller of Chilthorne Domer: My Lords, from these Benches I warmly thank the noble Earl, Lord Selborne, and members of the committee for giving us the opportunity to debate these important issues of water, which we have debated less in your Lordships’ House in the last few years than the issue of energy, yet water is absolutely vital.
Noble Lords have spoken mostly today of the demand end of water—what comes out of the pipe and consumers use—but of course that is just the end of the process. It is important that we look at water management as applying to the whole natural hydrological process. Rain falls on ground that is compacted, tarmacked and polluted. It runs off too fast, causing flooding and taking the pollution with it, so the groundwater becomes polluted and there is a lack of refill for the aquifers, on which my noble friend Lady Sharp spoke. However, there is a different way. If we have the soil in the right condition, do not cover the ground with tarmac—something the Government started to address through the sustainable urban drainage programme—and have absorbent, vegetation-rich soil, the rain can run slowly into streams or groundwater, any pollution begins to be naturally filtered out and we have a very different system.
It was with that natural hydrological cycle in mind that I read the report. Having a close relationship with that cycle comprises the perfect solution that we are looking for. The noble Lord, Lord Crisp, said that there must not be disagreement over these water-management issues. Those were wise words. I very much enjoyed his speech and I look forward to hearing from him again.
It was striking that those who gave evidence saw one mechanism as the tool for solving many of the problems. I refer to the water industry, the water companies, environmental NGOs, government agencies and the European Commission. I make no apology for quoting the comments of different bodies, as that will prove the extent of their agreement on the solution to the problem. Pamela Taylor of Water UK, representing the industry, said:
“We have been disappointed that too many organisations who ought to be playing a major part in the Water Framework Directive are too far behind the pace in England and Wales. In Scotland we are seeing better strides...there is...a feeling that the Water Framework Directive brings problems. It does not; the problems are already there. What the Water Framework Directive does...is provide the tools for addressing those problems...the slower we are to implement the Water Framework Directive, the more we will be dependent on end of pipe solutions, the more that will cost society, the more it will cost our customers, and the less successful we will be because they are not sustainable options”.
That is the industry’s view. Your Lordships might think that it would be very different from that of others. Dr Alastair Burn, head of water and wetlands at English Nature, states that,
- “the Water Framework Directive provides the pre-eminent mechanism to tackle things at the catchment-wide level...it offers the opportunity for a much more holistic approach, if implemented properly”.
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The industry is frustrated because the measure is being implemented too slowly. English Nature is frustrated because it is not being implemented properly. Devon Wildlife Trust wrote to me—this is not from the evidence but is its comment on the report, which it very much appreciated—stating that the water framework directive should be the benchmark for all discussions about water, not merely a bit player. I could mention other quotes.
The Water Act 2003 gave the Government an opportunity to implement the water framework directive properly, but they did not take that opportunity. They are implementing it in a piecemeal way and very slowly. I thoroughly agree with the forceful comments of the noble Lord, Lord Lewis of Newnham, on the matter although, unfortunately, he did not have time to go into it thoroughly. It is much more expensive to fix the problems later than to solve them through the water framework directive. The measure concentrates on natural rather than heavy engineering solutions. The noble Lord, Lord Howie, referred to water grids and desalination plants. I refer to flood defences. I believe that the noble Lord, Lord Oxburgh, referred to heavy engineering solutions. Those served us well in the 19th century when sewerage systems and flood defences that we would recognise today were introduced. Modern thinking on these matters embraces the filtration systems that he so eloquently discussed, a far softer approach of managed retreat for coastal systems and, as I said, soil and wet woodland systems that absorb flood water. It is important for the Minister to ensure that the water framework directive is implemented in this country in such a way that it is very much part of the process that I am discussing.
I am sure that other Members who have spoken in this debate will have received a brief from the National Farmers’ Union on these issues. I was perturbed by its comment that it felt very much excluded from UK TAG, the technical advisory group that is advising the Government on how the process should be implemented. The NFU feels it will be excluded until the group has reached its conclusions, when of course it will be consulted, along with the rest of us, local authorities and whoever.
That is the wrong way round. We should not have a closed-door process. It is very much a matter of involving as many stakeholders and interested parties as possible as early as possible. When the Minister replies, I am sure that he will say that the Environment Agency is creating the liaison panels for the river basins. Of course it is, but those are made up of only 10 people per region of England and among them are all the usual suspects—the Environment Agency and so on—and the process has not been widened out one bit. I must declare an interest. My husband is chair of his local flood defence committee and a member of one of the liaison panels; I hope he does not take my last comment as a criticism, and he was not aware that I was going to make it. However, we need to widen out the process and ensure that it is as inclusive as possible.
The frustration that is being built up aboutthe fact that such a useful mechanism and tool is
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It is imperative that the Government get a grip on this, not because it is a European directive, nor because we have to do what it says—although we will pay dearly if we do not bring our water environment up to a good standard financially—but because it makes common sense in every way to work with the directive as the means to solve all the problems. We would want to do that even if the directive was not there. I look forward to a more positive reply than we had in the Government’s response to this issue, which, in common with other noble Lords, I found extremely disappointing.
2.28 pm
Baroness Byford: My Lords, before I start to speak on the topic of the debate, I congratulate the Science and Technology Committee—in particular, its chairman, my noble friend Lord Selborne—on this excellent report. It is not only a sizeable and solid work of great merit but also the committee’s eighth report in this Session. The level of commitment and application that that represents fills me with admiration. I am delighted that many other noble Lords who were members of the committee have taken part in the debate. I also congratulate the noble Lord, Lord Crisp, on his excellent maiden speech and we look forward to hearing him shortly in many other debates.
As was made clear when my noble friend set the scene for the report, there are many aspects to this issue. The report highlighted the difficulties and made definite suggestions. There is no clear line of responsibility; there is a lack of accountability. There is also a lack of funding and a lack of resource development. The report considered ways in which we could look in greater depth at water efficiency. It looked at bills and affordability, and at housing and planning. In particular, it considered the ODPM’s failure to take water seriously enough. I believe that that issue is essential. If you are planning millions of new houses, the number one key must be where the
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Noble Lords have touched on climate change. The issue is not just climate change per se; in different areas, things are changing in different ways. Scotland and the west remain wetter. In the east, my noble friend Lord Dixon-Smith and I both have problems, because there is a great shortage of water. Those who farm in the east certainly have different problems from those who farm on the west side.
Households, businesses and agriculture all have an effect on the future of our wildlife and biodiversity. Many noble Lords have said that the Government’s response to this very worthwhile report is at best disappointing and at worst complacent. I do not envy the Minister on this and would not like to be in his shoes when he responds.
The water framework directive has been mentioned. When we took through the Water Act in 2003—it was before the Minister took up his new post—we had long debates on the best use of water. The noble Baroness, Lady Farrington, will well remember our exchanges. We talked about the individual contributions that we can make. When we turn on the tap to brush our teeth, why leave it running? Why not switch it off? There are many different ways in which we as individuals, business and society can preserve our scarce and precious water.
Water is a commodity that we have taken for granted. It is like when we go into a room and just switch on a light. Water is not always there and has to be used wisely. Somebody said to me the other day, “But rain is free; water is free”. I said to them, “My goodness. Think of how we use our rainwater. It is clearly not free and we must preserve it”.
I was concerned that, as some noble Lords have mentioned, the report suggests that regional boards should be set up in addition to what is already there. I have great reservations about that, as I cannot help feeling that such boards would simply be expensive devices for removing responsibility for making difficult decisions from those who are or should be paid to make them. Surely Ofwat is competent to decide on the balance in any area of the four elements: resource development; leakage reduction; network renewal; and demand management. Waterwise should also be there to help and encourage the public to have a better understanding of their responsibilities.
The Water Act was passed in 2003 and my question to the Minister is when we will have any of the regulations that should have come out of it. To date, I do not think that we have had any. That is another example of words but no action, when we certainly need action.
On those who pay and those who do not pay for their water, I divide the issue into two. I understand that 40 per cent of the don’t-pays could afford to pay, which leaves only a small number of people who cannot afford to pay. There has been £490 million of uncollected revenue in the past 12 months. Surely we
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I am quite appalled—I mentioned this when we took the Water Bill through before it became an Act—that the CAB, for example, when it sees people with debt problems, puts the water bill a long way down the list. Water will never be cut off. I am not suggesting that it should be, but why should it be so low down in priorities when other things are paid, which may include mobile phones, the lack of which would not be life-threatening by any stretch of the imagination? There are ways of looking at that issue, including partial disconnection and smart meters. We have meters on our property.
The noble Lord, Lord Hunt, clearly said that we are moving to a situation where we shall have more floods and droughts. The climate certainly seems to be moving in that way. Some areas have to cope with flooding while other areas try to ensure that there is sufficient water for our needs. Long-term planning is certainly needed.
The noble Lord, Lord Mitchell, may sit on that side of the Chamber, but I totally reiterate his reflection of the Government’s response to this excellent report. I cannot think of anybody who has not said that the Government could or should be doing more. My noble friend Lord Dixon-Smith referred to the conflict between water use and the environment, which is key in some of our areas, and we have to look at that carefully.
I, too, had briefings from the National Farmers’ Union, which is well aware of its responsibilities. I declare again that I am a farmer and am reliant on water. We do not irrigate, but we are reliant on water. Farmers’ use of water is only 2 per cent of the total, which is something about which the public are not aware. I am pleased and congratulate the Government that on 11 October Defra announced that its proposed capital grant scheme will be under way to deliver catchment sensitive farming delivery initiatives. While the budget of £5 million for those works remains, the CSFO will be undertaking preparatory work for the launch of the scheme in April 2007. I understand that applicants will have until 30 September to apply and four months until the end of January 2008 to complete these works. These are very useful practical initiatives and they are indeed welcome. Is the Minister confident that in the £200 million reduction that Defra has to find this will not be yet another scheme that will be threatened? We would like to have clarity on that.
From our discussions today and the excellent contributions, we are all agreed. We know that we as individuals have a great role to play in trying to use our water in a sensible and conservatory manner. In our neck of the woods we have water butts and try to collect rainwater to use on the gardens. I cannot think why more people do not do that because plants do better from rainwater than from tap water. But that is a minor issue.
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