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Water Management: S&T Report

My Lords, first, I thank the noble Earl, Lord Selborne, for the excellent way in which he chaired the committee. It was indeed a great pleasure to be a member of such a committee with such efficiency being projected. In addition, I pay tribute to the Clerk of the inquiry, Tom Wilson, who gave a very effective summary and report of the complex deliberations involved in the inquiry. We were very fortunate to have the expert advice of Professor Ashley, whose experience in water matters is very extensive and appropriate to the study. I also take this opportunity to say welcome to my noble friend Lord Crisp. His speech was absolutely bang-on and I look forward to the opportunity of seeing him in operation when he can be a little more controversial on some topics for which I am sure that he has deep feeling. I became involved in the problems of water management when I chaired the Royal Commission on Environmental Pollution from 1986 to 1988. The topic was water purity. Many of the problems discussed by the committee were very similar to those that we encountered in the present study. It is pleasing to see how much has been accomplished in this area during the past 20 years, but some of the difficulties identified 20 years ago are still with us, especially problems associated with diffuse sources of water pollution from both agriculture and urban sources. The major development in the water industry was privatisation in 1989, which, as has been discussed by the noble Earl, has led to a great increase in investment in the water industry—which, I may say, has been necessary. The present report indicates that one of the significant problems now facing the water industry is water shortage, which appears to have occurred in many parts of the country. However, that is mainly a localised problem and must be dealt with on a local rather than a national basis. The problem of water shortage is often associated with specific areas of the country and may vary from year to year. The variation in location may be attributed to a variety of factors, including rainfall, geological effects and population density and growth. The south-east is of particular concern as that area is under stress for water supply and—as has been said by several Members—is attracting a projected growth of the order of about a million new homes. That position has been further accentuated by a decrease in the average household size and an increased usage of water-intensive appliances in the household, as well as the leakage problem, which we have discussed. In a recent report by University College in London, it was estimated that, by 2006, 38 per cent of UK housing will be single occupancy. On average, a decrease in occupancy from two to one increases the water demand per capita by 40 per cent. So, within a static population, there will be a significant increase in water demand. I now refer to the latest statistics, which appeared yesterday, on population growth during the next 25 years. The population growth for London will be roughly 20 per cent. It is interesting to note that the density of population in England is 383 people per square kilometre, while the corresponding figure for Europe is 117. That accentuates the London problem. It is also important to recognise that rainfall—I understand the remarks of the noble Lord, Lord Hunt, about the dangers of interpolation of rainfall data—is projected to fall by 60 per cent by 2080. The recent analysis of water requirements carried out by the Government for additional houses, which are mainly to be built in the south-east of England, does not appear to include some of those points. I remind the House that the analysis noted that the extra increase of 200,000 houses, to which the noble Baroness, Lady Sharp, just referred, would increase demand by only 0.1 per cent because they would not be occupied by ““new people””. That appears to ignore the effect of the increase in the population, its relocation and the decrease in the size of house occupancy. The reticence of the Government directly to involve water companies in the housing developments is difficult to understand and is certainly counter to all advice offered by external bodies, as we heard in our discussion. A worrying feature of any water-management problem is the general public’s view that there is a constant supply of water, when the English and Welsh have less water per person per year than do most residents of Mediterranean countries. Although many parts of the country are suffering from water shortages, this is not true for the whole country, and it is sometimes difficult to enthuse the public about a problem that is so variable, often localised and very often seasonal. The water demand in England and Wales is expected to increase by 12 per cent by 2030, and will place further pressure on water companies. In part, to solve this water crisis, companies, particularly in the south-east, are projected to build five new reservoirs and extend three of the existing ones in the next 25 years. There is also a plan to build two desalination plants, but, as the noble Earl has remarked, this is more controversial. Building these, however, would lead to only a 6 per cent increase in water availability—still leaving us with this balance of 6 per cent to be found. As we discuss in the report, it is clear that efforts must be made to lower water consumption, and, as approximately half is consumed in the domestic sphere, the use of water-efficient fixtures and fittings in homes, the reuse of water and the metering of water supplies must be given top priority in any government measures to deal with this problem. It is interesting to note that, in the OECD area, only two countries—Ireland and the UK—do not go in for universal metering. I find that very surprising. In a section on water problems in a recent Sustainable Development Commission review, which was authored by Professor Anne Power of University College—it is interesting to note that a large number of reviews on water are now appearing—attention was drawn to the fact that the bulk of the consideration on saving in water is applied to new buildings, with little research or policy activity on water consumption in existing buildings. As new buildings are roughly only 5 per cent of the total build, a major problem lies with the older stock. The article claims that savings in water usage of about 30 per cent may be achieved in old houses. It points out, for example, that kitchens and bathrooms are refitted every seven to 15 years. These rooms contain the majority of water-consuming appliances, and some form of regulation on water-efficient replacements could reduce water-usage considerably. The use of such appliances could be encouraged by fiscal incentives such as reduced rates of VAT on efficient fittings and appliances. Some form of labelling indicating the water efficiency of appliances, as the noble Baroness, Lady Sharp, suggested, should also be implemented. As she pointed out, such a system applies to energy but, for some reason that I find incomprehensible, it does not apply to water as a whole. It is pleasing to note that the water industry has instituted a new independent body called Waterwise, which will offer advice on water conservation and efficiency. The main emphasis on savings in water consumption in buildings is currently being directed at the domestic scene, and although it is true that it accounts for 50 per cent of water consumption, significant savings can also be made in the industrial sector. Demand by industry for water has decreased in most parts of the UK because of the decline in industrial activity, and certain companies have recognised the economics of limiting water usage. Similarly, there has been a decrease in agriculture’s demands for water. There is still, however, a big opportunity for saving water in both these areas. A recent report by Envirowise, an organisation that is designed to provide industry and business with advice on environmental matters—the Government very much had a hand in building this up—indicates that industry as a whole, which accounts for a third of the water used in the UK, is using three times more than it actually needs. We are talking about a vast amount of water here. They are clearly in favour of metering water supplies. I agree in general terms with the sentiment expressed in particular by the noble Lord, Lord Mitchell, that the government reply to the report is rather negative. With the exception of the metering problem, which admittedly they now seem to be taking on board, they do not appear to have given very favourable responses to the bulk of the recommendations. Finally, I turn to another point. I am concerned about what appears to be the attitude of Defra, at least as it is expressed in the environmental press, to the next development in water management. This is the one proposed by the European Union in the Water Framework Directive. The directive requires member states to achieve good ecological status in all water bodies by 2015 and is based on a river basin analysis of water management focusing on the delivery of an integrated approach between the various water management priorities. It is not a new concept for water management and, indeed, was a suggestion put forward by the royal commission in the 1980s, based on the deliberations of the then National Rivers Authority for management of water distribution on an integrated river basin management or catchment system. To me that is a much more logical way of looking at water problems. The directive permits member states to adopt alternative objectives that may delay improvement until 2027. A guidance publication on river basin planning issued this September by Defra states that the agency should make full use of this alternative in the directive—that is, delay until 2027. But the European Commission has warned the Environment Agency and the water industry not to rely on receiving extensions allowing more time to meet the directive. The completion date should be viewed as 2015 rather than 2027 other than for exceptional problems. There is no doubt that the directive poses some large problems, but it is important that the Government should attempt to attain completion on the projected timescale and are not seen to be dragging their feet on the date for completion by encouraging the Environment Agency to consider delaying until 2027.