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Flood and Water Management Bill

I hope the hon. Gentleman agrees. Basically, as the Minister said, the Select Committee on Environment, Food and Rural Affairs said in its report that we would need to revisit the regulatory framework for a number of issues that arose in Committee. In new clause 18, we are seeking to add a number of responsibilities that we believe should be specified in the Water Industry Act 1991 to reflect the changes that the Bill makes. Currently, those responsibilities are omitted from the Bill and the Act. I hope that the Minister and the House look favourably on those remarks. The Minister said that Government new clause 22 was an opportunity to give Ofwat a role in approving or rejecting the charging scheme, and ensuring that decisions are commensurate with the guidance to which he referred—I should state that that guidance was drawn to the Committee's attention on the penultimate day of our proceedings. What consultation has there been on that guidance? Previous guidance was heavily consulted on. Will he ensure that decisions will be taken with that guidance in mind? What direct consultation has there been with Ofwat? My hon. Friend the Member for Arundel and South Downs (Nick Herbert), the shadow Secretary of State, and I have mentioned on a number of occasions on public platforms that we have serious concerns about affordability. We believe that regard should be had to the Walker report. If it is the wish of the British people that there should be a Conservative Government, we would be committed to introducing a White Paper, as the Minister is aware, to consider both the Walker report and the Cave review in the round—particularly the former—as regards metering and affordability. We are a little dismayed that the Government have lifted one specific concern about social tariffs and affordability—we recognise that it is a very real concern—because it looks suspiciously like a piecemeal approach. Affordability is best seen in the context of areas such as the south-west, where 40 per cent. of water consumers are on low incomes, spending more than 3 per cent. of their disposable income on water, which is the general classification for water poverty. We wish to be as vigilant about water poverty as we are about fuel and energy poverty. I remind the Minister that while the Energy Bill includes social tariffs, with which we also have some sympathy, the energy sector had a two-year consultation under a proper framework set out in legislation. It was transparent and equitable, and all parties were fully consulted. We are also interested in the position of the Liberal Democrats, because they have flatly stated that they are against any form of stealth tax, and we are also on the record as opposing stealth taxes. However, new clause 22 will leave open the possibility of, for example, a hotel tax that is a real blight on hotels, especially in the south-west, which has the greatest problems of affordability. I wish to press the Minister on why the Government have picked on this aspect of social tariffs when there are many others. They had the opportunity to introduce a fuller water Bill. Indeed, it was not until the Opposition pressed the issue that the Government said that they would introduce a broader Bill, but they have taken many aspects of the draft Bill out at this stage. The Select Committee clearly concluded that they were right to do so, because, as we have said, we need to see a White Paper and a water Bill, along the same lines as the previous Conservative Government's legislation, which set the framework for the next 20 years. What are the Government thinking and why have they cherry-picked this issue out of the Walker report, the Cave report and the price review 2009? The Select Committee's conclusions also considered a broader role for Ofwat. Our concern is that this could lead to a bad law, the impact of which has not been properly assessed.