Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2020 — House of Lords, 2020-06-08
Topic: Environment
David John Maclean (Conservative, Centre-right): My Lords, I, too, thank my noble friend the Minister for his detailed but concise and eloquent introduction to these regulations and congratulate him on his excellent promotion to this House, where he is advancing our green and biodiversity agenda, which is very important to all of us I am not opposed to this these regulations. However, I have a couple of queries. First, the post-implementation review states that the regulations "were introduced to help the delivery of necessary, large or complex water or sewerage infrastructure projects within England. They were designed to help contain, minimise and isolate the risks associated with the delivery of these projects from customers, undertakers and UK taxpayers, while also providing value for money and keeping customer bills as low as possible." So far, so good, but only one project has been approved: the Thames tideway tunnel. My noble friend the Minister said that four others may be in the pipeline, but what is the timescale for them? If they happen, I strongly support my noble friend Lord Caithness, who urged that these reservoirs must do a great deal for nature The post-implementation review states: "This legislation has facilitated one infrastructure project to date which is due for completion in 2023. As such evidence of outcomes remains limited." In the absence of real evidence, the Government asked stakeholders for their opinion. Is the that the right way to do it? Everyone agrees that this legislation should be changed, but should we be changing legislation based not on solid evidence but on the opinion of stakeholders My second point may be more controversial and I understand if my noble friend the Minister cannot or does not want to respond to it. Thames Water is now owned by a holding group called Kemble Water Holdings, consisting mainly of Macquarie bank and eight other private equity holders. They have done the usual private equity thing. They have loaded the business with £10 billion of debt so that they pay no UK corporation tax; have ripped off water payers by taking out £1.2 billion in dividends over the past few years; and have had to pay record fines for leakage. Okay, there is has a temporary freeze on dividend payouts at the moment, but that is no big deal considering the way they have plundered the business over the past 14 years. One justification in the PIR is that the Thames tideway tunnel has been able to borrow at very low interest rates, but any fool has been able to do that for the past few years. Despite the lower than expected costs, the users of Thames Water will still have to pay for this big sewerage pipeline. Does my noble friend the Minister think that that is fair considering the amount of profits Macquarie and others have taken out of the company My final point is this. If the first Bazalgette were starting out now, he would certainly separate sewage from rainwater run-off, but that is difficult to re-engineer entirely now, so the tideway tunnel is the solution. However, does my noble friend agree that all new buildings and car parks must not put rainwater into the sewerage system but use seepage systems instead? Does he agree that we need more permeable surfaces, underground soakaways, rain gardens, attenuation cells and all the other technologies that let rainwater soak into the soil rather than flood the sewerage system?