HC Deb 06 March 2003 vol 400 cc949-51
6. Mr. David Amess (Southend, West)

What assessment she has made of the potential impact of the European water framework directive on UK industry. [101115]

The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)

The Government published an assessment in 2001, and we plan to publish an updated version later this year.

Mr. Amess

Does the Minister accept that the cost of implementation is expected to be known by 2015? What impact does he expect the directive to have on water pricing? Finally, can he clear up the mystery of why the directive makes no mention of the Water Bill with which the other place is currently dealing?

Mr. Morley

I can certainly deal with the last point. The Water Bill is not designed to implement the framework directive; it has implications for such things as abstraction management and water transfer, which will have a bearing on the framework.

I do not think there will be a big impact on consumer prices in the medium term. As the hon. Gentleman said, we expect the directive to be implemented in 2015 and some of the price implications to be known in about 2012. We are currently conducting a price review. There will clearly be price implications—I would not want to pretend otherwise—but a range of measures are being implemented in relation to water quality, ecological quality, pollution control and the nitrate directive, which will help us reach our target and will reduce the overall cost.

Dr. Stephen Ladyman (South Thanet)

My hon. Friend will know that houses in many villages in Thanet and Dover are not yet connected to mains sewerage. Is there anything in the water framework directive or in the Water Bill that is being introduced along the Corridor to make it easier for water companies to put rural villages on to mains sewerage?

Mr. Morley

WS Atkins is conducting a survey on private sewerage, although I realise that that is not a complete link to my hon. Friend's question. The issue is a serious one in his constituency, and he has raised it assiduously on behalf of his constituents on several occasions. The situation in respect of costs and responsibility is complex and that is one of our considerations as part of the overall policy on water provision.

Mr. David Lidington (Aylesbury)

Can the Minister confirm that the water framework directive requires that there be zero emissions of such substances as mercury, which is emitted into the earth's atmosphere by volcanoes, and of polyaromatic hydrocarbons, which emit from every combustion process known to man? Will the Minister indicate how on earth British industry is supposed to meet that impossible requirement?

Mr. Morley

With respect, the hon. Gentleman takes far too literal a view of the directive, although, as he rightly says, there will be trace elements of such chemicals. However, chemicals such as mercury are serious pollutants and we need to take action to try to minimise them. The water framework directive indicates the most appropriate and proportionate way of dealing with such issues and there is provision for reasonable derogations in its application. I do not think that the approach is as fundamental and unreasonable as was suggested.

Mr. Lidington

I am afraid that I hold to the old-fashioned view that one requires a literal reading of legislation that imposes penalties on either individuals or industries.

May I take the Minister back to the point raised by my hon. Friend the Member for Southend, West (Mr. Amess) on the possible costs to consumers? Does the Minister share the view held by a number of water companies that the costs of the directive to the water industry alone could be in the region of £4 billion to £4.5 billion and that it could lead to an increase in individual water bills of up to 10 per cent? That is the view of the water industry. Does the Minister disagree with that assessment and, if not, how does he propose to alleviate the additional stealth tax that it would impose on households?

Mr. Morley

I do not accept those figures, which think the hon. Gentleman bases on Water UK projections. They include a range of costs resulting from directives that are currently going through, and will thus be an accumulating factor in meeting the water framework directive. At this stage, an accurate projection of costs is premature. Of course, we need some idea about them; that is why we produced impact assessments. There will also be further refinement of the figures in a report later this year.