Contribution
But I am concerned, listening to this, because we will be letting the water undertakers—the sewage firms—off the hook if we are not careful. I say to my noble friend that I have looked carefully at the amendments. This whole Bill is about speeding up development; we have to get these homes going. It seems to me that we are potentially having a perverse incentive in allowing the sewage treatment firms to have a veto over new development.
The sewage treatment works and the operators—the water undertakers—are going to be the tail that wags the dog. If they say, “We haven’t got enough capacity, therefore you can’t connect”, no new homes will be built at all. I am really concerned about this. I went to the world heritage site at Iona in Scotland and its sewage treatment works were at capacity. It ended up with the visitor centre being forced to have its own package system that drained straight through the public areas, making it worse. In Norfolk, Anglian Water is saying that its sewage treatment plants are at capacity and it cannot contemplate any new homes. It is the blocker: 40,000 new homes in the greater Norwich area, as well as other areas, are now at risk. So far, so much for speeding development. This is going to slow it down, because it gives them a get-out—a perverse incentive not to invest in what they should be doing, while taking the money from business rates and so forth.
In aggregate, we are going to end up with more polluting package systems rather than connecting. That is no good for places such as Poringland, in my own area, where there is clay and the drainage is really poor. This is really important because by promoting a multiplicity of much smaller package systems, rather than incentivising the main sewerage providers to invest, we are going to avoid scale—and we need the larger, better-structured sewage treatment works brought up to scratch, because it is only then that they would address the phosphate problem. Phosphate is very difficult to do in a package system because there are harsh chemicals, so you have to wear face masks, gloves and all the health and safety paraphernalia. It all has to be carefully handled. This is where we get the economy of scale, which is what we should be encouraging.
Another point is that if we are to allow the sewage companies to say, “We think we’re full now, so you can’t have any more”, we will end up with more small package schemes. There is the smell. They are also unreliable and expensive to maintain. It is difficult to get them adopted.
I am really concerned about Amendment 198. I do not want to put the black spot on it entirely, but it needs to be improved. We would end up with a perverse situation in which there was a lack of capacity and we incentivised the sewage treatment companies and water companies to take it easy, rather than go the extra mile. This is not some theoretical risk. In places in Norfolk such as Heacham, Docking, Snettisham, Horsford, Brancaster and the entirety of the greater Norwich area, Anglian Water is holding up the delivery of tens of thousands of houses.
This is an infrastructure Bill, so there would be unintended consequences. While the amendment is well meaning—I accept everything the noble Baroness said about what is in the Water Act, and I accept that for smaller schemes this is it—if we are to have an infrastructure Bill, we need to remove the excuses for the sewage treatment companies and the water undertakings not to invest in that most basic infrastructure. It is as if we are going back to the days before Chamberlain in Birmingham and Bazalgette here on the Embankment in London. We spent ages on the Water Bill, and there is widespread concern about sewage discharge, but sewage discharges will be solved only if we hold the water companies’ feet to the flames and get them to invest. It is a real problem if they just say, “Well, it’s a bit difficult. We’re not going to invest, and therefore you can’t build houses and can’t get the economy moving”.
In summary, we need to make sure that we take into account that SUDS has a role for smaller schemes, but we should not allow the pressure to be taken off the large companies for the big schemes—the schemes that will deliver the homes this nation needs by getting roofs over people’s heads. Otherwise, we will never meet the targets. As it is, in the Times yesterday there were questions about whether we will even get half way to delivering the housing targets, let alone all the way.