Select Committee on European Scrutiny Thirty-First Report


15 Assessment and management of floods

(27231)

5540/06

COM(06) 15

+ ADD 1

Draft Directive on the assessment and management of floods


Annex to the draft Directive on the assessment and management of floods — Impact Assessment

Legal baseArticle 175(1)EC; co-decision; QMV
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationSEM of 2 June 2006
Previous Committee ReportHC 34-xviii (2005-06), para 5 (8 February 2006)
To be discussed in Council27 June 2006
Committee's assessmentPolitically important
Committee's decisionCleared

Background

15.1 In their Report of 15 September 2004, our predecessors noted that the Commission had produced in July 2004 a Communication[46] which addressed the question of flood risk management. In it, the Commission had observed that Europe had suffered over 100 major damaging floods between 1998 and 2002, which caused some 700 fatalities, the displacement of about half a million people, and at least €25 billion in insured economic losses. It also noted that, although many Member States were already taking protective measures, concerted action at Community level would bring considerable added value, and it set out in the Communication ways in which this might be achieved. Since this document gave rise to subsidiarity concerns, and also raised questions over what the Community could contribute in an area where they felt the main responsibility for action must necessarily be at national level, our predecessors recommended it for debate in European Standing Committee A. That debate duly took place on 8 December 2004.

15.2 In the light of the reaction to its earlier Communication, the Commission produced in January 2006 this proposal for a draft Directive, aimed at laying down a framework for reducing the risks to human health, the environment and economic activity associated with floods. As we noted in our Report of 8 February 2006, this uses definitions of river basins and other elements established in the Water Framework Directive,[47] and links the various timescales for implementation and review in this instrument to those set in that Directive. In particular, it would require Member States to complete within three years of the Directive's entry into force a preliminary flood risk assessment for each river basin district; require this assessment to be used to designate river basins as either liable to potential significant flood risk, or not; require Member States to complete by 22 December 2013 at latest flood risk maps for those areas designated as being at potential significant risk, and drawn up in relation to three scenarios, of high, medium and low probability;[48] and require Member States to prepare and implement for the same areas flood risk management plans at river basin district level. Member States are also required to coordinate their efforts as regards international river basins falling entirely within the Community, with the aim of producing one single plan.

15.3 We also noted that the Government had said that the principal rationale for this proposal rested on the need to avoid inconsistent or contradictory approaches to flood risk management, and to ensure coordinated planning and action within river basins which span two or more Member States. However, although subsidiarity was said to be respected because decisions for each river were to be made by Member States, this rationale related mainly to trans-boundary waters, whereas the Directive would be applicable to the whole of each Member State. Since the UK has only one river (in Northern Ireland) which is trans-boundary, the Government had taken the view that this was an area where coordination and co-operation would be more desirable than Community legislation. It was therefore again considering its approach, including whether to argue that the Directive would be best limited to trans-boundary waters only.

15.4 Other issues which the Government had said needed to be addressed were the extent to which an alignment of water quality and flood protection policies was appropriate; whether the production of flood risk maps is technically feasible and would provide useful information whilst avoiding any unnecessary duplication; and whether the text in practice offers the necessary degree of flexibility to Member States.

15.5 Finally, the Government said that it would be submitting a partial Regulatory Impact Assessment by the end of April 2006, but, in the meantime, noted that additional costs within the UK can be estimated only very roughly at this stage, and could alter radically as a result of developments in the course of the negotiations. However, on the basis of the proposal as it stood, preliminary estimates of the initial set up costs, for work additional to that already planned in the UK, totalled at least £95 million over a six to seven year period for the UK as a whole,[49] with a high proportion of these costs arising from the detailed requirements for flood risk mapping, which go beyond the extensive work already undertaken for England and Wales. However, if the Directive were ultimately to lead to obligations beyond current practice, the recurring costs could be much greater.

15.6 In noting this, we commented that it was clear that this document raised, in a legislative context, issues similar to those in the earlier Commission Communication which had prompted our predecessors to recommend that document for debate. We said that, once we had received the Regulatory Impact Assessment promised by the Government, we would want to consider carefully whether a similar approach would be justified on this occasion. In the meantime, we decided to draw the proposal to the attention of the House, together with the Minister's very full preliminary analysis of its implications.

Supplementary Explanatory Memorandum of 2 June 2006

15.7 We have now received from Minister of State (Climate Change and the Environment) at the Department for Environment, Food and Rural Affairs (Ian Pearson) a supplementary Explanatory Memorandum of 2 June 2006 enclosing the promised Regulatory Impact Assessment. This shows that there would be slight reduction (from £95 million to £85 million) in the overall costs within the UK over the first six years were the proposal to be adopted as it stands, and that there would be recurring costs of around £24 million every six years thereafter. However, the Assessment also highlights the costs of two other negotiating options which the UK has pursued. The first — and, by some margin, the most attractive — of these would be to confine the measures to trans-boundary waters, in which case the only costs in the first six years would be some £2.5 million arising in Northern Ireland (followed by about £0.7 million every six years), but we have been told that there is little or no support for such approach from other Member States. The Government has therefore been seeking as well to modify the proposal so as to achieve a better balance between its costs and benefits, for example, by removing the need for a preliminary risk assessment where a decision has already been taken to produce flood risk maps, and by simplifying the information to be provided in such maps. According to the Assessment, an approach on these lines would result in costs to the UK over the first six years to £11.7 million (and then to about £8.9 million every six years).

Conclusion

15.8 Although we share the Government's concerns over the subsidiarity aspects of this proposal, we note that there is little support among other Member States for a measure applying only to trans-boundary waters, which would clearly be by some way the most attractive solution so far as the UK is concerned. However, we also note that there does appears to be support for an approach which would enable existing work in this area to be taken into account, and which would result in a significant reduction in the costs of the measure in this country. On balance, therefore, and notwithstanding our misgivings, we are prepared to clear the document.


46   (25828) 11422/04; see HC 42-xxxi (2003-04), para 1 (15 September 2004).  Back

47   2000/60/EC. OJ No. L327, 22.12.2000, p.1. Back

48   Based respectively on likely return periods of 10 years, 100 years and on "extreme events". Back

49   Around £50 million would arise in England and Wales taken together, £35 million in Scotland, and £10 million in Northern Ireland. Back


 
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