Select Committee on Environment, Food and Rural Affairs Written Evidence


Memorandum submitted by the Alde and Ore Association (FL 136)

COMPREHENSIVE SPENDING REVIEW: FLOOD DEFENCE EXPENDITURE

  Like the Association of British Insurers (see their press statement at Annex A[56]) the Alde and Ore Association considers the provision for flood defence expenditure in the latest Comprehensive Spending Review (CSR) is totally inadequate. The Government have clearly failed to grasp the problems facing coastal communities. We support the view of the newly launched SCAR's (Suffolk Coast Against Retreat's) that expenditure on defending our coasts and tidal rivers needs to rise to at least £30 million a year (see Annex B[57]). We also welcome the joint statement by Suffolk County Council, Waveney District Council and Suffolk Coastal District Council challenging the latest Environment Agency proposals for the Blyth Estuary (Annex C).[58]

  In his press statement the Secretary of State, Hilary Benn, announced that expenditure on flood defences over the next three years will be increased by at least £2.15 billions well short of the £3 billion, ie £1 billion a year, which it is widely recognised is the minimum needed nationally to cope with the challenge of climate change and sea level rise. Interestingly he describes the increase for each year as being "the minimum we will spend in each of the coming years". This is probably explained by the announcement in the CSR documentation that DEFRA is currently planning to dispose of assets worth £52 million by 2010-11. It appears the Treasury have agreed that these savings may be reinvested in capital programmes.

  But underlying these figures is the assumption that DEFRA will achieve net cash release savings of £379 million by 2010-2011 and a reduction in the Department's running costs (administration budget) of nearly £100 million by 2010-11 which represents a reduction of over 20% of estimated spending in 2007-08. This implies significant manpower cuts in DEFRA staffing levels.

  As far as the East Coast is concerned we have been told by the Environment Agency that little of this increase in flood defence expenditure, assuming it takes place, will be seen in Suffolk. By far the greater part is already committed to approved projects already in the pipeline and priority will be given to people and property in inland areas.

  What we are not told is what happens if we have another farming crisis or management fiasco such as that which occurred when the Treasury insisted on cuts in DEFRA's spending following the rural payments system debacle. Although the Treasury has included in its contingency reserve figures (the AME Margin) £6 billion over the next three years for unforeseen expenditure the convention is that any expenditure beyond that provided for in Departmental budgets should be sought from savings from within the Department's agreed budget. Because a very large part of DEFRA's expenditure is subject to EU common agricultural policy rules DEFRA's scope for finding offsetting savings, if needed, is very limited.

  The Alde and Ore Association will continue to press for increased expenditure by Government and associated bodies to prevent flooding. Current policies, if replicated in our area, will put hundreds of homes in Aldeburgh, Orford and other local villages at risk. We firmly reject the Government's present policy for the Suffolk coast which effectively amounts to abandoning most of our coastal and river defences as part of the policy of "making space for water".

David Andren

Chairman

The Alde and Ore Association

October 2007






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