Select Committee on Public Accounts Fourth Report


Conclusions and Recommendations


1.  The Environment Agency set a target to maintain 63% of flood defence systems in target condition by March 2007, but only managed to maintain 57% of all systems and 46% of high risk systems at target level by that date. The Secretary of State for Environment, Food and Rural Affairs announced on 2 July 2007 that the total annual budget for flood risk management would rise to £800 million by 2010-11 from £483 million received in 2006-07. The Agency needs to target its resources based on thorough assessments of the priority areas. It should categorise the state of each group of flood defences, according to whether they are high, medium or low risk systems, and estimate the increased risk of flooding where they are not in target condition.

2.  There are significant shortcomings in the Agency's ability to prioritise expenditure on the highest risk areas and assets. The risk to life and damage to property were well illustrated by the floods in summer 2007, but the Agency has not targeted high risk flood defence systems adequately, and two areas spent less than 40% of maintenance funds on such assets. The Agency should allocate maintenance funds to each of its areas on the basis of the estimated risk of flooding and the potential cost if a flood were to occur.

3.  Too much of the Agency's construction funding in 2005-06 (£76 million) was spent on programme and project development. The Agency spends a significant percentage of its funding for improvements on development, some of which goes on schemes which are unlikely to go ahead. Since most funding is already committed to existing projects and relatively little is available in any one year for new project starts, such development can put scarce resources into schemes which have little prospect of being built while raising false hopes in the affected communities. Detailed planning work on each proposed scheme should only be undertaken once the Agency is reasonably confident that the project is likely to go ahead.

4.  The Agency is unlikely to meet its earlier commitment to complete Catchment Flood Management plans by 31 December 2007. These plans should be reviewed to identify structures most at risk: some of the worst damage in the summer floods affected structures in areas where plans had been completed but the structures not identified as at risk. The plans are designed to set out the policy for managing flood risk in a catchment over the next 50 to 100 years, taking into account various factors over the long term, such as climate change and property development, so that decisions about construction and maintenance can be made in the context of the catchment as a whole. In the face of the heavy costs and disruption from recent flooding this delay is unsatisfactory, and any further delay beyond the Agency's new estimate for completion of the work by December 2008 would be unacceptable.

5.  The different bodies involved in water management appeared quick to absolve themselves of any responsibility for the floods in 2007 and there is little evidence of collaborative working with the Agency to minimise the risks of such events. Developers, local authorities, drainage boards and water companies are involved in enhancing drainage to handle rising demand, whether from rainfall or new development, but proposals to improve drainage to hold excess water have been held up by discussions over the responsibility for subsequent maintenance work. The Agency should lead in preparing and agreeing local drainage plans which set out the specific responsibilities of all relevant parties. It should seek new powers if the deadlock cannot otherwise be broken.

6.  The Agency's asset database should provide a national picture of the state of flood defences, but it is cumbersome to use and the difficulties in extracting timely performance data are hindering efforts to keep these defences in their target condition. The Agency's inspectors use the database to record their inspection results, but local managers were unable to use the computer system to subsequently check whether faults identified had been remedied. The system can fail when users seek to extract large volumes of data, and only 80 local authorities have used the database to monitor the state of their non-main river defences. The Agency should establish whether the technical problems can be overcome to allow users' ready access to the data. If not, the Agency should prepare a business case for developing a new computer system more suited to user requirements.

7.  The Agency does not routinely notify third party owners of flood defences of any defects found. The Agency should formally notify all third party owners of the remedial action needed to maintain defences in appropriate condition and follow up whether necessary action has been taken. In the wake of the floods this summer, the Agency should also consider whether there is a case for extending its powers to compel third party owners to take action.

8.  The Agency's warning system to notify residents of the imminent risk of flooding relied on email and telephone messages, but such warnings may not be appropriate late at night or early in the morning if residents are asleep. As part of its lessons learned review, the Agency should establish whether residents received adequate warning of the risk of flooding and whether existing methods of communication were sufficient.


 
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Prepared 18 December 2007