Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

ENVIRONMENT AGENCY

27 JUNE 2007

  Q60  Mr Dunne: I am sure all Members of Parliament would be keen to encourage take-up of awareness amongst the general population. Undoubtedly in my constituency, which has suffered particularly badly, I anticipate there will be an increased interest in this service. I would urge you to do all you can to publicise it. Could I also point out that in connection with this week's events, in Ludlow I understand that the warning code was issued at 12:20, 20 minutes after midnight? Of course many of the means of communication would not actually be of much use; not many people are on their emails at 20 past midnight, unlike many MPs who are. I just urge you to reconsider your cover in high risk areas at times of the night like that. Just turning to the Severn Basin, I am aware from appendix 1 that you have a pilot plan now completed and approved for the Severn Basin and that also the responsibility was taken over for critical ordinary water courses for the Severn and its tributaries. Are you aware whether the River Teme and the River Clun were a part of your responsibility or not?

  Baroness Young of Old Scone: The River Teme certainly is.

  Q61  Mr Dunne: Could I ask you to confirm that to me? I believe the Clun is now part of your responsibility, but I would like you to confirm that[6]. If so, what does this mean in relation to responsibility for clean-up costs where you are responsible for maintaining the ordinary water course and flooding occurs? Does it have any impact?

  Baroness Young of Old Scone: Is this clean-up of the floods?

  Q62  Mr Dunne: The impact of the floods for waters where you have responsibility.

  Baroness Young of Old Scone: We do not have any responsibility.

  Q63  Mr Dunne: You have no responsibility?

  Baroness Young of Old Scone: No responsibility.

  Q64  Mr Dunne: We have had a useful note from the NAO which indicates that of the high risk category defence systems 46% are not at target, that is 18 individual systems. What are you proposing to do about those systems, particularly where there has been evidence, as this week and last week, of system failure?

  Baroness Young of Old Scone: We are not aware of system failure in our systems in your constituency at the moment. We know that the bridge collapsed, but that was not one of our flood defence structures.

  Q65  Mr Dunne: Excuse me, just to be clear then, incidents like the collapsed bridge had not been identified as at risk under your management.

  Baroness Young of Old Scone: I am assuming that the bridges are the responsibility of the Highways Agency or the local authority and therefore would not be seen as a flood risk management structure of ours. It may well be that as part of their contingency planning, they should have taken account of that, but this has been a very high impact event and we know quite often from our own work that the ability to predict the impact of floods in these structures is comparatively unpredictable when we have these high levels. Our knowledge of your systems is that all of your high risk systems were actually up to standard. If you have different information from that, perhaps we should write to you.[7]

  Q66 Mr Dunne: Could I ask you to look at the material that the NAO have provided for us by constituency, which indicated that 46% within the high risk category were not. In relation to the pressure on house-building, which we know is nationwide, you are a statutory consultee for planning applications. What evidence do you have that concerns that you express to planning committees about new housing applications are respected and if they are not, what are you going to do about it?

  Dr King: Firstly, we saw considerable strengthening of the legislation in 2001 with the introduction of PPG25 and we report annually on local authorities' performance and identify those local authorities that went against our advice. We saw consistent improvement year on year and if you look at 2005-06—which is the latest figure we have as we are just "QAing" the most recent data—ten major developments went ahead against our advice. From December last year, we have seen a strengthening again with the introduction of PPS25, that not only made the Agency a statutory consultee but also gave us the power to request call-in.. The PPS25 has strengthened in a whole variety of different ways and we will Report on that at the end of the year. We have seen an improvement.

  Baroness Young of Old Scone: The one thing we do need to be aware of in terms of the Planning Bill when it comes through is that the high level planning statements have got to be flood risk assessed and indeed strategically environmentally assessed, if they are going to be valid. If we simply see the high level planning statements as a means of ignoring some of these real risks to property and people, it would not be a good idea.

  Q67  Mr Wright: May I start at the beginning? Paragraph 1.1 states: "Large parts of England are at risk of flooding from rivers and the sea. Areas particularly at risk include the Humber corridor". Yet we turn to appendix 1 on page 28 and Hull and Coastal Tributaries Catchment Flood Management Plan is not going to be approved by the regional director until July 2008. We have seen real devastation in Hull over the past week and I understand that somebody has died as well. Why are you not doing more to make sure there is a coastal management plan in place there?

  Dr King: The first point I should like to make is that we shall certainly deliver all of the catchment flood management plans by December next year and hopefully before that. Catchment flood management plans and shoreline management plans are a very important part of strategic planning but they are not the sole tool that we have at our disposal, nor does it mean that in the absence of catchment flood management plans that there is no activity because schemes do go ahead and have gone ahead in the absence of the catchment flood management plan. We do have a Humber strategy that has approved in principle some £232 million over the next 25 years, so quite a lot of strategic planning has already gone in. Certainly we have not delivered the catchment flood management plans, but it would be wrong to think that that is the sole tool that we have in terms of our strategic planning.

  Baroness Young of Old Scone: By way of illustration, we were looking recently at those local authorities with the highest proportion of their population in flood plain and at risk and Hull has one of the highest proportions of its population in the country in the flood plain but was one of the best protected. Alas, some of the things we are seeing at the moment are not because we do not have defences, but because we have just seen an event that is very, very extreme.

  Q68  Mr Wright: It has been mentioned by the Committee Members before, but is it not the case that with climate change, with greater unpredictability, things that would have been classed as a one-in-100 chance are now going to be much more frequent? I am very much struck by the fact that you are saying spending cuts have had a direct impact on your ability to carry out flood defence and maintenance, yet it seems to me the whole theme of this Report is that you are not focusing on the high risk areas. You are doing it along the traditional way that you have done before and you are not focusing on the areas most at risk. I do not get any sense of urgency that you are going to focus on those high risk areas. How do you answer that?

  Baroness Young of Old Scone: Until about three years ago we had no means of moving money across the country or really shaping priorities because they were very much shaped by independent local flood risk management committees. Now that we have had for the last three years the ability to move money, we are steadily moving our funds towards high risk systems and the highest priorities. Indeed at the moment we are only spending about 8% of our maintenance funding on low risk systems and some of that funding is because, if we do not do some of the low risk system work, it can have an impact further down the river. For example, if we do not clear weeds in a low risk system and they then all go down the river and catch on the trash screens of the high risk systems, we immediately start to have problems there. Now that we are able to make these movements between capital and maintenance and move money across the country between different parts of the country, we are able increasingly to focus on those high risk systems.

  Q69  Mr Wright: Is organisation hindering you? Figure 4 on the right hand side, "Flood risk management activities", says: "...general supervision over matters relating to flood defence" seem to be the responsibility of the Environment Agency and yet the Report says that many of the difficulties arise from the fact that a lot of flood defences are owned by third parties. The Secretary of State in his statement to the House yesterday said the local authorities are responsible for the short- and longer-term recovery effort in the affected areas. Mr Curry talked about joined-up government. I do not get the sense that there is an element of joined-up thinking with regards to this. The Committee considered and produced a Report on water management and I would have thought the Environment Agency would have been much hotter in trying to get water companies, in line with Ofwat, to deal with deficiencies in pipes, because that must have a risk. I would have thought you would have been having much closer liaison with local authorities to make sure things were in place. Dr Pugh mentioned urban areas. I had a flood in Hartlepool three or four years ago, exacerbated by the failure of gulley cleansing. You do not seem to be talking to various agencies. Local authorities do not seem to be talking to you as much as they should. Why is that, because you are compromising people's homes here?

  Baroness Young of Old Scone: We work very closely with local authorities and traditionally the focus has very much been on the major floods from rivers and from the sea. It is only as increasingly we have had these stormy events and also as a result of development and more concrete, where drainage is becoming a major problem which it was not previously, that we really started to press for these long-term drainage plans to become statutory, to become part of legislation so that we can ensure that the local authorities, development bodies, planning authorities and the water companies work together to resolve the problems of flash floods and inadequate drainage.

  Q70  Mr Wright: Do you think the Environment Agency needs more powers to compel these third parties to do more for flood defence? Paragraph 2.7 mentions the River Thames legislation and obviously I understand the importance of London as a commercial and economic centre, but do you think that should be used so that you can actually force local authorities or water companies to do more?

  Baroness Young of Old Scone: Generally speaking when we are talking about third parties local authorities and water companies are not the issue. It is individual private land owners who have properties on the edge of rivers, part of whose property forms the flood defence there and often it is quite difficult to track down who is actually the owner. Once we have done that, we need to make sure that our systems inform them of any deficiencies. We have done that on a risk basis to date. We want to up the pace of that and then we need to find out whether the very modest levers we have at the moment and indeed persuasion can make those third party owners who are not willing to bring their defences up to standard and who are part of high priority systems and are a real part of that risk, to take action. If we cannot get them to take action, we may well have to call for further powers.

  Q71  Mr Wright: I think the theme of this Report is that you do not concentrate on risk areas or high risk areas. Paragraph 2.11 states quite starkly: "There appears to be little relationship between the amount of revenue funding allocated to each region in England and risk of flooding". The Chairman mentioned this as well. Again, I do not see any evidence that there is a relationship between mitigating actions commensurate with the level of risk.

  Baroness Young of Old Scone: May I turn you to table 11, which is a quite difficult table to understand because it is about proportions of maintenance expenditure? You need to take the grey bar, which is high risk systems, and the bright blue bar, which is non-system specific maintenance expenditure, together. Many of these bright blue bars are high risk systems.

  Q72  Mr Wright: Why is that not identified as such then?

  Baroness Young of Old Scone: The definition of a non-system specific maintenance is that it covers a number of systems, so it is difficult to chop it up and decide how to apportion it across systems. Some of it will be on medium and low risk, but not much. Most of it we are pretty sure is high risk stuff.

  Q73  Mr Wright: In my own area, the North East, 24% is on the high risk, but there is an enormous amount in terms of the bright blue bar. Can you reassure me that work is being done with regard to flood defence maintenance that is directly proportionate to the level of risk?

  Baroness Young of Old Scone: It is not yet completely proportionate to the level of risk because we are moving towards that as we are able to understand the level of risk, as we know about our assets better and also as we are able to move money.

  Q74  Mr Wright: That is hardly reassuring is it?

  Baroness Young of Old Scone: If you take the bright blue and the grey, with the exception of one region, we are now spending in excess of 74% of our maintenance funding on high risk systems.

  Q75  Mr Wright: How do you know what is being done anyway because paragraph 2.13 says: "We were assured that the issues identified during the inspection were dealt with" but there is no audit trail. There is no saying: "Yes, that has been done; we have mitigated the risk through this action". You say that your systems are adequate: your systems are rubbish.

  Baroness Young of Old Scone: Our systems are improving; they are not rubbish. They are good and improving and Tim will tell you how.

  Mr Kersley: I am just going to reinforce the point that local records are held to confirm that that is the case, that the work has been carried out where it was directed to be carried out. The problem is that we did not have a means on our asset register to hold a centralised record of that and we have plans afoot to insert a field in the database to enable that to be locked off and centrally recorded.

  Q76  Mr Bacon: I did not hear the answer to the question which Mr Dunne asked about what your budget is now. You turned to Dr King and it sounded like you said £500 million, but then it sort of trailed off. Did you just mean £500 million?

  Dr King: It is of the order of £500 million.

  Q77  Mr Bacon: Could you turn to page 13 where there is a figure 7 listing various different kinds of expenditure? Development control and regulation is £12 million; building new and replacement defences, £162 million; then maintaining existing defences is £176 million; administrative costs, £64 million; flood warning and incident management, £39 million. That adds up to £453 million and it says at the bottom: "Figures only include expenditure funded by the Department for Environment Food and Rural Affairs and exclude `local levy' expenditure funded by local authorities through the Regional Flood Defence Committees". Am I to take it then, because paragraph 1.8 refers to £483 million, not £453 million, that the money funded through regional flood defence committees is the difference, the £30 million? Is that correct?

  Dr King: It is in the order of £25 million from the local levy.

  Q78  Mr Bacon: So if we look at paragraph 1.8 it says "Expenditure by the Agency on flood risk management has increased ... to £483 million in 2006-07 (including the local levy)" you are saying the local levy in that sentence is £25 million.

  Dr King: Around £25 million

  Q79  Mr Bacon: Not £30 million.

  Dr King: It is in the order of £25 million.


6   Note by witness: The rivers Teme and Clun are main river, and therefore our responsibility. Back

7   Note by witness: We do not hold such data at parliamentary constituency level and the information provided to the NAO was given by Environment Agency totalling data Area by Area. Within the West Area of Midlands Region, there are currently 34 High Risk Systems, of which 59% are at target condition. Back


 
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