Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 100-119)

ENVIRONMENT AGENCY

27 JUNE 2007

  Q100  Mr Bacon: Yes and the foundations stay in place. I understand the difference. I am just asking, without signing your name in blood, you can always send us a note, what roughly do those barriers cost?

  Mr Kersley: It is about £180,000.

  Q101  Mr Bacon: To buy them?

  Mr Kersley: Yes, to buy them.

  Q102  Mr Bacon: So you spent £180,000 buying them but last night you did not deploy them, so Hilton Road Worcester flooded and it would not have flooded, would it, if you had deployed the barriers?

  Mr Rooke: My understanding is that the road flooded, but no property flooded. We did deploy sandbags. What has happened in that particular case is that a tributary of the Severn was higher than was predicted by the models that we use to determine whether or not to deploy the defences. We have to deploy them many hours in advance because of the time it takes to mobilise and do all that. At the time to take the decision based on the forecast, the decision was taken that it was not necessary to deploy them. Because one river was higher than had been predicted by the model and there was some flooding, temporary sandbagging was taking place and my understanding from the briefing today is that there was no flooding to property.

  Q103  Mr Bacon: The Environment Agency was quoted on BBC television news at lunchtime as saying that what had happened at Worcester with the Teme and the Severn was totally unprecedented. Is that an accurate quote? Is it the Environment Agency's view that what has happened in Worcester is totally unprecedented?

  Mr Rooke: Certainly the tributary was higher than what has happened before and our models did not predict that accurately.

  Q104  Mr Bacon: I was talking to people in Worcester at lunchtime today who said it was not unprecedented and in February 2004 it was worse.

  Mr Rooke: Yes, that is the case, but on this particular event in terms of whether to deploy or not, given we have to take this decision a considerable number of hours in advance, the decision was taken not to.

  Baroness Young of Old Scone: May I just say that temporary and demountable defences are not necessarily the answer to many situations? They are pretty expensive because they are heavy on staff and storage costs and maintenance for the future. Although we have a number of demountable defences in place and though we have temporary defences available for specific situations, they are not necessarily going to be the panacea. Many communities are looking to them in the absence of a proper flood defence scheme and we do not want to encourage them to believe that they are the best answer.

  Q105  Mr Bacon: One last question on paragraph vii, page 7, where one of the recommendations is that you should: "Assess the long term suitability of the current computer database". This Report was published in mid-June, so not that long ago, but you have known about this recommendation for a while when the Report was in draft. Where are you in terms of assessing the suitability of the current database in terms of either improving it or replacing it?

  Baroness Young of Old Scone: I should say that we have made substantial improvements on the database over the last two or three years to the point now where it is actually a very effective data repository for our flood defences and can generate a significant number of management reports to us to manage more effectively, but we are aware of the fact that the next generation of systems is available and we will need to look at the longer term, how we can move to the next generation.

  Q106  Mr Bacon: Are you saying that the sentence: "The database... or the work management system... it cannot hold data on the maintenance history of each flood defence or clearly link the inspection results to records of maintenance carried out" is no longer true?

  Mr Kersley: It is true. It was built as an asset register and we have continuously improved it and we have completed a review of the scope to which we can improve it further. Further work is planned this year and in fact some progress has already been made which Lady Young alluded to there. In addition to that we have scoped out further feasibility work, which we shall be doing to complement our asset register, on how we can further develop it and add further tools in so we end up with a full asset management system. That work is due to report back in the autumn.

The Committee suspended from 5.25pm to 5.32pm for a division in the House.

  Q107 Mr Williams: On page 6, paragraph 5, it says: "...the Agency has only recently adopted a risk-based approach". What does that mean?

  Baroness Young of Old Scone: In terms of our maintenance system, it means that instead of scoring our assets as either very good, good, fair, poor or disastrous, we now look at a whole system and try to establish what the quality of the asset is that will be fit for purpose. So in some low risk situations a fair condition of assets is fine because it is not a huge risk if it fails. In some high risk systems we would want them to be very good, so we take a fit-for-purpose view, a risk-based view.

  Q108  Mr Williams: This sounds quite a useful innovation. How recently have you adopted it?

  Baroness Young of Old Scone: Tim is the man who has introduced the vast majority of it.

  Mr Kersley: We have been working on this for two years now.

  Q109  Mr Williams: Two years? How long has your organisation been in existence?

  Baroness Young of Old Scone: This is our eleventh year in existence.

  Q110  Mr Williams: So for the first nine years you have operated without a proper risk analysis?

  Baroness Young of Old Scone: For some considerable period we did not have the full responsibilities that we do now. We only acquired them sequentially. Since the severe floods in 1998 we have acquired more responsibilities and as a result it is only within the last two to three years that we have had the ability to make judgments.

  Q111  Mr Williams: Did you not say it took two years, you have worked on it for two years, so that means for nine years you did not work on it and you worked on some jottings on the cuff for what the priorities might be.

  Baroness Young of Old Scone: Up until 2004-05 priority decisions were made within budget by a series of autonomous regional defence committees spending what they saw as their own money because it was raised by the local authorities who were the primary members of those flood defence committees.

  Q112  Mr Williams: This is chaos, is it not? It was and it probably still is.

  Baroness Young of Old Scone: That is precisely the point we made after the 2000 floods and indeed were successful in getting Government to change the systems that we had.

  Q113  Mr Williams: After seven years of existence you discovered something you should have identified within the first year or two years of existence. Why did it take all these extra years to start developing a risk analysis.

  Baroness Young of Old Scone: I am afraid that in the early stages of the Agency's existence, which I cannot speak of because I was not there, the role of the Agency was not as full as it is now. In fact the supervisory duty which meant that we had to take—

  Q114  Mr Williams: Do you mean they could not do it?

  Baroness Young of Old Scone: It meant we had next to no powers.

  Q115  Mr Williams: You may not have had powers, but you could have started a risk analysis, could you not? Let us ask a simple question. How do you deal with risk without a risk analysis? You are dealing with risk, are you not?

  Baroness Young of Old Scone: Of course one must remember that the whole philosophy of risk-based maintenance and capital funding is a comparatively recent philosophy across all of those organisations which deal with asset management.

  Q116  Mr Williams: That is strange. If you talk to an insurance company, they work out the risk and they work out your premium based on the risk. It is not a new concept. Whoever set up this organisation should have started with the proposition that the risks should be evaluated and the priorities relating to risk should be identified. Is that not the first question that anyone should ask?

  Baroness Young of Old Scone: Let me describe the situation in one of the parts of the country which is currently flooded and where the quality of our assets is not as high as we would like.

  Q117  Mr Williams: I am afraid you are going to depress me. Go on.

  Baroness Young of Old Scone: It that area the flood defence committee chose as a matter of policy to spend its money on creation of new defences rather than maintenance of old defences on the basis that, if it did not maintain its defences, they would decay and they would have a stronger case for getting more capital funding for new defences. We had no means of preventing that because it was local authority money disbursed by a regional committee.

  Q118  Mr Williams: Perhaps if they had been better informed on better ways of doing it and if your organisation had identified risk as a surprisingly important thing earlier on in its existence and started giving advice to the organisations concerned, they might have recognised the use of risk analysis. Is that not so?

  Baroness Young of Old Scone: I am sure that in the work that we were doing on capital schemes full account was taken of risk because that was one of the bases on which we prioritised capital schemes for the future and they were handled on a national level. They were approved at Defra level. On maintenance, it is only as we have been able to record all the assets that we have—and we have had a huge task because we were given responsibility for twice as many assets as we had in the early part of the decade, so there was a big task of simply establishing the register of these assets, understanding what the assets were, collecting data on their quality—it is only as we have been able to get that information into shape, that we have been able to take a risk-based approach.

  Q119  Mr Williams: What is the good of you doing risk analysis now then, if they all do their own thing?

  Baroness Young of Old Scone: They do not. The Government mercifully changed the system at our instigation.


 
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