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I am pleased to be able to participate today for the first time in a debate that reflects my particular policy interests. Although I come to your Lordships’ House with a primarily business background, I have also worked for many years in housing, urban regeneration and energy—a set of interests that I have had the privilege to pursue as a director of Ofgem and, for the last five years, as chair of English
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Mitigating the effect of the built environment on our changing climate is a core challenge for local and central government. I am aware of and respect the fact that there are different shades of opinion in this House on the precise impact of climate change—of course, the Stern report most helpfully articulates the potential scale of that impact—but there can be little doubt that it is one of the most serious issues facing us.
Many of the headlines on the causes of global warming focus on emissions from transport and industry. Yet, in the UK, the built environment accounts for almost 30 per cent of carbon emissions and it has a major impact on issues such as biodiversity, water use, flooding, waste disposal and the extraction and use of natural resources and materials. That is why serious attention to mitigating its effect should be a clear priority for us all in the forthcoming Bill.
But I feel that the time could be right for that, because right across the professions in the built environment there is a growing realisation that, in order to tackle such issues, new and regenerated developments will have to be designed to meet much higher environmental standards. There are grounds for optimism that things are beginning to change already. There are three areas where progress can be said to be being made: on land use; on costs and methods of construction; and in energy.
Our sensitivity to land use has been greatly heightened in the past 10 to 15 years. Although only 11 per cent of the UK is developed, settlements are concentrated and densely populated, so naturally people are concerned about encroaching on greenfield and, especially, green-belt land close to where they live. It is tremendously good news that so much progress has been made since 1997 in reusing brownfield and previously developed land. Now, 72 per cent of new homes are now built on such land, making the very best use of existing infrastructure and services and often using land that was previously a blight on the environment.
Not far from this place, the Greenwich peninsula, once the largest polluted site in western Europe, is being transformed into one of the highest-quality new mixed communities in England. It is only one of many such examples. The Government's new policy on disposing of surplus public sector land has also been extremely helpful in making sure that publicly owned assets are used to best effect in delivering housing policy with the minimum impact on greenfield land. It is also worth noting that where new growth is essential—of course that is the case for economic development—we are often now delivering it in sustainable urban extensions. Upton in Northampton is a splendid example where the development has been designed, with the help of the excellent Prince's Foundation, with the community, to higher densities but with great public open space and groundbreaking design quality. There are numerous examples right across England.
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Our sensitivity to the costs of construction is now becoming much more acute—not just the financial costs, although those have risen by an intolerable 70 per cent since 1996, but the real costs in terms of resources, efficiency of supply chain and environmental impact. The move to more modern methods of construction is beginning to deliver better-built, better-value homes that are genuinely more durable and, critically, more affordable for first-time buyers and young families.
Noble Lords may be aware of the publicity that surrounded the Government's competition last year to build a two-bedroom house for less than £60,000. The so-called “£60k house” acted as a catalyst for housebuilders to try very different designs, levels of energy efficiency and construction methods. We are now seeing that work flow through into mainstream developments from volume housebuilders.
Our sensitivity to energy and use of resources is also in the process of being transformed. The question of self-sufficiency in energy is not simply about using resources differently. As the UK moves to being a net importer of gas, we need to be very clear about the steps that we need to take to assure security of supply nationally. That debate dominated our thinking during my time as a director of Ofgem, and the choices are now becoming more urgent as we have to decide on the right energy mix for the future. We need to make those decisions now within the clear context of the Stern report.
However, as my noble friend Lord Soley reminded us, great progress is being made more locally by some of the more progressive energy companies and volume housebuilders. Moves to microgeneration, to estate-based combined heat and power and to community-owned energy and multi-utility companies are now being regarded as mainstream components of good-quality new developments. We must have a regulatory regime that recognises that.
All those aspects come together in the vision for new settlements, such as that proposed at Barking Riverside and determined only last evening by the local authority. Such developments are facilitated by the right transport infrastructure—in this case, the DLR extension. Barking Riverside is entirely to be developed on previously used industrial land; it is to be built to a very high quality urban design; it will be a genuine mixed community catering for a wide range of housing need and demand; and, with the active encouragement of the Mayor, it is the most ambitious renewable energy plan yet devised in London.
We should remind ourselves that these new settlements are not abstract concepts. They are the homes and communities of the future. We owe it to the current generation to get it right in creating pleasant, safe, cohesive communities where people want to live and can afford to live. We owe it to future generations to get it right at a price that the planet can tolerate.
I am very grateful for the opportunity to make my first contribution in this debate and, in closing, I pay tribute to my noble friend the Minister for her role in tirelessly promoting the forthcoming sustainable buildings code, containing, as I hope it will, many of the ideas
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2.07 pm
Lord Plumb: My Lords, it is my particular pleasure and privilege to welcome the noble Baroness, Lady Ford, of Cunninghame in North Ayrshire, and to thank her for making the fourth maiden speech today. I can safely say on behalf of your Lordships that all have passed the test with flying colours and, in the case of the contribution just made by the noble Baroness, with great aplomb. It is always a pleasure to hear from people who have the experience of the noble Baroness, Lady Ford. From her CV, which I read this morning, she obviously has vast experience in commerce and in local government. We knew that that would give her the authority to speak so intelligently on issues coming from and related to the gracious Speech.
However, I find it interesting and rather intriguing that a Baroness from North Ayrshire—which I know extremely well, as I used to go to the areas of Lanark and Castle Douglas when I was quite a young man, many years ago—is now chairing the organisation English Partnerships. We have always realised that we can learn something from the Scots, and I fully concur with the Minister, who commented earlier on the importance of partnerships. I hope that we can learn something from the noble Baroness who has just joined us. We welcome her contribution and look forward to it continuing, as we know it will in one form or another.
My privilege today is to speak in this debate, which combines local authorities, transport, agriculture and the environment—many issues that are touched on in the gracious Speech. I declare an interest as a farmer who has been involved in farm and food organisations through the ages. It is most appropriate to link together local authorities, transport, agriculture and the environment. They are all related. We recognise—indeed, everyone has commented on this—the growing concern about climate change and the production of energy, and the fact that food miles and the threat of agri-terrorism are becoming major issues. One is pleased that the Government are prepared, as has been stated, to take a lead on this crucial issue, and I look forward to becoming involved in future debates on the Bill’s proposals.
If we look back over the years before we look forward, we may remember that the slogan used to be, “Why import it? We can grow it”—and grow it in this country. Now, as my noble friend Lord Dixon-Smith reminded us, the situation is changing. It is changing because production, particularly of grain, has gone down in relation to consumption. Indeed, there has been a 25 per cent reduction in wheat production worldwide. Therefore, we need to wake up to the fact that cheap food supplies are currently taken for granted, which affects the entire food market.
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There is ample evidence, which has been cited in our debates in this House, that crops can be grown throughout the world to produce biofuels. If we take set-aside out of the equation, we find that we have land in this country that is capable of making a substantial contribution to biofuels in general and perhaps to biodiesel in particular. Transport is therefore very much at the heart of the food and farming business. Given that the Animal Welfare Bill has now been completed, I hope that the Minister will not bow to pressure to change the laws on the transport of animals and increase yet again the costs of movement. Moving livestock, particularly sheep, from breeding areas to be fattened in the lowlands is an essential part of the farming business.
The welfare of animals is of concern to all of us. The Act that was passed in 1997 was a major step forward, as we saw it, to ensure the proper and safe transportation of livestock. I therefore make a plea to the Minister that the necessary care is shown and proper consultation taken to keep the balance right on those movements. Before reducing stocking density, therefore, serious consideration must be given to the economic need to transport livestock. We also need to be aware that, by removing through legislation farmers’ ability to bury their fallen stock, we could make the cost of transport and air pollution considerably higher and we could add to the environmental costs of destroying the carcasses. Again, this is a question of common sense and balance, and a way should be found to enable a farm to have a biodigester or something similar.
There is quite a lot more optimism in certain areas of farming, as we have heard. There are rays of hope, and words are being used that show that there is a much clearer light than there seemed to be about a year ago. One recognises the improvement in the marketplace for some products, particularly grain, which is a relief. But as my noble friend Lady Byford said, and indeed the Minister recognised, dairy farmers are the one sector that is of great concern. Dairy farmers are still going out of business at an alarming rate. My family have been dairy farmers for five generations, but have left dairying. It is a sad business when you are a farmer and you face that sort of situation, but it is understandable if you read the results of certain surveys.
The Minister mentioned the NFU survey that came out last week, which was quite optimistic. I shall quote from another survey from the NFU and the Royal Association of British Dairy Farmers, which revealed the evolution of farm costs—an increase of more than 2p a litre over three years. The 350 responses to their survey showed that, from an average herd size of 196 cows and 523 million litres of milk produced, farmers received 17.3p for a litre of milk over June, July and August, while the consumer price in the little supermarket not far from me in London was 79p for the same product. The survey of all those farms shows the loss to be 0.78p per litre and indicates a clear imbalance between the price that the producer is receiving and the price that the consumer is paying.
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Furthermore, the storms of protest over the delay in the single payment have cloaked the anomalies and injustices of the reformed CAP. We have already had fairly lengthy discussions and debates on this issue, and I do not want to dwell too much on it, but the anomalies and injustices of the reformed CAP cloud the issue in many areas. Many farmers who went out of dairying did so between the 2002 arable-year base and the 2004 dairy-year base, and they received less than they should have done had the historic basis been applied and, I stress, had the system been better understood.
The noble Lord, Lord Bach, said earlier that we had agreed to the hybrid system rather than the historic system. I could not have been in the Chamber when we agreed that, because I do not remember ever doing so. Nevertheless, we accepted that that was the situation at the time and that we faced a dilemma. Had we known then what we knew later, we would not have done what we did. Again, I ask the Minister what I asked him when the noble Baroness tabled a Question on the matter a while ago. It is remarkable that Germany applied exactly the same hybrid system as we applied but that their farmers were paid on the day promised. This is of great concern to us as we consider the viability of the agricultural scene. A different reference year compounded the problem, and the prevailing chaos prevented farmers from receiving the sort of advice that they sought.
The Minister has made it clear on many occasions—he has said it again today—that the Government support a common overall policy in Europe, but one that is simple to operate, does not over-regulate, and gets red tape off the backs of farmers, enabling them to compete effectively and to run profitable businesses. That is a great statement, which I have made myself on many occasions. If he can do that, I shall certainly make my contribution to his statue now or even support his pension—whichever he would like first.
It would, as we all know, be impossible to achieve uniformity throughout Europe, or even within a country, as conditions are different, but the real question is whether we can achieve the right balance between the payments that are made under Pillar 1 and those that are made under Pillar 2. I will not go into great detail, but farmers have not got used to the single farm payment on land farmed, but they are getting used to it and, I think, adopting the right approach to it. When it was first created, the system of subsidies was designed to stop food prices fluctuating, guaranteeing cheap food to the consumer. Now the supermarkets are more in charge and farmers have to, and are, rising to the challenge.
Pillar 2 is interesting. As we know, farmers are stewards of the countryside and taxpayers should expect to make their contribution to the good agricultural and environment conditions, or GAEC. I believe that, over a period of years, the industry has recognised this. The Linking Environment and Farming programme, which has the same objectives as the GAEC, is working for many farmers and on farms, and many people are interested in it.
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The issue is one of trust. Recently, a farmer told me that when he telephones the SPS branch of the RPA, it shows a lack of trust in his queries and that often, ultimately, he feels like a beggar or a criminal. He said that dealing with environmental issues is much easier because that side has a totally different attitude. So farmers are responding. We need to know that the Government are committed to fulfilling their obligations on the payment and to reducing red tape in order to compete in the global market. Red tape never made anything; it only adds cost to our trade balance and reduces the profitability of the industry. I hope therefore that the Minister and those who are responsible will note that there is a lot of enthusiastic support for removing red tape. We must take notice of the recommendations and sensible proposals of stakeholders—the NFU and others—many of which I have seen. Farmers have the ability to compete, but many barriers need to be removed and commitments need to be made by the Government—not just hollow promises.
2.22 pm
The Earl of Glasgow: My Lords, I, too, congratulate the noble Baroness, Lady Ford, on her excellent, extremely intelligent and sensible maiden speech. It is very gratifying to know that she comes from the same part of Scotland as me. I hope that we may soon have a cup of coffee in my home town of Largs and that we will have a strong acquaintanceship.
The Government say that they will introduce a draft Bill to tackle road congestion and to improve public transport, which I am sure we are all pleased to hear. However, what is that likely to involve? Devising more and different ways to tax road users may be necessary, but it makes sense only if alternative and cheaper forms of transport are provided as alternatives to using the car. Surely, that means improving public transport. I do not know what the Government mean by public transport any more. Are buses and railways public transport? I heard that they have all been privatised. Whatever the definition, travelling by rail is becoming more and more expensive, which is getting very worrying.
I hope that the Government will give a higher priority to transport. It should be right up there with education, health and global warming. As the noble Lord, Lord Rooker, acknowledges, transport affects everyone’s daily life. It is simply the process of getting from A to B in the most practical way. It affects most of us nearly every day, is getting ever more frustrating and is even more stressful. Apart from concessions to us elderly and the superficial attractions of cheap air travel, it is getting ever more expensive. Incidentally, I have been abandoned three times now by Ryanair and have finally learnt my lesson about cheap air travel.
The aggravation and expense of getting from one place to another, the congestion and the hassle, the security queues at airports, the inability to get a seat in a crowded train and even the risk-taking of cyclists in our inner cities are serious symptoms of our age, which must be given the highest possible government priority. Simply imposing more costs on motorists will
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Unless a completely new, non-polluting form of transport is invented in the next few years, we will have to fall back on the railways. Our railways service has improved a little in the past few years and many more people are using trains. It seems that more services are more reliable and punctual, and that some old rolling stock has been replaced. As my noble friend Lord Bradshaw has already stressed, the greater number of train users has thrown up other problems. In some cases, there is intolerable over-crowding and there is not enough capacity on some of our congested routes. Rail travel is no more convenient than it used to be. There are not necessarily any more trains, new car parks at stations or better security at more isolated country stations, and the cost of travel keeps increasing.
Surely, the only answer is massive investment in the railway network, which includes a new high-speed rail service from the south to the north of England and Scotland, as my noble friend has said. We should aim for a situation where internal flights in Britain are no longer necessary or desirable. People should be able to get to their destinations faster and more comfortably by train, which would mean that, unlike air travel, we would not have to take our shoes off or have bottles of water confiscated.
Soon, a Government will have to have the foresight and courage to commit themselves to a huge investment in the railways, although the benefit will not necessarily be apparent for 15 or 20 years. Alternatively, and better, they must create incentives to encourage the private sector to invest in such a long-term venture. At the very least, this should be a time to expand our railway network. Yet, as my noble friend Lord Bradshaw pointed out, there are signs that in some parts of the country the service is contracting. For instance, from Glasgow—the fourth-largest conurbation in Britain and now a major tourist destination—there is soon to be no direct rail link with the new cross-country service. It will no longer be possible to go from Glasgow to the West Country without changing trains, probably at the ever more congested Birmingham New Street, which both my noble friends mentioned.
The Government say that they want to improve our rail service to accommodate the ever increasing number of rail passengers, yet there are these sinister examples of it going in the opposite direction. I believe that major investment in expanding our rail service is the only long-term solution to our growing transport problem. We need such long-term decisions. I hope that by the time we come to debate the draft Bill, the Government will have come to the same conclusion.
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2.28 pm
Lord Harrison: My Lords, I, too, welcome the maiden speeches today, especially those by the two maidens on this side of the House. In today’s debate on the environment and local government, I should like to emphasise the need for strong, secure, stable and prosperous communities. I will not deal directly with the overarching themes of the Climate Change Bill or local government reform, but my message from Cheshire, and from the soundings that I take, is: please sort this out because we need resolution.
I want to talk about what can be done practically at local level to achieve the laudable objectives of protecting the environment and modernising and incorporating local government. The two subjects I shall address are the work of the Cheshire Landscape Trust, of which I am a proud trustee, and the successful but silent industry of tourism, where the influential role played by local authorities helps to secure and strengthen local communities. Tourism, too, has to face up to environmental challenges. I call it a silent industry because we do not hear it talked about much in this House. Indeed, although my noble friend Lord Rooker, in his very good opening speech, said a lot about farming, tourism has been just as much afflicted by BSE and other problems.
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