Hard on the heels of opening up the processing of planning applications to the private sector comes the ‘opportunity’ for private water companies to now deliver and be responsible for flood defences.
Water minister Rory Stewart has insisted private sector investment in flood defence is a “huge opportunity” that hasn’t been fully considered.
Speaking to water companies at Water UK’s City Conference, Stewart said: “Clearly we ought to be smarter about thinking about how we work with water companies, and I’d be really interested in ideas coming forward from you about ways in which you might see a self-interest in contributing to flood schemes.”
He added that, although the government would contribute £2.3 billion over the next six years, “we should leverage much more initial money”.
“The water sector is one clear way because obviously these floods cause chaos for your pumping stations, chaos for your sewerage etc,” he said.
Few planners are aware of the debate going on around who provides the defences – but central to considering the acceptability of any site for new housing or in fact any development is the risk of flooding. Currently with the Environment Agency this responsibility could be transferred it seems to private companies. The implications for the planning process are only now starting to be considered – well at least they are by us at ethical partnership!
At the same event as the minister South West Water a representative agreed, saying: “There’s not enough investment and, despite the brave words from government, there will never be, in my opinion, enough investment from the government, it has to have some private sector finance.” and added that flooding was a “hot potato”. “We will need a new way forward and one day we will have to come back to this issue.”
Last October, Ofwat chief executive Cathryn Ross opened the door to water companies taking on responsibility for co-ordinating and implementing flood defences, suggesting they are “in the frame” for taking over from the Environment Agency on delivering flood schemes.
There are mixed views in the sector on roles of water companies in flood defence. One of the UK’s biggest water companies, Severn Trent Water, has said it supports the idea of a debate on water companies’ role in flood defences. However, Anglian Water has argued that partnerships with councils can work just as well, without the need for a “sweeping reform of ownership and responsibilities”.
The debate has been heightened by the well known economist Dieter Helm calling for a “radical rethink” on flood defence including greater responsibility for water companies.
The government has pledged to review flood defence spending, but the Department for Environment, Food and Rural Affairs recently said there are “no plans” to review water companies’ roles on flooding, well perhaps not this week!