Water Industry (Financial Assistance) Bill

My hon. Friend is absolutely right. It is worth reminding ourselves of the kind of project that we are talking about. Subsection 1(a) refers to"““the construction of water or sewerage infrastructure””" and subsection 1(b) refers to"““existing water or sewerage infrastructure.””" We have therefore narrowed this down to a particular area of work. Subsection (2) refers to"““exceptionally large or complex works.””" Such an item of expenditure could not just sail under the radar of due parliamentary process. I appreciate the comments of my hon. Friend the Member for Penrith and The Border (Rory Stewart) who eloquently described the necessity for smooth operating in such circumstances, but we are talking about major projects that cannot avoid high levels of scrutiny, and I cannot see that adding an extra tier to that process would be effective. In the event of the statutory instrument being rejected by Parliament, we would have to return to the negotiating table and reopen discussions. That might put in jeopardy the interest of investors that had previously been attracted to the project. That would add further costs, call into question the project's viability and ultimately delay action to tackle the significant environmental problems that, in the case that is the driver for the Bill, are being caused by excessive sewage discharges into the Thames. That would, in turn, increase the risk of infraction fines against the UK for non-compliance with the urban waste water treatment directive. In addition to the practical problems that I have described, I do not believe that the additional layer of scrutiny is necessary. As I mentioned when we discussed the proposed amendments to clause 1, putting a further requirement in the Bill for detailed approval in relation to the use of financial assistance powers is unjustified when there are existing mechanisms for scrutinising and challenging the exercise of financial powers by Departments. In addition to Treasury monitoring and control of expenditure, Government spending is subject to the usual estimates procedure. As always, DEFRA spending would be subject to the scrutiny of the Environment, Food and Rural Affairs Committee and, if it so wished, the Public Accounts Committee. Given the significance of the Thames tunnel project and the significance that any project that fitted the wording in the Bill would have, I have no doubt that hon. Members will be especially vigilant in ensuring that, as a project proceeds, the House will give proper attention to any events where scrutiny is necessary and appropriate. We have already made statements to the House on the Thames tunnel project and have published several documents explaining our involvement in it and the progress to date, such as last November's publications on the strategic and economic case and the cost-benefit analysis. I am sympathetic to the concerns of the hon. Member for Luton South about jobs and growth, as are all hon. Members. Jobs and growth are central to the Government's agenda. I agree that large projects such as the Thames tunnel have a significant role to play. As I explained on Second Reading, Thames Water estimates that the project will directly employ about 4,200 people in construction and related sectors. I understand that Thames Water has 40 apprentices in training, and that future intakes are planned to maintain that number. Thames Water's tunnel team actively support Crossrail's Tunnelling and Underground Construction academy, to which the hon. Gentleman referred, which is currently training and gaining employment for 70 apprentices a year. The Thames tunnel project is also committed to following the Crossrail model of specifying in its contracts the number of apprentices who will be employed in the contractors' work force. I hope that that gives him the reassurance that he needs.