My Lords, I thank all noble Lords who have spoken in this debate, and I have listened carefully to the informed and thoughtful contributions from all sides. They have well represented the two sides of the dilemma. On the one hand, we recognise that water abstraction plays a vital role in the economy, generating power, driving industry and helping our farmers to grow food. On the other hand, we recognise that unsustainable abstraction can do serious environmental damage, particularly by changing the natural flow of water, with lower water flows and reduced water levels, and ultimately contaminating water resources, thereby affecting fish and wildlife and in some cases contaminating by allowing salt-water intrusion.
I think that we all accept that an abstraction licence should not give an automatic right to extract water whatever the environmental consequences. As my noble friend Lady Young of Old Scone said, water is a shared resource. The actions of one individual or business can have devastating effects on another farm or community downstream, so we have to manage it on a collective basis. In this regard, I welcome the
amendment in the name of the noble Lord, Lord Chidgey, which would require a licensee to measure water quality in an aquifer and share that information publicly. That is all part of that collective management of a very scarce resource.
We also have to recognise that climate change has already varied the supply of water since many licences were granted, and all the Government’s indices point to looming water shortages. We accept the point made by several noble Lords that the rights experienced by a water company are of a very different scale and impact from those experienced by farmers. It is on this latter group that we are focusing today.
The Government place great emphasis in their proposals on the Environment Agency managing the changes to licences through local consultation. In his letter to us of 10 June, the Minister said that
“we expect the Environment Agency to work closely with the affected licence holders before using these measures.”
But when I visited Norfolk with the NFU a couple of years ago, this was far from the case. Their licences, which underpinned a thriving horticultural sector producing fruit and vegetables for the UK market, were under imminent threat and, despite numerous requests, there was no dialogue with the Environment Agency—indeed, at one point, I even got the noble Lord, Lord Gardiner, involved to persuade for some consultation to take place. As we discussed in the earlier debate, the Environment Agency is struggling to meet all its statutory obligations because of the funding crisis. I hope that the Minister has received sufficient assurance that the Environment Agency has the resources to manage the renegotiation of all the licences so that we can have more sustainable licences in the future.
Ultimately, we agree that we have no choice but to withdraw a licence if the evidence shows that the environment is being damaged. We agree with the premise of Clause 82 that there should be a negotiated settlement, with a reasonable compliance period for changes to be introduced rather than an automatic right to compensation. We also agree with the noble Lord, Lord Cameron, that the new agreements should be for a minimum of 12 years. As he made clear, we should take a catchment-based approach and look to introduce the best techniques available for water efficiency in parallel with the negotiations.
We agree with the noble Lord, Lord Cameron, that an operative date of January 2028 is far too long a time. I was alarmed to hear the noble Lord, Lord Carrington, talk of deadlines as far ahead as 21 years. The current timescale does not appear to grasp fully the severity and immediacy of the problems facing our waterways. We need to move all farmers on to sustainable abstraction licences as soon as possible. We cannot wait until 2028 to start revoking licences.
If compensation remains payable until 2028, there is a danger that budgetary constraints will limit the scope of the Environment Agency to act to protect the environment in the interim. There is also the danger of perverse outcomes whereby people start to behave in their short-term interest just to protect their rights and potential access to compensation. As we have heard,
the Government are already beginning to address this issue through the 2017 abstraction action plan, so there is even more reason for bringing the date forward from 2028, since presumably action on many of these areas is already in hand.
This has been a difficult debate, and I understand the arguments on both sides but, ultimately, we think that a date of 2028 is too long away and we therefore support the amendments in the name of the noble Lord, Lord Cameron, and look forward to the Minister’s response.