Flood protection could be funded by water tariffs

Yorkshire Water wants Ministers to give it responsibility for building flood defences and extra drainage systems as the squeeze on public spending means there is less Government cash to invest.

As a private company, it would be able to secure extra investment to build more schemes – although customers are likely to face increased bills to pay for it.

Bosses are particularly keen to build more Sustainable Urban Drainage systems (Suds) – eco-friendly ways of soaking up flood water and heavy rainfall ranging from green roofs to installing ponds and ditches to try to prevent a repeat of the flooding which devastated thousands of homes across the region in 2007.

The company has made its plea ahead of the expected publication of a Water White Paper by the Government tomorrow which will outline plans to make the industry more competitive.

Richard Flint, chief executive of Yorkshire Water, said: “If you look at flooding or especially drainage, there is a growing risk exacerbated by climate change, with an understandably growing intolerance by the public to accept that risk.

“So at the same time there is a growing need, there is a growing austerity and inability to produce money from the public purse.

“Is there a way forward that allows the private water sector to invest? We can access capital markets, which the public sector can’t. You just have to look at the priorities public sector organisations have and the money they have to pursue them, and I’m not sure Suds would be top of the list. The right answer, I believe, is for them to be with the water company.”

Although the Department for the Environment, Food and Rural Affairs (Defra) insists spending on flood defences is a priority, three major Yorkshire schemes – in Leeds, York and Thirsk – had to be shelved earlier this year when the Environment Agency had its budget for the region slashed by 41 per cent.

The Government is planning a new system of match-funding for flood defences, which would see Whitehall fund part of the cost of projects if local areas find the rest.

But Yorkshire Water claims even more flood defences and drainage schemes could be built if it was given responsibility – freeing up public money at the same time to be spent on other problems. Because the costs would be shared across the region, the impact on bills could be kept low.

Suds are currently managed by local authorities and are often incorporated into new developments. They allow rain to soak into the ground and flow to the nearest watercourse where it can be released at a manageable rate.

Systems can include green roofs, water butts and permeable paving to more natural features such as ponds, wetlands and shallow ditches or swales, which can have the added bonus of creating new wildlife habitats.

At Smiddy Hill, near Wetherby, Yorkshire Water already plans to install one system by next year after homes were flooded. Traditional flood defences would have cost £3 million, but a natural solution could cost just £500,000.

The company is also planning a “flagship” system in Bridlington as part of a project to prevent sewage overflow lowering the quality of bathing water.

Since 2007, Yorkshire Water has spent more than £30m on flood prevention schemes, and plans to spend £120m between 2010 and 2015 including drainage systems, but says it could do much more if it was given a legal responsibility.

Defra says the White Paper will ensure the water industry is reformed to “enhance competition, improve conservation and to protect poorer households”.

“The White Paper will focus on reforming the water industry to be innovative, efficient and customer focused, increasing the resilience of our water supplies to future pressures such as climate change, and ensuring that bills are affordable in the future,” the department said.