Dated February 2012. Government response to the EFRA Committee's fourth report of session 2010-11 (ISBN 9780215559050). The NPS framework document is publishing simultaneously (ISBN 9780108511080)

The Committee heard persuasive evidence about the environmental damage caused by over-abstraction. The reform of abstraction licenses must be brought forward as the Government's current plans - to reform the abstraction regime by the mid-to-late 2020s - will not take effect rapidly enough given that our rivers are already running dry. Defra must also work with Ofwat and the Environment Agency to tackle urgently those abstractions which are already causing severe damage to our rivers. It is "extremely disappointing" that the White Paper fails to set a target to increase levels of water metering. The report also highlights how bad debt in the water sector adds around £15 to each household's water bill every year. Defra must implement existing legal provisions rapidly to tackle this problem. The Committee also examines proposals to increase competition in the sector. They conclude that Defra should set a clear target date for opening a competitive retail market for water, and should take account of lessons that can be learned from Scotland. The Committee believes that the White Paper's proposals will fail to deliver a well-functioning retail market and suggests how to remedy this. The Government also needs to take action to encourage the development of Sustainable Drainage Systems (SuDS), which can reduce the risk of flooding, and to implement the relevant outstanding provisions of the Flood and Water Management Act 2010. It is "deeply worrying" that the Government had not yet reached an agreement with insurers about providing cover for homes in areas of flood risk

£200 billion of new investment in energy infrastructure is needed by 2020 to cope with rising demand and meet targets on renewable energy and climate change. The six draft National Policy Statements (NPSs) are designed to speed up the planning process for major energy projects to help facilitate this investment, but the new drafts do not prioritise low-carbon generation and renewables over conventional capacity. New Government rules on energy policy could lead to a second 'dash for gas', delaying critical investment in renewables and other low carbon technologies and making the UK's climate change targets impossible to achieve. And development of too much gas capacity could crowd out opportunities for renewables to form a substantial component of the UK's energy mix. The Committee is also sceptical about the ability of the Government to deliver its aims on nuclear power. Ministers told the Committee that the NPSs should enable the development of 16 GW of new nuclear plant by 2025. That is two new nuclear plants each year. The MPs call for more clarity in coordinating developments, and stress that political certainty is essential for investors having to make decisions with planning horizons sometimes over several decades. It raises concerns about the level of investment uncertainty created by giving Ministers the ultimate power to decide on planning decisions and the Government should publish criteria against which the Secretary of State should exercise their discretion.

The Committee hald a pre-appointment hearing with Mr Jonson Cox, the Government's candidate for the post of chair of Ofwat. It is satisfied that Mr Cox has the professional competence and personal independence required for the post, and encourages the Secretary of State to make the appointment.

The UK's 347,000 kilometre network of sewers and 9,000 sewage treatment works fulfil the vital function of managing over 11 billion litres of waste water each day. Changing weather patterns and population growth are leading to increased volumes of waste water in some parts of the country. In coming years, there will be a need to construct new infrastructure to manage waste water. In particular, new infrastructure is needed in the River Thames area to cope with population growth and to meet the European Union's environmental requirements. But the draft National Policy Statement (NPS) on Waste Water needs radical improvement if it is to provide a valuable policy framework to guide decision-makers. The Committee criticise the draft National Policy Statement for focussing on two specific London projects, the Thames Tunnel and replacement of a sewage treatment works in North East London. They argue that it should set out a strong set of general principles for decision makers to apply to any waste water project once a specific application is made, rather than have site-specific sections. The Planning Act 2008's new regime for Nationally Significant Infrastructure (NSIPs) does not currently apply to the Thames Tunnel project-a surprising omission given that this multi-billion pound project is one of only two waste water projects likely to be of sufficient scale to come within the ambit of this NPS. The Government must rectify this urgently.