News Release

Issued 18.3.09 - (resent after technical fault)

‘End the buck passing’ says Bishop as ‘rain tax’ issue brought to the House of Lords

The Bishop of Ripon and Leeds has called on the Government to ‘end the buck passing’ over new water charges being imposed on many churches and charities. Speaking in the House of Lords (Wednesday 18 March), Bishop John Packer chided the government for a lack of action over new water charges which the Church of England says are being unfairly and wrongly applied to community halls and church buildings. It is estimated that the new ‘rain tax’, already being levied by four water companies, could cost the CofE £15 million per year and, last month, the General Synod called on the government to scrap the charges on churches, charities and clubs.

During Lord's questions, Bishop John Packer was told by Lord Davies of Oldham, on behalf of the Government, that a range of discussions had taken place with Ofwat. But Bishop Packer said that was not enough. “My Lords, I am grateful to the Minister for that response and I should be even more grateful if I saw anything much happening as a result of the conversations which have taken place.” He added, “It seems to be one of those situations where everyone is agreed on what should happen, but no one can do anything. Will the Minister undertake to end the buck-passing by revising and reissuing the guidance to Ofwat and the water companies to make it absolutely clear that community halls and church buildings should not be charged for surface water drainage on the same basis as businesses?”

In response, Lord Davies said he would revise and reissue the guidance, but argued that action was already being taken. “What has gone wrong is the way in which individual companies have implemented the guidance; in particular, nearly all complaints revolve around United Utilities whose charges have increased by several hundred per cent in a number of cases. The Government has made it clear that this is unacceptable; Ofwat has made that clear to the company involved; and the company has apologised for its actions and is taking remedial steps.”

However, the campaigning website Don’t Drain Us.org, argues that United Utilities are not backing down over the charges and reports that “Troubled water company, United Utilities has begun the charm offensive with initial phone calls being made and meetings arranged all designed to sell the ’rain tax’ to those most affected by the charges.”

Full text:

Water Supply: Charges Question Asked By The Lord Bishop of Ripon and Leeds
To ask Her Majesty’s Government what discussions they have had with Ofwat as to the charges levied by water companies on non-household users which are not businesses.

Lord Davies of Oldham: My Lords, a range of discussions has taken place between my department and Ofwat, at official and ministerial levels, regarding water charges for non-business and non-domestic customers.

The Lord Bishop of Ripon and Leeds: My Lords, I am grateful to the Minister for that response and I should be even more grateful if I saw anything much happening as a result of the conversations which have taken place. The changes in the ways that water companies charge for the drainage of surface water and highways would cost churchgoers and the Church of England some £15 million a year, and the total effect for community groups would be very much higher. It seems to be one of those situations where everyone is agreed on what should happen, but no one can do anything. Will the Minister undertake to end the buck-passing by revising and reissuing the guidance to Ofwat and the water companies to make it absolutely clear that community halls and church buildings should not be charged for surface water drainage on the same basis as businesses?

Lord Davies of Oldham: My Lords, I can certainly give some assurance on the last point, but the guidance is unexceptionable—that properties should pay for the clearance of surface water. The basis has changed since 2000, after consultation, and has met broad approval. What has gone wrong is the way in which individual companies have implemented the guidance; in particular, nearly all complaints revolve around United Utilities whose charges have increased by several hundred per cent in a number of cases. The Government have made it clear that this is unacceptable; Ofwat has made that clear to the company involved; and the company has apologised for its actions and is taking remedial steps.

ENDS

For Hansard, go to http://www.publications.parliament.uk/pa/ld200809/ldhansrd/text/90317-0001.htm#09031759000288

Issued by John Carter (Rev)
Press and Communications Officer, Diocese of Ripon and Leeds

jhgcarter@aol.com
01423 530369 or mobile 07798 652707