CLA welcomes water abstraction reforms
The CLA has welcomed government proposals that could make it easier for farmers to sell their water direct to water companies.
Government policy outlined in the forthcoming Water Bill means in future farmers and landowners who own storage could be able to sell their surplus water direct to water companies, if they believe price is right.
CLA head of environment Derek Holliday said: “It’s really easy to talk up the need for reform and what benefits there will be for current farmer abstractors – they will potentially be able to get hold of more water and trade more easily in a new improved system.”
Mr Holliday said there was “no doubt” that in future an improved abstraction system will be needed as there would be greater pressure on availability of water resource.
“Ultimately, the changes to the abstraction licensing process and the subsequent re-distribution of water rights are of fundamental importance to farmers and land managers,” he added.
“This includes licences that are not being used at all, their existence underpins the value of the business and they are taken into consideration in business plans and mortgage lending.”
But he warned that “very little” is being done to address how the transition takes place and where the cost and blight to rural businesses will occur if new allocations are unfair.
The Water Bill, which the government says will reform the water industry and make it “fit for the 21st century”, reached the committee stage in parliament on Wednesday (3 December).
The government is aiming to legislate for abstraction reform early in the next parliament, from 2015, with a view to implementation in the early 2020s.
On Wednesday, NFU deputy president Meurig Raymond met with farmers and representatives from local abstractor groups in Newmarket, Suffolk, to discuss the impact of the Bill and future government proposals for abstraction reform on the irrigated crop sector.
He said: “Businesses will undoubtedly be interested in benefits that may result from changes in retail competition proposed by the Bill.
“Above all, we look to the government to deliver a fair share of water to farmers to grow our food and ensure sufficient money is spent to maintain conveyance in our rivers and reduce the risk of flooding.”
DEFRA to consult on water abstraction shake-up