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Church says no to rain tax The Church of England has unanimously voted to ask the Government to scrap the ‘rain tax’ against churches, charities and clubs. In a debate, at which the Archbishop of York spoke, the governing body of the Church called for minsters to insist that Ofwat follow guidance given in 2000 making clear that charities, churches and clubs should not be charged on the same scale as factories and other commercial buildings. Martin Dales speaking at the synod highlighted the effect of the ‘rain tax’ on many parishes who receive sudden, massive rises in water charges for churches. The motion was passed and now requests HM Government to remind OFWAT of its obligations to ensure that the water companies adhere to the clear guidance given by the Secretary of State for the Environment in 2000, which states that “there are many non-household users who are not businesses….including places of worship…. and it would be inappropriate to charge all non-household customers as if they were businesses.” Hear the debate here coming soon.. Martin Dales speech in full…MARTIN DALES SPEECH TO GENERAL SYNOD CHURCH WATER BILLS 11TH FEBRUARY 2009 I am grateful for the opportunity to bring this matter before the General Synod and would first of all like to thank fellow Members for their support at last July’s Synod and the Business Committee for recognising the importance of this business and putting it on the Agenda so swiftly by General Synod standards. We have a crisis – many churches, scout groups, community sports clubs and village halls are experiencing vast increases in their bills. This is because they are now being charged a rain tax for the amount of water coming off their buildings and car parks; and a drain tax for the privilege of the surface water and run-off using public sewers. At the moment, it is United Utilities, Northumbrian, Severn Trent and Yorkshire water companies that have introduced these charges but, don’t worry, if the regulator OFWAT has its way, it’ll come to a church, club or charity near you as the policy is rolled out over the whole of England. This rain tax is expected to cost Church of England parishes over £15m a year, plus a further £10m for seeking professional advice to appeal the initial bills. The Scouts estimate the total drain from the pockets of children into the pockets of water companies to be around £1.5m. Many small voluntary clubs and community sports clubs are reporting similar increases to churches, ranging from 100% to 1,400% and they have been making representation to Government too. How mad can this get with the 2012 Olympics around the corner? What sort of message is this sending to our young hopefuls as they are training? How unfair and wrong? And, talking about just causes, I would like to pay tribute to Brian Moore (who has joined us today in the public gallery) for his sterling efforts in the Daily Telegraph on behalf of sports clubs – his nickname from his England rugby days is “Pitbull” because he has the reputation of never wanting to let go of something once he’d got hold of it. Be it a rugby ball, or the Government we are one in this together and we will not let go of this issue until it is resolved in a fair and just manner. The total cost to the not for profit sector is expected to exceed a staggering £100m a year – this is outrageous and totally unacceptable. It’s not only the principle that is wrong: it is the way in which this rain tax has been introduced. Churches report their treasurers, churchwardens and clergy being in receipt of heavy-handed treatment from the customer service departments of water companies with the new charging starting immediately even when being appealed, threats of debt-collectors and court action: can this be the right way to treat volunteers faced with unexpected, highly inflated increase to their budgets. In some cases, it has led to resignations of church officers and even requests to the Bishop to close down their churches. How unfair - this cannot be right – you cannot be serious. But serious it certainly is. The Government permits businesses to claim their water bills and environmental improvements against tax;but there is no such subsidy available to churches and charities, a point I made to Hilary Benn, the Secretary of State for DEFRA in a letter last week. OFWAT says it thinks it is fair that everyone in the non-domestic sector – businesses and charities alike – should pay the same according to the surface area of their operation. But the Government, in its Guidance to OFWAT in 2000 has said, and it is in the Motion before you today, “….that there are many non-household users who are not businesses….including places of worship….and it would be inappropriate to charge all non-household customers as if they were businesses.” How fair is that – it is patently unfair. Only as recently as last August 2008, the Government in its Statutory Social and Environmental Guidance to OFWAT say, “Ofwat’s work can have significant social impacts” – well it’s certainly doing that to the mission and community work of those affected. In the same document, it also says, “Surface water drainage should be set in a way that is sensitive to actual use of this service by different types of premises”. Amen to that. In the Government’s Future Water strategy report of February 2008, it says to OFWAT “new consideration is to be given to the arrangements for surface water drainage” and I emphasise the word the word “new” because I would like to think that the Minister was aware that the effect OFWAT’s interpretation of the 2000 guidance was having on the not-for-profit sector was unfair and not what Ministers had intended. So what can be done? There has been huge anxiety, stress and anger amongst volunteers which has been manifest through the petition on the Prime Minister’s own website, set up by David Boddy, Churchwarden of St.Luke’s Church, Thornaby, on Teesside in my own Diocese of York. We are enormously grateful to him for doing this on behalf of all the groups affected. His church water bill increased by a whopping 1,300% from £70 a year to £910 a year – a massive rise for a large, inner-city church with a tiny congregation –what an encouragement for being a Christian presence in the heart of the community, like every parish in the land. Over 41,000 people have signed that petition: it is the most popular one on the Downing Street site lying in 1st position amongst nearly 5,000 other ones. It remains open for signature until April 6th 2009. Access to the petition and other information can also be had through DontDrainUs.org which was launched nationally in the North-West dioceses of Manchester, Chester, Liverpool and Blackburn who have borne the brunt of the rain tax bills. DontDrainUs.org has two objectives: firstly, a review by the Government of the charging mechanism with serious consideration given to regulations that would either introduce a new charity band, or the return to rateable value charging with exemptions or rebates for churches, clubs and charities; secondly, an investigation into why OFWAT ignored government guidelines to not charge churches, clubs and charities as if they were commercial enterprises. During the launch of DontDrainUs.org, it was made clear that the Church of England alone would be permanently drained of the resources to employ 375 clergy (that’s a loss of 10 clergy in every diocese), or being unable to support 3,000 community groups, or 7,500 pensioners lunch clubs, or the loss of 357 teachers in Church schools. Larger churches will see their bills rise from £140 to £8,000 a year and Cathedrals will pay between £5,000 and £71,000 a year. It is very clear that the excessive size of these bills is seriously affecting churches and other groups’ ability to carry on their charitable functions whether for the young, the old, the most disadvantaged and marginalised, the weak and the vulnerable. And at a time such as the times we are living in when their needs are even greater. So what of the response of Government, OFWAT and the water companies to all this? The silence from the Prime Minister on this issue is deafening despite the Petition and the various campaigns. So on Monday, I went to Downing Street - I was “Singing in the rain” - to give the Prime Minister an umbrella and a note asking him to “please get in touch” in the hopes that we might hear something from him before this afternoon’s debate. Well, surprise surprise - nothing at all. However, I do have some hot news in that I have just received a response from Hilary Benn to my letter of last week when I asked from him for something positive to say to you today. Let me share it with you: In it he says, “Let me assure you that I am very concerned about the issue you have raised. Our view, which we have already expressed to the water companies concerned and OFWAT is that something is clearly very wrong if faith buildings, community amateur sports clubs and scout huts are facing hikes in their bills of several hundred percent, and where there are massive variations between what is being charged in different areas, by different companies.” Mr Benn goes on to say, ”We have made it very clear that we believe these increases are not in line with DEFRA’s charging guidance to OFWAT in 2000 or OFWAT’s more recent detailed 2003 guidance to the water companies. I have taken up these concerns with OFWAT and the relevant water companies.” Well at least he agrees with me and the wording in my Motion, so that’s something. However, it is what is not said that concerns me. What is the Government actually going to do about this unacceptable and unfair situation? The matter lies in the hands of Ministers to propose new Guidance and Legislation that makes it very clear to OFWAT that its current interpretation and guidance to water companies is clearly wrong as the Secretary of State has stated. Buried in Annex A the Legal basis of Statutory Social and Environmental Guidance to OFWAT of August 2008, there is, I believe, a get-out clause which may help the Government resolve matters – I do like to be helpful. It says, “Where the Government wishes to implement specific social or environmental measures which would have significant financial implications for customers or for the regulated companies, these will be implemented by Ministers, rather than OFWAT, by means of specific primary or secondary legislation. The Government does not seek to do this through this Guidance.” It is also interesting to note that, rather quietly, the Select Committee for Environment, Food and Rural Affairs two weeks ago announced an Inquiry into OFWAT’S Price Review 2009. Amongst other things, it wants to consider “how long-term planning for climate change and environmental improvements should be paid for” and the “affordability of water services”. The Churches Legislation Advisory Service (CLAS) is making a submission on behalf of the Church of England and others. At Church Commissioners Questions last week in Parliament, a member of this Synod (Robert Key MP) and a past member (Sir Patrick Cormack MP) asked about this issue. In his response, the 2nd Church Estates Commissioner, Sir Stuart Bell MP, said, “The pressure is on the Government, and what we want is for the Government to respond.” He continued, “If I may use a biblical phrase, let me say: those who have ears, let them hear.” My sentiments entirely. So, the matter is in the hands of Ministers for it is they who created the legislation for these iniquitous, unfair rain and drain taxes. Until there is a Statement from the Prime Minister in Parliament on how this is going to be resolved, the campaign against the Government, OFWAT and the water companies’ current stance on this issue will continue. It is to be hoped that today’s Debate in this place will focus minds in the place over the road, and highlight the appalling effect the current policy is having on so many, be it the churches, clubs and charities themselves or the people they are trying to serve. Madam Chairman, I beg to Move the Motion standing in my name. ENDS 11th February 2009
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