Environment Secretary Owen Paterson has compared spending on flood defences to investment in broadband and mobile phone networks as a method of stimulating economic growth in the UK.

Speaking at the Environment, Food and Rural Affairs (EFRA) Committee evidence session into flood funding, Paterson said he was “absolutely emphatically convinced” of the merit of flood schemes as economic generators.

“Emphatically, these flood defence schemes help grow the economy,” he said. “There is no doubt about that at all. I see it as like investment in broadband and investment in better mobile phone networks. It is an absolutely key part of creating the infrastructure and the environment in which the economy can grow.”

However, when challenged on whether Defra takes into account the impact on economic growth of a particular flood scheme, Mr Paterson replied that high risk was still the priority because “that is where you get the biggest payback.”

But he also said that flood defences “protect existing properties, help protect existing businesses, but they will lead to increased business because whole tracts of our cities are currently blighted.”

Member of the Committee Barry Gardiner MP proposed putting flood defence schemes on the agenda of the Natural Capital Committee (NCC), which reports to a Cabinet Sub-committee chaired by Chancellor George Osborne.

“If they were to do a review of flood risk management and to make that economic case on the basis of natural capital, it might be one that was very powerfully in your favour,” Mr Gardiner suggested.

Mr Paterson agreed and said he would ask the NCC to look at it.

Mr Gardiner went on to say that rather than building more reservoirs, which has been supported by the Environment Secretary to improve resilience in water supply, green infrastructure had a strong role to play in flood alleviation.

He proposed woodlands as natural retainers of flood and attenuating the watershed in the area, which could turn into “serious money” for natural capital. He highlighted the Catskill model in America, where the farmers are paid for maintaining the land that provides the watershed for the fresh water coming down into New York City.

“There are really good examples of green infrastructure, rather than just, ‘Let’s build some more concrete and steel reservoirs’, where the farmers can have a win-win, the biodiversity can have a win-win, and the flood alleviation is maximised,” Gardiner said.

Mr Paterson replied that there was no “black and white” answer and certain measures would be more appropriate to different parts of the country.

“What we want to do is create a regime that encourages all those activities so we have better use of water,” he said.

Reservoir safety guidelines

Also mentioned in the session was the reservoir safety guidance, which Sonia Phippard, Director of Water and Flood Risk Management at Defra, said the regulations should come into effect in June this year after the Government laid them before Parliament last month. The final guidance is seen as important as spurring the building of new reservoirs.