Water Bills (South West)

Andrew George Excerpts

Wednesday 30th November 2011 Westminster Hall

[Dan Rogerson (North Cornwall) (LD)]

It is a pleasure to serve under your chairmanship this morning, Mr Crausby, and I am very grateful for the opportunity to cover this particular topic. It will not be for the first time, I must say. Those who have sat in your position over the years have seen many debates secured by Members from our part of the world on this huge issue for our constituents: very high water bills.

We have moved on a little since we last met. I recall being here in March for a debate secured my hon. Friend the Member for Torbay (Mr Sanders), at which point we were still looking at how the responses to the Walker review of 2009 would come forward. We now have a concrete response from the coalition Government, about which I am delighted. Politicians are always looking out for our constituents, so there are one or two things I want to ask the Minister later, particularly about social tariffs and WaterSure, but I would like to start off the debate by congratulating the Department and the Minister’s colleagues across Government for the contributions they have made.

It bears repeating why we are in this situation and what the experience of our constituents has been in Devon, Cornwall and the west of Somerset and Dorset over the past couple of decades since privatisation. At the time of privatisation, there was an aspiration on the part of the Conservative Government to see private investment coming in to develop infrastructure that had been neglected. There is no doubt that it had been neglected for decades, but there was huge concern at the time from those who could not see how competition could work in a sector where there was one main supplier and one main company dealing with waste. That has been an issue, in that no sort of market emerged, unlike in other privatised industries.

The key question for us in the South West Water area was one of infrastructure. The company was able to do a huge amount, both to deal with the environmental legacy that it was left and to meet the requirements set by the Government and the European Union. We welcome that, of course. Organisations such as Surfers Against Sewage, which has been around and done fantastic environmental work over the years, were at the forefront of holding Government and industry to account to deliver on their commitments and obligations. While we have seen progress, investment can only be secured against an income stream. The company had to seek that investment—get investment from shareholders and go to the markets for money—on the basis of an income stream.

In Cornwall and south-west England, we have seen a huge legacy of environmental works that need to be carried out, to a far greater degree than any other part of the country. I refer to the fact that the population of Cornwall accounts for 3% of the population of England, but we have 30% of the coastline. That is an easy way to illustrate the scale of the problem; we have a large amount of work to do, but a relatively small population to pay for it, despite the fact that the coastline is a national treasure, if you like. It is enjoyed by people from across the country who come to take advantage of it. We have the south-west coast path and all sorts of attractions for people to come to enjoy the beaches and countryside of Cornwall and Devon, but we have not had a way to capture a contribution from those people towards the maintenance of infrastructure. It falls to people living closer to that national asset to pay for the whole lot.

There has been some concern in the press recently about the policy of contribution outlined in the Budget and referred to in the autumn statement, and the money set aside to help in this regard. There was an article in The Times last week, in which there were rumblings from other parts of the country about how unfair this was. I do not think that that unfairness exists; this is a much fairer solution to a problem that people in my constituency and those neighbouring it have experienced for a couple of decades. There is still, however, a lack of understanding. We have perhaps not made a big enough effort at national level to get across to those who are concerned in other parts of the country just why there is a desperate need.

[Andrew George (St Ives) (LD)]

First, I congratulate my hon. Friend on having secured this important debate. I would like to congratulate the Government and welcome the announcement in the autumn statement yesterday, although I have to say that it was a 20-year ask. My hon. Friend referred to WaterSure and the social tariff. Does he agree that the statement yesterday does not mean that we should not also make a strong case for an equitable outcome with regard to the future statement on WaterSure and the social tariff when the water White Paper comes out next week?

[Dan Rogerson]

My hon. Friend is absolutely right. Earlier, I hinted that I would return to that, and of course he understands that further questions remain, which, if settled fairly and equitably, could ensure that the contribution set aside in the Budget has the maximum impact, and that none of its benefits are lost through unintended consequences with regard to tariff schemes.

--- Later in debate ---

[Richard Benyon]

My hon. Friend makes a very good point. However, the other important point to note is that the fact that the south-west has a much higher percentage of households on meters is good for those particular people, because they very often use much less water than larger families or households in multiple occupancy. That offers a really effective way not only of paying proportionally lower bills, but of managing problems—for example, they will know much sooner, if they are on a meter, if there is a leak. I applaud the work done by the company. We want to see such work developed not only in the south-west but elsewhere, and we will encourage that.

[Andrew George]

The Minister is speaking about the crux of what will no doubt appear in the water White Paper next year. The impact of the flat £50 per household reduction is welcome. It will apply irrespective of whether households are wealthy second home owners on water meters who therefore have relatively low bills or the large number of local families in straitened circumstances. It is those families for whom a nationally equitable solution is required because, despite the £50 reduction, they will still face considerable bills.

[Richard Benyon]

First, I can say to my hon. Friend that he will not have to wait until next year for the water White Paper, which is much more imminent. I cannot tell him precisely when, but it will be very soon. Secondly, the White Paper will examine the whole range of affordability issues and solutions. I hope that the package we introduce will make a real difference.

My hon. Friend and all Members who represent the south-west will recognise that that will require legislation, which is why I cannot promise that it will be delivered before April 2013. I wish it could, but we are convinced that primary legislation is required, although we hope to deliver it in time for the start of the financial year in April 2013.

Company social tariffs will allow water companies everywhere to reduce the bills of those who would otherwise be unable to afford them in full. In conjunction with the excellent existing support schemes and advice, companies will be able to design the right tariffs for their region. We want all companies to introduce social tariffs as part of a package of advice and support for customers about affordability and efficiency. I hope that hon. Members, advice organisations and environmental organisations will work with water companies to design the best schemes for their regions.

Before I conclude, I just want to express again my appreciation to hon. Members across the south-west for their efforts in bringing forward this matter, and my determination to continue this discussion in the future.