Water: Bills and Executive Remuneration

Baroness McIntosh of Pickering Excerpts

Tuesday 3rd July 2018 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, the noble Baroness’s question is extremely timely. Only today, Ofwat published a summary of the changes to the upcoming price review process, which were discussed with my right honourable friend the Secretary of State, who agrees entirely with Ofwat’s actions. It will require companies to share the benefits of high levels of debt finance with customers, ensure that performance-related executive pay rewards genuinely stretching performance —which benefits customers—and be transparent about dividends and explain how they relate to costs and service delivery to customers. If necessary, we will go further.

[Baroness McIntosh of Pickering (Con)]

My Lords, I declare my interests in the register; I also co-chair the All-Party Parliamentary Water Group. Does my noble friend the Minister agree that Britain was the dirty man of Europe in the 1980s and, through privatisation and EU environmental directives, we have now improved water quality? Going forward, what benchmarks will the Government use to continue to improve water quality in this country?

[Lord Gardiner of Kimble]

As my noble friend said precisely, we wish to improve water quality. Let us be clear: since privatisation, customers are eight times less likely to suffer sewer flooding. The number of serious water pollution incidents caused by the water industry reduced significantly from over 500 in the early 1990s to 57 in 2016. Clearly, there is room for improvement. That is what both Ofwat and we in Defra want. In terms of what has been achieved with the £140 billion investment since privatisation, our water quality is improving and we want it to improve even more.