Oral Answers to Questions

David Mowat Excerpts

Thursday 6th December 2012 Commons Chamber

[Mr Speaker]

Order. I am grateful to the right hon. Gentleman. I think we will take that as a no. He is not suggesting anything of the sort, but simply seeking to put his own position on the record, for which we are grateful.

[David Mowat (Warrington South) (Con)]

4. What plans he has for the future structure of the water and sewerage industry.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

The Government’s water White Paper set out our vision for a resilient and sustainable water industry that is able to attract long-term investment. We are committed to measured reform to protect the strengths of the current system. Our draft Water Bill includes proposals to deliver evolutionary reform of the water sector. This will benefit customers and enable new players and new ways of thinking to enter the market.

[David Mowat]

The UK regulated asset base has been a great driver of inward investment into the UK for infrastructure projects. Will the Minister confirm that there is nothing in the draft Bill that will undermine the size of that asset base, and will he consider using the regulated asset model to bring in money for badly needed flood defences?

[Richard Benyon]

I can confirm that the golden thread running through our water White Paper, all our policies since then and, in particular, the Water Bill underpins our commitment to continued investment in this sector. It has benefited from £108 billion of low-cost investment over the past 22 years, and we want to see that outstanding success continue. I note what my hon. Friend says about the plans to extend the model to flood defences. That proposal has been put by one or two water companies. We do not propose to bring it forward at this time, but we are always open to considering such matters.