South West Water

Gordon Henderson Excerpts

Tuesday 5th March 2024 Westminster Hall

[Several hon. Members rose—]

[Gordon Henderson (in the Chair)]

I was about to remind hon. Members to bob if they want to speak, but it looks as though I do not have to. I gently urge Members to restrict their comments to about five minutes. I call Luke Pollard.

--- Later in debate ---

[Mr Toby Perkins (Chesterfield) (Lab)]

It is a great pleasure to serve under your chairmanship, Mr Henderson. I congratulate the hon. Member for East Devon (Simon Jupp) on securing this debate. I have spent many summer holidays in his constituency over the years, so it was great to hear those names.

This issue is vital, so I welcome the opportunity to discuss the performance of South West Water in more detail. There are lessons for us to learn about the whole sector by examining this case, but many of the issues that have been raised are specific to the south-west. Although there are strong opinions on this issue, there were some very valuable contributions to what has been an excellent debate.

The first point made by the hon. Member for East Devon that is worth repeating is the fact that across the country, many people working for water companies have become the victims of harassment. They are not in any way responsible, and I echo his point about that. He welcomed, as others did, the recent increase in funding for the Environment Agency. However, the context is that the Environment Agency had a 50% cut from 2010 to 2022. If it is the case, as I believe it is, that more money for the Environment Agency will improve the quality of its monitoring, it must be accepted that the huge cuts it experienced in the first 12 years of this Government have been a contributory factor.

My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) spoke about the need for more honesty from South West Water, which other Members repeated. He spoke powerfully about how important the issue is for his constituents. He also invited us to imagine him swimming in various amounts of Lycra, which many people will have enjoyed when thinking about his outdoor swimming. It is important that we reflect on the fact that swimming is key to both the enjoyment of people in the south-west and the economy down there.

The hon. Member for Newton Abbot (Anne Marie Morris) reflected on the lack of investment in infrastructure over many years. She also said, in what was a very good speech, that she believed that South West Water had not been honest. The hon. Member for Tiverton and Honiton (Richard Foord) spoke about the specific challenges in the local area, particularly the fact that it is a popular tourist destination, with the population expanding hugely in the summer months. That has specific consequences, and is not necessarily reflected in who pays the bills. He also questioned where the responsibility for companies stood between shareholders and the general environmental good. Businesses have a statutory responsibility to respond to their shareholders, which is why it is down to Government to have responsibility for ensuring that they perform to environmental standards as well. That informs much of the approach that the Labour party takes.

The hon. Member for North Devon (Selaine Saxby) identified a failure of investment between 2012 and 2015. She placed responsibility at the feet of the Lib Dems, who were in government with the Tories at that time, but we would say that it has happened throughout the past 14 years. She also took the unusual step of suggesting that the major issue that people were angry about was the performance of the local campaign group, which I have to say is a new development that I was not expecting.

The recent report by the Rivers Trust, “State of Our Rivers”, which was published only last week, shows that the dial overall has not shifted on the health of our waterways. Not a single English river is in good overall health, and that has not changed since the previous report in 2021. A multitude of factors inform water health, but 54% of rich river stretches failed because of activities attributed to the water industry. That simply is not good enough.

Yesterday, along with the hon. Member for Tiverton and Honiton, I spoke at the launch of the election manifesto for the Surfers Against Sewage campaign. It was a shame that the Government were not able to send the Minister, although he was intending to go. It is an important coalition, because the issue is of huge importance to our constituents, particularly to the economy of the south-west. As the hon. Member for Tiverton and Honiton reflected, we heard from Jo Bateman about the powerful campaign that she is fighting for the ability to swim in clean waterways, recognised as an amenity that should be available to us all.

In preparing for this debate, I was pleased to hear about the work of Jayne Kirkham and Perran Moon, Labour’s parliamentary candidates for Truro and Falmouth and for Camborne and Redruth, respectively. They have supported protests and started petitions that add to the community fight to preserve Cornwall’s waterways. Jayne stressed that the discharges into Cornwall’s rivers was impacting on tourism and costing millions alongside the environmental damage.

Many people are concerned that Ofwat’s new growth duty will further reduce its ability to be a force for environmental good. When the Minister responds, I hope that he can set out how he sees that duty working alongside Ofwat’s responsibilities to improve environmental outcomes. Does the Minister agree that the perception that our waterways are not fit to swim in is damaging to growth as it depletes tourist revenue? If so, will he confirm whether he has instructed Ofwat that its new growth duty must mean that no sewage discharge is liable to reduce tourist growth?

[Gordon Henderson (in the Chair)]

Order. May I stop you? I am afraid you have run out of time.

[Mr Perkins]

Okay. Thank you, Mr Henderson.

--- Later in debate ---

[Robbie Moore]

That is why this Government have rolled out 100% monitoring of our storm overflows; once we have the data, we are able to hold failing water companies to account. That is exactly what this Government intend to do through our “Plan for Water”, which is all about more investment, stronger regulation and tougher enforcement.

I also wish to address some of the points made by my hon. Friend the Member for Newton Abbot (Anne Marie Morris) regarding South West Water’s resilience to drought, as I know many in the region experienced extended hosepipe bans. I am pleased to say that South West Water has informed us that, as of 22 February 2024, the Roadford reservoir is now at 100% capacity and Colliford is at 87%, showing significant improvement. The Environment Agency continues to work with the company on a range of new sources to improve resilience. I recently visited Hawks Tor, a former clay pit, that has been brought into the water supply to try to deal with some of those water resilience issues.

Many Members mentioned the issue of investment. Of course, addressing these concerns requires investment, and this responds to some of the points made by my hon. Friend the Member for Torbay (Kevin Foster). Following a DEFRA commission, Ofwat—which, it seems, the Lib Dems want to abolish—agreed to accelerate £128 million of funding to accelerate smart metering, build nutrient removal systems to improve river water quality and accelerate 15 storm overflow improvements in the Falmouth and Sidmouth catchments.

South West Water’s latest business plans include a significant £2.8 billion package of investment, which Ofwat is now scrutinising to ensure that it will truly deliver for customers and begin to turn its poor record around. Its commitments will also include achieving the lowest level of pollution incidence in the sector and significantly increasing water quality and water resilience by investment in new treatment works, reservoirs and tackling leakage. South West Water must now deliver on those ambitious plans, and this Government will hold it to account every step of the way. I look forward to my next meeting with the chief executive to be able to get an update on those plans.

I also wish to assure the House that the Government and our regulators, Ofwat and the Environment Agency, do not take underperformance lightly. As a result of failing to meet its performance commitments, Ofwat has directed South West Water to return £9.2 million to customers during the financial year of 2024-25, in addition to the £13.3 million returned in the financial year 2022-23. I again reiterate that, if the Lib Dems want to get rid of Ofwat, I am not quite sure who would be directing South West Water to do that.

South West Water was also instructed by Ofwat to produce a service commitment plan to demonstrate how it will meet the commitments made at the start of the current five-year price review period, and that was updated in November 2023. As I have said, I will shortly be meeting the chief executive of South West Water again to discuss progress on its plans and to hold the water company to account on its specific failures on pollution incidents.

When water companies fall short, we will not hesitate to hold them to account. Since 2015, the Environment Agency has secured fines of over £150 million, including a £2.1 million fine for South West Water in April 2023. Furthermore, under the action taken by this Government, we will be strengthening regulation to ensure that regulators have the tools to hold water companies to account. I want to thank all Members for their contributions today, and particularly my hon. Friend the Member for East Devon for bringing this important debate before the House.

[Gordon Henderson (in the Chair)]

The hon. Gentleman has one minute to wind up.

[Simon Jupp]

Thank you, Mr Henderson. This has been a really good debate, following on from the debate that I led last year as well. It is clear that people, on a cross-party basis, care about this. We have been paying South West Water bills for decades—I know my family has—and we all want to get value for money. We do not think that we have got that historically. If I may, I will make a point to the Liberal Democrats again. In January, the hon. Member for Tiverton and Honiton (Richard Foord), when talking about the EA and Ofwat, said:

“the Government probably ought to be stepping in and removing those regulators”.—[Official Report, 31 January 2024; Vol. 744, c. 916.]

As ever, Lib Dem policy is as clear as mud.

Question put and agreed to.

Resolved,

That this House has considered the performance of South West Water.