Oral Answers to Questions

John Spellar Excerpts

Thursday 13th February 2014 Commons Chamber

[Dan Rogerson]

I pay tribute to my hon. Friend and colleagues in Somerset for all their work in representing their constituents, and I look forward to the next meeting of the action group, which I hope he will be able to attend. The farmers have suffered a great deal since their land has been inundated, and I echo what he said about charitable efforts to help them. The fund announced by the Prime Minister will set aside money to improve the land to bring it back to the condition that we would like to see it in, and details on how to apply for that will be published in due course.

[Mr John Spellar (Warley) (Lab)]

7. What steps he is taking to tackle the contribution of rising water bills to the cost of living.

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

Last year, the Secretary of State wrote to all water companies to stress the tough times that households are facing. In setting out their 2014-15 prices, several companies have decided not to take the full amount allowed in the 2009 price review. Ofwat estimates that the 2014 price review could reduce pressure on bills by between £120 million and £750 million annually from 2015.

[Mr Spellar]

While water bills are soaring, the water companies are making eye-watering profits. They are loading up their balance sheets with debt from tax havens abroad and are paying hardly any tax. Are not the public being ripped off in every possible way by these sharks in the water? Rather than those minor issues, why do not the Government really get a grip on the water companies and get them to serve the customer and the country?

[Dan Rogerson]

That is a very good question from the Whips, but the answer is that the current price review period mechanism was put in place under the previous Government. As I have already set out, prices will be held at the first opportunity, and some companies are reducing them in what remains of this period. We will see savings in the next price review period compared with the prices forecast had we carried on with the price review left to us by Labour.