Water Industry Reform

Lord Haskel Excerpts

Tuesday 25th January 2022 Lords Chamber

Asked by

[Lord Haskel]

To ask Her Majesty’s Government what steps they are taking to reform the United Kingdom’s water industry.

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

My Lords, this Government have made improving water quality a priority and have introduced reforms to enable that. The Environment Act has modernised water resource planning, introduced new duties to reduce storm overflow discharges, and made drainage planning statutory. The draft strategic policy statement to Ofwat has set a new course so that the industry can deliver more for the environment, customers and the climate. If we do not see improvements, we will take further action.

[Lord Haskel (Lab)]

My Lords, the Minister mentioned the Environment Act. This Act is ineffective because it has no set timetable or targets to clean up our water. There has been a stream of reports calling for action, all of which call for infrastructure investment by the water companies and for more action and less complacency from the regulator. But, after increasing dividends and company debt, most water companies are in no position to carry out the necessary investment. Indeed, one industry executive said that the water companies were spending more on maintaining their assets, which are deteriorating, rather than replacing them. Does the Minister agree that this situation is a danger to public health and risks creating our very own homegrown pandemic?

[Lord Benyon (Con)]

Water companies have invested £160 billion in a modernised infrastructure. I disagree with the noble Lord about the Environment Act; it sets out a very clear direction of travel for water companies and others to clean up our waterways. But I refer him to the strategic policy statement to Ofwat. It has been released in draft and will be laid before the House in the next few weeks, and it will add to it targets for improvement.