Ofwat: Strategic Priorities

Philip Dunne Excerpts

Thursday 9th June 2022 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

I beg to move,

That this House has considered the Government’s strategic priorities for Ofwat.

I wish to begin my remarks by placing on the record my thanks to the Backbench Business Committee for granting this opportunity to hold an important debate and in particular for its tolerance. The interventions of the Easter recess, the Prorogation and the recent Whitsun and jubilee mean that it is some two months since my fellow signatories, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and my hon. Friend the Member for Devizes (Danny Kruger), and I first submitted our application for this debate. I am pleased to see them both in their places today, and I hope that they will have an opportunity to contribute.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

I thought the Environmental Audit Committee’s report was a model of its kind. I noted in particular that it created this context of identifying a “chemical cocktail” of sewage, slurry and plastic. Does my right hon. Friend feel that the Government’s response adequately addressed that issue—both on the sewage side and on the wider phosphates issue?

[Philip Dunne]

My right hon. Friend tempts me to rewrite my speech from scratch. First, I thank him for his comments about our report, which was a significant body of work and the first such report of consequence for a number of years. The Government response to our 55 recommendations was one of the most positive responses to any of the reports that our Committee has prepared in the time I have served on it. We made 55 recommendations and I believe only five were rejected by the Government; the others were either accepted in whole or in part. So I think the Government have moved quite a long way in addressing these concerns, but my right hon. Friend will recognise that solving this problem is going to take decades, not days. I know that the Minister will address that in her remarks.

I was just going to thank my colleagues on the EAC for embracing and sharing my passion for the issue of improving water quality as we conducted our inquiry. We published the report in January and it made specific recommendations for the strategic policy statement on Ofwat, which provides the context for today’s debate. I will discuss that shortly.

Having been tempted by my right hon. Friend to praise the Government, or potentially not to do so, I would like to take this moment, while I am in a generous mood, to thank the Minister, the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow). I am pleased to see her in her place, responding to this debate, and I thank her for her personal commitment to this vital issue of improving water quality over the past two years. In particular, I thank her for driving her officials to work with me to amend the Environment Act 2021 and put into law many of the core elements of my private Member’s Bill, which the pandemic prevented from being debated. I am very grateful to her and I would like the House to be aware, from me, that she has moved the Government a very considerable distance on this issue.

There is no doubt that over the past two years there has been a massive awakening of public interest in the state of our rivers. The introduction under this and the previous Conservative Government of event duration monitors at water treatment plants and storm overflows and the annual publication of their findings since March 2020, has brought to public attention the appalling degree of sewage routinely spilled into our waterways by all water companies involved in the treatment side of the business.

[Jeremy Hunt (South West Surrey) (Con)]

I congratulate my right hon. Friend for his extraordinary campaigning on this issue, which has changed the entire debate. Although I recognise that the Government are spending £3 billion on schemes to prevent sewage overspills, does he know that in my constituency, in the River Wey, we have had nine overspills in one village and 12 in Godalming, that in Bramley we have had overspills and that we have had 76 in Chiddingfold? Does he agree that this is totally unacceptable and that much more needs to be done?

[Philip Dunne]

I am very grateful to my right hon. Friend for introducing the next comment in my speech, which was to highlight precisely the volume of spillages that these monitors have revealed—not just in his local river, but right across the country, in all catchments. All water treatment plants are obliged now to have event duration monitors. They are obliged to have them but not all have installed them—or at least not on all the storm overflows. I believe there are about 22,000 overflows and about 20,000 have the monitors on them, so this number will continue to increase until they are all being monitored; I will come on to discuss that in a moment.

My right hon. Friend has described the particular challenge in his river system, but he will be aware that the aggregate number showed that there were 372,533 spill events, lasting 2,667,452 hours, during 2021. Every Member of this House will have access to those figures and can look them up. I commend to them The Rivers Trust website, as it has made this information very accessible. It is very easy to find where a facility is being monitored and what spillage events have occurred in the previous year.

[Sir Peter Bottomley (Worthing West) (Con)]

Not many in the House will have been able to attend the reception for World Oceans Day, where I congratulated Surfers Against Sewage on their 32 years of work trying to make sure that our seas are safe as well. Our seas and rivers are intimately connected.

[Philip Dunne]

Mr Deputy Speaker, I am rather concerned that my speech has been leaked to other Members of the House, because the Father of the House has just pre-empted my next sentence. He is absolutely right: it is appropriate that we are having this debate on the day after World Oceans Day. Of course, the devastating effect of the spillages impacts the receiving waterway, and gradually impacts the oceans as the rivers flow into the seas around us. This has a differing effect depending on the severity of the spillage, but the effect is routine, not exceptional.

Water companies were allowed to spill discharges so that they did not back up through the drainage system into people’s houses and on to our streets. The whole purpose of the licences was to allow such an opportunity in exceptional circumstances. What is so apparent from all this information is that it is routine spillages that are causing so much damage to our rivers and our oceans.

[Jesse Norman]

Sewage discharges, at least in the River Wye, on which my right hon. Friend’s report brilliantly focused, are only 25% of the problem. Phosphate leaching from fields is more like 65%. Does he feel that the Government have set an adequately ambitious target in saying that 80% of this phosphate should be reduced by 2037? I wonder whether we should go faster than that.

[Philip Dunne]

My right hon. Friend is right to refer to other polluters. If we take a look across the country as a whole, we will see that it is roughly evenly balanced between pollution from water treatment plants and storm overflows and pollution from agriculture. In the Wye, pollution is particularly prone to come from agriculture. As he knows, I am one of his parliamentary neighbours and our waterways along the whole of the Wye and the Lugg catchment are very affected by intensive poultry farming and the phosphates that it generates through spreading litter on the fields.

The Government need to join up their support mechanisms for agriculture. Now that we have left the EU, we have the opportunity through the environmental land management scheme to redirect support in a way that meets not only the objectives to ensure viable agriculture in this country, but other objectives of the same Department—the Department for Environment, Food and Rural Affairs.

I would like to see a more joined-up approach, so that we can use the mechanisms that exist, such as the sustainable farming incentive, the environmental land management scheme system and the farming rules for water to ensure that we are not only helping farmers to generate and maintain a viable business—I should declare an interest as a farmer and a recipient of the basic payment scheme at the moment—but improving our waterways. My right hon. Friend was absolutely right to raise that issue.

Sewage discharges at the scale that I have mentioned must stop. Campaigning groups up and down the country, with which I have been working, have recognised that for some time—from national organisations such as the Rivers Trust, which I have mentioned, the Angling Trust and Surfers Against Sewage, which was mentioned by my hon. Friend the Member for Worthing West (Sir Peter Bottomley), to individual catchment campaign groups such as Windrush Against Sewage Pollution, which gave powerful evidence to our Committee. All have been focused on raising awareness and urging the Government to take action to compel change in the behaviour and performance of water companies, and they are right to do so.

This is why the strategic policy statement for Ofwat is so critical: it is the primary mechanism through which the Government, via the Secretary of State for Environment, Food and Rural Affairs, are able to influence the economic regulator, Ofwat, to refocus the prioritisation of capital expenditure for the next five-year pricing period—from 2025 to 2029—of the water companies in England, which are responsible for the treatment of sewage and other waste water.

The latest strategic priority statement for Ofwat was published on 28 March, when we had originally sought to hold this debate, having previously been laid before the House in draft for the statutory 40 days. This document is therefore the critical point of influence and the device through which we in this place can persuade the Government to reprioritise Ofwat to compel water companies to act to reduce pollution of our waterways for which they are responsible.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I agree with my right hon. Friend’s point about Ofwat, but there is also another issue here relating to the planning system. We find that some of the water companies are not statutory consultees for large-scale new residential developments, and those residential developments can have a vast impact on the amount of surface water run-off at times of heavy rainfall. Moreover, new developments can impact on existing sewerage networks, which, historically, can often be very inadequate. How important would he consider that to be as a part of tackling this issue of sewage discharge into rivers?

[Philip Dunne]

Again, my hon. Friend has made a point that I was intending to make in my speech. In fact, it is my final point. I have something specifically to address that in a request to the Minister when we get there. He is absolutely right: development puts pressure on the water treatment works without requiring developers to contribute to improving that infrastructure.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Mr Dunne, could you please face the front of the House, so that your wonderful voice can be picked up by the microphone and your words everlastingly put into Hansard?

[Philip Dunne]

I do apologise, Mr Deputy Speaker. I will address you, as I should do.

I was just saying how heartened I have been to be involved in a campaign over the past two years with so many people from across society and the political spectrum who are engaged in trying to restore our rivers to a healthy and natural state. Some people have called for the issue to be solved overnight; of course, in an ideal world we would all like that to be the case, but it is simply not deliverable.

We need to introduce a degree of realism into the debate, because otherwise we find people out there in the wider community believing some of the very unfortunate propaganda that has been used for party political reasons on this debate—not today, but during the course of these discussions—to try to make out that, for example, Conservatives are voting in favour of sewage pollution. That is completely inappropriate and a disgraceful slur, given the work that has been done by Conservatives, with others.

[Liz Twist (Blaydon) (Lab)]

It is not my intention to go into a party debate, but does the right hon. Gentleman agree that there is a real need to ensure that Ofwat accounts for its actions? Does he agree with the suggestion that some have made that there should be annual reports against the priorities for Ofwat to his Committee?

[Philip Dunne]

I would like to say to the hon. Lady that my remarks about people misinterpreting what is being done do not apply to her. She has been a doughty champion on this issue; she has led debates in this House and we have had good cross-party discussions. She makes an interesting point: there are already five-yearly reviews, but whether that should be done more frequently is an interesting question, and maybe the Minister might like to respond to it in her winding-up speech.

Moving on, the pressures on the drainage systems have been developing over six decades, as investment in water treatment infrastructure and drainage systems underground has not kept pace with development above ground, as my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) has pointed out. It is also exacerbated by pollution caused by others—both farming practices, which my right hon. Friend the Member for Hereford and South Herefordshire described, and run-off from highways and other hard standing—so I accept that it is not exclusively the responsibility of water companies.

As the Secretary of State himself acknowledged before our Select Committee, the solution ultimately may require separation of surface and foul water drainage systems, and I believe the Department is currently trying to get a harder estimate of the cost of such a massive exercise. It will take enormous capital expenditure to correct the problem for good, and the work will take decades to complete, but a start needs to be made now. The SPS provides that opportunity.

I will focus my remarks now on what Ofwat should consider in its negotiations with water companies to encourage them to identify and quantify solutions. It inevitably takes time to progress solutions through the planning process before the required infrastructure construction can begin, whether through nature-based solutions or traditional mechanical and chemical systems. Much of that involves installing monitoring equipment to increase public awareness of the quality of receiving waters in real time. That was a key transparency recommendation of my private Member’s Bill and our Committee report, and it is now required to be introduced under the Environment Act. However, it merely establishes the baseline; the real spend will be incurred in the corrective measures required.

In my own constituency, Severn Trent Water has announced plans to invest £4.5 million to achieve bathing water quality status along some 15 miles of the River Teme between Knighton and Ludlow as part of their “Get River Positive” investment plan. That is obviously very welcome. The Thames Tideway tunnel will make a remarkable difference to water quality here in London. It illustrates well both the high cost and the length of time involved in delivering a transformational project to improve water quality, namely £4.9 billion and 11 years from securing planning to becoming operational respectively.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I welcome the right hon. Gentleman’s mention of the Tideway tunnel. It is an enormously expensive project and collects a lot of the sewage from London, but not from any sewage treatment works above Hammersmith—by which I mean specifically Mogden sewage treatment works. Every time it rains more than a drizzle, Mogden and Thames Water discharge dilute sewage into the River Thames, and the Thames Tideway tunnel can do nothing about that.

[Philip Dunne]

I bow to the hon. Lady’s knowledge of her constituency and the area around it. I am informed that the tideway tunnel will take 37 million tonnes of the 39 million tonnes of sewage currently discharged annually into the Thames out of the river, so it may not affect every single treatment plant, and it is primarily coping with the north of the Thames rather than the south of the Thames, as I understand it. I will touch on how it is being paid for in a moment.

Given Ofwat’s unique opportunity to approve capital investment, it needs to focus not only on the economic impact of household bills but on the environmental impact that water companies have. With the rising cost of living, none of us wishes to see bills rising sharply, but equally, if water rates are set so low as to preclude necessary capital investment in water quality, we will simply kick the can down the road for another five years and the problem will be harder to solve and more expensive to fix.

Given that the current cost of capital is still at historically low interest rates, over a multi-decade investment cycle water companies remain well placed to fund significant capital investment. For example, the tideway tunnel, the biggest current project, is due to add only £19 per annum to household bills in London. I believe that a balance can be found as regards Ofwat’s new priority for water companies to improve treatment in addition to the necessity to secure adequate drinking supply and have low bills.

[Liz Twist]

I recently hosted a meeting with the Consumer Council for Water, which is looking at the introduction of a social tariff. Does the right hon. Gentleman agree that an important part of this equation for people is that everyone should be able to afford their bills but that we have to get the work done that we need?

[Philip Dunne]

Indeed. The Consumer Council for Water is a statutory consultee with Ofwat, so it will be able to make that case as part of the determination process once Ofwat is following its instructions under the SPS.

It was clear from our inquiry that there had been a lack of political will from successive previous Administrations to empower regulators to tackle pollution and improve water quality. This had not been included as a priority in previous strategic policy statements. Evidence suggested that Ofwat’s price review process had hitherto focused on the twin primary objectives of securing clean water supply and keeping bills down. There was virtually no emphasis on facilitating the investment necessary to ensure that the sewerage system is fit for the 21st century. Anglian Water, for example, told the Committee that in 2017 the Government’s last strategic policy statement, which sets the objectives for Ofwat, “ducked the hard choices”.

So in October last year we wrote to the Secretary of State to contribute to the consultation on the draft SPS. We were concerned that the draft that had been published for consultation by the Government was imprecise in its expectations, with no indication of what specific outcomes were expected and by when. We called for the next SPS to make it unambiguously clear to Ofwat that a step change in regulatory action and water company investment is urgently required to upgrade the sewerage network, improve the parlous state of water quality in English rivers, and restore freshwater biodiversity.

In February, we were pleased when the Government published the final SPS, which had been significantly strengthened following our recommendations. We had made five specific recommendations that the Government accepted and have now been incorporated in the SPS guidance. They are, first and foremost, the very welcome prioritisation of investment over lowering bills to ensure that the sewerage system is fit for the future; secondly, challenging water companies to meet a target of zero serious pollution incidents by 2030; thirdly, amending the previous wording on the use of storm overflows from being used in “exceptional” circumstances to

“only in cases of unusually heavy rainfall”;

fourthly, prioritising overflows that do the most harm to sensitive environments; and finally, requiring that water companies should significantly increase their use of nature-based and catchment-based solutions. That is all new, and our Committee can justly take some credit for it.

What has become clear is that water companies now know that they need to act and they must start to do so immediately. Some are already acting ahead of the measures set out in the Environment Act to produce drainage and sewage management plans. I have been sent plans from four companies—Northumbrian Water, Severn Trent Water, Thames Water and Wessex Water—and I am quite sure that others have also prepared plans setting out what they are committing to do under the current and the next water industry national environment programme as part of their plans for capital investment.

I have a couple of frank questions for the Minister about whether our water company regulators are fit for purpose. With the work that I and my Committee have done, there is no doubt that both the Environment Agency, through poor monitoring, and Ofwat, through poor enforcement, have not met the standard we expect of our regulators to protect the environment of our waterways. Self-monitoring by water companies, permitted by the Environment Agency since 2010, has allowed them to discharge sewage more or less at will. The proof is that it took water companies revealing during the course of our inquiry that they might be in breach of their permits for the Environment Agency and Ofwat to announce major investigations into potentially widespread non-compliance by water and sewerage companies at sewage treatment works. Those investigations continue, so I cannot discuss them.

Where the Environment Agency has prosecuted companies for persistent breaches, judges have started to impose more meaningful fines, but even though these fines might start to capture the attention of water company boards rather than being seen as an inconvenient cost of doing business, as previously low fines appear to have been, fines paid by water companies for breaching environmental standards go directly to the general Treasury account; they do not contribute to solving the problem. I urge the Minister, therefore, to work with Treasury colleagues to enable water company fines to be ringfenced for water quality improvement. There could be a stand-alone fund managed by DEFRA or an arm’s length body with an independent chair, or it could be left to water companies to administer based on the environmental priorities of the river or coastal system they have been found to have polluted. Instead of allowing water companies to hand back a tiny rebate to individual ratepayers, potentially hundreds of millions of pounds could be put back into environmental protection. Although we all hope that no such fines will be necessary, we must deal with the world as we find it, and we think that would be a practical step toward solving the problem.

I have another suggestion for the Government. We know that more houses must be built to meet the UK population’s needs. When development consents are granted, developers are obliged to contribute to the additional infrastructure required—roads, schools, medical facilities, or other basic infrastructure—but, as we have just heard from my hon. Friend the Member for Central Suffolk and North Ipswich, water companies are not statutory consultees and local authorities have no power to require developers to contribute to any necessary water infrastructure. Indeed, the infamous right to connect explicitly removes such costs from developers. I urge the Minister to work with me on using the opportunity presented by the Levelling-up and Regeneration Bill, which had its Second Reading last night, to put this right and to empower local authorities to require developers to contribute to meeting the cost of the infrastructure required for water and waste water connectivity of new developments, which are contributing to the pressure.

I commend the motion to the House.

--- Later in debate ---

[Daisy Cooper]

I thank the right hon. Member for his intervention, and I think that is an exceptionally good idea. I am certainly open to any idea that effectively makes these water companies cough up to clean up the mess they have made. I would happily have a conversation with him to see how we can advance such a suggestion.

In addition, I would like the Government to add members of local environmental groups to water company boards. Some of our river volunteers, certainly in St Albans, are themselves experts—they know these rivers inside out—and they should have a voice and a role on water company boards.

I would like to see Ofwat using its existing powers to tackle the discharge of raw sewage, but I also want Ofwat’s powers to be strengthened, and I will give two or three quick examples. I do think that the Government could give Ofwat the power to force water companies to make repairs and investments to reduce sewage discharge. Ofwat could have the power to ban companies from giving bonuses to their executives until this mess has been cleaned up, and Ofwat should have the power to force companies to publish the number of sewage discharges more regularly than just once a year.

[Philip Dunne]

The hon. Member may not be as familiar with the Environment Act as I am, but it is made very clear in the Act that the monitoring devices that water companies are going to be obliged to install will make information on water quality available within 15 minutes or in near real time.

[Daisy Cooper]

I thank the right hon. Member for that intervention. I was not aware of that, and I am grateful to him for informing me. On the River Ver in St Albans, a number of our river wardens have taken part in a citizen science project in which they are regularly involved in testing the quality of the water, so I am sure many of them would be keen to take part and observe that particular set of data.

Finally, I am pleased that we have had this debate today, but I am shocked that we are still having to have it.

--- Later in debate ---

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I sincerely thank the right hon. Member for Ludlow (Philip Dunne) for all the work that he has done on this issue. He has done so as Chair of the Environmental Audit Committee, on which I, too, served, spending much of my early years here with him on the Committee—in fact, today marks the fifth anniversary since I was elected—through his private Member’s Bill and through his significant campaigning on issues of sewage. He opened the debate in his typically stylish way.

I thank the Backbench Business Committee for granting this debate—a Committee on which I also served as a Back Bencher. I know the vital role that it plays in allowing important subjects to be aired in the House. I also thank all the Members who have taken part in this last piece of parliamentary business this week.

We have had a broad range of excellent contributions. The hon. Member for Broxbourne (Sir Charles Walker) is a doughty defender of anglers and the need for clean water for angling. He will be pleased to hear that I have met the Angling Trust. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard), whom I was with in Plymouth just last week, called for greater accountability on the SPS and the need for more powers at Ofwat, and his points were well made. He is right about the lack of a clear plan for decarbonisation and nature restoration, and I commend him on his ambitious campaign to get Devil’s Point designated an official bathing water spot. Maybe one day I will be able to bathe in it with him. [Interruption.] In wetsuits—I hope people will not read too much into that.

The hon. Member for Kensington (Felicity Buchan) made an important contribution on flooding, which, due to climate change, will be ever more frequent unless more action is taken, especially on upland catchments. My hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) gave an account of Mogden sewage treatment works discharging into the Duke of Northumberland’s river—one of too many such horrific events.

The hon. Member for Southend West (Anna Firth) made a good point about the need to ban wet wipes. We already had a Bill that my hon. Friend the Member for Putney (Fleur Anderson) attempted to get through the House, and hopefully we will see it come back to this place again. The hon. Member for Devizes (Danny Kruger) made a good point about nature-based solutions; I saw a similar project to the one he described on a reed bed in Norfolk by Anglian Water and Norfolk Rivers Trust, and we need to see many more of them. The hon. Member for Wantage (David Johnston) made a good point about new housing creating huge strain on the infrastructure dealing with sewage.

The fact is that our rivers are dirty. They have been dirty for too long, and they have got dirtier. Beyond a shadow of a doubt, we need them cleaned up. The Victorian sewage system was implemented because the Thames had become so toxic that the Prime Minister of the time, Benjamin Disraeli, could no longer stand to be in the Chamber during the “Great Stink” of 1858. He said the Thames had become,

“a Stygian pool, reeking with ineffable and intolerable horrors”.

Outside Parliament now, the heirs of Bazalgette are creating the super sewer, which will reduce sewage overflow into the Thames in central and east London—although not in west London past Hammersmith, a point my hon. Friend the Member for Brentford and Isleworth made. However, it is the only such project in the UK. When the House passed a motion declaring an environment and climate emergency three years ago, that should have challenged the water industry and the Government to undertake radical change. We can no longer accept being the dirty man of Europe.

It is fair to say that the Government have started to move on this, although they have been brought to it reluctantly, and in no small part due to campaigning of the right hon. Member for Ludlow and the screeching public outrage when Conservative MPs were whipped to vote against an amendment calling for the end of raw sewage discharges. We need more power in the hands of consumers so that they can understand what is happening in their communities.

Let us recap the water industry numbers so that we can see where there is space in the system for solutions. The water companies in England collectively invested £1 billion less in real terms last year than they did in 1991. In the past 11 years they have added £19 billion in dividends to shareholders. That is the financial leakage.

Then there is the water leakage, with 229,000 litres in 2021 and, as we know, hundreds of thousands of sewage dumping events. In 2020, there were just shy of 400,000. In the same year, the average household in England saw £62 of their bills go as dividend. The hon. Member for St Albans (Daisy Cooper) made a good point about water company bosses receiving bonuses while those dumping events take place.

[Philip Dunne]

The hon. Gentleman is making an impressive speech and I am grateful for his kind comments about our serving on the Committee together. On the matter of dividend payments, is he aware that many of the water companies’ capital structures mean that payments made as interest on the significant loans they take out to invest in their businesses are structured by way of dividend payments to inter-company subsidiaries and accounts? Therefore, the gross amount of dividends does not actually reflect dividend payments to equity shareholders, but includes interest payments.

[Alex Sobel]

I think the figure I quoted was just dividends to shareholders, but I will check on that. I understand the point the right hon. Gentleman makes. We need to de-duplicate that data.

The Rivers Trust has a brilliant website with an interactive map that allows people to zoom in on where they live and see where raw sewage is being discharged. It is disturbing to see how close to many of our communities this discharge is taking place—even directly on to children’s playing fields. We need a plan for raw sewage discharges that considers not only storm overflows, but a creaking sewage system. There is routine discharge of raw sewage into rivers and seas, not in the event of extreme weather from combined sewer overflows but as a result of daily discharges. The fines levied against companies include the £90 million fine for Southern Water, but we are still seeing discharges by Southern Water—for instance, in Whitstable, affecting the fishing and tourism industries. This just shows that the system is not working. I agree with comments by Members on both sides of the House about delays in prosecution. Ministers need to make sure that the Environment Agency puts real emphasis on bringing further prosecutions. The level of fines is not yet producing a change in behaviour in water companies and stopping raw sewage being routinely discharged. The word “routinely” really matters, because it means that it happens every single day. While we have been debating, the water companies have been routinely discharging raw sewage, not because of extreme weather in the past hour but because of a sewerage system that cannot cope with the level of demand being placed on it and the lack of investment in it. I will resist the temptation to slip into a speech on sustainable urban drainage, which we can pick up on another time.

The Environment Act 2021 sets out changes to the way that raw sewage will be reported on and the need for plans. It did not set out a timetable for when the scandal of raw sewage discharge would be brought to an end, nor did it set out any interim targets. The Ofwat strategic priorities also fail to give that clear direction. We need to delve into the workings of the water industry. That will influence the changes for water companies in the next pricing period, but what changes are happening right now? They know that they do not have to invest in the same way until the next pricing period, because Ofwat sets the pricing controls and the investment strategies. Although many water companies fell foul of the business plans in this period, I doubt that we will see a huge surge in action to close raw sewage outfalls and investment in the treatment period until the next price period. The challenge is what we do about it now, and that really matters. What we discharge into our rivers is not always easily seen. We need a clear plan to understand how much will be stopped, how much will be properly treated, and how much will be carefully looked after in future. Water companies discharged raw sewage into England’s rivers 372,533 times last year—a slight reduction on the previous year. Taking the past three years together, raw sewage was discharged over 1 million times for a duration of over 8 million hours.

The Government’s storm overflows discharge plan has been rightly criticised for its lack of urgency. Mark Lloyd, the chief executive officer of the Rivers Trust, said:

“I’m disappointed that this plan lacks the urgency we so desperately need. This plan is going to need strong input from civil society and NGOs like The Rivers Trust if it is going to outpace the twinned climate and nature crises we’re currently facing. We want to have rivers where people and wildlife can thrive, but the target timelines in the plan are far too slow—I want to see this in my lifetime!”

I do not know how old the CEO is, but that is probably a considerable length of time.

Data released by the EA show that the 10 water companies covering England were releasing raw sewage into waterways for hundreds of thousands of hours in 2021. The 372,533 spills were recorded only on those overflows where event duration monitors were in place—just 89%, so the actual figure is considerably higher. More than 60 discharges a year from an overflow is considered too high and should trigger an investigation. On average, 14% of discharges from the 10 water companies passed that limit. In one event last year, 8.7 million gallons of raw sewage discharged into the River Calder above Wakefield, and the fine was just £7,000. Water companies in England are under investigation by the regulator—Ofwat—and the EA after they admitted that they may have illegally released untreated sewage into rivers and waterways. The investigation will involve more than 2,200 sewage treatment works, but any company found breaching its legal permit is liable to enforcement action, including fines or prosecutions. Fines can now be up to up to 10% annual turnover in civil cases or unlimited in criminal proceedings, and I welcome that.

The SPS states that Ofwat should

“enhance the quality of the water environment”.

However, last autumn, beaches around the Tees estuary and along the coast in North Yorkshire saw a huge rise in dead and dying crabs and lobsters. Dogs were also found to be falling ill after being walked on the beaches. In January, the Government launched what they called an “investigation”. In February, they put out a press release announcing that the mass death of sea creatures and the dog illnesses were caused by an algal bloom. The Minister and I have an association going right back to when I first got elected, and one thing I learned from her is that it is always good to be appropriately dressed for debates, which is why I have worn this tie today. I notice that she is dressed in a very algal-bloom green, so I am not sure whether she is going to refer to this issue in her closing remarks. The Government claimed that there had been a rapid increase in the population of algae that can release toxins into the water and affect other wildlife, but no data or evidence was published.

An algal bloom occurring in October or in February ranges from unlikely to impossible, as blooms require high temperatures and clear water, and the sea off Northumbria and the Tees is cold and turgid. Also, no bloom was noticed by the local fishing community, so they and anglers commissioned an independent investigation by a marine pollution consultant, Tim Deere-Jones. Using freedom of information requests, he found that the Government had based their judgment that it was algal bloom on only satellite data. More astonishing, he also found that levels of pyridine, a toxic pollutant, in crabs caught in the north-east and tested by the Government was 74 times higher than in crabs caught in Cornwall. Will the Minister now bring together agencies including Ofwat and the Environment Agency, as well her own Department, to get to the truth of the matter?

The strategic policy statement is not just about protecting the environment and the stability of the industry; it is also about protecting consumers. The Government claim that their No. 1 priority is the cost of living crisis, but social tariffs are a postcode lottery, with no consistency between companies in the financial support offered to consumers and no legal minimum. The Government have not even imposed a statutory duty on water companies to provide that support or on Ofwat to require it. The Government have set the weakest possible framework. Average water bills rose by 1.7 % to £419 in April 2022, but there is significant regional variation, with the average bill rising by 10.8% in one water company area. People are struggling, and for many households a water bill can be the straw that breaks the camel’s back.

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

I stand here not in my algal bloom dress but in what I think of as my biodiverse dress. I congratulate my right hon. Friend the Member for Ludlow (Philip Dunne) on securing the debate and thank him very much for all the work that the Environmental Audit Committee did during its inquiry into river quality. It is a very popular Committee of which both the shadow Minister, the hon. Member for Leeds North West (Alex Sobel), and I are former members. When the Committee comes out with a report such as this, it makes one sit up and take notice.

[Philip Dunne]

I am grateful to my hon. Friend for taking such an early intervention, but as she has mentioned the Committee’s popularity, it would be remiss of me not to point out to the House that, as a result of the election of our right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill) as Chair of the Environment, Food and Rural Affairs Committee, there is a vacancy.

[Rebecca Pow]

I thank my right hon. Friend for pointing out the opportunity to do a little canvassing.

The report from the Environmental Audit Committee is extremely comprehensive. As my right hon. Friend said, we took careful note of it and took on board a great many of the recommendations made, which shows what a role a Select Committee can play when it is working constructively and well, and we are singing from the same hymn sheet of wanting to improve the quality of our water. We are taking extremely strong action on that agenda and this Government will not stand still. I expect to see change and to see it happen very quickly, and judging by the consensus on both sides of the House today, I believe we all share that view. This Government will not hesitate to take action if the measures we put in place do not happen.

I made water quality a priority when I became an Environment Minister. As the Environment Bill went through, we really strengthened it, with lots of input from Members on both sides of the House. We now have some really strong measures to tackle the unacceptable situation that has come to light. I make absolutely no bones about that. It is this Government who have, for the first time, set out in the strategic policy statement to Ofwat, the regulator, that water quality is a priority and the regulator must hold water companies to account for delivering affordable, secure and resilient water services. This Government have also made it crystal clear that water companies must significantly reduce the frequency and volume of discharges from storm sewage overflows, to the point where the Environment Act 2022, which is an exceedingly weighty tome, now has six pages on tackling storm sewage overflows alone. If hon. Members and hon. Friends have not looked at it, they should do. We have set out a plan that will revolutionise how water companies tackle the number of discharges of untreated sewage.

--- Later in debate ---

[Philip Dunne]

Very brief, Madam Deputy Speaker. Thank you for calling me and for chairing our debate. In essence, every contribution from across the House has been in agreement: we have broad consensus that now is the time to fix the water quality of our rivers, and Ofwat is the mechanism by which the process can begin. I am extremely grateful to the Minister in particular for her response to comments made from across the House. I hope that her officials will read the transcript and the commitments that she made. Hon. Members, and certainly I, as Chair of the Committee, will be happy to engage with her on some of the additional points on which she responded so positively. I also thank the Opposition spokesman, the hon. Member for Leeds North West (Alex Sobel), who approached the debate in characteristically constructive style.

I would gently say to the sole representative of the Liberal Democrats, the hon. Member for St Albans (Daisy Cooper), in a slightly discordant way, that calling for a sewage tax and to ban sewage discharges as a legal, overnight measure reflects the lack of credibility or realism in proposals that the Liberal Democrats often make on this matter. I must say that their intervention on the Animal Welfare (Sentience) Act 2022, which was to make it an offence for mammals to die from sewage exposure, was a typical example of a completely ludicrous proposal. There was no evidence that that was a problem; the Committee received no evidence on the subject whatsoever. It was political posturing ahead of local elections, and I am afraid that that needs to be called out.

Question put and agreed to.

Resolved,

That this House has considered the Government’s strategic priorities for Ofwat.

[Robert Jenrick (Newark) (Con)]

On a point of order, Madam Deputy Speaker. I wonder if I can take your advice on how I can raise an urgent matter with the Foreign Secretary and her colleagues. Earlier today, a constituent of mine in Newark, Aiden Aslin, along with another British citizen, Shaun Pinner, was sentenced to death in a show trial held at the auspices of Vladimir Putin and his Russian regime.

Both Aiden and Shaun are British citizens who happened to be fighting in the Ukrainian armed forces and were captured by the Russian army around Mariupol. Both are prisoners of war who deserve to be treated appropriately and in accordance with the Geneva convention. Instead, the Russian army put them through a Soviet-era show trial and, earlier today, sentenced them to death. That is completely unacceptable and the most egregious breach of international law. I hope that my right hon. Friend the Foreign Secretary will summon the Russian ambassador to the Foreign Office at her earliest convenience to convey a clear message that British citizens cannot be treated in that manner, and that both Aiden and Shaun should be freed and returned to their family and friends, either in Ukraine or home here to the United Kingdom, as soon as practicable.