Mains Water Connections: Cost for Rural Communities

Rebecca Pow Excerpts

Tuesday 5th September 2023 Westminster Hall

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

It is a pleasure to serve under you this afternoon, Ms Ali. I must begin by thanking my right hon. Friend the Member for Middlesbrough South and East Cleveland (Sir Simon Clarke) for bringing this matter before the House, and for championing those in his constituency, who he speaks about so clearly and with a great deal of compassion. I obviously realise on hearing his words—we have talked about this before—that there are some real challenges in this case. I welcome this opportunity to air the subject. I will talk generally about private water supplies, which will not surprise him, and then come on to his specific case about the cottages.

As my right hon. Friend will know, drinking water policy is devolved—we had a comment from Northern Ireland earlier—so these comments will apply only to England. Obviously, private water supplies generally originate from a range of local sources, whether they are boreholes, natural springs, brooks or becks. I grew up on a farm. We had our own private water supply for some parts of the farm, and for some cottages. Over the years, all that sort of changed according to how the situation was going. It is something that I have a bit of background knowledge on.

According to the Drinking Water Inspectorate, 1.7% of the population in England get their water from a private supply as of 2022. I am pleased to say that, overall, the compliance of private supplies with the drinking water standards has been steadily improving. According to the Drinking Water Inspectorate’s annual report summarising the data from all local authorities, the compliance rate was 96.4% in 2022, up from 91.4% in 2010. That is a pretty good record; it is improving.

Private water supplies, as my right hon. Friend will know, are regulated under the Water Industry Act 1991 and the Private Water Supplies (England) Regulations 2016. Local authorities are the regulators of private supplies and are responsible for identifying the risks to the quality of the water. They may serve a notice if they determine that the supply is, was, or is likely to be unwholesome or insufficient, and they must serve a notice if they consider there to be a potential risk to human health. My right hon. Friend mentioned that the water had been sampled a number of times by the local authority. He also mentioned what had been flagged as a result, and the advice given.

Local authorities can recover the costs incurred for the duties that they perform from those responsible for the supply—a point I will come back to. Although private water suppliers are found across most regions of England, the highest number are in rural areas. In my constituency and wider Somerset, it is not uncommon to have a private water supply. Often farmers supply their own water, but some of them supply other houses, although there can be other providers. In many cases, people can and want to remain on their private supply, and that is their right.

We recognise that in some cases property owners wish to connect to the mains water network. In such cases, water companies have a duty under the Water Industry Act to make supplies available where it is feasible to do so. They obviously check capacity and so forth. The water company that has distribution mains closest to the property would then check that there is capacity in the network and so forth. However, water companies do not need to provide a mains connection free of charge. We understand that the costs of connection can be high, but it is right that the legislation should allow a water company to charge to make a new connection. Otherwise, the cost of such connections would need to be absorbed by all the existing customers, who do not benefit from new people connecting, and there would be a knock-on impact on people’s bills. I think people understand the point about whether others should carry the can for the cost of someone joining.

When it comes to connections to the mains, the role of Government, via the economic regulator Ofwat, is to ensure that water companies act responsibly and transparently in the services they provide and the fees they charge. That is why Ofwat requires water companies to set charges that reflect the cost of undertaking the work. That has to be clear and transparent. Ofwat also requires them to publish up front the charges for most of the new mains and connection services they provide, and to provide worked examples, so that customers can understand how the charges are calculated. On top of that, there is an element of competition in the market, which might help to reduce connection costs. Customers have the option of contracting with third-party providers, known as self-lay providers, who compete for the work against the water companies.

There are also avenues for recourse when people on private supplies are not happy with the costs quoted by the water companies. They can complain to the water company in the first instance. If that does not resolve the concern, they can ask the Consumer Council for Water to look at the case. Although the Consumer Council for Water has no formal responsibility to review charges for connection, it will challenge companies to provide clarity and review their charges where it considers that appropriate. That might be another avenue to explore further. Ofwat is responsible for enforcement if a water company is not complying with the expected charges, and can issue directions if companies do not comply with Ofwat’s charging rules. Constituents therefore also have the option of contacting Ofwat with their concerns.

On Aysdalegate cottages, the example being talked about today, officials from DEFRA and the Drinking Water Inspectorate were in contact recently with the local authority, Redcar and Cleveland Borough Council, to discuss the case. I understand there are nine households supplied by a beck located on third-party land—the third party is a local livestock farmer. I understand that the local authority has in the past proposed a number of options as part of its risk assessment, including: improving the existing supply; exploring a new water source, such as a borehole; and mains connection.

I was pleased to hear that the water company has stepped up to say that it will pay for the cost of exploring the options, and it should be thanked for that, because it is not an insignificant amount of money that it has committed to, so I am pleased about that. Installation of high-quality filtration and UV treatment equipment at the point of use in each household is likely to significantly improve the quality of the supply. The Drinking Water Inspectorate provides guidance on UV treatment on its website and recommends that any UV system used for this purpose be tested by an accredited laboratory. The inspectorate was at pains to explain to me that it is really important that the right kit be used if that road is taken, because some kit would not be as good.

I understand from my officials’ discussions with the local authority that, to date, not all residents at these properties have wanted to connect to the mains. Ultimately, the householders will need to reach a consensus on what joint action they want to take to improve their water supply.

[Sir Simon Clarke]

I thank the Minister for her helpful reply. From my conversations with the residents, I think that they have in some cases indicated a lack of willingness to connect precisely because the costs are anticipated to be beyond their means. This goes to the fundamental point that I was driving at: there is a mechanism, but it is effectively out of reach for, in this case, a very deprived group of people.

[Rebecca Pow]

I hear what my right hon. Friend says and thank him for clarifying. I obviously sympathise with the challenges faced by people on private supplies.

My right hon. Friend might be interested to hear that the Drinking Water Inspectorate has recently commissioned a research project to review the impact of the current private supplies regulatory framework on public health. To be honest, the inspectorate considers that some areas may need to be looked at forensically, and it will return with its results early in 2024—not too long away. As with all legislation, the Government will keep the regulatory framework for private water supplies under review, but we look forward to hearing what the inspectorate comes back with, because it may well have some synergy with some of my right hon. Friend’s points. As for individual cases, the Drinking Water Inspectorate can provide technical advice to local authorities, and that facility should be made full use of. My office would be happy to provide all the details and contacts if my right hon. Friend does not have them.

I cannot give my right hon. Friend exactly what he has asked for, but he has raised an important issue. I think the review will be helpful in directing us, so we look forward to its outcome. I thank him again for bringing the matter to the attention of the House.

Question put and agreed to.

Draft Environmental Permitting (England and Wales) (Amendment) Regulations 2023

Rebecca Pow Excerpts

Tuesday 5th September 2023 General Committees

[The Chair]

Before I call the Minister, I would like to say that, as the eagle-eyed will have spotted, Members may remove their jackets.

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

I beg to move,

That the Committee has considered the draft Environmental Permitting (England and Wales) (Amendment) Regulations 2023.

It is a pleasure, as ever, to have you in the Chair, Mr Davies. The regulations were laid in draft before this House on 28 June and amend schedule 9, part 2, to the Environmental Permitting (England and Wales) Regulations 2016. The Government committed to amending those regulations in the response to the 2021 consultation on the extended producer responsibility for packaging, or EPR, scheme to obtain enhanced packaging waste data from materials facilities. The EPR scheme will move the cost of dealing with waste generated by households from local taxpayers and councils to businesses that handle and use packaging, making producers responsible for the packaging they place on the market.

In 2020, the Department for Environment, Food and Rural Affairs undertook a post-implementation review of schedule 9, part 2, to the Environmental Permitting (England and Wales) Regulations 2016. The review included a recommendation to explore the connections between materials facilities data reporting and the EPR scheme. In many cases, those facilities are where the material ends up. The review concluded that DEFRA would consider amending the regulations. These amendments will improve the quantity and quality of packaging waste data that materials facilities are required to collect, record and report. That in turn will support fair and accurate cost assessments and payments through the EPR scheme.

I turn to the details of this instrument. These amendments to the regulations will introduce enhanced sampling, recording and reporting requirements for materials facilities and increase the scope of the regulations to include more types of facilities. Materials facilities will be in scope of the amended regulations if they receive and manage at least 1,000 tonnes of household or household-type material a year for the purpose of reuse and recycling. The sampling requirements will include a higher input sampling frequency—in other words, sampling will be conducted more often—and more material categories for facilities to sample and report against. There will be an increase in the number of categories from four to 10, and new categories including a requirement to record data on fibre composites such as Tetra Paks and coffee cups that have a layer of aluminium or plastic inside. Facilities will also need to separately record and report against packaging and deposit return scheme material proportions, to support packaging composition calculations or exemptions under EPR.

[Rachael Maskell (York Central) (Lab/Co-op)]

It seems that these regulations are necessary, but I am concerned that the Government’s approach will drive behaviour change far too slowly and that the scale of non-recyclable packaging usage will still have an impact on the environment. What is the Minister doing not only to recycle and to reuse, but to reduce the amount of packaging used?

[Rebecca Pow]

I share the hon. Lady’s views entirely. That is the whole purpose of this: to drive the change we need to reduce the overall amount going on the market, because our hierarchy is reduce, reuse, recycle. The reason why the data is so important is that it helps to inform how much is in fact going on to the market; it will then be used by the scheme administrator, in setting up the extended producer responsibility scheme, to work out what the fees will be.

The less recyclable a company’s product is, the more that company will pay—so it will say, “Hold on a minute. Could we make this recyclable?” Loads of companies are probably already reducing the amount of packaging that they use ahead of this system; they know that if they do not, it will cost them. All the schemes that we will be rolling out will work in tandem to achieve what the hon. Lady is asking for.

[Charlotte Nichols (Warrington North) (Lab)]

To pick up on that point, the Minister referred to companies paying according to how much of their product is recycled. What consideration has she given to producers that already have closed loop recycling schemes in place? Wiltshire Farm Foods in my constituency is an example. It has a scheme that is more effective for recycling its own products than what the Government propose here.

[Rebecca Pow]

I thank the hon. Lady. I have met representatives of the company—as have many colleagues, I believe. It has a really interesting model. In fairness, it was ahead of the game in having effective closed loop models. We are working with it to come up with a solution for all. Obviously, we do not want to penalise people who are already doing the right thing.

The enhanced recording and reporting requirements will require materials facilities to provide more information on waste suppliers and samples taken, and to report all raw data to regulators to support the improved analysis. To give an example of that in practice, I should say that in my constituency of Taunton Deane the council contracts Suez, a waste management company, to perform our waste collection. When a Suez truck picks up household waste—I hope my son has put ours out this morning; I forgot to leave him a note—and delivers it to a materials facility for reuse and recycling, that facility will sample the waste so that we know how much is EPR packaging material and how much is newspapers, magazines, deposit return containers, contamination or other non-packaging materials. The waste collected by Suez from neighbouring councils, or from its own commercial contracts with business, would be sampled separately.

The process will help to ensure that the EPR payments to my local council reflect the quality and quantity of packaging materials collected from my constituents’ homes. That will provide valuable new information to help my council to optimise waste collection operations, and, through EPR payments, to provide a new means to incentivise councils to improve performance and ensure that producers get good value for money.

These amending regulations apply to England and Wales only. Scotland and Northern Ireland are aligned to our policy intent when it comes to bringing in enhanced materials facility sampling requirements and waste data reporting to support EPR.

[Rachael Maskell]

I am very conscious that local authorities are tied into waste disposal contracts that will not deliver on the Minister’s objectives. What is she doing to enable local authorities to renegotiate those contracts to meet these environmental standards?

[Rebecca Pow]

I thank the hon. Lady for that intervention. My officials have close and continuing engagement with local authorities. We understand that there are a whole lot of different models. We are engaging with local authorities on how they can work through the new systems to deliver what we need, without creating hardship for those authorities. Some councils are clearly tied into contracts, and all that is being worked through with them. However, as I said, the general direction of travel is to reduce, recycle and reuse and to get to our targets for cutting down the overall amount of waste that we create as a society.

As I was saying, these amending regulations apply to England and Wales only. Scotland and Northern Ireland are aligned with our policy intent to bring in the enhanced materials facility sampling requirements and the waste data reporting to support EPR. My officials and I are working closely with the relevant Departments in the devolved Administrations to develop that legislation. The measures will be crucial for providing a mechanism to obtain enhanced data on packaging and the waste management services needed to achieve the effective implementation of EPR, and realise the associated environmental benefits.

--- Later in debate ---

[Rebecca Pow]

I thank the shadow Minister. Although he is a stand-in, it is always good to see him. I also welcome the new shadow DEFRA Minister; I know we will be meeting very soon.

The shadow Minister suggested that it had been a bad summer for me, but in fact it has been a good summer. I went on my water walkabout around the country. Contrary to what one might read in the press, I saw an awful lot of excellent work going on in the water space, across a whole range of facilities, including a great many sewage treatment works, where I looked at the monitoring kit. I analysed in great detail how the whole system works, as well as the new schemes we are bringing forward to get duration monitoring, and extra monitoring upstream and downstream.

Similarly, I saw some of the excellent work going on with chalk stream restoration, particularly in the consistency of my hon. Friend the Member for Bury St Edmunds and other counties. It gave me great heart that what we are doing on chalk stream restoration in particular is game changing. We absolutely will be committed to that.

While we are talking about our record, let me say that, far from people overseas looking at us and thinking that we are downgrading what we are doing and that what we are doing is not good enough, we are actually revered across the world. I did go to see another piece of DEFRA work, which was overseas, that was working on waste recycling and ocean protection regarding plastics. I can tell hon. Members that the schemes that we are bringing in—the way they all knit together—and our collection system, from household to recycling facility and onwards, are really revered by other countries.

Yes, we still have a long way to go to knit this all together in a completely circular economy, but I will not allow the shadow Minister to berate us for what we are doing, because I know that it is the right thing to do. We will continue with it—we are absolutely committed to it, as he knows—and it will make the difference that we need; we are already well on track. That was slightly out of the box, but while we are at it, I will point out that 93% of bathing waters are good or excellent—I have seen a lot of that, too.

To answer the shadow Minister’s questions, yes, there has been a great deal of local authority consultation. It has been ongoing with officials and ongoing with me. As I explained earlier, it is very important, and it will continue. On the impact assessment, as I said earlier, as part of the Government response to the consultation on the EPR scheme, we produced an EPR impact assessment, which included the expected costs to materials facilities in meeting the proposed regulatory requirements. Assumptions about the estimated number of materials facilities in scope were then revised with regulators, following clarification on the definition and the types of facilities in scope of these amending regulations, further reducing the burden on facilities where possible. Originally, 739 facilities were estimated to be in scope in England. That was revised down to 159, following our receiving the updated data and the assumptions of the Environment Agency. As a result, the threshold required for producing a full impact assessment for this SI was not reached. The shadow Minister asked about that, so I hope that what I have said answers his question. A lot of the facilities that were in there were moved out, because they will be assessed in a different way—they are mostly the household recycling centres, where material goes to. That material will be captured, but in relation to what we are dealing with today, the facility numbers have been revised right down.

This will be a new recording requirement for local authorities, but they have known that it has been coming down the track, because we consulted a while ago, and it does not actually come in for 12 months, so they have more time to gear themselves up to it. They will also get their first invoices when all this data and other data has been used to calculate the expected fees—they will get their first invoices for EPR in October 2025.

[Daniel Zeichner]

On the costs, will the Minister clarify something? Many of these organisations seem to think that there will be a significant extra cost. Does she think they are wrong?

[Rebecca Pow]

Well, we carried out the impact assessment. One of the purposes of the entire scheme, when it is correctly functioning, is that the amount of waste going into the system will overall be reduced. Of course, that is why we are asking the organisations to collect data, for example on what later will be in the deposit return scheme. Most of that will not be in this waste once this gets working properly. A lot of it will not even be there. It will, just to start with, and that is why gathering the data is so important, because the whole system will be functioning as one, so that the costs will not be prohibitive, according to our calculations and working with them, when they have to start doing this extra sampling.

The shadow Minister also asked about enforcement. The EA is already starting work with the permitted facilities to talk to them about what is expected of them, what they will have to do, and how they will bring that in. I hope that answers his question; we can write to him with more detail on the funding if he would like. We are also constantly working with the producers. They are the ones who put the packaging on the market and they will be the ones who have to pay the fees. That is why, as the hon. Gentleman will know, we moved the date for the start of the EPR, which, along with current impacts around the cost of living and inflation, was largely to give industry members more time. Work with them is ongoing to make sure we get this right. It is new and complicated, but I am engaged with the Food and Drink Federation, the British Retail Consortium and so on, as are my officials. That is important.

That covers the questions. The shadow Minister asked about the overall schemes for the circular economy and the “polluter pays” principle. All the schemes are linked to the whole “polluter pays” principle, and that is what underpins them. Although there have been some delays, we are still doing all the work to make sure they are introduced within the timescales we have set. We are looking all the time at feedback from industry, hence the delay on the EPR scheme by 12 months, and I also remind the shadow Minister that it was a joint decision with the devolved Administrations. The additional year gives everyone more time to prepare for the systems when they come in. The materials facilities will need to meet the requirements introduced by this statutory instrument in advance of the EPR in 2025. We want all those requirements implemented before then to ensure that the data can be used by the scheme administrator, as I said earlier, to continue developing their fees and payment mechanisms.

Consistent collections in England for households will introduce a simpler system for recycling waste material. That will not be introduced until after the implementation of the EPR for packaging scheme in 2025. Councils are still waiting for the absolute detail on that, and that is why we are working with them to make sure that everything is streamlined and they know what will be required. I hope I have covered most, if not all, of the shadow Minister’s questions. I will write to him about the detail of the sums.

In summary, this statutory instrument will make crucial changes to the Environmental Permitting (England and Wales) Regulations 2016. Those amendments will introduce a new sampling requirement on materials facilities and bring more facilities in scope. That in turn will enhance the quality and quantity of waste data, strengthening the original objective of the regulations in response to the post-implementation review, and support fair and accurate payment calculations in the EPR scheme. I trust that I have made it clear about what the SI brings in; once again, I thank all hon. Members.

Question put and agreed to.

Strengthening Environmental Civil Sanctions

Rebecca Pow Excerpts

Wednesday 12th July 2023 Written Statements

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

Protecting our natural environment is a Government priority. The Government are pleased to announce today that we have laid new secondary legislation to strengthen environmental civil sanctions and provide the environmental regulators with the tools they need to hold operators to account.

Currently, there is a cap of £250,000 on variable monetary penalties imposed by the environmental regulators for a wide range of offences. We are removing this cap to make the penalty unlimited, so that penalties are proportionate to the degree of environmental harm and culpability. Strong safeguards are in place, including the ability of an offender to pay, when regulators determine the size of penalties. The Environment Agency will use the independent Sentencing Council guidelines to underpin all penalties.

Strengthening regulations that ensure polluters will be held to account is part of our wider plan to reduce pollution and protect the biodiversity and ecology of our natural environment. All funding from fines and penalties handed out to water companies that pollute our rivers and seas will be invested in schemes that benefit our natural environment.

We know that people across the country want to see more progress in tackling pollution and, if operators breach regulations, our environmental regulators need the right powers to impose penalties. These new penalty changes will deter organisations from polluting and increase their incentive to comply with environmental regulations.

We are also introducing unlimited variable monetary penalties as a civil sanction for offences under the Environmental Permitting (England and Wales) Regulations 2016, to ensure regulators have the right tools to drive compliance across a range of sectors and breaches.

This announcement follows our recent consultation, first announced in “Plan for Water”, on strengthening the enforcement regime where the overwhelming majority of responses from the public supported our proposals. These changes complement a suite of Government action under way to better hold water companies to account, including new powers for Ofwat that will enable it to take enforcement action against water companies that do not link dividend payments to performance for both customers and the environment. More details can be found in the attached annex.

Together, these changes will provide a proportionate deterrent and punishment for operators who breach their permits and will help regulators to better protect the environment.

The civil sanction regime for environmental offences should act as a clear deterrent to offenders across all industries, from water companies to waste operators—we will not let companies get away with illegal activity and where breaches are found we will not hesitate to hold companies to account.

Annex 1

As set out in the Government’s “Plan for Water”, we are driving action to strengthen regulation and drive improvements across the water sector, including:

More investment

The £2.2 billion of accelerated investment by water companies, to spend on new infrastructure to tackle pollution and increase our water resilience—including £1.7 billion on storm overflow improvements to cut discharges by 10,000 per year.

Creating a new water restoration fund, using money from water company fines and penalties to support local environmental projects.

Delivering long-term catchment action plans—community-led schemes which aim to improve waterways and surrounding eco-systems—to improve water bodies in England.

More than doubling the money for slurry infrastructure by increasing funding to £34 million for farmers to improve slurry storage, reducing a major source of water pollution.

Supporting farmers to store more water on their land through the £10 million Water Management Grant to fund more on-farm reservoirs and better irrigation equipment.

Stronger regulation

Consulting on banning the sale of plastic wet wipes.

Enabling key water supply infrastructure—such as reservoirs and water transfer schemes—to be built more quickly.

Bringing forward the deadline for water companies to reduce chemicals in wastewater treatment to 2027.

Consulting on extending environmental permits to cover dairy and intensive beef farms, and to improve how this is done for pig and poultry farms, in order to better manage sources of pollution.

Tougher enforcement

Enabling Ofwat to link dividends to company performance, and tightening up measures on “water bosses” bonuses.

Ofwat has also announced measures to penalise companies that fail to properly monitor storm overflows and determined that in the financial year 2023-34, the water sector must return £132 million to customers as a result of underperformance.

[HCWS929]

Environment, Food and Rural Affairs

Rebecca Pow Excerpts

Monday 10th July 2023 Ministerial Corrections

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Many of my constituents are hugely worried about reports of Thames Water being on the brink and what that could mean for their bills. Thames Water has been managed appallingly: leaks have not been dealt with, sewage has been continually dumped and the former chief executive officer Sarah Bentley needed to be asked to forgo her bonus. All the while, the Government have been missing in action. Why are the Government yet again running to catch up—nothing in the Minister’s statement gives confidence that they have a grip—with our constituents paying the price?

[Rebecca Pow]

Where water companies underperform and do not meet their targets, a process is in place whereby basically they have to credit the money back to their customers. Last year, £143 million was credited back in that respect. So the regulator does have the tools to do that. It has tightened up so many of its measures, all of which will affect all the water companies.

[Official Report, 28 June 2023, Vol. 735, c. 286.]

Letter of correction from the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Taunton Deane (Rebecca Pow):

An error has been identified in my response to the hon. Member for Feltham and Heston (Seema Malhotra).

The correct response should have been:

[Rebecca Pow]

Where water companies underperform and do not meet their targets, a process is in place whereby basically they have to credit the money back to their customers. Last year, £132 million was credited back in that respect. So the regulator does have the tools to do that. It has tightened up so many of its measures, all of which will affect all the water companies.

[Dame Angela Eagle (Wallasey) (Lab)]

When they were privatised, water companies had all the debt written off, so they started with zero. Since then, they have borrowed £53 billion, much of which has been used to help pay £72 billion in dividends. The investment has been made by borrowing and putting it on to customers’ bills. Now, the ratings agency S&P has negative outlooks for two thirds of the UK water companies it rates, because they are over-leveraged and took out too much debt in an era of low interest, which they now have to pay back. This is not a triumph but a huge problem for the resilience of our water industry. What will the Minister do when water companies start falling over?

[Rebecca Pow]

For information, Thames Water itself has not paid any dividends for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.

[Official Report, 28 June 2023, Vol. 735, c. 288.]

Letter of correction from the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Taunton Deane (Rebecca Pow):

An error has been identified in my response to the hon. Member for Wallasey (Dame Angela Eagle).

The correct response should have been:

[Rebecca Pow]

For information, Thames Water itself has stated that it has not paid any dividends to shareholders for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.

Oral Answers to Questions

Rebecca Pow Excerpts

Thursday 6th July 2023 Commons Chamber

[Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

6. What mechanisms exist to supply safe drinking water to homes without access to mains water.

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

Private drinking water supplies are regulated by local authorities, which receive scientific and technical advice from the Drinking Water Inspectorate. Local authorities sample and identify water-quality risks, can serve notices to correct any issues identified and have remedial powers if those responsible for the supply do not comply with the notice. Private water supply compliance is steadily improving. In 2022, 96.4% of private supplies were compliant, up from 91.4% in 2010.

[Sir Simon Clarke]

The nine homes of Aysdalegate near Charltons do not have access to mains water. Over the last decade, Redcar and Cleveland Borough Council has performed drinking water checks nine times, and on all occasions, the supply has been judged unsatisfactory owing to bacterial contamination, including E.coli and enterococci. A regulation 18 notice, which specifies that the water requires boiling before drinking, has been in place permanently since December 2017, and residents report to me finding tadpoles and other life in their drinking water. This is a Dickensian scandal in 2023, but Northumbrian Water has advised that it will cost these low-income homes over £100 each simply to give them a quote for mains water connection. That is obviously unacceptable. Will my hon. Friend agree to meet me urgently so that we can discuss how to help my constituents?

[Rebecca Pow]

I am sorry to hear about this issue, which my right hon. Friend has already brought to my attention. Our legislation does allow for those on a private supply to request a connection to the mains supply, but it is right that the legislation allows a water company to charge for the cost of making a new connection, because otherwise it would impact on all customers’ bills. The local authority can give advice, and I urge him to keep contacting it, but if there is anything more we can discuss usefully, I would be happy to do so.

[Jim Shannon (Strangford) (DUP)]

Like yourself, Mr Speaker, I am of a generation that can well remember when water came from the wells, and it was pure and clean. Times have moved on, and we have realised that such water is not available to everyone, as the right hon. Member for Middlesbrough South and East Cleveland (Sir Simon Clarke) said. I ask the Minister this question ever mindful of the discussions that she will have had: have there been any discussions between the Government and the devolved Administration in Northern Ireland to ensure that grants are available for people who need to go on to mains water and that their water is pure, as it was many years ago but is not always today?

[Rebecca Pow]

I thank the hon. Gentleman for his question; I, too, have a well, but it does not supply our drinking water. I think a lot of people have wells on their properties, or locally on their roads or wherever. The issue he has raised is a matter for the Northern Ireland Administration, but here the Drinking Water Inspectorate has commissioned research into the impact of future private water supplies, as well as the whole regulatory model and legislative framework.

[Antony Higginbotham (Burnley) (Con)]

7. What steps she is taking to support farmers.

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

A couple of weeks ago, I visited Yorkshire Water’s sewer improvement project. This £15 million scheme under the A65 in Ilkley is only happening as a result of a huge campaign by the Ilkley Clean River Group and our passing the Environment Act 2021, which the Opposition voted against at every stage. Does the Minister therefore agree that the Government are purely focused on cleaning up the water quality of our rivers?

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

I could just say yes, but I will add a bit more. My hon. Friend is absolutely right that it is this Government who have got water quality on the radar. We are cleaning up our rivers and our bathing waters, 93% of which are classed as good or excellent. Our plan for water will ensure that we provide the clean and plentiful water we need for generations.

[Liz Twist (Blaydon) (Lab)]

Gateshead food bank and Feeding Families, both of which operate in my constituency, have seen huge increases in the demand for food parcels over recent years. With food inflation running at 18.3%, the situation will only get worse. What will the Minister do to tackle food inflation, so that people do not have to rely on those organisations?

[Anna Firth (Southend West) (Con)]

The use of storm overflows is of huge concern to my residents in Southend-on-Sea. Due to this Government’s actions, Anglian Water was supposed to have its plan for mitigating the use of overflows on the Secretary of State’s desk last Friday. Was it there, and when will my residents be able to see it?

[Rebecca Pow]

Every water company was asked to put a plan for every storm overflow on the Secretary of State’s desk. I can tell my hon. Friend that all the plans have arrived and are being analysed.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

What should I say to my twin grandsons, who are here today, about their future given that they live in Cambridge, where air quality is poisoning young people, pregnant women and many others? What will the Secretary of State really do about cleaning up the environment for that generation?

Draft Environmental Protection (Plastic Plates etc. and Polystyrene Containers etc.) (England) Regulations 2023

Rebecca Pow Excerpts

Tuesday 4th July 2023 General Committees

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

I beg to move,

That the Committee has considered the draft Environmental Protection (Plastic Plates etc. and Polystyrene Containers etc.) (England) Regulations 2023.

It is a pleasure to have you in the Chair, Mrs Harris—and particularly in those glasses, if I may say so. I think you are the envy of the room. The regulations were laid before the House on 23 May and their purpose is to restrict the supply of single-use plastic plates, bowls and trays and to ban the supply of single-use plastic cutlery, balloon sticks and expanded and extruded polystyrene food and drink containers, including cups. This statutory instrument applies to England only as environmental protection is a devolved matter. I will cover both its purpose and its impact, starting with the former.

It is the Government’s ambition to leave the environment in a better state for the next generation. Our 25-year environment plan and resources and waste strategy outline the steps we will take to eliminate all avoidable plastic waste by 2042. Government measures focus on extracting maximum value from plastic materials by making sure that we keep them in circulation for longer, moving away from the take, make and throw model and shifting towards a circular economy. Single-use plastic items are especially problematic as they are typically littered or discarded to general waste, rather than recycled, because of the difficulty in segregating, cleaning and processing them.

The statutory instrument will restrict and ban commonly littered single-use plastic items that we so often see polluting our environment and that are, sadly, frequently reported in beach litter surveys. Such items can then endanger wildlife and damage habitats. As well as the items causing damage to biodiversity, there are costs associated with their clean-up. It is estimated that the UK spends more than £15 million each year just on removing beach litter. I think all those present will agree that that is a colossal waste of money that we should not really have to spend. That amount does not include the costs imposed on our tourism and fishing industries, which are also impacted.

As is well understood, plastic eventually breaks down into microplastics that end up in our soils and seas and eventually permeate our food chains. The full impact of microplastics, especially on human health, is still being uncovered. To build on the success of the bans of other single-use plastic items and our carrier bag charge, further action is needed to curtail the use of problematic single-use plastic items and their release into the environment.

Let me turn to the statutory instrument’s impact. We acknowledge the ongoing voluntary action that industry is taking to reduce the use of the relevant items. That action is led by the UK plastics pact, which has done really beneficial work. The new regulations will provide support and ensure that all businesses move to more sustainable alternatives.

To inform the regulations, we gathered the views of key stakeholders by running a public consultation on the measures, between November 2021 and February 2022. The consultation showed overwhelming support for the measures, with more than 80% of respondents supporting their introduction. We also consulted a range of businesses, the NHS and charities to determine the regulations’ scope. To minimise the impact on small businesses, we have given a nine-month lead-in time since the announcement of the ban. It is intended that the instrument will come into force on 1 October this year, from when it will be an offence to supply single-use plastic cutlery, balloon sticks and certain types of polystyrene, with no exemptions.

The ban on the supply of single-use plates, trays and bowls will apply only when the items are supplied to the end user—typically, a consumer will then use the item for its intended purpose. Businesses can continue to supply the items to other businesses, thereby allowing the continuing use of single-use plastic plates, trays and bowls for packaging, as defined in regulation 3 of the Packaging (Essential Requirements) Regulations 2015. This will avoid confusion with the Government’s proposals for extended producer responsibility for packaging, which will make producers responsible for the costs of their packaging throughout its cycle. Those items will, then, be captured elsewhere, although it is important to stress that in all cases we encourage businesses to use reusable alternatives where practical.

We are determined to get this right and it is vital that businesses and the public are informed about what they can and cannot do. We have recently published guidance for businesses, and we will publish our guidance for local authorities in advance of the instrument coming into force. The guidance will assist manufacturers, suppliers, retailers and the public in understanding the enforcement and sanctions regime. The Department for Environment, Food and Rural Affairs intends to raise awareness further by meeting local authority representatives to provide clarity and support on the restrictions and the exemptions, and to empower trading standards officers to carry out effective enforcement.

The instrument also amends the Environmental Protection (Plastic Straws, Cotton Buds and Stirrers) (England) Regulations 2020 and the Environmental Protection (Microbeads) (England) Regulations 2017. It amends the civil sanctions provision in those instruments to provide for fixed monetary penalties instead of variable monetary penalties. There was a great deal of discussion and consultation about this. The change was actually called for, because fixed penalties would be easier to understand and to apply. The amendments will ensure consistency with the civil sanctions provisions in the instrument before the Committee and will make enforcement easier for local authorities. The amendments to the 2020 regulations also remove a transitional provision relating to medical devices, which is no longer needed.

[Valerie Vaz (Walsall South) (Lab)]

I know the Minister is about to finish, but before she sits down, will she say whether local authorities, which are broadly the enforcers of the measure, will be given extra resources?

[Rebecca Pow]

There has been full consultation on the funding that will be required for trading standards departments to carry out the duties that will fall to them. It amounts to approximately £660,000 a year over three years, and local authorities have agreed that that is an adequate sum. There was much negotiation with them to make sure that the funding was in the right ballpark, but such measures are always reviewed three to five years after implementation to see how they are working and whether any tweaks are needed. I can therefore assure the right hon. Lady that resources have been discussed and clarified.

Finally, I have to mention a typographical error in the draft instrument. The heading preceding regulation 40, “Part 1: Amendments”, should be “Part 6”. I am glad that somebody spotted that. Our intention is to correct the error before the instrument is made.

I believe the regulations send a strong signal to industry and the public that we need to think really carefully about the products we buy, the materials from which they are made, and what is being put on the market. The instrument will definitely bring us a step closer to protecting the environment and reducing the risk of harm to human health and marine life. I commend the draft regulations to the Committee.

--- Later in debate ---

[Rebecca Pow]

First, although there were a number of questions—I have come to expect nothing less—I thank the shadow Minister for welcoming the regulations. I think we are all agreed that the measure is necessary and that we need to get behind it. It is certainly incredibly popular with the public, who want to see us doing the right thing for the environment. That is certainly what we are doing on the Conservative Benches, and it is good to have the Labour party supporting us in that.

The hon. Member for Newport West asked a number of questions. If I do not cover them all, I will of course write to the Committee, as there was quite a list pouring out. She asked about the consultation process and mentioned 15 days. Actually, prior to those 15 days we consulted extensively on the issues. We did so in 2021 and throughout 2022 before announcing our intentions this January. We have worked really closely with stakeholders throughout to shape the policy, because we need it to work for businesses.

I thought the hon. Lady would mention the 15-day issue, but it applies only to this statutory instrument to implement the policy, not to the details of the policy, which were all thrashed out in the 12-week consultation. The requirements for the London Gazette consultation, including the minimum length of time, are all specified under the Environmental Protection Act 1990 and are, therefore, deemed suitable for Parliament. DEFRA chose to go a bit further than required by the Act and consulted for longer and published the SI alongside the Government’s consultation response, to ensure that it reached as wide an audience as possible. I hope that the hon. Lady is satisfied with that.

The hon. Lady asked how engaged we have been with businesses. Obviously, that is really important. Our response to the consultation was published in January. As I have said, we have engaged extensively with businesses, trade groups and even individual organisations such as the NHS. We also published guidance on gov.uk back in May, giving industry ample time to prepare. When we first announced our intentions, I went out and did a whole lot of media. I seem to remember that we went to the Co-op and did a whole lot of items about single-use plastics, which got wide coverage and, indeed, wide support from the public.

The hon. Lady asked about the WTO. We did not expect to get comments back from it. Lots of its members have implemented measures on plastics, so it is something that it was expecting. I will not say that it was a formality as such, but it is something that we had to go through, as she will well know.

The hon. Lady also raised the devolved Administrations. Of course, this SI is for England only, but as ever we collaborate really closely with the devolved Administrations. We are doing so right now on our other, wider measures to reduce plastic packaging, particularly the extended producer responsibility regime. Just the other day, I chaired a meeting with all my counterparts in the devolveds. Officials are working incredibly closely. In devolved areas, other nations are perfectly able to act as they wish in their own circumstances. There was an exemption under the United Kingdom Internal Market Act for a number of single-use plastic items, including straws, stirrers, cotton buds, plates, cutlery, balloon sticks, and expanded and extruded polystyrene food and drink containers. That was largely because Scotland brought in its ban in June and ours will come in October, so that seemed a perfectly sensible thing to do just for those few months. I hope that the hon. Lady agrees with that.

I think that that more or less answers the points that have been raised. I am very grateful to the shadow Minister for her support. I reiterate that we believe that these measures are a really important part of our much wider strategy to tackle plastic pollution, not least on the international stage, where we are heavily involved in the international plastics treaty, and that they are an important marker for us in all the other, wider things we are doing as a Government. I thank Members for listening so intently and hope that they are reassured that we are doing the right thing for the environment. I certainly believe that we are doing so and therefore recommend the draft regulations to the Committee.

Question put.

2.49 pm

Committee rose.

Fishing Industry

Rebecca Pow Excerpts

Thursday 29th June 2023 Commons Chamber

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

My goodness! What a passionate and vociferous lot we have on all Benches. They are all champions for the fishing industry. We have even had some fishing-activity rivalries between constituencies—I see all that as very healthy, as, I am sure, do you, Mr Deputy Speaker.

I start by thanking my hon. Friend the Member for Banff and Buchan (David Duguid) for stepping in at short notice to lead the debate. He is, of course, a huge champion for the fishing industry and speaks with such great knowledge given the ports in his constituency, including Peterhead and Fraserburgh, and the rich fishing grounds that he so often talks about in this place. We also send our best wishes to the right hon. Member for Orkney and Shetland (Mr Carmichael), who was going to lead the debate but could not be with us.

A lot of important points have been raised. I will try to deal with as many of them as I can in the time available. Those that I do not cover I will pass to the Minister for Food, Farming and Fisheries, my right hon. Friend for Sherwood (Mark Spencer), and I promise that he will reply to Members on any outstanding issues that must be dealt with.

Many Members have mentioned what a dangerous job fishing is in the UK. The collision last October between the Guiding Light and the Guiding Star, off the constituency of my hon. Friend the Member for Banff and Buchan, was a reminder to us all of the dangers that our fishers face day in, day out. Fortunately, the crews of both vessels were rescued safely and no lives were lost, but we know that the outcomes of such instances are often sadly much more tragic, and I want to remember those who have lost their lives, not least— I am sure she will not mind me mentioning it—the husband of our hon. Friend the Member for South East Cornwall (Mrs Murray).

I will put out a few key points before I turn to the points that have been raised. First, I am really proud, as I believe we all are, of the contribution that fishing makes to the lifeblood of this nation and to our coastal and rural communities. We have only 22 miles of coast in Somerset, but we still love it and are very proud of it. Every time a fisherman goes to sea, they are helping to support their local communities and economies and to provide healthy, low-carbon, nutritious food.

Secondly, the fishing industry relies on a healthy ocean, and no one knows that more than the fisheries industry itself. I am so aware of it, as the Minister responsible for environmental quality. We must have a joint approach of achieving both economic sustainability and environmental sustainability; those two things go hand in hand for our seas.

[Alex Cunningham]

The Minister talked about water quality. She heard my speech about the issue affecting the north-east coast. Does she agree that we have to step up the testing not just on Teesside and off the North Yorkshire coast but across the country, if we are to ensure that our sea is healthy and sustaining sea life?

[Rebecca Pow]

I was going to come to the hon. Gentleman’s point later, but it is this Government who have increased the testing and brought in all the monitoring. We have a real focus on the bathing water areas along our coasts. That has been made a top priority through our storm overflows discharge reduction plan and our plan for water.

Let me touch quickly on the issues that the hon. Gentleman raised about the area around Whitby and Scarborough. He will know that our chief scientific adviser invited a group of independent scientists to join a crustacean mortality panel to review all the evidence, and that panel was unable to identify a clear, convincing single cause for the mortality. We continue to monitor it—he is right: that is critical—and to look at any reports of dead sea life on the north-east coast. Everything we do must be based on scientific evidence, and monitoring is key to that.

The health of our fish stocks in our waters is improving. For 2023, 40% of total allowable catches were set consistent with International Council for the Exploration of the Sea advice, compared with 34% in 2022. That is the biggest improvement we have had since the metric was introduced in 2020. We look forward to ICES publishing its scientific assessments of many of our key stocks tomorrow.

We know that much more needs to be done to ensure that more of our stocks are fished at levels in line with the maximum sustainable yield and that we protect important species and habitats, ultimately reaching our goal of good environmental status. It was great news that the Shark Fins Bill received Royal Assent today, which is just one indication of the care we take with the species around our coasts—and even the other ones being fished off our waters—and of the steps we have taken.

Thirdly, I recognise that one of the greatest concerns of the sector is spatial pressure or spatial squeeze, to which many Members have referred, in particular my hon. Friends the Members for Banff and Buchan and for South East Cornwall. These pressures are significant. I was made well aware of that when I had offshore wind in my portfolio as the marine Minister. In Grimsby I met lobster farmers in the Holderness Fishing Industry Group who were concerned that growing offshore wind development, which is important for the nation, would reduce the industry. But through liaison and close working, they have worked out a good model so that they can continue to catch lobsters in a healthy, sustainable way and we can have offshore wind. That is a very good example.

In England, the cross-Government marine spatial prioritisation programme is helping to support a more strategic approach to managing all the pressures. The matter is devolved, and other nations will have their spatial issues. We are dealing with this in England, but it is important that everyone talks together and deals with it. As the hon. Member for Strangford (Jim Shannon) said, everything going on around our coasts is important, and we must try to make these things work together. It is only with the input and involvement of the fishing industry that we can understand its views, with everybody having a piece of the sea—if we look at a map, we see that everybody does want a piece of it. It is a complicated picture, but we must work together to steer through it.

Fourthly, this Government have grabbed the opportunities offered by EU exit to start reforming our fisheries management arrangements here in the UK. We are moving away from the one-size-fits-all straitjacket of the common fisheries policy, which was so disliked by fishermen, to a fisheries management system that will better reflect the needs of our diverse industry here in the UK, support our coastal communities and better protect our marine environment. We have to take every opportunity.

The SNP and the Liberal Democrats wanted to stay in the common fisheries policy, but it is this Government who took the step to move out of it, and we have to take the opportunities of doing so. That includes the joint fisheries statement, which will provide a framework for sustainable fisheries management for years to come. It also includes our fisheries management plans, which are being developed with the fishing industry, the first six of which are due to be consulted on shortly. The idea is that they will become the gold standard for fisheries and used as a template. We have also consulted on how to share out from 2023 and beyond the additional fisheries quota gained from our exit from the EU and put in place reforms to strengthen the economic link conditions.

There has been a lot of talk today about trade and about the trade and co-operation agreement. The TCA set out a new quota-sharing arrangement for UK and EU fish stocks, with a significant uplift for UK fishers— 25% of the average annual EU catch from UK waters is being phased in over five years from 2021, with further increases each year until 2026. There has been a lot of discussion about what will happen in 2026. In 2026, access to waters will become negotiable as part of the UK-EU annual consultations, and this could be used to pursue several possible objectives, such as increased quota shares in the stocks we fish and sustainability improvements. We have already begun talking with stakeholders to seek their views, and this will be increasingly important. I hear all the calls, which I will pass on to the Fisheries Minister, about making the most of the Brexit opportunities. Clearly, fishers want to see that, and we must ensure that it comes about.

Another key issue raised by many Members across the House was labour. I am pleased that the Home Secretary has offered seafood businesses a package of support to help them use the skilled worker route. In May, the Home Office announced that various fishing jobs, including trawler skippers and experienced deckhands on larger fishing vessels, would be added to the shortage occupation list this summer, and they will qualify for a lower salary threshold and lower visa application fees.

I hear the point about the English language made by my hon. Friend the Member for Banff and Buchan. I will raise that and ensure that the Fisheries Minister is made aware of it, but the Home Office is the lead Department on these things, as it would be for the issue raised by the hon. Member for Aberdeen North (Kirsty Blackman) about how many people have applied for that visa. I urge her to contact the Home Office about that.

Mr Deputy Speaker has asked me to wind up, but I must mention seafood promotion. We have our £100 million seafood fund, which is being shared between large companies and small and medium-sized enterprises. Officials are working closely with the industry on small haddock. I loved the idea from my hon. Friend the Member for Waveney (Peter Aldous) about regional fish food markets, even though it caused a bit of a storm between him and my hon. Friend the Member for Totnes (Anthony Mangnall). We all want to eat more locally caught food.

If you will allow me, Mr Deputy Speaker, I must touch on the issue of medical certificates raised by my hon. Friends the Members for South East Cornwall, for Poole (Sir Robert Syms), for Totnes and for Waveney. I fully support the Maritime and Coastguard Agency’s focus on improved safety, which I understand has unearthed significant non-compliance, but I recognise that those measures have caused concern in the fishing industry. The Fisheries Minister has been meeting with Baroness Vere. He will continue to have those meetings, and all the points raised in this debate will be passed to him, because we have to make this work for everyone. My hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) cannot be here, but I am delighted to report that her husband, who is a fisher in the under 10 metre group, has been through the process and has just got his certificate. I am sure that she will be pleased to share their experiences, but she does raise the challenges for that sector.

I will get the Fisheries Minister to write to my hon. Friend the Member for Totnes about water quality and oysters. We have had a meeting about water quality. With my water quality hat on, I will just say that there should be opportunities to sort out any issues for shellfish fishermen by working on the wider catchment basis that is in our plan for water, with catchment plans. That is the kind of thing we could be working on with our farmers and those all the way up the catchment, to sort out the problems that end up on the coast. If necessary, I am happy to look into that issue at another time.

Mr Deputy Speaker, you have been incredibly patient, but we have had so many questions; I have not been able to get through them all, but as I said at the beginning of my speech, it has been a really vibrant debate. The fishing industry has shown resilience, adapting to a new, changing world post Brexit. Obviously, there is still work to do. Our fisheries management plans will be a big step towards our new future. It is all about balance, working together and feeding in to make sure that we get the right outcomes economically, for the environment and for our communities. I thank everyone for taking part, and I will follow up on any outstanding issues with the Fisheries Minister.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call David Duguid, who has two minutes.

Water Industry: Financial Resilience

Rebecca Pow Excerpts

Wednesday 28th June 2023 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the financial resilience of the water industry.

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

Water is what makes life possible on our planet, and it is essential for our health and wellbeing, as well as for our economy, including the production of food and clean energy. The Government are taking significant steps to ensure that the water industry is delivering the outcomes that bill payers expect and deserve. Water companies have invested £190 billion since privatisation in 1989. In April, the Government published the plan for water, bringing together more investment, stronger regulation and tougher enforcement capacity for regulators in relation to those who pollute.

Ofwat and the Government take the financial resilience of the water sector very seriously. Ofwat is the independent economic regulator for the water sector and has responsibility for its financial resilience. The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and waste water companies. Ofwat reports annually on the sector’s financial resilience, and Ofwat’s latest annual monitoring financial resilience report shows that the water sector is financially resilient.

Market confidence in the sector is demonstrated by new acquisitions, such as Pennon’s purchase of Bristol Water, and by shareholders being willing to inject new capital. Ofwat has taken steps in recent years to strengthen the sector’s position. That includes action to update the ringfencing provisions in water company licences to better safeguard the interests of customers, and barring water companies from making payouts to shareholders and removing money or assets from the business if they lose their investment grade credit rating. Ofwat has outlined that water companies must be transparent about how executive pay and dividends align to the delivery of services to customers, including environmental performance. Since privatisation, total capital investment has outstripped dividends by 250%.

On 20 March 2023, Ofwat announced new powers that will enable it to take enforcement action against water companies that do not link dividend payments to performance for both customers and the environment. In December 2022, Ofwat strengthened its powers on executive pay awards by setting out that shareholders, and not customers, will fund pay awards where companies do not demonstrate that their decisions or pay awards reflect overall performance. We support Ofwat’s work, and we urge all water companies to take this opportunity to review their policies.

The scale of Government commitment to the water industry is highlighted by the integrated plan for water, and by our commitment to the financial resilience of the sector in delivering for customers and the environment.

[Jim McMahon]

Thank you, Mr Speaker, for granting the urgent question, but it is a concern that the Secretary of State did not proactively make a statement to the House on an issue of such importance. Indeed, where is the Secretary of State? One of the largest water companies in Britain is potentially going to go to the wall, and the Secretary of State is missing in action.

It was clear to anyone looking on that a culture that allowed vital investment in ending the sewage scandal and tackling water leaks to be sacrificed in favour of a goldrush for shareholders was never sustainable. Just last year, as raw human sewage was being pumped out across the country, £1.4 billion was paid out to shareholders. Now, all that was warned about is coming to pass: leaks are leading to water shortages; sewage dumping pollutes our rivers, lakes and seas; and the only thing on the up is debt, at £60 billion. The Conservative party’s cycle of privatising profit, usually for multibillion-pound foreign sovereign wealth funds, and nationalising risk is not sustainable, and neither is it a fair deal for working people.

The news we are seeing is the result of the Conservative party’s failed “profit above public interest” experiment, in which it handed over the water industry at a knock-down price to private enterprise, together with the entire infrastructure serving the nation. That was almost unique to water. For instance, when rail was privatised, the tracks were not sold off. With water, however, the lot was handed over, with few safeguards for our national interest, our national security or bill payers.

When was the Minister’s Department first made aware of the financial situation at Thames Water? Has her Department had any reason to believe that those responsible at Thames Water would not be able to meet their licence conditions or legal obligations? If this means a taxpayer-funded bail-out, how much will that cost and how will it be paid for? What assessment has she made of the liability of UK pension funds that are invested in Thames Water, and in other water companies considered to be at risk? Given where we are, will she confirm her confidence in the financial regulator? Finally, given what we see with Thames Water today, does she have concerns about any other water companies, or does she consider this to be an isolated case?

[Rebecca Pow]

In the Department for Environment, Food and Rural Affairs, we have our individual portfolios, and I am the water Minister. The Secretary of State has full confidence in her Ministers when sending them to the Dispatch Box.

The shadow Minister raised the issue of debt. For information, debt to equity fell last year by 4% in the water industry, actually making it more resilient. Since privatisation, capital investment in the water industry has been 84% higher than it was pre-privatisation—we need to get that out there and on the table.

In terms of Thames Water, it is not for me to comment on the individual financial position of a water company. We have an independent regulator that is doing that; indeed, that is what the regulator, Ofwat, is for. Water companies are commercial entities, and it is for the company and its investors to resolve any issues. The Government, of course, are confident that Ofwat, as the economic regulator of the water industry, is working closely with any company that is facing financial stress.

[Mr Speaker]

I call the Chair of the Select Committee.

--- Later in debate ---

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

Sewage treatment plants are all too often overwhelmed at times of heavy rain. As well as installing stormwater tanks, such as the new 4 million litre stormwater tank in Scarborough, does the Minister agree that we should do more to encourage homeowners to harvest grey water, which can buffer the effects of heavy rain, and use that for such things as flushing the toilet?

[Rebecca Pow]

I thank my right hon. Friend for broadening the scope of the debate. We are in discussions with the Department for Levelling Up, Housing and Communities—many of these issues involve working with other Departments—on grey water harvesting and better using the rain that does fall. A farmer in Devon whom I visited was collecting all the water from his farm buildings roofs to supply his animals.

[Sir Stephen Timms (East Ham) (Lab)]

In assessing, as the Minister has explained, the resilience of the water industry, what assessment is she making of the impact on UK pension funds if a major company such as Thames Water fails, as is being widely suggested in the press?

[Rebecca Pow]

There is a structure and a process for working through this matter. It is up to the individual water companies and the regulator working with them to ensure that they are resilient. That is why Ofwat reports annually on how resilient each water company is. If that flags any issues, Ofwat works closely with them, because we need our water companies to be fully functioning. We need to attract investment—a huge sum of money has been invested since privatisation, as I mentioned earlier—in infrastructure to give our customers the kind of service they deserve. We should also be mindful that it is not all piled on to customers; we have to share the load.

[Robbie Moore (Keighley) (Con)]

It is worth making the House realise that it was the Opposition who voted against the Environment Act 2021, which gave Ofwat more powers. Can my hon. Friend assure me that the water regulator Ofwat will be able to clamp down on excessive cash payouts and ensure that water companies put their customers first?

[Rebecca Pow]

I thank my hon. Friend for pointing that out. He is absolutely right: whatever the Opposition say today, one of the measures they did not vote for in the Environment Act 2021 was to enable Ofwat to hold water companies to account where they do not demonstrate a link between dividends and performance. They must have sound performance and be performing for their customers, otherwise they cannot pay out their dividends.

[Ms Karen Buck (Westminster North) (Lab)]

The staggering complacency we are hearing from the Minister will come as no comfort to my constituents who were flooded out three years ago in the west London floods, which were the second 100-year event in less than a decade. If Ofwat has been doing such a good job in holding the water companies to account, as she is now apparently telling us, why are we in this situation? What exactly has Ofwat been doing?

[Rebecca Pow]

It has to be remembered that privatisation occurred in 1989. We have had a succession of different Governments during that time, and it has been this Government who have accelerated clamping down on water companies and opening up transparency. The hon. Lady asks what Ofwat has done, and I will name just a few things. Since 2020, Ofwat has updated the licences so that if a water company loses its investment credit rating, it is barred from making payouts to shareholders. In July 2022, it set out additional proposals to increase financial resilience, including companies having a stronger credit rating. In March, it announced that it would take enforcement actions against water companies that do not link dividend payments to performance. We have done more than any Government before to ensure that we have a fully functioning, strong regulator.

[Philip Dunne (Ludlow) (Con)]

On financial resilience, has the Minister taken the opportunity to consider the hotchpotch of policies coming from Opposition Front Benchers on the subject? Under their prescription, they would seek to take all the profit of water companies to invest in capital expenditure. That would undermine the financial resilience of those companies that rely on private capital for investment in tackling this problem. In the one part of the country where Labour does have responsibility—Wales—has she noticed that the sewerage overflows are almost double the rate per overflow pipe as in England?

[Rebecca Pow]

I thank my right hon. Friend for pointing that out; I cannot support more strongly what he said. We have a private system, and Ofwat says that it is financially resilient. We need investment in these companies to make them function properly. Obviously, we need to hold the companies to account, but we need to see enormous investment. Everything in the Government’s plan for water, including the storm overflow discharge reduction plan, is fully costed. We are not pulling the wool over people's eyes; we are telling them clearly what this will mean and how it will deliver the water services that we need.

[John Cryer (Leyton and Wanstead) (Lab)]

Thames Water, which is on the verge of going under, provides a quarter of the population with their water supply. When was the Minister told about its financial plight? What is the plan if the worst comes to the worst and it does go under?

[Rebecca Pow]

The hon. Member is right that Thames Water supplies an enormous part of our population. Ofwat has been working closely with Thames Water, as it does all water companies, and the Government work with Ofwat, giving it our strategic policy statement on what its priorities will be. Overall, the water companies are considered resilient, and much work is going on behind the scenes with Thames Water to ensure that customers will not be affected. If necessary, there is a process in place to move us to the next stage.

[Sir Robert Buckland (South Swindon) (Con)]

Swindon residents will be concerned about the future of Thames Water, so I ask my hon. Friend please to keep me and colleagues updated on any issues relating to that. Underlying this issue, Labour’s model will clearly never work—we must understand that only the private sector will be able to invest. [Interruption.] Labour Members bleat now, but they did nothing about it when they were in government. Is the point not that where we have in effect a private monopoly, the regulator must be as effective as possible? Will my hon. Friend do everything possible to ensure that Ofwat is working in the full interests of customers? Aspects of its operation do not seem to pass that test.

[Rebecca Pow]

I thank my right hon. and learned Friend. Thames Water is a big water company that delivers on a wide scale. Ofwat is working very closely with the company on its plans, which will be looked over and submitted, and accounts will be submitted in due course, so that we have a resilient pathway. Customers, including his constituents, should rest assured that both their water and wastewater supplies will be protected.

[Clive Efford (Eltham) (Lab)]

This privatised industry knows that, at the end of the day, the banker of last resort is the British taxpayer. That is exactly where we are with Thames Water, which has been taking profits for the last 35 years and not investing for the future. Regardless of what went on before, we must have investment in what is in front of the industry, but Thames Water has failed to plan ahead. It has taken money but not done the job expected of it while being in charge of such an essential public service. What will the Government do to protect consumers and ensure that we plan ahead for the industry?

[Rebecca Pow]

Ofwat is the independent regulator and, as the hon. Member will know, the Government direct it through the strategic policy statement. It is Ofwat’s job to ensure that in the price review, when the water companies submit their plans—they are going over the draft plans now—they demonstrate that they will deliver on the Government’s targets on storm overflows, leakage and demand reduction. It is for Ofwat to ensure that companies will be resilient in delivering that infrastructure. There is a firm structure in place. Ofwat also constantly monitors companies’ gearing—debt-to-equity—levels, and the Government are confident that the regulator is taking reasonable measures to challenge companies to reduce those gearing levels where appropriate.

[Richard Fuller (North East Bedfordshire) (Con)]

About a quarter of the country’s economic output is in sectors under regulators, including the water industry. With Ofwat and in other sectors with Ofgem and the Financial Conduct Authority, we have seen regulators not performing to the standards that the public, or indeed industry, would expect. If we are honest, we in this House and in Parliament do not have the toolkit to assess regulators’ performance on a systemic basis year in, year out. Will my hon. Friend work with ministerial colleagues to see whether we can improve the regular oversight of regulators such as Ofwat so that we can take a more rounded view on such issues, rather than have them come through urgent questions as brought by the Opposition?

[Rebecca Pow]

I thank my hon. Friend for that. It is essential that we have fully functioning regulators. Since the Government came to power, Ofwat has done an enormous amount to streamline what it does, improve transparency, change licences and make changes so that dividends are not paid if any environmental damage is being caused. The Government have directed that through the strategic policy statement. Indeed, our targets will ensure that the regulator enables the water companies to put the right measures in place. He is right, however, that one should never be complacent, and if things need to be improved through the regulators, they should happen. But I assure him that a big effort is being made.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Many of my constituents are hugely worried about reports of Thames Water being on the brink and what that could mean for their bills. Thames Water has been managed appallingly: leaks have not been dealt with, sewage has been continually dumped and the former chief executive officer Sarah Bentley needed to be asked to forgo her bonus. All the while, the Government have been missing in action. Why are the Government yet again running to catch up—nothing in the Minister’s statement gives confidence that they have a grip—with our constituents paying the price?

[Rebecca Pow]

Where water companies underperform and do not meet their targets, a process is in place whereby basically they have to credit the money back to their customers. Last year, £143 million was credited back in that respect. So the regulator does have the tools to do that. It has tightened up so many of its measures, all of which will affect all the water companies.

[Robert Courts (Witney) (Con)]

The Minister will not be able to comment on Thames Water’s finances in detail, but can she assure my constituents, who will be really worried, that, whatever happens, their day-to-day services will be protected and the much-needed upgrades will still be delivered?

[Rebecca Pow]

I thank my hon. Friend for that. He is right that customers come first, and Thames Water customers will be assured their water supplies and wastewater services. I am happy to meet him to discuss that.

[Munira Wilson (Twickenham) (LD)]

Residents in Twickenham, Teddington and the Hamptons will be extremely worried to hear that Thames Water is on the brink of collapse, but they are also fed up to the back teeth with this company. Not only does it pump sewage into our precious River Thames, but recently we have seen sewage flooding our streets at times of flooding from rainfall, and there are now plans to pump treated sewage into the Thames at times of drought. That is indicative of the company’s underinvestment in fixing leaks and being stripped to the bare bones while lining executives’ pockets. All the while, the Government have been missing in action and the regulator has failed. Will the Minister back the Liberal Democrats’ proposals to reform water companies into public good companies, transforming their boards and priorities in the interests of the environment and consumers?

[Rebecca Pow]

I will highlight the Thames super-sewer—it will be ready to open in the not-too-distant future—which is a tremendous project for the people of London, including many of her constituents. We have a privatised system, whose financial resilience, as I have reported, has increased rather than decreased in the last year. These companies attract money from investors so that we can get what we need. The Government have costed plans. The Liberal Democrats have no costed plans for what they suggest they might do with the water companies, nor plans for where the money will come from.

[Duncan Baker (North Norfolk) (Con)]

It is worth pointing out to Opposition parties that 93% of all UK coastal bathing waters meet good or excellent conditions. In North Norfolk we have lost three blue flag beaches, which went from excellent to good. But guess what? There is not a single reason why they lost that flag. Under the Environment Agency’s marking, it looks like it is down to not combined sewage overflows but entirely natural phenomena. Could the Minister help me get my blue flags back and hold the Environment Agency to task, to ensure that it has a proper testing regime that transparently shows that we have excellent bathing water quality all over North Norfolk?

[Rebecca Pow]

I thank my hon. Friend for raising the issue of bathing water quality. Since privatisation we have virtually the best quality water coming out of our taps of almost anywhere in the world. We also have phenomenal results for our bathing water areas—93% are classed as good or excellent. He has concerns about his area, but I hope those beaches will soon be back up to blue flag status. The Environment Agency works closely on individual cases where concerns have been highlighted. I am happy to put him in touch with the Environment Agency or work with him to find out what those individual cases were, so that we can get those beaches back up to the fantastic standard that they deserve.

[Andy Slaughter (Hammersmith) (Lab)]

Today, not for the first time, most of my constituents have little or no water supply. Two years ago, not for the first time, hundreds of my constituents had their homes flooded with raw sewage. Year after year, Thames Water has failed its customers while obscenely rewarding its management and shareholders. No one will miss the asset strippers at Thames Water if it goes under. All we want is working infrastructure and good customer service at a reasonable cost. Is that too much to ask?

[Rebecca Pow]

That is what we want for all our customers. That is why we have launched our plan for water to pull everything together to ensure that we deal with any pollution incidents, water supply issues and the future of the water industry. It is why we have set our targets and produced our storm sewage overflow plan, and why the water companies will have to spend £56 billion on capital investment by 2050 to address that. Every water company, including Thames Water, has to make an action plan for each of its storm sewage overflows. Thames Water will do that.

[Dame Angela Eagle (Wallasey) (Lab)]

When they were privatised, water companies had all the debt written off, so they started with zero. Since then, they have borrowed £53 billion, much of which has been used to help pay £72 billion in dividends. The investment has been made by borrowing and putting it on to customers’ bills. Now, the ratings agency S&P has negative outlooks for two thirds of the UK water companies it rates, because they are over-leveraged and took out too much debt in an era of low interest, which they now have to pay back. This is not a triumph but a huge problem for the resilience of our water industry. What will the Minister do when water companies start falling over?

[Rebecca Pow]

For information, Thames Water itself has not paid any dividends for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I want to bring the Minister back to the figures we have just heard. Water companies had no debt when they were privatised. Since then, they have borrowed £53 billion, and much of that has been used to help pay £72 billion in dividends. Meanwhile, we have an appalling sewage scandal, particularly in the south-east of England. The failing company Southern Water, which my constituents have no choice but to rely on, is considering raising bills by £279 per year by 2030, largely to pay for the investment that it should have been making in previous years. Does that not show that the privatisation of water was a serious mistake that needs to be permanently rectified?

[Rebecca Pow]

Privatisation has enabled clean and plentiful water to come out of our taps. It has unlocked £190 billion of funding to invest in the industry. That is the equivalent of £5 billion annually, and is double what we had pre-privatisation. I am not saying that there is not still a lot of scope for improvement. I have stood at this Dispatch Box many times, as has the Secretary of State, to say that some actions of water companies are completely unacceptable. That is why we have introduced the storm overflow plan and our plan for water.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

As two Members have said, funding and loans to the water companies are a huge issue, as that is where they have paid their dividends from. On shareholders, we have foreign investors taking huge amounts of money away from this country, and we need better fund managers who are able to assess where they put their money. They should be held accountable, too.

Ofwat has not been doing what it is supposed to do. I believe that the chief executive of Ofwat applied for a job at Thames Water. That shows what the companies are doing and how Ofwat works with them—rather than scrutinising them, people are looking for the next job. We have to stop that and stop my constituents paying more for water. They need decent water in their homes and in the environment around them. That is what we want the Government to ensure. This Tory policy has failed for years.

[Rebecca Pow]

I am not sure what the question was. We want the same things: value for customers, and clean and plentiful water. We want to hold the water companies to account. We want them to invest the money needed to deliver the right services. That is why we have a plan for water, our targets and the measures in the Environment Act. It is why the regulator Ofwat has taken all the actions I mentioned to increase the transparency of water companies and to ensure that money is not being paid out if there is any environmental impact or performance negativity.

[Mr Clive Betts (Sheffield South East) (Lab)]

In the last year, a number of my constituents on the Westfield estate have had their homes and gardens flooded with raw sewage. Yorkshire Water accepts that it is its sewage, but does not accept responsibility to help with the clean-up. Will the Minister look at the legal position to ensure that water companies are held accountable? In the meantime, we should put pressure on Yorkshire Water and others to pay for the clean-up that my constituents are having to fund themselves.

[Rebecca Pow]

The hon. Gentleman will know that we have put huge pressure on the water companies, which now have to invest £56 billion in infrastructure to deal with sewage issues. If he wants to meet me to talk about that issue, I will be happy to.

[Dan Jarvis (Barnsley Central) (Lab)]

Back in January I asked the water Minister whether she thought that the current system of regulation was fit for purpose, and she said yes. I ask her again: does she still think that it is?

[Rebecca Pow]

Yes.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Water companies were sold with no debt when they were privatised in 1989. In fact, they were given a £1.5 billion green dowry by the Government. Since then, they have taken on borrowing of £60.6 billion, diverting income from customer bills to paying dividends and interest payments. As a result, water bills have increased by upwards of 40% in real terms. Does the Minister honestly think that consumers hail privatisation as a success?

[Rebecca Pow]

Ultimately, the customers pay for investment in the industry, but over a very long period, as the hon. Lady will know. If a company did not pay out dividends it would struggle to get access to finance to fund future investment. That would limit the level of investment and have an impact on future customers. Companies have to pay up front for a lot of that investment, because they need to secure a large amount of funding to pay for it. To avoid customer bills increasing drastically to pay for that, companies have to secure the money by raising debt or equity. She knows how it works. The regulator has to ensure that that system is fully functioning, the water companies are resilient and we have all the resilient water supply that we require.

[Kerry McCarthy (Bristol East) (Lab)]

It has been reported that the companies are drawing up their business plans for 2025 to 2030 and that, on average, they are looking at a 25% increase in bills. Given what we have heard today, would billpayers in my constituency not think that rather than paying extra to water companies, they may as well just flush their money down the drain for all the good it will do to improve water quality, services and investment in infrastructure?

[Rebecca Pow]

All those plans are being assessed right now. The draft plans go to Ofwat, where they are analysed with a fine-toothed comb. All the things I have mentioned today will be scrutinised, so that we can deliver the infrastructure that is needed and have the clean and plentiful water supplies we require as well as a clean and healthy environment, with no undue impact on customer bills. All those things have to be taken into account to deliver the water supplies that the people we meet and the people we serve deserve.

[Mick Whitley (Birkenhead) (Lab)]

The British public should not be asked to cover the cost of failures by the water monopolies and their shareholders. They have borrowed extensively to pay dividends while failing to make necessary investments in infrastructure and resilience. Does the Minister agree that if the Government are compelled to take Thames Water into public ownership, it should stay in public hands?

[Rebecca Pow]

I am not aware of the situation the hon. Gentleman is referring to. Ofwat is working very closely with Thames Water to ensure that the business is viable, that customers are not impacted, and that water supply and waste water services are delivered. As I mentioned, Ofwat has strengthened many measures so that we have a much more resilient industry in the future. Indeed, those changes and the fall in the debt to equity ratio demonstrate that we do have a more resilient industry.

[Richard Foord (Tiverton and Honiton) (LD)]

We have seen bonuses and dividends put ahead of investment in infrastructure or maintaining sufficient reserves. Our area of Devon and Somerset is covered by South West Water; the company has paid out £112 million in dividends this year, despite having just £144 million in reserves, which is £2.5 billion less than it had two years ago. This week, a water firm chief executive officer has resigned, but no Conservative Minister has ever taken responsibility. When will a Conservative Minister finally take responsibility and get a grip, or step aside?

[Rebecca Pow]

As the hon. Gentleman knows, Ofwat has announced new measures to enable it to take action against water companies that do not link dividend payments to performance. That is just not happening. I think he needs to look again at some of the stats he has just quoted, because I think they might relate to the wider Pennon Group. I have just visited South West Water to have a really forensic look at its systems and how it delivers water. That is what we do with our water companies. It is Ofwat’s job to hold water companies to account, and it has just got measures through the Treasury so that it has another £11.3 million to tackle enforcement.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her answers. We are ever mindful that house building is important, and development opportunities are critical to the future as well, so with developers being charged more and more to connect to the network but facing delays in those connections being installed, what plans does the Minister have to make the connection system for new developments more affordable?

[Rebecca Pow]

The hon. Gentleman raises an important issue. We always have be mindful of costs, not just to customers through their bills but to developers building houses. We are working closely with the Department for Levelling Up, Housing and Communities on a range of measures and on its planning guidance, so that we can tackle a range of issues connected to water, working with developers on things like rainwater harvesting and sustainable urban drainage systems, which will really help the whole of our water infrastructure.

[John Cryer]

On a point of order, Mr Speaker. I think the Minister may have inadvertently misled the House. She said clearly that Thames Water has not been paying out dividends. The reality is that Thames Water has not been paying out dividends in the usual way, but it did pay dividends last year to the parent company, so it has been paying out dividends.

[Mr Speaker]

Does the Minister wish to respond?

[Rebecca Pow]

Yes, Mr Speaker. I will check the wording, because I would hate to mislead the House. If I have inadvertently said something incorrect, I will happily put it straight on the record.

[Mr Speaker]

Right.

Oral Answers to Questions

Rebecca Pow Excerpts

Thursday 25th May 2023 Commons Chamber

[Elliot Colburn (Carshalton and Wallington) (Con)]

6. What steps she is taking to reduce the environmental impact of waste incineration.

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

We want to see less waste being sent to incinerators, which is why we set a statutory target to halve the 2019 level of residual waste by 2042. The Environment Agency inspects and audits energy from waste plants to ensure that they are complying with the requirements of their environmental permits, which include strict emissions limits and associated strict requirements to monitor those limits.

[Elliot Colburn]

Only about 20% of the waste that goes into the Beddington incinerator in my constituency is plastic, but it makes up three quarters of the harmful particulates that come out of the chimney stacks. Technology is available to extract plastic before it is burnt, and is being trialled around the country. Does the Minister agree that all waste incineration plants should be installing this technology as soon as possible?

[Rebecca Pow]

We have legislated to prevent incinerators from accepting separately collected paper, metal, glass and plastic unless they have gone through a recycling facility first. We are trying to reduce all our waste but particularly plastic, and our plastic packaging reforms, which are under way, will mean that, overall, less waste will be incinerated.

[Kerry McCarthy (Bristol East) (Lab)]

As the Minister has said, we need to reduce the amount of waste that is being incinerated. One way of doing that would be to develop a truly circular economy, which could also result in the creation of many more green jobs. This is a DEFRA responsibility, but we do not hear much from DEFRA about its plans. Will the Minister tell us what action she is taking?

[Rebecca Pow]

The hon. Lady is right, and we are committed to measures to introduce a much more circular economy. We must cut the amount of resources that we use, and recycle more, reuse more and refill more. Work is under way, and data is being gathered on our extended producer responsibility scheme, which we will introduce in 2024, and the deposit return scheme will be introduced in 2025. Those, along with consistent collections, will reduce the amount of waste that we, as a society, throw away.

[Mr Speaker]

I call the shadow Minister.

[Ruth Jones (Newport West) (Lab)]

Waste incinerators are three times more likely to be built in the UK’s most deprived neighbourhoods than in the least deprived, and people in those communities are twice as likely to have a lung condition and seven times more likely to die from one. Is the Minister confident that she has enough monitoring in place to provide accurate, timely and consistent data to ensure that these incinerators do not breach our emissions targets and thus put local people at risk of further harm?

[Rebecca Pow]

It is crucial for waste incineration plants to have the correct permits and to be correctly monitored, which is why the Environment Agency has imposed strict emissions limits and applies the permit scheme to a number of pollutants to ensure that people who live near incinerators are completely safe. All operators of incinerator plants must carry out their own monitoring and report back constantly on the safety of their plants, because human health is, of course, critical.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

8. What progress her Department has made on its target to halt species decline by 2030.

--- Later in debate ---

[Luke Hall (Thornbury and Yate) (Con)]

T6.   Seven parish councils along the River Severn from Aust to Sharpness have joined forces under the chairmanship of local resident Mr Barry Turner to ask the Environment Agency for improvements along the riverbank, in preparation for rising tide heights and more extreme weather events. Will the Minister meet me, Mr Turner and the local councillor, Matthew Riddle, to discuss their concerns and help find a solution?

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

I believe the Environment Agency has already met Mr Turner and his group, and I am happy to meet my hon. Friend too. Obviously, I must stress that managing coastal change in those legacy landfill sites, some of which have historical issues, is very much the responsibility of the local coastal protection authorities. The Government are taking action, looking at what priority action we could take on these historical landfill sites to find a way forward in these many and varied areas.

[Judith Cummins (Bradford South) (Lab)]

T3.   Yesterday, we learned that sugar prices have risen by a massive 47% in the past year, and industry experts predict that they will rise again this autumn, because of the high energy costs of extracting and refining sugar. What steps is the Minister taking to support the food and drink sector throughout this period of extreme inflationary pressure, so that these costs are not, yet again, passed on to consumers?

--- Later in debate ---

[Dan Jarvis2002 (Barnsley Central) (Lab)]

T4.   Should not the cost of cleaning up our waterways be met by the profits of water companies, not higher bills paid for by hard-pressed consumers?

[Rebecca Pow]

The hon. Gentleman may not be aware that dividends and profits of water companies cannot come from customers—[Interruption.] If the water companies want to compensate people and they have not done the right thing by the environment, that will not come out of customers’ pockets. This Government have put in a huge plan for £56 billion-worth of investment by the water companies to clean up our waters—this is more than ever before.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

Dog-loving constituents of mine have expressed concerns about a potential ban on e-collars. They say that in Wales, where e-collars are banned, attacks on sheep have increased exponentially, with the result being electric fences that are far more harmful to dogs. Will my right hon. Friend consider some form of licensing or regulation of usage, rather than an outright ban?

--- Later in debate ---

[Aaron Bell (Newcastle-under-Lyme) (Con)]

On Monday, BBC’s “Panorama” programme examined the continuing misery being inflicted on my constituents by Walleys Quarry Landfill, and, as you will know, Mr Speaker, the Staffordshire waste site in the constituency of my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) is also affecting my constituents. We have a situation where not one, but two rogue operators are making the lives of the people of Newcastle-under-Lyme a misery, and the actions of the Environment Agency are too slow and not robust enough, so what will the Minister do to ensure that we get justice and accountability for what we are going through?

[Rebecca Pow]

I know that my hon. Friend is a doughty campaigner on the issue of Walleys Quarry, and that the Secretary of State has visited the area recently. I know, too, that there was a “Panorama” programme about the site. An enforcement notice was issued by the EA on 5 May requiring the operator to take further action around waste acceptance procedures on the site to reduce the risk of sulphate-bearing material entering the landfill. I have spoken many times to the EA and know that it is working very hard to reduce the dangers, potentially, that locals may feel come from this site.

[Peter Dowd (Bootle) (Lab)]

Will the Minister be prepared to meet me and representatives of the Horticulture Trades Association to discuss what further steps the Government could take to support the horticultural sector in developing responsibly resourced, high-quality alternatives to peat that can be produced at volume?

Draft Packaging Waste (Data Reporting) (England) (Amendment) Regulations 2023

Rebecca Pow Excerpts

Tuesday 23rd May 2023 General Committees

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

I beg to move,

That the Committee has considered the draft Packaging Waste (Data Reporting) (England) (Amendment) Regulations 2023.

It is a pleasure, as ever, to see you in the Chair, Sir Gary. The regulations were laid in draft before the House on 20 April. They amend the Packaging Waste (Data Reporting) (England) Regulations 2023. Since those regulations came into force, further engagement with stakeholders has brought to our attention two key issues that the regulations before us today seek to resolve. We have also taken the opportunity to pursue additional amendments that improve the clarity of provisions.

The regulations introduce two key changes, but I assure the Committee from the outset that the changes being introduced are not a change of policy. Instead, they seek to rectify ambiguities and correct omissions. The data reporting requirements require producers of packaging to collect and report data on the amount and type of packaging that they place on the market, and that will be used to calculate the fees that producers will pay to cover the costs of managing the packaging as part of the extended producer responsibility scheme from 2024.

The regulations add to the obligations of importers. Erroneously omitted from the original statutory instruments, importers will need to report packaging that they import and then subsequently dispose of without supplying onwards. It was always our intention to include such packaging, and it is packaging that importers already collect and report under the original and ongoing packaging producer responsibility scheme. The amendment is crucial to ensuring a properly functioning extended producer responsibility scheme, and we estimate that the amount of packaging it relates to is approximately 1 million tonnes, or about 8% of the packaging placed on the market every year in the United Kingdom. If that packaging went unreported, it would seriously hamper the proper functioning of the packaging recovery note system and would also lead to a distortion of the producer fees that will be payable under the EPR.

The SI makes changes that reduce uncertainty around the definition of brand owner. The amendments address two main scenarios. The first is where there is more than one brand printed on the packaging. For example, a limited edition chocolate Easter egg—I know Easter is over—might have a separate brand’s toy inside. The amendments make it clear that it is the brand who first sells the packaged product who is responsible. In that instance, it would be the brand owner of the Easter egg, not the brand owner of the toy.

The second scenario is when multiple items from different brands are grouped together in a single sales unit. An example would be the Sunday Times wine box. The amendments make it clear that the brand who brings the other products together into one product should be responsible for any packaging it adds. So The Sunday Times would be obligated for the cardboard box, and the wine producers would be obligated for the wine bottles inside the box. I am not sure how many Members shop at Harrods, but a second example would be a Harrods hamper. Harrods would be responsible for the basket and straw, while the producers of the champagne and caviar that you had purchased, Sir Gary, would be responsible for the glass bottle and the container.

The regulations also make a number of other changes, which I will discuss briefly. The amendments will provide further clarification on the data reporting requirements for reusable and refillable packaging, and will simplify the reporting process. At the moment, producers would need to report whether their reusable product was refilled at home or in store; a range of models are used for this sort of scheme, as hon. Members may or may not know from partaking in some of them.

Let me give the Committee an example for clarification. When my Ecover washing up bottle is empty, I take it to a store in my nearby town of Wellington, where I refill it from the store’s big canister. The amendments remove the need to describe the type of reusable system being used—that is, that I went to a store to do it—and that will reduce burdens on producers. However, the key data will continue to be reported to inform policy development ahead of introducing new measures to increase the uptake of reuse and refill systems in 2025, which is obviously to be encouraged and will very much be encouraged at a later date.

The key data is the amount of reusable packaging a producer has supplied and whether it is termed “primary packaging”. Primary packaging is the packaging that surrounds a product and forms a sales unit to the customer—for example, a reusable Ecover bottle. Secondary and tertiary packaging is packaging that businesses interact with and that is typically removed before the product is sold to a consumer—for example, cardboard boxes used for display purposes or pallets used in distribution. The changes will also allow producers that have instituted reuse systems of their own to offset the packaging at the end of life, giving them a discount on their EPR disposal fees when they have collected and sent the packaging for recycling once it has become waste. The amendments also include minor corrections to the drafting and fix some incorrect cross-references.

[Nigel Mills (Amber Valley) (Con)]

May I take the Minister back to her Sunday Times wine club example—other wine clubs presumably are available—when she said that the cardboard would be the responsibility of the Sunday Times wine club and the glass bottle would be that of the wine producer? Would I be right that if the wine were imported, as I think is the case for nearly every Sunday Times wine club bottle that my wife has ever had, the Sunday Times wine club would be responsible for the glass as well and not only the box?

[Rebecca Pow]

I will need to think about that for a minute. My hon. Friend is talking about imported products. The glass bottle will come under a different system of recycling anyway; it could go into our other kerbside schemes that are currently being developed—potentially deposit return. [Interruption.] I waited for a bit of inspiration, and apparently the answer is yes, if the wine club imported it.

I am sure there will be some other examples, because in getting the data gathering system up and running, lots of tiny nuances have arisen. That is why producers have come to us to point out the anomalies, which we have to fix; and that is what we are doing today. These amending regulations will apply to England only, but similar regulations are being progressed and amended where needed in Wales, Scotland and Northern Ireland. My officials have worked closely with the relevant departments in the devolved Administrations in the development of this legislation.

In conclusion, the measures in the draft regulations are crucial for enabling the effective implementation of the extended producer responsibility for packaging and realising its associated environmental benefits. I commend them to the House.

--- Later in debate ---

[Rebecca Pow]

I thank the shadow Labour Minister for supporting this SI. I think she can see that it is just about a couple of much-needed tweaks to the system.

The hon. Lady referred to getting accurate data, and I think the regulations demonstrate that we are completely on that. The system will not work properly if there are anomalies that distort it. Some of the measures I have mentioned relate to about 1 million tonnes of plastic—8% of the total—and without this SI that could potentially distort the system. It is on the data being gathered that the fees will be calculated to pay the local authorities to do consistent collections, so it is important to get the data right. She raised an important point, but that is why we have introduced this SI and why we continue to work with business and industry. We have been doing that very closely since this started. They have fed back as we have been going along, and we have listened to that. We have listened to them from the very beginning because we wanted to ensure that, although the costs are being put on to businesses to deal with the packaging that they put into the market and the taxpayer no longer has to deal with it, we still do not want that to be over-burdensome. As a result, we have worked to reduce the costs that they face.

The hon. Lady asked about what we were doing with buinesses. The Department for Environment, Food and Rural Affairs has set up a business-readiness forum and also a local authority forum. She asked about local authorities in particular. That is obviously the other end that is really important to keep businesses, producers and local authorities up to date about the changes. They have been meeting regularly since January, which is when we recommended companies to start gathering the data voluntarily. The official legal date for the data gathering was in March. Those conversations are ongoing—

[Ruth Jones]

I just want to highlight the fact that the packaging industry is still anxious about the data it is collecting. Is it the data that, as the Minister has outlined, the fees will be paid on? It accepts and has no problem with the principle of EPR, but is still anxious about the confusion about data collection. Small businesses in particular are really anxious about this.

[Rebecca Pow]

Of course, the data is being collected only by companies with a certain turnover and a certain tonnage, so many small businesses are not involved in this. We have listened to them, and the placing of that threshold came out of the consultation. If she would like that in writing, we can clarify the tonnage and where the data is cut off. It is those with a turnover of £2 million and handling 50 tonnes of packaging a year. We thought carefully about where to place that threshold.

On top of the forums, we have delivered a series of information webinars. More will take place, with more engagement through a fortnightly newsletter to business and industry and lots of one-to-one engagement. We are still encouraging that because, if there are still areas to iron out, we need to know about it. There were also a series of eight-week visioning events to consider the long-term future of all those collection and packaging reforms. They involved producers, trade associations, local authorities, waste management companies and environmental non-governmental organisations. I hope that answers the question satisfactorily.

I thank the Committee for its input. I can see other Members thinking about examples of what will be captured through this SI, and I would like to stress that the SI will make crucial changes to the Packaging Waste (Data Reporting) (England) Regulations 2023. It will ensure the proper functioning of the packaging recycling note evidence scheme and that fair producer fees are set, which reflect the true amount of packaging that arises as waste in the UK.

The amendment will also firm up the definition of “brand owner”, ensuring that producers have confidence in where their obligations lie. Finally, further amendments made through these regulations will provide clarification on producer reporting as well as correct minor inaccuracies in the drafting. Once again, I thank all of those on the Committee from both the Government and Opposition for supporting this SI.

Question put and agreed to.