Water Industry: Financial Resilience

Debate between Rebecca Pow and Caroline Lucas

Wednesday 28th June 2023 Commons Chamber

[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.

Oil Spill: Poole Harbour

Debate between Rebecca Pow and Caroline Lucas

Monday 27th March 2023 Commons Chamber

[Rebecca Pow]

I would be the first Minister to say that we need assurances on looking after our wonderful environmentally sensitive sites. This oilfield has been working since 1979, and I understand it is the largest onshore oilfield in Europe. The investigation must take place and we must find out what happened—and correct anything that needs correcting—but we should not spread fear about this particular operation or others like it, as they are an important part of our energy make-up.

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

Poole harbour is a haven for wildlife and is home to rare species, so this spill is incredibly saddening. The Minister says she wants to ensure the disaster is not repeated, but she must know that where there is drilling, there is some spilling. There have been a staggering 721 oil spills in the North sea alone over the past three years. Just last month, the Planning Inspectorate overturned West Sussex County Council’s refusal of permission for more testing for shale oil reserves in Balcombe, beneath the High Weald area of outstanding natural beauty. Given the huge risk to the natural world when things go wrong, will she ask the Secretary of State for Levelling Up, Housing and Communities to review this decision?

[Rebecca Pow]

It is all about balance—it is important that we protect our natural environment, particularly in areas as precious as Poole Harbour, because that is as important to our economy as the oil—and ensuring that the investigation is correctly carried out as swiftly as possible. Anything that needs to be put in place to enhance our environmental protections and measures must be put in place—and I would say the same for any other similar project.

Water Company Performance

Debate between Rebecca Pow and Caroline Lucas

Tuesday 21st February 2023 Commons Chamber

[Rebecca Pow]

I thank my hon. Friend for that and I could not agree with her more. She is a strident campaigner for the beautiful environment in which she lives, and our bathing water status should be commended—72% of our bathing waters are classed as excellent and 94% as good. It is an extremely good record and we should be proud of it.

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

Over the course of 2020 and 2021, raw sewage was dumped in Britain’s rivers and seas more than 770,000 times. That is almost 6 million hours of pollution discharge. But, as we have heard, the pay of water company executives increased by a fifth, on average. Will the Minister force water companies to invest those profits into urgently upgrading the outdated sewage infrastructure—not ask them, not require more plans, but force them to do it? Will she look again at bringing the companies into public ownership so that money is properly reinvested, not siphoned off to shareholders? She does not seem to understand why people are so angry when water companies are swimming in cash while the rest of us are swimming in sewage.

[Rebecca Pow]

I have said constantly that it is unacceptable that storm sewerage overflows have been used in contravention of permits. Let us not forget, however, that they were put there for a reason by the Victorians: heavy rainfall and sewage all goes down the same pipe and could back up in our loos, so storm sewerage overflows are there as an emergency precaution. It is clear that they have been relied on too much by water companies, and that is why the Government, having put in the monitors and got more data, can step in. We have launched the storm sewerage overflows reduction plan and the water companies are now committed to so much funding to put all the overflows into the correct operating position, concentrating first on areas near bathing waters and our wonderful protected sites and then all the others. There is now a clear plan of action against which to hold the companies to account.

Retained EU Law (Revocation and Reform) Bill

Debate between Rebecca Pow and Caroline Lucas

2nd reading
Tuesday 25th October 2022 Commons Chamber

[Rebecca Pow]

I am obviously not party to all these things, but I believe the COP26 President is just not attending Cabinet but is keeping his position, and rightly so.

I was touching on our environmental record, and I know that the Minister for Climate certainly understands the need to uphold this record. We are a global leader on this, which is very appropriate with COP27 coming up. We cannot be seen to be backtracking on things on which we are actually considered to be a global leader. That is why we need to show that we can uphold our environmental protections, while also being able to grow the economy, as is necessary in what are very challenging times. In my view, there should not be any kind of conflict between having a fully functioning ecosystem and a growing economy, with secure food supplies and, indeed, increasing food production. It is quite possible to make it all work.

We have set a legally binding target to halt the decline of species abundance—basically nature—by 2030 and to start to bend that curve, but I would be the first person to say, and perhaps the right hon. Member for Leeds Central might agree, that while we have had environmental protections, they have not actually done a great job in protecting our nature. We have had a massive nature crash in this country, and that is what we have to sort out. We need to look at some of our system of protection and make it work better. We do not need to undermine what we are doing; we need it to function better for the UK.

[Caroline Lucas]

rose—

[Rebecca Pow]

I will press on because I think I will be under pressure—I will perhaps give way in a minute.

We have set a whole framework, and we need our protections to help that work to restore our nature. We must get those protections and the regulations enforcing them right. The Environment Act 2021 creates that framework, requiring Ministers to set long-term targets for environmental improvements, to set out policies to meet them, and to report annually on the delivery of those targets that relate to waste, air, nature, water and biodiversity. By the end of this week, on 31 October, the Government should be reporting back on the targets. Those have been widely consulted on, and I urge the new DEFRA team to publish them. They will be an important indication that we mean business on restoring nature, and business on our biodiversity net gain measures, which all developers know are coming down the tracks.

I mention that because it highlights the huge amount of work that DEFRA already has on its plate to tackle these things, and having to do a major review of hundreds of pieces of EU-derived legislation could put it under a great deal more strain. There are something like 572 laws relating to the DEFRA portfolio, whether that is sewage pollution, waste, water, air or pesticides. I know it is a good Department with some great officials, but fifteen months is a pretty short time to wade through that legislation. There is scope in the Bill to extend that sunset clause to 2026 if necessary, and I urge that door to be kept open, and for us to be realistic about this. If the right position has not been found by 2023—some of these things are pretty complicated—and if more engagement would be appropriate, I ask Ministers seriously to consider extending that sunset clause. No one is saying, “Don’t look at the regulations,” but we need that door to be open.

On the habitats directive, I urge Ministers to look at the nature recovery Green Paper that DEFRA undertook while I had the honour of being environment Minister. A whole team was considering proposals to streamline and consolidate site designations, to provide more certainty and predictability for developers—they had input into that—planners, and consultants. A whole range of people were asked to come up with some thoughts on getting a more strategic approach for tackling pressures on our protected sites. We have already done that for the infamous great crested newt, which is often cited as a reason for holding up planning applications. There is now a good plan for working strategically with our newts, with mitigations and compensations and so on, and it is working well. I urge the DEFRA team to look at the proposals in the Green Paper, as they are a basis for reform without weakening environmental protections. May we also have clarity on the Emerald network of areas of special conservation interest?

Finally, businesses need certainty and clarity, which is why we must ensure that they know there is a level playing field that will ensure high environmental standards. Our manifesto committed us to delivering the most ambitious environmental programme of any country on earth. The Minister mentioned that earlier, and it is something we should be proud of not just here but on the global stage. It is what we need to deliver for future generations. Let us give ourselves time for the assessment process. Do not rush the changes. We cannot grow our economy by weakening our environmental protections, but we can make a bespoke system that is better for us all.

Oral Answers to Questions

Debate between Rebecca Pow and Caroline Lucas

Wednesday 15th June 2022 Commons Chamber

[Rebecca Pow]

I thank my hon. Friend for raising that important issue. Nature-based solutions are critical, and about one third of the mitigation that we need to keep up with 2° of warming can be delivered through natural solutions. That is why the Government are focusing so many of their policies on that issue, whether through flood funding, the new environmental land management scheme, our Nature for Climate fund—that is £740 million and focuses specifically on trees—or peatland restoration. All those things will restore habitats, increase biodiversity and, critically, reduce carbon emissions and sequester carbon.

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

We rightly talk about the adaptation finance gap, but as the Minister will know, according to Oxfam the economic costs of loss and damage could be up to £580 billion a year by 2030, yet rich countries are continuing to drag their feet. Will the Government work to ensure that Egypt succeeds where Glasgow failed, so that the £100 billion in climate finance is not just met but exceeded, and so that a new loss and damage finance facility is established at COP27?

[Rebecca Pow]

A major focus of COP26 was attracting climate finance, and £126 billion was attracted for the forest and agriculture sector to work on reducing degradation. We are of course focusing on the just energy transition, which is also important, and that remains a key focus, in particular doubling finance for adaptation to £40 billion by 2025.

Environment Bill

Debate between Rebecca Pow and Caroline Lucas

Wednesday 20th October 2021 Commons Chamber

[Caroline Lucas]

I certainly support the direction of Lords amendment 45. However, I want to ask the Minister why she is omitting lines 7 to 14 of the original amendment introduced by the Duke of Wellington in the other place, which would put a legal duty on water companies to take immediate action to tackle sewage pollution and so forth. Why has she taken some of the teeth out of this amendment?

[Rebecca Pow]

I hear what the hon. Member says, and for once I am really pleased that she almost supports what we are doing. I am outlining what we have put into the Bill since it was last here to demonstrate how we will be reducing the harm from these sewage storm overflows. The cumulative impact of all this will be to actually address the issue that we all so want to address. Crucially, we will have sewerage management plans in which water companies will have to explain and detail how they are going to be delivering a resilient sewerage system. We expect those plans to include considered actions for reducing storm overflows and their harm in line with the ambition set out in the Bill.

Environment Bill

Debate between Rebecca Pow and Caroline Lucas

Consideration of Lords amendments
Wednesday 20th October 2021 Commons Chamber

[Rebecca Pow]

I am pleased that the hon. Member, like me, is deeply passionate about soil. I think I held the first ever debate on soil in Parliament when I was a Back Bencher. It is something that I am personally very keen on. We believe we cannot commit to set the actual target until we have that baseline of robust metrics. We consulted and are working very widely with experts and specialists. Indeed, a range of pilots, tests and trials are running related to soil. Instead, I can provide reassurance that the Government, as announced in the other place on Report, will be bringing forward a soil health action plan for England. It will provide a clear strategic direction to develop a healthy soil indicator, soil structure methodology and a soil health monitoring scheme. All those things are absolutely necessary before we can set the actual target, but there is a huge amount of work going on, on the soil agenda. I am personally pushing that forward, as is the Minister of State, Department for Environment, Food and Rural Affairs, my hon. Friend the Member for Banbury (Victoria Prentis), with whom I am working very closely on this matter.

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

I know the Minister is personally committed to the soil agenda—I remember sitting with her on the Environmental Audit Committee—and I am sure she shares my concern about this being hugely delayed. She talks about the action plan, but the draft outline will not even be consulted on until spring next year. What can we do to try to speed that up? It is a massively serious issue, as she knows, yet the signals from the Government are that they are treating it with complacency.

[Rebecca Pow]

I completely disagree with the hon. Lady, although I am listening to what she is saying. There is no complacency whatever on this. In fact, soil will be one of the top priorities in our new environmental land management and sustainable farming initiative schemes. So it will be prioritised. It is the stuff of life. All farmers and landowners understand that we have to get it right. The soil health action plan will absolutely drive that forward, as have action plans in many other areas, such as peat. We are now bringing that all into being, so I can categorically say that this will happen. I really hope that that gives her some reassurance.

--- Later in debate ---

[Rebecca Pow]

Data is key, and science is key. As I mentioned—and I was slightly disparaged—that is why we want to do the soil health monitoring: to gather the data. When I talk later about storm sewage overflows, the House will hear that our approach is very much about getting the data. My hon. Friend is absolutely right: the more we can explain things to the public, the better. Personally, I do not think that we do that enough. Perhaps the press could help us.

We were talking about interim targets. Certain habitats take a very long time to change or recover, such as peat bogs, native woodlands and the marine environment. Five years would potentially be too short to get a result. This should not be just a tick-box exercise towards a five-yearly target. The Bill’s very robust statutory cycle of monitoring, annual reporting and five-yearly reviews, combined with regular scrutiny from the office for environmental protection, will ensure that we meet the interim targets set in the environmental improvement plans.

Hon. Members who were on the Bill Committee will be well aware of the whole process of reporting, monitoring and feeding back, which is constant. It comes under scrutiny as well, so even though an interim target is not legally binding, we will still be held to account for meeting it and heading towards it. If it is not right or if we are not making enough progress, the OEP will certainly have something to say about it, and indeed so will Parliament when we come to report on it. I recognise the concerns raised by peers, but it is our view that the changes made in the other place would lead to a detrimental impact on the enhancement of the environment and should be reversed.

I turn to Lords amendment 28, which I have been informed by the parliamentary authorities invokes financial privilege, but on which I still wish to reiterate the Government’s position. The Bill embeds environmental principles that will guide future policy making to protect the environment. The Government firmly maintain that exempting some limited areas from the duty to have regard provides flexibility in relation to finances, defence and national security.

First, the exemption for the armed forces, defence and national security remains essential to provide vital flexibility to preserve the nation’s protection and security. Defence land and defence policy are fundamentally linked. If the duty were applied to defence policy or Ministry of Defence land, it could result in legal challenges that could slow our ability to respond to urgent threats.

Secondly, applying the duty to taxation would constrain Treasury Ministers’ ability to alter our financial position to respond to the changing needs of our public finances. The Treasury’s world-leading Green Book already mandates the consideration of environmental impacts, climate change and natural capital in spending. That applies to spending bids from Departments, including for a fiscal event.

[Caroline Lucas]

Will the Minister give way?

[Rebecca Pow]

For the last time, and then I will need to make some progress.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am very conscious that a lot of Members want to speak and that the debate has to finish at 4.36 pm, so I think we need to bear that in mind.

[Caroline Lucas]

Apologies, Madam Deputy Speaker; it is only my second intervention, and it will be my last for the moment.

On environmental principles, may I ask the Minister about the consultation on the policy statement? As I understand it, the Government’s response to it is still delayed. Can she tell us when we can expect to see it and why it has been delayed for so long?

[Rebecca Pow]

I thank the hon. Member for that question. In true Government-speak, I will say “shortly” and move on.

I make it clear that the exemption for

“spending or the allocation of resources”

refers to central spending decisions only. Individual policies that involve spending by Departments will still need to have due regard to the policy statement. Spending review and fiscal event decisions must be taken with consideration to a wide range of policy priorities, including macroeconomic issues that are too remote from the environmental principles for those principles to be directly applicable. For example, principles such as “polluter pays” cannot be applied to the allocation of overall departmental budgets.

I turn to the office for environmental protection. Lords amendments 31 and 75 would remove, respectively, the power for the Secretary of State to offer guidance to the OEP and the equivalent power for Ministers in Northern Ireland. I reiterate the Government’s commitment to establishing the OEP as an independent body. However, as the Secretary of State is ultimately responsible to Parliament for the OEP, the guidance power is required to ensure that there is appropriate accountability and that the OEP continues to operate effectively.

I acknowledge the concerns that have been raised about the power for the Secretary of State to issue guidance for the OEP. Our Government amendment (b) will therefore reintroduce the additional provision, first added in the other place, to ensure that Parliament and the Northern Ireland Assembly can scrutinise draft guidance before it is issued. The Secretary of State must respond before final guidance can be laid and have effect. The guidance power is not a power of direction; it will simply ensure that there is appropriate accountability and that the OEP continues to operate effectively. That is why the Government believe that it should remain part of the Bill.