Water Industry: Financial Resilience

Debate between Rebecca Pow and Dan Jarvis

Wednesday 28th June 2023 Commons Chamber

[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.

Oral Answers to Questions

Debate between Rebecca Pow and Dan Jarvis

Thursday 25th May 2023 Commons Chamber

[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.

Water Company Performance

Debate between Rebecca Pow and Dan Jarvis

Tuesday 21st February 2023 Commons Chamber

[Dan Jarvis (Barnsley Central) (Lab)]

The current arrangements are clearly not working. Last month, I asked the Minister if she thought that water regulation was fit for purpose. She replied:

“Yes…but many tweaks and improvements”

are needed

“to ensure that it is working properly.”—[Official Report, 12 January 2023; Vol. 725, c. 702.]

Let me give her another opportunity to answer the question. Does she really think that the current system of regulation for the water industry is fit for purpose?

[Rebecca Pow]

We have a regulator. Its job is to regulate the water companies. The Government sent a very strong policy statement to Ofwat to direct the water companies on a whole range of measures, not least putting the environment at the top of the agenda but also enabling the supply we need for the future population, so we can all have the clean and plentiful water we deserve. We now have an extremely comprehensive plan in place to deal with that.

Oral Answers to Questions

Debate between Rebecca Pow and Dan Jarvis

Thursday 12th January 2023 Commons Chamber

[Rebecca Pow]

Yes. I also thank my hon. Friend for his work as the local MP; all our local MPs got involved in this, as did DEFRA’s emergency team. I met the chief executive officer of South East Water to talk about how it had to put up better water stations and improve its communications—all the things that he is mentioning. Its feet will be held to the fire to get its comms out to everybody to explain what happened and to improve the situation in future.

[Dan Jarvis (Barnsley Central) (Lab)]

Untreated sewage was released from storm overflows for more than 2.6 million hours in 2021, according to The Rivers Trust, and now, according to the Competition and Markets Authority, customers are paying on average 20% of their water bills on servicing debt and rewarding share- holders. That is billions of pounds that could be spent clearing up our waterways and investing in infrastructure. Does the Minister really think that the current system of regulation is fit for purpose?

[Rebecca Pow]

Yes, the Minister does think that the current regulation is fit for purpose, but many tweaks and improvements are made to ensure that it is working properly. That is why, under the Environment Act 2021, powers were given to Ofwat to alter the licences, so that what it pays out reflects whether it is improving the environment. That will be a critical step forward, as will our strategic policy statement that we gave it to put tackling storm overflows and improving the environment at the top of the agenda.

Oral Answers to Questions

Debate between Rebecca Pow and Dan Jarvis

Thursday 28th April 2022 Commons Chamber

[Rebecca Pow]

We all remember that event well, and I am pleased to hear my hon. Friend’s report that the reservoir has been made safe. Works were completed in 2019 and the long-term plan is under way. Actions to address 15 of the 22 recommendations made in the independent review after the incident are complete. In order to address the remaining recommendations, the EA will shortly publish guidance for reservoir owners.

[Dan Jarvis (Barnsley Central) (Lab)]

The Minister will recall that earlier this year we launched “Connected by Water”, an innovative flood strategy for South Yorkshire that will protect thousands of homes and businesses. I am grateful to the Minister for her support. Will she commit to working with my successor as Mayor, whoever they may be, so that together we can draw down all the investment needed to deliver the plan in full?

[Rebecca Pow]

We have been in regular touch about this, and this much wider approach to tackling everything connected with flooding is absolutely the right way. It is the direction that the Government are taking, including many nature-based solutions, and my door will always be open to speak to colleagues.

Oral Answers to Questions

Debate between Rebecca Pow and Dan Jarvis

Thursday 27th January 2022 Commons Chamber

[Rebecca Pow]

I thank my hon. Friend for that question, and my sympathy goes out to those who suffered and indeed are still suffering. We expect water companies to carry out their duties and deliver on their commitments, and we fully support the regulators in holding them to account. In the 2019 price review, Ofwat confirmed that Thames Water had incurred a penalty of £148 million for cancelling the Counter’s Creek project, which I believe is the one she refers to. As Members will know, the Government are now taking strong action on the water companies, through our statement to Ofwat. I have met my hon. Friend before, but I would be particularly happy to discuss this project with her.

[Dan Jarvis (Barnsley Central) (Lab)]

rose—

Flooding Preparedness: Yorkshire

Debate between Rebecca Pow and Dan Jarvis

Wednesday 30th September 2020 Commons Chamber

[Rebecca Pow]

The right hon. Gentleman makes a sound point. We have many schemes, grants and funds, but it has to be calculated. When working with the people who allocate the grants, it has to be done on the basis of the number of homes and properties protected. He knows that there is a formula for that. I urge him to continue to work with the EA, the Government and the local resilience forums so that the schemes that will help his people and communities can come forward.

In West Yorkshire, phase 1 of the Leeds flood alleviation is now complete, and phase 2 is well under way. That is a £94 million investment.

Looking ahead to the next six years, the Government will be investing over half a billion pounds in Yorkshire, with partnership funding making the overall figure significantly higher, reducing flood risk to approximately 22,000 homes. I have touched on the £170 million fund that has just been handed out to a whole range of projects that had been affected particularly during the coronavirus pandemic to help communities there. Indeed, £50 million of that went to Yorkshire, with £16 million going to the Sheffield upper Don Valley and the upper Don catchment natural flood management scheme to better protect 19,000 jobs and 665 businesses.

The hon. Member for Barnsley Central touched on natural flood management. I totally agree that this is one of the tools that have to be engaged with. Many projects are already coming forward and there are many more to come. We are committed through our new flood policy statement to many more of these nature-based solutions.

[Dan Jarvis]

I really welcome what the Minister says about natural flood solutions, and I welcome the response that she is giving. However, it would be a terrible shame if we ended the debate without clarity about the summit. Hon. Friends have raised important points about the extent to which all of Yorkshire will be involved in this particular gathering. It would be really useful if she could clarify whether it is just for South Yorkshire or for the wider Yorkshire county area. If it is just for South Yorkshire, what plans are in place to ensure that the other constituent parts of the county get the support that they so urgently need as well?

[Rebecca Pow]

The hon. Member has been assiduous in pressing me. The meeting that the letter has gone out for is for South Yorkshire, and a raft of MPs have been invited to it. The Secretary of State and I very much want to discuss the issues that have been flagged up to me over the summer—actually, over all the months since I stepped into this role—and that is what we are going to discuss. We have had a great deal of engagement with other MPs. I can list for him all the constituencies, if he wants me to go back over that, all the people we have engaged with in our Department, and the flood schemes that the Environment Agency and DEFRA are engaged with.

Returning to nature-based solutions, this is a really important tool going forward, for a raft of reasons—not just for flood control but to help with our climate change mitigation and our policies on reaching net zero and carbon capture and storage. It has multiple benefits and it is one of the tools that we will be using. The Government have committed a component of our capital programme to natural flood management and we have provided specific funding, in addition, to specific schemes. I hope that the hon. Member will welcome that and that we will see more of these projects coming forward in Yorkshire in general.

On the tree front, I, too, am very keen to plant a great many trees. We have our tree strategy, which I hope the hon. Member has looked at, read and inputted into, because it is now closed. We will be summarising it shortly. It will inform the Government’s commitment to plant 30,000 hectares per year across the UK by 2025. It sounds like he is going to be playing his part in helping us to do that, and I very much welcome that. Funding from the nature for climate fund will go towards helping with tree planting.

I think that we and the hon. Member have much in common: green recovery, climate change, and nature-based solutions. He needs to learn a lot more about what we are doing in DEFRA, because all these ideas are coming through, not least in the Environment Bill and the Government’s commitment to a green recovery. I look forward to the meeting that is coming up on 8 October, and thank him very much, again, for raising this issue tonight.

Question put and agreed to.