Water Companies: Executive Bonuses

Debate between Rebecca Pow and Neil Coyle

Tuesday 5th December 2023 Commons Chamber

[Rebecca Pow]

I will carry on for a minute, because I know that you, Mr Deputy Speaker, will be urging me to speed up. For information, I wanted to say that in a recent High Court judgment it was found that our storm sewage overflows discharge reduction plan actually goes over and above the requirements of existing regulation. It would be nice if the Opposition recognised that, because it was specifically highlighted.

[Neil Coyle]

Will the right hon. Lady give way on that point?

[Rebecca Pow]

I am going to carry on for a bit.

Ensuring that our regulators are fit for purpose, to enforce our new regime, is absolutely crucial. With that in mind, we have increased the Environment Agency’s overall grant-in-aid funding by over 40% and capital funding by 80% since 2010. We have also provided an extra £2.2 million per year specifically for water company enforcement activity. In May we did even more: we provided £11.3 million of funding increase to Ofwat to treble its enforcement activity, because both EA and Ofwat have enforcement powers. In June, in recognition of the urgency of action, Ofwat approved a further £2.2 billion of accelerated infrastructure, which included £1.7 billion of investment, in reducing sewage discharges, including a major project to reduce sewage discharges in Lake Windermere.

The shadow Minister mentioned automatic fines. That idea would backfire, because if the regulators found evidence of criminal misdemeanours, it would prevent them from going through the courts and we would effectively end up with even higher fines. So the system of automatic fines would not work, but we have just brought in our unlimited penalties for the environment, so the regulators could use that option, but we still need the option for them to go to the courts if necessary.

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[Rebecca Pow]

I have heard about this incident. I refer DAERA to our plans on water to see how we are tackling such issues. Farming is a big cause of some of the pollution. We have launched our slurry infrastructure grant and a range of measures to work with farmers to cut down that pollution, so lessons could be shared.

[Neil Coyle]

On that point, will the Minister give way?

[Rebecca Pow]

I just wanted to say that we want to continue to drive down nutrient pollution from the water sector, which is why we have set a legally binding target to reduce phosphorus loads from wastewater treatment—

[Neil Coyle]

On that point, will the Minister give way?

[Neil Coyle]

On that point, will the Minister give way?

[Rebecca Pow]

The hon. Gentleman is so unrelenting that I will give way.

[Neil Coyle]

It seems apt that this is debate No. 2 this afternoon. If the Minister has so much faith in the measures she is talking about, why was she absent last night from the vote on new clause 10 in the Victims and Prisoners Bill on the sewage illness victim compensation scheme, despite voting just 15 minutes later?

[Rebecca Pow]

We have such a strong plan and it will be fully operational. I completely support the Government with the line they took last night. I am lined up with what we were dealing with last night and I support the Government position. I was dealing with some particularly urgent business last night. In my view, the new clause was superfluous because we already have powers, including those on criminal conduct, for people to act if they have been affected by pollution. They can already seek compensation when there is evidence of personal injury, loss or damage.

To get back to my speech, I am now on the bit about tougher enforcement. We recognise concerns about enforcement. We are working closely with Ofwat and the new leadership at the Environment Agency to ensure that regulators are holding the water industry to the highest possible standards. That includes bringing fines against water companies that do not comply with their permits and publishing the environmental performance assessment of water companies in England, giving a clear picture of company performance. Where that is insufficient, action will be and is being taken.

I had been meeting all the lagging water companies highlighted through that assessment to challenge them on their performance, and I am pleased that the new water Minister, my hon. Friend the Member for Keighley, is continuing to do that. I believe he met Yorkshire Water yesterday and South East Water last night, so we are continuing our unstinting drive with the water companies.

The regulator has launched the largest criminal and civil investigations in water company history into sewage discharges at more than 2,200 treatment works, following new data that has come to light as a result of increased monitoring at waste water treatment works. We have taken robust enforcement action against illegal breaches of storm overflow permits. Since 2015, the Environment Agency has concluded 59 prosecutions against water and sewage companies, securing fines of more than £150 million.

I cannot miss the opportunity to say that in Labour-run Wales sewage discharges are double what they are in England, so it is hard to take any lessons from the Opposition. They have the opportunity to step in and sort that out but they have not taken it.

The Government have launched the revolutionary storm overflows reduction plan, which prioritises action on the overflows that cause the most harm, to make the biggest difference as quickly as possible. Our strict targets will see the toughest ever crackdown on sewage spills and, as I have already stated, will require water companies to deliver that huge infrastructure programme worth £60 billion. Our plan will protect biodiversity, the ecology of our rivers and seas, and the public health of water users for generations to come.

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[Rebecca Pow]

I have given way enough; we want to get on and hear other speakers.

This Government will leave no stone unturned in tackling all aspects of water pollution and poor water company performance. That is why we have introduced the most comprehensive costed plan for water that delivers more investment, stronger regulation and tougher enforcement. By contrast—

[Neil Coyle]

rose—

[Rebecca Pow]

The hon. Gentleman has had his chance.

By contrast, the official Opposition and the Liberal Democrat party do not have credible plans to reduce discharges—we cannot just switch off storm overflows overnight, as some suggest—and their mixed bag of proposals would actually add hundreds pounds to customers’ bills. That addresses the point made by the hon. Member for Feltham and Heston (Seema Malhotra). Labour’s proposals would involve the digging up of enough pipes to go two and a half times around the globe. [Interruption.] That is actually correct.

As I said, I am really happy to share our plan for water with the shadow Secretary of State so that the Opposition can see exactly what is in place—our comprehensive, costed plan—and see that we are delivering now.