Water Industry: Financial Resilience

Debate between Rebecca Pow and Philip Dunne

Wednesday 28th June 2023 Commons Chamber

[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.

Oral Answers to Questions

Debate between Rebecca Pow and Philip Dunne

Thursday 17th November 2022 Commons Chamber

[Mr Speaker]

I call the Chair of the Environmental Audit Committee.

[Philip Dunne (Ludlow) (Con)]

The Minister will be aware that two or three weeks ago there was a well-publicised spillage at the beach at St Agnes in Cornwall, where a large volume of brown material was expelled into the river. Many campaigners immediately leapt to the assumption that it was a sewage discharge and became very voluble about how disgraceful it was. Had it been sewage, it would have been disgraceful, but it was in fact soil erosion. That is in itself another problem, but we need to urge moderate language when we manage these issues. People should not immediately leap to a conclusion, but allow the Environment Agency and the water company to be clear about what has caused the incident.

[Rebecca Pow]

I thank my right hon. Friend for raising that particular issue. Everyone jumped on the bandwagon, assuming that it was sewage, and it was proven not to be. That is why monitoring is so important and why this Government have set in place a comprehensive monitoring and data-gathering programme and project. We need that to sort out those issues, as well as all the other measures we have put in place.

Ofwat: Strategic Priorities

Debate between Rebecca Pow and Philip Dunne

Thursday 9th June 2022 Commons Chamber

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

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

[Philip Dunne]

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

[Rebecca Pow]

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

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

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

Oral Answers to Questions

Debate between Rebecca Pow and Philip Dunne

Thursday 28th April 2022 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

Further to the questions from my hon. Friend the Member for Southend West (Anna Firth) and my right hon. Friend the Member for Maldon (Mr Whittingdale), the Environmental Audit Committee published its report on water quality in rivers, which was widely well received across the House. The Government are supposed to respond to a Select Committee report within 60 days. I granted an extension to 90 days. I think we are now at 105 days. Can we please have this report today?

[Rebecca Pow]

I am well aware of that issue, as my right hon. Friend knows—indeed, I have discussed it with him—and I absolutely am chasing this up. If I could, I would get the response to him today, but it will come very soon.