World Health: 25-Year Environment Plan

Debate between Rebecca Pow and Lord Benyon

Tuesday 9th April 2019 Westminster Hall

[Rebecca Pow (Taunton Deane) (Con)]

Thank you for squeezing me into today’s debate, Mr Walker, and I again thank my hon. Friend the Member for St Ives (Derek Thomas) for securing it. At the outset, I will welcome the 25-year environment plan, which is a great step forward for this Government, and the environment Bill, which is the most exciting piece of environmental legislation that we have had in this country for decades. I am so proud to be part of a Government that will be bringing that Bill forward, and I hope that I can get involved in doing so.

As has been touched on, that Bill is much needed. We have had terrible crashes in biodiversity, not just in the UK but internationally. I will quote a couple of statistics. First, we have had a 75% crash in the number of farmland birds in the UK since the 1970s. I grew up on a farm, and I used to see yellowhammers every day as I went to school. I have not seen one in years and years; I do not know who else has.

[Richard Benyon]

Come to my farm.

[Rebecca Pow]

I will go to my right hon. Friend’s farm in Berkshire, but there are certainly very few yellowhammers left in Somerset.

There has also been a two-thirds crash in the global population of flying insects. Insects are our friends: we need them, and we cannot survive without them. I did entomology as part of my university course, and people probably thought that was amusing, but it is proving very useful. Insects pollinate our crops, and we need a world in which they can thrive. It is very important that we put legal obligations into the environment Bill that commit us to achieving all the things that are stated in the environment plan and that will hopefully be put into that Bill.

Nature recovery networks have been mentioned. I have been involved with the Somerset Wildlife Trust, which has a very good model for those networks; I believe the Minister knows about them. They are like a framework for all land use and all the things that go on to a piece of land, so that we can work out what is important, what to concentrate on, what has disappeared, what we can add and what we need to work on. They are very important.

I would also say that our rural areas will be important to us in the future, because they are like the lungs for the urban centres. They provide us with green space, places for tourism, places to grow food, flood control and all those things. We need a much bigger agenda to bring the rural area into helping us to solve our biodiversity problems.

Water Industry

Debate between Rebecca Pow and Lord Benyon

Tuesday 22nd January 2019 Westminster Hall

[Richard Benyon]

I can come on to talk about suggestions that I think have some virtue, particularly employee share ownership schemes. As with everything, there is no perfect right or absolute wrong; there is a massive area of grey, and I will explore some of the nuances, on which I think we can perhaps find some agreement.

On the model of nationalisation I have heard certain individuals speak about at Momentum rallies, I think about the head of a nationalised utility company going to see the Chancellor to plead for more infrastructure investment funds, only to be told, “Get in the queue behind the NHS, welfare, policing and schools”—the long list of public spending priorities that come before something that is now funded privately and by institutional investors. Let us consider some facts. Since privatisation, water companies in England and Wales have spent about £150 billion on improvements to the water service. That is infrastructure that had been absolutely ignored by public expenditure before it was put into the private sector. The companies now spend about £8 billion a year continuing with those improvements.

When I was water Minister, I met institutional investors and saw that the regulated utility sector is an extremely popular place for people to invest, including for pension funds—the people who pay the pensions of people in the public sector. I welcome the fact that sovereign wealth funds and overseas investors want to invest in the United Kingdom. They do so because it is a stable and relatively low-yielding but relatively secure investment.

[Rebecca Pow]

Does my right hon. Friend agree that water companies are already getting involved in good environmental projects, to clean the water, work with landowners and make it so that the water needs less treatment? With that interest in sustainability and many more people wanting to engage in green investment, does he foresee the opportunities expanding, particularly as under the Agriculture Bill we will be paying for public services, the public good and the need to protect our land more?

[Richard Benyon]

As water Minister, I pushed the concept of payment for ecosystem services, which was against Ofwat’s institutional view at the time, though I am happy to say that it has moved on. It liked the idea of a regulated asset—of measuring the quality of the water coming in at one end and going out at the other, and judging whether the asset was working. I would say, “Try to let a thousand flowers bloom.” Some of them would fail, but building that relationship between a water company and land managers upstream, and paying them to help to produce better quality water, is the sort of thing I am glad to say is now becoming the welcome norm across the sector.

[Rebecca Pow]

I meant to mention an excellent project I have visited. Upstream Thinking, run by South West Water, is a phenomenal example of exactly how that is working.

--- Later in debate ---

[Richard Benyon]

I do not know the circumstances in Scotland, so I can only speculate, but that is another country that is not short of water, as many parts of this country are. I just think that we need to look at what the customers are saying, and my impression is that customers are not shrinking violets. When I came into this House in 2005, my inbox was overflowing with complaints about Thames Water’s customer service, which made me realise that water is an absolute necessity of life. It is the first thing that people will complain about; it is something that we perhaps rely on too much, and use too much of, in the area of the country in which I live. However, the idea that customers are somehow not involved in and concerned with raising these issues is wrong. When they are asked about them, they give quite interesting responses.

[Rebecca Pow]

Will my right hon. Friend give way?

[Richard Benyon]

Let me just finish this point. A recent ComRes survey shows that 86% of customers trust their water company overall, with 89% trusting it to provide good-quality water and 87% trusting it to provide a reliable service. Those are levels of satisfaction that we as a political class can only dream of.

Will my hon. Friend the Member for Taunton Deane (Rebecca Pow) be very quick? I know that other Members want to speak.

[Rebecca Pow]

Does my right hon. Friend think that there is still a role for customers in reducing their water consumption? Water is a precious resource, and we are probably using more than we ought to.

[Richard Benyon]

Yes, we need to do more. When compared with other European countries, we are absolute laggards: we use much too much water, wash our cars with potable, drinking-quality water, and do all kinds of things that we should not. We have to change our lives, and I hope the Minister will be able to inform us about what will be happening in that area in the future.

On the topic of dividends, which is a key point, Ofwat says that each company’s licence requires it to declare or pay dividends

“only in accordance with a dividend policy which has been approved by its Board and which complies with both of the following principles.

The dividends declared or paid will not impair the ability of the company to finance the regulated water and sewerage business.

Under a system of incentive regulation, dividends reward efficiency and the management of economic risk.”

In the past, some companies have certainly played a bit fast and loose with those principles, and have developed levels of gearing that I, as a manager of a small business when I entered DEFRA, found quite eye-watering. However, the hon. Member for Harrow West does tend to pick on the bad players, and in talking about Thames Water, he was perhaps not talking about the Thames Water of today. He might have been talking about a model that applied under previous ownership, and I urge him to look more closely at what Thames Water is trying to achieve today.

We should encourage companies to look at employee share ownership schemes. That whole concept of finding ways to democratise capital is a huge, rich seam that we could collectively work on. Water companies are good places to encourage not just employees, but customers, to develop a higher interest in the ownership of that company, which is a better way to get more people involved without damaging any investment potential. I worry about Labour’s proposals for nationalisation right across the sector. It recently published its plans in a publication called “Clear Water”, but stopped short of explaining how the big challenges faced by the water industry, such as climate change and an increasing population, would be addressed by its substantial re-organisation of structures and ownerships. That publication makes no attempt to acknowledge the many improvements made since privatisation in 1989, let alone the further benefits such as falling bills, improved services and increased investment that companies have set out for the future.

If water is nationalised, it could seriously damage the service and quality of water in England. It could create a future in which decisions are driven primarily by short-term political expediency rather than the needs of customers, and in which the high levels of investment needed to improve services are not sustained. The result would be bad for customers, bad for the environment, and bad for the economy.