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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Robbie Moore)
I thank my hon. Friend the Member for East Devon (Simon Jupp) for bringing the matter of the performance of South West Water before the House, which has proven to be an incredibly important debate. I am disappointed in the continued poor performance shown by South West Water and its impact on our local environment.
Recently, I undertook a tour of the south-west and heard at first hand how pollution can impact coastal communities and local economies. I want it to be clear that this Government have made improving water company performance a top priority. While performance may have improved in the 2022-23 reporting year, South West Water remains one of the worst performing companies, with a long way to go still—in particular on pollution incidents and storm overflow discharges, both of which were significantly above the industry average in 2022. That is completely unacceptable. South West Water should be under no illusion: it must take urgent steps to reduce its pollution incidents significantly, as well as addressing other performance concerns, such as increasing resilience of the water supply.
Among the concerns expressed by Members, my hon. Friend the Member for East Devon raised the issue of sewage discharge into Exmouth bathing water. I have recently had discussions with him about that, and he has written to me several times. Although the condition of the bathing water is currently classified as excellent by the Environment Agency, I wish to reassure the House that the recent incidents raised by my hon. Friend are currently being investigated by the Environment Agency. It has required South West Water to provide data and information to support its investigations. It would be inappropriate for me to comment from the Dispatch Box while this investigation is ongoing, but please rest assured that the regulator will not hesitate to hold the water company to account if a breach has occurred.
The Environment Agency is also scrutinising South West Water’s overall pollution reduction plan to ensure that the company has the right plans in place to prevent future issues. I will also be personally seeking assurance from the chief executive of South West Water, Susan Davy, that the company is doing all it can to mitigate the environmental impacts and protect bathing waters both in Exmouth and across the south-west for the sake of both the environment and public health.
I am also aware of the concerns of Members and the public following high-profile sewage spills, such as those at Harlyn bay in Cornwall. I am pleased to see that South West Water has outlined an £800,000 investment in this area by 2025 to reduce surface water ingress into the combined sewer network to help reduce storm overflow spill frequencies. However, its actions are again coming too late, following years of neglecting its civic duties. This Government will not be shy of holding the company to account.
Richard Foord
Would the Minister agree that the problem is not just with one single water company but with the regulatory environment in which water companies operate? That is why at last night’s #EndSewagePollution coalition meeting, which I brought together, we had present the Rivers Trust, British Canoeing, the Angling Trust, River Action UK, Swim England, Surfers Against Sewage and the Women’s Institute. Does the Minister regret being unable to attend?
Robbie Moore
I find it a huge misfortune that it is Lib Dem policy to get rid of one of the key regulators, Ofwat, as has been confirmed in this debate. We have just given Ofwat powers to take a much more robust approach to dividends and water company bosses’ bonuses, so I fear for the future of holding water companies to account if Lib Dem policy is get rid of it. This Government know that the industry needs to go further and faster to address these issues.
In 2022, data indicated that 6.47% of South West Water storm overflows spilled 100 times or more, which was twice the sector average. That is quite simply unsatisfactory. That is why we have introduced our storm overflows discharge reduction plan—the most ambitious plan to address storm overflows discharges in water company history, which will deliver £60 billion of capital investment by 2050 and target our most important sites, including bathing waters first.
The Government have also driven water companies to ensure that we now have 100% monitoring of storm overflows; that is up from 7% in 2010 under the previous Labour Administration. It was the last Labour Administration who brought out self-monitoring; we want to overturn that as we have better data from the roll-out of 100% monitoring.
However, I recognise the progress happening in the south-west. Indeed, I recently visited a pilot scheme at Combe Martin village with my hon. Friend the Member for North Devon (Selaine Saxby), where smart water butts and sustainable drainage had been introduced to better manage rainwater. That was having a positive impact. I commend my hon. Friend on the good work that she has been doing in her constituency, working together with her constituents and with campaign groups to ensure that a partnership-led approach can actively work on the ground when it comes to tackling sewage pollution.
Mr Perkins
The Minister mentioned something that some of his colleagues have referred to. Self-monitoring was either a big problem, in which case I do not know why the Government have not got rid of it in the last 14 years, or it was not. He needs to be credible about this. If he is trying to say that self-monitoring is a problem, they should have done something years ago.
Robbie Moore
That is why this Government have rolled out 100% monitoring of our storm overflows; once we have the data, we are able to hold failing water companies to account. That is exactly what this Government intend to do through our “Plan for Water”, which is all about more investment, stronger regulation and tougher enforcement.
I also wish to address some of the points made by my hon. Friend the Member for Newton Abbot (Anne Marie Morris) regarding South West Water’s resilience to drought, as I know many in the region experienced extended hosepipe bans. I am pleased to say that South West Water has informed us that, as of 22 February 2024, the Roadford reservoir is now at 100% capacity and Colliford is at 87%, showing significant improvement. The Environment Agency continues to work with the company on a range of new sources to improve resilience. I recently visited Hawks Tor, a former clay pit, that has been brought into the water supply to try to deal with some of those water resilience issues.
Many Members mentioned the issue of investment. Of course, addressing these concerns requires investment, and this responds to some of the points made by my hon. Friend the Member for Torbay (Kevin Foster). Following a DEFRA commission, Ofwat—which, it seems, the Lib Dems want to abolish—agreed to accelerate £128 million of funding to accelerate smart metering, build nutrient removal systems to improve river water quality and accelerate 15 storm overflow improvements in the Falmouth and Sidmouth catchments.
South West Water’s latest business plans include a significant £2.8 billion package of investment, which Ofwat is now scrutinising to ensure that it will truly deliver for customers and begin to turn its poor record around. Its commitments will also include achieving the lowest level of pollution incidence in the sector and significantly increasing water quality and water resilience by investment in new treatment works, reservoirs and tackling leakage. South West Water must now deliver on those ambitious plans, and this Government will hold it to account every step of the way. I look forward to my next meeting with the chief executive to be able to get an update on those plans.
I also wish to assure the House that the Government and our regulators, Ofwat and the Environment Agency, do not take underperformance lightly. As a result of failing to meet its performance commitments, Ofwat has directed South West Water to return £9.2 million to customers during the financial year of 2024-25, in addition to the £13.3 million returned in the financial year 2022-23. I again reiterate that, if the Lib Dems want to get rid of Ofwat, I am not quite sure who would be directing South West Water to do that.
South West Water was also instructed by Ofwat to produce a service commitment plan to demonstrate how it will meet the commitments made at the start of the current five-year price review period, and that was updated in November 2023. As I have said, I will shortly be meeting the chief executive of South West Water again to discuss progress on its plans and to hold the water company to account on its specific failures on pollution incidents.
When water companies fall short, we will not hesitate to hold them to account. Since 2015, the Environment Agency has secured fines of over £150 million, including a £2.1 million fine for South West Water in April 2023. Furthermore, under the action taken by this Government, we will be strengthening regulation to ensure that regulators have the tools to hold water companies to account. I want to thank all Members for their contributions today, and particularly my hon. Friend the Member for East Devon for bringing this important debate before the House.
Gordon Henderson (in the Chair)
The hon. Gentleman has one minute to wind up.