Water (Special Measures) Bill [HL]

Debate between Baroness Jones of Moulsecoomb and Lord Roborough

Report stage
Wednesday 20th November 2024 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I thank the Minister for having listened not just to Members of your Lordships’ House but to the thousands of campaigners, because the amendments tabled in her name are actually of great value. However, I feel they do not go far enough, and a lot of people—though probably not those here—might agree with me.

I have co-signed two amendments in the name of the noble Lord, Lord Cromwell, and one in the name of the noble Lord, Lord Sikka. I will vote for them if any of them are put to the vote. There are lots of other helpful amendments, but those three are the most useful.

I cannot help but feel that, if we were talking about benefit claimants who had behaved in the way that water companies have, we would not just slap them on the wrist in the way that we have the water companies; we would crack down on them, claw back the money and take them to court. The water companies have got off so lightly in this whole process. That really does not seem fair to bill payers or to taxpayers.

Amendment 2 goes to the heart of the issue. Water companies have been ripping us off with financial engineering, and I do not think that the Government’s action plan will resolve this. The water companies have been saying that they invest all the bill payers’ money in infrastructure, but they then take out loans and pay themselves dividends. With this legislation—even with the amendments—the Government are missing the opportunity to crack down on predatory capitalism.

[Lord Roborough (Con)]

My Lords, I thank the Minister yet again for her engagement at every stage of the Bill’s progress and for the significant improvements that have been made to it as a result. I will speak to my Amendments 11 and 58, to Amendments 4, 7 and 10 in the name of my noble friend Lord Remnant, and to Amendment 2 in the name of the noble Lord, Lord Cromwell.

Amendment 11 is a simple amendment that would give the Secretary of State greater influence over the drafting of the rules on remuneration and governance. We all know that it is the Government who will be held to account in this House and across the country for their record on water quality and pollution reduction. It seems only right that Ministers should have the ability to shape these rules. Indeed, given the importance of getting them right, Amendment 11 would make the regulations subject to the affirmative procedure for statutory instruments, giving Parliament its own role in approving these rules. I intend to test the opinion of the House on this, depending on the Minister’s answer.

Amendment 58 relates to limits on water company borrowing. I will not reiterate the arguments I made in Committee and, having listened to the Government’s concerns about the possible impact of a hard statutory limit on current negotiations between the sector and prospective investors, I have tabled an altered amendment here on Report.

It is clear to His Majesty’s Opposition that water companies have failed to take a sustainable approach to borrowing, and the current safeguards are insufficient. The amendment simply gives the Secretary of State the power to make regulations under the affirmative procedure for secondary legislation, limiting water company flexibility and returns to shareholders when leverage becomes excessive. I am most grateful to the noble Lord, Lord Sikka, for stating the current leverage ratios of the industry, and I agree with many of his comments, if not his amendment.

Nothing in the amendment forces the Government to do anything; we are merely seeking to give them the tools they need to deliver an effective limit on water company borrowing, given the inability of the regulator to do so historically. The Minister will no doubt tell us that borrowing will be considered in the wider review of the water sector, and we welcome this. However, in the meantime, Ministers need tools to take appropriate action now. If the Government do not feel that a borrowing limit is necessary, nothing in the clause requires them to act, but we on these Benches feel that it would be a missed opportunity to let the Bill pass without giving Ministers powers that they may need to ensure that water company borrowing is at sustainable levels while we await the conclusion of the Government’s review. Subject to the response of the Minister, I am also minded to test the opinion of the House on Amendment 58.

The amendments in the name of my noble friend Lord Remnant, which we spoke positively of in Committee, have a great deal of merit. They would ensure that board members are the individuals subject to the rules on remuneration and governance, as well as preventing consumers being inadvertently subject to these rules and other penalties as members of a water company’s board. This can be left to the company to decide.

Amendment 2 in the name of the noble Lord, Lord Cromwell, to which I am also a signatory, complements my Amendment 58 on water company borrowing. Greater clarity on water companies’ financial engineering is important. Should he seek to test the opinion of the House, we would support his amendment.

Finally, following the Minister’s constructive response, I did not bring back an amendment on the requirement to provide training to employees on their specific legal obligations within the water industry both before and after the implementation of the Bill. I would be most grateful if she could confirm that the Environment Agency will give guidance to the industry on how employees will be informed of these legal obligations.

Victims and Prisoners Bill

Debate between Baroness Jones of Moulsecoomb and Lord Roborough

Committee stage
Tuesday 13th February 2024 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

While the Minister is still sitting down, I agree with everything that has just been said but also the victims I was talking about—the victims of state wrongdoing—have not been treated as victims of crime so they would come under the original code, except they have not had access to all the information, and so on. It is worth understanding that the current code is not enough. Plus, I am “Jones of Moulsecoomb”, not “Jones of Whitchurch”—no offence.

[Lord Roborough (Con)]

I apologise to the noble Baroness, Lady Jones of Moulsecoomb. I am grateful to the noble Lord, Lord Marks, for a much more eloquent summing up of what I was trying to say than I was capable of doing.

The Government acknowledge that there is a subset of victims of major incidents where a crime does not occur who are not being addressed because the victims’ code addresses principally the victims of major incidents where crime does occur. The Government believe that the independent public advocate will be a significant step forward in helping all victims of major incidents to have their needs met during this very difficult time.

The Government’s view is that the charter and the proposed code for victims of major incidents bear many similarities and it may be duplicative to implement both. The Government are also not convinced at this time of the necessity of placing these codes and charters which aim to change culture on a statutory footing, but we are happy to consult all Ministers, given the strength of feeling about how best to address the needs of victims of major incidents where crime is not involved. As I say, we have had dialogue today on exactly this matter and I am conscious that I am not giving noble Lords a very good answer but I think it is best if we agree to consult on that, if that is acceptable.

In answer to the points made by the noble Baroness, Lady Jones of Moulsecoomb, about cases where the victims’ code is not followed and where, potentially, victims are victims of state actions or some other incident, the victims can direct complaints to the organisation itself. It will have internal complaints-handling processes in place; I accept that in this particular instance that may not be much use. But if they feel that their complaint has not been resolved, they can escalate it to the Parliamentary and Health Service Ombudsman, who will investigate further.

Through the Bill, we are making it easier for complaints to go to the Parliamentary and Health Service Ombudsman where the complaint relates to the complainant’s experience as a victim of crime. It may also be open to victims to challenge a failure to deliver the entitlement set out in the code by way of judicial review. This will depend on the circumstances and standard public law principles will apply. As the most senior governance—