UK Water Companies: Chinese Financial Influence

Lord Cromwell Excerpts

Tuesday 15th September 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Yes, I can give my noble friend that assurance but, to deliver all this, we need to make sure that we encourage the right kind of investment into the infrastructure. That is one reason why the water industry is going to be included in the National Security and Investment Act mandatory notification scheme: to ensure that we have that assurance, as well as having information about delivery providers and the options to intervene, where necessary, if we are not happy with the transactions that are going forward.

[Lord Cromwell (CB)]

I know the Minister agrees with me that one of the reasons why the water industry got into such a mess was because it was so poorly regulated. A lot of the issues, such as overlaying debt, are simply a result of the regulator not being up to the job. I underline that the new regulator that we are promised—it will be called a super-regulator, apparently —really needs financially acute people who understand this sort of financial engineering. This need not have happened. We could have had a privatised water sector that was properly regulated. We did not; it was badly regulated and it got away with murder.

[Baroness Hayman of Ullock (Lab)]

The noble Lord hits the nail on the head regarding regulation. We know that it is not who owns the water company—whether it is nationalised or private—that decides how effective and efficient it is, and how well it works. It is how it is actually run and the financial nous that underpins it that does not allow it to get into debt and use leverage systems in a way that is not sustainable. That is what has caused so many problems. I completely agree with the noble Lord.

Hares: Close Season

Lord Cromwell Excerpts

Wednesday 24th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I thank the noble Lord and others in this Chamber for their huge support to further this legislation. As I said, it needs primary legislation. Legislative slots are always tight, but we are actively looking at how we can find a space during this Parliament. I think the best way that people can help is to express why this is so important and the difference it would make to hares, and to demonstrate that this country is an anomaly in not having a close season.

[Lord Cromwell (CB)]

While a close season is certainly a good idea, I have previously recounted in this House the case of a farming family who, sadly, feel obliged to kill all the hares on their land—because, otherwise, gangs running lucrative betting on illegal hare-coursing crash through their gates, destroy their hedges and drive four-wheel drive vehicles across their food crops, terrorising anyone who tries to stop them. Does the Minister agree that a close season will have no effect on these dangerous people, and that more resourcing for rural policing is what is needed to combat them?

[Baroness Hayman of Ullock (Lab)]

I thank the noble Lord, who has raised this issue previously. The close season for hares is a separate issue from the problem of hare-coursing. Hare-coursing is an illegal activity. It should not be taking place. Unfortunately, it has been picked up by criminals and has proved very lucrative for those criminals, who run betting rings on it. I am extremely concerned by the increase in it, particularly in certain areas. I have written to the Home Office asking for a meeting to discuss this further, because the noble Lord is absolutely right that, without enforcement, this will not to be resolved. These are dangerous people, and we need to do something about it.

Thames Water

Lord Cromwell Excerpts

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

On the basis that I do not know how many pipes, what size reservoir and where it would be, it is difficult to assess a capital investment. The Government have a reservoir policy. We have committed to building new reservoirs. No Government have done that for many years now, which is partly why we have issues with supporting housing development and important infrastructure development in the south-east. We are working closely with the Ministry of Housing, Communities and Local Government because we must get this right to ensure that our economy is fit for the future.

[Lord Cromwell (CB)]

I agree with the Minister that debt overburdening of the company was a major cause of its problems. She has heard me call many a time for the new regulator to have the proper understanding of financial engineering, which the current Ofwat team simply did not have. That enabled the companies to get away with this. I underline this again because it was a simple inadequacy of understanding of financial engineering that enabled this situation to occur.

[Baroness Hayman of Ullock (Lab)]

The noble Lord is correct that how debt was leveraged was unsustainable. It has led us to a situation where companies—not just Thames Water—are saddled with a ridiculous amount of debt that the regulator should have had more of a grip on. I am happy to discuss further the noble Lord’s thoughts on this. We have had discussions before. When we come to the next water Bill, making sure that we get the regulator correct will be crucial.

Water Companies

Lord Cromwell Excerpts

Tuesday 9th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The Government are very keen to press forward with new reservoirs. It is unfortunate that no new reservoirs have been built in almost 40 years. There are a number of reasons for that, and it is one of the reasons why we brought in the Planning and Infrastructure Act: to allow major projects—nationally significant infrastructure projects—to be able to move forward more quickly. We are currently working through that process.

[Lord Cromwell (CB)]

My Lords, yesterday I asked the Minister how long it takes to build a reservoir, but I am not sure I got an answer. I am told by a bit of internet research that it will take roughly 10 years to get through planning and then a further five to 10 years to build a reservoir, by which time I think most Members of this House will be either former Members or late Members. Are those the figures that the Minister is working to?

South East Water: Disruption of Supply

Lord Cromwell Excerpts

Monday 8th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The noble Lord makes good points. One problem that we clearly have is that there are parts of the country that have plenty of water and parts that have very little water. Unfortunately, the parts that have very little water tend to be the ones with the highest populations. We have to look at how we are going to manage that long term, because clearly what we are doing at the moment simply is not working and is not the right approach. Again, that is why we want to reform the water industry and shake it up properly. It is critical that the points the noble Lord makes are taken into consideration, because we have to get this right.

[Lord Cromwell (CB)]

The Minister knows that she has my full support in shaking up the water industry, as we have discussed on quite a number of occasions. While it is all very well for us to tell her to hurry up and supply more water, can she tell the House how long it takes to build a reservoir?

[Baroness Hayman of Ullock (Lab)]

That is a very good question. Obviously, we have not built a new reservoir for more than 30 years. That is one reason why we have reduced domestic capacity, as the noble Lord knows. We need to just get on with this as best we can. We are trying to get a co-ordinated system-wide approach to it. Havant Thicket is the first new reservoir, so we are using that as a live learning opportunity for the Government, regulators and the water companies, because we all need to work together if we are going to do this. A reservoir senior sponsorship group was established by the Water Delivery Taskforce, designed to both identify and resolve any barriers that we have in delivering a new reservoir. There has been talk of reservoirs for years, so we need to work out why it is not happening so that we can crack on and make it happen.

Plastic Pollution Reduction

Lord Cromwell Excerpts

Wednesday 22nd April 2026 Lords Chamber

[Lord Cromwell (CB)]

My Lords, does the Minister agree that one of the biggest practical difficulties in all this is separating plastic from general waste? Are the Government going to get involved in incentivising the earlier separation of plastic from general waste?

[Baroness Hayman of Ullock (Lab)]

The noble Lord is right. Of course, another issue is inconsistency across the country as to how that is done, which can confuse people when they are staying in other places. The key to resolving that issue is the work that we are doing with local authorities, because this is a local authority responsibility. The Government need to work with local authorities so that they have the resources and the powers that they need to make this work effectively.

Trail-hunting

Lord Cromwell Excerpts

Wednesday 18th March 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, the consultation has been designed to be open-handed and fair, so that all concerns, from both sides of the argument, can be heard and fully taken into account as we move forward to design the legislation. As I said, this is a manifesto commitment. It is important to point out that we believe that rural areas offer significant potential for growth and are central to our economy. There are many businesses that we can support within the rural communities to continue to bring forward greater productivity—rural productivity is less than urban productivity. We are doing our utmost to support the rural economy in many areas. One of the key areas in which we can do so is by improving our transport links.

[Lord Cromwell (CB)]

My Lords, my family, on our farm, has not allowed fox-hunting across that land for well over 40 years. However, as a student, I occasionally used to run cross-country with a piece of rope and a scented rag, and was pursued by hounds. I can assure the House that no animals were harmed in that process—I was left exhilarated but rather breathless. On an equally serious point, does the Minister agree that a higher priority should be to resource the police to deal with the rapidly rising tide of rural crime, including waste-tipping, theft and hare-coursing, rather than chasing after people who simply like to dress up and ride along a pre-set trail?

[Baroness Hayman of Ullock (Lab)]

I commend the noble Lord on his earlier fitness—I do not know if he still carries it out. It is important to stress that there are no plans to include other activities, such as drag hunting and clean boot hunting, in the ban on trail-hunting. The noble Lord makes a really important point about enforcement. I have asked for a meeting with Home Office Ministers to discuss exactly that, in not just this area but others within Defra, as we feel that we need to work much more closely with the Home Office to ensure the enforcement of the laws that we bring in.

Sustainable Farming Incentive: Small Farms

Lord Cromwell Excerpts

Wednesday 11th March 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I am beginning to wish I lived in Norfolk so that I could come—it is a long way from Cumbria. I reassure the right reverend Prelate that one of the things we have been working much harder on in Defra, as we develop policies and then manage and oversee them, is working with other departments where there is also an impact. It is really important to have that oversight. The noble Lord was just talking about energy prices, and we work with DESNZ on how best we can approach that. It will be the same for rural-proofing more broadly. It is certainly very much on our agenda.

[Lord Cromwell (CB)]

My Lords—

[Baroness Jones of Moulsecoomb (GP)]

My Lords—

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

It is the turn of the Cross Benches.

[Lord Cromwell (CB)]

My Lords, can the Minister confirm that, in the first round of SFI26, the maximum per farm will be capped at £100,000? According to my mathematics, these aspirant billionaires with 50 hectares cannot possibly fit enough options in there to get to £100,000. Would it not be better to reduce the cap—make it, say, £30,000—and spread it far more widely over these small farms than will be possible now?

[Baroness Hayman of Ullock (Lab)]

The noble Lord is absolutely correct that there is a cap of £100,000. The first tranche is open to small farms and those who do not have an agreement, and then there will be another tranche in September, which will be open to all. That is why the cap is important.

Water Companies: Fines

Lord Cromwell Excerpts

Thursday 29th January 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

In March last year, Yorkshire Water agreed to pay an enforcement package of £40 million to address the failures that were found by the investigation at that time. That package is to prioritise work on some of the most problematic storm overflows in environmentally sensitive areas to ensure that they spill less than 20 times a year. Surely that must be our priority.

[Lord Cromwell (CB)]

My Lords, it may have come as a surprise to many water bill payers that payment plans out to 2030 were agreed to pay fines. Will the Minister agree that when fines are imposed in future, a payment plan that goes with them should also be announced?

[Baroness Hayman of Ullock (Lab)]

The noble Lord makes a helpful suggestion, and I am happy to take that back to the department.

Large-scale Waste Crime

Lord Cromwell Excerpts

Wednesday 14th January 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I am sure the noble Viscount and others know that the Kidlington situation was utterly appalling. It was, as he said, quite extraordinary that it was allowed to happen. It is important to recognise that it was exceptional. We need to concentrate on the fact that waste crime is more and more frequent. It is a serious criminal activity that blights our countryside, which is why, as I said, the status quo is not acceptable, and we are seriously looking at what we can do to make the improvements that are needed.

[Lord Cromwell (CB)]

My Lords, the Minister’s department has confirmed in Answers to a series of Written Questions from me that neither the Government nor local authorities have any responsibility for dealing with the disposal of material dumped by third parties on private land. Criminals are of course aware of this, and target fields and tracks off immediate public highway verges with impunity. Victims typically lack the money or expertise to remove illegal waste yet are told that it is down to them to deal with it. Does the Minister feel that this state of affairs is just? Do the Government have any plans to address it and give practical assistance to the victims?

[Baroness Hayman of Ullock (Lab)]

As I said, we do not think the status quo is working. We need to look at how tidying up and tackling waste crime, both from the start and at the clearing up end of things, are properly resourced, and at how the criminals carrying out this illegal activity are caught and dealt with. As the noble Lord said, that is difficult because of the nature of where it happens but, again, we are working across government to look at the best way to tackle this, because unless we all come together across government, we will not resolve this issue.