Crime and Policing Bill

Lord Deben Excerpts

Thursday 5th February 2026 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

I love these amendments and wish I had tabled them myself. They are excellent. Water companies dumping sewage into rivers has been illegal for years: it is just this and the previous Government’s refusal to act that has let it continue without serious consequences.

The legislation allows Ministers to set a bar of what is acceptable behaviour and, so far, every politician in charge has refused to say what is and is not a major failure. The result of this political cowardice is that water companies continue to make a profit out of polluting our waterways and beaches, and the people in charge continue to collect their big pay cheques and bonuses.

Regulators such as Ofwat have been in bed with the water industry bosses, and the Environment Agency has lost staff and legitimacy. Labour are wedded to private ownership of water and refuse to consider public ownership, even though it would be the most popular legislation they could enact this Parliament. I keep making suggestions about how Labour can get some voters back, but it is not listening.

These companies are fleecing bill payers with the excuse that they need to carry out the investment they have failed to do for decades. They have taken the public’s money and given it directly to shareholders. They have run up debts to pay even higher dividends and the bill payers are now paying for those debts. What is going to stop them doing this all again?

These amendments take a direct route to stopping pollution by making this personal to the people at the top. If they do not spend the money to invest and reduce pollution, then that is a crime. They are taking the public’s money and failing to improve. My own preference would be to put them on long-term community service cleaning up the sewage from our beaches, waterways and riverbanks. I would probably put them in special uniforms so that everybody passing by would know exactly who they are. I would also put a complete ban on dividend and bonus payments.

I am happy—she says, through gritted teeth—to support this more moderate suggestion, as being something the Minister might accept. I would not give them three years to turn it around either, but setting some sort of firm deadline would be preferable to the inaction of this, and the last, Government.

Finally, the best way of stopping the crime of water companies dumping sewage in our rivers is to take them into public ownership. Reduce bills by reducing the money wasted on debt repayments and replace the current set of overpaid bosses with people who can do the job and care about our environment.

[Lord Deben (Con)]

My Lords, I declare a historic connection with the water industry in the sense that I was the chairman of a water-only company more than 10 years ago, but it means I know a bit about the water industry and perhaps that is helpful after the last intervention, because the truth of the matter is that this is not just a problem of the water companies.

First, it is the problem of those people who controlled the water companies. The way in which it was operated was a great mistake. There were two regulators and the Environment Agency was almost always overturned by Ofwat. Ofwat was leaned on by successive Governments to keep down the price of water. So I start by saying that we must have a system in which we are paying for the big changes that we know about—and, because I have been around for such a long time, I remember why privatisation took place. It was not anything to do with Mrs Thatcher wanting to privatise. It was because, when it had been public ownership, both municipal and national, there had never been investment. It is all right for the noble Baroness to say that that is what we want; if you look at the history, it is about the worst history of public investment that we ever had. We had Surfers Against Sewage and the filthiest water: the worst water in northern Europe. When we signed up to the water directive, as we did when were sensibly in the European Union, it was quite clear that we did not meet the standards. The Daily Telegraph used to say, “Oh well, of course our water is better than anywhere else because they drink bottled water in France”. The truth was that our water did not meet the standards of the whole of Europe.

The privatisation took place to get private money into the water industry, to make the changes that were necessary—and, for a bit, it worked. I was the Minister responsible after that had been done and it was murder to try to deal with it. As these companies brought new technology and the rest into it, they had to charge more and therefore we had all the arguments about keeping the water price down. Unfortunately, we have to recognise that water is not cheap and it is going to be more and more expensive. For example, Essex & Suffolk Water—which is about 200 to 300 yards outside Anglia, where I am affected, so I do not have a direct connection—has announced that it cannot provide new water for any new or extended industry until 2036. That is the effect of climate change and of not having the water we need.

We have to be frank about our problem: we are going to have to spend a lot more money on water, make it much more efficient, use new technology and do that through the privatised system that we have. There is no point in arguing about it; it is not going to be nationalised. The Government have made that quite clear and nobody else is going to nationalise it. So let us see how we can make this work. That is why I have come to be semi-supportive of this amendment: the reality is that we have not been able properly to regulate water and we need to do so. Directors of companies in these areas need to be personally responsible when, for a period, they have clearly not done the job which they are supposed to do.

The noble Baroness wanted us not to have three years. Frankly, you have got to have a period in which you can see whether this a persistent problem or a one-off. We are going to have lots of one-off problems. I know it bores the Committee for me constantly to talk about climate change, but the point about climate change is that it is really climate disruption. It means that we have very significant changes in weather which we cannot predict in advance and therefore we can have real problems, with so much water that we cannot deal with it or not enough water so we cannot provide for people. That does not mean to say that the people of Tunbridge Wells do not have a very considerable complaint about the fact that, yet again, they have not been able to have the water that they ought to have.

--- Later in debate ---

[Baroness Jones of Moulsecoomb (GP)]

It is very brave of the noble Lord to say categorically that this Government will not put the water companies into public hands, because they are famous for their U-turns, so who knows what is going to happen next week? Secondly, all these bonuses and huge payouts surely show a level of incompetence. They had the money to do the investment and they gave it instead to shareholders.

[Lord Deben (Con)]

I am sorry, the second part of the noble Baroness’s comments are ones she makes about everybody who is in the private sector. That is what she thinks about the private sector and I do not agree with her. The Polanski mechanisms of this world are devastating politically and economically and, really, I am not going to answer that because I just think it is not true and is nonsense.

However, the first part is actually quite important. The reason the Government do not want to nationalise the water companies is that it would cost a great deal of money that we ought to use for other things—and it does not necessarily end up with a better system. I am a historian: I always like to look at what happened before. When it was in the public sector and was run by municipalities, we did not spend the money. That was the problem. And we still would not do so, because there is always something better to spend the money on immediately. We are politicians; you do it for what the next moment is. The trouble with investment in water is that it is crucial, but it is long term.

[Baroness Jones of Moulsecoomb (GP)]

First, I do not want to get into a spat with the noble Lord but could he not mention people by name in this Chamber? That is quite rude. Secondly, I am an archaeologist and I know exactly how these things start. The fact is, it may be that public ownership did not help but private ownership has made it much worse—and it is not true that I condemn all private businesses.

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

We are straying away from the amendment and strolling into a bigger debate. If we can get back to the amendment, that will be fantastic.

[Lord Deben (Con)]

On the personal attack, Mr Polanski is the leader of a party. If he cannot be referred to in this House, I wonder what on earth we are coming to.

[Lord Cromwell (CB)]

I will follow the strictures just put on us to stay with the amendment. I say to the noble Lord, Lord Deben, as he still came back for another bite, that as someone who sat on the Industry and Regulators Committee that looked into the water industry in detail, I know that the Victorian system reached its capacity in 1960, and public and private ownership both failed in different ways for the simple reason that he gave: short-termism. That is the problem we face: the multiple billions that have to be spent over a long period, and no Government looking to get re-elected for the next five years will ever spend it.