Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 5th May 2016 Commons Chamber

[Elizabeth Truss]

I congratulate my hon. Friend on his campaign. Food safety standards are one of the reasons why British food is so respected around the world, and our exports are growing because people respect the work of the Food Standards Agency. It is important for consumer confidence that we have transparency in the safety of food, and I look forward to hearing more about my hon. Friend’s discussions with the Department of Health.

[Alex Cunningham (Stockton North) (Lab)]

The Secretary of State will be aware that our largely foreign-owned water companies made £2.1 billion profit in 2014-15 and paid out £1.8 billion in dividends, but fell well short of paying full corporation tax. She will also be aware of the complicated structures that the companies operate, which can bamboozle us all. Does she agree that the expected water Bill to introduce competition into the domestic market could be used to ensure that companies are more open and transparent, and pay more tax in the UK?

[Elizabeth Truss]

We are introducing further measures to improve competition in the water industry and to carry on driving efficiencies. Under the Labour Government, water bills rose by 20%, whereas Ofwat’s most recent decision will lead to a fall of 5% in customers’ water bills.

[Alex Cunningham]

I had hoped that the Secretary of State would have proved a greater water, consumer and taxpayer champion, so I will give her a second chance. Water UK, which represents the water companies, told the weekend media:

“Water companies are also providing more help than ever before for customers in vulnerable circumstances including social tariffs and other schemes to reduce bills.”

She will know, as I do, that such schemes are arbitrary and variable. Does she agree that the next water Bill could provide an opportunity to introduce a fair scheme for all vulnerable customers?

[Elizabeth Truss]

More social tariffs are being introduced right across the country, but the key point is that everybody is seeing a reduction in their water bills overall, because we have a good regulator and an efficient industry, and we are introducing further competition.