Independent Water Commission

Alistair Carmichael Excerpts

Wednesday 23rd October 2024 Commons Chamber

[Mr Speaker]

We come to the Chair of the Select Committee.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The Secretary of State is quite right to point to the role of the payment of bonuses and dividends in bringing us to this point, but he must surely acknowledge that that is far from being the whole story. There are a number of business and accounting practices in companies such as Thames Water that have brought us to the stage we are at today. If he is serious about having a water system that is fit for the future, he has to understand properly what has gone on before. Will he therefore confirm that the commission will be properly resourced with the necessary forensic accounting resource, so that those who have been responsible for the most egregious practices in the past and who now seem to be appearing in other water companies around the country will not be allowed to do the same thing there?

[Steve Reed]

I thank the Chair of the Select Committee for the points that he makes. Of course, he is right. The Water (Special Measures) Bill, with its ban on bonuses, will not be sufficient to reset the sector, although it is an ask that the public are rightly making because of the unfairness of people who are overseeing failure being richly rewarded for that failure. That should not have been allowed to go on under the previous Government, and it will not go on under this new Government.

The reason we have set up the commission is to address the very points the right hon. Gentleman makes about financial and environmental sustainability and viability. I look forward to working with him and his Committee as the commission carries out its work, as we review its findings in the summer of next year, and as we then shape what will be significant new legislation to reset the sector—a reformed sector—in a new partnership with Government to bring in the investment that will finally clean up our waterways.