(3 weeks, 4 days ago)
Commons ChamberI will lay out some of my suggestions for water company reform shortly, so I will not give away any spoilers just yet.
It is well known that one of the biggest reasons for sewage dumping is that there is not enough capacity in our storm overflow tanks to hold rainwater. To make sufficient capacity, those tanks are routinely emptied and raw sewage is pumped into our waterways. Soon after my election, I was faced with reports of brown water coming out of residents’ taps in St Eval and, in some cases, no water at all. It turned out that the reservoir tank at the nearby Bears Down reservoir had serious cracks in it, and water tankers were deployed to serve the area. The capacity of the tankers was nowhere near sufficient, and a measly compensation of £50 per household was issued after weeks of severe disruption.
Similarly, in Week St Mary, residents complained to me about problems with their water pressure, which have persisted for years. In some cases, the sudden drop in pressure caused scolding from the resulting hot water. It is quite clear that those issues have arisen after decades of under-investment in our water and wastewater infrastructure. We may reasonably ask, “Where has Ofwat, the water regulator, been while all of this has been going on?” Ofwat has seemingly been missing in action, which brings me to the urgent need for a regulation revolution in our water industry.
I welcome the Government’s plan—part of the Water (Special Measures) Bill—to prohibit performance-related pay for senior officials in a year when a water company fails to meet its environmental, consumer or financial standards. I eagerly await how those standards will be more tightly defined. I am more suspicious, however, about the proposal to require each water company to publish an annual plan detailing how it will reduce pollution incidents. Many water companies already do that, and my constituents want to know how those companies with their glossy brochures and ambitious targets will be held to account.
There was a palpable sense of relief among senior executives at South West Water when I met them soon after the details of the Bill were published. On enforcement measures, if the water companies fail to meet improvement targets, Ofwat will be given the power to issue fines. It is questionable whether fines will incentivise firms that are making hundreds of millions of pounds and, again, I look forward to seeing at what level the penalties will be set following the consultation.
My hon. Friend is making an excellent case. Certainly in my own constituency, further west than his own, in west Cornwall and the Isles of Scilly, there have been 18 discharges around the coast just in the past 10 days. On the proposed changes in the Government consultation, as attractive as the concept of bringing water back into public ownership is—and I strongly support it—the consequences and costs make it rather challenging. The Conservatives set up the companies as risk-free, money-making emporiums. Does he agree that we need to bring in regulation that ensures they are governed in the public interest?
My hon. Friend makes a good point, and I will outline some of the measures I will put to the Minister.
I urge the Government to go much further by scrapping Ofwat, which has proven itself to be toothless and missing in action. The Liberal Democrats would replace Ofwat with a much more powerful clean water authority, which could ban bonuses for water company bosses who fail to stop sewage dumping, revoke licences of poorly performing water companies immediately, force water firms to publish the full volume and scale of their sewage dumping, mandate local environmental experts to sit on water company boards, and set legally binding targets on sewage discharges.