Water (Special Measures) Bill [ Lords ] (First sitting)

Andrew Pakes Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[Charlie Maynard]

Perhaps, since I am standing, I will make the other two points I want to make.

We have touched on Government amendment 2 already, but I think it is important. I was very pleased to see the wording coming in about bonuses. Proposed new section 35B(3) of the Water Industry Act 1991 says:

“Rules made for the purposes of imposing the prohibition mentioned in subsection (2)(a) (“the pay prohibition”)”.

That is the ban on bonuses. While the explanatory statement says that it is to prevent the need for a statutory instrument—which the Liberal Democrats support and seek to do in further amendments—the impact of the Government’s change is also to remove the requirement for the rules to be published by Ofwat within six months. That we find very odd.

I take it in good faith that the Government are keen to have the measures implemented, so we do not understand why they would take the timeline out. The Government want to ensure that it happens, but as currently stated, they are removing the timeline. Taking it on good faith that Ofwat will publish the rules is less strong than keeping in that commitment to six months.

I will correct the hon. Member for Epping Forest on our amendment 21. Our amendment relates to the same aspect of the Bill as Government amendment 2. However, we want to retain the need for Ofwat to publish the rules on bonuses within six months but remove the option for that to be kicked into the long grass by requiring the Secretary of State to lay a statutory instrument to bring them into effect. By taking out that provision, we remove that risk. That is the purpose.

[Andrew Pakes (Peterborough) (Lab)]

As a new Member, it is a privilege to serve on a Bill Committee under your chairmanship, Mr Vickers—I hope I will get all of it right. I felt particularly moved to speak on these amendments and clause 1, given some of the earlier comments. I was a bit worried that we had been transported by the Opposition back to a previous Conservative age, because we seem to be being told that water customers have never had it so good—as one of their predecessors said—because of all the action that was taken.

There has been a lot of talk about teeth. I ask the Minister to confirm that the Bill is about the dentistry that is needed to put more teeth into the water sector. When she responds, will she identify whether the clauses that the Government have tabled help to address some of the very real anger that my constituents feel about the way they have been ghosted and treated by the big water companies and the behaviour of some of the senior leadership? Representing a seat with Anglian Water, which I think applies to some other Members present, I place it on the record that there is real frustration at the performance and actions of such a large company when at the same time as more than 3,000 hours of sewage were being dumped into rivers around my area, the fens and John Clare county, we saw the Anglian Water chief executive receiving £1.3 million in a package of pay and bonuses, despite that poor performance. The anger and the desire and drive of this Government, but also the public, to see action is palpable, so I very much welcome the Bill and I seek clarity on that. It is absolutely right, as the Government have outlined, that we have a fast Bill to get these teeth and this emergency dental treatment delivered quickly, so that we can come back and put the braces on for the rest of the water sector—[Laughter.] I think I am running out of places where that analogy can go; it is getting very dangerous.

When we get the Cunliffe report and others, we will look at some of the bigger issues for the water sector, but I am very concerned by that £1.3 million. I serve as a member of the Environment, Food and Rural Affairs Committee and I share the concerns expressed by my hon. Friend the Member for Hastings and Rye that when we directly asked Ofwat whether it had the dental tools to challenge and put the surgery on to the water companies, Ofwat was very clear that it did not. I specifically asked the chief executive and leadership of Ofwat about another bête noire of the debate, which is Thames Water. Up until March 2024, in those three months, the chief executive gave themself a £195,000 bonus. Since 2020, we have seen £41 million given to water company chief executives in bonuses and incentives, so can the Minister reassure this Committee that the clauses that the Government have put forward will help to restore trust and put in place initial measures so that we can get on with this, end the delay, take action and start to put right the problems that the Government have inherited, and then look at the wider issues when we get the report later in the year?

Water (Special Measures) Bill [Lords]

Andrew Pakes Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[Andrew Pakes (Peterborough) (Lab)]

Phew! Thank you, Madam Deputy Speaker. [Laughter.] I am privileged to speak on Second Reading of a Bill that is of huge interest to my constituents and the country. After 14 years, the new Government have inherited record levels of illegal sewage dumping in our rivers, lakes and seas, an Environment Agency budget halved since 2010, crumbling infrastructure, with bursting pipes and record spills, and unaccountable water companies.

It is time to change that. It is time to hold our water companies to account and to start fixing the problem. That is why this Government have made the Water (Special Measures) Bill a priority. We need immediate action to end the disgraceful behaviour of water companies and their unruly bosses. We had more than 3,000 hours of sewage poured into our rivers in my constituency alone last year. A lot of sewage came out of the last Government, but certainly not the sewage we are talking about tonight.

After our sewage discharges, Anglian Water, which I know is many Members’ provider, belatedly had to pay £38 million to Ofwat. The year before, Anglian Water’s chief executive received a £1.3 million package in pay and bonuses, despite the company’s poor performance. Despite overseeing the catastrophic failure, water chief executives have paid themselves more than £41 million in bonuses and incentives since 2010. It gets worse: Thames Water’s boss took a £195,000 bonus at the end of March for just three months’ work. That is the unacceptable face of unaccountable privatisation.

Little wonder, then, that constituents writing to me are angry and that people have so little faith in the power of accountability and regulation, when so little was done by the last Government. I asked Ofwat these questions directly when it appeared before the Environment, Food and Rural Affairs Committee recently. The answers were wanting. That is why the Bill is so needed, and why Ministers have brought it forward so quickly. It sets out new powers to make water companies accountable, to ban bonuses for CEOs and senior leaders unless high standards are met, and criminal liability for water executives, and it sets out a new approach to ensuring that water companies live up to their environmental obligations and serve the public good. I want to put on record my thanks to those public servants who have been fighting hard against the water companies, despite the cuts of the last decade: those in the Environment Agency, the public servants in our water utilities, and members of GMB, Unison and Prospect who know what looking after our water and nature is really about.

The Bill treads where the last Government failed to go. Let us be clear about the Conservatives’ legacy: they failed to invest in broken infrastructure and let consumer money be spent irresponsibly on bonuses and shareholder payouts. The Bill rightly calls time on that unruly behaviour. It begins to restore trust in the management of our waterways and in public service and accountable regulation. I commend the Bill.

Oral Answers to Questions

Andrew Pakes Excerpts

Thursday 14th November 2024 Commons Chamber

[Dr Allison Gardner (Stoke-on-Trent South) (Lab)]

4. What progress the floods resilience taskforce has made on protecting at-risk communities from flooding.

[Andrew Pakes (Peterborough) (Lab)]

14. What progress the floods resilience taskforce has made on protecting at-risk communities from flooding.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

I am sure the whole House will join me in expressing sympathy with the communities of the Valencia region and across Spain following the dreadful flooding.

This Government’s floods resilience taskforce marks a new approach by national, regional and local government, and by flood risk partners, to better co-ordinate flood preparedness. It met on 12 September, with 40 attendees from 27 organisations agreeing actions including sharing learning from recent floods. This Government will invest £2.4 billion over the next two years to improve flood resilience by maintaining, repairing and building flood defences. Yesterday, at the Association of Drainage Authorities conference, I announced that we will allocate a further £50 million to the internal drainage boards.

[Emma Hardy]

I was delighted to hear that the village is proactively setting up a flood action group. Of course, I appreciate the wonderful work that my hon. Friend is doing to support the village. The Government fully support collaboration between risk management authorities, including local Environment Agency teams and local communities, and we are committed to hearing from people on the ground via the new taskforce. Of course, I would be happy to meet them.

[Andrew Pakes]

I welcome my hon. Friend’s answer. We talk a lot in this House about extreme weather and flooding, but we do not talk enough about the vital role that our internal drainage boards play in protecting and keeping safe our agricultural land and farming. I welcome the Government’s inclusion of the internal drainage boards on the taskforce, and I welcome the money that the Minister put into the system yesterday. That is in stark contrast with the first actions of the 2010 Conservative Government, who cut flood defences by a horrifying 27%.

Will the Minister join me in congratulating the work of my internal drainage board and outline how she will work with it in future?

[Emma Hardy]

I was delighted to speak at the Association of Drainage Authorities conference yesterday, to champion its work and to announce that, after listening to it very carefully, we will provide £50 million over two years—[Interruption.] In answer to the chuntering, the first part has already been spent.

Budget: Implications for Farming Communities

Andrew Pakes Excerpts

Monday 4th November 2024 Commons Chamber

[Daniel Zeichner]

The hon. Gentleman is a well-informed, thoughtful person, and I listen closely to what he has to say on these issues, but I do wonder sometimes about the Liberal Democrats’ approach to economics, because that £1 billion would have to come from somewhere. I am afraid that the difference between Labour and the Opposition side of the House is that we are determined to get the public finances in order, because it is upon that basis that future prosperity in the farming sector will come.

In terms of farm incomes, the hon. Gentleman is absolutely right that many farms are very marginal. We know that, and it is complicated, but I would say to everyone in this House that the entire inheritance tax system is complicated; I must say I have read a lot over the weekend that was perhaps a little short on accuracy. He is also right about tenant farmers, and we are in close conversation with the Tenant Farmers Association about how the changes can perhaps be used to good effect, because another element which has not been raised so far, interestingly, by the Conservative party is the generational challenge we face in farming. I will not be telling farmers how to run their lives, but it is worth reflecting on the fact that sometimes it is difficult to make that transition and we need to get more younger people into farming.

[Andrew Pakes (Peterborough) (Lab)]

I put on record that I am an officer of the all-party parliamentary group on farming. I also put on record my thanks to farmers who, through a torrid decade, have produced food and sustenance for us in this country. We should all recognise that. Farmers will rightly be anxious after the experiences they have had in the past few years. Does my hon. Friend the Minister agree that that anxiety will only be heightened by the scaremongering from some Members of this House, and will he commit to working with hon. Members, the National Farmers Union and farmers to ensure that the positive elements around food security in this Budget are delivered in the years to come?

[Daniel Zeichner]

My hon. Friend and near neighbour is right to pay tribute to our food producers. One thing we know for sure is that we are going to need food into the future, and farmers are essential to the future of this nation and our economy. That is why we will treat them with the utmost respect and seriousness and have a serious debate about how we transform farming. Again, while this has not been picked up much in the debate so far, the effect of this Budget is to speed up still further that transition to an environmentally friendly, nature-friendly way of farming, alongside producing the food that our country needs. That is a really important transition—I pay tribute to the current Opposition, who started that process in government, but I have been unwavering in my support for it for a number of years and I am determined to see it through to a proper conclusion. My hon. Friend is also right that we will work with everyone involved to get good, sensible outcomes, because that is what this Government are about.

Farming and Food Security

Andrew Pakes Excerpts

Tuesday 8th October 2024 Commons Chamber

[Mike Reader]

It is very clear that Labour is on the side of our farming and agricultural sector. I stand here as the hopeful chair of the all-party parliamentary group for food. I am sure that those who are concerned about food security will join us at our inaugural general meeting very shortly. I am also a member of the NFU’s food and farming fellowship. It is clear that Labour Members take this issue seriously, and we are dedicating time to ensure that, unlike the previous Government, we work with farmers, not against them.

We are also working across industry. The motion focuses solely on farming, but in order to deliver food security, there must be a cross-sector approach, as I am sure everyone in the House recognises. The approach should include food manufacturing, logistics, retail and the hospitality chain. The whole agrifood ecosystem delivers a gross value added of £147 billion to our economy, including £15 billion through our farming sector, and a whopping £70 billion through our manufacturing, distribution and wholesale sector in food and retail. We want to improve food security in the UK, which is already classified as “broadly stable” by DEFRA.

[Andrew Pakes (Peterborough) (Lab)]

On the issue of stability, I remind my hon. Friend of the opening lines of Labour’s 2010 food and farming strategy:

“We can’t carry on just as we are.”

Farmers I have met in my constituency would make exactly the same claim now, given the record of the last Conservative Government, who scrapped Labour’s food plan in 2010. Does he agree that if we are to invest in food and farming, and to bring jobs and prosperity to rural and urban constituencies, we must back Labour’s new deal for farmers, invest in food and farming jobs, and put a real plan for food security back on the table?

[Mike Reader]

I could not agree more, and could not have said it better myself. However, a holistic approach must be taken across the whole ecosystem to subsidies, funding and investment.

One reason why I chose to speak today is that food security is important to me and my constituents. A recent study found that nearly 10% of people in Northampton struggle to access food, and that gets worse in rural Northamptonshire, as I am sure my constituency neighbour, the hon. Member for South Northamptonshire (Sarah Bool), recognises. Northamptonshire Action with Communities in Rural England found that 45% of residents in rural Northamptonshire worried about food prices, and in 22% of families with children, adults missed meals in order to feed their kids. That is simply not good enough.

I commend the Opposition for supporting the Government’s efforts to improve food security, but the motion is not the way to do that. We must work together, collaboratively and across parties, to support the agrifood industry, and I hope that the Opposition will endeavour to do so after their motion is defeated.