Water Companies: Executive Bonuses

Ashley Dalton Excerpts

Tuesday 5th December 2023 Commons Chamber

[Ashley Dalton (West Lancashire) (Lab)]

Despite what Conservative Members would have us believe, this Government inherited some of the cleanest rivers and waterways in Britain’s history when they came to power almost 14 years ago. [Interruption.] It is true. When Labour left office in 2010, the Environment Agency stated that our rivers were healthier than they had been at any point since the industrial revolution. Two years earlier, 80% of water quality tests in the Thames were found to be very good or good, compared with only 58% in 1990.

So what has changed? Thirteen and a half years of Tory government have polluted our coasts and our waterways, and we arrive at the appalling situation where over 800 sewage dumps are taking place across our country every single day. This is a green and pleasant land, but in the last seven years alone over 1,200 years’ worth of raw sewage has been dumped into British waters.

My constituency of West Lancashire has a proud history of growing communities, but how can the farms and nurseries of West Lancashire have any confidence in the water they use to grow the food that ends up on Britain’s plates? The growers in my constituency care about the quality of food they produce. If only they had a Government who cared about the quality of water used to produce it. Not one single river in Britain is classed as being in a healthy condition—not one.

It is not even true that the Government can be accused of inaction. It is worse than that: they have blocked amendments to the Environment Act 2021 brought forward by Labour to bring an end to sewage dumping scandals. My constituents expect bonuses to be paid only when people deliver and perform above and beyond how they are expected to. Other than the air we breathe, which is another sticky wicket for this Government but a topic for another day, is there anything more vital than water? My constituents do not expect bonuses to be awarded for polluting our rivers and seas while bosses’ and shareholders’ pockets are lined with cash.

To add insult to injury, water companies are asking customers to pay an extra £156 a year to pay for problems caused by the chronic under-investment in the network, while £14 million of bonuses were paid in just one year to the very people who have failed to maintain the system adequately. Under no circumstances is that acceptable.

Ofwat must have the power to ban the payment of bonuses to water bosses who allow significant levels of raw sewage to be pumped into our precious rivers, lakes and seas. If that had been in place over the last year, six out of nine water bosses’ bonuses would have been blocked. They were not.

Labour will put the water industry into special measures and ensure change. We will end the farce of companies self-monitoring and require all companies to monitor all—all—water outlets. Water bosses that persistently allow their companies to break the law on sewage dumping will face personal criminal responsibility.

The current system for imposing fines simply is not working. Long drawn-out, expensive court cases are no credible deterrent for water companies and the Government know it, so Labour will introduce severe and automatic fines for illegal discharges. My constituents have a right to expect to be able to enjoy our rivers and coasts without fear of contamination from raw sewage—and they have a right to expect water polluters not only to pay the price where contamination does occur, but not to be rewarded for allowing it to happen. Labour’s plans will shift the burden on to the water companies, rather than expecting the British public to carry the can.

Under the Government’s plans, the Tory sewage scandal will continue for decades to come, but the next Labour Government will build a better Britain, where water bosses are held accountable for their negligence and the British public can have confidence that our waterways are clean and safe to enjoy.