Water (Special Measures) Bill [HL]

Baroness Parminter Excerpts

2nd reading
Wednesday 9th October 2024 Lords Chamber

[Baroness Parminter (LD)]

My Lords, yesterday we learned that water companies failed, for the fourth year in a row, to meet critical pollution reduction targets and that last year over 3 million hours-worth of sewage was flowing through our waterways in England. And yet, like the noble Duke, the Duke of Westminster—

[Noble Lords]

Wellington.

[Baroness Parminter (LD)]

I heard on Radio 4’s “Today” programme that the response from the regulator was that what was needed was a change in culture. Now, putting aside that it seemed strange that the regulator would say culture change was the answer, the issue is that these companies have had the chance over decades to show that they can change, and they have not. Now is the time for the Government to intervene.

Like others, I welcome the strong manifesto commitment by the new Labour Government to clean up our waters, rivers and beaches, and I welcome this first step. It is not going to do it on its own, as indeed the Minister said in her opening remarks, but it is a welcome first step which will do something to help regulate these failing companies and extend the remit of this sadly ineffective regulator. At the same time, it will hopefully allow the Government to undertake a broader review where they can identify a way forward for this broken model of managing our precious water resources.

The special measures Bill is welcome, but there are a number of areas I would like to see strengthened. I find it very concerning that there is not a public interest remit for the regulator Ofwat. I think the general public would find it very surprising that the regulator for our water companies does not have any need to look at issues of ensuring clean water or improving the environment. However, it does have binding, legal duties to improve the economic performance of companies. Over time, this has allowed them to sweat assets and put profit before public interest. That must change. Again, as the noble Duke, the Duke of Westminster—

[Noble Lords]

Wellington.

[Baroness Parminter (LD)]

I am so sorry: the noble Duke, the Duke of Wellington—it is not easy to muddle the two, so apologies for that. He rightly made the point that this situation was actually made worse by the last Government when they introduced the legislation that made Ofwat have regard to the desirability of promoting economic growth when it was undertaking its duties. We have to redress that balance. Of course, water companies have to make a profit—we cannot have companies that do not make profits; they would not be in existence—but there is an imbalance between focusing on the bottom line and ensuring that public interest in our water is delivered by these companies. That must be redressed. The special measures Bill, by changing the remit of Ofwat remit to have a public interest duty, is a way to do that.

I very much welcome, in a spirit of hope rather than expectation, the pollution incident reduction plans that will do what they can to ensure that we see less pollution in our rivers and waters in the future. Like other colleagues, I feel very strongly that it should be a duty not just to produce and publish them; there must also be a duty to implement them. It must also be a duty on all water companies, both straight water companies and water sewerage companies. We would like to see some amendments on that.

We need to make sure that those pollution incident reduction plans do not just end up being stuffed full of the cheapest and quickest options to tackle combined sewer overflows. If we allow that, all we will end up with is downstream proposals for end-of-pipe storage, such as concrete storm tanks, at water recovery centres, rather than looking upstream to find sustainable—admittedly more expensive—options that will deliver sustainable drainage and other nature-based solutions. These will not only deal with the combined sewer overflows but will offer other benefits to society more broadly, in terms of flood alleviation and liveability for communities, if we are talking about sustainable urban drainage systems, for example.

So I hope that, in Committee, we will have the chance to ensure that those pollution incident reduction plans are not just stuffed with the quickest and the cheapest but actually move companies towards looking towards the sustainable and the best.

Like other noble Lords, including the noble Earl, Lord Russell, who spoke so well earlier, I want to add my voice to say that I hope that, in summing up, the Minister today will be able to say a bit more about the review on which we are all pinning such high hopes. Like others, I would very much like to see a very clear and firm look taken at the operating and financing models of companies. My party has long and strongly argued for social and environmental purposes to be incorporated in water company corporate articles of association. I very much hope to see that sort of aspect looked at.

We need to make sure that all areas across government are included, because there are so many areas which impinge on how we manage our water, including talking about planning rules for new homes and the right to connect for developers, or incentivising sustainable agriculture so that we help farmers to do what we need them to do and not contribute to some of the run-off that the noble Lord, Lord Lipsey spoke so powerfully about, and really starting to prioritise catchment-scale planning for water. We need to look at all the areas in that review and ensure that we have an enforcement regime that is worthy of the name. Without that, it is not worth the paper it is written on.

I will add one thing that no other Member has yet mentioned this afternoon. I hope that the review will look at the role of consumers, of us as individuals, in paying for all the new infrastructure that will be required to deliver the water services we want and need and also at our responsibility to save water, which for too long has not been articulated strongly enough. I remember that 10 years ago, during the passage of what became the Water Act 2014, I made the case for compulsory water metering and better standards for installations in homes. The case for compulsory water metering with social tariffs has not gone away; it is still here. However, I hope that the Government will at least look at the role of what consumers are expected to do and pay for in this whole review, because they must be an integral part.

I was very pleased to hear the Minister say that there will be public consultation on this, because it is our water system. It is a problem that all of us know about, wherever we live, whether it is on the Wye or me by the River Wey in Surrey. We have all had our water stopped and have all seen slurry in the rivers. All of us have a say in this and the public will want us to do the best we can to help the Government make this special measures Bill and the review what they need to be.