Water Industry

Bill Esterson Excerpts

Tuesday 5th November 2013 Commons Chamber

[Charlie Elphicke]

My hon. Friend makes an important point, but I will leave it to my hon. Friend the Member for South Swindon, who has been studying those issues with considerable care and concern.

Secondly, there is the question of how we tackle tax avoidance. The unacceptable, even antisocial, tax avoidance culture in the water industry has meant that many companies have not paid tax for years. It is wrong that that situation has arisen. Everyone should pay their fair share. We need sustainable debt, not 100% mortgages. Under the previous settlement, these water companies have been allowed to become casinos. We have an opportunity to look carefully at that to see whether the position is safe, secure and sustainable for the future.

[Bill Esterson (Sefton Central) (Lab)]

I am glad that the hon. Gentleman has pointed out some of the problems in the industry and with the behaviour of the water companies. All of the companies working on an industrial estate in Formby in my constituency have been overcharged for years and the water company has been allowed to get away with not repaying them because of the way in which the regulations are set up. Does the hon. Gentleman agree that that is the type of unacceptable practice that needs to be tackled?

[Charlie Elphicke]

Clearly, the billing system needs to be fair.

The issue about debt is that water companies are often leveraged to 100% and then say that they cannot fund infrastructure improvements. Many colleagues have concerns about the Thames tideway tunnel and how that is financed. I am sure that will be explored in due course.

We also need more appropriate investment. If real investment falls, where is the justification to increase bills? We need to ensure that real investment does not fall, that we maintain the investment we need and that it is funded in an appropriate way.