Water Bill

Caroline Lucas Excerpts

Monday 25th November 2013 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Mr Owen Paterson)]

I beg to move, That the Bill be now read a Second time.

I am delighted to present a Bill that reflects my twin priorities of growing the economy and improving the environment. The Bill will promote growth for the long term, improve the resilience of our water supplies and the environment and increase choice for customers. Our White Paper on water sets out a vision for the future of the water sector. We need continued investment in our water and sewerage systems. We need investment in storing water and moving it to where it is needed; investment in maintaining our sewerage network and improving drainage, including through sustainable drainage options; investment that will protect our rivers through improvements to water quality; action to address over-abstraction; and investment in greater water efficiency.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Given that the Secretary of State says that it is designed to protect the environment, will he agree to amend the Bill to require fracking companies to have a full liability guarantee to cover a range of eventualities before an environmental permit is allocated? He will know that even if liability is proven, if the companies go bust the costs will still be passed on to the taxpayer, or to the water companies, which in turn will pass them on to the customer.

[Mr Paterson]

On the issue of fracking, I have made it absolutely clear that we will in no way dilute or diminish any of the existing regulations relating to the extraction of hydrocarbons from underground. A whole framework of different regulations is already laid down by European legislation, and we intend to respect them, but there is great merit in developing fracking, as we have seen in the dramatic reduction in gas prices in the States, with huge benefit to the US economy. We think we will see similar merits in our economy.

--- Later in debate ---

[Maria Eagle]

I will not give way until I have finished answering the point the right hon. Gentleman has already made. Even if we get to such a point, there will be a significant period in which householders are subject to a monopoly. He must ensure that Ofwat has the relevant powers.

During our exchanges in the House in questions to the Department for Environment, Food and Rural Affairs last Thursday, I asked the right hon. Gentleman what steps he had taken between meeting the water companies in July, which he referred to in his letter, and his follow-up letter to them this month. He was not able to list a single action because the truth is that he did nothing for four months until he began acting under orders from No. 10. That was after the Prime Minister decided that he had no choice but to appear interested in the issue, following an intervention from the Leader of the Opposition.

The right hon. Gentleman made it clear in his letter to the water companies that he favours a voluntary approach, with companies deciding for themselves if and how to help those who are struggling. He does not propose any new powers to widen Ofwat’s scope to reopen pricing settlements between reviews, yet while customers pay among the highest bills in Europe, water companies are doing well from their monopoly position.

Last year, regional water companies made £1.9 billion in pre-tax profits, but paid out a staggering £1.8 billion to shareholders. We know they do that and that it is achieved through financial engineering designed to maximise their debt and minimise tax liabilities. That is unacceptable and morally wrong when people are struggling, and I believe people across the country will agree.

[Caroline Lucas]

With 40% of low-income households paying some of the highest bills, and three-quarters of our rivers being degraded through abstraction, does the hon. Lady agree that a privatised monopoly industry is failing our environment and consumers? Does she also agree that we need to move the Bill towards greater public ownership and public control of our water resources?

[Maria Eagle]

I have some sympathy with the first part of the hon. Lady’s intervention, but perhaps less so in practical terms with her latter point.