Water (Special Measures) Bill [Lords]

Caroline Voaden Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[Ellie Chowns (North Herefordshire) (Green)]

I declare an interest as a founding co-chair of the all-party parliamentary group on water pollution. As the Minister well knows, I have a deep and abiding interest in the theme of water pollution. I gently remind her that agricultural run-off is the primary source of water pollution in my constituency, and I welcome the constructive conversations we had on that topic last week. Today, I will talk about the broader topic of the Bill.

Water companies have extracted £85 billion of value from our water industry since privatisation—that is an extraordinary figure—and their flagrant abuse of our rivers, seas and lakes is a stain on our country, literally as well as figuratively. Some 30% of all water bills now go on debt servicing and dividends, and this is money that should be going towards maintaining and improving our water infrastructure and services. Thames Water, Southern Water and South East Water have all had their credit ratings downgraded, meaning that about a third of bill payers in England and Wales are now paying their bills to junk-rated companies, which again is extraordinary. As companies’ finances get worse, new debt gets more expensive to service, and where does the money come from? The money comes from bill payers.

It is clear for all to see that the interests of water company shareholders and the interests of the public are at odds. It is not possible to use our water as a vehicle for maximum short-term profit and at the same time to deliver safe, reliable, affordable drinking water and a clean environment. One comes at the expense of the other.

[Caroline Voaden (South Devon) (LD)]

Will the hon. Member give way?

[Ellie Chowns]

I am really sorry, but I will not give way because I know so many Members want to come in.

In my view and that of my Green colleagues, the only way to run a water system in the interests of people and nature is to take away the profit motive entirely. It should never have been allowed near our water industry in the first place. Any steps to end this culture of impunity in the water industry are very welcome. Unfortunately, the measures in this Bill are, in my view, largely to look nice in headlines, and they are maybe a bit of an attempt to look busy. I say that gently, but I do think we need to go further. In fact, the majority of the British public agree with me: 82% of the British public believe that we should have water in public ownership. I challenge the Government to take up that mantle—that mandate—from the British public to do the right thing, and to take the profit motive out of water entirely.

I always believe in talking about areas of common ground, and I recognise that multiple elements of this Bill are positive steps. I will, with my colleagues, be supporting it. I welcome the extension of monitoring requirements for sewage overflows, and I welcome the requirement for more customer involvement in decision making, which I would like to see extended to worker representation as well. I welcome the encouragement for companies to consider much more use of nature-based solutions, and I would love to see this extended even further.

To be honest, however, what we have seen with the financial mess that the companies are in is the complete failure of the model of privatisation. We need to do more than just tinkering at the edges. The Government’s water commission will not even be allowed to consider the question of public ownership, so it will hunt high and low for solutions while continuing to kick the can down the road. Is it not time that the Minister faced the reality that profit in water has failed, and to do what the majority of the British public want, which is to bring our water and sewage utilities back into public ownership?

--- Later in debate ---

[David Reed (Exmouth and Exeter East) (Con)]

I thank the Government for introducing this Bill and the Minister for Water for meeting me last week.

This is a vital issue, not least for my constituents in Exmouth and Exeter East. Across my constituency, from Cranbrook to Exmouth, we have felt the full force of South West Water’s neglectful and harmful behaviours. This year across the county of Devon, we have experienced the full gamut of the damaging effects of a water company that is crying out to be reformed, be it by legal or regulatory tightening. From cryptosporidium parasite outbreaks in the Brixham area to the closure of beaches in Exmouth, our county has had enough. Our local wellbeing, health and economy have been significantly impacted, and our beautiful home is starting to gain a national reputation for all the wrong reasons.

We have a responsibility to ensure that the Bill is as effective and strong as it can possibly be, and that means listening carefully to voices from all parts of the House. Most Members will be familiar with the long history of this issue, so I will not relitigate arguments that have been made already, but it is important to reiterate that this is not a problem that has emerged overnight. We have collectively dropped the ball on this issue—from the last Labour Government under Blair and Brown to the Lib Dem-Conservative coalition and the last Governments, we are all in part complicit—[Interruption.] I think that is a very fair point. This has happened over many decades, and I would very much like to reiterate that point to Labour Members.

Although it is absolutely right that we strive to end the unacceptable practice of sewage discharges, we must confront the hard truth that we cannot transform these crumbling systems overnight without disastrous consequences, such as sewage backing up into people’s homes, on to our streets and into our communities. That is why we must commit ourselves to the long haul. This will require sustained investment, careful planning and clear accountability, not short-term fixes or political point scoring.

[Caroline Voaden]

The hon. Member mentioned the cryptosporidium incident in May in Brixham in my constituency, where 17,000 houses were affected by contaminated water. A boil water notice was enforced for eight weeks, and many of my constituents are still suffering from that. I say to the Minister that, when the Drinking Water Inspectorate reports next year, I hope the water company will be forced to pay proper compensation, because it would appear that its negligence and not maintaining its facilities over the past decades was possibly one of the causes of the contamination.

[David Reed]

I thank the hon. Member for raising those points; this issue has affected our county, and I hope that members of the Environment, Food and Rural Affairs Committee raise it as fast as possible, to ensure that South West Water is held accountable and placed in front of them to answer questions about how that outbreak happened. I reiterate that our constituents deserve a solution that is ambitious but achievable. It was under the previous Government that the scale of the issue was truly identified—a point that has been raised repeatedly this evening.