Ofwat: Strategic Priorities

Charles Walker Excerpts
Thursday 9th June 2022

(2 years, 5 months ago)

Commons Chamber
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Charles Walker Portrait Sir Charles Walker (Broxbourne) (Con)
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I thank my right hon. Friend the Member for Ludlow (Philip Dunne) for everything he has done. I say that as one of his parliamentary colleagues, but also as a passionate angler for the past 51 years of my 54-year life; and the other three were wasted. I am chairman of the all-party group on angling and I am chairman-elect of the Angling Trust, a position I will take over in September this year.

I agree with my right hon. Friend: I am sick and tired of water companies, and the slurry spreaders and egg farmers, pumping sewage into our rivers and watercourses. I am familiar with the Wye valley, and I share the sense of outrage of my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) at what has happened to that river and what continues to happen to that river. Ofwat needs to get with the programme. Yes, consumers want to have water priced at a level they can afford, but consumers now also want to protect the environment that they enjoy.

There was an article in Monday’s Times which said that 98% of the swimming locations in Austria—about 50 places—are of an excellent standard and meet the highest levels of quality. We would be lucky to find one place in England where it is safe to swim; in fact, there is only one place.

Jesse Norman Portrait Jesse Norman
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My hon. Friend is so familiar with Herefordshire and the angling there that he needs no encouragement from me, but may I remind him that part of the problem with the Wye is that it crosses the border so there is an impunity in that Wales can avoid having regulatory involvement and leave the muck to come down to Herefordshire? Does my hon. Friend agree that an all-river strategy with some commissioners, as there have been since the 18th century on the Tweed, might be a solution to the problem?

Charles Walker Portrait Sir Charles Walker
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My right hon. Friend demonstrates huge knowledge because the Tweed does indeed have commissioners and that works. The Tweed has its own problems but they are not on the same scale as those of the Wye and our right hon. Friend the Secretary of State for Wales is currently talking to the Angling Trust and will be working with the Welsh Government to try to find a way forward.

You might not know this, Mr Deputy Speaker, but anglers are the canaries in the coalmine; they are the first to raise the alarm when there is a pollution incident. In 1948 the Anglers’ Cooperative Association was established, by a visionary called John Eastwood, to take legal action against polluters. In 2009 it became Fish Legal, and it has some fantastic lawyers who go after the polluters, and that is what we need, because I am fed up as an angler. I am going to say something that might be out of order, and you might demand that I retract it, Mr Deputy Speaker: if any high net-worth individuals want to make a contribution to cleaning up our rivers and streams, they should visit the Fish Legal website and see how they can make a donation to fund its legal work, because it does go after the polluters and it does win judgments, and those judgments go back to the angling clubs and watercourses that have been polluted.

Of course we should have a rivers restoration fund; that is what we need. It is outrageous that when a water company is fined £120 million an almost meaningless reduction is made to people’s bills—one that they would not notice—with the balance of the money invariably going back to the Treasury, as my right hon. Friend the Member for Hereford and South Herefordshire pointed out. We should use that money to clean up the rivers and watercourses that have been damaged by the pollution.

I have little more to add to this debate. I just want to say that the patience of colleagues here and of the constituents we represent has been stretched to breaking point. The Government have made progress but something needs to happen. We must go after the polluters, be they farmers or water companies; Ofwat has to get with the programme and we have to persuade them, by law through the courts through fines, to change their practices.

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Ruth Cadbury Portrait Ruth Cadbury
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The hon. Gentleman has made an important point. I shall say more about resident engagement shortly.

To be fair to Thames Water, it has made efforts to deal with the smell and the mosquitoes. It is currently working through a programme of upgrading parts of the works, which should reduce some of the smells, and it has contracted specialists to keep the mosquitoes at bay. Neither nuisance is as bad as it has been during the time I have represented those residents. Nevertheless, councillors, residents’ representatives and I feel that we have to keep up the pressure through the Mogden residents liaison group that Thames Water convenes.

Other issues, apart from Mogden, have affected my constituents. There has been localised flooding: dirty water has shot out of toilets or out of inspection covers in their gardens. In some cases Thames Water have acted quickly and responsibly, but that has not always been the case. Residents have been passed from pillar to post when trying to obtain help and support, and an acknowledgement from Thames Water.

This takes us back to the wider issue of the culture of these privatised water companies. Billions of pounds are being paid out in dividends, but I wonder whether we are seeing the investment in crucial infrastructure that is so badly needed. Between the 1990s and the 2020s, Thames Water has seen a £6 million decrease in annual investment in waste water. That underinvestment is simply not fair to our constituents, who face the impact of it at first hand.

It is not just Thames Water, however. Analysis has found that the investment in waste water management has been slashed by £520 million. Like the DEFRA Committee, I was concerned to see a proposal that Ofwat should incentivise water companies to improve their environmental performance. Surely it should be doing that anyway, because it is the right thing to do.

There is a wider issue, beyond the environmental protection of our rivers. What role will Ofwat play in ensuring that new developments have the water infra- structure they need? Additionally, the Rivers Trust has raised the importance of ensuring that Ofwat plays a role in relation to climate change and net zero, as my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) also helpfully explained.

My increasing fear is that as an MP I am seeing more and more examples of various regulatory bodies—whether it is Ofwat, Ofgem or the Financial Conduct Authority—that just do not seem to be acting with the urgency needed not only to protect consumers but to tackle the big issues facing our country over the next few decades. I sometimes wonder whether it is a deliberate policy of this Government to downplay the importance of regulators. Does this stem from their libertarian wing? All of us, particularly our children, feel that the planet and ourselves and our future generations lose out when the role of regulation is downplayed.

Charles Walker Portrait Sir Charles Walker
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I hear what the hon. Lady is saying. I have a lot of respect for the Environment Agency, but I also listened closely to what her colleague the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) said. I feel that the Environment Agency does sometimes shy away from taking on the polluters and holding them to account. I hope that it will hear this debate and that when organisations or businesses are found to be polluting our rivers, they will be held to account and pay a penalty.

Ruth Cadbury Portrait Ruth Cadbury
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The hon. Member is right, and I should have included the Environment Agency in the list of regulators in my speech. As I was saying, the role of regulation is too often downplayed by this Government. Ofwat cannot and should not be a silent partner when it comes to the adequate management of sewage treatment works, the cleaning up of our rivers and waterways and the protection of residents from the after-effects of floods.

Anna Firth Portrait Anna Firth (Southend West) (Con)
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I start by welcoming the Government’s strategic policy statement for Ofwat. This is clearly an important step in the right direction. Water companies in this country desperately need to change. The current safeguards on water companies are simply not good enough. The aspect that I would like to focus on today is the real need for water companies to improve their day-to-day environmental performance and enhance water quality.

In Southend, we have seven miles of award-winning beaches. Westcliff and Chalkwell already boast blue flag, five star status and attract more than 7 million visitors every year, so having clean water off our beaches is vital for our new city to thrive and prosper. Of course, it is not just in the summer months that the water is used. It is now used all year round and we have famous groups of female swimmers such as the Bluetits Chill Swimmers.

Sadly, Anglian Water is simply not doing enough. It continues to make use of Victorian sewer systems and uses storm overflows to dump raw sewage into the estuary far too often. Last year in Southend, raw sewage was pumped into the sea 48 times for more than 251 hours. That is the equivalent of more than 10 days. That does not include the sewage dumped further upstream, which also impacts on Southend.

One storm overflow in Canvey spilled 121 times for a total of 23 days, and one in Dagenham spilled for the equivalent of an outrageous 72 days. It is shocking that 39 million tonnes of sewage are dumped into the Thames every year. That is the equivalent of 3 million London buses. This dumping of raw sewage is having a disastrous effect on our environment, with 98% of water sampled by Thames River Watch last year found to contain traces of coliform bacteria caused by the presence of faeces in the water.

For 1,000 years, Southend West has been home to a thriving fishing industry. Pumping sewage into the water could lead to E. coli in our shellfish, which would be absolutely devastating for the Southend cockle industry. I welcome the fact that the Government have placed a clear duty on water companies to progressively reduce the use and impact of storm overflows; have now asked water companies to clearly demonstrate how they are going about that; and are calling for water companies to be far more transparent in reporting when discharges do occur.

In particular, I greatly welcome the fact that, under the Environment Act, water companies will now be required to monitor the water quality both upstream and downstream of storm overflows in real time, all the time—instead of just between May and September as they do at the moment. There should, obviously, be real punishments for companies that consistently fail to monitor water quality levels or meet targets.

We must completely end the use of storm overflows in this country. The Government have set a target of zero serious pollution incidents by 2030. Any use of storm overflows leading to sewage discharge should count as a serious pollution incident. There can be no excuse for pumping raw sewage into our waterways, and any company guilty of using them in that way must face real and heavy punishments.

However, we must also tackle the root causes of sewage discharges. A good place to start would be to ban non-flushable wet wipes. These block pipes, and seriously contribute to the use of storm overflows. The Conservative Environment Network is calling for all manufacturers to be obliged to follow Water UK’s “Fine to Flush” standard for wipes, which means that they do not contain plastic and they break down quickly in our sewers.

Finally, punishments on water companies should not increase the cost to the consumer; they must fall instead on the company bosses. A good place to start would be to ban bonuses for company directors whose water companies do not meet their targets. It is not acceptable that last year, the chief executive officer of Anglian Water received an extraordinary £2,074,647 in pay and bonuses—up 62% on the previous year, despite the company’s profits falling by 2% and the outrageous levels of sewage being pumped into our waterways.

Charles Walker Portrait Sir Charles Walker
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Will my hon. Friend give way?

Anna Firth Portrait Anna Firth
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I have almost finished.

Charles Walker Portrait Sir Charles Walker
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That is fine; I will intervene now. What my hon. Friend is suggesting, I think rightly, is that those environmental targets placed on water companies should trump financial targets. If that is what she is suggesting, I think she would have the support of the House this evening.

Anna Firth Portrait Anna Firth
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Absolutely correct. I thank my hon. Friend, but I will still conclude.

In conclusion, I welcome the steps that the Government are taking to improve our waterways. It must now be the absolute priority of the water companies to put those into practice, stop pumping sewage into our rivers and permanently improve the quality of our water.

Danny Kruger Portrait Danny Kruger (Devizes) (Con)
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I pay tribute to my right hon. Friend the Member for Ludlow (Philip Dunne) for securing this debate, and for all the work that he does to champion the cause of English rivers. I do not think that anyone in our country, except possibly the Minister, has done more to preserve, enhance and defend the health of our rivers—not even the Duke of Wellington deserves our thanks in the way that my right hon. Friend does. I am pleased to have helped sponsor the debate.

I echo every point that has been made about the critical state of our rivers and the absolute imperative that we have to act, and to go further. My constituency of Devizes in Wiltshire has a number of rivers that are suffering. In particular, the Hampshire Avon site of scientific interest is suffering increasing phosphate loads every year, which is a complete disaster for the river’s health and biodiversity and for the soil, but it is also a disaster for people whose health is affected and for the wider economy because it stops development.

A brake on inappropriate development in our rural areas is a good thing in many ways, and Wiltshire Council has rightly paused development permissions periodically because it has to mitigate the phosphate pouring into our rivers, but it is harmful to getting the housing we need in our area, so we have to do something. The simple fact is that the offsetting by developers is inadequate, as they cannot possibly offset enough to cope with the phosphate loads going into the rivers.

Many hon. Members have said that investment, particularly in sewage treatment works, is essential. We have to build infrastructure that can cope. My right hon. Friend the Member for Ludlow made the point very delicately that, historically, the overriding focus of the mandate under which Ofwat operates is to bear down on the rates that people pay for their water. That focus on price is ultimately unsustainable. The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) is correct that this is not the moment to be anticipating or calling for price rises in people’s water bills. However, in the long term, my right hon. Friend the Member for Ludlow is right. I welcome the strategic policy statement that allows for investment in infrastructure that ultimately feeds through into prices. That is the only way to finance this work.

I echo my hon. Friend the Member for Broxbourne (Sir Charles Walker) in saying that, when companies are fined for sewage discharges, the money should not just go to the Treasury or to meaningless little reductions in bills. It needs to go into restoring the landscape, because the best sort of sewage treatment, as I have seen in Wiltshire, uses nature-based solutions not big concreate infrastructure. We need green and grey kit.

I have seen a project sponsored by Wessex Water, to its credit, on land owned by the Wiltshire Wildlife Trust. It is a reed bed that processes foul water, and it is very inoffensive. I would hardly call it infrastructure, because it is a field with a lot of reeds growing in it—it is a swamp. It does not smell, and it looks perfectly nice. A person walking past would hardly notice it, but the water flowing out of the reed bed and into the river on the other side is cleaner than the water flowing down the river itself. It enhances our environment when we have good nature-based infrastructure.

I end with a tribute to some people in Wiltshire who have inspired me to take up the mission of cleaning up our rivers. Anglers such as Tom Putnam, a constituent who got in touch with me, and David Bromhead are concerned about the state of the Hampshire Avon. I thank Charlotte Hitchmough, who leads Action for the River Kennet, which is an outstanding charity—I have been out planting trees and supporting its work. And I thank Gary Mantle of the Wiltshire Wildlife Trust.

This might seem a little totemic, but we have amazing volunteers on all our rivers, which is great, and we have lots of water companies, businesses, developers, councils and others. What we really need is river-based co-ordination. Rather than great national, regional or catchment-based policies, why do we not appoint some kind of river god or warden for each river? It should be a volunteer who does not work for the Government and does not necessarily have any power but who has the authority to co-ordinate the voluntary efforts along each river. People think in terms of rivers rather than counties or even water company areas. We could authorise individuals—I have some people I would nominate for the Kennet or for the two Avons—who would take that responsibility to champion the cause of the river and intermediate between power and all the other volunteers who work there locally.

I wish to end on a point I have made in speeches about rivers before. I feel a special responsibility to rivers because I represent Morgan’s Hill, a beautiful spot just north of Devizes. A drop of rain that falls on Morgan’s Hill could end up flowing out west along the Bristol Avon and into the Atlantic, south along the Hampshire Avon and into the English channel or east along the Kennet, into the Thames and out into the North sea. Morgan’s Hill is a hydrological dividing point that waters the whole of southern England, and I feel a particular responsibility to the rivers that flow out of this district of Wiltshire.

Charles Walker Portrait Sir Charles Walker
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May I say how lucky that drop of water is if it flows through the Hampshire Avon, one of the finest rivers in this country? It is a blessed drop of water.

Danny Kruger Portrait Danny Kruger
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It would be very lucky, except that it would get loaded with phosphate on the way, and that is the challenge we have to mitigate. Equally, the Kennet and Bristol Avon are glorious rivers, and we have a responsibility to try to clean them.

I really do pay tribute to the Minister for the work she does, as she is an indefatigable champion of water health and our rivers. I am also very pleased with the spirit of this debate. I pay particular tribute to the hon. Member for Plymouth, Sutton and Devonport, who could have laid into the Government, as he used to do on the Front Bench, but instead paid tribute to the Minister for her commitment on this cause. So I think we are all in the right place.