Ofwat: Strategic Priorities

Debate between Charles Walker and Ruth Cadbury

Thursday 9th June 2022 Commons Chamber

[Ruth Cadbury]

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.

[Sir Charles Walker]

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]

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.