Water Bill

Debate between Chris Hinchliff and Clive Lewis

2nd reading
Friday 28th March 2025 Commons Chamber

[Chris Hinchliff (North East Hertfordshire) (Lab)]

I congratulate my hon. Friend the Member for Norwich South (Clive Lewis) on introducing a Bill that directly addresses one of the most strongly felt public sentiments in my constituency and across the country. The work he has done on this Bill, with Unison and others, deserves great respect.

I support many of the measures that the Government have swiftly taken to address the failures in our water system since taking power. Blocking bonuses for bosses of polluting water companies to end the absurd financial rewards for the destruction of our natural heritage, and ringfencing billpayers’ money for long overdue improvements to infrastructure are positive steps in the right direction.

[Clive Lewis]

Does my hon. Friend agree that the Government’s Water (Special Measures) Act 2025 could have instructed Ofwat to take a far more rigorous approach to the payment of bonuses? At the moment, bosses do not get their bonus if they have a one-star rating. In the last 15 years, every single water company, except one, has had more than a one-star rating, hence they have been able to pay bonuses. Does my hon. Friend think that could have been tightened up?

[Chris Hinchliff]

The Minister is shaking her head, but I agree that it is difficult to see how any boss could qualify for a bonus in the current system.

I would be failing to adequately represent the constituents of North East Hertfordshire if I did not make it clear that they have no faith whatsoever that private water companies, after years of disgraceful neglect, can now be trusted to restore the health of our rivers. The residents who sent me to this place are rightly furious at being asked to pay more to make good the malpractice from which water companies have been profiting.

The public do not want to pay towards rescuing discredited corporations that have spent decades extracting wealth from our countryside and polluting our rivers to the detriment of wildlife, the pleasures of wild swimming, and any ordinary citizen who cares about the natural world. No doubt, some of the activities and profits of these companies have been included in the calculations of our nation’s GDP. Nothing could demonstrate more clearly that, so often, what passes for valuable economic activity in this country in reality inflicts enormous costs on the public, while threatening the very environment that underpins true prosperity and wellbeing for all.

Frankly, it is difficult to disagree with my constituents when they say that, given the damage done by water companies to our rivers through a combination of over-abstraction and pollution, Ofwat is wrong to allow them to charge so much as an extra penny on bills, never mind the staggering 31% increase granted to Thames Water. The residents contacting me about this issue have repeatedly called for water companies to pay for the damage they have done. They say that if the water companies cannot afford to do so without going bankrupt, then let them. And should nationalisation be required as a result, then let Parliament set the appropriate level of compensation for shareholders, netting off not just company debt, but all the dividends shelled out while our rivers and streams have choked with pollution.

I recognise that Parliament is not yet ready to accept the radicalism of the wider public on this issue, but this Bill offers a clear and pragmatic solution both to restoring democratic faith in the management of our water system, and to ensuring that it puts people and nature before profit. The whole saga we have witnessed in our water system means that we can now say, in all candour, that the capitalism of Adam Smith, in which the aggregate of self-interested economic decisions produces the collective good, in so far as it ever did exist, is now just a folk story told to justify the actions of the richest members of our society.

When it comes to our water system, the free market is a myth, and pretending it exists has only served to inject more pollution into our environment and inequality into our economy, as has happened on almost every occasion on which we have privatised one of our nation’s major assets. The Bill offers a solution to reassuring residents in Baldock that the Ivel will flow fully once again; to residents in Buntingford that planning consultations will no longer be waived through, where they will cause already overloaded infrastructure to flood people’s homes with sewage; and to residents in Barkway that effluent will no longer flow into our rivers for hundreds of hours every year.

Something which unites the rivers at each of the locations I have just referred to is that they are all chalk streams. We are proud custodians of 10 of these internationally significant waterways in North East Hertfordshire and I would be remiss not to take this opportunity to ask Ministers to publish the ready-to-go chalk stream recovery pack. It would be a move warmly welcomed by many local groups in my constituency and across the country. I would like to extend an invitation to Ministers to join me in visiting the River Ivel in my constituency to discuss a superb chalk stream restoration pilot project that could be implemented there.

To conclude, the Bill has my full support and I hope that Ministers will reflect its whole spirit in their responding remarks today.