Water (Special Measures) Bill [Lords]

Debate between Claire Young and Emma Hardy

Report stage
Tuesday 28th January 2025 Commons Chamber

[Emma Hardy]

Despite our political differences, the hon. Gentleman and I had a very interesting and—what is the right word?—comradely debate in Committee.

As we explained in Committee, conversations on the water restoration fund are still ongoing. I honestly do not believe that primary legislation is needed, which Conservative Front Benchers know, as they established the fund without primary legislation. I gently point out, as I have already mentioned, that within the 18 months of its establishment under the previous Government, the fund did absolutely nothing.

[Claire Young (Thornbury and Yate) (LD)]

Will the Minister give way?

[Emma Hardy]

I have two minutes remaining, so I have to skip through as much as I can, as I know Members will want me to answer questions, particularly on the SAR.

Some hon. Members have expressed concern about the rules on performance-related pay and consumer representation. Although the Government agree it is crucial that consumers’ voices are heard and considered in water company decision making, we have already taken action on this. It is not necessary to require environmental experts to be placed on company boards because, following the agreement made with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs in his first week in office, nine of the 16 companies have updated their articles of association to include a social and environmental commitment. DEFRA is working with all of them to ensure they do the rest as soon as possible.

I agree with the hon. Member for Westmorland and Lonsdale (Tim Farron) about the representation of environmental non-governmental organisations on company boards. Members of water company boards are subject to a number of duties under the Companies Act 2006, including a duty to promote the success of that company. A director’s fiduciary duties may conflict with the organisational objectives of the environmental group in question, thus preventing their objective participation in board membership. We cannot have a situation in which an environmentalist on a water company board is not comfortable with their duty to promote the success of that company.

I produced a factsheet detailing how the SAR is used to ensure the continued provision of vital public services. However, I remind the House of the facts. I am being very clear: the shortfall recovery power can only be used to recover shortfalls in repaying Government funding. For the last time, I hope, it cannot and would never be used to recover financial creditor or shareholder losses relating to investment in the company. If the amendments were accepted as proposed, it would involve a radical change to insolvency policy, which has been a long-established practice since 1986.

Question put and agreed to.

New clause 18 accordingly read a Second time, and added to the Bill.

Flooding

Debate between Claire Young and Emma Hardy

Monday 6th January 2025 Commons Chamber

[Emma Hardy]

I thank the hon. Gentleman; that was another interesting and thoughtful question. I am happy to look into this in more detail for him, because if there are rules and regulations that are not working, as a new Government we do not need to keep them. If they are not working, let us change things and make things better. The hon. Member should send me the information and I can have a proper look at it.

[Claire Young (Thornbury and Yate) (LD)]

Returning to the issue of wider infrastructure in surface water flooding, recent examples in my constituency include a householder who has been affected by water running from an incomplete major housing development who has been told nothing can be enforced until the development is finished, and another where a road safety scheme is funnelling water into their property. What action will the Government take to ensure that infrastructure is being designed with surface water flooding in mind and to ensure that developers have to provide appropriate drainage right the way through the build-out of major developments?

[Emma Hardy]

I am really sorry to hear about the hon. Lady’s constituents facing such an incredibly unfair situation for anybody to have to deal with. That is why the fact that sustainable drainage systems and schedule 3 to the Flood and Water Management Act 2010 that we brought in were never enacted is so important, and that is why we are looking at that now, because there need to be adequate drainage systems in new designs. That should have been in place since 2010, but the previous Government did not enact it. This Government are serious about getting on with it.