Ofwat: Strategic Priorities

Daisy Cooper Excerpts

Thursday 9th June 2022 Commons Chamber

[Daisy Cooper (St Albans) (LD)]

I congratulate and thank the right hon. Member for Ludlow (Philip Dunne) for all his campaigning on this issue. I am pleased to have supported a number of his initiatives in this place. That said, it is extraordinary that we are still having to debate this subject—that we are having to talk about measures to prevent and reduce the discharge of raw untreated sewage into our rivers, our lakes and our chalkstreams and on to our beaches. This is just so obviously wrong and it is extraordinary that we are still having to talk about it.

Let me start with a stark contrast. England’s water company bosses have awarded themselves almost £27 million in bonuses over the past two years, despite those companies pumping out raw sewage into waterways 1,000 times a day. That, too, is obviously wrong. Liberal Democrats have demanded a sewage bonus ban to ban future bonuses until sewage dumps stop. We want to stop water company executives being paid a penny in bonuses until waterways are protected from these outrageous sewage dumps, and those bosses should be made to hand back the millions of pounds that they have already received in bonuses until they clean up the mess.

What is the scale of the problem that we are dealing with? In 2020, water companies discharged raw sewage into waterways 400,000 times, which amounts to more than 3 million hours of discharge. The longest discharges lasted for more than 8,000 hours. Just 14% of the UK’s waterways are in a good ecological condition and more than half of England’s rivers failed to pass the cleanliness tests. We have a duty to protect our natural environment, but water companies, Ofwat and, I am afraid, the Government have failed to hold water companies accountable for dumping sewage into waterways.

New analysis of Environment Agency data has revealed some shocking statistics. In the south-west, South West Water dumped sewage into local rivers for a staggering 19,095 hours last year. Across the region, it released sewage into rivers and on to beach fronts 43,484 times and for more than 350,000 hours. The data reveals that that includes raw sewage being discharged for more than 3,700 hours into the River Otter, more than 1,800 hours into the River Exe, and more than 1,400 hours into the River Axe.

The situation is not much better in the east of England in Hertfordshire. My constituency of St Albans is home to the River Ver, which is a rare and precious chalk stream. It should run clear, but last year, the volunteers of the Ver Valley Society and the river wardens took photographs at the source of the river that showed sewage, sewage fungus and plastic tampon applicators—all at the source of our beautiful river.

Shocking data revealed by the Rivers Trust shows that the sewer storm overflow at Markyate waste water treatment works, operated by Thames Water, discharged untreated raw sewage into the River Ver as many as 139 times for a total of 2,642 hours during 2021. Another wastewater treatment works at Harpenden, just up the road from St Albans, also run by Thames Water, recorded 13 spills for a total of 120 hours into the River Lea.

Where on earth is Ofwat? I think it has now been called “Ofwhere” by some environmental charities. It is sitting on its hands and simply missing in action. It has fallen to an environmental group called Wild Justice to take it to court to try to encourage it to use the powers that it already has to regulate sewage discharge.

I am disappointed that the Government have not taken on more of Opposition Members’ ideas. For example, during the passage of the Environment Act, Liberal Democrats supported an amendment to make it harder for sewage dumps to happen and to ensure that DEFRA produced a storm overflow discharge reduction plan. It is disappointing that the Government whipped against that amendment. During the passage of the Animal Welfare (Sentience) Act 2022, Liberal Democrats tabled an amendment to name and shame the water companies found to dump sewage in rivers, which leads to animals being killed. Again, it is disappointing that the Government actively whipped against that amendment. My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) has introduced a Sewage Discharges Bill to end the sewage scandal in rivers and protect animals, and I urge the Government to support it.

As I said at the beginning, it is deeply disappointing that we even have to have this debate. Our lakes, beaches, chalk streams and rivers are utterly vital to our British ecosystems, and all of us must do everything to protect them. Despite discharges of untreated waste only being permitted in so-called exceptional circumstances—for example, after extreme rainfall—these releases from water treatment companies are becoming routine.

Water companies must work to minimise sewage discharges into our rivers and lakes, so I call on the Minister to consider a number of things. I would like the Government to set meaningful targets and deadlines for water companies to end sewage discharge. I would like the Government to introduce a sewage tax on water company profits to fund the clean-up of our waterways. I would like the Government to reduce the number of licences given to water companies permitting them to discharge sewage into our rivers.

[Jesse Norman]

Does the hon. Lady share my view that one of the things the Government should closely consider is the idea of a national rivers recovery fund so that fines that have been paid can be used to remedy all of the pollution that has created them? At the moment, small fines go back into redress for pollution, but large ones go to the Treasury. My former colleagues will not thank me for it, but there is a case for a wider national recovery fund for rivers.

[Daisy Cooper]

I thank the right hon. Member for his intervention, and I think that is an exceptionally good idea. I am certainly open to any idea that effectively makes these water companies cough up to clean up the mess they have made. I would happily have a conversation with him to see how we can advance such a suggestion.

In addition, I would like the Government to add members of local environmental groups to water company boards. Some of our river volunteers, certainly in St Albans, are themselves experts—they know these rivers inside out—and they should have a voice and a role on water company boards.

I would like to see Ofwat using its existing powers to tackle the discharge of raw sewage, but I also want Ofwat’s powers to be strengthened, and I will give two or three quick examples. I do think that the Government could give Ofwat the power to force water companies to make repairs and investments to reduce sewage discharge. Ofwat could have the power to ban companies from giving bonuses to their executives until this mess has been cleaned up, and Ofwat should have the power to force companies to publish the number of sewage discharges more regularly than just once a year.

[Philip Dunne]

The hon. Member may not be as familiar with the Environment Act as I am, but it is made very clear in the Act that the monitoring devices that water companies are going to be obliged to install will make information on water quality available within 15 minutes or in near real time.

[Daisy Cooper]

I thank the right hon. Member for that intervention. I was not aware of that, and I am grateful to him for informing me. On the River Ver in St Albans, a number of our river wardens have taken part in a citizen science project in which they are regularly involved in testing the quality of the water, so I am sure many of them would be keen to take part and observe that particular set of data.

Finally, I am pleased that we have had this debate today, but I am shocked that we are still having to have it.

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[Luke Pollard]

I am grateful to my hon. Friend for raising social tariffs. We need the proper legislative framework and nationwide approach for which I think she has been arguing for some time. We must look at how social tariff versions vary between water companies, which affects people who move between different water companies. We must also ensure that water poverty is properly understood as a key part of the cost of living crisis. Far too frequently, I find that this type of poverty, which belongs to DEFRA, is separated in Government thinking and leadership from those types that belong to the Department for Work and Pensions or the Department for Business, Energy and Industrial Strategy. We need to ensure that the Government look at this area holistically across all Departments and do not allow a silo-based approach. There is merit in what she suggests, and I would like to see further action on it.

One of those points which, joined up, could make a big difference is on housing retrofit. The Government’s record on housing retrofit is appalling—I think on both sides of the House we need Ministers to consistently go further—but when BEIS proposed measures to insulate homes, they related only to energy and gas reduction, not reducing water usage. Every single drop of water is expensive environmentally and financially, so that is very important. I would like the next iteration of housing retrofit policy proposed by Government to include water with the gas and electricity measures.

On decarbonisation, the SPS misses a trick. It could have gone further by insisting that water is genuinely decarbonised, rather than relying on an incredibly large amount of offset to hit the 2030 net zero target. I would like the 2030 target to be more commonly adopted, but simply buying offset and loading the cost on to bill payers does not actually deliver the carbon reduction we need. I want every water company to be an energy company, using its land to install solar, onshore wind and other types of energy to reduce the energy intensity and carbon intensity of its own operations. That should have been in the SPS and it should be in business plans, but it seems to have fallen between those. Indeed, the language on pushing or challenging water companies to, as the SPS suggests, invest more in decarbonising the sector could be a bit tighter. I would like to see in the proposals what it actually means in practice.

The proposal to halve leakage by 2050 is welcome, but the problem is that 2050 is a very long time away. I would like to see how much leakage reduction will be in the next price review period and how it can be accountable to others. The target of 110 litres a day is not enough. I would like to see us aim at 100 litres a day. Water companies around the country are achieving that, but we do not have enough water to go slow and we need to achieve that.

Nature restoration needs to go further. I want the policies in the SPS to integrate with the policies proposed for environmental land management and farm management. At the moment, they do not seem to have joined up in the way we need them to. If we are to have the bolder change we need, we need a greater level of joined-up thinking on that issue.

The Environment Agency has been raised by colleagues on the Government Benches. I am not a fan of the Environment Agency. I would like to see it go further. In the middle of an environmental crisis as we are, all too frequently it is too passive, too pastel shade. I would like to see it being a bit more “Grrr”—good luck, Hansard, in writing that one down.

[Daisy Cooper]

I have had huge frustrations with the Environment Agency in my constituency of St Albans, but I was very alarmed to receive an email from it not too long ago explaining that cuts to its budget meant that it would not be responding to a number of urgent reports from residents about various environmental issues. Is the hon. Gentleman concerned about that as well?

[Luke Pollard]

I am indeed, and I thank the hon. Lady for that intervention. We need to ensure that powers go with responsibilities and that funding, which is not there, follows. I am very mindful of the time limit you suggested, Mr Deputy Speaker.

On sewage, we need stronger, bolder measures. What customers can expect in the next price review period needs to be clearer. I would like that commitment on the bills that are sent to consumers. What is the priority? What is the transparency, so people can look into that? Without a clear timetable and a priority list for closures, I am afraid that we are not going to see the urgency we really need.

Finally, as a keen wild swimmer—I wear my wetsuit with pride when I go swimming in Plymouth Sound—we need more action on bathing water quality. Devil’s Point and Firestone Bay is a brilliant area of swim water in Plymouth, but it is not currently recognised as an official bathing water. At this very moment, there are beach volunteers on Devil’s Point and Firestone Bay recording how many swimmers, kayakers, paddle boarders and dog walkers we have on the beach and in the sea. That is a part of our campaign to have the water designated as official bathing water, meaning that there is water testing throughout the year, but especially in the key summer period, with the results published. That will give us a sense of what is in the water. I suspect we will have excellent bathing water, but when we have high levels of rain and raw sewage comes down the River Plym and the River Tamar, we will be able to understand what is in it. Is it human or is it agricultural? Then we can target raw sewage outlets for closure. That is the type of proactive measure I would like to see right around the country. That is why I want the SPS to go a little bit further. It is a good start, but I think there is more in there.

--- Later in debate ---

[Daisy Cooper]

The Minister will be aware that our concern is that we should be banning those companies from allowing raw sewage into our rivers, not just asking them to reduce the amount. Where we have 2,300 hours of raw sewage discharge, reducing it by one hour does not achieve a huge amount. She has talked about the measures that she has been trying to take to encourage companies to invest, so does she agree that a sewage tax is precisely the kind of measure that her Government should consider?

[Rebecca Pow]

Of course, we are hoping not that sewage discharges will be reduced by one hour, but that they will be reduced pretty much all the time, unless there is an absolute emergency. That is what the storm sewage overflows are there for and that is why they were put in in Victorian times, but they are simply not fit for purpose. That has come to light particularly through the investigation that the EA instigated, which is how we discovered lots of water companies putting up their hands and saying, “Actually, ooh, we’re not adhering to our permits.” We are now on their case, as are the EA and Ofwat the regulator, as a result of that detailed investigation. Certainly, there is a whole raft of measures that will tackle that.

Water companies also need to play their part in reducing nutrient pollution in rivers, which was mentioned by a few colleagues. Through our landmark Environment Act, we propose to set a legally binding target to reduce phosphorous loadings from waste water by 80% by 2030 against the 2020 baseline. That target will provide a legal driver to require water companies to further reduce phosphorous in the water environment, which will protect rivers and our precious habitats. We are also supporting farmers to reduce the nutrient pollution from agriculture.

My right hon. Friend the Member for Ludlow mentioned that all of our policies in DEFRA and, I would say, even more widely across Government—for example, the Department for Levelling Up, Housing and Communities forms part of this through its housing policies—need to link up. However, I believe they do, because there are measures in our environmental land management scheme and our flooding policy statement that all link to the water landscape, as they need to do.

We have almost doubled our funding for the catchment-sensitive farming programme, which provides farmers with advice on how to reduce pollution. We have increased that budget to £30 million from £16.6 million, and that will cover 100% of England’s farmland, up from 40% of its current coverage, with more catchment-sensitive farming officers.

We must recognise that the water environment faces many other pressures. I was pleased that the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) widened the debate, which is so important. Yes, we have worked very closely together, and I acknowledge that he, with an understanding of the whole landscape, has been supportive of many of these measures. Climate change and a growing population, especially in dryer parts of the country, are increasing constraints on our water supply. The Government have been clear in our statement to Ofwat that water companies and Ofwat must take a long-term and strategic view of the challenges ahead. Meeting our future needs must not come at the expense of the natural environment, and that includes reducing unsustainable water extraction from chalk streams and aquifers.

We will need a twin-track approach to secure resilient water resources. On the one hand, water companies will need to invest in new supply infrastructure where it is needed, and on the other, we will need to reduce demand for water, use water more efficiently and reduce leaks. We will actually need to secure an additional 4 billion litres of water a day by 2050, and half of that will need to come from reducing demand, as the hon. Member mentioned. By 2050, we expect to see leakage halved, because that is a big part of this, and to see average daily consumption at 110 litres per person, which is actually 30 litres less on average than we are each currently using.

My hon. Friend the Member for Wantage (David Johnston) mentioned a potential reservoir. I will not comment on that particular reservoir, but we will need—and we are putting in place—a whole raft of such measures. We will need new infrastructure, including new reservoirs to reduce leaks, and to use less water overall. Through the Environment Act, we propose to set a legally binding target on the Government to reduce use of the public water supply in England per head of population by 20% by 2037. This will be supported by mandatory water efficiency labelling and building regulations, and water companies must play their part in helping us to achieve that target.

Delivering on these ambitions does not come without costs, and my hon. Friends will be rightly concerned. A number of Members, particularly the hon. Member for Blaydon (Liz Twist), have raised the effect on the cost of living and how critical this is—and she is going to intervene on me.