Water Bill

Debate between Ellie Chowns and Meg Hillier

2nd reading
Friday 28th March 2025 Commons Chamber

[Dame Meg Hillier]

It seems there are an awful lot of mind readers in the Chamber today, because the hon. Gentleman anticipates my comments. I am proud to be a Labour and Co-operative Member, so I have thoughts on how, one day, we may be able to move to that nirvana of co-ownership.

We have seen too often that dividends and bonuses are paid without investment in infrastructure, which is where my hon. Friend and I would agree. We have a privatisation model that was supposed to deliver investment on the back of people investing in shares. In return for getting a dividend, there would also be an investment, but we have not seen enough of that.

Of course, under Ofwat rules, water customers bear a share of the cost. In Hackney, under Thames Water, which has been a poster company for the problems in this sector, bills are going up by more than a third. A number of constituents who are very worried about their water bills have written to me just in the last fortnight. When we talk about money in this place, we sometimes talk about millions or billions of pounds, but £100 a month is a great deal of money for many of my constituents.

To set that in context, I have a number of fantastic street markets in my constituency—ones where people can buy fruit and veg, and clothes and underwear at a reasonable price—and I also have the lovely Broadway market, where sourdough bread costs about £5 a loaf. I have constituents who do not have £5 left at the end of the week, let alone at the end of the month—those are the margins that people are working with. Water bills are therefore a significant issue, which is another reason why I am delighted to be here today, supported by colleagues of all parties who want to talk about the challenges of water.

On the face of it, the argument for nationalisation sounds appealing to many, but there is a cost—and it is not a hidden cost: to those who bought shares in good faith, to those pension funds that are investing, and in the upheaval of turning around these companies. Where would we get the people to run a nationalised water company? It is likely to be the same executives, if they would take the pay cut. There is not a wealth of expertise.

I spent a decade examining the work of Whitehall, and there are some excellent civil servants in this country who have done amazing work—many of the civil servants who did not do such amazing work appeared before the Public Accounts Committee—but finding somebody overnight with the technical and management expertise to run a major water company is a challenge.

To take the corollary, I am passionate about seeing insourced services in our hospitals, but after having intense conversations with executives at my local hospital, I know that, when the public sector has not done something for many years, it takes a very long time to build up the expertise. Let us take catering. If hospitals do not cater well, they could kill patients, so they need to make sure they have the management structure in place to deliver those skills. It is the same with water companies—it is not as easy as saying, “One day it’s private, and the next day it’s national. No problem at all.” The upheaval would be immense, so we need a measured plan, and I think this Government have begun to develop that plan, for all the reasons I will outline.

I will talk a little about what the Government will do to improve the situation, and then I will talk about the Bill, but I want first to touch on the comments of the hon. Member for Bristol Central (Carla Denyer). I am very interested in her passionate commitment to citizens’ juries. She has been elected, which is a privilege as we all know, to represent her constituents in this place, yet months after her election, she wants to pass responsibility for this big, difficult decision to a citizens’ jury, rather than taking responsibility for that decision as an elected MP.

[Ellie Chowns]

I think it is important to correct the misapprehension among some Government Members, which may arise from an inadvertent misreading of the Bill. Clause 4, on the citizens’ assembly on water ownership, at subsection (4), simply says:

“The Commission must publish the recommendations of the Citizens’ Assembly.”

It does not say, “This House will hereby delegate responsibility for making decisions about water sector ownership to the Citizens’ Assembly.” It simply suggests setting up a structure, which, as I said, has already been used by the House to provide the opportunity for the general public to consider in depth an issue of complexity.

--- Later in debate ---

[Dame Meg Hillier]

My point is clear. Just as, many years ago, a certain Mr Ratner famously talked about the price of a prawn sandwich in Marks & Spencer and the price of earrings in his store, people do not want to be on the board of Marks & Spencer to get a decent prawn sandwich; they just want to be able to buy a decent prawn sandwich, and while my political foundations are in devolution, neighbourhood structures, working and listening to people, ultimately we must responsibility ourselves.

I am looking at clause 4, as the hon. Lady highlighted. I have been around for many years, but one of the challenges about citizens’ juries is that while we can have this engagement, they are lengthy and costly, and we know that not everybody attends the whole time. How would we select people? There are many challenges in setting them up.

[Ellie Chowns]

rose—

[Ellie Chowns]

I remind the House briefly that all these issues are well investigated and understood, and the House has previously used this mechanism effectively.

[Dame Meg Hillier]

Well, in my experience of 20 years in the House, this system has been used once, and that was in 2019, by a selection of Select Committees, not by the Government of the day. I am aware that the first debates about citizens’ juries were 30 or so years ago, and there are many challenges to delivering them.

[Dame Meg Hillier]

Absolutely. I think we would all agree that we talk all the time to constituents, whether on doorsteps or at public meetings and other forums, because that is our job. I say to constituents every week when I am on their doorsteps, “I am here because I need your expertise. I can’t do my job without you.” But it is a cumbersome task to be on a citizens’ assembly as it requires people to devote a great deal of time, and only a certain subset of society has the time to do that. Many of my constituents are working three or four jobs and struggling to survive. They do not have the time to do that, but their voices need to be heard, too.

[Ellie Chowns]

I declare experience in this area in that, through Herefordshire council, I set up a citizens’ assembly. A process called sortition is used to ensure a fully representative sample. Participants are paid for their time so that people of all socioeconomic backgrounds can participate, and additional efforts are made to ensure that under-represented groups can participate. Will the hon. Lady acknowledge that such an institution might be more representative of the general public than this House, in which two thirds of MPs were elected by only a third of the electorate?

--- Later in debate ---

[Ellie Chowns]

I warmly invite the hon. Member to read up about how citizens’ assemblies work, how the sampling works and how participation is facilitated for all people, and about the time commitment. The citizens’ assembly previously established by this House was over three weekends in Birmingham. These are not huge commitments, but they are a valuable mechanism for ensuring that the public have the time to consider an issue in depth.

I want to raise three points on this important Bill. First, I could not agree more with the hon. Member for Norwich South (Clive Lewis) that the privatisation of water has been an absolute disaster. We have seen soaring bills, soaring executive pay, soaring dividends and soaring siphoning of finance out of our country into the pockets of private interests, while at the same time our infrastructure has crumbled and our rivers have become increasingly polluted. It is long past time to resolve this national disgrace.

My Green colleagues and I believe that public ownership is a core part of the solution, but it is not the only solution. We have to ensure that the water system is adequately regulated, so that whoever is in charge sticks to the rules, does not make profits on the back of pollution and does not pump sewage into our rivers—that is fundamental and essential.

[Dame Meg Hillier]

How does the hon. Lady propose to pay them for running the water system? We all agree there are problems, but in the current climate, where would she get the money from to pay for this to happen?

[Ellie Chowns]

I refer the hon. Lady to my previous comments on the merits of citizens’ assemblies in considering the details over many dozens of hours. I also refer to my party’s manifesto.

Secondly, climate change is a systemic challenge. I am glad that some hon. Members have mentioned this and that it is included in the text of the Bill because, as the hon. Member for Norwich South said, it is a huge problem when there is too little water. Too much water is also a huge problem, and that problem is increasing.

I have already spoken several times in this House about flooding in my constituency. Climate change is making these challenges more frequent and more severe, so any Water Bill needs to address not only the water industry, water supply and sewage, but also climate change and its interactions with water. I am pleased that is mentioned in the Bill.

Another topic mentioned by the Bill, somewhat briefly, is perhaps even closer to my heart—and certainly close to my constituency. Indeed, as I put my hand to my heart, I feel the jewellery I am wearing, which represents the River Wye. Pollution is the elephant in the room in how this issue is currently being tackled. Pollution comes not only from sewage but from agricultural run-off. Nearly three quarters of the pollution in my constituency is from agricultural run-off. There has been a planning moratorium across almost all of my constituency for more than five years, with devastating economic effects. Tackling the water industry will not address this. Indeed, the majority of my constituency is served by the only non-profit water company in the UK.

The problem we face is around pollution. I find it disappointing, even distressing, that although the conversation about water in this House has rightly focused on sewage, it has not focused sufficiently on tackling water pollution. As DEFRA figures and the Environmental Audit Committee’s report both show, half of the problem is from agricultural water pollution. Slightly more of our waterways are in bad condition because of agricultural pollution rather than sewage pollution. This is an issue that we need to tackle together, working in concert with farmers.

We need to support farmers, which is why I am so devastated by the direction in recent months, which has arguably been wrong. I am particularly upset that just a couple of weeks ago, the sustainable farming incentive was taken away from farmers without anything to replace it. We need a Government who work with farmers and support them to transition to nature-friendly farming, so that we can reduce the agricultural run-off that has such a devastating effect on our waterways.

The Government have this vital role to play in leadership. It is essential to tackle the failures of the privatised water industry, essential to tackle the outrageous volume of sewage overflows into our rivers and essential to tackle agricultural water pollution.