Water Industry

Debate between Frank Dobson and George Hollingbery

Tuesday 5th November 2013 Commons Chamber

[Frank Dobson]

I cannot really do that as I have only just come back to looking at the water industry from the time when I tried to make life difficult for it, with some success. “Hammer the customers for the profiteers” is the motto of the water industry. We have higher charges, and now water companies want to install compulsory water meters everywhere. That is basically their policy, and a lot of people who I think ought to know better have been going along with that.

It costs about £250 to supply and install a water meter, and they have about 15 years of life before the grit and impurities in the water make them not do their job accurately. If it is a smart meter I understand that the situation is even worse. It costs about £50 to install a new meter if one has previously been installed. I think there are more than 10 million unmetered households, so at £250 a throw—according to my calculations—that is £2.5 billion. Does anybody think that investing in water meters is the best way of spending £2.5 billion? Even if they do, I certainly do not.

Another thing is that, as soon as anything goes wrong, the companies come rushing to the taxpayer to bail them out. South West Water could not cope with the problems it faced, particularly its sewerage problems and ended up getting a leg-up from the taxpayer.

[George Hollingbery]

I read one or two historical documents on water management before I came to the Chamber. I believe I am right in saying that the previous Labour Government’s policy was for universal water metering—the policy statement was made in 2008. Is that correct?

[Frank Dobson]

That might be the case, but the statement was not made in my name—let us put it that way. When I was responsible for water in opposition, I was opposed to metering. I remained opposed to it when Labour was in government and continue to be opposed to it.

South West Water is not the only one. Thames Water had sewage and run-off problems and came up with a great £4 billion scheme. Because of how it finances itself, it could not finance the scheme, despite paying £6 billion in dividends over the years. The only way in which it can proceed is by Government guarantee. It is therefore not really privatised; it is a dependency of the Treasury.