Cost of Living

Debate between Gavin Shuker and Baroness Bray of Coln

Wednesday 16th May 2012 Commons Chamber

[Gavin Shuker (Luton South) (Lab/Co-op)]

I am extremely grateful to you, Mr Speaker, for calling me towards the end of the debate. I promised a little variety if I were called. I know that many issues to do with the cost of living have been raised in the course of the debate. In a sense it is hard to narrow them down to one or two, but I wish to refer to a few problems with regard to utility bills, particularly water bills.

We know that we in this country are facing not just some of the toughest global economic times but, as we have highlighted, a very tight fiscal contraction—I nearly said “contradiction”, which might actually be the right term—in the UK economy. Against that backdrop, there is a cost of living crisis. We have heard from many Members of all parties about the rising cost of energy and fuel and the inflation-busting rises in transport fares.

Back in February, I had the opportunity to go to the university of Leeds, where there is a brilliant research centre on water policy. While I was there, I gave a speech in which I talked about the consensus that there has been about the privatised water industry for the past 20 or 25 years. That consensus has stretched across both major parties, customers and companies. It involves a relatively low-risk settlement for investors, with reasonable levels of investment in water infrastructure and rising standards of water quality. Crucially, customer buy-in has also taken hold over the past 20 years or so.

In that speech, I laid out my concern that we risked walking into a perfect storm this year. We have drought conditions, and sadly, there was very little in the Gracious Speech about concrete action on the rising cost of water. While that concern exists there is every chance that, just as the Government and Opposition have rightly targeted energy bills in recent months and years, we will have to take similar action on water as people’s dissatisfaction with the service that they are receiving continues to grow.

[Angie Bray]

One problem I raised earlier in the debate is that the regulator sets soft targets on plugging leaks. One of the most frustrating things for my constituents is finding themselves paying water bills in a drought while the rain is plummeting down. Does the hon. Gentleman agree that it is because the leaks are not being plugged that we are still in a drought, and that we need tougher targets?

[Gavin Shuker]

The hon. Lady makes an excellent point. Ofwat, the industry regulator, lays out tough targets on water companies reducing leakage in some places, but not so tough targets in others. The fundamental problem is that if the cost of water being lost is less than the cost of making the repair, it is not economically viable for water companies to make the repair. That is why we need comprehensive action and a comprehensive water Bill, rather than a draft Bill, in this Session.