Water Industry

Debate between Gavin Shuker and George Hollingbery

Tuesday 5th November 2013 Commons Chamber

[Gavin Shuker]

The hon. Gentleman makes a passionate defence of his own record in post.

Let us look at some of the specific measures on which this Government had the opportunity to work and legislate but deliberately chose not to do so. First, there is bad debt. I was interested to read a copy of the Secretary of State’s letter to the water companies—sent out today, curiously enough, purely coincidentally—which talked about bad debt. I thought, “Fantastic! At last this Government have adopted the right position on bad debt.” Each household has to pay £15 or so because some people cannot pay and will not pay, and that money is dumped on the bills of consumers who step up and do pay.

On energy bills, is it not interesting that there is a provision that requires landlords to give companies their tenants’ details so that they can reclaim the money? On reading the letter, I thought, “Fantastic. At last the Government have responded to the Opposition’s calls to make the water situation analogous with that of energy.” However, the letter only makes a firm threat to look at the issue in more detail if the companies themselves do not voluntarily make progress on the provision.

My position and that of my party is clear: bad debt as a result of those people who will not or cannot pay dumps an additional cost on every household, so it would make sense to implement the provision. The Government could have taken that action. We made the case for it, but they have had no interest in it until now.

That is not the only issue. Government Members and the press have today mentioned the social tariff. I was the lead Opposition Member on the Water Industry (Financial Assistance) Bill Committee. We sought to amend the Bill so that every water company operating in the UK had to do one simple thing, namely offer a social tariff to those people who find it hard to pay their bills or who find themselves in a situation where they cannot pay for the service provided. The Government chose to vote down that proposal and Government Members voted against it. Instead, they favoured a voluntary approach: if water companies wanted to introduce a social tariff, they could. It is amazing how few water companies have actually done so.

[George Hollingbery]

I think I am right in saying that the previous Labour Government were in power for 13 years and I am struggling to add up the number of water regulation Bills they introduced during that time. If the hon. Gentleman would like to tell me, I will take a round number.

[Gavin Shuker]

Why not start with the three reviews that led to the water White Paper? The Pitt, Walker and Cave reviews looked directly at competition and were conducted in the five years before we exited government and this Administration came in. They laid the groundwork and contained radical ideas that would have resulted in better provisions for water affordability. They would have put in place a framework to deal with the issue in its entirety. The water White Paper, which resulted from those reviews, was quite good, but that has left many of us asking: why is the Water Bill so washed out?