Water (Special Measures) Bill [Lords]

Helen Maguire Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[Helen Maguire (Epsom and Ewell) (LD)]

My constituency is home to two significant rivers: the Hogsmill, a pristine chalk stream; and the River Mole, which tragically ranks as one of the most polluted rivers in the country. The River Mole, stretching 50 miles from Sussex to the Thames, is more than a waterway; it is a much-loved amenity for families, walkers and wildlife. Yet it is fighting for its life. Sewage discharges surpassed 2023 levels by November this year, with over 12,500 hours of raw sewage polluting the river through storm overflows. That is unacceptable. The crisis has been caused by water companies’ mismanagement, enabled by Ofwat’s failure to hold them to account. Thames Water has prioritised shareholder dividends over infrastructure investment, and Ofwat has issued no fines for sewage treatment failures since 2021—an extraordinary regulatory failure.

The Water (Special Measures) Bill introduces vital provisions to block bonuses for water company executives and to impose fines. Although these measures are welcome, they do not go far enough. Ofwat is a regulator that does not work, and it must be replaced with a new regulator with powers to ban bonuses comprehensively, to revoke licences for poor performance and to set legally binding sewage targets. Bonuses must be blocked not just for pollution, but for persistent leaks, missed investment targets and failing infrastructure improvements. The Liberal Democrats would ensure that the companies are held accountable for all their failures, not just the most egregious ones.

We must also rethink water company ownership. Since privatisation, those companies have accumulated £68 billion of debt, while paying out £70 billion in dividends. Customers are now paying for that debt in their bills. In a public-benefit model operating as not for profit, debt-free mutuals would reinvest all profits into upgrading our water system. That model works. Denmark, whose not-for-profit utilities have some of the lowest water losses, ranks among the top EU countries for bathing water quality.

Closer to home, I commend the River Mole river watch group in my constituency. Those dedicated volunteers test water quality and report pollution online. Their work is extraordinary, but they should not have to do it alone. Water companies must publish detailed and transparent data on sewage spills so that the public understands the full extent of the problem. Such local groups deserve more than praise; they need a seat at the table. Those environmental champions should have representation on water company boards, bringing community-driven accountability to decision making.

My constituents and the rest of the public are sick of seeing their rivers turned into open sewers. They are sick of paying higher water bills to subsidise shareholder profits and executive bonuses while vital investment is neglected. The Government must go further by replacing Ofwat with a new regulator that has stronger powers, expanding the ban on bonuses, empowering local communities, and reorganising water companies into public benefit organisations. This is our chance to turn the tide on water mismanagement and restore our rivers to health. The people of Epsom and Ewell, and indeed of the whole country, deserve no less.