Water (Special Measures) Bill [Lords]

Helena Dollimore Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I beg to move, That the Bill be now read a Second time.

I am delighted to open the Second Reading debate on the Water (Special Measures) Bill—something I hope the whole House will consider to be an early Christmas present. I thank the noble Baroness Hayman of Ullock for her outstanding leadership of the Bill during its passage through the House of Lords, where it quite rightly won support from all sides.

Our rivers, lakes and seas are part of our beautiful British landscape and have been enjoyed by generations. Our countryside is one of the things that makes us proudest to be British, but that pride too often turns to dismay because in too many parts of our country, the local river, lake or beach has been made filthy by pollution. People worry that the places they enjoyed when they were younger are no longer there for their own children or grandchildren. No parent should have to worry that their child might get sick from splashing around in the local sea or river. Our green and pleasant land is no longer quite so pleasant. Our rivers, lakes and seas are being choked by record levels of pollution from untreated sewage, as well as chemicals and run-off from agriculture and highways.

The Bill is not just about the desecration of water running through our countryside. Clean water is essential for every home and business up and down the country. It is one of the essential foundations of our economy, our communities and our national security. We use water to cool power stations, generate electricity, supply our leisure industries and grow the food that feeds us, but our water infrastructure is under increasing strain. It is outdated, inadequate and crumbling. The situation is made worse by our changing climate, with more frequent and severe rainfall, floods and droughts. Water supplies to homes and businesses are disrupted too frequently in some parts of the country. I have spoken to residents in Hastings and Rye who were rightly furious at the inadequate information, lack of alternative supply and little to no compensation when yet another outage happened in their locality.

[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

I thank the Secretary of State for the work he and his Department are doing to change the compensation rules so that when these incidents happen, my constituents get higher levels of compensation—something that the Conservatives had 14 years to do, but failed to do. Had they acted in that time, my residents would not be left without compensation for the incidents that have happened in Hastings, Rye and the villages.

[Steve Reed]

I pay huge credit to my hon. Friend. She has been such a champion for her communities in Hastings and Rye, demanding the better water services they deserve.

The failure to invest in our water infrastructure means that the demand for clean drinking water will start to outstrip supply as early as the mid-2030s. Without urgent action, some parts of the country would then face water rationing. The water system is broken but, instead of fixing it, the previous Conservative Government just stood back and watched as our water infrastructure crumbled into disrepair. Instead of strengthening regulation to ensure water companies invested sensibly and at the right time, the Conservatives hobbled the regulator and let water companies divert millions of pounds into wholly unjustified multimillion-pound bonuses and dividend payments.

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[Victoria Atkins]

Particularly as the hon. Gentleman was talking about effluent, which is not respectful. I know that he is capable of much greater advocacy than that. I am afraid that I will take no lessons from the Reform party, as he encourages, although I understand that Labour may face some threats from that party in the Welsh Senedd elections—but I digress.

We made it clear that the water industry must prioritise action to improve the environment, including protecting priority habitats such as chalk streams. I have the good fortune to have chalk streams in my constituency; they have carved their way through Lincolnshire’s wolds for the last 10,000 years. The dedicated chalk streams fund, announced by the Conservatives in 2022, has been put to good use in Lincolnshire. Will the Minister for Water and Flooding, whom I welcome to her place, confirm in her wind-up that the protection schemes for chalk streams will continue?

Following the pandemic, we launched our plan for water, which integrates water and food planning, tackles all sources of pollution and gives the Environment Agency the power to issue bigger penalties to water companies. We banned microbeads in rinse-off personal care products, reduced plastic bag usage by 95% and banned wet wipes containing plastic, which is a huge source of water pollution.

I understand why the Labour Government highlight the bonuses that water company bosses have received. Again, I gently point out to the Secretary of State—perhaps he has not done his homework—that the Environment Act 2021, which his Back Benchers do not seem to have read, gave regulators the power to ban water bosses from receiving bonuses if companies have committed serious criminal breaches. [Interruption.] Labour Members ask whether the regulators used it. They are independent, and it is for the regulators to justify why they have not used that power under the legislation that is available.

[Helena Dollimore]

Will the right hon. Lady give way?

[Victoria Atkins]

I will do in a moment—I am not like the Secretary of State.

The truth is that Labour Members do not like hearing the facts. We brought forward measures to ensure that companies that pollute the environment can be hit with unlimited financial penalties. We also set up the water restoration fund, meaning that any fines or penalties levelled at water companies were ringfenced to support projects that improve the environment and keep pressure off bills, rather than being returned to the Treasury. The fact that Ministers appear to have stalled the fund reveals how little this Government understand the countryside or care about it. Indeed, it looks like they have held back £168 million in fines that were due to be paid into the fund.

Why on earth would this Labour Government not want polluters to pay? Why are they content for fines of many millions of pounds to be paid into the Treasury slush fund, rather than local environmental projects that have been damaged by storm overflows? Does the Treasury really need that money, or is it perhaps paying for the Deputy Prime Minister’s new, flash apartment? My colleagues and I will work to ensure that the water restoration fund is reinstated and that money goes to local environment projects to protect local environments, as was intended.

Most of the measures in this Bill, including monitoring, blocking bonuses and significant fines, were in fact brought it by the Conservative Government. Indeed, primary legislation is not necessary to put most of these measures into practice.

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[Helena Dollimore (Hastings and Rye) (Lab/Co-op)]

I declare an interest as co-chair of the all-party parliamentary group on water pollution. Today, we will vote on a landmark piece of legislation to begin the clean-up of our water industry. The measures in the Bill ramp up regulation, ban bosses’ bonuses and ensure independent monitors on every sewage outlet, linked to a system of automatic severe fines. Make no mistake: these are the biggest increase in powers for a generation, and the changes cannot come soon enough for my constituency.

Before I come to the devastating impact that Southern Water has unleashed on my constituency, I pay tribute to the campaigners and community volunteers who exposed the scandal. It is only because of their determination and detective work that we have understood the scale of the problem. Volunteers from the clean water action group in Hastings go out testing the water three times a week. I also thank our local East Sussex Fire and Rescue Service, who time after time are the first on the scene when sewage is spilling out on to the street.

The community that I represent in Hastings and Rye is furious at the conduct of Southern Water. From Camber Sands to Old Roar Gill, sewage has poured on to our beaches and beauty spots. Our way of life as a seaside community has been compromised. Our appeal as a tourist destination has been tarnished and livelihoods have been ruined. Many people have got sick from swimming in the sea, or caught ear or eye infections. People have ended up in hospital with sickness, and one constituent even attributes her deafness in one ear to an infection that she caught swimming in the sea. Another constituent in Winchelsea beach told me that he cannot grow vegetables because for the last decade his back garden has been regularly flooded with sewage. A family in West St Leonards had to move out of their home for months and live in temporary accommodation after sewage flooded their home.

The town centre in Hastings was flooded twice in one year. Businesses and residents who had just moved back into redecorated homes saw their homes flooded all over again under a foot of sewage water. They then had to be rescued by firefighters. It was shameful. It has cost our community millions in damage, as well as the untold human cost of having possessions, property and livelihoods ruined. In the vast majority of cases, residents and businesses in my constituency have not been properly compensated by Southern Water. We have been left on our own to pick up the pieces, all while Southern Water’s boss has been allowed to collect a huge bonus. That money should be spent on fixing broken pipes, not rewarding failure.

[Dr Al Pinkerton (Surrey Heath) (LD)]

I commend the hon. Lady on her excellent speech, and her celebration of local campaigners. In my constituency, Thames Water is responsible for numerous sewage leaks and a great stink that lingered over our market town of Camberley last summer. Does she agree that the Bill needs to provide for tougher regulation, and greater transparency and accountability, to ensure that water companies put health and safety and water quality over shareholder dividends?

[Helena Dollimore]

I thank the hon. Member for his intervention. One of the things in the Bill that I really welcome is that it will stop water companies marking their own homework. The monitors on every outlet will report independently to the Government, so that we can issue automatic severe fines—a big change and step forward.

If huge amounts of sewage and major flooding in my constituency were not enough for one community to endure, we have also suffered major water outages at the hands of Southern Water. The taps have run dry twice in recent memory. In September 2023, 10,000 residents of Rye were left without water for up to nine days. In May this year, in Hastings, 30,000 people were left without water for five days. It caused huge disruption and had a major impact on local businesses. It has to stop. The Conservatives had 14 years to update the compensation guidelines for such incidents, and failed to act. Because of the action that this Labour Government are taking, if future incidents occur, my constituents will be eligible for greater compensation from Southern Water.

The Conservatives let the water companies off the hook for far too long. Instead of forcing the industry to invest in crumbling infrastructure, customers’ money was instead siphoned off into shareholder payouts and bonuses. My constituents now face record water bills because of that failure. We inherited a crumbling water system from the Conservative party, and this Labour Government are acting to clean up the mess. This Government are acting where the previous Conservative Government failed, to end the disgraceful behaviour of the water companies and their bosses with this Bill. This is just the start of the change. I thank the Government for announcing an independent commission on the water sector to see what more they can do to ensure that the water sector works for customers and the environment. I will work very hard to ensure that the voices of my residents in Hastings, Rye and the villages are heard as part of that process.