Oral Answers to Questions

Ian C. Lucas Excerpts

Thursday 12th July 2018 Commons Chamber

[Michael Gove]

Lots of countries.

[Ian C. Lucas (Wrexham) (Lab)]

5. What the Government’s policy is on the level of remuneration of senior executives of monopoly water providers.

[The Secretary of State for Environment, Food and Rural Affairs (Michael Gove)]

On 1 March I set out the need for water companies to respond to public concerns over executive pay and a number of other practices. The Government fully support Ofwat’s reforms that require water companies to ensure that executive pay is linked to customer service.

[Ian C. Lucas]

The chief executive of Severn Trent earned £2.45 million last year. As a Wrexham customer I have to contribute to that salary, following the hostile takeover of our local water company. Does the Secretary of State, in his new progressive form, agree that Severn Trent should follow the example of the John Lewis Partnership and link the pay of its highest paid chief executives to those within the business who are lower paid?

[Michael Gove]

It will not surprise the hon. Gentleman to know that I am a huge fan of the John Lewis Partnership and the leadership that its executives have shown. This Government and this DEFRA team have taken stronger action than previous Governments and previous teams have done in order to ensure that water companies smarten up their act, that they deal not just with executive pay, but with some of the byzantine financial structures that have not worked in consumer interests in the past, and that they invest more in improving the environment and keeping bills low.