Water Companies: Executive Bonuses
Debate between Jerome Mayhew and Steve Double(11 months, 3 weeks ago)
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Steve Double (St Austell and Newquay) (Con)
It is a real pleasure for me to take part in this debate. I was born and raised in the heart of Cornwall, have lived there my whole life, and have always enjoyed the sea. Members who follow me on any my private social media platforms will know that I am found in, on or beside the sea at just about every possible opportunity. Therefore, I have taken a very keen interest in the whole issue of water quality, particularly bathing water and sewage discharge, throughout my life, long before I was first elected to this House.
We have to start by saying that this is not a new issue. Let us remember that Surfers Against Sewage was started in 1990 specifically to raise awareness about it and deal with it. At that time, less than 25% of UK bathing waters were at a minimum acceptable standard for bathing, whereas there is now only one beach in my constituency that does not meet that standard. I am sorry, but pretending that things are worse than they have ever been is absolute nonsense. We have seen incredible progress on this issue over many years.
I remember very clearly that the Labour Government did absolutely nothing in 13 years to address the issue—zero. When we came into office in 2015, we were the first ever Government to take this matter seriously and start to address it.
Jerome Mayhew (Broadland) (Con)
What my hon. Friend has just said is not actually accurate. Labour did not just do nothing; in 2006, it cut a deal with the water companies to agree self-assessment on their environmental performance. Does he agree that that is worse than nothing?
Steve Double
My hon. Friend makes a good point. Labour actually made the situation worse—so much so that in 2009, the Labour Government was taken to court by the EU for failing to deal with the issue—so I am sorry, but we will take no lectures whatsoever from the Opposition Front Benchers about dealing with it. We are the first Government who have ever taken this matter seriously and taken action to start addressing it. We do not even have to think back in history, because we have a living example right before us today: in the one part of the UK where the Labour party is in government, the situation is far worse than in England. Wales is responsible for 25% of sewage discharges for the whole of England and Wales, yet it has only 5% of the population, so again, we will take no lectures from the Opposition.
It was this Government who first introduced substantial monitoring of storm overflows. When Labour left office, 7% of storm overflows were monitored; that figure is now 91%, and it will reach 100% in the next few weeks. I place on record my thanks—and, I believe, our thanks—to one of my Cornish colleagues, my right hon. Friend the Member for Camborne and Redruth (George Eustice), who started the process of dealing with this issue when he came into DEFRA. I do not believe we would be in the position we are in today with monitoring, or with any of the other measures, if he had not initiated that work when he first became a DEFRA Minister.
Jerome Mayhew
The Liberal Democrats often claim that they are very interested in sewage, yet they fail to mention that the water Minister between 2013 and 2015 was the former Member for North Cornwall, a Liberal Democrat. What did he do to improve the situation? Nothing.
Steve Double
My hon. Friend makes an excellent point. It was not until 2015 that the Government started to take this issue seriously and take action; it did not even happen under the coalition Government. Therefore, all the crowing from the Liberal Democrats that they regard this as a really important issue is nonsense, because when they were in government, they initiated nothing to address it.
It is clear that there is now far greater public awareness and concern about this issue, and it is much higher up the political agenda than ever before, and rightly so. Some of us, particularly in Cornwall, have been pushing for that to be the case for a very long time, so I welcome the fact that sewage discharges are now a much bigger priority and there is much greater public awareness of them. However, again, let us be frank: people are only aware of what is going on because of the increased monitoring that we have introduced. For 13 years under Labour, all of this sewage was being discharged into the sea, but no one knew about it because there was no monitoring. It is only because of the increase in monitoring over the past few years that we know what is going on.
The first step towards dealing with an issue is to know what is happening. The first step that the Government took was to introduce monitoring, and we now have the data that enables us to hold the water companies to account. Before we had that monitoring and that data, we could not hold them to account because we did not know what was going on; now, we are holding them to account. Since 2015, there have been 58 prosecutions of water companies for failing to fulfil their obligations, and £141 million has been secured in fines. That money is being invested in environmental improvements and in reducing pollution. We must always remember that under this Government, it is the water companies that get taken to court; under Labour, it is the Government who get taken to court.
We now have a plan to reduce storm overflows, which I had the great privilege of launching during my brief time as water Minister. I acknowledge that my hon. Friend the Member for Taunton Deane (Rebecca Pow) put in most of the legwork to produce that plan; I just had the glory moment of crossing the t’s, dotting the i’s and launching it. We now have a plan to invest £56 billion in upgrading the infrastructure to reduce sewage discharges, but we have to be honest with the British public. We hear comments from Opposition Members like, “Let’s stop sewage immediately; we could do it straightaway,” but that is nonsense. We are talking about Victorian infrastructure that has been in place for over 100 years: it is going to take an awful lot of money and an awful lot of time to upgrade and improve that infrastructure to address this issue. However, we now have a plan to make sure that it will happen, and we can hold the water companies to account to ensure that they make that investment and deliver on that plan.
There is also a myth—I am sure Labour Members will mention it today—that somehow Conservative Members voted to allow water companies to continue to discharge sewage. It is a lie: it is not the truth. Actually, we were the ones who brought forward the Environment Act 2021, which contains all the measures that enable us to hold the water companies to account. The Opposition did not support the Act so, if anything, they were the ones who tried to stop us taking action against the water companies, and we were the ones who voted for the Act and all the measures it contains. We need to be absolutely clear that we are the ones taking action and we are the ones taking this matter seriously.
The motion mentions directors’ bonuses. It is absolutely right that directors of water companies who fail to keep their obligations when it comes to sewage discharge and other forms of pollution should not be rewarded because of that, but we are already doing it. Ofwat has confirmed that it has the power to review both dividend payments and bonuses where water companies fail to keep to their environmental obligations. I know it is difficult for Labour Members, because they probably sit there looking at all the things we are doing and thinking, “Why on earth didn’t we do this when we were in government for 13 years?” I know it must be difficult for them, because they did absolutely nothing. They made things worse, not better, and it is this Government who are delivering on this issue.
I take this issue seriously. I have taken this issue seriously for many years—long before I came to this House—and it is right that the public are now much more aware of how important it is, but let us get real: we are dealing with it. We are taking the necessary steps to reduce the amount of sewage that will be discharged, and I welcome that. I believe that this Government will continue to deliver on our plan, and we will see things continue to improve in the years ahead.
Oral Answers to Questions
Debate between Jerome Mayhew and Steve Double(4 years, 2 months ago)
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Steve Double (St Austell and Newquay) (Con)
Jerome Mayhew (Broadland) (Con)