Ofwat: Strategic Priorities

Jesse Norman Excerpts

Thursday 9th June 2022 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

I beg to move,

That this House has considered the Government’s strategic priorities for Ofwat.

I wish to begin my remarks by placing on the record my thanks to the Backbench Business Committee for granting this opportunity to hold an important debate and in particular for its tolerance. The interventions of the Easter recess, the Prorogation and the recent Whitsun and jubilee mean that it is some two months since my fellow signatories, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and my hon. Friend the Member for Devizes (Danny Kruger), and I first submitted our application for this debate. I am pleased to see them both in their places today, and I hope that they will have an opportunity to contribute.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

I thought the Environmental Audit Committee’s report was a model of its kind. I noted in particular that it created this context of identifying a “chemical cocktail” of sewage, slurry and plastic. Does my right hon. Friend feel that the Government’s response adequately addressed that issue—both on the sewage side and on the wider phosphates issue?

[Philip Dunne]

My right hon. Friend tempts me to rewrite my speech from scratch. First, I thank him for his comments about our report, which was a significant body of work and the first such report of consequence for a number of years. The Government response to our 55 recommendations was one of the most positive responses to any of the reports that our Committee has prepared in the time I have served on it. We made 55 recommendations and I believe only five were rejected by the Government; the others were either accepted in whole or in part. So I think the Government have moved quite a long way in addressing these concerns, but my right hon. Friend will recognise that solving this problem is going to take decades, not days. I know that the Minister will address that in her remarks.

I was just going to thank my colleagues on the EAC for embracing and sharing my passion for the issue of improving water quality as we conducted our inquiry. We published the report in January and it made specific recommendations for the strategic policy statement on Ofwat, which provides the context for today’s debate. I will discuss that shortly.

Having been tempted by my right hon. Friend to praise the Government, or potentially not to do so, I would like to take this moment, while I am in a generous mood, to thank the Minister, the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow). I am pleased to see her in her place, responding to this debate, and I thank her for her personal commitment to this vital issue of improving water quality over the past two years. In particular, I thank her for driving her officials to work with me to amend the Environment Act 2021 and put into law many of the core elements of my private Member’s Bill, which the pandemic prevented from being debated. I am very grateful to her and I would like the House to be aware, from me, that she has moved the Government a very considerable distance on this issue.

There is no doubt that over the past two years there has been a massive awakening of public interest in the state of our rivers. The introduction under this and the previous Conservative Government of event duration monitors at water treatment plants and storm overflows and the annual publication of their findings since March 2020, has brought to public attention the appalling degree of sewage routinely spilled into our waterways by all water companies involved in the treatment side of the business.

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[Philip Dunne]

Mr Deputy Speaker, I am rather concerned that my speech has been leaked to other Members of the House, because the Father of the House has just pre-empted my next sentence. He is absolutely right: it is appropriate that we are having this debate on the day after World Oceans Day. Of course, the devastating effect of the spillages impacts the receiving waterway, and gradually impacts the oceans as the rivers flow into the seas around us. This has a differing effect depending on the severity of the spillage, but the effect is routine, not exceptional.

Water companies were allowed to spill discharges so that they did not back up through the drainage system into people’s houses and on to our streets. The whole purpose of the licences was to allow such an opportunity in exceptional circumstances. What is so apparent from all this information is that it is routine spillages that are causing so much damage to our rivers and our oceans.

[Jesse Norman]

Sewage discharges, at least in the River Wye, on which my right hon. Friend’s report brilliantly focused, are only 25% of the problem. Phosphate leaching from fields is more like 65%. Does he feel that the Government have set an adequately ambitious target in saying that 80% of this phosphate should be reduced by 2037? I wonder whether we should go faster than that.

[Philip Dunne]

My right hon. Friend is right to refer to other polluters. If we take a look across the country as a whole, we will see that it is roughly evenly balanced between pollution from water treatment plants and storm overflows and pollution from agriculture. In the Wye, pollution is particularly prone to come from agriculture. As he knows, I am one of his parliamentary neighbours and our waterways along the whole of the Wye and the Lugg catchment are very affected by intensive poultry farming and the phosphates that it generates through spreading litter on the fields.

The Government need to join up their support mechanisms for agriculture. Now that we have left the EU, we have the opportunity through the environmental land management scheme to redirect support in a way that meets not only the objectives to ensure viable agriculture in this country, but other objectives of the same Department—the Department for Environment, Food and Rural Affairs.

I would like to see a more joined-up approach, so that we can use the mechanisms that exist, such as the sustainable farming incentive, the environmental land management scheme system and the farming rules for water to ensure that we are not only helping farmers to generate and maintain a viable business—I should declare an interest as a farmer and a recipient of the basic payment scheme at the moment—but improving our waterways. My right hon. Friend was absolutely right to raise that issue.

Sewage discharges at the scale that I have mentioned must stop. Campaigning groups up and down the country, with which I have been working, have recognised that for some time—from national organisations such as the Rivers Trust, which I have mentioned, the Angling Trust and Surfers Against Sewage, which was mentioned by my hon. Friend the Member for Worthing West (Sir Peter Bottomley), to individual catchment campaign groups such as Windrush Against Sewage Pollution, which gave powerful evidence to our Committee. All have been focused on raising awareness and urging the Government to take action to compel change in the behaviour and performance of water companies, and they are right to do so.

This is why the strategic policy statement for Ofwat is so critical: it is the primary mechanism through which the Government, via the Secretary of State for Environment, Food and Rural Affairs, are able to influence the economic regulator, Ofwat, to refocus the prioritisation of capital expenditure for the next five-year pricing period—from 2025 to 2029—of the water companies in England, which are responsible for the treatment of sewage and other waste water.

The latest strategic priority statement for Ofwat was published on 28 March, when we had originally sought to hold this debate, having previously been laid before the House in draft for the statutory 40 days. This document is therefore the critical point of influence and the device through which we in this place can persuade the Government to reprioritise Ofwat to compel water companies to act to reduce pollution of our waterways for which they are responsible.

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[Daisy Cooper (St Albans) (LD)]

I congratulate and thank the right hon. Member for Ludlow (Philip Dunne) for all his campaigning on this issue. I am pleased to have supported a number of his initiatives in this place. That said, it is extraordinary that we are still having to debate this subject—that we are having to talk about measures to prevent and reduce the discharge of raw untreated sewage into our rivers, our lakes and our chalkstreams and on to our beaches. This is just so obviously wrong and it is extraordinary that we are still having to talk about it.

Let me start with a stark contrast. England’s water company bosses have awarded themselves almost £27 million in bonuses over the past two years, despite those companies pumping out raw sewage into waterways 1,000 times a day. That, too, is obviously wrong. Liberal Democrats have demanded a sewage bonus ban to ban future bonuses until sewage dumps stop. We want to stop water company executives being paid a penny in bonuses until waterways are protected from these outrageous sewage dumps, and those bosses should be made to hand back the millions of pounds that they have already received in bonuses until they clean up the mess.

What is the scale of the problem that we are dealing with? In 2020, water companies discharged raw sewage into waterways 400,000 times, which amounts to more than 3 million hours of discharge. The longest discharges lasted for more than 8,000 hours. Just 14% of the UK’s waterways are in a good ecological condition and more than half of England’s rivers failed to pass the cleanliness tests. We have a duty to protect our natural environment, but water companies, Ofwat and, I am afraid, the Government have failed to hold water companies accountable for dumping sewage into waterways.

New analysis of Environment Agency data has revealed some shocking statistics. In the south-west, South West Water dumped sewage into local rivers for a staggering 19,095 hours last year. Across the region, it released sewage into rivers and on to beach fronts 43,484 times and for more than 350,000 hours. The data reveals that that includes raw sewage being discharged for more than 3,700 hours into the River Otter, more than 1,800 hours into the River Exe, and more than 1,400 hours into the River Axe.

The situation is not much better in the east of England in Hertfordshire. My constituency of St Albans is home to the River Ver, which is a rare and precious chalk stream. It should run clear, but last year, the volunteers of the Ver Valley Society and the river wardens took photographs at the source of the river that showed sewage, sewage fungus and plastic tampon applicators—all at the source of our beautiful river.

Shocking data revealed by the Rivers Trust shows that the sewer storm overflow at Markyate waste water treatment works, operated by Thames Water, discharged untreated raw sewage into the River Ver as many as 139 times for a total of 2,642 hours during 2021. Another wastewater treatment works at Harpenden, just up the road from St Albans, also run by Thames Water, recorded 13 spills for a total of 120 hours into the River Lea.

Where on earth is Ofwat? I think it has now been called “Ofwhere” by some environmental charities. It is sitting on its hands and simply missing in action. It has fallen to an environmental group called Wild Justice to take it to court to try to encourage it to use the powers that it already has to regulate sewage discharge.

I am disappointed that the Government have not taken on more of Opposition Members’ ideas. For example, during the passage of the Environment Act, Liberal Democrats supported an amendment to make it harder for sewage dumps to happen and to ensure that DEFRA produced a storm overflow discharge reduction plan. It is disappointing that the Government whipped against that amendment. During the passage of the Animal Welfare (Sentience) Act 2022, Liberal Democrats tabled an amendment to name and shame the water companies found to dump sewage in rivers, which leads to animals being killed. Again, it is disappointing that the Government actively whipped against that amendment. My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) has introduced a Sewage Discharges Bill to end the sewage scandal in rivers and protect animals, and I urge the Government to support it.

As I said at the beginning, it is deeply disappointing that we even have to have this debate. Our lakes, beaches, chalk streams and rivers are utterly vital to our British ecosystems, and all of us must do everything to protect them. Despite discharges of untreated waste only being permitted in so-called exceptional circumstances—for example, after extreme rainfall—these releases from water treatment companies are becoming routine.

Water companies must work to minimise sewage discharges into our rivers and lakes, so I call on the Minister to consider a number of things. I would like the Government to set meaningful targets and deadlines for water companies to end sewage discharge. I would like the Government to introduce a sewage tax on water company profits to fund the clean-up of our waterways. I would like the Government to reduce the number of licences given to water companies permitting them to discharge sewage into our rivers.

[Jesse Norman]

Does the hon. Lady share my view that one of the things the Government should closely consider is the idea of a national rivers recovery fund so that fines that have been paid can be used to remedy all of the pollution that has created them? At the moment, small fines go back into redress for pollution, but large ones go to the Treasury. My former colleagues will not thank me for it, but there is a case for a wider national recovery fund for rivers.

[Daisy Cooper]

I thank the right hon. Member for his intervention, and I think that is an exceptionally good idea. I am certainly open to any idea that effectively makes these water companies cough up to clean up the mess they have made. I would happily have a conversation with him to see how we can advance such a suggestion.

In addition, I would like the Government to add members of local environmental groups to water company boards. Some of our river volunteers, certainly in St Albans, are themselves experts—they know these rivers inside out—and they should have a voice and a role on water company boards.

I would like to see Ofwat using its existing powers to tackle the discharge of raw sewage, but I also want Ofwat’s powers to be strengthened, and I will give two or three quick examples. I do think that the Government could give Ofwat the power to force water companies to make repairs and investments to reduce sewage discharge. Ofwat could have the power to ban companies from giving bonuses to their executives until this mess has been cleaned up, and Ofwat should have the power to force companies to publish the number of sewage discharges more regularly than just once a year.

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[Sir Charles Walker (Broxbourne) (Con)]

I thank my right hon. Friend the Member for Ludlow (Philip Dunne) for everything he has done. I say that as one of his parliamentary colleagues, but also as a passionate angler for the past 51 years of my 54-year life; and the other three were wasted. I am chairman of the all-party group on angling and I am chairman-elect of the Angling Trust, a position I will take over in September this year.

I agree with my right hon. Friend: I am sick and tired of water companies, and the slurry spreaders and egg farmers, pumping sewage into our rivers and watercourses. I am familiar with the Wye valley, and I share the sense of outrage of my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) at what has happened to that river and what continues to happen to that river. Ofwat needs to get with the programme. Yes, consumers want to have water priced at a level they can afford, but consumers now also want to protect the environment that they enjoy.

There was an article in Monday’s Times which said that 98% of the swimming locations in Austria—about 50 places—are of an excellent standard and meet the highest levels of quality. We would be lucky to find one place in England where it is safe to swim; in fact, there is only one place.

[Jesse Norman]

My hon. Friend is so familiar with Herefordshire and the angling there that he needs no encouragement from me, but may I remind him that part of the problem with the Wye is that it crosses the border so there is an impunity in that Wales can avoid having regulatory involvement and leave the muck to come down to Herefordshire? Does my hon. Friend agree that an all-river strategy with some commissioners, as there have been since the 18th century on the Tweed, might be a solution to the problem?

[Sir Charles Walker]

My right hon. Friend demonstrates huge knowledge because the Tweed does indeed have commissioners and that works. The Tweed has its own problems but they are not on the same scale as those of the Wye and our right hon. Friend the Secretary of State for Wales is currently talking to the Angling Trust and will be working with the Welsh Government to try to find a way forward.

You might not know this, Mr Deputy Speaker, but anglers are the canaries in the coalmine; they are the first to raise the alarm when there is a pollution incident. In 1948 the Anglers’ Cooperative Association was established, by a visionary called John Eastwood, to take legal action against polluters. In 2009 it became Fish Legal, and it has some fantastic lawyers who go after the polluters, and that is what we need, because I am fed up as an angler. I am going to say something that might be out of order, and you might demand that I retract it, Mr Deputy Speaker: if any high net-worth individuals want to make a contribution to cleaning up our rivers and streams, they should visit the Fish Legal website and see how they can make a donation to fund its legal work, because it does go after the polluters and it does win judgments, and those judgments go back to the angling clubs and watercourses that have been polluted.

Of course we should have a rivers restoration fund; that is what we need. It is outrageous that when a water company is fined £120 million an almost meaningless reduction is made to people’s bills—one that they would not notice—with the balance of the money invariably going back to the Treasury, as my right hon. Friend the Member for Hereford and South Herefordshire pointed out. We should use that money to clean up the rivers and watercourses that have been damaged by the pollution.

I have little more to add to this debate. I just want to say that the patience of colleagues here and of the constituents we represent has been stretched to breaking point. The Government have made progress but something needs to happen. We must go after the polluters, be they farmers or water companies; Ofwat has to get with the programme and we have to persuade them, by law through the courts through fines, to change their practices.