Oral Answers to Questions

Jim McMahon Excerpts

Thursday 6th July 2023 Commons Chamber

[Mr Speaker]

Order. We are on topicals, folks. I call the shadow Secretary of State.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

The Tories are sinking the water industry. Since Tory privatisation, water companies have racked up debts of over £60 billion. Every day, we see 800 sewage dumps and lose over 3 billion litres of water in leaks, and what is the biggest leak of all? The £72 billion paid out to shareholders. Now Thames Water is on the edge as the money dries up. Can the Secretary of State tell the House if she believes that this is an isolated case—yes or no?

[Dr Coffey]

I have already said to the House that the Government have full confidence in the financial resilience of the water sector. I will point out that, of course, the gearing for Thames Water shot up in 2007, when Labour was in government. It is fair to say that, when a previous Secretary of State issued a strategic policy statement to Ofwat, one of the key focuses was about reducing the gearing, and that has not happened with Thames Water. Ofwat is still responsible, and I am still holding it to account on how that goes forward. However, it is very important that we do not have speculation and misinformed comments. It is critical that we get water companies through certain stages, and I am confident the Government will do that.

[Jim McMahon]

Like the industry itself, that response does not hold water. People know that Thames Water is not an isolated case: five companies are rated as being of concern by the Government’s own financial regulator. Last weekend, I wrote to the Environment Secretary setting out six key tests to safeguard bill payers, workers and taxpayers from paying the price of a failing water industry. Will she finally act to protect the national interest and commit to those six tests, and will she rule out customers having to pay twice for boardroom failures—yes or no?