Water Pollution: East Durham

Jim Shannon Excerpts

Wednesday 21st February 2024 Commons Chamber

[Grahame Morris (Easington) (Lab)]

It is quite interesting that the subject of my Adjournment debate is dirty water; it might be appropriate. I thank Mr Speaker for the opportunity to have this debate.

I want to start by correcting the parliamentary record. In a previous Opposition day debate on water quality, on Tuesday 5 December, I said:

“athletes fell ill from swimming in waters contaminated with E. coli”

and

“we know the source of the problem.”—[Official Report, 5 December 2023; Vol. 742, c. 288.]

Subsequently, in a letter dated 11 January 2024, Heidi Mottram CBE, the chief executive of Northumbrian Water, said my statement was factually incorrect. I am advised by Heidi Mottram CBE:

“The UK Health Security Agency (UKHSA) investigated the causes of illness in participants of the World Triathlon Championships Series in Sunderland, reporting in August 2023 with their preliminary findings. They found that 19 of the 31 of those affected had evidence of Norovirus infection, while the remaining samples either tested negative or were found to be positive for other infections, including sapovirus, astrovirus, and rotavirus. No evidence of E. coli O157/STEC was found, which can cause severe gastrointestinal illness. Four samples of other E. coli were found, but it was not possible to link its presence with participation in the triathlon, and these strains can be carried naturally in the gut. The UKHSA report, concludes that ‘the predominance of Norovirus makes it the most likely explanation of illness in participants.’”

I am happy to share those comments from the Northumbrian Water chief executive in the interests of fairness.

However, the Environment Agency’s sampling at Roker beach on Wednesday 26 July—three days prior to the event—showed 3,900 E. coli colonies per 100 ml, which is almost 40 times higher than a typical reading.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this debate forward. He is right about the water pollution in east Durham; he is also right to underline the medical circumstances. I, too, represent a constituency with an enormous coastline that is highly reliant on the fishing and tourism sectors. Water pollution is a vital issue because it has an impact on our environment, as well as a direct impact on livelihoods. Does he agree that it is imperative to have Government support to deal with small pockets of pollution before they turn into large-scale environmental crises and medical problems, like those he referred to? To make that happen, it takes funding and a Government initiative.

[Grahame Morris]

I thank the hon. Gentleman for that intervention. My personal belief is that the privatised water companies have more than sufficient resources to address the issues if they prioritise infrastructure repair work and do the job that we, as customers, pay them to do.

I am sure that the hon. Gentleman will be more than familiar with this, but in previous debates we heard about correlation and causation: one is a kind of coincidence, and the other is a direct link between one event and another. The samples I referred to, which were 39 times above the average level, were not in the body of the water that was used for the swim. That is absolutely correct. I am therefore sure that it is only a coincidence that high levels of E. coli were detected in a body of water near the swim event. There are no such things as tidal movements, are there? I do not know if they have them in Northern Ireland. There are no such things as prevailing winds, which would move a large body of E. coli into the swim area. I refer to the comments of the Australian triathlete Jake Birtwhistle. They are slightly unparliamentary, but he said:

“Have been feeling pretty rubbish since the race, but I guess that’s what you get when you swim in” —

S-H-1-T—

“the swim should have been cancelled.”

I hope Mr Birtwhistle is reassured by the comments of Northumbrian Water that the high levels of E. coli detected in the waters near to where the swim event took place had nothing to do with the sickness he experienced on the day of the racing.

I am disappointed that, in her letter to me, Heidi Mottram CBE failed to address any of the other issues that were raised in the debate on Tuesday 5 December. They included the issues of debt and dividends, investment, and how to regulate water companies to implement some level of corporate responsibility. The Guardian, which studied financial documents of all the privatised water companies from 1990 to 2023, said that Northumbrian Water is far from the worst-performing water company, which I think makes the following statistics really rather worrying. The Guardian found that 19% of Northumbrian Water’s consumer bill is spent servicing debt. The debt owed by Northumbrian Water is £3.5 billion. Over the same period, it paid £3.7 billion in shareholder dividends. Does the Minister think it is acceptable to use debt to pay shareholder dividends? As a consumer I am outraged, as I am sure are a large number of my constituents.

If this were any other product or service, I could choose to change suppliers. Even in the rail industry—heaven knows, I have been a critic of poor service—I at least have the opportunity to highlight to Ministers failing train operating companies and to advocate that they should be stripped of their contracts for failing to deliver for the travelling public. But water is unique. I can think of no other essential public service that has been privatised where there is no consumer choice or accountability. Water is a private monopoly and a natural monopoly that is essential for life. It is vital national infrastructure. The Government are entitled to impose a strict level of oversight and scrutiny.

It will come as no surprise to the Minister, I am sure, that I personally believe that water should be publicly owned, run in the national interest and deliver public policy goals. However, I accept that neither the Conservatives nor my own Labour Front Benchers have an appetite for a publicly owned water industry, so I want to propose an alternative. First, end the use of debt to pay for dividends. Secondly, prohibit the payment of dividends until debt goals are met. Any profit in the system must go towards water sewerage infrastructure and lowering debt.

Water companies are major polluters. Although Northumbrian Water is adamant about the Sunderland triathlon, there is no doubt that it is routinely polluting rivers and seas. In my constituency, the Safer Seas and Rivers Service app shows that there are three sewage overflows in my constituency, from which there were 184 sewage discharge alerts in 2023—almost one every third day. Northumbrian Water is not limiting these sewage overflows to rare and extreme weather conditions; it a matter of routine disposal of waste. My third proposal is that there should be no dividend payments until clean water targets are met. We need all available resources going towards improvement, upgrades and new infrastructure.

The promise of privatisation is always about improved standards, lower bills and more consumer choice, but experience suggests that the reverse happens: we get lower standards, higher bills and no choice. Therefore, the Government should put an expectation, or indeed a requirement, on private monopolies to deliver for the taxpayer. I am not telling the Government to block profits and shareholder dividends forever—quite the reverse. Private water companies that deliver public policy goals and lower consumer bills, and that make real profits rather than artificial profits funded through debt, could reasonably argue that they deserve to be rewarded, but I have no trust or confidence in the private sector to deliver essential public services in the public interest.

The list of disasters is there for all to see, and it is far longer than just water. It includes probation, prisons, NHS dentistry, bus services, rail, social care, Royal Mail, the Post Office Horizon scandal and energy. Everything seems to be broken, and there are no-risk rewards for the private sector. Failure does not affect companies, with services and contracts handed back, even when they fail to deliver, having already extracted their profit. The Government take a hard line against the poorest in society, with stringent rules, benefit sanction regimes and limits on social security. However, when it comes to billions of pounds of public contracts, they allow the taxpayer to be exploited and systematically milked. Frankly, it is not acceptable.

If the law does not allow the Government to hold failing companies accountable, we must legislate and change the law. I believe that we need a corporate responsibility Bill—a Bill with teeth—to ensure that the Treasury is the guardian of public money, not a cash point for corporate greed and irresponsibility. Our water companies are the epitome of corporate greed and irresponsibility. As an industry, they have extracted immense profits while ramping up debt and failing to invest in order to end the dumping of raw sewage into our rivers and seas. Where is the risk? It lies not with these irresponsible companies, but with the taxpayer. When a company collapses under the weight of its debt after decades of underinvestment, who has to step in? The taxpayer, who is forced to clean up the mess of corporate irresponsibility and get these services up and running to an acceptable standard, only for a Conservative Government to sell them off again.

I am deeply sceptical. Water is privatised, with companies collecting their rewards and paying out dividends. However, there is no free market; there is a private monopoly. As a consumer, I am appalled that, at the first sight of rain, our local network hits peak capacity and sewage is dumped into our rivers and seas. I want to penalise water companies that fail to protect our environment. If their business is clean water, the product of our privatised water companies is defective.

The Government can continue to back corporate greed over public interest and maintain an indefensible system of privatisation that denies the public consumer choice, which is the ultimate tool of accountability. But I hope the Minister will explain to my constituents how he will deliver a zero-waste, zero-pollution policy and end the routine dumping of raw sewage on the east Durham heritage coastline.