Water Bill

Debate between Joan Walley and Hywel Williams

Monday 25th November 2013 Commons Chamber

[Joan Walley]

Indeed. One difficulty is that we are looking at the provision of water for the whole of the United Kingdom, despite the different administrative arrangements that have been put in place by the Parliaments in the different Administrations. The way in which the money is reinvested in Wales is hugely beneficial. As I have said, we should be thinking outside the box in regard to how we incentivise the necessary investment in our water industry.

[Hywel Williams]

We are talking about non-distributable profit. Any profit that is made is reinvested in the system and in creating lower prices. I am not here to praise Dwr Cymru Welsh Water in particular, but its price rise next year will be 1%. Given that that is lower than inflation, it will effectively be a price cut.

[Joan Walley]

That just shows that there are all kinds of different ways of looking at this, and that we do not have to depend on the present traditional arrangements. The Bill should really be looking at the challenges that we face, rather than promoting business as usual.

With more than 2 million households in England and Wales being forced to spend more than 5% of their income on water, it is clear that the Government’s approach is not working. The Bill should do something about that. We need a national affordability scheme to help those struggling to pay their bills, and it should be funded by the water companies themselves. The fact that water bills are rising by 1.8% above the rate of inflation when we are seeing investor returns of 17.5% across all the companies demonstrates just how unfair the whole structure is.

Given the challenges of climate change and the likelihood of increased flooding, balancing affordability with our wider environmental commitments to mitigate and adapt to flooding will involve ever-greater calls for the right kind of investment in the water industry. This will require a cross-cutting response from the Government, and detailed policy measures that will require the Treasury, the Department for Business, Innovation and Skills, the Department for Education and the Department for Communities and Local Government to be equally committed to the measures coming out of DEFRA. As we approach future challenges, and the final implementation date of the water framework directive, households and businesses will need to access affordable water supplies. Key changes will be needed throughout the passage of the Bill.

The Government will need to make a step change in regulatory, social, environmental and fiscal policy, but the water companies, businesses, farmers, householders, local authorities and the regulator will also need to refocus on their long-term objectives and on delivery mechanisms if we are truly to value water as a natural resource and a vital component of everyday life.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

I will certainly bear your comments in mind, Madam Deputy Speaker. It is a pleasure to follow the hon. Member for Newbury (Richard Benyon). His beat as a Minister did not really include Wales, of course, but I came across him in the Science and Technology Committee. His sincerity and commitment were manifest in those meetings. Let me also pay tribute to the hon. Member for Stoke-on-Trent North (Joan Walley) and say how much I agreed with her remarks about sustainability and fracking, which my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) would also have endorsed had she not had to leave.

Water has a huge significance for people in Wales. Our way of looking at water must be framed by Tryweryn and the other valleys that were drowned to provide water, largely for conurbations in England. I am also aware that I am standing on the shoulders of others who came before me, such as Cynog Dafis, the Member for Ceredigion and, with due respect to my hon. Friend the Member for Brighton, Pavilion, the first Green MP —although he was a Green-Plaid Cymru coalition MP.

[Joan Walley]

I cannot help pointing out that the former Member for Ceredigion served with great distinction on the Environmental Audit Committee.

[Hywel Williams]

Indeed. I was aware of that. He is a friend of mine and I think highly of him.

My party’s stance has always been that it is up to the people of Wales to decide on the sustainable use of its natural resources. As scarcity bites, the economic case for Wales exporting water is growing. If so, Wales should be compensated fairly and the benefits should go to the people of Wales.

There is a point which has not yet been made— the territorial significance for Wales of the current water companies. Labour in government, through the Government of Wales Act 2006, failed to act on that. Much of mid-Wales is served by Severn Trent Water. Part of north-east Wales is served by Dee Valley Water. As a consequence, perhaps, part of Herefordshire is served by Dwr Cymru Welsh Water. One of the aims of my party is to regularise that situation. The lines should be redrawn. That is something that I will talk about in Committee if I am fortunate enough to be appointed to it.

As for the current arrangements in Wales, to paraphrase L P Hartley, Wales is another country: they do things differently there. That is a slightly over-used phrase, but in Wales we have a different situation. We have a water company, Dwr Cymru Welsh Water, which is a third sector company, as I mentioned earlier, with a non-distributable profits model. The previous company, Hyder —or Hi-dere, as the BBC used to insist on calling it —was run on conventional commercial lines. Glas Cymru reinvests its profits in a better system and in lower prices. As I said, its current price rises are below inflation.