Water (Special Measures) Bill [Lords]

Layla Moran Excerpts

Report stage
Tuesday 28th January 2025 Commons Chamber

[Tim Farron (Westmorland and Lonsdale) (LD)]

I pay tribute to the Minister and the Bill team from the Department for Environment, Food and Rural Affairs who are in the Chamber, as well as to all my colleagues who sat on the Committee for what was a genuinely enjoyable and collegiate experience. I hope they will forgive me for making a few criticisms in the next few minutes.

We tabled 44 amendments in Committee, but only 34 today, you will be delighted to know Madam Deputy Speaker—[Interruption.] I know—I am failing. I will not speak to all of them for blindingly obvious reasons. We tabled those amendments because we in the Liberal Democrats, humbly yet enthusiastically, have taken on the mantle in this place and beyond of being the voice for many thousands of campaigners, volunteers and citizen scientists who continue to lead the way in exposing the failures and injustices in the water industry, and fighting for meaningful change. We are immensely grateful to those people all across the country.

Our water industry has become a money-making vessel for speculators, who appear to care little for the quality of our rivers, lakes and seas—something I can tell the House is a source of great fury in England’s precious Lake district. The water companies have accumulated £70 billion in debt since privatisation, while still managing to pay out £83 billion in dividends. That is more than a third of the total spent on infrastructure during that time. In the last year, water companies paid out £9.3 million in executive bonuses, and Thames Water’s bonuses doubled to £1.3 million that year. Money leaks out of the industry, infrastructure is failing, and it is our constituents who pay the price.

Meanwhile the regulatory framework has failed utterly and is not fit for purpose. As I speak, £164 million in fines has been levied against water companies by Ofwat, following an investigation that began four years ago, of which it has so far failed to collect a single penny.

[Layla Moran (Oxford West and Abingdon) (LD)]

Thames Water has had an increase in the number of pollution incidents, which went up 40% in six months last year. It has been issued with fines, but that has not changed anything. Does my hon. Friend agree that we need regulation with proper teeth, and that new clause 25 would do exactly that by putting water companies into special measures when they fail our constituents?

[Tim Farron]

I strongly agree with my hon. Friend. The water companies simply do not fear Ofwat, or indeed any other part of our fragmented regulatory system. They dwarf Ofwat in terms of resources, they flout the limited regulations that they face, and they run rings around the regulators and obviously get away with it. There was the outrage of the water companies being permitted, just before Christmas, to increase water bills by 36% by 2030, and what makes it even worse is that a third of customers’ bills are being spent just on servicing the debt—a debt that was in part run up to fund excessive dividends.

Water companies are already passing on the consequences of their complete financial mismanagement to our constituents—their customers—but this Bill could enable that to go further and to be even worse. According to the Government’s explanatory notes,

“following the provision of financial assistance by the Secretary of State to a company in special administration”,

clause 12 of the Bill, as drafted, would

“require a water company to raise amounts of money determined by the Secretary of State from its consumers, and to pay those amounts to the Secretary of State to make good any shortfall”.

In other words, when a water company goes into special administration, there is a cost to the Government of ensuring that supply is maintained, and the Government need to recoup that cost. That sounds reasonable at first glimpse, but it does not seem reasonable that bill payers should have to pick up the tab, despite bearing none of the blame for the financial mess a water company finds itself in.

My hon. Friends and I are keen to press amendment 9, which would make it explicit that it should be the creditors of the companies—the big financial investors that have loaded debt on to the water companies—that cover those costs instead. The amendment would strike out the Government’s provision in the Bill that opens up bill payers to carrying the cost of paying off company debt, even in the event of bankruptcy.

Flooding

Layla Moran Excerpts

Monday 6th January 2025 Commons Chamber

[Emma Hardy]

I thank my hon. Friend for her question and for joining the call that we held with all the different organisations on the Friday. I anticipated that I might be pushed on that question, and I have to admire her persistence on it. Of course, I understand the importance of Flood Re and of businesses having insurance. The Flood Re scheme was originally designed in a very specific way, but I am always happy to take further representations from my hon. Friend.

[Layla Moran (Oxford West and Abingdon) (LD)]

I received an email from Laura, a constituent in Abingdon. She lives in an area that has been flooded three times in the past year—in fact, there is a flood warning for the River Ock again today. She says that the flooding means she cannot sell her house—nor can any of her neighbours —as estate agents say that it must be five years dry before they will even consider it. As a result, my constituents stand to lose millions between them and some have lost jobs because they cannot move. What work is the Department doing with estate agents and the building industry to ensure that newly built houses are built well, and that houses that need to be sold can be sold?

[Emma Hardy]

As I outlined earlier, we will ensure that any new homes are resistant to flooding and, importantly, do not contribute to more flooding in other areas—that is incredibly important. I do not know the details of the area and the constituents the hon. Lady mentions—such as whether a flood scheme is ready to be developed there or they have thought about property flood resilience measures—but if she gives me more information, I will happily look at it.

Storm Bert

Layla Moran Excerpts

Monday 25th November 2024 Commons Chamber

[Steve Reed]

I empathise with the suffering that my hon. Friend’s constituents have experienced because of the recent flooding. We are reviewing the formula; we realise that it is not working as effectively as it should. Along with the floods resilience taskforce, we will be looking into how we can better improve co-ordination on the ground among the different agencies that have responsibility first for keeping people safe and then for helping communities to recover after flooding of the kind that my hon. Friend describes.

[Layla Moran (Oxford West and Abingdon) (LD)]

Residents of south Abingdon have already been flooded twice this year, and tonight there is another warning. I cannot imagine what they must be feeling. When I visited them in September, they reported feeling very alone. They had been promised a flood defence, and then the Environment Agency said that it was not value for money; they had been promised sandbanks, which then did not show up. When we asked the EA today whether it would be on the ground, it told us that it could not send enough people—not because it did not have the staff or the money, but because not enough of them had completed a workplace assessment and training on how not to be assaulted by angry residents. Of course staff safety is everything and Environment Agency workers deserve our thanks, but surely an element of common sense needs to be applied. Surely the best way to help angry residents is to be there and help them in their hour of need.

[Steve Reed]

I am grateful for the point that the hon. Lady makes. I would be happy to raise it with the chief executive of the Environment Agency to ensure that when there is an urgent need for support and staff are available to provide it, that is what happens.

Rural Affairs

Layla Moran Excerpts

Monday 11th November 2024 Commons Chamber

[Steve Reed]

No. The hon. Gentleman has already had his chance to ask a question.

The investment will help us to boost food production as we move to models of farming that are not only more environmentally sustainable but more financially sustainable, and it will help nature to recover—here, in what has become one of the most nature-depleted countries on earth, with nearly half our bird species and a quarter of our mammal species now at risk of extinction.

Our plans to upgrade our crumbling water infrastructure will help to bring in tens of billions of pounds of private investment, and will create tens of thousands of well-paid jobs in rural communities throughout the country. We will reform the planning system to build the affordable homes that our rural communities so desperately need, while also protecting our green spaces and precious natural environments. We are investing £2.4 billion over the next two years in the flood defences that the last Government left in such an unacceptable state of decay and disrepair.

[Layla Moran (Oxford West and Abingdon) (LD)]

I am extremely grateful to the Secretary of State for giving way on the issue of flooding. Anyone would welcome more money, which is desperately needed, but will he comment on the flooding formula? Many inland communities flood, but the Environment Agency continues to say that there is nothing it can do, because the flooding formula says it is not worth doing anything. Frequent flooding of smaller communities matters, too. Is the Department looking at that?

[Steve Reed]

We are looking at that, and we will be able to make proposals in due course. I know that the hon. Lady will be interested in taking part in a conversation about them when we do.

I am talking about the changes we are making more widely for rural communities. We will open new specialist colleges and reform the apprenticeships levy to help agricultural businesses and farms to upskill their workforce, and we will recruit 8,500 more mental health professionals across the NHS, with a mental health hub in every community to tackle the scourge of mental ill health in our farming and rural communities.