Water Companies: Licence Conditions Debate
Full Debate: Read Full DebateLord Bellingham
Main Page: Lord Bellingham (Conservative - Life peer)Department Debates - View all Lord Bellingham's debates with the Department for Environment, Food and Rural Affairs
(3 months, 3 weeks ago)
Lords ChamberThe noble Baroness raises a lot of very detailed numbers in her question, but the principle of dividends for public companies is well established and every other public company produces dividends for its investors. Perhaps I might take away those thoughts and come back to her.
My Lords, may I assist the Minister? It is one thing a company paying a dividend if it makes a reasonable profit, but does he not agree that it is completely different if a company is borrowing heavily to pay a dividend? I ask him also to comment on this, because he has not done so yet: we are all for the leaders of these industries being properly rewarded, but they should not be given bonuses when their environmental duties fall short.
I entirely agree with my noble friend on that issue. Ofwat will also take forward a consultation to consider a ban on water bosses receiving bonuses when their company has committed a serious criminal breach. As part of that consultation, Ofwat will consider the criteria for a ban on bonuses. This would likely include successful prosecution for a category 1 or 2 pollution incident, such as causing significant pollution at a bathing site or conservation area.