Water Companies: Pollution Penalties

Lord Forsyth of Drumlean Excerpts

Wednesday 22nd February 2023 Lords Chamber

[Lord Benyon (Con)]

The review is looking at everything. There is no attempt to resile from that figure. That figure relates to one area of sanction. It may be that we should look at unlimited fines to be decided by the courts. We are not suggesting a floor or a ceiling at this stage, but we want to ensure that water companies that knowingly, incompetently and against permitted agreements release sewage into our water and environment are sanctioned. I assure the noble Baroness that there is no attempt to resile from this.

[Lord Forsyth of Drumlean (Con)]

My Lords, am I alone in wondering how it can make sense to impose large fines on companies when investment is required and that money is no longer available, rather than holding the management and the directors responsible personally to account?

[Lord Benyon (Con)]

I think that fines have their place. Certainly, how we have changed the rules in terms of, first, how the Environment Agency can recover the costs of doing inspections and, secondly, how the fines that it recovers can be spent on the natural environment and improving it is entirely right. We are determined to see continuing investment. We have the largest investment in our water sector now: £56 billion. That will continue, but we must be able to fine those companies that breach the rules, and that is what we are doing.