Water Companies: Financial Resilience

Lord Forsyth of Drumlean Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I thank my noble friend for his very warm welcome. However, the Government have no plans to nationalise Thames Water. It would cost billions of pounds and take years to unpick the current ownership model, during which time underinvestment in infrastructure and sewage pollution would only get worse. We want to improve the situation in the water industry that we find ourselves in as quickly as possible.

[Lord Forsyth of Drumlean (Con)]

My Lords, I welcome the noble Baroness to the Front Bench, but does she accept that simply fining the water companies for not meeting their obligations just adds to the costs of the consumer? Until we do as we have done with health and safety, which is to make the directors personally liable, we will make no progress. Have the Government any plans to do this?

[Baroness Hayman of Ullock (Lab)]

The water special measures Bill that we will bring in front of your Lordships shortly is going to deliver on our manifesto commitment. As well as strengthening regulation, it is designed to make sure that the water industry will be fundamentally changed and transformed. It will ensure that water company bosses are not rewarded with bonuses if a serious environmental breach is committed. It will strengthen and enhance the ability of regulators to bring robust charges against water companies and executives when they have committed offences, including through automatic and severe fines. It will also require that water companies install real-time monitors, so that we can actually see what is going on. I also reassure the noble Lord that this is just a start.