Water Companies: Environmental Pollution

Lord Rooker Excerpts

Tuesday 19th July 2022 Lords Chamber

Asked by

[Lord Rooker]

To ask Her Majesty’s Government what plans they have to change the penalties for environmental pollution by water companies.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, the law currently allows Ofwat to issue fines of up to 10% of annual turnover and the Environment Agency to prosecute water companies and their directors, leading to court-imposed fines. We have been clear that regulators should not hesitate to bring the strongest enforcement action where companies have broken the law. The independent Sentencing Council has agreed to review guidelines to ensure that fines, applied by the courts, remain an effective deterrent.

[Lord Rooker (Lab)]

Does the Minister support the call by the chair of the Environment Agency for prison sentences for chief executives and board members of the worst water company offenders and for their directors to be struck off, so they cannot simply alter their CV and move on to another role? The two water companies outlined last week as “terrible across the board” are Southern Water and South West Water. Is the Minister aware that the chairs and CEOs of those two companies—Keith Lough, Lawrence Gosden, Gill Rider and Susan Davy—have at least eight other roles between them? Should they not be removed from those external roles so they can concentrate on what they are being paid for—delivering clean water and cleanly getting rid of wastewater?

[Lord Benyon (Con)]

The Environment Agency is part of Defra, so absolutely I agree with what the chair of the Environment Agency said in relation to a report that was published on Thursday. I shall read a section of it:

“The sector’s performance on pollution was shocking, much worse than previous years … Company directors let this occur and it is simply unacceptable. Over the years the public have seen water company executives and investors rewarded handsomely while the environment pays the price. The water companies are behaving like this for a simple reason: because they can. We intend to make it too painful for them to continue as they are.”


That report speaks for the Government.