Water Companies: Executive Bonuses

Mike Amesbury Excerpts

Tuesday 5th December 2023 Commons Chamber

[Steve Reed]

The hon. Member can be as much as of an apologist as she likes for the filthy, toxic sewage swilling through our rivers, but her constituents will hear what she says, contrast it with what they see and draw their own conclusions when the election comes, I am sure.

Whistleblowers and leaked documents give us a very clear explanation of why the water companies are behaving in the way they are. If they downgrade and cover up sewage spills, they are rewarded with permission to increase their customers’ bills, which boosts their profits. Fewer reported spills—not actual, but reported—and more profits mean bigger bonuses for the water bosses. Profiteering from covering up lawbreaking is corruption—corruption to which this Conservative Government have turned a blind eye.

Labour will crack down on rogue water companies and strengthen regulation to clean up our waterways. We will place the water companies under special measures. As a first step, Labour will ban self-monitoring by water companies. Instead, we will require water companies to install remote monitors on every outlet, with the result overseen by regulators. That way, we will know exactly what is being discharged into our waterways. Any illegal spill will be met with an immediate and severe fine—no more delays, no more appeals, and no more lenient fines that are cheaper than investing to upgrade crumbling infrastructure. Rogue water bosses who oversee repeated, severe and illegal sewage discharges will face personal criminal liability. And we will stop the Conservatives’ disgraceful collusion in this national scandal by reinstating the principle that the polluter pays.

[Mike Amesbury (Weaver Vale) (Lab)]

I welcome those strong interventions and regulations. One of the companies the shadow Minister is referring to is United Utilities, which made 27 sewage dumps—nearly 3,000 hours of sewage—in my constituency last year. Those are only the 27 that we know about. We need strong intervention and we need to get the referee on the pitch. Ironically, United Utilities is putting bills up by £110, so I welcome those measures.

[Steve Reed]

My hon. Friend rightly expresses the anger his constituents feel. Their bills are going up to pay bonuses to water bosses who have allowed this situation to continue to deteriorate. As I said earlier, there is a proposal in the motion, which I hope Members of all parties might consider supporting, to deal with the situation and demonstrate to the chiefs of those organisations which are responsible for the sewage outpours that Parliament and the people of this country will not continue to accept what they are doing.

--- Later in debate ---

[Rebecca Pow]

I am well aware that the previous Secretary of State came to the River Wye, and my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) will know that I came to the River Wye some time before her visit—he could not make my visit—so I have some knowledge of the area, and I understand his concerns. The action plan is under way. As my right hon. Friend knows, we have had a few changes but the new water Minister, my hon. Friend the Member for Keighley (Robbie Moore), is here, and the action plan is very much on the cards. I thank the people who did all that work on the Wye, because it is not just about water and sewage; it is a very complicated issue that also brings in farming and farmers along the river, as my right hon. Friend is well aware from his involvement.

Whatever the Labour party might say, many of the problems that were vociferously raised by the shadow Minister actually started on Labour’s watch. We are where we are because of Labour’s failure to do anything about it. There was virtually no monitoring. In fact, it was Labour that allowed the water companies’ self-monitoring that the shadow Minister criticises. It was his party that started the self-monitoring.

To set the record straight, I remind the shadow Minister that the Labour Government were given legal notice by the EU on sewage discharges from overflows in Whitburn. Labour certainly did not have a glowing record when it had its opportunity.

[Mike Amesbury]

A whistleblower made serious allegations against United Utilities on “Panorama”, and the Minister mentioned monitoring. It was clearly gaming the system. What robust intervention has she so far made with United Utilities, which operates in my constituency and beyond?

[Rebecca Pow]

The hon. Gentleman is right to be concerned. As I go through my speech, he will hear all the measures that we have put in place for all the water companies, not just United Utilities.

As I said at the beginning, I want to be clear that the current volume of sewage discharged by water companies is utterly unacceptable. They must act urgently to improve their performance so that they can meet both Government and public expectations, but it is because of the monitoring that this Government required the water companies to put in place that we now know what is happening and the scale of the challenge that we face.

We have upped the pressure on the water companies so that, by the end of this year, 100% of all storm sewage overflows will be monitored. We are taking the most ambitious action in water company history to tackle sewage pollution, including using new powers and new responsibilities in the landmark Environment Act 2021, which I was proud to take through Parliament—many of the shadow Ministers obviously engaged with the Act’s passage—and there is also the additional £60 billion storm sewage overflow discharge reduction plan.

Despite saying that they care about our precious water, many Opposition Members did not vote for all these measures so that the people of this country—including you and me, Mr Deputy Speaker—can have the wonderful water and the beautiful environment that we deserve. It is through our measures that we are now holding water companies to account, in a way that has never been seen before, with more investment, stronger regulation and tougher enforcement. We will continue to go further in holding the industry accountable for its actions.