Water Companies: Executive Bonuses

Debate between Munira Wilson and Steve Reed

Tuesday 5th December 2023 Commons Chamber

[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.

[Munira Wilson (Twickenham) (LD)]

The hon. Gentleman outlines very effectively all the failings of the water companies and of this Conservative Government to take action. Thames Water has been dumping billions of litres of raw sewage in the River Thames and there are hundreds of millions of litres of water leaks every single day. That has undermined trust in water companies among bill payers and our constituents. Does he agree with me that, when they have extremely controversial proposals in my constituency and in the constituency of my hon. Friend the Member for Richmond Park (Sarah Olney) to take water out of the river and replace it with treated sewage, there is a huge amount of distrust? Given the construction impacts they will cause in the area and the potential environmental impact on the river, how can people trust them when they give assurances about the safety of such schemes?

[Steve Reed]

The hon. Lady makes a very important point very eloquently. She is a tireless campaigner on these issues and I am sure that many people who care about the state of our rivers will be grateful to her for leading on that work.

I am sure all Members will be concerned about this point as well. Despite some of the highest levels of illegal sewage discharges in history, water bosses awarded themselves nearly £14 million in bonuses between 2021-22. At the same time, they were planning to increase average household bills by £156. All that was signed off by a broken regulator and Conservative Ministers. That is an absolute abuse of consumers and Labour will stop it. Labour will give the water regulator the power to ban bonuses for water bosses until they have cleaned up their toxic filth.

The Conservative dogma that regulation is anti-business is economically illiterate. Fair regulation applied across a sector is pro-business and pro-growth, as well as being pro-nature in this instance. Businesses want certainty and predictability. If they are left to compete against others who undercut regulation and get away with it, we end up with a race to the bottom. Good businesses and investors need and deserve a level playing field, but this Conservative Government have distorted that. A regulator that is too weak to regulate leads to weak self-monitoring, cover-ups, financial corruption, and our waterways awash with stinking sewage.