Oral Answers to Questions

Nick Smith Excerpts

Thursday 27th March 2014 Commons Chamber

[Dan Rogerson]

I have a great deal of respect for the hon. Gentleman and in the past we have both been members of the all-party group on this issue. The fact is that we have excellent staff in the Environment Agency working very hard on these issues, and in the recent Budget we secured an extra £5 million to tackle waste crime. It is a priority for the Government, and we should ensure that the businesses that operate effectively, fairly and safely are protected from those that act unscrupulously. That is why we are investing extra money in tackling this issue.

[Nick Smith (Blaenau Gwent) (Lab)]

5. What steps his Department is taking to encourage water companies to introduce social tariffs; and if he will make a statement.

[The Secretary of State for Environment, Food and Rural Affairs (Mr Owen Paterson)]

The Government published social tariff guidance for water companies in June 2012, enabling the introduction of social tariffs from April 2013. Three water companies now have social tariffs in place, with a further three set to introduce them this year. Another six companies have plans to introduce social tariffs from 2015, while others are consulting with their customers.

[Nick Smith]

Ofwat says that profit margins are exceptionally high in this industry. What will the Government do to bring prices down, given the cost of living crisis in this country?

[Mr Paterson]

Unlike the last Government, we will have a robust Ofwat. Under the last Government, bills went up by 20%. We are seeing a robust Ofwat now working on the new price programme, and that will see a reduction or held prices and increased investment. A balance must be struck because we have to keep the confidence of domestic and foreign investors. A 1% increase in interest means £20 on a water bill.