Ofwat: Strategic Priorities

Debate between Philip Dunne and Jesse Norman

Thursday 9th June 2022 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

I beg to move,

That this House has considered the Government’s strategic priorities for Ofwat.

I wish to begin my remarks by placing on the record my thanks to the Backbench Business Committee for granting this opportunity to hold an important debate and in particular for its tolerance. The interventions of the Easter recess, the Prorogation and the recent Whitsun and jubilee mean that it is some two months since my fellow signatories, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and my hon. Friend the Member for Devizes (Danny Kruger), and I first submitted our application for this debate. I am pleased to see them both in their places today, and I hope that they will have an opportunity to contribute.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

I thought the Environmental Audit Committee’s report was a model of its kind. I noted in particular that it created this context of identifying a “chemical cocktail” of sewage, slurry and plastic. Does my right hon. Friend feel that the Government’s response adequately addressed that issue—both on the sewage side and on the wider phosphates issue?

[Philip Dunne]

My right hon. Friend tempts me to rewrite my speech from scratch. First, I thank him for his comments about our report, which was a significant body of work and the first such report of consequence for a number of years. The Government response to our 55 recommendations was one of the most positive responses to any of the reports that our Committee has prepared in the time I have served on it. We made 55 recommendations and I believe only five were rejected by the Government; the others were either accepted in whole or in part. So I think the Government have moved quite a long way in addressing these concerns, but my right hon. Friend will recognise that solving this problem is going to take decades, not days. I know that the Minister will address that in her remarks.

I was just going to thank my colleagues on the EAC for embracing and sharing my passion for the issue of improving water quality as we conducted our inquiry. We published the report in January and it made specific recommendations for the strategic policy statement on Ofwat, which provides the context for today’s debate. I will discuss that shortly.

Having been tempted by my right hon. Friend to praise the Government, or potentially not to do so, I would like to take this moment, while I am in a generous mood, to thank the Minister, the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow). I am pleased to see her in her place, responding to this debate, and I thank her for her personal commitment to this vital issue of improving water quality over the past two years. In particular, I thank her for driving her officials to work with me to amend the Environment Act 2021 and put into law many of the core elements of my private Member’s Bill, which the pandemic prevented from being debated. I am very grateful to her and I would like the House to be aware, from me, that she has moved the Government a very considerable distance on this issue.

There is no doubt that over the past two years there has been a massive awakening of public interest in the state of our rivers. The introduction under this and the previous Conservative Government of event duration monitors at water treatment plants and storm overflows and the annual publication of their findings since March 2020, has brought to public attention the appalling degree of sewage routinely spilled into our waterways by all water companies involved in the treatment side of the business.

--- Later in debate ---

[Philip Dunne]

Mr Deputy Speaker, I am rather concerned that my speech has been leaked to other Members of the House, because the Father of the House has just pre-empted my next sentence. He is absolutely right: it is appropriate that we are having this debate on the day after World Oceans Day. Of course, the devastating effect of the spillages impacts the receiving waterway, and gradually impacts the oceans as the rivers flow into the seas around us. This has a differing effect depending on the severity of the spillage, but the effect is routine, not exceptional.

Water companies were allowed to spill discharges so that they did not back up through the drainage system into people’s houses and on to our streets. The whole purpose of the licences was to allow such an opportunity in exceptional circumstances. What is so apparent from all this information is that it is routine spillages that are causing so much damage to our rivers and our oceans.

[Jesse Norman]

Sewage discharges, at least in the River Wye, on which my right hon. Friend’s report brilliantly focused, are only 25% of the problem. Phosphate leaching from fields is more like 65%. Does he feel that the Government have set an adequately ambitious target in saying that 80% of this phosphate should be reduced by 2037? I wonder whether we should go faster than that.

[Philip Dunne]

My right hon. Friend is right to refer to other polluters. If we take a look across the country as a whole, we will see that it is roughly evenly balanced between pollution from water treatment plants and storm overflows and pollution from agriculture. In the Wye, pollution is particularly prone to come from agriculture. As he knows, I am one of his parliamentary neighbours and our waterways along the whole of the Wye and the Lugg catchment are very affected by intensive poultry farming and the phosphates that it generates through spreading litter on the fields.

The Government need to join up their support mechanisms for agriculture. Now that we have left the EU, we have the opportunity through the environmental land management scheme to redirect support in a way that meets not only the objectives to ensure viable agriculture in this country, but other objectives of the same Department—the Department for Environment, Food and Rural Affairs.

I would like to see a more joined-up approach, so that we can use the mechanisms that exist, such as the sustainable farming incentive, the environmental land management scheme system and the farming rules for water to ensure that we are not only helping farmers to generate and maintain a viable business—I should declare an interest as a farmer and a recipient of the basic payment scheme at the moment—but improving our waterways. My right hon. Friend was absolutely right to raise that issue.

Sewage discharges at the scale that I have mentioned must stop. Campaigning groups up and down the country, with which I have been working, have recognised that for some time—from national organisations such as the Rivers Trust, which I have mentioned, the Angling Trust and Surfers Against Sewage, which was mentioned by my hon. Friend the Member for Worthing West (Sir Peter Bottomley), to individual catchment campaign groups such as Windrush Against Sewage Pollution, which gave powerful evidence to our Committee. All have been focused on raising awareness and urging the Government to take action to compel change in the behaviour and performance of water companies, and they are right to do so.

This is why the strategic policy statement for Ofwat is so critical: it is the primary mechanism through which the Government, via the Secretary of State for Environment, Food and Rural Affairs, are able to influence the economic regulator, Ofwat, to refocus the prioritisation of capital expenditure for the next five-year pricing period—from 2025 to 2029—of the water companies in England, which are responsible for the treatment of sewage and other waste water.

The latest strategic priority statement for Ofwat was published on 28 March, when we had originally sought to hold this debate, having previously been laid before the House in draft for the statutory 40 days. This document is therefore the critical point of influence and the device through which we in this place can persuade the Government to reprioritise Ofwat to compel water companies to act to reduce pollution of our waterways for which they are responsible.

Oral Answers to Questions

Debate between Philip Dunne and Jesse Norman

Monday 17th March 2014 Commons Chamber

[Jesse Norman (Hereford and South Herefordshire) (Con)]

1. What steps he is taking to support small contractors in military procurement.

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

I recognise that small businesses are an important source of innovation and flexibility in meeting defence and security requirements. I am determined to help small and medium-sized enterprises access defence opportunities, including standardising and simplifying our procurement systems, so from this month we are minimising the use of pre-qualification questionnaires and increasing use of standard contract templates for low-risk requirements of under £100,000.

We are regularly making progress on these and other SME initiatives, but we also need to inform the SME community that it is getting easier to do business with the Ministry of Defence, which is why we publish the SME action plan on the gov.uk website and why I am undertaking a series of regional visits to talk to SMEs, such as the excellent event that my hon. Friend hosted in Hereford on 6 December 2013.

[Jesse Norman]

I very much thank my hon. Friend for that reply and for the extremely encouraging news that he has described. There are a large number of specialist defence suppliers in my constituency in Herefordshire. They provide vital new technologies and training for the troops, but they often face huge and apparently unnecessary mark-ups and delays forced on them by the requirement to be part of prime contracts. What can the MOD do to help these companies compete more fairly?

[Mr Dunne]

I agree with my hon. Friend that SMEs have an important role to play across defence procurement, but in particular in new technologies and in training. That is why the Government are committed to increasing the proportion of our annual spend on SMEs. Last year that rose to 15% by value of all spend, with some £1 billion spent directly and £2 billion spent indirectly through larger prime contractors, but the proportion of new contracts is even greater with over a third of all new contracts placed with SMEs in each of the last three years.