Water (Special Measures) Bill [Lords]

Polly Billington Excerpts

2nd reading
Monday 16th December 2024 Commons Chamber

[Steve Reed]

That is an important point. Polluted water does not just damage people’s health; it damages the health of local economies as well, and the compensation will extend to businesses in a way that it previously did not.

The Bill gives Ofwat legal powers to ban bonuses if water company executives fail to meet high standards. It will introduce stricter penalties, including imprisonment, when senior executives in water companies obstruct investigations by environmental regulators, and it includes provisions to allow automatic and severe fines to be imposed for wrongdoing. When increased costs are a result of penalties being issued by the regulators, for instance under the new automatic penalties regime, penalties will come out of water company profits and not from customers.

[Ms Polly Billington (East Thanet) (Lab)]

In evidence given to the Environment, Food and Rural Affairs Committee, Ofwat confirmed that had the measures to ban bonuses been in place earlier, the boss of Southern Water—which covers my constituency—would not have received his most recent bonus. It was Tory inaction that allowed it.

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[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

It is an honour to speak on such an important issue, one that affects my coastal constituency daily. Sewage discharges, water quality, and the related issue of flooding are among the most pressing concerns for my constituents.

The Environment Agency’s bathing water classifications, updated on 26 November, reveal alarming declines in water quality. Bognor Regis East’s classification dropped from good to sufficient, while Aldwick’s remained poor for the third consecutive year. Abuses of our water system are having a serious impact on public health, our vital tourism industry and our natural environment. However, by focusing only on water companies and sewage, this Bill delivers an oversimplified approach. There is an urgent need for holistic and comprehensive solutions to protect our waters, prevent flooding and tackle sewage discharges. This issue is not simply about water companies and sewage, but the Bill falls into the trap of focusing solely on them.

In Bognor Regis and Littlehampton, the situation is compounded by recurring flooding, which affects businesses and homes from Shripney Road and Durban Road on the boundary of the constituency to Fish Lane and Rope Walk in Aldwick and Littlehampton respectively. That flooding is exacerbated by extensive house building on our flood plain and by the local topography. Without infrastructure improvements and an integrated action plan, sewage outflows will continue to blight our coastline. Combined, these issues are causing a decline in our tourism industry, devastation to homes and businesses, increases in insurance premiums and significant financial losses for affected local businesses and employers. This is not a mild inconvenience for a few sea swimmers—although I count myself among their number—but something that affects our entire area.

As such, the Water (Special Measures) Bill is a timely opportunity to accelerate essential environmental improvements. I am concerned, though, that the Government are not sufficiently grasping this opportunity. The absence of robust enforcement measures for proposed reporting is particularly concerning. Clause 2 requires water companies to “prepare and publish” annual pollution incident reduction plans. That is a step towards greater accountability, which I welcome. However, the clause lacks enforceability and thus any purpose, as it mandates only the preparation and publication of those plans, not their implementation. As such, will the Government amend the Bill to ensure the delivery of measures set out in those reports and provide the necessary enforcement powers? My constituents, and the public, are weary of empty promises on water quality. It is essential that this Bill mandates that water companies deliver measurable improvements, not meaningless promises.

[Ms Billington]

The hon. Lady and I share concerns about the safety and health of our seawater. I just want to clarify for her that we have accepted the Lords amendment in relation to the enforcement plans, and are ensuring that those plans will be on the face of the Bill.

[Alison Griffiths]

I thank the hon. Lady for clarifying that point. Letting the Bill pass without that amendment would have been a disservice, so I am delighted to hear it.

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[Ms Polly Billington (East Thanet) (Lab)]

On new year’s day, I will, like many people in Thanet, take part in a bracing dash into the sea to raise money for worthwhile causes. However, we should not take our health in our hands as we do so. Swimming should be good for you, not a risky adventure because of pollution. Good governance might seem a long way away from the delights of sea swimming, yet we cannot safely have one without the other.

Water plays such a huge role in the history and culture of East Thanet, not least because of our fantastic beaches. Margate can claim to be the first English seaside resort—I know there are others, but we are the first. For 250 years, people have come to all three of our towns in East Thanet to enjoy the stunning scenery, breathe the fabulous fresh air and swim in the sea, but as a very wise business owner in my constituency told me, “People don’t come here to paddle in poo.” That is why I and my constituents welcome this Bill, as a great starting point in cleaning up the mess that the Conservative party has left—not a figurative mess, but a literal one in our waterways. For years, the privatised water industry has been under-investing and over-polluting while paying itself millions of pounds in bonuses. That is why the action that the Government are taking through this Bill is extremely welcome and long needed.

Residents in Broadstairs have had to cope with their water being off during a red warning for extreme heat and in the middle of winter in the run-up to Christmas, managing on bottled water, because of infrastructure failures. Bills are up, the quality of service is down, the environment is in ruins, and big bonuses fuelled by gorging on debt are being paid. The water companies argue that they may need to pay more in salary bonuses to get the best people in—well, if this is the best they can get, I will be asking for my money back. We need a fundamental change in the way our water system is run, and critically, we need more accountability to bring that change about.

I know that the Secretary of State does not want to be spending his time running the water companies. I do not want him spending his time doing that either—that is not what I am suggesting. I recommend that this accountability should be local, rather than at the national level. The new independent water commission could look into how we fine water companies that break the rules by exploring the possibility of taking company stock from them instead of money. We could put any stock in a trust held on behalf of local billpayers, who would then benefit.

It may be some time before we can be confident about enjoying our waters again—some time before our rivers and seas are restored to full health—but I believe this Bill will start the process of cleaning up our water industry. It is crucial that we get the future governance right, so that our constituents can feel confident that paddling in poo is a thing of the past.