Water (Special Measures) Bill [Lords]

Debate between Polly Billington and Steve Reed

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.

Oral Answers to Questions

Debate between Polly Billington and Steve Reed

Thursday 14th November 2024 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The independent commission on the water sector was launched on 23 October and will be chaired by Sir Jon Cunliffe. It is the biggest review of the industry since privatisation and will report next summer. It will focus on boosting investability, speeding up the delivery of water infrastructure and cleaning up our waterways.

[Ms Billington]

Southern Water is responsible for blighting beaches with raw sewage along Ramsgate, Margate and Broadstairs, yet it plans on increasing household bills by 73% over the next five years, and the chief executive officers of Southern Water have received £4 million over the last five years in bonuses and salaries. Will the new independent commission do something about this egregious situation?

[Steve Reed]

I congratulate my hon. Friend on campaigning for her local water consumers. She is right to point to the wide failings across the system. We have charged Sir Jon Cunliffe with leading a commission that will look at how we can completely reset the sector—regulation, governance and how the sector operates—so that the levels of pollution and failure under the previous Government can never be repeated.

Independent Water Commission

Debate between Polly Billington and Steve Reed

Wednesday 23rd October 2024 Commons Chamber

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

I welcome the commission announced by my right hon. Friend. Last week, six beaches in my constituency were affected by raw sewage dumping, with two of them—Joss Bay and Stone Bay—experiencing a bad effect on their bathing water quality, but the verdict was that they were still within Environment Agency permitted limits. Will my right hon. Friend confirm that the commission will investigate regulatory standards, so that when raw sewage is dumped, there is actually a fine and a punishment for the water companies? I must also make a declaration as a customer of Southern Water and a sea water swimmer.

[Steve Reed]

I thank my hon. Friend for her question. She is, of course, a well-known environmental campaigner who stands up for her constituents and for the many businesses, including tourism businesses, that are adversely affected by the appalling state of our waters. It is clear that regulation and governance have been inadequate for a long time. This is a reset moment, where we can finally strengthen those things and deliver the clean water that her constituents, mine and those of all Members across the House expect to see.