Water Industry: Financial Resilience

Debate between Rebecca Pow and Andy Slaughter

Wednesday 28th June 2023 Commons Chamber

[Rebecca Pow]

I thank my hon. Friend for raising the issue of bathing water quality. Since privatisation we have virtually the best quality water coming out of our taps of almost anywhere in the world. We also have phenomenal results for our bathing water areas—93% are classed as good or excellent. He has concerns about his area, but I hope those beaches will soon be back up to blue flag status. The Environment Agency works closely on individual cases where concerns have been highlighted. I am happy to put him in touch with the Environment Agency or work with him to find out what those individual cases were, so that we can get those beaches back up to the fantastic standard that they deserve.

[Andy Slaughter (Hammersmith) (Lab)]

Today, not for the first time, most of my constituents have little or no water supply. Two years ago, not for the first time, hundreds of my constituents had their homes flooded with raw sewage. Year after year, Thames Water has failed its customers while obscenely rewarding its management and shareholders. No one will miss the asset strippers at Thames Water if it goes under. All we want is working infrastructure and good customer service at a reasonable cost. Is that too much to ask?

[Rebecca Pow]

That is what we want for all our customers. That is why we have launched our plan for water to pull everything together to ensure that we deal with any pollution incidents, water supply issues and the future of the water industry. It is why we have set our targets and produced our storm sewage overflow plan, and why the water companies will have to spend £56 billion on capital investment by 2050 to address that. Every water company, including Thames Water, has to make an action plan for each of its storm sewage overflows. Thames Water will do that.

Water Company Performance

Debate between Rebecca Pow and Andy Slaughter

Tuesday 21st February 2023 Commons Chamber

[Rebecca Pow]

The answer is no.

[Andy Slaughter (Hammersmith) (Lab)]

In July 2021 several hundred properties in my constituency suffered a combination of surface and sewer flooding, some for the third or fourth time in 20 years, despite these being—according to Thames Water—one in 100-year or one in 300-year floods. Last week Thames Water wrote to the affected households saying that if their properties were at low risk, medium risk or even high risk and were subject to surface flooding, they would “not require a solution”. This constitutes appalling complacency and neglect on the part of Thames Water. What is the Minister going to do about it? In the words of my constituent Brendan Smith, Thames Water needs to be “held to account”.

[Rebecca Pow]

The issue of the surface water flooding is serious. It is all related to the ground water table coming up and influencing the whole system. It is a complicated system, and the situation obviously needs to be addressed. Thames Water is investing a great deal in cleaning up its water; as the hon. Gentleman will know, it is the company that is putting in the super sewer. That scheme, which would never have happened without the Government’s support, is a tremendous model which I believe will be copied elsewhere and will make a significant difference. However, where Thames Water has contravened its permit, it will be held to account.

Impact of Floods in North Westminster

Debate between Rebecca Pow and Andy Slaughter

Tuesday 7th September 2021 Westminster Hall

[Rebecca Pow]

I thank the hon. Lady for that intervention, and I hear what she says. Measures were put in place when the Met Office gave its warnings, but of course it was all so quick: the fire brigade swung into action, but those things that the Environment Agency could whizz into place, such as trash screens, just could not cope with that flooding or the sewage overflows and so forth. That is what the Thames tideway tunnel project is going to address, and I have a meeting with those involved later this afternoon. However, the hon. Lady is right that questions need to be asked about that new development. As she referred to, a big public meeting was held with Westminster City Council after the flooding.

[Andy Slaughter]

Will the Minister give way?

[Rebecca Pow]

I will just finish this bit and then give way. There were lots of people—the council, Thames Water, the Environment Agency and so forth. They have committed to doing this independent review, which is crucial. As Minister, I need to wait until we hear the consequences of that review and the Westminster section 19 investigation before making any further comments. I will be looking at that with interest and I will be happy to have a conversation with the hon. Lady when we have got that, because we do need to get these things right.

Of course, Ofwat is the regulator and Government set the policy. We are working on our draft policy statement to Ofwat for the next period and will be highlighting surface water flooding more than ever before, along with things like water quality and the whole sewage issue. We are doing a lot on that in the Environment Bill, as I am sure the hon. Lady knows.

[Andy Slaughter]

I am grateful to the Minister for allowing me to intrude. Thames Water has told me that the tideway tunnel, which is very welcome in preventing pollution going into the Thames, would not have helped in this situation. It would only have helped properties very near to the river, because this was high tide and therefore some water would have been let through. It would not have helped my hon. Friend the Member for Westminster North or most of my properties that way.

What would have helped is the Counters Creek flood alleviation scheme, the £300 million project which went down the middle of Kensington and Hammersmith and would have protected those two boroughs. That was cancelled by Thames Water and has not taken place. Will the Minister accept that we need an inquiry into why that did not happen and what can now be done to prevent exactly the same properties flooding on a regular basis?

[Rebecca Pow]

Of course, many different schemes are underway, but the Thames tideway tunnel is the biggest scheme we have taken part in for decades. It will address serious issues around mixing of the waters and sewage overflows in times when we get these extreme weather events. It will make a big difference. I will put your points to them this afternoon.

All flooding projects are ranked and rated according to properties protected, delivery and so forth. There is strict protocol for that. The Environment Agency is involved in trying to find out what happened at this incident. It took part in a resilience forum after this event and is very engaged in advising and helping.

I want to take the opportunity to talk about surface water. It is pertinent, because we just published an updated report on surface water management, setting out progress in delivery of our surface water management action plan. David Jenkins did an independent report on surface water and drainage responsibilities. Key highlights include Government funding to provide better surface water flood risk maps in 28 lead local authority areas by summer 2022. That site list will be crucial to the areas mentioned and those across the country, so that people know what is happening. That is what the hon. Gentleman is getting at, I think. We need a clear view of what the situation is on the ground, what is working and what else needs to be done. These flood risk maps will be really important. Improved mapping will provide over 3 million people with more detailed information about local surface water flood risk.

The Met Office and the EA are scoping out a new approach to provide faster communication for surface water flood forecasts when an incident is deemed likely, which would be helpful since people need to react very fast. Water and sewerage companies are working with other risk management authorities to produce drainage and waste water plans, ensuring that drainage and sewerage systems are resilient to withstand these future pressures. Again, Thames Water will have to do that, and it is working on that now. The Government are making these plans a statutory requirement through the Environment Bill. Weirdly, that was not statutory before, and it will be important to looking at the issues the hon. Member for Westminster North is dealing with. We are considering right now the guidance and reporting necessary to ensure timely action in areas with greater surface water flooding problems.

Alongside all that, the Government are investing more in actions to mitigate surface water flooding overall. In April 2020, we made a change to the partnership funding arrangements, which are already having an effect. In July, we published our investment plan over the next six years, which includes £860 million in investment this year to boost design and construction of more than 1,000 schemes. We are aware of the big issue and more than a third of those will tackle surface water flooding, including in London, with two schemes in Westminster. They are the Kilburn Park Road surface water scheme, which should be completed by March 2022 and will better protect 44 properties, and the Upbrook Mews surface water scheme, which should be completed by March 2025.

Alongside that, I have been given assurances that Thames Water is also taking action through its surface water programme. That is investing £3 million in partnership with five local authorities and will be investing a further £1.5 million through a wider call for projects. That project could come under the scope of the reference made by the hon. Member for Hammersmith (Andy Slaughter). It will help better manage surface water entering the sewer network and enable the implementation of a sustainable drainage system, while also creating green spaces and amenity value, because a lot of that is also linked to the schemes. I have seen some of the schemes and they are extremely welcome in neighbourhoods; they make the whole neighbourhood look and feel better while having the double-whammy achievement of helping to sort out the flood risk, the drainage and so on.

We are also working with 25 local authorities across England, investing £150 million in place-based resilience innovation projects. Some of those will include mitigating surface water and flood risk, and the outcomes will be shared with other local authorities and risk management authorities, so they can learn from those projects and—if we find something that particularly works and would apply, for example, to Westminster or Thames Water—adopt some of those measures.

In addition to the Government’s investment, water companies will be investing more than £1 billion between 2020 and 2025 to reduce the impact of flooding on communities across England and Wales. They have proposed an additional £2.7 billion of environmental investment through the Government’s green economic recovery fund. Some of those projects have been accelerated, partly owing to the impacts of covid and the lockdown, because there were so many spin-offs from those sorts of projects. A lot of those include measures such as blue-green infrastructure, natural flood management and partnership working at a catchment scale, which is important. It is not just about what is happening outside our door, but where that water is coming from and what has affected it further up the catchment. That still applies to all the London areas as well.

The Environment Agency works with lead local flood authorities to manage surface water flood risk through strategic planning, supporting the development of projects, access to Government flood and coastal erosion risk management funding and access to regional flood and coastal local levies. The regional flood and coastal committee levy plays an important role in the financial support for the development of the lead local flood authorities—all those titles are very wordy, are they not, Sir David? That can help fill the funding gap outside the direct legal lead local flood authority funds and the grant in aid, as well as paying for Thames flood advisers to provide additional service on scheme development. I know the EA teams are working with the Greater London Authority, Thames Water, Transport for London and the local authorities on sustainable urban drainage systems, flood risk, water quality and all those measures.

Our ambition is to make a nation more resilient to future flood and coastal erosion and work to manage and mitigate the effect of surface water flooding will continue at pace. I hope I have demonstrated that I mean business about this, as do the Government, contributing towards implementing the flood and coastal risk management policy statement. We are working with stakeholders on all of this. We will be undertaking a review of maintenance responsibilities to examine whether existing local buyers are efficient in ensuring local assets are maintained and expertise is shared across authorities. I think the hon. Member for Westminster North will be interested in that.

We are also reviewing with the Ministry of Housing, Communities and Local Government the policy for development in areas of flood risk. Finally, the storm overflows taskforce will make recommendations on lots of those issues as well as sustainable drainage and the sewage outlets. I hope I have demonstrated my commitment. I am always very happy to talk to the hon. Lady and I thank her for raising the subject today.

Question put and agreed to.

11.30 am

Sitting suspended.

Civil Liability Bill [Lords]

Debate between Rebecca Pow and Andy Slaughter

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 23rd October 2018 Commons Chamber

[Andy Slaughter]

It is not, because I do not know what the hon. Gentleman means by an unreasonable level of compensation—

[Rebecca Pow (Taunton Deane) (Con)]

Will the hon. Gentleman give way?

[Andy Slaughter]

Please give me a moment to answer the first point, then I will willingly give way.

I do not know whether the hon. Gentleman is saying that it is unreasonable because these injuries are exaggerated or fraudulent, or that people should not be compensated according to accepted judicial tariffs. Nobody has ever said—that I know of—that the levels of compensation that are awarded under the Judicial Studies Board guidelines are over-generous in this country. What we are doing is simply taking those realistic—some would say, rather parsimonious—levels and reducing them by a substantial degree, so I think the point is nonsense, frankly. However, I give way to the hon. Member for Taunton Deane (Rebecca Pow), who will make a much more sensible point, I am sure.

[Rebecca Pow]

On that point, from the general public’s point of view, there is a consensus that people are taken for a ride over all these claims. Many of them are encouraged to go into this system of claiming when perhaps they do not necessarily have a great case. A great deal of money is made through the legal system, and people want to see fairness. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) is absolutely right: most people’s motor insurance is going up and up to compensate. Does the hon. Member for Hammersmith (Andy Slaughter) agree that that is not fair? What we are trying to do with the Bill is to introduce fairness to a system that frankly—many people would say—has got out of control.

[Andy Slaughter]

I congratulate the hon. Lady on getting a helter skelter of nonsense into one intervention, with every prejudice and false statement that has been made in the tabloid press about these matters for about the last 10 years—well done on that. I could make a long speech dealing with the specific issues of—[Hon. Members: “Go on!] We have got time, haven’t we? No, I will not. I could go into detail about some of the myths about whiplash and soft tissue injuries and what is actually happening in relation to accidents, the insurance industry and premiums, because I have been an observer of that for a long time. However, let me limit myself to a fairly narrow point.

I have listened to the arguments from Government Members, and they are just non-sequiturs, frankly. We have heard that insurance premiums are the issue. Let us imagine that we give the benefit of the doubt there, which I certainly do not, and say that premiums are likely to fall significantly and that that is a factor relating to claims rather than to insurance companies’ profits, the other activities that they indulge in and the way that their businesses are run. I do not accept that, but let us assume that we do for a moment.

The hon. Member for Cheltenham (Alex Chalk) is no longer in his place, but he made a surprisingly illogical—for him—intervention. He said, “Look, people will still get special damages.” Of course they will get special damages, but special damages are what the name suggests—they are to compensate for specific items of loss. Why should the fact that someone still gets compensation for their loss of earnings or their medical bills, or something of that nature, mean that it is right to diminish their compensation for pain and suffering and loss of amenity? These are all non-sequiturs. The worst calumny of all is to say, “We are reducing the level of damages from slightly mean levels to absolutely parsimonious levels because of fraud”, which is exactly what we heard in relation to the small claims limit. So many members of the senior judiciary and indeed, of Select Committees, including not just the Justice Committee, but the Transport Committee, have said that it is plain wrong to say that because there may be instances of fraud, of which very few are identified, all litigants should suffer by having their damages reduced.