UK Infrastructure Bank Bill [Lords]

Richard Foord Excerpts

Report stage
Wednesday 1st February 2023 Commons Chamber

[Richard Foord (Tiverton and Honiton) (LD)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to discuss the following:

New clause 2—Businesses and bodies the Bank invests in—

“(1) The Bank must publish an annual report setting out—

(a) the geographical spread of businesses and bodies it invests in, and

(b) the ownership of the businesses and bodies it invests in.

(2) The Bank must prepare and publish a ‘Good Jobs’ plan for all businesses and bodies it invests in, which requires the business or body to improve productivity, pay, jobs and living standards.”

This new clause would ensure that the Bank considers the location and ownership of the businesses and bodies it invests in and only invests in businesses and bodies who create “Good Jobs” plans to improve productivity, pay, jobs and living standards.

Amendment 5, in clause 2, page 1, line 14, at end insert—

“(i) to reduce economic inequalities within and between regions of the United Kingdom, and

(ii) to improve productivity, pay, jobs and living standards.

(c) to support supply chain resilience and the United Kingdom’s industrial strategy.”

This amendment would ensure that the Bank’s objective to support regional and local economic growth includes reducing economic inequalities within and between regions and improving productivity, pay, jobs, and living standards. It would also create a third objective for the Bank to support supply chain resilience and the UK’s industrial strategy.

Amendment 3, page 1, line 14, at end insert, “, and

(c) to improve water quality in the UK.”

This amendment would add improving water quality in the UK to the Bank’s objectives.

Amendment 4, page 1, line 22, at end insert—

“(4A) The Bank may only provide any of the support listed in subsection (4) to water companies if they have produced a costed, time limited plan demonstrating they are committed to preventing discharge.”

This amendment would require water companies to have a costed, time limited plan, demonstrating they are committed to preventing discharges before they can receive investment from the UKIB.

Amendment 2, page 2, line 9, leave out “consult” and insert—

“gain the express consent of”.

This amendment would require the Treasury to gain the express consent of the appropriate national authority before making provision in regulations under subsection (6).

Government amendment 1.

[Richard Foord]

I rise to speak to new clause 1 and amendments 3 and 4.

I welcome the UK Infrastructure Bank Bill. We previously had a Green Investment Bank, founded by the Liberal Democrats in government. It was short-sighted for the Government to sell it off, especially as it made £144 million in profit for its Australian owners last year. Nevertheless, the Liberal Democrats are glad to see steps finally being taken to put the replacement UK Infrastructure Bank on a statutory footing.

Liberal Democrat new clause 1, in the name of my hon. Friend the Member for Richmond Park (Sarah Olney), seeks to ensure that this new UK Infrastructure Bank will remain in operation until the Government’s net zero and environmental commitments have been met.

I hope to see this new bank change investment in green infrastructure for the better, and this brings me to the two amendments—amendments 3 and 4—tabled in my name and those of Liberal Democrat colleagues. They seek to ensure that water companies set out costed, time-limited plans to deal with discharges before they can get funding through the bank. This is important because communities across the UK are currently being impacted by the actions of some negligent and wayward water companies. For years, we have seen these firms failing to invest in our vital infrastructure, but instead prioritising shareholder payouts and bumper bonuses for chief executive officers. It is shocking that this practice has been allowed to continue, and that the Government have resisted several attempts by the Liberal Democrats to clamp down on these sewage spills.

South West Water, which covers my patch in Devon, was awarded a one-star rating by the Environment Agency after having been found to have discharged sewage into rivers and lakes and on to our beaches over 42,000 times. This represents more than 350,000 hours of dumping, including at our prestigious blue flag beaches. Three of the 10 most affected beaches are in Devon. And what was the reaction at South West Water? It gave the chief executive a bonus of more than £1 million.

[Richard Fuller (North East Bedfordshire) (Con)]

We on the Government Benches are aware of some of the comments—if I may say so, the somewhat misleading comments—in Liberal Democrat propaganda about this issue. The hon. Gentleman is obviously familiar with the situation at South West Water. Could he tell me what the cost is to South West Water of eliminating sewage overflow, and what are the implications for water bills for residents in the south-west, because that is what the literature from his party has been saying needs to be done?

[Richard Foord]

The amendment that we are considering is about loans from the UK Infrastructure Bank. Whatever figure is required, the bank should not be permitted to release funds for the purpose of improving our sewerage system until there are plans by water companies for the system’s complete restoration.

--- Later in debate ---

[Andrew Griffith]

My hon. Friend makes an important point. It ill behoves a party that aspires to be taken seriously as a force in British politics to be all about clickbait, misleading graphics and half-truths, rather than about, for example, the data, which show that monitoring has increased from just 5% in 2016—a level at which it would be wrong for anyone to characterise themselves as having their arms around this long-standing issue—to more than 90% today. I understand from my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs that it will be 100% by the end of this year. We are the party that is taking action. We are the party that is finding the data, exposing the conduct of the water companies and putting record investment into the sector to solve this long-standing problem. We are the party that provides the solution.

The hon. Member for Tiverton and Honiton needs to consider whether he wants to be part of the problem or, as we all are, part of the solution. One of his amendments is entirely superfluous, as such a measure is already underwritten by the objectives in the world-leading Environment Act 2021. Only yesterday, we announced ambitious interim targets to deliver those objectives in our environmental improvement plan. I believe that the hon. Gentleman was in the Chamber for the statement that preceded this debate. For that reason, we will accept his amendment, because it sits within the actions that we are taking and the commitments that we have made.

Finally, the amendment tabled by the right hon. Member for Dundee East (Stewart Hosie) would require explicit consent from the devolved Administration before using powers under clause 2(6) that touch on devolved competence. However, I was pleased when his colleague, John Swinney, the acting Finance Secretary, wrote to me indicating that he was happy with the content of the Bill, and would recommend that the Bill receive a legislative consent motion. Last week, I was even more pleased—imagine my delight—when the Scottish Parliament gave the Bill an LCM. The right hon. Member for Dundee East will see that not just the Government but his colleagues suggest that his amendment is not required by the Government in Holyrood. As a result, I very much hope that he will not seek to push it to a vote.

This is an incredibly important milestone and moment in establishing a new national institution that will deliver real social purpose and make an enormous difference to the lives of our fellow citizens across the United Kingdom. Establishing it today in statute will give the market greater certainty and confidence, and encourage significant private sector investment in all of the bank’s priority sectors. By partnering with the private sector—by mobilising the life force of private capital, the ferocious, problem-solving power of business—in areas that might otherwise struggle to get the investment they require, we will help speed up the transition to net zero and level up the UK. With the exception of amendment 4, which I have indicated the Government will not oppose, I hope Members understand the reasoning—even if they do not agree—that I have set out as to why we cannot accept the amendments and new clauses and that they respect the time of the House and agree not to press them to a vote.

[Richard Foord]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 2

Businesses and bodies the Bank invests in

“(1) The Bank must publish an annual report setting out—

(a) the geographical spread of businesses and bodies it invests in, and

(b) the ownership of the businesses and bodies it invests in.

(2) The Bank must prepare and publish a ‘Good Jobs’ plan for all businesses and bodies it invests in, which requires the business or body to improve productivity, pay, jobs and living standards.” .—(Abena Oppong-Asare.)

This new clause would ensure that the Bank considers the location and ownership of the businesses and bodies it invests in and only invests in businesses and bodies who create “Good Jobs” plans to improve productivity, pay, jobs and living standards

Brought up, and read the First time.

Question put, That the clause be read a Second time:—