Business of the House

Robert Halfon Excerpts

Thursday 13th June 2013 Commons Chamber

[Mr Lansley]

I am interested in the point that the hon. Lady makes and will, of course, ask my hon. Friends at the Department to respond to her. It may also be something that she wishes to raise with them at DWP questions on 1 July. She will understand completely that the Pensions Bill—I have announced the debate on that— includes the creation of the single-tier pension, which will be transformative in terms of people’s expectations of a secure income through the state pension in retirement.

[Robert Halfon (Harlow) (Con)]

Has my right hon. Friend seen my early-day motion 239 regarding the obscene behaviour of Thames Water, which has increased its profits and charged the consumer inflation-busting prices, but does not pay its corporation tax?

[That this House is disappointed that Thames Water, despite having an annual turnover of £1.8 billion, making a £549 million profit and awarding its chief executive a bonus of £274,000 in the last financial year, did not pay any corporation tax due to paying off debts to holding companies; notes that Thames Water increased its customers' bills by 6.7 per cent last year; further notes that Thames Water plans to increase water bills by a further £80 this year to pay for the Thames Tideway Tunnel; believes that Thames Water's 13 million customers should not pay more for water bills to make up for its bad financial management; and calls for Thames Water to pay tax on the real value of its profits, to stop bonus payouts until then, and for profits to be handed back to consumers for lower prices.]

May we have a statement on that, and will my right hon. Friend lobby the Treasury to introduce a windfall tax on greedy water companies and to pass the money raised back to the consumer?

[Mr Lansley]

I have seen the early-day motion to which my hon. Friend refers. He knows, as hon. Members will understand, that HMRC is vigilant in ensuring that companies, including Thames Water, pay the taxes that they are legally obliged to pay. In this context, I would add one further point that it is important to bear in mind. The benefits from investment relief and tax relief enjoyed by water and sewerage companies to encourage infrastructure investment are passed on to customers through lower bills via the regulator Ofwat’s five-yearly price reviews. Those reviews, if they are also vigilant, can ensure that those benefits do reach consumers.