Water Companies: Regulation and Financial Stability

Roz Savage Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Dr Roz Savage (South Cotswolds) (LD)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. Clean water is a fundamental human right, so the exploitation by our water companies at the expense of the British taxpayer is deeply offensive to me and to my South Cotswolds constituents. It adds insult to injury that the same companies now expect taxpayers to foot the bill for improvements they should have prioritised over CEO bonuses and shareholder dividends. Since privatisation, shareholders have extracted a staggering £85 billion from the water and sewerage system in England and Wales. In my constituency, where the River Thames rises, Thames Water pumped sewage into the River Coln in Fairford for 3,391 hours—the equivalent of four and a half months—in 2022. Incidents that are meant to be exceptional happen on average more than three times a week. Dog walkers no longer feel comfortable walking their dogs along the riverbanks after one dog jumped into the water, got sick and died two days later. Across the constituency, sewage is flooding into houses and gardens and schools. That is simply unacceptable.

We need an ambitious, long-term, financially and environmentally responsible vision for our water industry as an essential—literally vital—public good, and that vision must be orientated towards good, clean water. Back in 2013, I was campaigning for the London super-sewer, paddling around under Putney bridge and looking appalled at the tampons and other solid waste coming out of an overflow under the bridge. It has taken more than 11 years to open even the first section of the London super-sewer. The best time to fix this crisis would have been 30 years ago, but the second-best time is now.

I am not letting water companies off the hook for a moment, but I would like to say that the vision must embody a holistic approach to water management. Housing developers can capture rainwater to reduce run-off. Farmers have a key role to play in keeping agricultural contaminants out of our rivers. We need action to stop forever chemicals from plastics and pharmaceuticals getting into our rivers and streams.

In short, we need to stop the incessant pollution of our natural world. Water connects everything. Clean water nourishes all life, while dirty water pollutes everything it touches—from otters, kingfishers and crayfish to our pets and ourselves. We need to put nature back at the heart of our decision making, as called for in my Climate and Nature Bill. The Liberal Democrats propose transforming water companies into public benefit companies—no more excessive bonuses and no more prioritising shareholders over customers. We would also like to see local environmental groups given a voice on water company boards. Some countries have even granted legal personhood to rivers, including the Whanganui river in New Zealand, the Atrato river in Colombia and the Magpie river in Canada. Potentially, we could have a person representing the river itself sitting on a corporate board.

The time is now to take bold steps to improve water company governance, invest in our infrastructure and protect our precious water resources for generations to come.