Environmental Protection

Debate between Sally-Ann Hart and Jim McMahon

Tuesday 18th July 2023 Commons Chamber

[Jim McMahon]

If the right hon. Gentleman is excited at this point, he is going to get even more animated shortly, so he should bear with me.

What we see today is not just the result of Government inaction or an industry too focused on short-term dividend payouts, above the long-term interests of the country. More than that, it is about a system of regulation that is not just ineffective but a clear part of the problem. All the failings we see in the sector have built up in plain sight of Ofwat, as the financial regulator, and the Environment Agency—debt piling up, dividends pouring out, sewage being dumped, water leaks leading to supply shortages, and at least one water company now on the financial cliff edge. These water companies have not acted under the radar; they have done it all in plain sight, all allowed to get completely out of hand and all signed off.

We know that Ofwat already has the power today to issue unlimited fines, to curb dividends and to stop the debt mountain getting even higher. The chair of the Environment Agency spoke out against the previous £250 million cap proposed by the Government, saying at an Environment, Food and Rural Affairs Committee hearing just a few months ago:

“The previous Secretary of State suggested that the limit on penalties should increase from £250,000 to £250 million. That is a number that I believe to be higher than should be given to us for a penalty that we can impose.”

He went on to say:

“My personal view is in the £10 million to £25 million range.”

That is the chair of the agency that these powers are being handed over to for unlimited fines. In there lies the truth—watering down the threat of action and watering down the consequences, too.

Rather than going further than what was previously announced, what we see in practice is the Government going backwards, now suggesting penalties just of between 5% and 10% of the cap previously mooted. The Government know that this is not an answer to the Tory sewage scandal and, more than that, the water companies know full well that it is not either. They know it is not even business as usual. I am concerned about the very likely consequence that we will see even less money being taken in penalties and fines, as the regulator moves away from using its criminal powers to civil powers, with grubby backroom deals being struck in favour of the water companies. There is also the risk, as we have seen in the case of Thames Water, that even where water companies are found to have deliberately frustrated and misled an investigation, criminal powers to hold individuals to account are not used.

Regulators under pressure to demonstrate that this cut-price policy is delivering the goods, matched with a lack of capacity and political will to undertake criminal investigations, could well mean that offenders are let off the hook. Water bosses are already given a “get out of jail free” card, and now they will not even see the inside of a courtroom—that is what this will do. What safeguards will be in place to ensure that there is full transparency on financial penalties, to rule out cut-price discounts or dodgy deals in backrooms? Given what has come to pass, will the Secretary of State use this opportunity to give notice to the regulators that the watchdogs themselves are now being watched?

The Labour party presented a Bill to the House on 25 April that would have ended the Tory sewage scandal by 2030. That Bill proposed four crucial measures to reduce sewage discharges while ensuring that no further burden was added to household bills. First, it would have set a legal requirement for the monitoring of all sewage outlets and penalties if companies failed to monitor. Secondly, it would have introduced automatic fines for sewage dumping. Thirdly, Labour’s plan would have implemented a legally binding target to reduce dumping by 90% by 2030. Finally, it would have required the Secretary of State to publish a strategy for the reduction of sewage discharges and, importantly, regular economic impact assessments. That is a plan—that was Labour’s plan—but the Tories blocked it. They marched through the Lobby to make sure it would not get time to be debated in this House.

[Sally-Ann Hart (Hastings and Rye) (Con)]

Does the hon. Gentleman agree that Labour’s plan, let alone not being fully costed, would have tripled the bills that householders had to pay and would have seen sewage backing up in people’s homes? That is the reality of Labour’s plans; they do not want to admit it, but that is the reality.

[Jim McMahon]

Government Members seem to be under the misapprehension that our costings for the manifesto are in line with contract awards for personal protective equipment. They absolutely are not. We are of the opinion—the industry says this, as do the regulators —that our plan is affordable within the envelope of money that is currently being taken out for shareholder dividends. If shareholders can find £72 billion of our money to go out in dividends, they can find the money to fix the system and put right the wrong.

[Sally-Ann Hart]

Will the hon. Gentleman give way?

[Jim McMahon]

I will make some progress.

Since we presented that Bill to the House for debate, 40,000 sewage dumps have taken place. Labour’s plan would have ensured that polluters pay the moment they start dumping sewage, not months or years after the event, with investigations and lawyers needed to make a ruling. As such, I ask the Secretary of State whether her Department has considered the potential benefits of introducing automatic fines for sewage dumping. Does she agree that that would save regulators time and money, and do the right thing by bill payers and the environment?

It is not just the coastline that is suffering from the Tory sewage scandal: sewage, unfortunately, is closer than many believe. Our national parks, lakes and rivers—the arteries of our nation—are being sullied by Tory-sanctioned sewage dumping. This is not just an environmental crisis, or an economic one for our coastal businesses: it is about whether families can live decent and fulfilled lives.

Water Quality: Sewage Discharge

Debate between Sally-Ann Hart and Jim McMahon

Tuesday 25th April 2023 Commons Chamber

[Jim McMahon]

I will make some progress.

This is an environmental hazard, a health hazard and an economic hazard. The full scale of the billions of pounds that the Tory sewage scandal is costing our businesses and local economies is still not fully known. Why? Because the Government will not undertake an economic assessment of the impact of sewage dumping. What do they have to hide? [Interruption.] Members will like this bit—hang on. While the Secretary of State has been on taxpayer-funded jollies to Brazil, Canada, Egypt, France, Japan, Panama and the US, as shadow Environment Secretary, I have travelled to every corner of the country to hear first-hand about the impact of the Tory sewage scandal. While she has been in duty free, I have been here on duty—that’s the difference—[Interruption.] There’s more, hold on. You’re in for a bumpy ride. The next three hours will not be like first class, I can tell you that much.

I have met businesses that have been forced to pull down the shutters when sewage alerts drive people away from beaches. I have met people in Hastings who are suffering the effects of having contracted hepatitis and Weil’s disease just because they encountered sewage in the open waters. I have met community groups such as that self-organising, fundraising and monitoring the water quality in the River Kent. They are saying to the Government that enough is enough. I heard the same things in Oxford and when I met Surfers Against Sewage in Cornwall.

[Sally-Ann Hart (Hastings and Rye) (Con)]

On a point of order, Mr Speaker. The hon. Member said that he came to visit Hastings and spoke to people—he never informed me of his visit to Hastings.