Water Bill

Sarah Newton Excerpts

Monday 25th November 2013 Commons Chamber

[Anne Marie Morris (Newton Abbot) (Con)]

The Government are to be commended for all they have done with regard to securing our water supply and trying to help our resilience in relation to flooding. I particularly pay tribute to my hon. Friend the Member for Newbury (Richard Benyon), who in his time as a Minister was a great supporter of such work. I am pleased to say that as a result I had three flood defence schemes supported locally, and I am grateful for that. The Bill is very welcome as part of a series of across-the-House measures to try to address this problem. Introducing competition in water supply is an excellent move forward. The fact that the Government have managed to negotiate the Flood Re deal is very much to their credit.

The challenge, inevitably, is in the detail. The Minister, and you, Madam Deputy Speaker, might remember that in 2005, when there was deregulation of the industry, there was a review of the so-called cost principle, which had been put in place to ensure the protection of water authorities in areas where, because of their rural nature and the distances involved, water would be very expensive to supply. It meant that rural customers did not have to bear a disproportionately high price for their water supply. That has now been removed and responsibility for overseeing the issue has been transferred to Ofwat. I am concerned that that control has been removed from the Government and politicians, so will the Minister assure me that it will work?

On flood insurance, flooding is a very key issue in my constituency and I think that a fantastic deal has been brokered, but there are challenges. The Minister will probably agree that prevention is undoubtedly better than cure. Our planning process has a number of statutory consultees, but after speaking to my local district council and the Environment Agency I understand that neither the Environment Agency nor the water companies are statutory consultees with regard to planning or connection. That means that a disaster is waiting to happen. Such consultation happens on a voluntary basis from time to time, but not regularly.

What happens, therefore, is that connections are made and the water companies have no power to make any recommendations—they certainly have no power to object—and yet, when the rain comes down, the sewers are flooded and the playing fields get covered in sewage, as has happened in my constituency, it is the water companies that have to take up the challenge of remedying the problem. I urge the Minister to consider making those bodies statutory consultees or to put in place another measure that ensures a holistic, joined-up approach so that the different bodies involved work together.

[Sarah Newton (Truro and Falmouth) (Con)]

My hon. Friend is making an incredibly important point. As chairman of the Truro and Kenwyn neighbourhood plan, I can absolutely say that this is a problem and that it would be enormously beneficial if there was a statutory obligation to consult on plans.

[Anne Marie Morris]

I thank my hon. Friend for her intervention. It is always nice to get support.

The Bill singularly fails to address the issue of tidying up the fantastic Government initiative to help South West Water bill payers with a subsidy of £50. That was incredibly welcome and it has been incredibly well received, but unfortunately, as with many such things, the challenge is in the detail. The Government proposed that, when domestic users were billed through commercial intermediaries, the benefit would, in effect, pass down the line. For example, if the owner of a park home with a number of plots applies to South West Water for the rebate, the intention is for that rebate to get passed down to local users. Unfortunately, there is no obligation on commercial intermediaries—which include not just park home owners, but housing associations and Ministry of Defence premises—and the consequence, as I have discovered in my constituency, is that a number of local residents are not benefiting. Park homes represent 2.5% of the housing stock in my district council area of Teignbridge, so this is not a small problem; it is a significant problem.

Will the Minister consider some changes that I think might resolve the problem? First, on the obligation, one of the reasons why park home owners and others are not claiming is that they say that the claim process is complex and time-consuming and that they get no compensation, so let us simplify the process. Secondly, it seems that any claim has to be validated by the district council, so why not give the opportunity to a tenant whose commercial intermediary does not claim to ask the district council—which will have the records and will know whether they are a domestic individual—to apply on their behalf to the water company and then the subsidy could simply flow through?

There is another issue: I am afraid to say that some unscrupulous commercial intermediaries will take the money and not pass it on to the individual resident. At present, the only recourse for the resident is to bring a civil action—a small claims court action—which costs, on average, £1,000. To be frank, that is completely inappropriate given the amount of money involved. From my days studying law, I remember learning that if someone takes something with the intention of permanently depriving someone else of the use of it, that is theft, which, in my book, is a crime. If not passing on the subsidy were to result in criminal rather than civil liability, that would be a measure with teeth and I suspect that those who are not minded to pass on the subsidy at present would do so.

I hope that the Minister will find those suggestions helpful. This is a good Bill. I have used up my time, but I hope that I have made my point and I look forward to hearing the Minister’s response.