South West Water: Performance

Simon Jupp Excerpts

Tuesday 28th February 2023 Westminster Hall

[Simon Jupp (East Devon) (Con)]

I beg to move,

That this House has considered the performance of South West Water.

It is a pleasure to serve under your chairmanship, Sir George. I am delighted to have re-secured this important debate; colleagues will know that it was postponed from 8 February because of the President of Ukraine’s visit to Parliament. The debate is an opportunity for colleagues from across the south-west to debate the quality of our local water company and hold it to the highest possible standards.

I put pen to paper ahead of this debate after a stroll along Sidmouth beach on Sunday. The water was glistening in the sunshine as I wandered from where I live near the Byes along the River Sid to the seafront and around to Jacob’s Ladder. We must do all we can to protect our rivers and coastline, and it is in that spirit that I secured the debate, because all is not well in our waters.

Excess rainwater and sewage are ending up in our rivers and the sea from storm overflow discharges from combined sewer overflows, or CSOs. Those mechanisms are meant to be emergency safety valves to stop sewage backing up into our homes and streets but, to put it simply, the infrastructure cannot cope with the growing population and heavier storms. Our sewage systems are old, many of them dating back to Victorian times, and water companies have been relying on storm overflows far too often, without adequately addressing the issues behind their continued use. South West Water needs to invest more in infrastructure to protect the public from poor water quality, rather than protecting its company bonuses.

In recent years, a spotlight has been shone on storm overflows and CSOs. Water tourism is booming across our region, including windsurfing in places such as Exmouth and Sidmouth in my constituency. However, there is another reason why people have finally started talking about the issue: the Conservative Government have put in place a plan to improve our water, giving us all an opportunity to hold water companies to account.

Last summer, the Government published their storm overflows discharge reduction plan, which requires water companies to deliver their largest ever environmental infrastructure investment—£56 billion in total. For that, I pay tribute to my right hon. Friend the Member for Camborne and Redruth (George Eustice) and my hon. Friend the Member for Taunton Deane (Rebecca Pow). We have a plan in place, and I and other colleagues present will not be shy in holding South West Water to the highest standards.

Of course, in a perfect world, we would stop sewage spills completely and immediately. Sadly, that is virtually impossible in the short term; because of the pressure on our water infrastructure, we would risk the collapse of the entire water network, and the eye-watering costs involved mean we would need not just a magic money tree, but a whole forest. The people of East Devon are already facing the challenge of high inflation driven by Putin’s war in Ukraine. Energy bills are impacting the cost of living across the south-west, including in my constituency, and fuel and food prices have shot up over the past year.

The Government cannot in good conscience legislate to let water bills reach astronomical levels—they are already high enough, especially in the south-west—but some of our political opponents seem to think otherwise. The Liberal Democrats have accused Conservative MPs of voting to pollute our waters and seas. That is frankly ridiculous. Why would any of us vote to put sewage in the sea? I live by the sea in Sidmouth, and I love where I live. I am calling on South West Water to invest in infrastructure in our town and across East Devon.

[Anthony Mangnall (Totnes) (Con)]

It is not only ridiculous; it is incorrect. The legislation we have passed is the first ever to address this issue, and it is leading to meaningful action. Let us be clear: it is incorrect to suggest that any Member of Parliament voted to allow sewage to flow into our rivers or on to our coastline.

[Simon Jupp]

My hon. Friend is absolutely right. I am proud that the Conservative Government introduced the Environment Act 2021. It is a landmark piece of legislation that provides a domestic framework for environmental protections following our departure from the EU. It places statutory obligations on water companies to upgrade our Victorian sewerage infrastructure, and my Conservative colleagues and I fully supported the Bill so that it could become law. Let us not forget that this is the first Government in history to crack down on sewage discharges.

Political argument and debate have been pushed aside for taunts and jibes by people who really should know better. Claims have been misinterpreted and twisted in often vicious ways with, I am afraid to say, dark consequences. Those present will know that that has led to colleagues facing threats and abuse in the street and on social media. I was really upset to hear that one hon. Member recently received faeces through their letterbox as a result of this politics. That is unacceptable, and any Member here today who repeats those claims should be ashamed of themselves.

We all want healthy seas and rivers, clean bathing waters and thriving coastal environments and marine species, but previous Governments have ducked and dived on the issue for far too long—including, dare I say it, the Liberal Democrats when they were in coalition. Brushing aside attempts to muddy the water, a key reason that this issue receives so much more publicity now is that we finally have the data to hold our water company to account. In 2016, the proportion of storm overflows monitored across the network was 5%. By the end of the year—or perhaps sooner—that figure will reach 100%. We are getting a fuller picture of when and for how long each storm overflow operates.

I urge the Minister to ensure that water companies—not just those in the south-west, but across the country—maintain those monitors and fix any faults immediately. We deserve the full picture all year round. If they do not do so, the Environment Agency should step in with enforcement action—and if it needs resource, so be it. New data is shining a spotlight on the performance of water companies. We have stronger legislation, an ambitious timeframe with an eye on the cost of living, and a revolutionary level of data.

Colleagues have gathered here today to discuss the performance of South West Water in particular. I do not need to remind them that the company is currently rated one star for environmental performance by the Environment Agency; it is the joint worst in England. I know that colleagues of all political colours here today are disappointed and frustrated by that. Our communities in Devon, Cornwall and parts of Dorset and Somerset deserve so much better.

As politicians, we must do what we can to hold the leadership of South West Water to account. I have met the company many times since my election as the MP for East Devon in 2019. It is always keen to talk, and for that I praise it. Some colleagues will remember our meeting with the chief executive in Westminster in December, which I chaired. We were told that South West Water’s overflows halved from 2021 to 2022 across the bathing season. That was positive news, and not before time, but last summer was particularly dry—the Environment Agency declared an official drought across our whole region—so it may be that mother nature had the most influence on that reduction.

South West Water must be clear and transparent about its progress on its plans to reduce storm overflow discharges. It is launching an updated website with better and more timely information, which is welcome, but it did not take that decision off its own back. The Government’s storm overflows discharge reduction plan stipulates that water companies should publish information in near real time. That is further evidence that it is Conservative policies put in place by this Government that have introduced the framework that demands that water companies buck up their ideas.

However, it is not just in the corridors of Westminster that the companies have their feet held to the fire. I am pleased to be working alongside stakeholders in East Devon, including Sidmouth Town Council and many others, and I continue to press South West Water urgently to fix specific local problems as and when they crop up. I secured compensation for residents in Clyst St Mary in my constituency after foul flooding overtook the entire place, despite South West Water at first refusing to pay compensation. That was not company policy, but it certainly should be now.

Engagement between politicians and South West Water is an important first step. Under powers granted by the Environment Act, the water regulators can launch criminal and civil investigations into sewage spills. Ofwat can fine companies up to 10% of their annual turnover, which is potentially hundreds of millions of pounds, and the proceeds will now be channelled directly into work to improve water quality. That is another major step, which I very much welcome and I know that colleagues will too.

It is important to note that, as a result of those policies put in place by a Conservative Government, South West Water was fined £13 million last year alone because of missed targets. Although such financial penalties are indicative of the company’s poor performance to date, they prove that the regulator now has some teeth.

[Kevin Foster (Torbay) (Con)]

My hon. Friend has rightly outlined that one of the reasons we can have this debate and there is so much focus on this issue is that monitoring has increased so significantly. This situation has not just started in the last few years; it has been happening for decades, if not since the 19th century. It is just that we now know what is going on.

--- Later in debate ---

[Simon Jupp]

My hon. Friend makes a very good point.

I know that colleagues are awaiting the outcome of Ofwat’s investigation into water company sewage treatment works and Ofwat’s separate enforcement case against South West Water. However, we do not need an investigation to tell us that awarding massive bonuses and handing out lucrative payouts to shareholders at the same time as releasing sewage 42,000 times into our waters is grotesque. The south-west deserves so much better, and water companies such as South West Water must demonstrate a link between their performance and their generous bonuses, through Ofwat’s licencing conditions.

Given South West Water’s low environmental performance score, I am sad to say that I struggle to see why bonuses even exist within the company. We pay the highest sewerage bills in the country; our money should not be used to reward failure. The Government subsidise water bills in our region by £50 per household every year. Despite huge pressures on our public finances, that Government support will continue thanks to Conservative lobbying. However, the support is discretionary on public finances. That is why I have called on South West Water to commit to funding the support itself should it ever be withdrawn by the Government. I am sad to report that South West Water has so far refused to make such a commitment.

Colleagues will be aware that the Government recently accepted an amendment to the UK Infrastructure Bank Bill that sought to ensure that water companies set out costed and time-limited plans to reduce discharges before they receive funding from taxpayers. The Government listened to the arguments that were made and agreed. We are not playing politics with pollution; we are making sure that water companies clean up their act.

As we can see from this debate, this is clearly a cross-party issue, and I am pleased that the Government are working on it with all parties. We have the legislation, the investment plan and the means to hold water companies to account. We need South West Water to continue to step up, to invest and improve our sewage infrastructure, and to stop the sewage discharges.

I am proud that this Conservative Government have launched the toughest ever crackdown on sewage spills. Under the Environment Act, water companies are forced to embark on huge investment to update our Victorian sewage infrastructure. As I say, we are enforcing that with bigger fines of up to 10% of a company’s annual turnover, with the money raised ringfenced to improve water quality.

As I have said in this debate many times, we are holding South West Water to account. Many of us in the Chamber are working with local councillors and campaign groups to deliver better services for our constituents, improving our bathing waters, protecting our natural environment and maintaining the vibrancy of our coastal communities.

I look forward to hearing colleagues’ contributions as we debate the performance of South West Water. For me personally, its performance to date can be summed up in one word: shameful.

--- Later in debate ---

[Simon Jupp]

I thank the Minister for her laser-like focus on water quality in the south-west. Her efforts are very much appreciated, and it is good to know that the Conservative Government are sorting out solutions, not criticising from the sidelines.

The hon. Member for Tiverton and Honiton (Richard Foord) echoed concerns that I have heard from constituents in Sidmouth, West Hill, Ottery St Mary, Budleigh Salterton and Exmouth. My hon. Friend the Member for Totnes (Anthony Mangnall) outlined the steps he is taking to work with his communities to ensure that South West Water is held to account. Importantly, my hon. Friend the Member for Newton Abbot (Anne Marie Morris) highlighted the need to back up fines with investment to solve the problems that cause the fines in the first place. The hon. Member for Newport West (Ruth Jones) rightly made a plea for plugging the many leaks across the south-west. I know that South West Water is listening to this debate; it should know that we are watching closely.

Question put and agreed to.

Resolved,

That this House has considered the performance of South West Water.