Water (Special Measures) Bill [Lords]

Debate between Steve Reed and Melanie Onn

2nd reading
Monday 16th December 2024 Commons Chamber

[Steve Reed]

Absolutely. My hon. Friend makes some extremely important points. In my speech, I will be coming on to how we intend to ensure the regulator not only has additional powers but additional resources to enforce those powers.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

On compensation, sewage discharges have a massive impact on the local economy in places like Cleethorpes in my constituency, which relies on holidaymakers to support our tourist and hospitality economy. Will the compensation extend to businesses, or will those companies which are put under special measures be required to support other local businesses that are hampered as a result of sewage discharges?

[Steve Reed]

That is an important point. Polluted water does not just damage people’s health; it damages the health of local economies as well, and the compensation will extend to businesses in a way that it previously did not.

The Bill gives Ofwat legal powers to ban bonuses if water company executives fail to meet high standards. It will introduce stricter penalties, including imprisonment, when senior executives in water companies obstruct investigations by environmental regulators, and it includes provisions to allow automatic and severe fines to be imposed for wrongdoing. When increased costs are a result of penalties being issued by the regulators, for instance under the new automatic penalties regime, penalties will come out of water company profits and not from customers.