Independent Water Commission

Debate between Steve Reed and Robbie Moore

Wednesday 23rd October 2024 Commons Chamber

[Robbie Moore (Keighley and Ilkley) (Con)]

I thank the Secretary of State for prior sight of his statement.

Fourteen years in opposition—and this is what the Labour party has to offer. Labour Members have had more than a decade to craft a clear package of policies, listen to campaigners and prepare to govern, yet what they have brought to the House today illustrates no sign of any ambition. This is a sign of hesitation. It is a way to delay the difficult decisions and buy themselves more time. It is part of a growing trend that unfortunately we are seeing consistently from this new Labour Government, across all Departments: announce a review, a taskforce and yet another commission, and hope the public do not notice that really they never had much of a plan at all.

That approach is simply not going to wash with the bill payers. Before the election, the Secretary of State toured the country with campaigners like Feargal Sharkey, promising radical change to the sector. He is now in power, and what has he actually achieved so far? He spent the entire election campaign telling voters that he wanted to put water company bosses in the dock, but we can see from the Government’s announcements on the Water (Special Measures) Bill that it will achieve no such thing, as campaigners and industry experts have already pointed out. Nor will the Bill provide any reassurance whatever for investors. Rather marvellously, the Secretary of State has managed not only to frustrate campaigners, but to disenfranchise investors from any long-term aspirations to invest in the sector.

The Secretary of State says that he has announced a ban on water company bonuses. Hang on: that was a policy that we brought forward in our time in government and that the Secretary of State is now attempting to reannounce and pass off as his own. It was the Conservatives who announced a ban on water company bosses’ bonuses, linked shareholder dividends to environmental performance, quadrupled water company inspections, fast-tracked investments to cut spills and launched a whistleblowing portal for water company workers to report breaches.

It is surprising to hear the Secretary of State claim that his Government are truly serious about this issue, when their proposals are less firm than the measures delivered by the previous Government. He could take real action right now by progressing the last Conservative Administration’s plans for an automatic ban on water company bosses’ bonuses when offences take place. Rehashing announcements already set in motion by the Conservative Government, putting forward policies that will not actually put more pressure on water company bosses and then simply pressing pause on a year-long review will not result in the widespread change that Labour promised its voters.

The Secretary of State acknowledges that the announced review will make no recommendations that affect the current price review ’24 process, meaning that there will be no chance of the Government considering making any significant change until 2029 at the earliest. Will he provide an outline of the timeframe associated with actual recommendations from the review being implemented and put in place? When is any real benefit from this further review, taskforce or commission likely to be experienced, not only for the water industry, in terms of infrastructure improvements, but for the bill payer and the environment? It seems to me that the Secretary of State is just kicking the can down the road with another review, another taskforce and another commission, and removing himself from any of the tough decisions.

The Secretary of State said that the review would have no impact on the price review ’24 process. Will he outline exactly when the positive impacts will come? By my calculations, it will not be until 2029 at the earliest. Will he also outline the impact of the review on the measures proposed in the Water (Special Measures) Bill? What will be done if the recommendations do not sit comfortably with the current proposals?

One cannot help concluding that the Secretary of State is out of depth on this issue, cannot deliver on the tough language that he promised in the run-up to the general election and is now doing nothing more than attempting to kick the tough decisions down the road and into the long grass. This Secretary of State seems to be all bark and no bite.

[Steve Reed]

Well, that was all a little bit embarrassing, wasn’t it? The previous Government had 14 years in power, our rivers, lakes and seas are awash with record levels of pollution, and that is all the Conservatives have to say. I took action seven days after the general election: I brought the water chief execs into my office, and we agreed that money earmarked for investment will be ringfenced so that it cannot be diverted to pay multimillion-pound bonuses to water chief execs who oversee failure in the water sector, as happened on the shadow Minister’s watch. The commission will reset the sector that the Conservatives broke, and clean up the water that they polluted. It will report to the Government in June and inform subsequent legislation.

Oral Answers to Questions

Debate between Steve Reed and Robbie Moore

Thursday 12th September 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Robbie Moore (Keighley and Ilkley) (Con)]

Sound management of water companies is of course vital if customers are to receive the high level of service they expect and environmental performance obligations are to be strictly adhered to. Some water companies are better managed than others, so will the Secretary of State guarantee that in his efforts to hold water companies to account, no offer of a regulatory easement will be provided—in other words, no permission to lower standards, relax environmental permits or reduce agreed levels of investment will be provided to any water company, no matter their financial circumstances, by the Government or the regulator?

[Steve Reed]

I will be announcing later this autumn—in just a few weeks’ time—a review of the entire water sector, including regulation. In particular, I want to make sure that regulation is as tough as possible to ensure that the practices and, frankly, the abuses that were going on can no longer happen. Part of that will be complete transparency about what is going on—on the part of the water companies, and also, I have to say, on the part of Government. It was very disappointing that, when he was a Minister, the hon. Gentleman tried to cover up the extent of sewage spills before the election, telling Environment Agency officials not to put the key figures on the front page of its environmental portal.

--- Later in debate ---

[Mr Speaker]

Order. I am not going to open up that question. We will now have the second question from Robbie Moore.

[Robbie Moore]

Thank you, Mr Speaker.

So there we have it: the Secretary of State’s first outing at the Dispatch Box, and he was not able to clearly answer the question I asked. Will the Secretary of State confirm that, in fulfilling his obligation to hold water companies to account, he will not issue regulatory easements, no matter their financial circumstances? Will he answer that question clearly right now from the Dispatch Box?

[Steve Reed]

As I have already said, we are looking to strengthen, not weaken the regulation. The regulation was inappropriate. It is not just the regulation itself, but the lack of resources the regulators have had. That is why the Water (Special Measures) Bill we are introducing will allow the regulators to claw back resources from water companies that are successfully prosecuted, so that they have the firepower to prosecute further wrongdoing by those water companies or others responsible for it.