Oral Answers to Questions

Thomas Docherty Excerpts

Thursday 9th January 2014 Commons Chamber

[Dan Rogerson]

As I made absolutely clear to the hon. Gentleman in my previous answer, many water companies are now taking such action, but there are other things we can do to help people who are struggling with their water bills. The biggest thing we can do is to ensure that we bear down on charges for everybody. My right hon. Friend the Secretary of State has been clear in his expectations, Ofwat has been clear in the way it has entered into the price review period and companies are now responding. We will see, in the vast majority of cases, bills going with inflation or even perhaps, in some cases, going below inflation. That is a real improvement on the last price review period, given the opportunities companies have had with low borrowing.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Water bills have increased by almost 50% in real terms since privatisation, yet in the past financial year the regional water companies made £1.9 billion in pre-tax profits and paid out a staggering £1.8 billion to shareholders. Will the Minister explain why on Monday his Government rejected Labour’s proposed amendment to the Water Bill for a national affordability scheme with clear and standardised criteria set by the Secretary of State to replace the Government’s failed voluntary approach?

[Dan Rogerson]

I am happy to reiterate to the hon. Gentleman what I said on Report on Monday. His proposal to fund some sort of national affordability scheme out of excess profits relies on the regulator allowing excess profits in the first place. This Government’s robust price review period will press down. Under the previous Government, when the previous spending review took place, there was a lack of guidance. It is a very different situation now.