Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, whether he has made an assessment of the potential merits of increasing the accountability of water company executives in the Water (Special Measures) Bill [HL].

For too long, water companies have discharged unacceptable levels of sewage into our rivers, lakes and seas. This Government is determined to ensure that executives have the right incentives to turn the performance of water companies around and agree that it is absolutely necessary to increase the accountability of water companies for wrongdoing.

That is why the Water (Special Measures) Bill will provide the most significant increase in enforcement powers for the regulators in a decade, giving them the teeth they need to take tougher action against water companies and their executives.

This Bill will ensure companies are held accountable by ensuring that imprisonment will always be available to the courts as a sentencing option where investigations by the environmental regulators have been obstructed. It will also enable automatic and severe fines for wrongdoing, making it possible for the regulators to take swift action against minor to moderate offences where currently a lengthy investigation is required.

The Bill will introduce a statutory duty for all water companies in England and Wales to publish annual Pollution Incident Reduction Plans, and associated Implementation Reports. Chief Executives will be required to approve both the plan and the report and will be personally liable for their publication.

We are also providing Ofwat with the powers to stop the payment of executive bonuses where companies breach specified standards relating to criminal liability, financial, environmental or consumer matters. Furthermore, under the new powers, Ofwat will test to ensure directors and executives meet clear standards of fitness and propriety before being appointed.