Asked by
To ask Her Majesty’s Government what steps they are taking to
reform the United Kingdom’s water industry.
The Parliamentary Under-Secretary of State, Department for
Environment, Food and Rural Affairs () (Con)
My Lords, this Government have made improving water quality a
priority and have introduced reforms to enable that. The
Environment Act has modernised water resource planning,
introduced new duties to reduce storm overflow discharges, and
made drainage planning statutory. The draft strategic policy
statement to Ofwat has set a new course so that the industry can
deliver more for the environment, customers and the climate. If
we do not see improvements, we will take further action.
(Lab)
My Lords, the Minister mentioned the Environment Act. This Act is
ineffective because it has no set timetable or targets to clean
up our water. There has been a stream of reports calling for
action, all of which call for infrastructure investment by the
water companies and for more action and less complacency from the
regulator. But, after increasing dividends and company debt, most
water companies are in no position to carry out the necessary
investment. Indeed, one industry executive said that the water
companies were spending more on maintaining their assets, which
are deteriorating, rather than replacing them. Does the Minister
agree that this situation is a danger to public health and risks
creating our very own homegrown pandemic?
(Con)
Water companies have invested £160 billion in a modernised
infrastructure. I disagree with the noble Lord about the
Environment Act; it sets out a very clear direction of travel for
water companies and others to clean up our waterways. But I refer
him to the strategic policy statement to Ofwat. It has been
released in draft and will be laid before the House in the next
few weeks, and it will add to it targets for improvement.
(Con)
My Lords, our basement flat in Westminster has twice been flooded
seriously with sewage-contaminated water as a result of the water
companies opening their sluice gates at times of heavy rainfall.
The cost of renovating the flat and its contents has been
expensive. Going forward, surely property owners need to have
renovation costs financed by the relevant water companies.
(Con)
I am sorry to hear about the noble Lord’s problems. The overflows
into the Thames are activated by relatively small amounts of
rainfall. That is why £1.4 billion is being spent on a new
super-sewer, which will deal with those sewage overflows and, I
hope, limit the problems to Thames Water bill payers.
(PC)
My Lords—
(Con)
I apologise to the noble Lord. The noble Lord, of Cheltenham, has indicated his
wish to speak virtually, and I think this might be a convenient
time.
of Cheltenham (LD) [V]
My Lords, Seven Trent and Wessex Water told Gloucestershire
county councillors that they had no plans to ever stop dumping
sewage, while Thames Water said it intended to stop only by 2050.
None of the companies believes that the Government’s Environment
Act will change their behaviour. Is this another example of how
arrogance, indolence and ignorance freeze the government machine,
while our rivers are polluted with raw sewage and water companies
rake in the profits? Should we not freeze water bills and
directors’ pay and ban dividends until the problem is stopped
once and for all?
(Con)
I believe the noble Lord will find that, if these water companies
think that the provisions of the Environment Act and in the
statutory policy statement by Ofwat mean that they will be able
to carry on releasing sewage at the current level, they have a
very serious other think coming.
(PC)
My Lords, the Minister will be aware that the Question relates to
the United Kingdom dimension. He will also be aware that water is
largely devolved as far as Wales is concerned. In fact, the main
provider in Wales is a not-for-profit company. In these
circumstances, will he ensure that any new policy initiatives he
might be contemplating will be undertaken only after full
discussion with the Welsh Government to ensure that there is
co-ordination, particularly along an open border, where there is
responsibility on both sides by both authorities?
(Con)
The noble Lord makes a very good point. Many water issues cross
the border, not least the polluting of rivers on either side of
the border. They require a very joined-up approach, not just
between Governments but between water companies and farming
interests.
(Lab)
My Lords, is it not the case that our rivers are an absolute
disgrace and the worst in Europe? Do we not need to sack the
regulator and his group, introduce new legislation and have a
Government who back the regulator?
(Con)
This Government and the regulator are absolutely determined to
see an improvement to the situation of sewage being released into
rivers. Part of that problem is releases of sewage from water
companies, part of it is from farming and part of it is from
point-source pollution. It requires a holistic approach. I refer
the noble Lord to the statutory policy statement, which has been
released in draft and will be laid before Parliament in the next
few weeks. It will give him the assurance I think he requires.
of Ullock (Lab)
My Lords, there also needs to be proper enforcement regarding
water quality. The Environment Agency has seen its funding cut by
60% in recent years, reducing its capacity to carry out
monitoring and enforcement activity. Prosecutions for
environmental crime in England plummeted by 86% between 2000 and
2019 and the number of charges also fell by 84%. Does the
Minister recognise that, if the Government truly are serious
about tackling pollution in our rivers, they must fund the
Environment Agency properly so that it can do the job it was set
up to do?
(Con)
Defra and its agencies received an extra £4.3 billion in the
latest spending review in October 2021. We have made extra budget
available to the Environment Agency for 50 extra inspectors to be
recruited in this financial year to visit farms and other sources
of water pollution to ensure that action is taken.
(Con)
My Lords, what has come of the proposal for a national water
grid, which seems to have been pending for a very long time?
(Con)
The noble Lord raises an important point. Under the way we
economically value water, it is extremely expensive to move it
around the country, from areas that have a lot of rain to those
that do not. That economic modelling will change very quickly if
we continue to have serious droughts, and we have to remain open
to moving water between water company areas in a much more
joined-up way.
(Con)
My Lords, will my noble friend pay tribute to Yorkshire Water,
which has invested in such a grid for the region? Will he also
ensure that, where appropriate, water companies and drainage
authorities will be part of the catchment management system?
(Con)
There is a sort of grid, which allows you to move water from
Yorkshire as far down as Ipswich, using a variety of different
means. Following the disastrous situation in the early 2000s,
Yorkshire Water created a much more balanced infrastructure,
which has worked for it and needs to be copied by others.
(Non-Afl)
My Lords, this Government seem to be suffering from inaction in
many departments at the moment, for various reasons. This subject
has cropped up on numerous occasions in your Lordships’ House.
Are the Government really serious about doing something about it,
or are they simply going through the motions?
(Con)
I have heard that one before. This is a very important matter for
my department. I can assure the noble Lord that I and my fellow
Ministers talk to each other about this on a weekly basis. A
whole range of measures is being brought forward, and together
these measures will continue to make a difference. What we need
most of all is continued investment in the infrastructure, some
of which goes back to Edwardian times and does not reflect the
fact that large numbers of new houses and businesses now exist
and require that infrastructure to service them.
(CB)
My Lords, I declare my interests as a farmer, as set out in the
register. Can the Minister please confirm that any measures to
reform the UK water industry are taken after full consultation
with all the interested parties in that industry? The Environment
Agency’s interpretation of the 2018 farming rules for water did
not do that, and as a result farming companies, water companies
and microbiologists all witnessed damage to the environment,
their businesses and so on. Please can there be consultation?
(Con)
I entirely understand the point the noble Lord makes; that
measure was brought in in a less than perfect way. But we have a
problem; we have rivers that need to be cleaned up. Government
tries to sit between, on the one hand, requiring business to do
something and, on the other, supporting the regulator. We hope we
get it right, but we do not always.
