Contribution
It has been an absolute delight to listen to the debate. There were times when I thought that having an official Opposition was unnecessary because of the amount of opposition from Government Members. I congratulate my Norfolk neighbour, the hon. and gallant Member for Norwich South (Clive Lewis). I am delighted to have a return of these rather archaic honorifics, because next time he refers to me, he will have to call me honourable and learned, which I know will stick in his craw. I congratulate him on introducing a groundbreaking Bill to the House. It would have a huge impact on the water industry, for good or ill, as I will discuss in the coming minutes.
It is surprising to me, and perhaps to other hon. Members who were in this place before the last general election, to see the total absence of any Liberal Democrat Members in the Chamber. Not even their official spokesperson is here. I remember the amount of noise they made before the election about their views on water. It is telling that when it comes to a groundbreaking piece of legislation that could really make a change, according to the hon. Member for Norwich South, they could not even be bothered to attend. [Hon. Members: “Hear, hear!”] I have unified the House. We all agree on one thing, and we know what that is.
The hon. Member for Norwich South made not just a critique of the water companies, but of private ownership in general. I want to address that very briefly, in a single sentence: capitalism has lifted more people in the world out of poverty and despair than any other economic system in history. However, I recognise that there are many forms of ownership in a capitalist system, including national and public ownership, mutualisation and private ownership.
Before throwing the metaphorical baby out with the almost uniquely clean bathwater that we enjoy in this country, let us take a moment to look back at private sector water company performance, in a way that would have been impossible for me to do prior to the general election, because the campaigning noise was so deafening that rational debate was too often brushed aside. I am taking a risk, but I hope that today, in this Chamber, we can have a more rational and careful debate, and look at the data. Let us look at the private performance, both good and ill. This is not a defence of the status quo, but it is a challenge to the assumption that public ownership is necessarily the solution. I will go back and look at elements of the performance of the private sector over the past 30 years. The first duty of a water company is to provide safe, clean drinking water for its customers. As we heard from the hon. Member for Bermondsey and Old Southwark (Neil Coyle), our water industry passes that test with flying colours. It is not just clean water but the cleanest water in the entire world, jointly with one other country—and I hope no one intervenes to ask me which country that is, because I simply do not know. Let us not forget, as we bash the water companies, that they have provided the cleanest drinking water in the world.
The next thing water companies have to do is to make sure that the supply is uninterrupted. We had an experiment with nationalisation of our water industry up until about 30 years ago. During that period, interruptions in the water supply were five times as likely as they are today. To put it another way, privatisation has reduced the interruption of the water supply fivefold. We can argue about why that is, but that is a fact. There are examples of disruption such as the one the hon. Member for Beckenham and Penge (Liam Conlon) referred to, and they are terrible, but in aggregate, the number of disruptions has reduced fivefold. We then turn to leakage. As my neighbour, the hon. Member for Norwich South, says, water is a scarce and valuable public resource, so leakage is very important. Since privatisation, the amount of leakage has reduced by a third.
How has all this been achieved? The answer is that £236 billion has been invested by the private sector in our water infrastructure since 1991. How has it been able to do that? The answer, in my submission, is that it has not been competing with the provision of new hospitals or new schools, and—perhaps Government Members will feel this more closely to their hearts—it has not been competing with personal independence payments for the disabled, the disability element of universal credit or carer’s allowance. Try asking the Chancellor of the Exchequer now for £236 billion to be spent from the public funds on water. We know from the debates we have had last week and this week that that is almost impossible.
I turn to performance. There are various ways of measuring performance, but the headline is serious sewage incidents. In the 1990s, the average number of serious sewage incidents was 500 a year. Now it is well below 100. The last year for which I could find data was 2021, and in that year the number was 62. There are other elements of performance. There are the chemicals being leached into our waterways through treated sewage. The most damaging for biodiversity is phosphorus. Since 1990, because of the investment, the amount of phosphorus entering our waterways through the water treatment system has not increased; it has reduced by 80%. This is at a time when our economy has grown and our population has increased significantly.
The next most damaging chemical is ammonia. Again, since 1990, the amount of ammonia going into the waterways because of treated water has not increased along with population growth or economic growth; it has in fact declined by 85%. The next most damaging chemicals are cadmium and mercury. Since 2008—a slightly different starting point, I accept—the amount of cadmium and mercury has reduced by 50%.
If we take away the emotion and start looking at some of the core data, we can see that there have been very real elements of progress—not universal progress, but real elements of progress because of a huge amount of private investment in our water industry.