Jess Brown-Fuller

It is a pleasure to serve under your chairmanship, Mr Pritchard. I thank my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) for securing today’s timely debate, on a day when the Secretary of State has made a statement in the House to announce an independent water commission. As I said during his statement earlier, the promise to fundamentally transform our water industry and clean up our waterways for good is welcomed and celebrated across the House. Our lakes and rivers are national treasures, yet water company executives have been degrading these resources to protect their own profits and shareholders, even while the companies themselves are drowning in debt. The water system in England is at breaking point and water companies are not being held accountable for one of the worst environmental crises in the UK—the dumping of sewage into our rivers and lakes, and along our coastline. My hon. Friend said in his opening remarks that Ofwat has fined four or five water companies billions of pounds, but currently it has not collected a penny. The damage done by these water companies is nowhere more apparent than in Chichester harbour, which is a site of special scientific interest and a national landscape but it is in unfavourable and declining condition, and desperately needs ambition to protect it. The British public pay those companies not only to provide us with clean water but to ensure that there are safe and clean processes for waste water and sewage, while protecting our environment. Storm overflows are supposed to be exceptional, not the norm. During my election campaign, on the doorsteps I saw a real passion among constituents for addressing the problem of water pollution and sewage dumping. It has been a pleasure to meet passionate environmental campaigners across the constituency, such as Friends of the Ems and the group carrying out citizen science on the River Lavant. The Ems and the Lavant are both precious chalk streams. The UK is lagging far behind other European countries in water quality and the safety of our waterways, and our polluted rivers and lakes are becoming an anomaly. At the time of privatisation, water companies were debt-free. However, over the past 35 years, as inflation and interest rates have risen, the debt burden on UK water companies, including Southern Water which serves my constituency, has grown significantly, in particular because much of that debt is linked to the retail price index. Borrowings across the sector now total about £68 billion and yet, during the same period, water companies have paid at least £78 billion in dividends to shareholders. Earlier this month, an investor presentation posted on Southern Water’s website revealed that the company is seeking to borrow up to £4 billion from investors to offset £3.8 billion in debt over the next five years. In addition, the company has proposed a staggering 73% increase in household bills over the same period. To mitigate its debt, Southern Water is planning large-scale investment in the Havant Thicket reservoir, which would introduce recycled waste water into a spring-fed drinking water supply through a process called reverse osmosis. The process has never been used for drinking water in the UK before, and is typically found in severely water-stressed landlocked countries. Although the south-east has been designated officially as water-stressed, and we need to see reform to reduce abstraction on rivers such as the Ems, smaller and more environmentally sustainable solutions are available, but they are not being explored, because they cannot be offset against the company’s debt.