Charlie Maynard

It is a pleasure to serve under your chairship, Sir Jeremy. I thank my hon. Friend the Member for West Dorset (Edward Morello). I am going to move very quickly. I thank Sir Jon Cunliffe and all the campaigners in my constituency. I note that Blake primary school had to close on Friday because of sewage—the fourth time in the last two and a half months. Bills have gone up: we are paying 9.75% interest with Thames Water. I thank Alex Lipp and Jonny Dawe for putting together sewagemap.co.uk—a fantastic website that tracks what is going on and where. The “ultimate controller” definition is mentioned 16 times in the Independent Water Commission’s final report. I welcome the proposal in paragraph 700, which would allow an enforceable undertaking against ultimate controllers. However, that will work only if Ofwat is doing its job properly and recognising companies as ultimate controllers. As the Minister knows, the equity of Thames Water is now zero, with most of the investors having written down their equity investment in full, and some having taken away their board representation nearly two years ago. That leaves the debt holders—the class A creditors—holding the majority of the company’s debt. They have now set up the London & Valley Water consortium to co-ordinate their interests. The water sector is a regulated sector, with the ultimate controller designation being critical. To meet that definition, an entity only has to “materially influence the policy or affairs” of Thames Water. There is no limit on how many entities meet that criterion or whether there are equity or debt holders. Clearly, the consortium more than meets that definition as it is, in effect, the only significant party left standing across either Thames Water’s debt or equity structure. As per the regulation, Thames Water must inform Ofwat even of potential changes in its ultimate controllers. Ofwat then requires water companies to obtain legally enforceable undertakings from each of their ultimate controllers. That has not happened in the case of the class A creditors, and I believe this is a rig-up between the Treasury, the Department for Environment, Food and Rural Affairs, Ofwat, Thames Water and the class A creditors. That is not good enough. It is in contravention of our regulations. I have repeatedly asked Ministers to explain, in the main Chamber, in the Business and Trade Committee, in this Chamber and in the press, why they believe that the class A creditor consortium does not meet the ultimate controller test. I have received either no answer— most recently from the Minister three weeks ago, when she refused point-blank to give me an answer in the main Chamber—or obfuscation. Please, will the Minister now answer the question? Does she consider the London & Valley Water consortium to meet the ultimate controller test with regard to its material influence over Thames Water, and if not, why not?