Emma Hardy

I turn now to regulation and the case for establishing a new single water regulator. As mentioned, that has to go alongside continuing what we have at the moment. Fundamental reform of water regulation is required, bringing together the economic and environmental planning, and looking at a singular accountable improvement body and enabling a whole-firm view of water company performance. The Liberal Democrat spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), called it phase 2 or round 2 —I am not sure what the right phrase is, but we will be back with further legislation. This is absolutely what we need. We are looking at a chief engineer being embedded in the new regulator, ensuring companies focus on fixing crumbling pipes, treatment works and on engineering expertise—it is shocking that we have not had engineering expertise. We are looking at greater stability, transparency and protection for customers. Until then, existing regulators must retain their full legal powers and responsibility. However, the Government are determined to ensure that the future regulator does not inherit the problems of the past. Leadership appointments for the new regulator, including a chair designate, will therefore be made at the earliest opportunity, and they will drive the design and direction of the new regulator to support a smooth transition. Before that, early steps are now being taken to look at joining up regulatory activity, particularly between Ofwat and the Environment Agency, until the new regulator is established.