Baroness Grender (LD)

My Lords, I thank the Minister for the Statement repeat this evening. Some proposals in this White paper are indeed most welcome, including the scrapping of Ofwat—something we have long called for—but it falls short of the fundamental reforms water customers are so desperately in need of. True reform demands root-and-branch change within the water companies themselves, because until profit is no longer their driving force, shareholder payouts will continue to be prioritised over investment and the urgent need to end the scandal of sewage in our rivers and seas. We therefore advocate a move towards mutuality, not the costly nationalisation that others propose but a shift to public benefit companies, a model that has proved so successful elsewhere, particularly in the United States. I have a few questions. How can the Government claim there will be nowhere to hide when the White Paper rules out structural reform, including changes to ownership and profit extraction? What action is being taken to stop water companies evading the bonus ban, given evidence to the Public Accounts Committee only recently that they have reclassified such payments as “retention incentives”, even in the past year? If this is truly the biggest overhaul since privatisation, why does it fail to confront the broken ownership model which has enabled pollution, underinvestment and profiteering for decades? Did the Government consider alternative models, such as mutuality, and, if not, why not at this stage, when the current funding system so clearly prioritises shareholders over customers, in turn using huge debts to fund dividends? What guarantees can Ministers give that a new regulator, potentially more than a year from being operational, will be able to deliver immediate improvements, rather than the risk of extended regulatory failure? What assessment has been made of the cumulative impact of historic underinvestment and excessive dividends in today’s water bills, and how will this White Paper address that inequity? How will the Government work with farmers to tackle agricultural pollution in genuine partnership with them, rather than the slight blame culture that currently exists? Will Ministers commit to ending the sewage cover-up by requiring full publication of sewage volume data, not just the spill duration, as is the current system and the one we had under the last Government? Given record sewage dumping and rising bills, what measurable standards will define this White Paper as a success if river and coastal water quality, for instance, continues to decline? Finally, and no great surprise from me, when will we see the necessary legislation on our precious chalk streams, which have a very welcome inclusion in this White Paper but which were promised urgent action when we were discussing the Planning and Infrastructure Bill? There continues to be a danger that it will be too late for the chalk streams.