Contribution
I imagine that that is item 1—indeed, probably items 1 to 6—on the job description. If they cannot fulfil that obligation, then go they should.
The Government brought in the Act to stop bonuses like this being paid, but they are clearly not effectively enforcing that ban in practice. Although I am critical of the Government, my main criticism is reserved for the water company bosses themselves, who have the nerve to go looking for ways to get around the bonus ban to enrich themselves, often out of bill payers’ money. I tell water industry bosses this: your customers see you, our constituents see you and your hard-working frontline employees see you. Your authority is diminished because your integrity is diminished. That proves the Liberal Democrats right: we need far more radical change in our water industry.
So we come to the White Paper released by the Government this week. Having rejected our 44 amendments to what is now the Water (Special Measures) Act 2025, the Government soon conceded that they needed to do more and launched the independent commission into the water sector, chaired by Sir Jon Cunliffe. The commission reported last July, and this week’s White Paper draws from its report. It is meant to be a step towards a more far-reaching water Bill, perhaps in the coming parliamentary Session, and there are welcome elements in the Government’s trailing of it. For example, it is good that they want to borrow the Liberal Democrats’ plan for a single unified regulator to bring financial and environmental oversight together.
I want quickly to add to the point made by my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) and others that the Drinking Water Inspectorate is doing a good job. We should not level it down to the level of the rest of the regulatory sector, but level the sector up to the inspectorate’s level.
It is good that the Government want to make regulation more proactive through the work of a chief engineer. However, the disaster in Kent and Sussex over the water supply, the financial failure of Thames Water, the failure of all water companies to prevent sewage dumping and the decision of water industry leaders to stick two fingers up to bill payers and Parliament by dodging the bonus ban all tell us that we will never solve this crisis while we maintain the current ownership model. The Liberal Democrats demand that our water companies be transitioned to being mutually owned public benefit companies, so that money raised in the water industry is reinvested in our infrastructure, and the main motivation is not the profiteering of people who are often probably not even resident in this country, but the quality of our water supply and sewage removal systems and the benefit to the customer. We are therefore bitterly disappointed that the Government have no plans to change the ownership model at all. As a result, the White Paper looks like yet another missed opportunity.
Water UK has welcomed the White Paper, which ought to really worry the Government because it is the water companies’ trade body. Of course it is delighted that the Government continue to protect the water companies from the fullest scrutiny. As my hon. Friend the Member for Eastleigh (Liz Jarvis) pointed out, we are measuring the duration, not the volume, of sewage. I said that sewage was dumped for 3.6 million hours in 2024, and that is all I can say, because the duration of spills is all we are allowed to know, but the volume of sewage going into our waterways is surely even more significant. There can be long trickle or a swift deluge, yet the Government refuse to enforce the measurement of volume, despite Liberal Democrat amendments to the Bill that would have allowed them to do that.
It feels like the Government, in failing to enforce the 2025 Act and stand up to the water companies in their new water White Paper, are content merely to make tentative steps to be better than the dismal record of their Tory predecessors—which is not a high bar. The British people need this Government to be a lot more than just a bit better than the Conservatives. They need radical reform of this failed ownership model and of inadequate regulations and enforcement. The Liberal Democrats will offer that reform.