Water Companies: Executive Bonuses

Made humorous remarks about the brevity of Steve Reed's opening speech.

Supported the motion by highlighting the impact of illegal sewage discharges on communities, nature, tourism, and public health.

Called out the Minister for her absence during a previous debate but presence in the Division Lobby shortly after, questioning her accountability.

Acknowledged the seriousness of the issue but pointed to improvements in bathing water quality since 2010. Suggested a balanced approach to addressing challenges.

Defended Labour's past actions and criticised the current Government for tightening regulations on water companies that now pay for pollution.

Welcomed the call for strong intervention, citing specific examples of sewage discharges in his constituency and supporting increased regulation.

Highlighted the distrust among constituents regarding proposed water schemes involving treated sewage due to past breaches by Thames Water.

Agreed with the need for accountability of main boards in water companies, suggesting they are responsible for covering up issues through sub-boards.

Emphasised the regulator's role in allowing environmental degradation and criticised consumers being left to pay twice: once for dividends and again for rectifying issues.

Highlighted the betrayal of promised enhanced environmental standards post-Brexit by this Government, expressing disappointment in their actions.

Thanked the hon. Member for Croydon North for raising an important issue, emphasising that all sewage in waterways is unacceptable and highlighting the Environment Act 2021 as a globally leading piece of legislation. She expressed pride in instigating and driving through the plan for water with substantial investment, regulation, enforcement, and cross-party support. Acknowledged previous work on River Wye but noted many problems started under Labour's watch. Emphasised current measures to hold companies accountable including monitoring storm sewage overflows by 2025, investing £60 billion over 25 years in infrastructure improvements, and increasing Environment Agency funding since 2010.

Asked the Minister about the River Wye plan promised three months ago which has not materialized yet. Implored for a timeline on when it would come through, expressing impatience from constituents.

Pressed the Minister to explain robust intervention measures against United Utilities following serious allegations made by a whistleblower on 'Panorama'.

Challenged the Minister's claim about Labour opposing measures, stating they opposed weak provisions during Environment Bill passage. Criticised Wessex Water for high dividends and proposed increases in customer bills.

Asked the Minister about discussions with water bosses regarding increased bills, questioning consumer fairness and what customers are paying for.

I am really pleased to speak in a very important debate for me and my constituents. The east Durham coastline is a huge asset to the region and to the country... Northumbrian Water, once a publicly owned authority but now under Chinese ownership, pollutes our seas whenever it rains.

My hon. Friend is making a powerful point about degradation. The Minister seemed to suggest that her Government were revered for their work on this issue. Do his constituents share my constituents’ view that, on the contrary, this is a Government of the effluent for the effluent?

He emphasises the progress made on water quality since 2015, noting that under Labour's rule from 1997 to 2010, no significant action was taken. He criticises Labour for making the situation worse and takes pride in the increased monitoring of storm overflows initiated by his Government, now at 91% coverage. He mentions that since 2015 there have been 58 prosecutions against water companies with £141 million secured in fines to improve environmental conditions. He also highlights a plan to invest £56 billion for infrastructure upgrades and holds Labour accountable for their failure to act on the issue during their tenure.

He intervenes to clarify that Labour's action in 2006, where they cut a deal with water companies for self-assessment on environmental performance, was worse than doing nothing. He questions the effectiveness of the Liberal Democrat during their period as water Minister from 2013-2015.

Mr. Slaughter criticised Thames Water's poor customer service, lack of communication during water supply disruptions, failure to implement flood prevention measures despite previous commitments, and financial mismanagement leading to a £14 billion debt. He also expressed concerns about the company potentially failing due to its current high level of debt and possible 40% increase in bills.

Mr. Mayhew interjected, questioning whether Labour was asleep at the wheel during the period when financial engineering loaded businesses with debt.

Mogden sewage treatment works in Ruth Cadbury's constituency is a regular source of sewage pollution, including raw sewage flooding streets and parks. Thames Water has failed to adequately address the issue despite receiving fines for discharges and legal challenges from residents. The Teddington Direct River Abstraction scheme will further impact local biodiversity and river users but may save only 10% of daily water losses through leaks.

Intervened to point out that Ofwat already has the power to block dividends for companies not meeting performance targets, including environmental ones. He suggests these powers are being used effectively.

The River Calder and River Aire in Simon Lightwood's constituency are among the most polluted in the UK, with significant sewage discharges. The Labour party calls for tougher action on polluters and stricter enforcement of environmental laws by the Environment Agency. They propose that companies should pay dividends rather than increasing customer bills to fix the problem.

Serious and persistent problems affect wildlife and thousands of residents in the Thames Valley, particularly Reading and Woodley. We have seen things in our area that are truly shocking and deeply concern many residents. I have run a community survey, which hundreds of people have filled in to raise their concerns. This is a widespread issue for many local residents, which differs slightly from those described further downstream in London but relates to the level of concern and the impact on local people.

Yesterday in Somerset, 67 millimetres of rain fell in 24 hours and 10 flood warnings have been issued at the time of speaking. This is not a one-off event. Flash floods in May flooded nearly 100 homes in my constituency alone. The Liberal Democrat amendment to the Environment Bill called for a sewage tax on pre-tax profits of water companies to fund cleaning our rivers. An ambassador to the Rivers Trust, Imogen Grant—an Olympic rower as well as a qualified medic—told me that she has rowed past used nappies, used tampons and even a fridge on the River Thames. The board of Thames Water should resign today. The Government must support us in calling for a criminal investigation into United Utilities' alleged misreporting of sewage pollution events.

Water companies are dumping raw sewage into rivers without restraint, despite the illegality of such actions on non-rainy days. In Bristol alone, Wessex Water dumped raw sewage more than 14,000 times in 2021 and for over seven hours recently. The company's CEO receives a massive £982,000 take-home pay while customers are expected to foot the bill for necessary infrastructure repairs.

In Bradford, sewage was dumped 5,200 times in 2022, ranking us among the top 10 regions for such incidents. Yorkshire Water has recorded numerous discharges into smaller waterways, and is now hiking bills by £111 to cover upgrades while paying out £62 million in dividends. The chief executive's refusal of a bonus seems more PR than principle given her base salary and relocation expenses.

The current Government has polluted Britain's rivers and coasts, leading to daily sewage dumping. Over 1,200 years’ worth of raw sewage have been dumped in British waters over the last seven years alone. No river is in a healthy condition today. The Environment Act 2021 amendments proposed by Labour were blocked by the Government. Water companies are asking customers to pay an extra £156 annually for problems caused by under-investment while paying executives millions in bonuses. Ofwat must ban bonus payments to water bosses who allow significant sewage dumping, and Labour will end self-monitoring practices, introduce automatic fines for illegal discharges, hold accountable the bosses that break laws on sewage dumping, and ensure the British public can enjoy clean and safe rivers.

In Birkenhead alone last year there were 666 sewage discharges for over 8,000 hours. This denies young people access to nature and jeopardises tourism businesses. Many precious chalk streams face an existential threat due to sewage dumping. The motion seeks to tackle the injustice of private profits while constituents suffer public squalor. Constituents are sick of pernicious standing charges and rising bills while bosses pocket millions in bonuses. Research shows 70% of the British public want water returned to public ownership after decades of privatisation rip-offs. Water must be treated as a shared resource, not a private commodity, especially considering climate breakdown and extreme weather events. The chief executive of the Environment Agency warns large parts of the country are staring into the 'jaws of death' for lack of water supply.

Perkins criticised the lack of engagement from Government Members, noting the absence of key ministers during the debate. He emphasised the dissatisfaction expressed by Members regarding the state of England’s rivers and the failure of measures introduced by the government to address pollution incidents.

Double intervened, questioning Perkins about Surfers Against Sewage's campaign progress from 1990 onwards. He highlighted that less than 25% of UK beaches met acceptable standards for bathing water quality in the early 1990s compared to over 90% today. Double also challenged Perkins on a court case involving the Labour Government and the European Union, which took place due to failures in addressing environmental issues.

The Government are prioritising storm overflow sewage discharges by launching the most ambitious plan in history. They have increased monitoring from 7% to 91%, enabling better enforcement through detailed understanding of impacts. The Environment Act mandates a £6 billion investment for improvements and penalties for underperformance, ensuring progress without lengthy bureaucratic processes.

The Minister was welcomed to his new role but pressed him on the controversial proposal in the Secretary of State's desk regarding Teddington direct river abstraction, which could harm water quality and impact local areas. She requested that the scheme be taken off the table.

Called for closure to move a motion regretting Conservative Governments' failure to address the sewage crisis adequately, condemning executives paid bonuses despite environmental damage, and demanding Ofwat ban bonuses for companies discharging raw sewage. The motion calls on the Secretary of State to make a statement by 31 January 2024.