Steve Reed MP: speeches 2024

Speeches

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  My hon. Friend is a powerful campaigner for cleaner water. In fact, it is hard to think of anybody who has campaigned harder on the issue. The commission will seek to engage the public at large, as well as a wider group of stakeholders who will be represented on an advisory group, which will include a customer voice. Once the commission has reported, the Government will consult on those findings and that will inform the subsequent legislation that will reset this sector once and for all.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  We certainly know the dire state of our waterways. We also need to know in detail the root and branch reforms required to make the corrections. We will have that from this commission by next summer, and I hope the hon. Lady will take part in that. We need to clean up all of our waterways, including those very important ones to which she refers.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  There has been a wide failure in the regulation of water. That is why I have asked Sir Jon Cunliffe, as part of the commission that he is leading, to look at regulation and the roles of the regulators—not just one of them—to ensure that we have a system that is fit for purpose. We are ensuring that, outside the commission, there is mandatory monitoring of what is coming out of all overflows, including emergency overflows. In the Water (Special Measures) Bill, water chief executives will be required to be open and transparent about the extent of pollution; otherwise, they will face personal criminal liability for the first time.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I thank my hon. Friend for her question. I had the pleasure of visiting Truro and Falmouth during the election, and I saw for myself the problems there. It is disgusting to see sewage bubbling up into the streets and even into some people’s back gardens because the sewage infrastructure is so broken after the previous Government failed for 14 years to bring in the investment necessary to upgrade it. The commission will look at how we secure funding and get that infrastructure rebuilt at pace, so that we can improve the situation we are hearing about. It will also look at regulation and the role of the regulator and make proposals as to how we can improve those, so that we have regulation that is fit for purpose.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I thank my hon. Friend for her question. I had the pleasure of visiting Bournemouth West with her, and I saw for myself the impact on businesses and tourism in that part of the world. Parents are frightened to let their kids go in the sea at certain times of day, when the water contamination has reached unacceptable levels. The commission will look at how we can strengthen regulation and governance to ensure that the practices that water companies have got away with over recent years can no longer happen. It will also look at how we can bring in the investment needed to repair our broken water infrastructure, so that we can drive economic growth in every part of the country, including, of course, in Bournemouth West.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I thank the Chair of the Select Committee for the points that he makes. Of course, he is right. The Water (Special Measures) Bill, with its ban on bonuses, will not be sufficient to reset the sector, although it is an ask that the public are rightly making because of the unfairness of people who are overseeing failure being richly rewarded for that failure. That should not have been allowed to go on under the previous Government, and it will not go on under this new Government. The reason we have set up the commission is to address the very points the right hon. Gentleman makes about financial and environmental sustainability and viability. I look forward to working with him and his Committee as the commission carries out its work, as we review its findings in the summer of next year, and as we then shape what will be significant new legislation to reset the sector—a reformed sector—in a new partnership with Government to bring in the investment that will finally clean up our waterways.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  My hon. Friend represents an incredibly beautiful part of the country in the Gower, and her constituents and the many people who visit those beauty spots will want to know that their children can enjoy the water without risk of contamination from polluted water. Of course I congratulate Surfers Against Sewage and the many campaigners who have pushed for reform. They will be invited to participate in the work of the commission—they have huge expertise. I hope that, before long, her constituents who are testing the quality of the water will start to see improvements until it is pure and crystal clear, as it should always have been.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  It will be for the commission to look at how we get to an effective and appropriate model of regulation, including the roles of the regulators.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  The short answer to that is yes.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  My hon. Friend is absolutely right; it is disgusting for people to see sewage bubbling up, and not just in their high streets but even in their gardens, because of broken water infrastructure. We will be looking for a reset so that we can have a water sector that works for customers and the environment, as well as investors.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I remember very well and with pleasure the visit to which my hon. Friend refers. I also remember how distressed residents were to see their homes flooded and their possessions destroyed. Very often their homes were uninsurable, because of where they were located. The commission will consider all those factors. My hon. Friend the Water and Flooding Minister and I are also looking at what can be done separately to tackle the scourge of flooding to better protect communities now and into the future.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  My hon. Friend is absolutely right that the previous Government deliberately weakened the regulators. They kept regulation too weak to hold the water companies to account and to ensure that we got the investment which could have maintained a better standard of infrastructure and stopped the level of pollution that his and everyone else’s constituents have had to face. We have already taken steps through the Water (Special Measures) Bill to give the regulator more teeth. The commission will be looking root and branch at the role of regulation, governance and the regulator, to ensure we have a system that is fit for the future that will guarantee clean water for decades to come.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  Diolch yn fawr i chi. I would be very happy to visit Monmouthshire. It is important that we look at the situation with water across catchments, particularly where it is crossing borders between England and Wales. The fact that this commission is jointly commissioned by both Governments and will report to both Governments will ensure that is what happens.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  Unfortunately, the hon. Gentleman is referring to commitments to spend money that did not exist. We are waiting for the Chancellor to announce her Budget from this Dispatch Box in almost exactly one week’s time, and we will find out much more then.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I had the pleasure of visiting my hon. Friend’s constituency with him during the summer. I saw for myself the impact of sewage in the sea on the beautiful beaches around his part of Cornwall. Of course, it is not unusual for a Labour Government to have to come in and clean up the Tories’ mess, but rarely quite so literally as in the case of sewage in our waterways. He makes an important point about mental health. I hope he will feed that back to the commission because it is important it hears all sorts of views about the impact of polluted water as it considers how we can best clean it up.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  We have already announced plans to ringfence money earmarked for investment so that it cannot be diverted for undeserved multimillion-pound bonuses, as happened so frequently under the previous failed Conservative Government.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  Well, that was all a little bit embarrassing, wasn’t it? The previous Government had 14 years in power, our rivers, lakes and seas are awash with record levels of pollution, and that is all the Conservatives have to say. I took action seven days after the general election: I brought the water chief execs into my office, and we agreed that money earmarked for investment will be ringfenced so that it cannot be diverted to pay multimillion-pound bonuses to water chief execs who oversee failure in the water sector, as happened on the shadow Minister’s watch. The commission will reset the sector that the Conservatives broke, and clean up the water that they polluted. It will report to the Government in June and inform subsequent legislation.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  That is an important point. The commission will be looking at the financial viability of water companies, including their levels of indebtedness. The hon. Member also made the important point about what happens when water companies cut off supplies, because, frankly, compensation to individual households and businesses has been inadequate. That is something that we seek to address through the Water (Special Measures) Bill, which is going through Parliament right now, so it need not wait for the commission.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  With permission, Mr Speaker, I would like to update the House on the action that this Government are taking to fundamentally transform our water industry and clean up our waterways for good. Fourteen years of Conservative failure have left our water sector in disrepair. The rivers, lakes and seas that we all love have record levels of pollution. Severe droughts are set to leave parts of the country facing significant water shortages by 2050, particularly in the south-east, and water companies forecast that England will need to find an extra 5 billion litres of water a day to fill the gap between supply and demand by that same year. A rising population and the increasing impacts of climate change are putting strain on the water system. Firmer action should have been taken by the previous Government to ensure that money was invested to fix the water and sewerage system. Instead, they allowed that money to be siphoned off for bonuses while our water infrastructure crumbled. A secure water supply is essential for every home and business throughout the country. It is the foundation of our economy, our communities and our global security. It is essential to life itself. We use water to cool power stations, and it is vital to our electricity supply. We use water to grow the crops that provide the food on our plate, and we use it to supply our leisure industries. Without a resilient water supply, we cannot build the new homes and critical infrastructure that we need to grow the economy. Concerns about pollution, water shortages, bill increases and the sector’s financial resilience all point to the need for profound change. The water sector needs a complete reset, with a reformed water sector working in partnership with Government to bring in the investment we need. We need a clear long-term plan to ensure that the sector puts customers and the environment first and can attract investment to upgrade our infrastructure. We need a water system fit for the future. We cannot clean up our rivers, lakes and seas overnight, but we have a plan, and the work of change has started. On 11 July, I made a statement to the House on the agreement that I reached with water companies and Ofwat to ringfence money earmarked for investment in water infrastructure so that it can no longer be diverted for shareholder payouts and undeserved bonus payments. On 9 September, we introduced the Water (Special Measures) Bill, which sets out new measures, including measures strengthening regulation to ensure that water bosses face personal criminal liability for serious and repeated lawbreaking; giving the water regulator new powers to ban the payment of bonuses if environmental standards are not met; and boosting accountability for water executives through a new code of conduct. Today, I am pleased to announce the third stage of our plan. Together with the Welsh Government, we are launching an independent commission that will lead the biggest review of the water industry since privatisation 35 years ago. The commission will ensure that we have the robust regulatory framework that we need to attract the significant investment that is required to clean up our waterways, build new infrastructure to address water scarcity, and restore public confidence in the sector. I am delighted that it will be led by the former deputy governor of the Bank of England, Sir Jon Cunliffe, who has decades of economic and regulatory experience. Sir Jon will be supported by an advisory group of experts covering areas such as the environment, public health, engineering, customers, investors and economics. He will seek advice from wider groups of stakeholders including environmental campaigners, consumer champions, water companies, regulators and the public at large. The commission will conduct a root-and-branch review of the water sector’s regulatory system. It will cover the water industry in England and Wales and the strategic planning framework under the water framework directive and river basin management plans to ensure that strategic water planning across sectors is effective at catchment, regional and national scales. Where housing, planning, agriculture and drainage interlink with strategic planning across the water system, they are also in scope. The commission will set a new framework for the future. It will not make recommendations that affect the current price review ’24 process, in order to ensure that there is a stable climate for investment as that process concludes. It will be pragmatic and will focus on reforms that improve the privatised regulatory model. Nationalisation of the water sector will not be in scope, because of the high costs of buying out the current owners, lack of evidence that it would lead to improvements, and the long delays that it would cause in the process of cleaning up polluted water and serving customers better. The commission will make recommendations in the first half of 2025, reporting to me as Environment Secretary and to the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs in Wales. Once it has made its recommendations, the UK and Welsh Governments will respond and consult on proposals, including subsequent legislation. Further details of the commission’s scope, delivery, approach and timelines are set out in its terms of reference, which will be available on gov.uk today. This Government will deliver an ambitious, long-term and collaborative approach to reforming the water sector, creating a strong new partnership between Government, water companies, customers, investors and all those who work to protect our precious environment. The commission will set the groundwork for the reformed water sector that we want to see. I thank Sir Jon for leading this important work. This is our opportunity to ensure that our children, and their children, have the chance to create memories that will last a lifetime—to splash about at the seaside, row on our rivers or enjoy a picnic on the lake shore. This is our opportunity to inject billions of pounds into the economy and to power UK growth by attracting global investment into a transformed water sector. This is our opportunity to clean up our water once and for all.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  It is always a pleasure to hear from the hon. Gentleman. Of course water is devolved in Northern Ireland. It will be for the local authorities there to make their own decisions about how to correct problems in beauty spots such as Lough Neagh.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I have had the pleasure of visiting my hon. Friend’s constituency many times over the past year, and I know what a concern flooding is to people living there. We have already set up a flood resilience taskforce, which will ensure better co-ordination between the centre, where resources are held, and agencies on the frontline, including those to which he refers, to ensure that people are better protected from the impact of flooding. I am sure that my hon. Friend the Water Minister will be happy to meet with him to talk about local flooding.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I thought the hon. Gentleman was standing up to apologise for the fact that the Conservative Government did absolutely nothing for 14 years, other than watch the torrent of effluent going into our rivers, lakes and seas increase and pollute them. My hon. Friend the Water Minister would be more than happy to meet him to discuss the issues that he raises in his constituency.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  I hope the hon. Lady will look at the terms of reference, which are available at gov.uk. They focus on the whole catchment area of rivers and include agricultural run-off, which accounts for 45% of water pollution. Where there is an interface between agriculture and polluted water, that is indeed in scope for the work of the commission.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  The commission has a wide remit, and will look at the wider impact of damage to the water system, which got much worse under the previous Government.

• 23 Oct 2024 · Independent Water Commission · Hansard source

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  The reason I have ruled out nationalisation is that it would not resolve the problems we face. We saw in the Olympics in France that the River Seine was not able to be used for swimming because of pollution. That is a state-owned water system. We see the problems in Scotland. That is a state-owned water system as well. The problems are those of governance and regulation. Nationalisation would cost towards £100 billion of public money—money that does not exist—and the time it would take to unpick the current models of ownership, during which time investment would be choked off, would see our rivers, lakes and seas filled with even more sewage and pollution, rather than less. I am more interested in the purity of our water than the purity of our ideology. I will do what works best as quickly as possible. The commission will give us guidance on how we should change the system to make sure it works for everybody.