Water Company Executives: Accountability

2. What steps he is taking to increase the accountability of water company executives for service failures.

I thank my hon. Friend for his service on the Water (Special Measures) Bill Committee. He will know that the Bill creates new powers for the regulator, including banning the payment of unjustified bonuses for water bosses whose companies fail to meet environmental standards and ensuring that imprisonment is a sentencing option where environmental regulators are obstructed. That will hold water companies and their executives to account. In addition, we are doubling compensation for poor service to hold water companies to account for failure in their service delivery.

I thank the Secretary of State for his answer. Many of my constituents in Southampton Itchen have written to me, outraged at the 53% bill increase that Southern Water is proposing at a time when it and others continue to pollute our rivers at an alarming rate. This is simply becoming a national scandal. As part of the work of the coming independent water review, will the Secretary of State ensure that water companies get back to delivering reliable services for customers, rather than lining the pockets of executives and shareholders?

My hon. Friend makes an important point. Bills, of course, are going up because the previous Government did nothing as our sewerage infrastructure crumbled and millions of pounds were allowed to be diverted to pay for bonuses and dividends instead of investment. This Government have ringfenced the money earmarked for infrastructure so that this scandal can never happen again.

Essex and Suffolk Water has issued a moratorium on commercial businesses pulling water out of the ground, which it says is due to the Environment Agency. The problem is that water-intensive businesses need water to grow. Aspall in my constituency has £10 million of investment ready to go to grow its cidery. Without access to water, it cannot make that investment. If this Government are serious about going for growth, will the Minister meet me to find a solution to the moratorium so that we can move forward?

I am more than happy to ask the Minister for water, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), to meet the hon. Gentleman, who raises an important point. I have asked Sir Jon Cunliffe to look at how we can better manage this as part of the work he is leading.