Water Pollution: Accountability

4. What recent progress he has made on increasing the accountability of water companies for pollution discharges into waterways.

I welcome my outstanding former employee to her place in the Chamber, and thank her for her question. After 14 years of Conservative failure, the public are furious at the levels of sewage being released into our rivers, lakes and seas. Last week, this Government introduced the Water (Special Measures) Bill to strengthen the power of the water industry regulators and turn around the performance of failing water companies. The Bill will ban bonuses for chief executives when environmental standards have not been met, and will bring forward criminal charges for obstruction.

Our canals are the pride of the Black Country: they are very important to our communities, our wildlife and our tourism. Unfortunately, like the rest of the waterways, we have seen serious pollution incidents in the canals in recent years. What are the Government doing to protect our canals and waterways and clean up the failures of the last Government?

I congratulate my hon. Friend on being such a champion for waterways in and around her constituency. Toxic pollution of canals or, indeed, any other waterway is disgraceful and unacceptable. The previous Government cut resources for the regulators, leaving them incapable of investigating all the incidents that were happening. We are putting firepower back with the regulators through the Water (Special Measures) Bill, which will allow them to claw back the costs of prosecution from the organisations that are prosecuted, so that they can carry out more enforcement against organisations that got away scot-free with polluting our waterways under the previous Government.

Dozens of homes and businesses across Alverstoke village in my constituency were flooded with polluted water from the Alver creek when Storm Pierrick caused a tidal surge in April this year. We now hear that, without urgent flood protection measures, that could be a one-in-20-years scenario. Those measures will cost an extra £3.5 million, and we are waiting desperately for news from the Secretary of State’s Department about whether we have been awarded that flood and coastal erosion risk management grant so that the work can start. We are now heading into winter, with higher tides, and some of my constituents still have not been able to return to their homes and businesses after the previous flooding event. What reassurance can the Secretary of State give me that that announcement is coming soon, and will he please meet me urgently to discuss this scenario?

I congratulate the hon. Member on winning her seat in the general election and taking her place. I will certainly make sure that the relevant Minister is able to meet her to discuss that issue in more detail. I am very pleased that the first meeting of our new flood resilience taskforce will be later today. The intention of that organisation is to ensure much better co-ordination between Whitehall at the centre, where the resources are held, and the agencies on the frontline that need to be taking appropriate action as quickly as possible to protect communities, businesses, farms and all of the rest of the people who can be affected by flooding, particularly given that we are seeing more frequent severe weather incidents because of climate change.

I call the shadow Minister.

Sound management of water companies is of course vital if customers are to receive the high level of service they expect and environmental performance obligations are to be strictly adhered to. Some water companies are better managed than others, so will the Secretary of State guarantee that in his efforts to hold water companies to account, no offer of a regulatory easement will be provided—in other words, no permission to lower standards, relax environmental permits or reduce agreed levels of investment will be provided to any water company, no matter their financial circumstances, by the Government or the regulator?

I will be announcing later this autumn—in just a few weeks’ time—a review of the entire water sector, including regulation. In particular, I want to make sure that regulation is as tough as possible to ensure that the practices and, frankly, the abuses that were going on can no longer happen. Part of that will be complete transparency about what is going on—on the part of the water companies, and also, I have to say, on the part of Government. It was very disappointing that, when he was a Minister, the hon. Gentleman tried to cover up the extent of sewage spills before the election, telling Environment Agency officials not to put the key figures on the front page of its environmental portal.

Order. Saying that the hon. Member “tried to cover up” is suggesting that a Member is lying, and I do not—

On a point of order, Mr Speaker.

The right hon. Member cannot raise a point of order now. He has been here long enough to know that they come at the end of questions. [Interruption.] Order. I am dealing with this. We really have to reflect on what we say about other Members in this House, and I would like the Secretary of State to withdraw what he has suggested.

I withdraw that comment. Perhaps I should have said that the shadow Minister could have been more open and transparent. [Interruption.]

Order. I am not going to open up that question. We will now have the second question from Robbie Moore.

Thank you, Mr Speaker.

So there we have it: the Secretary of State’s first outing at the Dispatch Box, and he was not able to clearly answer the question I asked. Will the Secretary of State confirm that, in fulfilling his obligation to hold water companies to account, he will not issue regulatory easements, no matter their financial circumstances? Will he answer that question clearly right now from the Dispatch Box?

As I have already said, we are looking to strengthen, not weaken the regulation. The regulation was inappropriate. It is not just the regulation itself, but the lack of resources the regulators have had. That is why the Water (Special Measures) Bill we are introducing will allow the regulators to claw back resources from water companies that are successfully prosecuted, so that they have the firepower to prosecute further wrongdoing by those water companies or others responsible for it.