Emma Hardy MP: speeches

Speeches

• 6 Feb 2025 · Topical Questions · Hansard source

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  I thank my hon. Friend, who is right to highlight how the previous flooding formula discriminated against rural communities because it was based purely on the number of properties protected, not on creating the right solution in the right area. That is exactly why we wish to reform the formula, and we will be announcing a consultation very shortly.

• 6 Feb 2025 · Topical Questions · Hansard source

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  I thank my hon. Friend for raising this important issue and for the work he is doing in championing what is obviously a crucial issue for his residents. I would of course be happy to meet him.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I thank Members for their constructive engagement throughout this debate. As I have said before, it is wonderful to hear the shared passion across this House for improving the performance of the water sector so that it better delivers for customers and the environment. Given the limited time that I have to address over 50 amendments—I am not looking in any one direction—

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  What a delight it is to be back in the Chamber debating this transformational Bill. I will keep my opening comments brief, because I know that many want to speak, and I will respond to amendments tabled by hon. Members when closing this debate after hon. Members have spoken to them, as is established practice. I want to start by thanking all members of the Public Bill Committee for their careful consideration and scrutiny of the Bill and, dare I say, their comradery in discussions and debates. It is clear that this is an area that everyone acknowledges is in need of change and reform. I also thank the Chairs, the hon. Member for Brigg and Immingham (Martin Vickers) and my hon. Friend the Member for Ealing Central and Acton (Dr Huq). It was a pleasure to serve under them. Since being in Committee, I have had several further insightful conversations on the Bill with Members from across the House and on the amendments tabled by the Government for consideration on Report, which I will take the opportunity to speak to now. I will start with Government amendment 4, which is a minor and technical amendment that ensures that clause 10 encompasses new enforcement functions arising from the changes made to clause 2 in the other place. Government amendment 4 clarifies that cost recovery powers for the Environment Agency, expanded by the provisions in clause 10, also extend to costs incurred when enforcing the requirement to publish implementation plans. That requirement was added on Report in the Lords after cross-party discussions and collaboration. The amendment also clarifies that EA cost recovery powers concerning both pollution incident reduction plans and implementation reports are available for plans covering areas that are wholly or mainly in Wales, as well as for plans covering England, which are already included in clause 10. Such clarifications ensure that the EA regulators in both England and Wales can fully recover costs for the extent of their water company enforcement activities and carry out their duties and functions effectively. The Government have tabled amendments 5 to 7 in order to commence clause 1 on Royal Assent. That will give Ofwat and companies certainty on when the powers to make rules on remuneration and governance will come into force and will therefore be useful to companies in planning for the 2025-26 financial year. Commencement of clause 1 on Royal Assent will ensure Ofwat can implement its rules as soon as possible following its statutory consultation with relevant persons, which include the Secretary of State, Welsh Ministers and the Consumer Council for Water. I know that some Members have expressed concerns around the timeline over which Ofwat’s rules will come into effect. I therefore hope the alteration to the commencement provisions for clause 1 will reassure those Members that the Government and the regulators are absolutely committed to ensuring Ofwat’s rules are put in place as quickly as possible. I now turn to new clause 18, which is the most substantial of the Government amendments. As I have stated before, this Government are a Government of service, and we are absolutely committed to taking action to address water poverty. We are working with industry to keep existing support schemes under review to ensure vulnerable customers across the country are supported. We also expect companies to hold themselves accountable for their public commitment to end water poverty by 2030 and will work with the sector to ensure appropriate measures are taken to deliver that. That is why we have tabled the new clause, which adds to the existing powers to provide for special charging arrangements for customers in need. The new provision will enable water companies to provide consistent support for consumers across the country. It will also allow for automatic enrolment on any future scheme and broader information sharing between public authorities and water companies. The clause imposes a requirement for consultation on any future scheme, and it also amends the Digital Economy Act 2017 to ensure that water companies identify eligible customers and that they get the full support to which they are entitled.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I am sorry, but I will have to stop taking interventions if I am to respond to all the amendments. Water UK has published a centralised map on its website of discharge data from all storm overflows operated by English water companies. I genuinely found it clear and useful, so I encourage all hon. Members to have a look. I have heard calls from across the House for reforming the planning frameworks, the regulators and the incentives that govern the water industry model. Although I understand and, believe me, fully share hon. Members’ frustrations with the performance across the water sector, the fundamental issues facing the water industry and the regulatory framework in which it operates can no longer be addressed in a piecemeal way. I have spoken at great length throughout the Bill’s passage about the independent commission led by Sir Jon Cunliffe, which will make recommendations to fundamentally transform how our water system works. The broad-ranging commission is bringing together a wide range of expertise to make recommendations in line with eight objectives to deliver the necessary reset to ensure a resilient, innovative and sustainable water sector in England and Wales. It will report to the Government by summer 2025. This includes specific objectives to review the roles, structures, duties and powers of the regulators, the planning frameworks—including the price review process—and the resilience of water companies. That includes financial resilience, which I know matters to many hon. Members. Points have been raised about taking water companies into public ownership, and the Government have repeatedly made it clear that we do not consider nationalisation to be within the commission’s scope. Nationalisation would cost over £90 billion, and it would take years to unpick the current ownership model, at the expense of delivering and addressing more immediate public priorities. However, the commission will consider alternative water industry models within its scope. I take this opportunity to invite all hon. Members to put forward their views to the commission through the upcoming call for evidence, which will be launching soon.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  This is going to be my last one.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I thank my hon. Friend for her intervention. I would have thought that this would be an important issue for all political parties.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I have two minutes remaining, so I have to skip through as much as I can, as I know Members will want me to answer questions, particularly on the SAR. Some hon. Members have expressed concern about the rules on performance-related pay and consumer representation. Although the Government agree it is crucial that consumers’ voices are heard and considered in water company decision making, we have already taken action on this. It is not necessary to require environmental experts to be placed on company boards because, following the agreement made with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs in his first week in office, nine of the 16 companies have updated their articles of association to include a social and environmental commitment. DEFRA is working with all of them to ensure they do the rest as soon as possible. I agree with the hon. Member for Westmorland and Lonsdale (Tim Farron) about the representation of environmental non-governmental organisations on company boards. Members of water company boards are subject to a number of duties under the Companies Act 2006, including a duty to promote the success of that company. A director’s fiduciary duties may conflict with the organisational objectives of the environmental group in question, thus preventing their objective participation in board membership. We cannot have a situation in which an environmentalist on a water company board is not comfortable with their duty to promote the success of that company. I produced a factsheet detailing how the SAR is used to ensure the continued provision of vital public services. However, I remind the House of the facts. I am being very clear: the shortfall recovery power can only be used to recover shortfalls in repaying Government funding. For the last time, I hope, it cannot and would never be used to recover financial creditor or shareholder losses relating to investment in the company. If the amendments were accepted as proposed, it would involve a radical change to insolvency policy, which has been a long-established practice since 1986. Question put and agreed to. New clause 18 accordingly read a Second time, and added to the Bill.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  This Bill will, of course, empower Ofwat to take necessary action where it finds wrongdoing, including through changes to remuneration under clause 1. I know my hon. Friend cares a lot about this.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  Bills have obviously had to increase in the latest price review because we have had record levels of under-investment in our infrastructure. However, new clause 18 is intended to ensure greater fairness. It is important for struggling customers that he, as the local Member of Parliament, is talking to the water companies to ensure that they are informed about the support mechanisms that are available, and about how they can access them and everything else to which they are entitled.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I thank the right hon. Gentleman for his intervention and also for the many times that he has talked to me about internal drainage boards since I became a Minister. On his question, if customers are not getting the service to which they are entitled, that is absolutely something that should be taken through Ofwat and the regulators. I am more than happy to pick that matter up with him outside the Chamber. I hope that Members across the House will agree that new clause 18 is a welcome addition to the Bill, ensuring that the Government have the necessary powers in place to bring forward secondary legislation in future—once we have thoroughly considered all options for improving the support available for vulnerable customers.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I wholeheartedly agree with my hon. Friend. What she is witnessing in the streets of her constituency is a perfect example of the crumbling infrastructure that we have inherited.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  Despite our political differences, the hon. Gentleman and I had a very interesting and—what is the right word?—comradely debate in Committee. As we explained in Committee, conversations on the water restoration fund are still ongoing. I honestly do not believe that primary legislation is needed, which Conservative Front Benchers know, as they established the fund without primary legislation. I gently point out, as I have already mentioned, that within the 18 months of its establishment under the previous Government, the fund did absolutely nothing.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I share the hon. Gentleman’s passion and love for chalk streams—the rainforests of the United Kingdom. Part of this Bill will drive the performance change in the industry that we want to see and reduce sewage discharges, which are doing such damage to such precious habitat. Although some Members have called for the Government to go even further on monitoring, I reassure the House that we have carefully considered how best to increase transparency without driving unmanageable increases in customers’ bills. As promised in Committee, I have provided a factsheet on this issue, and I can make it available in the House of Commons Library. Rolling out event duration monitors over two price review periods will provide the best value for money for customers and the environment, and does not risk compromising water companies’ ability to deliver other vital improvements to our sewage system. It is important that we direct investment at improving the sewage network to decrease overflow charges, and not just at monitoring, particularly where it does not provide valuable insight into the harms associated with discharge. There is a balance to be struck, and I believe we have got it right. The public know that there is too much sewage in our waterways. Whichever way we look at it—be it through volume or duration—they know there is too much. The focus must be on reducing it.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I wholeheartedly pay tribute to the Ilkley Clean River Group and to the work that my hon. Friend does in championing it in this House.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  Let me try to get through my remarks. If it becomes feasible in future for companies to install monitors more quickly, they will be encouraged to do so. In addition to reporting requirements for emergency overflows, other measures in this Bill will ensure that water companies have robust plans to reduce pollution incidents and empower the regulator to punish wrongdoing effectively. This includes requirements to produce pollution incident reduction plans and implementation reports, as set out in clause 2 of the Bill, and requirements for water companies to consider the use of nature-based solutions in the production of their drainage and wastewater managements plans, as set out in clause 4. The transparency provided by these measures will drive a culture change ensuring that water companies have the right incentives to reduce discharges of sewage into our precious rivers, lakes and seas. Let me be clear that the Bill also provides comprehensive powers for Ofwat to enforce the requirements introduced by the Bill to increase transparency, including through use of significant fines. I can reassure the House that where discharges are found to have breached permit conditions, the regulator will not hesitate to take action. In relation to new clause 14, I also make it clear that Ofwat has a duty to secure that companies are able to finance the delivery of their statutory obligations, including meeting pollution targets. The Government are committed to acting as fast as possible to reduce sewage pollution in our waterways, and already have stretching pollution targets in place, informed by detailed analysis and extensive engagement. These targets will drive £60 billion of investment between 2025 and 2050, and almost £12 billion of that investment will begin this year, improving 2,800 storm overflows by 2030. I hope this reassures the House that, where water companies do not comply with requirements around pollution incidents and the reporting of those pollution incidents, the regulator will not hesitate to take action.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I will, but I have only 10 minutes.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  As I have mentioned, I am a huge fan of our chalk streams. The hon. Member is right to point out that the much-lauded water restoration fund that some Members are so keen to talk about was established in November 2022, yet 18 months later the grand total of the number of projects supported by it was zero. A number of hon. Members have also put forward suggestions to improve information and data sharing more broadly. The hon. Member for Beaconsfield (Joy Morrissey) has put her name to some of these amendments. Although the Government do not think it necessary to bring forward legislation in this space, we are actively considering ways of making data more accessible to the public through non-legislative means. This includes information on water companies’ performance and data on local sewer networks in map form, which must be made available free of charge under the Water Industry Act 1991.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  I beg to move, That the clause be read a Second time.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  That excellent point was well made by my hon. Friend. I hope all hon. Members agree that the amendments tabled by the Government will only strengthen this Bill and will support new clause 18.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  The hon. Member and I served on the Public Bill Committee, where we spent much time discussing many of the amendments. I cannot comment on decisions about the business of the House and urgent questions. As I say, I will do my absolute best to cover all the points raised by hon. Members. I hope they accept that I generally try to be generous with interventions, but I want to put on the record my response to the amendments. I hope the House will give forgive me. A number of hon. Members have tabled amendments that seek to increase transparency around water company operations and pollution incidents. The Government absolutely agree that greater transparency is needed to better enable the regulators and the public to hold water companies accountable. Although I have previously explained why it is not practical to prohibit all discharges from emergency overflows, which are a necessary safety valve in our sewage system, I reiterate this Government’s commitment to reducing the harm caused by sewage discharge. Ensuring that all emergency overflows are monitored is a critical step in enabling the outcomes that we all want to see. Information on the frequency and duration of discharges will help to direct investment to further reduce sewage discharges into our waterways, and to better enable the public to make informed decisions about accessing their local waterways.

• 28 Jan 2025 · Water (Special Measures) Bill [Lords] · Hansard source

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  The right hon. Gentleman is indeed an eager beaver. As much as I do not wish to pour water on his enthusiasm, I will of course respond to all the amendments at the end of this stage of the Bill, as protocol expects. I hope he is able to contain his excitement, and is looking forward to my final comments on that area. And I shall be practising my pirouettes in anticipation. I wish to pay special thanks to the Welsh Government, the Deputy First Minister and the officials who have worked so openly and collaboratively with the UK Government throughout the development and passage of this Bill. I also thank the Senedd for their consent, which we received on 21 January. I look forward to continuing to work closely with our Welsh counterparts to protect our rivers, lakes and seas, particularly those that cross our borders.

• 16 Jan 2025 · Water (Special Measures) Bill [ Lords ] (Fifth sitting) · Hansard source

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  On the welcoming point? Of course.

• 16 Jan 2025 · Water (Special Measures) Bill [ Lords ] (Fifth sitting) · Hansard source

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  The commission will focus on reforms that improve the privatised regulatory model. We have already been quite clear that nationalisation of the water sector is not in scope because of the high costs associated with that option, the lack of evidence that it would lead to improvements, and the delays that it would cause in achieving better outcomes for consumers and the environment. The commission covers Wales and will review the model in Wales, where the largest water company operates a not-for-profit dividend model with no shareholders. In addition, as I have previously noted, the scope of the independent commission will include the governance of companies and the operation of existing tools such as the special administration regime. In the light of my comments, I hope that the hon. Member for Witney can see why the Government will not accept his new clause.

• 16 Jan 2025 · Water (Special Measures) Bill [ Lords ] (Fifth sitting) · Hansard source

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  Conversations are ongoing, but I would not want to pre-empt their results. I recognise from previous conversations that this is a concern for the hon. Gentleman. The Government consider that the Bill is not an appropriate vehicle to resolve this issue. It should be addressed through measures such as the water resources management plans or draining and waste water management planning. As was mentioned earlier, it is our job as legislators to ensure that we draft the right amendments to the right Bills in order to achieve the aims we are seeking. Water companies already account for local plan growth forecasts in their water resource management plans. These plans for water provision over a five-year period with a forward look over 25 years provide for a development outline. We recognise the need for stronger and earlier join-up between local planning authorities, regulators and water companies. As I mentioned, work is under way to consider such questions and to ensure timely and mutual understanding of water resource requirements at a local scale to support sustainable development. That work includes the independent commission on the water sector regulatory system, which will provide recommendations for the roles and responsibilities of the water industry regulators that govern the water industry model and strategic planning. As such, it would be premature to legislate in this area or to impose any additional responsibilities for regulators until the commission has concluded its review, but I reassure hon. Members that the Government recognise the need for water companies and local planning authorities to co-operate effectively in considering the water infrastructure requirements that will underpin development plans, housing growth and sustainable development. The proposed new clause is unnecessary, and I ask the hon. Member for Witney to withdraw it.