It is a pleasure to serve under your chairmanship, Ms Elliott. I commend you on getting so many speakers in, and I commend the hon. Member for Bexhill and Battle (Huw Merriman) for securing the debate.
We have heard about the key issues regarding sewage discharges. I am in a unique position, in that I am the only MP in the current Parliament who is a sewerage civil engineer. I have designed combined sewer overflows and sewer flood alleviation schemes, so hopefully I can add some insight. I worked in the water industry from 1993 until my election in 2015. In my early days as a graduate engineer, I saw at first hand how the Tories resisted implementation of EU legislation, which left the UK with a massive catch-up in terms of cleaning up the beaches and getting rid of the “dirty man of Europe” moniker. I hope we do not see a return to that south of the border.
In those early days, as with the privatisation of the railways, the Tories argued that privatising the water companies had magically created investment and improved performance. The reality is that it was nothing to do with privatisation, but resulted from the requirement to comply with the EU bathing water directive and urban waste water treatment directive and allowing the water companies to borrow money. The fact that Scotland maintained public ownership of the water companies that would eventually become Scottish Water is proof that compliance and investment can be achieved without the need to privatise.
Since privatisation, English water companies have paid out nearly £60 billion in dividends. That money should be reinvested into upgrading infrastructure. It is effectively a £2 billion-a-year subsidy from water bill payers to hedge funds and asset management companies. It is also worth pointing out that bills in Scotland are lower than those in England and Wales.
It might not be popular or widely understood, although some Members did touch on it, but combined sewer overflows are required to protect the sewer system and prevent widespread flooding of roads and buildings. Nothing can be worse than houses being internally flooded by sewage, with people having to move out of their houses—which are left stinking and needing clean-up—and fearing that the same will happen every time it rains. The reality is that combined sewer overflows are required. Combined sewers are designed to take a one in 30-year storm so, by default, any storm greater than that will exceed the capacity of the system. That is why relief is required, but due to developments over the years, we need combined sewer overflows to provide relief from storms with return periods of much less than one in 30 years.
We have heard talk about elimination of storm overflows altogether and about a 2050 target. All the water companies are saying that they can do it. I do not think that is a realistic proposition. To eliminate CSOs altogether, we would need to completely separate surface water from the combined sewers. That means disconnecting all the road drains that are connected. It means disconnecting roof drainage. Hon. Members have suggested butts to deal with that, but they would still have to be disconnected from the sewers. Private surface water connections would also have to be identified because people drain their driveways or gardens and connect them into their own combined drain. All that needs to be identified and eliminated, so I would urge the Minister to think carefully about the practicalities of what is required. We would need massive new surface water sewers and pumping stations and, as I say, there would be disruption in many roads and streets throughout the country.
I have said that CSOs are a requirement, but they need to be well designed. They need to be designed so that they do not have a detrimental impact on water quality. From what we have heard today, that is not happening, so that needs to be addressed. It is obvious that this has not been the case in practice by private water companies over the years. Private Eye has long highlighted exemptions that were applied to discharges post privatisation. It was a “get out of jail free” card for a lot of companies. It is obvious that there is insufficient operational maintenance, and the reason is clear: they are making profit by cutting running costs. Not enough
is spent on maintenance, and that is why we have heard about pumping stations failing and then discharging into rivers and seas.
The worst company, according to the Financial Times, was Southern Water. Historically, it was close to defaulting on its loans and now with Macquarie at the helm, debt has risen to £6 billion and Southern Water’s risk profile is deemed to be at risk of a credit rating downgrade as a result of poor operational performance. It should be pointed out that Macquarie was allowed to take over Southern Water despite Ofwat highlighting poor performance at Thames Water, so there are serious questions about that ownership.
While the focus rightly has been on the shocking discharges of sewage into rivers and coastlines, and obviously on criticism of the performance of water companies, there is one big issue that I want to touch on, which it seems the Tory Government have been blind to. The elephant in the room, which was touched on slightly by the hon. Member for Bexhill and Battle, is the right to connect for developers in England and Wales. This means that a statutory water company cannot refuse a developer permission to connect to a sewer. It is effectively a right for a housing developer to pollute the environment, which is disgraceful.
The issue goes back to failings in the Water Industry Act 1991 and was confirmed in a Supreme Court case between Barratt Homes Ltd and Welsh Water in December 2009. Welsh Water had tried to prevent a developer connecting to an overloaded sewer, but Barratt effectively forced its right in law to connect to that sewer, and that has now been put down in law. It means that any responsible water company that is implementing improvements to a system can see all that good work and all the environmental benefits wiped out because a developer can, in theory, connect hundreds or even thousands of houses to the sewer, which obviously will then destroy any upgrades that have happened.
A key question for Back-Bench Tories to consider is, why have the UK Government not acted to resolve this loophole, which was put in law in 2009? Is it because they are too cosy with house builders? Is it because they fear it will impact house-building targets? It needs to be addressed soon. In Scotland, the law is clear via the Sewerage (Scotland) Act 1968. Any developer has to apply for permission to connect to the sewer system. If the assessment deems that a new connection will cause detriment to the sewer system, that developer has to pay for the remedial works to ensure there is no detriment to it. That means that housing developers have to take it on the chin and pay for upgrades. Quite often, they have to fund large volumes of storage, but they know that is the process and they deal with it. That is a process I have been involved in. I know how well it works, and that makes it even more incredible that it has not been adopted in England. I urge the Minister to think carefully about the right to connect.
The hon. Member for Bexhill and Battle touched on sustainable urban drainage. Again, Scotland has led the way in that regard; such drainage has been part of regulations for the best part of 20 years. Not only does a developer have to apply for the right to connect to a sewer; they have to implement sustainable urban drainage schemes, so that there is not additional surface water
going into our combined sewer system. Once more, that should be in the regulations. In Scotland, Scottish Water is a statutory consultee in the planning process, which is something else that the Minister should consider, as the hon. Member for Bexhill and Battle suggested.
The Minister and the Secretary of State can demand drainage improvement plans and they can talk tough on fines, but the reality is that if the right to connect issue is not resolved, all that talk counts for nothing, because developers will continue to connect to sewers, overloading them and causing problems. Hopefully the Minister can address that point as well as the other points that have been made.
3.35 pm