My hon. Friend makes a very good point.
I know that colleagues are awaiting the outcome of Ofwat’s investigation into water company sewage treatment works and Ofwat’s separate enforcement case against South West Water. However, we do not need an investigation to tell us that awarding massive bonuses and handing out lucrative payouts to shareholders at the same time as releasing sewage 42,000 times into our waters is grotesque. The south-west deserves so much better, and water companies such as South West Water must demonstrate a link between their performance and their generous bonuses, through Ofwat’s licencing conditions.
Given South West Water’s low environmental performance score, I am sad to say that I struggle to see why bonuses even exist within the company. We pay the highest sewerage bills in the country; our money should not be used to reward failure. The Government subsidise water bills in our region by £50 per household every year. Despite huge pressures on our public finances, that Government support will continue thanks to Conservative lobbying. However, the support is discretionary on public finances. That is why I have called on South West Water to commit to funding the support itself should it ever be withdrawn by the Government. I am sad to report that South West Water has so far refused to make such a commitment.
Colleagues will be aware that the Government recently accepted an amendment to the UK Infrastructure Bank Bill that sought to ensure that water companies set out costed and time-limited plans to reduce discharges before they receive funding from taxpayers. The Government listened to the arguments that were made and agreed. We are not playing politics with pollution; we are making sure that water companies clean up their act.
As we can see from this debate, this is clearly a cross-party issue, and I am pleased that the Government are working on it with all parties. We have the legislation, the investment plan and the means to hold water companies to account. We need South West Water to continue to step up, to invest and improve our sewage infrastructure, and to stop the sewage discharges.
I am proud that this Conservative Government have launched the toughest ever crackdown on sewage spills. Under the Environment Act, water companies are forced to embark on huge investment to update our Victorian sewage infrastructure. As I say, we are enforcing that with bigger fines of up to 10% of a company’s annual turnover, with the money raised ringfenced to improve water quality.
As I have said in this debate many times, we are holding South West Water to account. Many of us in the Chamber are working with local councillors and campaign groups to deliver better services for our constituents, improving our bathing waters, protecting our natural environment and maintaining the vibrancy of our coastal communities.
I look forward to hearing colleagues’ contributions as we debate the performance of South West Water. For me personally, its performance to date can be summed up in one word: shameful.
2.43 pm