I thank the hon. Lady for that. I was going to mention it later, but what I was going to say was that it is a shame that the Labour party does not actually look at what is going on. It has been referred to by all of our colleagues. In the water industry we have the most significant project and spend that has ever taken place, directed by this Government, to tackle this whole issue once and for all. I am happy to share the very extensive list of things that are taking place and that will set us absolutely on the track we need to be on.
Also, however, I am a little concerned that we do not want to mislead the public. There are some wonderful bathing waters around the south-west and I, too, love swimming off the coast there. Last year, 93% of our bathing waters, which are mostly off the coast, were classed as good and excellent. That is an excellent record, and it
has only improved under this Government. We should not forget that. Obviously, we have to make them all perfect, but this Government have a good record.
To go back to the Labour party, it is all very well for Labour Members to spout on about what they would do and what we are not doing, but the EU took the Labour Government to court over the state of water and they still failed to act. We need to look back at others’ records—we are the Government putting things right.
South West Water has now committed to reducing its average number of discharges through overflows to 20 per year by 2025. That is definitely a step in the right direction, but the public clearly want to ensure that that happens, and we will be on its case. I have also been assured that by continuing on its current trajectory, the company will deliver the absolute lowest number of pollution incidents in the sector by the end of this year. Innovative solutions are being brought forward to include drought resilience in the south-west, which has also been touched on. That is clearly very important.
To be clear, we need our water companies to improve in the way that we need them to, and to be successful, because we want them to stand as successful businesses that people want to invest in. We need that huge investment in the industry, so we want to see the companies operating correctly. That is why we have all the strict measures and Ofwat as the competent regulator, which I will get on to in a minute. Where performance does not improve, the Government and the regulators will not hesitate to hold water companies to account, including South West Water.
The Environment Agency is focusing on South West Water permit compliance. It is prioritising high-spilling storm overflows for investigation. South West Water has now installed the event-duration monitoring I mentioned on all its sites, bar six or seven complicated ones, which will be under way. Since 2015, the Environment Agency has brought 56 prosecutions against the water companies more broadly, securing fines of more than £142 million. As the House is aware, following South West Water’s guilty pleas, on 29 March it will be sentenced for 13 criminal offences that took place between 15 July 2016 and August 2020. It is certainly being held to account.
Ofwat, as the economic regulator of the water industry, will play its role in holding companies to account for not meeting their commitments. Rightly, since South West Water has been shown to be such a poor-performing company, Ofwat required it to present its improvement plan setting out steps to improve performance. As touched on today, South West Water will have to return £13.3 million to customers as a result of not meeting water performance commitments, including those on pollution incidents.
The hon. Member for Tiverton and Honiton (Richard Foord) made a blatant comment along the lines of, “Let’s get rid of Ofwat”, but that is too simplistic. As was said by my hon. Friend the Member for Newton Abbot (Anne Marie Morris), we need to ensure that the regulator, too, is functioning absolutely to its right capacity. Given that, in our strategic policy statement last summer, we put the environment at the top of the agenda, Ofwat has to ensure that clean and plentiful water is provided, and to demonstrate that that is not have an adverse impact on the environment. Customer service is obviously right up there as well.
In 2019, Ofwat asked companies to link executive pay to delivery for customers—yes, we might have thought that that was there already, but it is now. Similarly, Ofwat is exploring ideas and other options relating to dividends and pay. That includes changes to companies’ licences or ensuring that fines for misdemeanours come out of dividends and do not impact customers. I think that is what my hon. Friend was getting at. This is all on the radar, and she is absolutely right that it has to be fully functioning.