The shadow Secretary of State, my hon. Friend the Member for Oldham West and Royton (Jim McMahon), and my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) —my Greater Manchester neighbours—made powerful contributions highlighting the important issues that we face in Greater Manchester.
According to Environment Agency data from last year, United Utilities—the water company that covers the north-west of England—was the most polluting water company of them all. Despite that, the outgoing chief executive made £1.4 million from the sale of shares in the business. That goes to the heart of the
problem: if the Government do not hold private water companies to account with existing legislation and by creating new mechanisms to do so, they are rewarding catastrophic environmental damage. How is it that since privatisation, water bills have risen by 40% while £72 billion has gone to private water company shareholders?
Indeed, much-needed investment in infrastructure has fallen by 15%. According to the Financial Times, English water companies leak about 20% of water supply, compared with just 5% in Germany. United Utilities and Yorkshire Water alone were responsible for 124,000 of the sewage spills by water companies in England last year, accounting for 40% of the total number recorded. In reality, private water companies are simply allowed to get away with it because of a combination of a lack of ambition and the deliberate defunding of the Environment Agency, as the Conservatives have done with other public bodies.
In August last year, the Government published their storm overflows discharge reduction plan, which requires water companies to reduce discharges into designated bathing water and high-priority nature sites. Yet there is one glaring omission. Where is the plan to eliminate sewage dumping into our natural environment, and why should our constituents have to reach further into their pockets to cover rising bills when the rule-breaking bosses should pay the price?
Last year, the River Mersey, which runs through my constituency, had waste dumped in it almost 1,000 times, triggering an inquiry from Stockport Metropolitan Borough Council. It was reported only last week that plans to plant a new woodland in Stockport borough were cancelled after it was discovered that a field was so saturated with sewage that the soil could be too toxic for the trees. In March, the Industry and Regulatory Committee’s report on the water industry found that
“Ofwat and the Environment Agency must go further to hold water companies to account for pollution.”
It further stated that the Government must ensure that “adequate funding” is available. But that, again, is part of the problem. According to analysis by the Prospect trade union, the Government’s grant for environmental protection is currently 56% lower in real terms than in 2009-10.
Without enforcement, water companies are allowed to self-report breaches of permits that allow them to release raw sewage in exceptional circumstances via storm overflows, but evidence suggests that water firms are responsible for 10 times more sewage-dumping than they disclose. We have seen consistent rule-breaking, increased risk to public health, our leisure sites polluted and the undermining of Ofwat and the Environment Agency. The Labour party has a plan to tackle that head-on—why do the Government not have a plan?
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