PARLIAMENTARY DEBATE
Sewage Discharges: South West - 27 November 2024 (Commons/Commons Chamber)

The issue of sewage dumping in our waterways was one of the biggest concerns of residents across my North Cornwall constituency during the general election. And judging by the number of Members here today, I certainly was not alone in that. In the course of my speech, I will take the opportunity, first, to highlight the scale of the problem of sewage dumping and its effects on our communities; secondly, to set out what infrastructure improvements are badly needed to tackle this scandal; thirdly, to outline some of the regulatory reforms that are required; and, finally, to outline what South West Water must now do to end the scandal of constant sewage dumping in our beaches and rivers.

North Cornwall is a very rural constituency. We have several rivers, including the Camel, the Inny and the Allen. North Cornwall is also blessed with some of the most beautiful beaches in the world, including Harlyn, Summerleaze, Widemouth bay, Daymer bay, Polzeath, Crackington and many more. I was extremely fortunate to grow up in Cornwall where I learned to swim and surf at these incredibly beautiful spots. North Cornwall’s families and residents, young and old, thoroughly enjoy the waves at Mawgan Porth, the fishing villages of Padstow and Port Isaac and the breathtaking cliffs at Tintagel. They also enjoy the impressive sea pools in Bude and Boscastle.

The Environment Agency’s 2023 figures showed that the total duration of sewage overflows discharged into local rivers and waterways in the south-west region was 530,737 hours, which represented an 83% increase compared with 2022.

In 2020, Natural England notified Somerset councils that the phosphate levels in the Somerset Levels and Moors Ramsar site were too high, and thousands of homes are still caught in a moratorium. Alongside this, last year, there were 3,336 sewage spills in Glastonbury and Somerton, making it the most polluted constituency in the country. Does my hon. Friend agree that water companies should be investing in more sewage treatment plants and that the Government should introduce a sewage tax on water companies’ profits?

I absolutely agree on both of those points and I shall address them in slightly more detail in a moment.

In 2023 alone, many of the blue flag beaches in North Cornwall experienced more than 2,700 hours of sewage discharges across 148 separate incidents. This pollution, as my hon. Friend has just mentioned, is often linked to combined sewer overflows, which are activated during heavy rainfall to prevent urban flooding, severely compromising water quality and endangering swimmers and marine life.

I congratulate my hon. Friend on securing this debate. He talks about storm overflows. The data recorded from storm overflows by South Water West is sometimes different to that which appears on the Water UK app. Does he agree that we need just one single reliable source for sewage outflow data?

I agree that we need one reliable source of data, and I will come on to address that slightly later in my speech.

I commend the hon. Member for bringing forward this matter. He referred to the fact that his mum and dad live in a farm building, and it is clear what the issues are there. Does he have the same problems as my constituents when it comes to single houses with septic tanks? The removal of sludge can be done only once a year. For disabled people and big families it is important to have it done twice a year. Has he experienced that issue in his own constituency?

Having grown up in a very rural area in North Cornwall, I know that many of my constituents face that issue, so I thank the hon. Member for raising it.

To look beyond the shocking statistics for a moment, and properly understand the real impact that the issue is having on coastal communities such as mine, I refer to three-year-old Finley from Widemouth bay. This time last year, Finley’s mum took her son to Widemouth bay to play on the north Cornish beach. Later that day, Finley became extremely unwell, and a friend’s child who had been on the same beach at the same time had similar symptoms of diarrhoea and vomiting, which lasted for weeks. Just last week, there were three sewage dumps in Widemouth bay. Tragically, in just the few months since my election, I have lost count of the number of constituents who have written to me or stopped me in the street to explain how they have stopped swimming or surfing in our oceans for fear of getting sick from the contaminated water.

Cornwall is covered with sewage alerts, and proceedings have been taken against South West Water. Does the hon. Member agree that the new water review will be vital to reform regulation and infrastructure?

I will address the water review in a moment. I am pleased that the Government are finally looking at this issue in detail, and crucially, as the hon. Member says, consulting, which is so important.

As I said, I have lost count of the constituents who have told me that they have stopped swimming or surfing in our oceans for fear of getting sick from the contaminated water. Imagine the immense effect of that on our tourist industry in Cornwall and the south-west, which has been the envy of the country. Sewage spills are wrecking not only our health but vital local businesses. Surfers Against Sewage has reported large increases in reports of people getting ill after entering the water. In the year to September 2022, there were 720 reports, double the number in the previous year. By September 2023, the number had rocketed to 1,924. It was with a certain amount of trepidation that I went surfing at Summerleaze beach in Bude just days before the election—not just because my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) was standing next to me in a wetsuit and I wondered what stunt awaited me, but because there were visible signs of a sewage dump from earlier that day.

It is not just our beaches that bear the brunt of sewage dumping but our rivers. Just today, Natural England confirmed that the River Camel remains in an unfavourable condition, and Cornwall Wildlife Trust cautioned me just this afternoon that our ecosystems and species are in grave danger if we do not urgently put a stop to this.

My constituency is a little further north but still in the south-west. I recently spent an afternoon with some environmental campaigners in Tewkesbury, testing and recording samples from the River Avon for nitrate and phosphate pollution. The amount of pollution was found to be very high in the former and high in the latter, consistent with their findings since June 2023. Does my hon. Friend agree that it is time to put environmental experts on water company boards to hold them to account and ensure that environmental concerns take precedence in the boardroom?

I do agree with my hon. Friend—I am starting to wonder whether hon. Members have seen my speech because I was coming on to that.

How do we end this scandal? Despite the results of the parent company of South West Water, the Pennon Group, for 2023-24 showing that the group’s revenue had increased 10% to £908 million, largely thanks to higher customer bills, very little of that was spent on much-needed infrastructure upgrades. To add insult to injury, the company recently announced that South West Water bills will rise by a staggering 22% by the year 2030. A copy of Pennon Group’s five-year business plan to 2030 seemingly describes the state of our waterways in a parallel universe. On page 27, under the heading “Bathing water quality”, reference is made to

“delivering improvements at bathing and shellfish waters across the region, to maintain our 100% bathing water performance.”

A quick glance at the company’s own WaterFit sewage app shows there to be sewage dumping at multiple beaches across Cornwall and the south-west region today, and quite likely as I speak.

I thank the hon. Member for securing this important debate. Sewage is a massive issue across the south-west, and in Dorset in particular, and a constant source of frustration for my constituents. One issue that comes up time and again is the excessive profits that private water companies are making. Does he agree that it is time those companies were brought back into public ownership?

I will lay out some of my suggestions for water company reform shortly, so I will not give away any spoilers just yet.

It is well known that one of the biggest reasons for sewage dumping is that there is not enough capacity in our storm overflow tanks to hold rainwater. To make sufficient capacity, those tanks are routinely emptied and raw sewage is pumped into our waterways. Soon after my election, I was faced with reports of brown water coming out of residents’ taps in St Eval and, in some cases, no water at all. It turned out that the reservoir tank at the nearby Bears Down reservoir had serious cracks in it, and water tankers were deployed to serve the area. The capacity of the tankers was nowhere near sufficient, and a measly compensation of £50 per household was issued after weeks of severe disruption.

Similarly, in Week St Mary, residents complained to me about problems with their water pressure, which have persisted for years. In some cases, the sudden drop in pressure caused scolding from the resulting hot water. It is quite clear that those issues have arisen after decades of under-investment in our water and wastewater infrastructure. We may reasonably ask, “Where has Ofwat, the water regulator, been while all of this has been going on?” Ofwat has seemingly been missing in action, which brings me to the urgent need for a regulation revolution in our water industry.

I welcome the Government’s plan—part of the Water (Special Measures) Bill—to prohibit performance-related pay for senior officials in a year when a water company fails to meet its environmental, consumer or financial standards. I eagerly await how those standards will be more tightly defined. I am more suspicious, however, about the proposal to require each water company to publish an annual plan detailing how it will reduce pollution incidents. Many water companies already do that, and my constituents want to know how those companies with their glossy brochures and ambitious targets will be held to account.

There was a palpable sense of relief among senior executives at South West Water when I met them soon after the details of the Bill were published. On enforcement measures, if the water companies fail to meet improvement targets, Ofwat will be given the power to issue fines. It is questionable whether fines will incentivise firms that are making hundreds of millions of pounds and, again, I look forward to seeing at what level the penalties will be set following the consultation.

My hon. Friend is making an excellent case. Certainly in my own constituency, further west than his own, in west Cornwall and the Isles of Scilly, there have been 18 discharges around the coast just in the past 10 days. On the proposed changes in the Government consultation, as attractive as the concept of bringing water back into public ownership is—and I strongly support it—the consequences and costs make it rather challenging. The Conservatives set up the companies as risk-free, money-making emporiums. Does he agree that we need to bring in regulation that ensures they are governed in the public interest?

My hon. Friend makes a good point, and I will outline some of the measures I will put to the Minister.

I urge the Government to go much further by scrapping Ofwat, which has proven itself to be toothless and missing in action. The Liberal Democrats would replace Ofwat with a much more powerful clean water authority, which could ban bonuses for water company bosses who fail to stop sewage dumping, revoke licences of poorly performing water companies immediately, force water firms to publish the full volume and scale of their sewage dumping, mandate local environmental experts to sit on water company boards, and set legally binding targets on sewage discharges.

I thank the hon. Member for giving way and for bringing this debate before the House. On the question of public ownership, does he think that the independent commission on the water sector regulatory system might be better off if it were tasked with at least considering how public ownership of water companies might work, rather than the current situation, in which this supposedly independent commission has been banned from considering one of the possible solutions to the problem?

The hon. Member raises an important point about independence. As was covered briefly earlier, that consultation will be a very important part of this process.

Lib Dem amendments have recently been tabled in the other place to empower the regulator to revoke water company licences in the face of repeated failures and, crucially, to make it a criminal offence for water companies to fail to implement pollution reduction plans, holding senior managers personally and criminally liable. In the last Parliament, my Liberal Democrat colleagues in this place also tabled an amendment to the Victims and Prisoners Bill that would have created a sewage illness victim compensation scheme. Under that scheme, where medical evidence is provided to support a claim, proper compensation would be payable by water companies to their victims, such as three-year-old Finley and his family. I take this opportunity to plead with the Minister, on behalf of all my constituents, to seriously consider these measures so that water companies are finally held accountable, with no more excuses and no more delays.

Picking up on a point made by my hon. Friend the Member for Honiton and Sidmouth (Richard Foord) earlier, EDMs—not electronic dance music or early-day motions, but event duration monitors—that are fitted to storm overflow tanks only measure the number and duration of spills, not the volume. There have also been reports of faults with those EDMs, which could represent a serious under-reporting of sewage spills, significantly skewing the data. That could mean that the situation is far worse than we thought. Whatever enforcement approach is taken by the Government against water companies, the accuracy of the data will be crucial, so I ask the Minister to please consider the accuracy of the current monitoring system.

When I took my seat in this place, I promised my constituents that I would always speak truth to power. In a previous career, I advised businesses and their leaders. If I could offer some advice here and now to the chief executive of South West Water, I would say, “Please do the decent thing and go now.” In what other universe could a chief executive preside over such a record of abject failure? With Ms Davy having been the chief finance officer since 2015 and then the chief executive since 2020, almost 10 years of failed leadership have brought us to this diabolical situation. How on earth can anyone now have confidence that South West Water will miraculously turn things around in the next five years?

Ms Davy declined to take a bonus last year, instead adding that bonus amount to her base salary, which at last count was a whopping £860,000. Before Members start worrying about South West Water’s shareholders, they too were awarded a generous dividend of 44p per share. This is all while water bills are rocketing, children are getting severely sick as a result of that greed, and people everywhere are too afraid to enjoy the beaches and rivers that make Cornwall and the wider south-west so uniquely special. As a society, at what point do we come together and say that this has to stop, for the sake of our children and the sake of us all? Well, I humbly suggest that that point has now long passed.

I thank the hon. Member for North Cornwall (Ben Maguire) for securing this important debate and everybody who has intervened. May I also express my support and sympathy for Finley? It is awful to hear about children becoming ill when they are just enjoying the things that we enjoyed so much as children. I am genuinely sorry to hear about that.

As I have said before, the amount of sewage in our waterways is unacceptable—clearly unacceptable. For too long, the level of pollution in our rivers, lakes and seas has been left unchecked. The south-west of England, with its 860 miles of coastline, is blessed with some of the most stunning waterways in the country, and it is of course vital that we protect these natural assets.

South West Water’s environmental performance is clearly not good enough. It continues to be rated as requiring improvement in the Environment Agency’s environmental performance assessment, and it has the highest rate of incidents on its network in the sector. So far, as the hon. Gentleman said, there have been 20 pollution incidents in his constituency, and they are clearly unacceptable.

Where companies have failed in their statutory duties to maintain their assets properly and protect the local environment, regulators will take appropriate enforcement action. The Environment Agency has informed me that 24 charges against South West Water currently await a court hearing, and many of them relate to discharges in North Cornwall. Of course, it is inappropriate for me to comment further on these while those proceedings are ongoing.

However, I am reassured that the new powers in the Water (Special Measures) Bill, including those relating to the monitoring of emergency overflows—I quite enjoyed the idea that we could call EDMs electronic dance music instead, and maybe that is what I will be thinking of in the future—will assist the Environment Agency with workload and efficiency relating to these types of offences. Two new dedicated inspection teams have been in place since October this year. Once officers are trained, the annual number of inspections in the region will double from the 335 they will carry out this year. I think that is positive action that has been taken by the Environment Agency.

Looking forward, South West Water is taking action to deliver necessary improvements. Subject to Ofwat’s final determinations, it is planning to invest about £750 million over the next five years to reduce sewage spills by 58% from current levels. It is also aiming to cut pollution incidents by 30%, and investing £140 million to reduce nutrient pollution in rivers. This investment will mean cleaner rivers, seas and lakes across the country—I am keeping an eye on the time this time, Madam Deputy Speaker.

On storm overflow guidance, in support of the forward investment to reduce pollution incidents, on 21 November the Government launched a consultation on updated information and guidance for the management and regulation of storm overflow infrastructure in England. A document will be published shortly afterwards to ensure that water companies have a clear forward framework to guide investment in storm overflow improvements.

The Government have also intervened to increase the transparency of pollution incidents to enable the public and the regulators to better hold water companies to account. We have included a duty in the Water (Special Measures) Bill to require all water and sewerage undertakers to produce annual pollution incident reduction plans, along with an accompanying implementation report. The chief executives will be personally responsible for approving both the pollution incident reduction plans and the accompanying document.

On the national storm overflows hub, the Government have legislated to require water companies to publish all discharge data from storm overflows in real time. The hon. Member for Honiton and Sidmouth (Richard Foord) mentioned the need to have one reliable source of data, which is incredibly important. Water UK launched its national storm overflows hub last Friday. If hon. Members have not had a chance to look at it, please do. On transparency, it is very good; in making us angry about pollution incidents, it is maybe not so good. However, we can see where companies are discharging all around the country, how long they have been discharging for and whether they are online or offline. For transparency, it is a huge step forward.

I agree entirely with my hon. Friend, and I commend her for coming and raising that point. I completely support her.

I am aware of the new storm overflow hub that the Minister talks about. My point is that sometimes the data that the new hub reveals is different to the data that the water companies are revealing on their apps, such as the South West Water WaterFit app. That was discovered by a constituent of mine in relation to Sidmouth last weekend.

I am more than happy to look into any anomalies, so if Members want to send through details of where there seems to be a discrepancy in the data, I can pick that up.

South West Water has 156 bathing waters, and I am hoping that the hon. Member for North Cornwall will be pleased not only with our bathing water announcements on removing strict automatic de-designation, and removing fixed dates, but also that we are redefining the term “bathing” perhaps to include people who go surfing—I heard that he is interested in surfing. That will enable more people to enjoy the water environment. At the moment the term “bather” refers to people who swim, but we know that so many more people enjoy our beautiful water.

On 12 November DEFRA, jointly with the Welsh Government, announced a consultation on a package of potential reforms to bathing water regulations, and those changes will modernise the system to meet the needs of the public. The Government have been clear that there is no excuse for poor performance, and we will not look the other way while companies routinely fail to meet agreed standards. Water companies must take seriously their role in meeting public expectations and regulatory requirements, holding them to account when they fail.

Let me recap our three-stage approach to fixing the water industry. In the first week of the new Labour Government, the Secretary of State and I met water companies to secure agreement to amend their articles of association. Funding for vital infrastructure investment is ringfenced so that that money cannot go on bonuses—we saw evidence of that just last week. That money is for infrastructure improvement. There are new customers on the panels of water companies, as we are looking at changing the culture and giving customers a voice, and we are also strengthening protection and compensation for households.

The most significant increase in enforcement powers for regulators in a decade has come from the Water (Special Measures) Bill, which will arrive in the House for Second Reading before Christmas—I am sure I will see many faces in that debate. Those powers include providing Ofwat with powers to ban bonuses, enabling regulators to issue automatic and severe fines for wrongdoing, and there is also a duty on Ofwat to fulfil its environmental duties and legal requirements. The Bill will strengthen cost recovery powers to ensure that water companies bear the cost of enforcement activities.

The independent commission has been mentioned a few times, and it is needed to reform the whole water system. As we know, the system has developed incrementally since privatisation—I do not think anybody here thinks it is a system that we would wish to design in the way it has evolved. The call for public evidence will come in January, and as I have done before, I urge every Member across the House to get involved in that and find some evidence.

I thank the hon. Member for North Cornwall (Ben Maguire) for securing this important debate. Many of the points that have been raised this evening are issues we have all experienced, but I have found that South West Water’s communication and engagement with its customers has been atrocious over recent months. What more can the Government do to ensure that South West Water properly engages with its customers?

I apologise to the hon. Gentleman for having to rearrange our meeting yesterday as I was visiting a flooded area. We will get that meeting back in the diary quickly. He is right to raise that issue as it is one of the reasons why we want to put customer representation on the water boards, and give customers that stronger voice. I am more than happy to follow that issue up with the hon. Gentleman and see what more I can do to support him. It is incredibly important that customers are treated with the respect they deserve, and if water companies are not doing that, I am more than happy to follow it up.

I have two minutes left so I will quickly finish if hon. Members do not mind.

The commission will be led by Sir Jon Cunliffe, supported by expert advisers, who will be announced shortly. It will be wide-ranging and report to the Government in the second quarter of 2025. The recommendations are intended to inform future legislation to deliver long-term reform to clean up pollution and return the sector to stability across England and Wales, including of course the south-west.

I am grateful for all the contributions to the debate. This is a really important issue. I reiterate the Government’s commitment to driving meaningful long-term improvement in the performance and culture of the water industry. We are committed to improving the health of our rivers, lakes and seas across England and the south-west. I look forward to working with all hon. Members who are interested in fulfilling that ambition with us.

Question put and agreed to.