Oral Answers to Questions — Environment, Food and Rural Affairs – in the House of Commons am 10:30 am ar 2 Gorffennaf 2009.
What recent discussions he has had with Ofwat on water prices; and if he will make a statement.
Mr. Speaker, in line with your ruling, I shall say merely that I met Ofwat on
I thank the Minister for that brief response. I hope that he will be aware of the rising and continuing anger of South West Water charge payers who, even after 15 years, are still paying substantially more for their water than people in any other part of the country; that is particularly true of people in Cornwall, which is one of the poorest regions in Europe. The Government simply cannot stand by and leave everything to Ofwat. What are they going to do to address that total unfairness, which has gone on for far too long?
I will tell hon. Members not only what the Government will do, but what we have done. We commissioned Anna Walker to undertake a review to examine those very issues, not only in the south-west, but across the UK. For those hon. Members who are not aware of this, I should say that the review reported its interim findings this Monday. The Government will seek to respond to that review in full when the full report is published, but we have indicated that we are aware of the particular issues in the south-west and we have to find a way to address them. I hope that the hon. Gentleman will attend Anna Walker's forthcoming roadshow in the south-west.
Is my hon. Friend aware that the word on the street is that Ofwat is weak and needs to be shaken up or changed, that the private equity owned water companies are getting away with blue murder and that consumers are getting a raw deal? When is he going to do something about Ofwat?
My goodness, I am having to deal with some challenges today, Mr. Speaker. I also hear the opinion that Ofwat is far too strong and rigorous sometimes. What I would say to reassure my hon. Friend is that this Government introduced clear, explicit social and environmental guidance and we expect that to guide what Ofwat does. It has to make its own decisions and it is an independent economic regulator, but we have to ensure that issues of social justice, affordability and so on are properly taken account of, too.
Only yesterday, I passed to Ofwat a letter from the treasurer of the 1st Droitwich Spa scout group expressing concern about a likely increase in its water charges from £50 to £1,000 because of run-off charges. That will force the group to choose between a much-needed new roof for the scout hut or an increase in subs for the 60 beavers, cubs and scouts, which they could ill afford. What comfort can I give the 1st Droitwich Spa scout group?
The hon. Gentleman can give it the comfort that this Minister has met both the regulator and United Utilities and will continue to put on the pressure. It is right that the dialogue between the independent economic regulator and the water companies is the way they define how they will take their regime forward. I am clear that there should not be disproportionate impacts on groups such as community hall groups, scout associations, churches and so on. The great thing is that United Utilities has applied a moratorium in order to examine that very issue in its area. I am looking forward to learning the outcome of that shortly, because I hope that it will guide the way for future decisions.
Does my hon. Friend accept that a social tariff especially for large low-income households is essential if they are not to be clobbered by huge increases under water metering, and that Ofwat is unlikely to approve such tariffs without clear and firm guidance from the Government? Will the Government issue such guidance as a matter of urgency?
My right hon. Friend will know that that is the very reason that we set up Anna Walker's review—to consider issues of affordability, social tariffs and how water metering can play a role not only in water efficiency, but in driving down costs, especially for low-income households, and measures to tackle water poverty. We need to look in the round at Anna Walker's interim report and to respond in full to her final report to deal with the very issue that my right hon. Friend raises.
Mr. Speaker, may I add my personal congratulations?
Why has the Minister not put in the draft Flood and Water Management Bill his response to the Cave and Walker reviews, and why is he not giving a clear sense of direction to the water industry and a clear sense that the Government are on top of those issues?
The hon. Lady refers to the Cave review, as opposed to the Walker review, which has been out to full consultation. We said that we would respond to it in full. There is nothing that precludes the Government or the regulator from acting on what is in the Cave review: we do not have to wait for another pricing review. We have to ensure that whatever we propose in the Bill next Session deals with the important issues, including those that were raised by Pitt in his review—we said that we would act on those. We also need to deal with issues of flooding and so on, and we will get on with that.