In the House of Commons, Shadow Environment Minister Dr Neil Hudson MP urged the Labour Government to save consumers and the taxpayer from the fallout of financial issues of companies like Thames Water, by introducing limits on their borrowing levels, during Oral Parliamentary Questions to the Department for Environment, Food and Rural Affairs.
Over 15 million consumers reliant on Thames Water’s services, including many constituents of Dr Hudson’s in Epping Forest, are currently at the mercy of talks to save Thames Water, following unsustainable borrowing and debt increases.
Dr Hudson’s question took the opportunity to remind the Government that at the heart of rescuing Thames Water is protecting its consumers and the wider public, who would be forced to pay a bailout worth billions of pounds if no rescue deal is achieved, and customers would face a second blow in the form of higher water bills as a result.
Likewise, Dr Hudson challenged the Government on its choice to prevent vital action to ensure this precarious situation never presents a risk to consumers again, having blocked a Conservative amendment to the Water (Special Measures) Act, which he as Shadow Environment Minister put forward on behalf of the Opposition during the passage of that Act in Parliament earlier this year, that would have enforced limits to excessive borrowing and debt rises that put Thames Water and the consumers in peril.
Protecting the public interest by getting water companies cleaning up their act has been a hallmark of Dr Hudson’s activity as a Parliamentarian. He sat on the previous Environment, Food and Rural Affairs Select Committee, directly questioning water company executives and stakeholders about high bonuses for chief executives and rising water bills, at the expense of failing to protect water quality and poor financial resilience.
As a Member of the Conservative Environment Network, Dr Hudson pushed to turn the situation around with key policy changes that were successfully implemented by the previous Conservative Government, including calling for fines for water companies who breach their obligations to have no fixed limit, and banning bonuses for chief executives of water companies that commit criminal breaches.
Since then, he has led the Opposition’s response to the Government’s activity on water including its response to the Water (Special Measures) Act, championing an array of amendments that would have brought reform to the water industry such as:
- Legally mandating fines recovered from water companies who fail to meet their duties be reinvested in the Water Restoration Fund.
- Requiring consumer bills be reduced where water companies have received fines.
- Preventing the Government from allowing consumer bills to rise to recover Government costs of providing financial support, where those customers do not use the company affected.
In the Commons Chamber, Dr Hudson said:
“The future of Thames Water is in sharp focus again affecting millions of people and the potentially the wider UK taxpayer.
Bizarrely, the Third Party to my left led legal action that could have sunk the company, and with them Reform are also happy for the company to go under, exposing taxpayers to billions and pushing consumer water bills through the roof.
And this Labour Government in the passing of the Water Special Measures Act repeatedly blocked our Conservative amendment that would have enabled limits to be placed on the amount of money that can be borrowed by water companies.
As we reach a precipice with Thames Water, and with the Cunliffe Review’s clear call for improved financial responsibility, will the Government now rethink their approach and adopt sensible measures to put water companies on a more stable and secure financial footing, to protect water, the environment and the British taxpayer?”
Following his Commons intervention, Dr Hudson commented:
“The precipice facing Thames Water is a stark reminder that excessive borrowing and debt by water companies leaves us as the taxpayer only one step away from footing the bill, to the potential cost of billions of pounds.”
“Sadly, other political parties have ignored the impact this has on taxpayers, and alarmingly the Labour Government blocked our Conservative amendment to the Water (Special Measures) Act that would have set legally binding borrowing limits on water companies.”
“The Government need to rethink their approach and protect the public from water industry financial fallout without delay.”
