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9.10 pm
Mrs. Claire Curtis-Thomas (Crosby): Thank you, Mr. Deputy Speaker, for giving me the opportunity to speak in this important debate.
Water is a most valuable asset that makes possible life and death, equally. Under the Tory Administration, the privatisation of water was going to bring us many benefits. "Benefits" is an interesting word in that context. To most people, it means something more and something better. For the water authorities, it meant something more: more profits. It also meant something better: a better monetary return for the shareholders. Consideration of the stakeholder, the old and the young, and the environment was a necessary evil and was tolerated--just.
During the 1970s and 1980s, deregulation was the clarion call from business, and the Government duly responded. Many statutory regulations were relaxed and the onus of responsibility for compliance was passed along the chain to somewhere. The number of Government and local authority inspectors was reduced, and the public relaxed, secure in the knowledge that every business would be doing the right thing, having embraced deregulation. The people believed that, given the responsibility of managing themselves, the water companies would do just that.
To be fair, many water companies have behaved in a mature fashion and have been extremely diligent--but many have not. Given so much discretion, how many businesses would be prepared to do the right thing when it would undoubtedly dent the bottom line? How many would be prepared to revise charging programmes of their own free will and to install meters free of charge? Some did, but not all were willing. The deregulated water authorities were given enormous liberty, and then took enormous liberties with the British public.
Even the most damning public criticism failed to rein in the worst excesses of some water companies. I believe that only the threat of the Government's Water Industry Bill has brought the most pernicious operators to heel. Those companies were neither mature enough nor fit for deregulation: they needed to be restrained and told what to do because, left to their own devices, they failed to act responsibly. They have failed to do their best for the people of this country and for the environment on which we all depend. Their actions have led to the whole sector being publicly pilloried.
Many hon. Members and hon. Friends have spoken today, so I shall limit my comments to several clauses in the new Bill. Clauses 1 and 2 refer to disconnections. What was the collective moral position of the water industry that led it to disconnect nearly 21,000 homes during 1991-92? How could a responsible sector do that to the community that it served? Undoubtedly, the vast majority of individuals who suffered as a consequence were the most vulnerable, yet they were denied the most basic of needs. I am delighted that the Government intend to remove that right from the water companies. The disconnection policy gained a profit of a fraction of a penny per share--dare I suggest that the policy probably cost more than it realised? What motivates a company to apply such a punitive policy?
It is regrettable that the water companies have not seen fit to work together to protect the most vulnerable. I welcome the Bill's inclusion of measures to protect families on low incomes and people with certain medical conditions. However, we have challenged the water companies to do more--and there is more to be done.
I wish to introduce hon. Members to my constituent, Mr. Tebbit, who is desperately seeking a meter. Mr. Tebbit and I are both customers of North West Water, a company that has achieved an unenviable reputation for charging substantial sums for installing meters, ranging from £95 to £200. Mr. Tebbit wants to install a meter, but objects strongly--as do the Government--to paying for that service. Given that metering provides an incentive to reduce consumption, and hence supports conservation, Mr. Tebbit and I fail to understand why North West Water continues with that policy. The company is clearly more interested in retaining profits today rather than investing for tomorrow.
Mr. Steve McCabe (Birmingham, Hall Green):
In view of the time, I shall be brief. I echo the comments expressed by my hon. Friend the Member for Birmingham, Northfield (Mr. Burden). The debate takes place in a different climate from that which existed at the time of privatisation.
I acknowledge the tremendous efforts that Severn Trent has made in developing a dialogue with Birmingham Members of Parliament and in listening to criticisms of past actions and current difficulties. None the less, there is a pressing need for measures to deal with charges and metering, and to regulate other aspects of the industry. For that reason, I welcome the Bill.
I am particularly pleased that the Bill deals with trickle flow or trickle valve systems. Many of us were concerned that, after the court case that led to the banning of water key devices, those systems would simply become a widespread alternative measure. I have no particular objection to the voluntary use of volumetric meters, but their use must be voluntary. I am glad that the Bill addresses the issue of choice.
The consultation paper dealt with the concern about charging for community rooms, but as far as I can see, the matter is not covered in the Bill. As I understand it, people living in sheltered accommodation could find that their community room was metered. I wonder whether water companies will try to extend that to other community rooms or even waiting rooms--for example, in schools and hospitals. We need to examine the matter further.
The issue of residential homes for elderly persons does not seem to have been covered. It is great that we will ensure that there can be no disconnection of services for hospitals or schools, but the position of residential homes must be reviewed.
It must be made clear that council tenants will have the same rights as other customers. I am particularly concerned about what will happen when there is a transfer of tenancy. Tenants will not necessarily be protected by the Bill. That seems to run counter to the views expressed by many local authorities during the consultation period.
I wonder how much faith we can have in Ofwat and the role of the regulator. It is worth remembering that the reason that Birmingham and other authorities had to go to court was that the regulator accepted the water companies' arguments that water key devices were mechanisms for self-disconnection. However, the judge pointed out that that was wholly unrealistic and a breach of the statutory code. Can we be confident that in future the regulator, on whom many of the Bill's aims will still rest, will take a more considered view of the issues?
My hon. Friend the Member for Putney (Mr. Colman) mentioned competition. We could make much more progress in that, but the sticking point seems to be the matter of common carriage. That is provided for in the gas and electricity industries, and there is no reason why the same should not apply to the water industry. However, we must ensure that water companies do not impose punitive charges on customers who want to move to a different company.
Mr. Brian White (Milton Keynes, North-East):
I welcome large parts of the Bill. I did not particularly want to speak on it, and have no wish to cross my hon. Friends the Members for Sheffield, Hillsborough (Helen Jackson) and for Birmingham, Northfield (Mr. Burden). I am speaking in the debate because I have been approached by many of my constituents, who believe that they will lose out as a result of the Bill.
I welcome the fact that disconnections are to be outlawed and that compulsory limiting devices are to be removed. The problem is that my constituents tell me that they need those limiting devices to be able to budget properly. They have been participating in an experiment with Anglian Water Services in my constituency and in Wellingborough. This self-imposed sanction of a limiting device has enabled them to budget carefully, and has helped them not only to pay their water bills, but to budget for their other bills. They say that, if the device is taken away, they will go back to their old ways and will not pay their bills.
I ask the Minister to consider allowing some people to have limiting devices in their homes voluntarily. I am opposed to water companies forcing people to have them, but some of my constituents argue strongly for these devices to be made available. They need not lead to cut-offs. With a limiting device, it takes 10 minutes instead of the usual couple of minutes to boil a kettle, and it takes 20 minutes to fill a wash basin. The Government could accept limiting devices and introduce regulations
that stipulate what the water companies can and cannot do. The default would not be cut-offs, but a return to normal billing methods. People would run up more debt by not paying their bills if they did not have the self-imposed sanction of limiting devices.
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