Blocking the bonuses of water executives will do little to clean up the UK’s waterways, ministers have been warned, as pressure mounts to strengthen regulators.
The Labour Government has set out its first steps to fixing the country’s sewage crisis and handing more power to consumers, including forcing water companies to reimburse customers if toxic spills are not tackled.
Ministers are expected to follow up with tough measures that will include banning the payment of bonuses to water bosses as well as placing the worst performing firms into “special measures”.
It has been suggested that legislation could come as soon as next week in the King’s Speech, but Whitehall sources would not be drawn on the plans.
However, environmental campaigners have warned that proposals to ban bonuses, and impose criminal charges on water execs must come second to beefing up resources and powers for regulators, the Environment Agency (EA) and Ofwat.
Paul de Zylva, senior sustainability analyst at Friends of the Earth, told i increased funding for the EA was fundamental.
“Before the election both parties were talking tough about fines and bonuses and prison, [but] the lack of proper regulation and the cuts to the Environment Agency mean that there isn’t proper monitoring,” he said.
“The quality of regulation fundamentally has to be the starting point. Is Government going to restore the Environment Agency’s cuts and loss of expertise?
“The point is most of the dire state of our rivers and seas is because of the persistent drip of pollution.
“It isn’t the eye-catching spills. It’s down to all the road run-off, all the farm pesticides, manure and effluent, as well as the sewage problem – that stuff is not being monitored properly. If you’re not monitoring that how can you levy any fines? That’s why the tough talk doesn’t wash.”
The comments were echoed by James Wallace, CEO of River Action, who said: “The obvious absentee in this discussion, effective regulation, needs to be prioritised too. So what is going to happen with Ofwat and the Environment Agency? What degree of reformation are the new Government willing to consider and how soon?”
“At the moment communities, citizen scientists, activists, NGOs are having to fill the gap of effective governance or regulation in that we are the ones out there monitoring the levels of sewage pollution.”
Environment Secretary Steve Reed held a meeting with water bosses from all 16 suppliers on the same day that Ofwat announced a 21 per cent increase to customer bills.
Government sources told i that the meeting was an attempt to “reset” relations with the sector after the last 14 years of the Conservative administration.
But there are now questions as to when the tougher measures aimed at forcing water companies to take action will come in.
The Liberal Democrats believe some of the changes can be implemented immediately and are calling on the Government to move more quickly.
Tim Farron, the party’s environment spokesman, said: “Communities spoke loudly at the election, demanding an end to the sewage scandal and water firms stuffing their pockets with bonuses and dividends. The Government and regulator must listen to the country.”
Mr Reed said on Thursday: “After meetings with water bosses this afternoon, they have now signed up to my initial package of reforms as we work towards cleaning up our water, prioritising the interests of water customers and the environment, and fixing our broken sewage system.”