The Government has accepted an amendment by the Liberal Democrats to the UK Infrastructure Bank Bill currently making its way its way through Parliament which would see water firms lose access to public funds unless they commit to stop sewage discharges.
Introducing the amendment during a House of Commons debate on Wednesday this week, Richard Foord, Liberal Democrat MP for Tiverton and Honiton, explained that the amendment would add improving water quality in the UK to the Bank’s objectives.
The amendment inserted in the Bill reads:
“(4A) The Bank may only provide any of the support listed in subsection (4) to water companies if they have produced a costed, time limited plan demonstrating they are committed to preventing discharge.”
Richard Foord told MPs the amendment would require water companies to have a costed, time limited plan, demonstrating they are committed to preventing discharges before they can receive investment from the UKIB, commenting:
“They seek to ensure that water companies set out costed, time-limited plans to deal with discharges before they can get funding through the bank. This is important because communities across the UK are currently being impacted by the actions of some negligent and wayward water companies. For years, we have seen these firms failing to invest in our vital infrastructure, but instead prioritising shareholder payouts and bumper bonuses for chief executive officers. It is shocking that this practice has been allowed to continue, and that the Government have resisted several attempts by the Liberal Democrats to clamp down on these sewage spills…..
“The amendment that we are considering is about loans from the UK Infrastructure Bank. Whatever figure is required, the bank should not be permitted to release funds for the purpose of improving our sewerage system until there are plans by water companies for the system’s complete restoration...
“If we do not add strict sewerage conditions to the Bill, we will give a blank cheque using taxpayers’ money to fund those polluting, profiteering firms.”
Speaking for the Government, Richard Fuller Conservative MP for North East Bedfordshire, said that Amendment 4 was seeking to provide that the support the bank can give can happen only after the water companies have produced a “costed, time limited plan”.
He went on to point out;
“I think the water companies would say, “We have already done that.” They have a plan, but not one that can be implemented just like that, in the flash of an eye.”
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