Mr Redwood’s contribution to the debate on the Water Industry, 5 November

Mr John Redwood (Wokingham) (Con): It is a pleasure to see you taking up your new duties, Madam Deputy Speaker (Mrs Eleanor Laing).

Monopoly is the evil that we are here to debate. It is monopoly that stifles innovation. It is monopoly that drives prices higher. It is monopoly that takes away choice and consumer power, and it is monopoly that leads to rationing. We saw all those features in the water industry when it was nationalised. I am amazed that the Labour party still has people who think it would be a good idea to go back to the nationalised water monopoly, which regularly ran out of water in the summer. Woe betide the man or woman who had bedding plants in a hot summer in Britain—because before global warming we used to get hot summers, and then the water would run out. It was a tragedy, because it was a direct result of the nationalised industry.

The privatised industry, I am pleased to say, has done one thing better than the nationalised industry—it has got access to more capital. It has mended a lot of pipes, put in new pipes, and put in some investment into dealing with dirty water as well, so we have fewer interruptions to supply under the privatised industry than before. However, we did not go far enough with the privatisation. We transferred the ownership but, as some of my hon. Friends have wisely pointed out, we kept in place much of the regional structure.

We bought the idiotic idea that the industry sold to Ministers and advisers that because rivers run to the sea in separate geographical areas called river basins, it was terribly important to have local monopolies around a river basin. Woe betide anyone who wanted to move water from one river basin area to another, and woe betide anyone who wanted to use borehole water. Apparently, it all had to be organised around river valleys. Sometimes it is difficult to create boundaries between them, because tributaries and streams have a habit of not being as neat as administrative lines on maps, but it was decided that we had to have this “natural monopoly”.

There is no natural monopoly in the supply of water. As was pointed out by the right hon. Member for Holborn and St Pancras (Frank Dobson) who has recently departed the Chamber, rain falls across the whole of the United Kingdom, not always all at the same time, not always in the same quantities, but this island is not cursed with a shortage of rain for most of the time, and we collect very little of it. It is also not true to say that water is some precious resource that has to be husbanded because it will run out. Water is the ultimate renewable resource. It falls as rain; it mainly runs out to the sea; it is picked up by the winds and goes back into the clouds; and it comes back again as rain. Nature or God, depending on one’s beliefs, does most of the job for us, producing an endless supply of water to this country. All that we have to do is provide business people who can raise the capital to make sure that we capture enough of that water in a form that we can then put into pipes, and that we clean it up to an appropriate standard for the use.

We did not introduce competition into the industry when we privatised it, so many of the evils of monopoly are still with us. We have less rationing, but we can still have rationing. We have quite dear prices, although perhaps they do not go up quite as quickly as they did when they were part of a Treasury exercise. We certainly get more capital into the industry, but at the expense of quite substantial gearing, as some hon. Gentlemen have mentioned. However, many of the bad features of the nationalised industry are perpetuated and it is very difficult being a challenger to the industry, so I pay tribute to the former Minister, my hon. Friend the Member for Newbury (Richard Benyon), who produced a White Paper which is becoming a piece of legislation, which will try to open up the market a bit more.

I pay tribute to the modest steps taken in Scotland, where it was discovered that far from the taps running dry or the water prices going through the roof if the authorities dared to have more than one provider of business water, the opposite has happened: the prices went down—a little bit, because there was not a great deal of competition coming in—and above all the quality of service rose. I have talked to some of the Scottish businesses that have to deal with the water industry. They say that the great breakthrough in Scotland as a result of competition was the fact that they could get a much better service. They could get the water supply when they wanted it and where they wanted it, and pipes and so on mended and repaired.

Businesses in Scotland can also negotiate with their water industry about what sort of water they want. At present, under a nationalised monopoly or a privatised monopoly, only one type of water is available. It is cleaned to a certain standard and it then has additives put in it. An industry wanting to make drinks may need to take the additives out before it can make its drinks, so there is a double cost and a nuisance, because it cannot get the type of water it wants. A firm that wants to carry out a fairly rudimentary washing business does not need water of a quality that we can drink, but it has to pay the extra price to buy the very high-quality water literally to tip it down the drain.

Therefore, we are not seeing experimentation, innovation or customer service because of a lack of competition. The industry is determined to supply only one grade of water and only the amount it can be bothered to supply, and then it blames the customer, should we dare to say that we want a bit more. We are now bombarded with messages from the industry suggesting that water is a natural monopoly and not the ultimate renewable resource. We are told that good people take only one bath a week in order to save water, that they do not use so much water for cleaning and that they ensure that they husband their use of water in their sinks and whatever machines they have at home that require it.

I have good news for my constituents: I do not believe that. I think that water is the ultimate renewable resource, that it ought to be made available more abundantly and more cheaply and that that could be done if we trusted competition. Surely one of the advantages of rising living standards, which is what we are all here to try to help create, is that people can then use more water because they have more things to clean, or because they wish to enjoy themselves in their bathroom. We need to ensure that they have access to the right quantities of cheaper water, and competition is the way to do that.

Julian Smith (Skipton and Ripon) (Con): My right hon. Friend, as always, is speaking in an impassioned way about the merits of competition. Will he explain to the House how quickly he thinks domestic competition could be introduced and whether he thinks the Government should be moving more quickly on that?

Mr Redwood: I would do it straight away. I cannot see what the problem is. If water is a natural monopoly, as some people argue, no harm will be done by breaking the formal monopoly; it is just that nothing will happen. But of course it is not a natural monopoly, which is why the industry is fighting so hard to keep a legal monopoly. It knows that it will have to wake up and change quite a lot if it has to face competition.

We would have to give the market some help to get it going, because the monopolists are in a very strong position. We would need to tell them to use their pipe network as a common carrier, because other people would need access to it. However, the challengers might soon find, as was the case with those sorts of arrangements in the telecoms industry, that the existing assets are not so great and that they want to put in their own pipes. The challengers in telecoms did that with wires, and then of course the radio links became a cheaper and better way of doing it. Who knows what technical breakthroughs there might be or how much challengers would want to use the common carrier network? However, to get competition going we would need to start with a common carrier network, so a system would need to be put in place to allow people access to the pipes.

We would also need to ensure that the Environment Agency was prepared to license borehole water and sensible levels of river extraction by other licensees. I do not want our rivers to be run dry by people taking too much out in a dry season, so we would need proper regulation for that. As has been pointed out, however, we let huge quantities of water go to the sea during wet periods, so we do not seem to be very good at planning our water use and holding it in suitable locations so that we have plenty in drier weather.

Another thing that I think the water industry needs to pay attention to, along with other utilities in this country, is the huge disruption they cause to our road network. Our road network is a nationalised monopoly and therefore has rationing and, looking at the tax bill, is extremely expensive. It has all the characteristics of monopoly provision that I dislike. One of the things that make our totally inadequate road network even worse is the fact that it is regularly disrupted by businesses digging up great chunks of tarmac and subsoil with pneumatic drills in order to lay new water pipes, other utility pipes and wires. Why on earth have we not learnt that it is not a great idea to put these things right down the middle of the road and then hard-pack soil, subsoil, tarmac and stones on top, which means huge delay, disruption and cost every time we want to change it? In modern buildings all the services run in ducts under the floors so that we do not have to rip out the plaster, half demolishing the place, every time we want to change the wiring.

Surely we could have a system to provide easy access along the side of our roads to pipes, wires and anything else we want to put down without having to dig up the road every time. We could at least start doing that when we build new estates, shopping centres or whatever. We should do it intelligently by putting in ducts to save all that money and time. I find utility companies very sympathetic to that idea when I invite them in to talk about it. They say, “It’s a very good idea, but it won’t work in this case, Mr Redwood.” We have to make it work, because many other countries are well ahead of us on all this. They think we are completely potty to go in for this idea that the water company digs up the road and puts in a new pipe, then six months later the gas people come along and do exactly the same thing in a slightly different position, and then the following year the electricity people turn up and do it again. It is mad, costly and inefficient, and it is doing huge damage to an inadequate road network.

For all those reasons, give us competition, give us choice, give us innovation, and give us some common sense, because we are getting a rotten deal at the moment.

Mr Redwood’s contribution to Foreign Office Questions, 29 Oct

Mr John Redwood (Wokingham) (Con): What conclusions does the Minister draw from the fact that exports from some countries outside the EU to the EU are increasing more rapidly than our own?

The Minister of State, Foreign and Commonwealth Office (Mr Hugo Swire): My right hon. Friend will be aware of my earlier comment that trade with the EU has been adversely affected by the downturn in the EU economy. I think what it shows is the flexibility of the British economy, not least because we did not join the euro and because this Government have a more determined approach to driving exports globally, both with our existing partners and in emerging markets.

Mr Redwood’s contribution to the debate on the Local Audit and Accountability Bill [Lords], 28 October

Mr John Redwood (Wokingham) (Con): Does the Secretary of State agree that what we want is an audit system that does not equate amounts of money with outcomes without proper testing of that? We seem to have an audit system that says, “This council spends twice as much as that council, so it must be twice as good.” We want to know what we get for the extra money.

The Secretary of State for Communities and Local Government (Mr Eric Pickles): My right hon. Friend makes a reasonable point. The audit regime is just part of the process of transparency; the publication of amounts above ÂŁ500 and the right to be able to see what the council is doing increase the opportunity for the taxpayer, the voter and the local press to investigate.

Mr Redwood’s contribution to the Statement on the EU Council, 28 Oct

Mr John Redwood (Wokingham) (Con): During the summit, did the Prime Minister manage to raise the issue of energy prices? EU regulations mean that we have much dearer energy than America or Asia, and I seem to remember the previous Government willingly signing up to those proposals. They are clearly a competitive impediment to us.

The Prime Minister (Mr David Cameron): There was no specific discussion about energy prices, but one of the proposals of the business taskforce report is to ensure that we do not add to the cost of, for instance, shale gas extraction. That was very much welcomed by other member states. We need to consider how regulations add to the costs for energy consumers.

Mr Redwood’s interventions during the Backbench Business Debate on the Future of the BBC, 21 October

Mr John Redwood (Wokingham) (Con): Does my hon. Friend share my worry that the BBC puts out an enormous internet and web offering for free, thus undercutting other news and cultural providers who might otherwise be able to do a better job?

Alun Cairns (Vale of Glamorgan) (Con): I certainly do agree, and I will discuss the scale of the BBC and how it squeezes out competition and innovation from other independent quarters.
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Mr Redwood: I am interested in the right hon. Lady’s point about the very high payoffs going to managers. What does she think should be done about the very high salaries and payoffs going to managers and talent when it is paid for by a poll tax that, among other things, is levied on a large number of people who have very little income at all?

Dame Tessa Jowell (Dulwich and West Norwood) (Lab): I thank the right hon. Gentleman for his intervention. I think that transparency is absolutely of the essence in that regard. The BBC, as an independent entity, must be able to account to licence fee payers for the decisions taken about remuneration. I certainly think that increased transparency would be one of the ways of rebuilding trust.

Mr Redwood’s contribution to the Statement on the UK Nuclear Energy Programme, 21 October

Mr John Redwood (Wokingham) (Con): I welcome the decision to have more power capacity, which we greatly need. However, given the generous financial terms to the investors, did the Secretary of State consider the possibility of reserving some part of the financial investment and provision of capital for British interests? I am sure that many of them would like those sorts of returns.

The Secretary of State for Energy and Climate Change (Mr Edward Davey): First, 57% of the value of this project will go to UK firms, and I hope that the right hon. Gentleman welcomes that. I do not believe that these terms are generous at all. We have had hard negotiations to get them down, and EDF realises that. Some of the benefits of the deal we have negotiated need to be held up in the headlights. There is the construction gain share, so that if the construction costs are lower, the consumer gains. If there is a refinancing by the investors in 10 years’ time from which they make a lot of money, the consumer will gain from that refinancing. That never happened with private finance initiative deals when Labour was in power; rather, the taxpayer lost out. We have the refinancing gain share for the consumer, and I doubt that would have happened if that lot had been in power.

Mr Redwood’s intervention during the debate on High Streets, 16 October

Mr John Redwood (Wokingham) (Con): Given the impact of the internet on shopping habits, does the Minister agree that councils have to work with their local town centres to maximise their use, which would include office use and leisure use, as well as shopping use?

The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis): My right hon. Friend makes a good point. I agree and will come to that in a few moments.

Mr Redwood’s interventions during the Opposition Day debate on Zero-hours Contracts, 16 October

Mr John Redwood (Wokingham) (Con): Does the hon. Gentleman not agree that the biggest collapse in living standards occurred from 2008 to 2010 under the Labour Government, when they bankrupted the country and drove people out of work? We are trying to recover from that position.

Mr Chuka Umunna (Streatham) (Lab): The right hon. Gentleman talks about us bankrupting the country. He knows, because I have heard him talk about this many times before, that the problems we had in 2008-09 found their gestation in the banking sector, which is ultimately where responsibility lies.
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Mr John Redwood: I want my constituents to have well paid, decent jobs, and I have a lot of sympathy with those who do not wish to see exploitative contracts. Will the shadow Secretary of State say a little more about how he would define an exploitative contract, and whether there is more we could do by way of leadership? He is an influential and talented man. Surely there is more that he could do with Labour councils and trade unions, just as those on the Government Benches can do more with the Government.

Mr Umunna: One of my colleagues has just said to me that being praised by the right hon. Gentleman will spell the end of my career. People will point to examples of Labour-controlled local authorities, but we do not care who is using these contracts. We simply do not want them to be used exploitatively, and I will explain how we can stop that happening.
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Mr Redwood: When the Secretary of State holds his consultation shortly, will he consult on the extent to which there is a problem and try to get a definition of it, or will he consult on possible remedies to the abuses he has identified?

The Secretary of State for Business, Innovation & Skills (Mr Vince Cable): Such abuses are highly relevant, but people may come forward and explain, as I have done, that for certain contexts, groups of workers and sectors, such a contractual arrangement is necessary and positive and it would be unhelpful to take action. We have an open mind. We are not trying to close down the debate.

Mr Redwood’s speech during the debate on the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill, 8 October

Mr John Redwood (Wokingham) (Con): A couple of Opposition Members have raised the issue of paid advocacy and I want to reassure anyone following our debate that no one in this Chamber is saying that MPs should be allowed to receive top-up money from outside this House and then advocate the cause of those paying them. That is clearly wrong. It is against the rules and nothing in the Bill would facilitate it. I think we all agree on that, so that argument is a red herring.

The issue we are debating is the crucial one of the legitimate role of an MP and whether it can continue untrammelled by a Bill that could inadvertently capture legitimate things that an MP does. If the Leader of the House is going to guide us to reject the new clause, I want reassurance that the lobbying element of an MP’s job will be completely untouched by the way in which he wants the Bill to end up. In moving the new clause, my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) made it clear that he is trying to resolve the issue of the legitimate work of an MP.

A very important part of an MP’s job is to be the chief lobbyist for their constituency but, as colleagues have said, we may also wish to be a lobbyist for another interest group that is not based in our constituency. It may be a very important part of a shadow Minister’s job to represent an industry, charity or group of underprivileged people who are not in their constituency, in order to shape national policy. Individual Members may wish to pursue similar themes, even if they are not prominent in their constituencies. It enriches our debates and makes for a fairer society if anyone from outside this House can find MPs who support their cause and who can be their advocates. We are lobbyists for all sorts of groups and interests throughout the country, whether they are in our constituencies or not. It is very important that a court or external body does not assume that, because we are paid a salary and because we lobby Ministers on behalf of the interests of people and companies throughout the country, we are subject to the rules under discussion.

I agree with my hon. Friend the Member for Stone (Mr Cash) that we are not seeking special privilege. We are saying that this Bill is designed to stop abuse of the lobbying system and I want a reassurance from the Leader of the House that it has not been worded in a way that inadvertently could trap MPs as if we were an abuse of the lobbying system, when the healthy expression of lobbying, through and of MPs, is fundamental to our democracy. I think that view is shared throughout the Chamber. The great difference between a free society and a tyranny or an authoritarian regime is that any group, interest, person or company in our country can try to find an MP who thinks they have a fair cause, and if they persuade an MP of that—without any payment of money or anything inappropriate—their cause can run in this House and have the chance of influencing Ministers.

I hope that the Leader of the House can reassure me that the Bill will leave absolutely no doubt that we can be lobbied and that we can lobby, and that we are the free lobbyist for anyone with a good cause.

Mr Redwood’s intervention during the Statement on the Middle East Peace Process/Syria and Iran, 8 October

Mr John Redwood (Wokingham) (Con): Would the Foreign Secretary like to praise Parliament for recommending diplomacy rather than war as the best means of tackling the difficult matter of chemical weapons in Syria? That policy seems to be working rather well. Does he agree that Parliament’s influence extended to the United States of America, where the President called our debate in aid as the reason for his change of approach towards consulting Congress and going for peace?

The Secretary of State for Foreign & Commonwealth Affairs (Mr William Hague): It has always been my habit to praise Parliament, even when I disagree with it, and I will continue to do so. I praise our Parliament and democracy all over the world, and I even hold up such instances as examples of our vibrant democracy. I hope, however, that my right hon. Friend will bear in mind that such progress on chemical weapons—we hope it is progress, provided it is maintained—could not have been made without the credible possibility and threat of military action. We particularly have to thank the United States for that in this connection.