Oral Answers to Questions — Environment, Food and Rural Affairs – in the House of Commons at 12:00 am on 12 July 2018.
Ian Lucas
Labour, Wrexham
12:00,
12 July 2018
What the Government’s policy is on the level of remuneration of senior executives of monopoly water providers.
Michael Gove
The Secretary of State for Environment, Food and Rural Affairs
On
Ian Lucas
Labour, Wrexham
The chief executive of Severn Trent earned £2.45 million last year. As a Wrexham customer I have to contribute to that salary, following the hostile takeover of our local water company. Does the Secretary of State, in his new progressive form, agree that Severn Trent should follow the example of the John Lewis Partnership and link the pay of its highest paid chief executives to those within the business who are lower paid?
Michael Gove
The Secretary of State for Environment, Food and Rural Affairs
It will not surprise the hon. Gentleman to know that I am a huge fan of the John Lewis Partnership and the leadership that its executives have shown. This Government and this DEFRA team have taken stronger action than previous Governments and previous teams have done in order to ensure that water companies smarten up their act, that they deal not just with executive pay, but with some of the byzantine financial structures that have not worked in consumer interests in the past, and that they invest more in improving the environment and keeping Bills low.
Philip Hollobone
Conservative, Kettering
Far too much water in this country is wasted by it leaking out of water pipes. Why on earth can we not link the pay of senior water company executives to their achievement of leakage reduction targets?
Michael Gove
The Secretary of State for Environment, Food and Rural Affairs
Ofwat, the regulator, has been stringent in the steps that it has taken in order to ensure that performance will be linked to pay in the future.
Holly Lynch
Shadow Minister (Environment, Food and Rural Affairs) (Flooding and Coastal Communities)
Mr Speaker, may I first join you and others in welcoming back the Under-Secretary of State for Environment, Food and Rural Affairs, Dr Coffey to her rightful place at the Dispatch Box?
I am afraid that prior to the “beast from the east” Ofwat made it perfectly clear that it had no interest in taking direct action on executive pay, tax structures or dividends. May I say how delighted Labour Members are that, after months of raising this very issue, Ofwat has finally U-turned on its position? Will the Secretary of State explain why it has taken Ofwat so long to take this action and tighten up the weak regulation that has let customers down so badly?
Michael Gove
The Secretary of State for Environment, Food and Rural Affairs
I am so glad that the hon. Lady welcomes the action that Ofwat is taking. Ofwat has superb leadership and I am four-square behind that leadership in ensuring that we get a better deal from water companies.
Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.
A proposal for new legislation that is debated by Parliament.
If you've ever seen inside the Commons, you'll notice a large table in the middle - upon this table is a box, known as the dispatch box. When members of the Cabinet or Shadow Cabinet address the house, they speak from the dispatch box. There is a dispatch box for the government and for the opposition. Ministers and Shadow Ministers speak to the house from these boxes.
The Speaker is an MP who has been elected to act as Chairman during debates in the House of Commons. He or she is responsible for ensuring that the rules laid down by the House for the carrying out of its business are observed. It is the Speaker who calls MPs to speak, and maintains order in the House. He or she acts as the House's representative in its relations with outside bodies and the other elements of Parliament such as the Lords and the Monarch. The Speaker is also responsible for protecting the interests of minorities in the House. He or she must ensure that the holders of an opinion, however unpopular, are allowed to put across their view without undue obstruction. It is also the Speaker who reprimands, on behalf of the House, an MP brought to the Bar of the House. In the case of disobedience the Speaker can 'name' an MP which results in their suspension from the House for a period. The Speaker must be impartial in all matters. He or she is elected by MPs in the House of Commons but then ceases to be involved in party politics. All sides in the House rely on the Speaker's disinterest. Even after retirement a former Speaker will not take part in political issues. Taking on the office means losing close contact with old colleagues and keeping apart from all groups and interests, even avoiding using the House of Commons dining rooms or bars. The Speaker continues as a Member of Parliament dealing with constituent's letters and problems. By tradition other candidates from the major parties do not contest the Speaker's seat at a General Election. The Speakership dates back to 1377 when Sir Thomas Hungerford was appointed to the role. The title Speaker comes from the fact that the Speaker was the official spokesman of the House of Commons to the Monarch. In the early years of the office, several Speakers suffered violent deaths when they presented unwelcome news to the King. Further information can be obtained from factsheet M2 on the UK Parliament website.
