Breaking: Paul Arnott, East Devon leader, on South West Water and two burning questions for government

“The time has come for direct government intervention at Secretary of State level. There are two burning questions. First, please can you reform the whole system and change the ownership of water companies urgently? Second, how can you expect any local authority to give planning permission for the homes you want when the sewage system is broken? It’s going to be a very challenging time for this new government.”

Paul Arnott (full article from local press)

Many, many years ago – 45 to be precise – I would have just received my A Level Results in Economics, History and English. It’s often said that what you learn at school proves useless in later life, but those three subjects left me with a lifelong curiosity and an active engagement in them all.

In Economics, we were taught not to blow the massive tax take from North Sea Oil on debt and to rebuild the country instead. Hmm. That didn’t happen. But more usefully it taught lessons about how infrastructure spending, well-managed, could provide many great outcomes quite apart from new houses, railways or utility provisions. Jobs and growth, for example.

History, and in particular study of the Civil War and Oliver Cromwell’s Protectorate afterwards, taught me that without a strong democracy with maximum participation a country inevitably relapses, in our case to the Restoration of the monarchy of Charles II. Having had the opportunity to be the first great Republic in the world a hundred years before America, we blew it, and let the landowners so keen on enclosing common land to increase rather than diminish their power. The arrogance of land ownership by a few wealthy descendants of that time blights what housing we can build and where to this day.

English took me to places where a sporty seventeen-year-old might not willingly go, for example to Geoffrey Chaucer, whose Canterbury Tales peppered with glorious 14th Century characters is like a time tunnel back to medieval England, much of which is around us from the Guildhall in Exeter to dozens of our churches.

This weekend, I thought of a phrase which is credited to Chaucer a lot – when chickens come home to roost. In the Parson’s Tale, he wrote that a curse coming out of the mouth of someone would often return to haunt them as (in the Old English) “a bryd that retorneth agayn to his owene nest.” And why was I thinking of that? The answer: the antics of South West Water.

In February this year, our council at East Devon decided to pass a motion of no confidence in them, for good reason. Their infrastructure was failing across the district, and there was a lot of evidence that this was the inevitable result of paying dividends to shareholders rather than investing over many years, the results of which were sewage running down high streets, burst manhole covers, failed pumping stations, ailing treatment plants – all now coming home to roost.

At the end of last week, I took the rare action of issuing a press release. It read “Many incidents both before and after that decision have fully justified the vote, but the major sewage spill at Maer Lane last night represents an historic new low. Despite multiple reassurances from South West Water that they have Exmouth under control, they simply do not. This incident not only impacted our residents but also the tens of thousands of tourists that visit Exmouth.” I could not imagine that over last weekend it would get even worse.

The time has come for direct government intervention at Secretary of State level. There are two burning questions. First, please can you reform the whole system and change the ownership of water companies urgently? Second, how can you expect any local authority to give planning permission for the homes you want when the sewage system is broken? It’s going to be a very challenging time for this new government.

“Action Man” (former Royal Marine – now Exmouth’s MP) to meet Susan Davy

At last “Action Man” does something but does “rebuilding trust” mean solving the sewage crisis or will it be nothing more than a PR exercise?

David Reed MP

To see Exmouth beach with so few people enjoying it on a beautiful August day is extremely depressing.

This current event with South West Water needs to end asap. I’ve been clear with senior representatives from SWW that it’s their duty to provide accurate and timely updates to let locals and tourists alike know how repairs are progressing.

I will also be meeting with the CEO of SWW this week to call on her to bring forward structural engineering funds, and to get on with the job of upgrading their sewage network.

Because patience has been lost, I will spend time over the coming weeks and months with representatives from SWW, local activist groups and businesses, along with local councillors to start rebuilding trust.

Now is the time for action, not words. I have campaigned extensively to have SWW clean up our water, and now that I am elected I will be doing all I can to make this happen.

#ExmouthandExeterEast

Planning applications validated by EDDC for week beginning 29 July

“Two star” South West Water likely to be overrated but “stars mean prizes”

The Environment Agency judges water companies on seven metrics. Scoring highly in one or two of these can “trump” a poor score in, say, sewage spills.

“Stars mean prizes” as companies use them to burnish their corporate credentials to justify their image and higher executive pay.

What a crazy system! – Owl

Sewage-spilling English water firms could be denied ‘top marks’ in rankings

Helena Horton www.theguardian.com 

Sewage-spilling water companies will no longer be able to justify high chief executive pay by getting “top marks” in the Environment Agency’s rankings, under plans to tighten rules, the Guardian understands.

Bosses presiding over companies found to “recklessly” discharge sewage have been able to justify their large pay packets because of being awarded the top rating, while companies that preside over sewage spills can call themselves “industry leaders”.

The regulator gives each company a star rating each year. One star is the lowest mark and means the company is urgently in need of improvement, while the highest mark is four stars, which comes with the accolade of being an “industry leader”.

Companies are judged on seven metrics including drought resilience and transparency over sewage spills: if they score highly on some of these, they can get top marks even if they have spilled large amounts of human waste into England’s rivers and seas.

The reforms being considered would mean that to achieve the new highest score, companies would not be able to have a low score for sewage discharges. This metric will also be tightened, the Guardian understands, so it is harder to achieve a good score.

Sources at the EA say it plans to add at least one extra star rating in an overhaul of the rules, so no company found to be spilling sewage will be able to call itself an “industry leader” at the top of the league table and therefore escape scrutiny and justify high CEO pay.

There is unhappiness within the agency, according to the sources, that those at the “top of the league table” boasted of their position and used it as an excuse for high pay. There is also frustration that it gets the companies good PR, allowing them to take attention off their spills because they are not a “basket case” with a one-star rating. According to the sources it was a “very poor league table for anyone in it” and even the best performers were behaving poorly, which was not reflected in the star ratings.

Severn Trent has used the company’s four-star rating to justify the pay packet and bonus of Liv Garfield, its chief executive. This year, Garfield was awarded a £3.2m pay deal, including a £584,000 bonus, despite the company being fined £2m for spilling 260m litres of sewage into the River Trent. Garfield’s year-on-year pay increased by 2.1%, bringing her total take-home pay during her time as Severn boss to more than £28m.

United Utilities also received a four-star rating in 2023, marking the company as an “industry leader”. This may surprise local people, who were told not to swim in the sea at eight beaches that summer due to sewage pollution. The company was also found to be leaking human waste into Windermere in the Lake District. Noxious blue-green algae was seen across its waters, which has been linked to pollution incidents.

Water industry sources said this discrepancy was because the current rules measured company performance by length of sewer networks, but that many pollution incidents were from sewage treatment works or sewage pumping stations. The rules also do not currently cover storm overflows, river and coastal quality, net zero, or nutrient neutrality.

Charles Watson, the founder of the campaign group River Action, said the system needed to change: “The current Environment Agency performance rating system is simply farcical. For water companies who are consistently causing major pollution incidents to somehow receive a top four-star environmental performance rating simply beggars belief.

“I wonder what the local community around Lake Windermere, who have witnessed their iconic lake repeatedly turn bright green due to poisonous algal blooms caused by United Utilities’ failing sewage infrastructure, has to say about UU’s top of the league rating? Also, for already ridiculously overpaid CEOs, such as at Severn Trent, to be using these flawed metrics to justify being even more overpaid is simply downright immoral.”

Giles Bristow, the chief executive of Surfers Against Sewage, said: “With prolific polluters achieving top marks for environmental performance it’s clear these ratings are as suspect as the effluent the water industry is dumping into our rivers and seas. We fully support the Environment Agency reviewing these ratings. This is yet another example of a fundamentally broken system.”

An EA spokesperson said a four-star rating did not mean a company was a “perfect performer” and confirmed it was looking at tightening standards by 2025. They added: “We frequently tighten standards to drive better performance and made very clear that we expect all companies to achieve and sustain better environmental performance.

“More broadly, we continue to strengthen our regulation of the industry, including tightening EPA [environmental performance assessment] metrics, quadrupling water company inspections by March next year and recruiting 500 additional staff to hold water companies to account.”

A United Utilities spokesperson said: “We are pleased to have again attained a top four-star rating. We are not complacent though, and we remain fully focused on delivering performance improvements to protect and enhance the environment for the benefit of all our stakeholders.”

Severn Trent has been contacted for comment.

Tory legacy of disinvestment in housing stock leaves tough choices for EDDC

After 44 years of “right to buy”, with substantially less than 100% retained for investment in new social housing, you would think maintaining the existing stock was vital. 

Only now is it becoming clear how little has been invested over the years by East Devon’s successive Tory administration. 

An, as yet, not fully quantified “black hole” has appeared.   

Cllr Christopher Burhop (Independent, Newton Poppleford and Harpford) who sits on the housing review board, said that: in mid-March, the review board had been told the overspend in the housing department would be nearly £5 million for the year, “but it ended up, just 17 days later, being a [much larger] overspend”.

“That information should be brought to this board for us to scrutinise, as I know it is available and so it should be part and parcel of these meetings.”

The new CEO, Tracy Hendren, took up her appointment in June.

Difficult decision are going to have to be during the autumn. – Owl

Tough choices to tackle East Devon housing finances quandary

Bradley Gerrard www.sidmouthherald.co.uk 

East Devon District Council is looking at how it can afford to run its housing service in the coming years.

The council requested nearly £12 million in extra borrowing last month to help fill a black hole in its housing department’s finances. Now, it faces some difficult choices.

“There will not be easy decisions for any member of cabinet,” Catrin Stark, East Devon District Council’s interim director of housing and health, told the authority’s housing review board.

“There will be difficult decisions about the viability of retaining the stock as a local authority, especially given that other local authorities are stating an average cost of £50,000 being required per property to ensure it meets current requirements and standards.”

Councillors want more timely financial information about its housing service, given that the housing review board was, at its August meeting, assessing data for the last financial year that ended in March.

There were also questions about how the service would save £250,000 a year.

Cllr Christopher Burhop (Independent, Newton Poppleford and Harpford) who sits on the housing review board, said the group “needed to see financial indicators… given where we have found ourselves”.

“We have to reassure ourselves and rebuild confidence that we, collectively, are in control of this,” he said.

“That information should be brought to this board for us to scrutinise, as I know it is available and so it should be part and parcel of these meetings.”

He said that in mid-March, the review board had been told the overspend in the housing department would be nearly £5 million for the year, “but it ended up, just 17 days later, being a [much larger] overspend”.

Cllr Colin Brown (Conservative, Dunkeswell and Otterhead) asked whether it would be more prudent for the council to sell its empty properties – known as voids – rather than invest in bringing them back into service.

Ms Stark noted that a “disposal process” would be among the options put to councillors in the autumn.

The council is expecting a report into the state of its housing stock soon, potentially by the end of the month.

Officers said roughly 87 per cent of its properties had now been surveyed, and work was ongoing to ensure the information could be easily uploaded onto the council’s system.

It is hoped this will illuminate how many properties are in disrepair, and the  work needed to bring them back into use.

The council has acknowledged it has a “significant number of long-term voids”, something that represents a problem through lost rent to the council, and potentially larger repair bills than homes that have been lived in more recently.

It has budgeted £2.5 million this year on bringing void properties back into service.

Officers also noted that the council had paused any purchases of properties available on the open market, those which tend to be ‘right-to-buy’ homes.

Before the request for extra borrowing, East Devon’s housing revenue account already had nearly £85 million of debt, which costs £2.8 million in annual interest payments.