So, we will now move on to our first short debate today, and I call on Joel James to speak to the topic that he has chosen—Joel James.

And if Memebers are leaving, please do so quietly.

Thank you, Dirprwy Lywydd. I'm delighted to see that I've drawn such a crowd for my debate on water, so it's brilliant. I'd just like to confirm that I've agreed to give Mike Hedges and Sam Kurtz a minute of my time. I wanted to raise this debate today on water issues in Wales for a variety of reasons, the overarching one being that I believe that, as a Senedd, we don't pay enough attention to the challenges faced by the water industry in this country. Namely, in maintaining the affordability of bills and the intricate part that it plays in land and waterway management.

As we all know in this Chamber, household and business energy bills are not the only utility bills affected by the unprecedented rise in wholesale energy costs. The water industry not only faces higher energy costs itself, but it's very often the first bill that goes unpaid as consumers struggle to meet costs. The water industry therefore faces a disproportionate challenge, in that its costs are going up and its revenue is exposed to volatility and decline, which ultimately then pushes bills up for other customers. This is important, not only because of the impact to household and business finances, but because of the long-term implications that it has for the water sector. Due to climate change and population growth, among other factors, we cannot ignore the needs of the water sector in terms of appropriate legislation and the requirement to drive behavioural change among our population. In order to better use our natural resources, we need to think more carefully about sustainable water usage and the effects that sewage overflows are having on our river water quality and natural environment.

In Wales, out of the 1.37 million households that we have, a staggering 175,000 face water poverty, meaning that over 5 per cent of their household income, after housing costs, is spent on their water bills. Of those 175,000 households, only 35 per cent receive financial support to pay their water bills, leaving an estimated 114,000 households struggling to pay their water bills. Joint research from the Consumer Council for Water and Ofwat, published earlier this year, found that one third of customers struggle to pay bills fairly frequently, and this is a huge problem that is being compounded by the unprecedented rise in energy costs and the rise in interest rates and inflation. Affordability schemes at present are different for each water company in Wales, and this does present problems, as there is an almost postcode lottery as to whether or not you are eligible for support and by how much.

As such, CCW, previously known as the Consumer Council for Water, is therefore calling on both the Welsh and UK Governments to implement a single water affordability scheme to cover England and Wales, to ensure that nobody struggles to pay their water bill. And I would like to take this opportunity to encourage the Welsh Government to support a universal affordability scheme right across England and Wales, and to work with CCW, the Department for Environment, Food and Rural Affairs and the UK Government in helping to achieve this. I am aware that the UK Government has established a working group to explore the viability of a single water affordability scheme and are planning to consult on the proposal, with the proposed scheme being funded from a central pot and helping to ensure that costs do not fall disproportionately on those geographical areas with the biggest water poverty problems, such as Wales. In fact, modelling suggests that a single industry scheme would be likely to reduce current average cross-subsidies on water bills in Wales, whilst delivering more comprehensive support, and I would therefore advocate in the strongest possible terms for Welsh Government Ministers to fully engage with this consultation and proposal.

In addition to this affordability scheme, I'd also like to urge this Government to encourage water companies in Wales to launch co-ordinated campaigns at a national level to inform people of the support that is already available to them, and to make water-related assistance more visible through other advisory agencies, such as the citizens advice bureaux. I believe that this would be a valuable step in helping people across Wales, especially since evidence has shown that people who are struggling with debt and are financially vulnerable take on average over two years to seek help and, as a result, their financial troubles very often manifest into mental health issues. In many cases, these struggles could have been avoided with earlier intervention and an awareness of the affordability and debt write-off schemes that are available to them. I would like to remind this Government and Members here that it's in everyone's interest that those struggling to pay water bills get the help and support they need as quickly as possible, not only because it helps them to alleviate the worry and stress that comes with struggling to afford bills and manage household finances, but because the debt that they incur is often reclaimed by water companies through higher bills to other customers, who may themselves be struggling as well.

Turning to land and waterway management and issues affecting our natural environment, like climate change, we know that water companies have a duty of care to maintain and look after parts of our natural environment, and the money that's needed to do this comes from bill revenue. If a situation is created whereby water companies are starved of revenue because of too high a debt write-off, then it reduces the money available for companies to manage assets, which can unfortunately lead to many of the environmental issues we are hearing in this Chamber. In Wales, and across the United Kingdom, substantial investment in water and sewerage networks is needed to ensure that they can withstand the pressures of a changing climate and growing population, for the development of new sources of water and to continue to reduce leakage and wastage from the network. It is imperative that people on low incomes have the support they need to keep bills affordable. 

As my colleague Peter Fox pointed out in his question to the First Minister last week, Wales is now officially in drought following the driest five-month period in 40 years, which saw Wales receive just 61 per cent of its expected annual rainfall between March and July. As a population, we therefore need to think very carefully about how we use water. The National Infrastructure Commission England, NIC, recommends that, in order to address the growing gap between supply and demand, one third of water demand can be reduced by helping and encouraging people to change their behaviour and use less water. The NIC also suggests that reducing water could be the most cost-effective action taken to adapt to climate change, and the introduction of universal smart metering would be cost neutral. I would therefore challenge the Welsh Government to ensure that NRW's drought-planning measures include public communication and education on how best to use water, especially since we are likely to experience drought weather more often, and ask them to highlight any initiatives they are planning for the future. Moreover, I would also like to support CCW's call for a thorough assessment of water resources in Wales and the resilience of supply infrastructure, and for this to be prioritised in future National Infrastructure Commission for Wales work programmes.

I believe that, in Wales, there is an undercurrent of public opinion that considers water as excessively abundant and, therefore, we do not need to be mindful of any supply issues. However, this is not necessarily the case. Although Wales is a nation where we have plenty of rainfall, we do not have the capacity to store large amounts of water, because, historically, we have never needed to. Unless we are going to spend vast sums of money increasing our water retention capability, we need to prioritise changing public behaviour and attitudes.

The Welsh Government, in my mind, needs to pay more attention to exploring ways in which people can be encouraged to reduce demand on supplies by helping consumers to change their behaviour. To complement this, I believe more can be done to encourage innovation and provide further water-efficient products, which will make it easier for people to save water.

I would further like to ask the Welsh Government how they have pressed water companies to accelerate response times to visible leaks. This is particularly important at a time when people are being asked to conserve water because rainfall rates have been low. Showing a determination to address leakage will help encourage people to make everyday changes to their own water use.

As my final point, I want to briefly discuss river water quality and storm overflows. This is not just a Welsh problem but one that affects the United Kingdom as a whole, and I believe that it is imperative that we have a collaborative working approach with the UK Government and all water companies to improve water quality and, in particular, stop overflow of sewage into rivers.

Despite the numerous explanations as to why storm overflows are a necessary part of sewerage infrastructure and a comparatively low number of events, I cannot believe that, in the twenty-first century, we are still polluting our rivers and coastal waters with sewage. Not only is this harmful to the environment and potentially dangerous to bathers, but the perception that it gives to tourists and the Welsh population is that we do not care about our environment, which, as we all know, cannot be further from the truth.

With increasing public interest in the impact of storm overflows on environmental water quality, I believe that the Minister should support the National Infrastructure Commission in extending its work in reviewing a raft of recommendations for the improvement of waste water infrastructure resilience, with the outcome of alleviating flood risk for our communities, ensuring resilient sewerage services and protecting the natural environment, whilst also preserving local economies.

I would like to conclude my contribution by saying that we have some serious challenges to the water industry in Wales, both in terms of helping people to afford their bills and in upgrading the water and sewerage network to provide greater resilience against climate changes and to reduce the impact of sewage on our environment. Whilst I recognise that a lot of very good work goes on, we nonetheless need to be mindful that there needs to be greater purpose in that work and an urgency in its delivery. Thank you, Dirprwy Lywydd.  

Can I thank Joel James for giving me a minute in this debate? In the nineteenth century, there was a belief that you could put anything into the sea and rivers and it would dissipate, no problem at all—it would just dilute down to nothing. In the second half of the twentieth century, we came to realise that this was not true and started to clean up our rivers. Unfortunately, we appear to be now reverting back to the nineteenth century.

I want to make three quick points. We have untreated sewage discharging into rivers such as the Tawe by the Trebanos treatment works; phosphorous pollution is leading to eutrophication in the River Wye; microplastic has ended up in the water everywhere. We then drink this water after water treatment has taken place. If people saw what the water looked like before it got treated, they probably wouldn't drink it.

There is a need to clean up our rivers and fine polluters. The only way you are going to stop people polluting is when it starts hitting them in their pockets; otherwise, polluters do not pay anything for it and it does them no harm.

On 19 August, a hosepipe ban was enforced in a large area of my constituency of Carmarthen West and South Pembrokeshire, an area serviced by the Llys-y-Frân reservoir in my neighbour Paul Davies's constituency of Preseli Pembrokeshire. Paul kindly granted me safe passage into Preseli Pembrokeshire so I could visit the Llys-y-Frân reservoir to see just how low the water level had become, and I was shocked at just how low that water level was. So, let's take the opportunity to learn from countries with a more arid climate than ours so that we can install the same sort of technology and systems that they've got in water conservation so that we can manage our waters much better, knowing that the climate has changed in such a way. 

I call on the Minister for Climate Change to reply to the debate—Julie James.

Diolch, Dirprwy Lywydd. Thank you very much for the opportunity to talk about the very important and topical issues of both water poverty and water quality. Our water sector is indeed facing an immediate and unprecedented challenge. Climate change means that over the next 20 years Wales faces wetter winters, hotter, drier summers, rising sea levels and more frequent and intense extreme weather events. The need to achieve decarbonisation, climate resilience and reverse the decline in biodiversity will require innovative solutions, behaviour change and long-term investment in our water infrastructure. At the same time, the cost-of-living challenges are the most acute in a generation, placing pressure on household incomes and the ability of many to pay for essentials like food, water and energy. These pressures, coupled with the current economic and geopolitical uncertainty, mean that it’s essential for us to continue to drive forward with the Welsh Government’s commitment to tackle poverty by prioritising the needs of the poorest and protecting those most at risk of poverty and exclusion. As Joel has rightly said, ensuring access to fair and affordable water and sewerage services for people and businesses is an important factor in reducing poverty, and we are taking steps to evaluate how we can achieve this in the best and most efficient way.

We’re committed to working with water companies to make water bills affordable for all, and helping households that genuinely struggle to pay for water services. Again, as Joel said, in 2021 the Consumer Council for Water published a review of the affordability and financial support available for water consumers in Wales and England, and I’m very grateful to them for undertaking the review. A key recommendation from the review was, as you acknowledge, to establish a single water affordability scheme for Wales and England.

So, until that decision is made on implementing a single scheme, water companies have adopted proactive measures to assist all households struggling with their water bills, including highly visible messaging on how to access assistance. Currently water companies in Wales are supporting over 145,000 households through various schemes. The Minister for finance and Minister for Social Justice have spoken to the UK Government about acting to relieve the financial burden for Welsh households in the round, and the Minister for Social Justice and I met with CCW only yesterday to discuss their call for a universal scheme, how it might be paid for and how we might implement it. We’ve also spoken to Dŵr Cymru about signposting those struggling to pay to future benefits, because Joel’s quite right—it is a signpost; it is often the first bill that doesn’t get paid, and it is a signpost of people struggling.

I will say, though, that, as part of the conversation with CCW, there is a distinct political element to the way that that scheme should be funded, because at the moment Ofwat—and indeed Ofgem, when they’re talking about it—are talking about a universal affordability scheme that is paid for by other customers. I take the view, I’m afraid, that the Government should step up to the plate and fund those schemes direct, and not spread the cost out on the other consumers of those services. So, there’s a distinct difference in the way that we think that that should be implemented. But, nevertheless, I think it’s important to have a universal scheme that people understand and is simple and straightforward, so I certainly support the call for that. In the meantime, the Welsh Government’s £380 million support package will be helping households manage the cost-of-living crisis, and our income maximisation plan has released income for other bills that are not covered by those measures. Prioritising the needs of the poorest and those most likely to experience poverty or exclusion is absolutely paramount.

Turning, then, to water quality, water is one of our greatest national assets and an integral part of Wales’s culture, heritage and national identity. Sustainable water and waste water services for current and future generations are based on a healthy natural environment and a resilient asset base. We envisage a resilient water and waste water sector in Wales that is customer and environment focused, integrated, sustainable and resilient, while delivering value to customers and the environment. Our programme for government sets out our vision and ambition to address the climate and nature emergencies, and our Wales water supply and waste water treatment infrastructure is under real pressure from that climate change, which we have discussed very often in this Chamber. Changes in population density and distribution and new development contribute to this. For example, removing all existing storm overflows would be a long-term, multibillion pound carbon-intensive project and would not be the most effective way of improving water quality or be resilient to the increasing pressure from climate change. We recognise, though, the need for immediate action, and we’ve established the better river quality taskforce to evaluate the current approach to the management and regulation of overflows in Wales and to set out detailed plans to drive rapid change and improvement.

But tackling overflows is only one of the many elements that need to be addressed if we are to improve water quality in Wales. We’ve made provision for a multi-year, multimillion pound programme of works to improve water quality, which totals £40 million over the next three years, and we’re driving forward collaborative working between stakeholders and regulators, for example, through the taskforce and the nutrient management boards, which are established on all special area of conservation rivers in Wales. We’ve also made SuDS, sustainable drainage systems, mandatory on almost all new building developments. This will help relieve pressure on the network by redirecting and slowing down the speed at which surface water enters the sewer system, and it helps ensure storm overflows are only used as a last resort.

I’ve been clear that we need to take a very integrated catchment management approach, focusing on multisector co-operation and nature-based solutions to drive water quality improvements. But, as everybody has acknowledged, the challenges we face cannot be underestimated. This is a long-term project that we need to take action immediately on, but with a medium- and long-term goal. We must all work together and take a team Wales approach so that we can tackle the multiple risks impacting our lakes, rivers and streams, and deliver real improvements to the quality of the waterways. We need transparency, openness and adaptability in our response to address the water quality issues we face in Wales, and the taskforce established as a result of the summit in the Royal Welsh Show is taking that forward in the most efficient and effective way possible. We are also meeting with a range of stakeholders across Wales and my biodiversity deep dive, which will be making its recommendations public next Monday, will be addressing this issue as well. Diolch. 

Thank you, Minister.