MPs raise concerns over South West Water dividends

South West Water uses Colliford, Cornwall's largest lake and reservoir

MPs have raised concerns about South West Water's decision to increase dividends to shareholders by 10.9%.

In April, the utility firm was fined a record amount of more than £2.1m after admitting causing pollution in Devon and Cornwall.

It is also under investigation by UK water watchdog Ofwat over the accuracy of data it provides on leakages.

South West Water has declined to comment.

On Tuesday, MPs at Westminster questioned the decision to boost dividends.

'Disgrace'

Anthony Mangnall, Conservative MP for Totnes, said: "They are failing to clean up our waterways, expand our storm overflows... they are not following the laws that we have passed in this place, mainly around dividend payments."

Mr Mangnall's comments come after the government backed plans in March for Ofwat to take action against water companies that pay out dividends to their shareholders despite failing to meet required standards.

He added: "We have to ask that they do not take Parliament into contempt when it comes to enacting the very stringent laws that we have passed to make sure they clean up our waterways."

Ian Liddell-Grainger, Conservative MP for Bridgwater and West Somerset, said the company's decision was "beyond the pale".

He added: "My right honourable friend gave an extremely good example now as to why they are holding this place, us, the people of the United Kingdom, in contempt."

He said the company was a "disgrace" and "failing at every level".