The Environment Secretary has said he wants to attract global private investment into water companies to rebuild our “broken” infrastructure.

Labour’s Steve Reed gave a speech yesterday at the Thames Rowing Club, in London, to mark the Government’s new bill to crack down on the sewage crisis.

Water company bosses could face up to two years in jail and it would give regulators the power to block executives’ bonuses it they fail protect the environment.

"Our green and pleasant land is no longer so pleasant,” the Environment Secretary said.

“Pride is turning to despair. Water companies must be held accountable for their role in this – and they must take responsibility.”

Environment Secretary Steve Reed after giving a keynote speech to representatives from the water industry, investors, environmental groups and campaigners, on the Water (Special Measures) Bill and his vision for the long-term reform of the water sector, at Thames Rowing Club. Credit: Yui Mok/PA Wire | Yui Mok/PA Wire

Sewage spills have meant that no single river in Yorkshire is considered to be in good overall health, with activists finding 10 times the normal levels of E.coli at Knaresborough Lido.

Mr Reed announced a review into the water sector’s finances, which he said would “bring in much needed investment”.

"By strengthening regulation and enforcing it consistently, we will create the conditions needed in a well regulated private sector model to attract the global investment required to rebuild our broken water infrastructure,” he told industry stakeholders.

“A sector that has been associated with decline and cover ups will become one of growth and opportunity.

“It will unlock the biggest ever investment in our water sector, and the second biggest private sector investment into any part of the economy for the entirety of this Parliament.”

Mr Reed ruled out nationaliation, saying it “would cost billions of pounds and take year to unpick the current ownership model, leaving sewage pollution in the meantime to get worse and halt the much needed investment”.

“I am more interested in a model that works,” he added.

The government’s proposals have been criticised by activist and singer Feargal Sharkey, who said Labour should force regulators to “go out and apply the law” rather than creating new legislation.

He told Sky News: “We don’t need new regulations, we don’t need new laws, we’ve got 35 years’ worth of laws that have never been applied – you should force them to go out and apply the law as it stands today, that would have been a massive step forward.”

Sewage crisis: Steve Reed wants private investment in water companies to rebuild 'broken' infrastructure