The amendment to the Victims and Prisoners Bill, tabled by Liberal Democrat MP Tim Farron, would have allowed anyone who gets sick as a result of illegal sewage dumping to claim compensation from water companies.
However, the proposal was voted down after MPs, including Gillian Keegan, voted against it.
Ms Keegan said the Conservatives have “been the first to face this problem square on”.
But Toby Wilsher from the sea-swimming group The Jolly Swimmers expressed his disappointment at the sewage situation in Sussex.
Toby, from West Wittering, said: “It is a sad state of affairs when swimmers are falling seriously sick from sewage while water company bosses trouser millions in bonuses.”
Jess Brown-Fuller, Liberal Democrat parliamentary candidate for the Chichester constituency, said: “It’s shameful that Gillian Keegan and this Conservative government have once again put water companies’ profits before people’s health.
“It is a complete slap in the face to all those in Chichester constituency who expect their MP to stand up and fight for them, instead of for massive companies who have dumped filthy sewage into our harbours, rivers and waterways.
“The Liberal Democrats have exposed the sewage scandal and will continue to hold these polluting firms to account even if Gillian Keegan refuses to.”
Gillian Keegan said that she has “always been clear” that sewage spills are “completely unacceptable”.
She said: “I share the concerns of residents, but rather than playing political games like the Liberal Democrats – my Conservative colleagues and I have been the first to face this problem square on.
“Locally, I have convened a forum with MPs from across the Solent region as well representatives from Southern Water, Ofwat, Environment Agency, Natural England, RSPB and Chichester Harbour Conservancy to drive improvements in water quality in local harbours and the wider Solent region.
“I continue to hold the Environment Agency and Southern Water to account and meet senior leaders regularly for progress updates on the key asks for my campaign to stop the spills.
“As well as more transparent monitoring, I’ve made clear I want to end sewage discharges entirely, but as we work to that goal I am campaigning for UV treatment, which kills bacteria, at every discharge point around the harbour, including at Thornham, and better sealing of the network.
“At a national level, the Conservatives are the first government to take steps to address storm overflows, with vastly improved monitoring.
“This has increased from approximately seven per cent when we came to power in 2010 to 91 per cent now, with 100 per cent coverage by the end of this year.
“We have implemented the Storm Overflows Discharge Reduction Plan and enforced stringent targets to protect people and the environment, backed up by up to £60 billion in capital investment.
“The government have also removed the limit of fines for water companies who dump sewage in our waterways.”
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