Water Companies: Licence Conditions

Baroness Hayman of Ullock Excerpts

Wednesday 1st May 2024 Lords Chamber

[Lord Douglas-Miller (Con)]

I do not think that I agree with that assessment at all; it certainly is not this Government’s policy to nationalise the water industry or indeed any other industry. Environmental issues around water companies are certainly highlighted more greatly than they ever were in the past. The Government have put a huge effort into monitoring the level of sewage and other pollutants going into the water systems. That, in part, is leading to much greater awareness of issues that have probably been going on for a very long time, and we are committed to fixing those issues.

[Baroness Hayman of Ullock (Lab)]

My Lords, I want to come back to the Minister’s response on dividends, investments and payments. Earlier this month, the Financial Times revealed that the 16 water companies paid out a total of £78 billion in dividends in the three decades since privatisation to March 2023, building up £64 billion in borrowing over the same period. It is worth remembering that the utilities were debt free when they were privatised. Frankly, I find these figures incredible. Is the Minister justifying his response to my noble friend as to how much money is acceptable to be paid in dividends?

[Lord Douglas-Miller (Con)]

The noble Baroness raises a lot of very detailed numbers in her question, but the principle of dividends for public companies is well established and every other public company produces dividends for its investors. Perhaps I might take away those thoughts and come back to her.