Thames, Yorkshire and Northumbrian Water: Ofwat Proposed Fines Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Lord Hodgson of Astley Abbotts
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Thames, Yorkshire and Northumbrian Water: Ofwat Proposed Fines
Lord Hodgson of Astley Abbotts Excerpts(2 days, 1 hour ago)
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Baroness Hayman of Ullock (Lab)
I thank the noble Lord for that clarification.
Lord Hodgson of Astley Abbotts (Con)
Is the Minster aware that limited liability is a privilege, not a right? If the ordinary shareholders of the water companies are choosing to overleverage the companies with a view to making a profit out of their ordinary shares, because interest is deductible and dividends are not, would it not be a good idea to consider whether limited liability is the right form for shareholders of these companies?
Baroness Hayman of Ullock (Lab)
There are some good points being made around the financial management of water companies at the moment, and I hope that, as we get further into the commission being led by Sir Jon Cunliffe, we can really dig down into this area. The fact that he was part of the Bank of England should help in looking at how we tackle these financial mismanagements.