Water Sector: Public Ownership
Debate between Paul Davies and Jessica Toale(1Â week, 5Â days ago)
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Paul Davies
I will make some progress, and then I will.
The current model is absolutely an economic failure. Private companies have paid out, in 2024 prices, around £83 billion—an average of £2.4 billion a year—as dividends, while loading the companies in debt. Often, those loans were taken out simply to increase the amount of cash extracted as dividends when profits alone were not enough. As we know, crucial infrastructure has been left to fail. Not a single new reservoir has been built since 1992, and water companies have overseen the waste of around 3 billion litres of water a day through leaky pipes.
Paul Davies
I will make a little progress first. According to Environment Agency data, today, just one in seven of England’s waters is in good ecological condition.
Jessica Toale
I am glad that my hon. Friend raised the public health and environmental issues related to the water system. I have received representations not only about sewage at Bournemouth beach but, most recently, about exceptionally high levels of E. coli in Christchurch harbour, which flowed out of the Stour river in my constituency. Does my hon. Friend agree that the public interest of clear accountability in such contexts should always come before shareholder interest?
Paul Davies
I absolutely agree that transparency and accountability are crucial. As will be made clear in my speech, and, I am sure, the contributions of other Members, that is a major issue in the current model.
The model has also been a health disaster. According to Government advice, swimming in open water can increase the risk of gastrointestinal illness. Bathing water quality in England seriously lags behind that of its European counterparts. According to Best for Britain, the percentage of bathing waters in England that are rated poor quality is more than five times that in the European Union.