Water (Special Measures) Bill [Lords]

Debate between Pippa Heylings and Clive Lewis

Report stage
Tuesday 28th January 2025 Commons Chamber

[Clive Lewis]

I agree with the hon. Lady. I hope her party comes to its senses at some point—maybe in the same way that my party needs to come to its senses—and accept that some form of public ownership will probably be the best way to resolve that.

[Pippa Heylings (South Cambridgeshire) (LD)]

Have you?

[Clive Lewis]

That is my personal view; I put that on the record.

These companies have legal obligations first and foremost to their shareholders, which means short-term profit maximisation. When water was privatised, to quote from Unison’s recent report on this matter, to

“ensure the commercial success of the companies, the government wrote off all the existing debts of the RWAs”—

regional water authorities—

“(£6.5 billion in total) and gave the private companies £7.7 billion of public subsidies in tax relief on profits.”

It has come to my attention that even some former chief executives of water companies fear for the future of the industry, because good investors have by and large exited it. It is now the Macquaries and vulture capitalists of this world that dominate shareholding.

This issue goes far beyond regulation. Indeed, our own regulator, Ofwat, has been found wanting, as its own growth duty prioritises business as usual. In other areas, the Government have quite rightly recognised and embraced the value of public ownership, such as in rail and with Great British Energy. Unfortunately, when it comes to water companies there seems to be an inconsistency in Government policy. Many of us on this side of the House ran on a manifesto commitment to reduce the cost of living, and that commitment is one that I think every Labour MP believes in. However, the cost of corruption and of extraction by a private water company should under no circumstances, as is currently configured in the Bill, land on the heads of our constituents should any of these companies go bust or be taken into special administration.

Water is a monopoly industry, which means that bill payers and taxpayers are the same. What message would it send to our constituents if they are asked to pay, via their bills or via tax, to make a payout for the mistakes and excesses of privatised water?