cleaner, cheaper, fairer

The People's Commission on the Water Sector reports today that:

The privatised water model has failed and a shift to public ownership is required for these reasons:

• All bill payers money is used for water services. We are not servicing debt of between 21-50% of bills. Surplus funds are reinvested.

• All the water sectors effort focuses on cleaning up our rivers lakes and seas, not financial interests. It is possible to collaborate to secure better solutions to our water crisis.

• Public trust is reinstated, and people can get involved in conserving and protecting water, playing our part in the safety of our water now and in the future.

• Regulators focus on people and the environment, with open and transparent data for public scrutiny.

• Any debt needed is cheaper, as government can borrow at interest rates far lower than the 8-12% being charged by current investors.

• There will be no incentive to inflate costs or delay spending.

Transition to Public Ownership

When pollution, historic returns to shareholders and banks, all company debts, and outstanding repair costs are taken into account, the value (and hence the cost of compensation) is likely in the case of Thames to be close to zero because shareholders and banks have already been paid and will not deserve a further bail out with taxpayer or bill payer’s money (McGaughey 2025). Other companies will follow suit.

Even if there are some upfront costs with public ownership, these are likely to soon be recouped and must be set against the ongoing high costs of privatisation. The costs will be nowhere near the current purported cost of over £100bn which is serious scaremongering.

Investments

Without the burden of private sector debt, money from bill payers is liberated to use for the plans for the next 5 years. Any additional debt required will be small, and will be attractive to patient capital as the overall water sector will be stable and predictable, rather than in perpetual crisis.

In addition the report recommends:

• A Cross-Party Crisis Committee to develop a National Strategy for Water with a strategic advisory group of independent experts - (SAGE) for Water

• Getting on top of upstream pollution with those that pollute being responsible for cleaning up our waterways, on the Polluter Pays principle.

You will also see our call for one regulator but under the public ownership model not the privatised model.