Thames Water demonstrates that privatisation is not fit for purpose

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Privatisation has been demonstrated as an act of faith rather than a vehicle for effective and responsible management of essential public services (thameswater.jpg)

Environmental quality and resilience minister Rebecca Pow states that “the government is confident that Ofwat, as the economic regulator for the water industry, is working with any company that is facing financial distress”.

Yet she has ignored the fundamental principle that (notwithstanding the financial difficulties of a single provider) water and sewerage provisions in England and Wales are regulated by statute and therefore it is ultimately the responsibility of the government.

In the post-privatisation world of Margaret Thatcher, the majority of England’s water industry is under foreign ownership. Majority ownership in the private sector is synonymous with control.

This Tory government, like its predecessors, appears to regard the duty of water and sewerage regulation to be the sole responsibility of the companies and their owners. Yet their interests, being primarily dividend driven, lie elsewhere than in the quality of UK infrastructure & supply.

The Independent’s informative article by Sean O’Grady makes the observation that “privatisation was a great symbol of Thatcherism and the Conservative belief in the ability of free enterprise to deliver good, affordable services”. That has been demonstrated to be an act of faith rather than a vehicle for effective and responsible management of essential public services, particularly where massive infrastructure is involved. The railways and energy provision are further cases in point.

The example of Thames Water demonstrates that the 100 per cent privatisation model is not fit for purpose. A controlling UK government stake in any such enterprise is essential in the public interest. It is a “nationalisation” model common in major economies in the EU, some of which are ventures presently operating in the UK generating income to the benefit of their taxpayers.

David Nelmes

Newport

We’ve been taken for a ride

How can it be that the first inklings that Thames Water is in financial trouble come as it announces it can no longer service its gargantuan debts or presumably its programme to upgrade a leaky polluting infrastructure? Surely, our government holds some overseeing role within this business and monitors things like probity, finance, and corporate responsibility – bearing in mind that these utilities provide an utterly essential and life-critical service.

This isn’t an entertainment platform or coffee chain which has gone down the toilet. It is essential infrastructure and it looks like they’ve been tootling along, lining their pockets without any checks or interference by the government.

Not so long ago we saw a very major energy supplier, Bulb, go to the wall overnight requiring government intervention, and the list goes on.

Taking advantage of market forces and competition to ensure value for money was the promise and frankly, we’ve been taken for a ride. Transport, energy, and water companies, as well as virtually all of our dental services, are now privatised and all stand accused of overcharging, rigging markets, and underinvesting in services. All while transferring billions in premiums to investors who more than often turn out to be Conservative Party donors, for obvious reasons.

Clearly, things must change, and while Rishi Sunak isn’t likely to cut his own throat by antagonising those funding his party, it is equally unclear whether Keir Starmer has the will, ability, or political gumption to wrest control from businesses who no longer can be trusted to provide a decent, effective, or competitive service.

Steve Mackinder

Denver

The great British rip-off

The Thames Water collapse is the latest fiasco demonstrating how the Great British public is continually being ripped off by the Conservative Party.

All the headlines have been about Sarah Bentley and her incredulous salary as well as the ridiculous executive bonuses, and shareholder dividends. And now it’s revealed that a debt of £14bn may bring down the company.

All while customer prices go through the roof.

If that is what privatisation gets you then no thanks. The real villains here are the government and watchdogs for allowing Thames Water to even get to this stage. These figures are sadly a drop in the ocean compared to how much money has been lost on the privatisation of our railways. It is time to make sure every penny spent is invested in our key services and not in the bonuses of the one per cent.

Paul Morrison

Glasgow

Tory rebellion is needed

So, as if splits in the Conservative Party were not bad enough already for Rishi Sunak, along comes another one. This time it’s the chair of the Women and Equalities Committee, MP Caroline Nokes.

Nokes has decided to speak out against the deportation of children as part of Suella Braverman’s Rwanda deportation scheme. I congratulate the highly respected Nokes because any deportation of children seeking asylum is a very sick act indeed.

Of course, it’s not the first time Nokes has taken a stand at the Conservative Party hierarchy. Her daring to stand up to a certain Boris Johnson is infamous.

Sixteen per cent of asylum-seekers are children, and 30 per cent of asylum-seekers are women. This narrative that they are all young men is simply wrong.

Caroline Nokes was right then, and Caroline Nokes is right now.

Geoffrey Brooking

Hampshire