WET News

A ngela Smith, the Labour MP who chairs the all- party parliamentary group on water, has said renationalising the water industry could lead to the UK being known as "the dirty man of Europe" again. Labour has publicised its plans to bring key utilities back into public ownership if it gains power and has criticised the privatised water industry's record on issues, including bills, leakage and shareholder dividends. However, Smith – who backed a no confidence vote in Labour leader Jeremy Corbyn in 2016 – warned in an article for The Guardian that while the party has outlined its plans for potential ownership structures for the water sector in England and Wales, there has been "very little thought given to actual operation of the industry", adding: "Nowhere is this clearer than when it comes to the environment". Smith rejected the notion that renationalisation would lead to automatic improvements of the natural water environment, particularly in light of the challenges of climate change, and highlighted issues prior to privatisation. "Throughout much of the 20th century our rivers and beaches were in a state of crisis.," she said. "The Thames was declared dead in the 1950s. In 1988, more than a third of our beaches fell below legal standards." She argued that "the need for investment is as pressing as ever" and warned against going "back to a system of ownership in which the water sector will always lose out when in competition for scarce government funds with schools and hospitals". She concluded by saying: "As a passionate environmentalist and champion of real investment in our public services, I do not want to go back to the 1980s when the UK was called the 'dirty man of Europe', with beaches overflowing with sewage, filthy rivers, excessive power station emissions and a poor conservation framework. "When it comes to ensuring we have clean water and a safe marine environment we cannot allow ideology to be the master of fact. That means resisting those who wish to reduce standards just as forcefully as we should resist simplistic calls for state ownership. "To further improve our rivers and beaches we need real investment supported by smart and efficient regulation, not dogma." Meanwhile, the University of Greenwich's Public Services International Research Unit has released analysis showing England's water and sewerage companies could have funded their capital expenditure since privatisation without taking on any debt. The analysis, published in the Financial Times, found the companies have taken on £51 billion in borrowings since 1989 but that this has been used to pay financial returns to investors. Professor David Hall, a director at the University of Greenwich, told the newspaper: "The £51 billion of debt, and the interest we pay on it, is simply down to a systematic extraction of shareholder payouts far in excess of any available cash surplus." He said the study "clearly shows that the companies could have funded all of their operations and investments from customer bills, without taking on any borrowing whatsoever". The study also highlighted that Scottish Water's operating spending per household is about 10 per cent lower than the privatised companies to the south and that its customers' bills have slightly dropped since it was founded in 2002, compared with a 10 per increase in England and Wales over the same period. wwtonline.co.uk | NOVEMBER 2018 WET NEWS 7 • All-party parliamentary water group chair warns UK could return to days of "beaches overflowing with sewage" and "filthy rivers" Labour MP Smith: Renationalisation plans pose risk to our environment The 8th International Conference and Exhibition on water, wastewater and environmental monitoring WWEM 2018 Supporting Trade Associations Network with Water Industry Experts... 21st - 22nd November Over 100 FREE workshops, over 140 Exhibitors and a focussed Conference. WWEM is the specialist event for monitoring, testing and analysis of water, wastewater and environmental samples. wwem.uk.com Tel: +44 (0)1727 858840 email: info@wwem.uk.com Follow us: @WWEM_Exhibition V i sit o rs t o W W E M w i l l a ls o h ave FR EE ad m is s i on t o t he A Q E S ho w WWEM 2018 will host the: CoGDEM gas detection and hazardous area WWEM 210x297.indd 1 19/09/2018 11:00 WATER NORTHERN IRELAND CONFERENCE 21 FEBRUARY 2019 | BELFAST C E L E B R A T E OU R Y E A R W I T H U S 10th The only event in NI bringing together the major stakeholders to share strategic expertise HEAR FROM INDUSTRY-LEADING SPEAKERS: Sara Venning Chief executive offi cer Northern Ireland Water Dave Foster Director of regulatory & natural resources policy Claire Sharp Customer director Northumbrian Water View the agenda and book online at wwt.events/waterni With both Brexit and PC21 approaching, it is crucial that leaders from across the sector work collaboratively to drive effi ciency and embrace this disruptive change. James Brockett Editor, Water & Wastewater Treatment (WWT) WWT-WaterNI19-HPH ad.indd 1 12/10/2018 15:12

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