Jeremy Corbyn

I thank the hon. Member for that intervention. She put forward an excellent initiative at that time, calling for public ownership of the water industry. I will conclude my short remarks in a couple of minutes by addressing the question of public ownership. I now want to refer to Thames Water, which covers my constituency and much of London and the south-east. It is one of the biggest water companies, the most indebted and the most inefficient, and it would be interesting to know how it survives. Two years ago, when even the Financial Times called for public ownership of the water industry and said that it was the norm around the world, I am sure it was Thames Water it had in mind. Thames Water on its own has racked up £14 billion of debt. In 1989, on privatisation, its debt was zero. It has paid out £2.7 billion in dividends and £37 million in what it euphemistically calls internal dividends to its parent companies. The company could require as much as £10 billion to get its infrastructure up to regulatory standards. That would be compounded by the interest payments on its massive debt pile. My constituents suffer flooding and endless traffic disruption because of the lack of maintenance over many years. There have to be endless replacements of short sections of pipework, because there has been no proper planned investment programme. My call is simply this. I am sure that the Government’s proposed regulatory regime would be better than what we have at present, and it is good that the Secretary of State acknowledges the issues facing the water companies and all of us as consumers around the country. However, I simply say that once more we are into a debate between a regulator and the water companies, who this morning claimed they could not invest because of the regulatory framework. I think we should go back to the issue of public ownership. I have no idea where the figures given by the Secretary of State today came from; perhaps he can explain that. The reality is that under public ownership Parliament would decide the share value and the amount of compensation paid, which would have to take into account the inefficiency and waste of the companies, and people would be compensated with Government bonds at a fixed rate of interest. That would give us public ownership and control. I do not want an old-style nationalisation; I want community nationalisation. I will finish by saying that were local authorities, the workers in the industry, local communities and the Environment Agency jointly involved in how the water companies are run, their performance would be a lot better than it is with distant shareholders raking in massive profits from our water supply.