Bambos Charalambous

It is a pleasure to serve under your chairship, Sir Jeremy. The current model for our water service is not working for customers and has not been working for quite some time. My constituents have watched their bills rise again and again while Thames Water falls further into debt and water bosses are rewarded with huge bonuses, despite failing to invest in critical infrastructure and allowing more sewage pollution into our rivers, lakes and streams. These failures in investment, infrastructure and environmental performance have undermined public confidence, and customers have been unable to take their business elsewhere, because the water companies operate through regional monopolies. I commend the Government for trying to tackle some of those issues, but tougher regulation is not enough to deal with a model that is fundamentally broken. Thames Water is in approximately £19 billion of debt, but the rescue deal on the table is a market-led recapitalisation by its creditors that will keep the failing private ownership model intact in exchange for environmental leniency. Water is an essential service and a natural monopoly, so it is reasonable to ask whether the interests of taxpayers are best served when the ownership of our water is determined by private investors. Bringing Thames Water into public ownership, either permanently or initially through a special administration regime, would allow the Government to write down debt on fairer terms than any creditor-led deal and to direct further revenue toward infrastructure and customers, rather than debt servicing and returns to shareholders. We must restore public confidence and end the era of profiting from pollution and prioritising shareholder returns over taxpayers. Our water services are too essential to be treated simply as another commercial asset. The water privatisation of the 1980s is a failed ideological experiment that has seen profits plundered into the pockets of hedge funds and offshore investors, while the sector has been starved of investment. Not a single reservoir has been built since 1992, and there has been under-investment in our antiquated pipes and overflowing sewerage system.