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Morning Star Editorial: The neoliberal model of privatised water is sunk

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https://morningstaronline.co.uk/article/neoliberal-model-privatised-water-sunk

 A tanker from Thames Water

INVESTMENT in Britain’s water utilities took a dive under Thatcher’s government. By 1980 investment by the regional water authorities dropped by two-thirds as the neoliberal straitjacket into which public expenditure was confined limited their ability to raise capital.

Contrast this to the present situation where the now privatised water companies have racked up millions in loans that seem more valued as a source of ready cash to pay bonuses, dividends and sweeteners than infrastructure investment.

The total debt burden of the dozen privately owned water companies stands at £65 billion which this year’s Commons report says is perilously close to the 70 per cent gearing at which commercial credibility is compromised.

Jo Maugham, director of the Good Law Project, which has been involved in legal challenges to a number of water companies, says: “The water sector has been poorly regulated for decades. It has been poorly regulated primarily by allowing water companies to over extract water from aquifers and reservoirs but also cash from operating entities within the water companies, and they’ve been allowed to underinvest in water infrastructure.”

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The logical case for public ownership is sometimes challenged by the suggestion that taking these failing enterprises into public ownership would be prohibitively expensive.

This is, of course, true if these enterprises were to offered for sale at the price their owners value them. A socialist government armed with a popular mandate and backed by a working class armed with both resolve and the necessary instruments of coercion might simply dispossess these rapacious incompetents and instruct them, individually and as a class, to find an alternative way of making a living freed of the responsibilities of ownership.

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https://morningstaronline.co.uk/article/neoliberal-model-privatised-water-sunk

Continue ReadingMorning Star Editorial: The neoliberal model of privatised water is sunk

Outrage as Thames Water allowed to pay just a fifth of record pollution fines

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https://morningstaronline.co.uk/article/outrage-thames-water-allowed-pay-just-fifth-record-pollution-fines

 A Thames Water van

THAMES WATER will only have to pay a fifth of its record £122.7 million in fines under a “sweetheart deal,” with industry regulator Ofwat branded “outrageous” by water campaigners today.

The heavily indebted utility firm was handed the penalties in May for failures over sewage treatment and paying out dividends.

It has already passed a deadline for paying them by August 20 but has now agreed to pay only a fifth by the end of next month, with the remainder subject to securing a private rescue deal and cash injection.

Ofwat said that it had set a final “backstop date” of March 31 2030 for payment of the remaining penalties whether or not Britain’s biggest water company avoids insolvency.

It would have 30 calendar days to pay up after securing such a deal or at the end of an insolvency process that would see it placed into a government special administration scheme.

River Action chief executive James Wallace said: “It is outrageous that Thames Water has been allowed to kick its fine down the road.

“This fine must be paid by those responsible, not future owners and investors.

“Ordinary people do not get to walk into court and say, ‘I’ll pay the rest of my penalty if I get a better paying job.’ Yet that is exactly the sweetheart deal Thames Water has secured.

“This is not accountability. The investors who drained the company and pocketed £170 million in dividends in October 2023 and March 2024 may never feel the consequences.

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Article continues at https://morningstaronline.co.uk/article/outrage-thames-water-allowed-pay-just-fifth-record-pollution-fines

April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
Continue ReadingOutrage as Thames Water allowed to pay just a fifth of record pollution fines

Government urged to drop ‘parasitic’ private contracts as rail fares set to soar

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https://morningstaronline.co.uk/article/government-urged-drop-parasitic-private-contracts-rail-fares-set-soar

 People using a ticket machine at Waterloo train station in London

THE government was urged to ditch “parasitic” private contracts today after it emerged that regulated train fares in England could soar by 5.8 per cent next year.

This year fares went up 4.6 per cent — one point higher than last July’s retail prices index (RPI).

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The government is set to renationalise all train operators by 2027 and integrate them into Great British Railways, a new public body which will also oversee rail infrastructure.

However GBR will continue to lease rolling stock, carriages and locomotives, from private firms. Outsourced contracts, such as those for cleaning staff, are also set to remain.

A spokesperson for rail union RMT said: “Our analysis shows that £720 million is extracted each year from our railways through rolling stock leasing, outsourcing and subcontracting.

“Eliminating that profiteering would allow fares to be cut by 6.5 per cent.

“The government has an opportunity under GBR to remove these parasitic contracts that drain resources from the network and instead offer real value for money for passengers through public ownership.”

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Original article at https://morningstaronline.co.uk/article/government-urged-drop-parasitic-private-contracts-rail-fares-set-soar

Continue ReadingGovernment urged to drop ‘parasitic’ private contracts as rail fares set to soar

‘Outsourcing on our railways is a racket’

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https://morningstaronline.co.uk/article/outsourcing-our-railways-racket

 RMT members in Manchester, August 14, 2025

RMT demands Labour deliver on its promise to start the ‘biggest wave of insourcing in a generation’

RAIL union RMT held a mass meeting in Manchester today as part of its national campaign to end outsourcing on Britain’s railways.

The meeting heard from RMT general secretary Eddie Dempsey, regional organiser Steve Shaw, Salford Labour MP Rebecca Long Bailey and North West TUC secretary Jay McKenna.

In a recent report, the union warned that despite government plans to bring rail franchises in-house and create the new publicly owned body Great British Railways, a “hidden layer” of contractors continues to profit from the exploitation of thousands of workers.

The report warned that such companies make their profits by keeping workers on low-paid, inferior or casual contracts, leaving them struggling to get by.

RMT argues that all rail jobs, from cleaning to catering, engineering to station services, should be brought back in-house to reverse decades of outsourcing that have driven down pay, eroded conditions and undermined safety.

The union is also pressing the Labour government to honour its pledge to deliver the biggest wave of insourcing in a generation.

Mr Dempsey said: “Outsourcing on our railways is a racket.

“Private firms are cashing in while cleaners, security staff and track workers, among others, are left struggling, often on low pay, insecure contracts and unsafe conditions.

“We have overworked cleaners, for example, working while sick, as companies like Churchill hand millions to shareholders.

“It’s totally indefensible and a waste of taxpayers’ money.”

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Article continues at https://morningstaronline.co.uk/article/outsourcing-our-railways-racket

Continue Reading‘Outsourcing on our railways is a racket’

Revealed: Yorkshire Water boss was paid extra £1.3m via offshore parent firm

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https://www.theguardian.com/business/2025/aug/03/yorkshire-water-boss-pay-offshore-parent-company

Nicola Shaw received remuneration from Kelda Holdings as well as Yorkshire Water. Photograph: Graham Turner/The Guardian

Company says extra payments relating to work for Kelda Holdings were covered by shareholders not billpayers

The boss of Yorkshire Water, one of Britain’s biggest water suppliers, has received £1.3m in previously undisclosed extra pay since 2023 via an offshore parent company, the Guardian can reveal.

Nicola Shaw received £660,000 from Yorkshire Water’s Jersey-registered parent company, Kelda Holdings, in the 2023-24 and the 2024-25 financial years. The size of the fees was not disclosed in the annual report of the regulated subsidiary, Yorkshire Water Services.

The utility company at first refused to detail the pay Kelda Holdings had awarded Shaw, saying the parent company was a “private entity registered in Jersey and subject to separate disclosure frameworks”. Only after the Guardian raised questions about the ability of MPs and bill payers to scrutinise the pay awarded did the company reveal the amount of the two payments.

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Gary Carter, the national officer for GMB, a union representing water workers, said: “This is another case of water companies not listening to the outrage and concerns of the public over the payment of unjustifiable salaries.

“The fact that this salary is hidden and not transparent just further undermines the reputation of water companies. This sort of behaviour has got to end.”

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Read the original article at https://www.theguardian.com/business/2025/aug/03/yorkshire-water-boss-pay-offshore-parent-company

April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
Continue ReadingRevealed: Yorkshire Water boss was paid extra £1.3m via offshore parent firm