I'm pleased to see the Liberal Democrats have something radical to contribute on reforming the water industry.
A press release on the party website says Tim Farron, the Lib Dems' environment spokesperson, has tabled a parliamentary bill that would transform the water companies into 'public good companies':
Under the plans, water firms would no longer prioritise profit over the environment. The companies’ boards would be reformed, to include environment experts, and become far more open and transparent to the public.
Currently, water firms are not obligated under law to provide information to the public, and can refuse to answer Environmental Requests for Information.
The release quotes Tim Farron:
"The potential collapse of Thames Water must be a wake up call for the government. Ministers have sat on their hands whilst the water industry falls apart and destroys our environment.
"There is no time to waste in ripping up this scandal ridden industry. Thames Water is treating the country like fools, by forking out insulting pay outs to overseas investors and senior executives, all whilst pipes leak and rivers becoming polluted with sewage.
"It is time for change. The water industry has become like the Wild West. It is a lawless and chaotic industry full of profiteering investors trying to make a quick buck.
"Water firms must stop putting profit before the environment. These firms need reforming from top to bottom. This law would be an important first step to finally turning around this sinking ship."
A BBC News report explain that the concept of a 'public good company' is based on the public benefit corporations that operate in the US.
That report also says the Lib Dem scheme would rely on the water regulator to force the water companies to run themselves for the good of the environment as well as for profit.
My worry is that the regulator of the water industry - or any other industries - has rarely displayed the assertiveness this new role would require. The Thatcherite model under which industries would live in fear of their regulators has never looked like becoming reality.
So we may find that ownership matters too in the water industry, though there may be models to consider beside simple renationalisation.
Did you see Tracy Boles quoting Fergal Shearkey in yesterdays Times? “ The Undertones singer sees another way, set down in the Water Act 1991: a government enforcement order that would see Thames stay in private hands but given a to-do list on investment and paying down debt. Failure yo comply with legally binding undertakings could lead to heavy fines.”
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