The government’s assertion that it would exceed £100 billion to bring the struggling water industry back into public ownership has been condemned as false. Environmentalist and former lead singer of The Undertones, Feargal Sharkey, challenged the stated amount, arguing that most financially burdened suppliers would face insolvency if the full costs of necessary repairs and maintenance were considered.
Sharkey dismissed the £100 billion figure as baseless, pointing out discrepancies in the valuation of embattled Thames Water. While the Department for Environment, Food & Rural Affairs (Defra) estimated Thames Water’s worth at £21 billion, a £4 billion rescue deal by US private equity firm KKR fell through last June.
In a statement to the Mirror, Sharkey criticized Defra for inflating company valuations, calling for a candid discussion on the water industry’s future. He emphasized the urgent need for restructuring and refinancing within the industry, urging the government to address core issues promptly.
Andy Burnham, the Labour candidate for the Makerfield byelection, advocated for the nationalization of Thames Water. Sharkey, standing with protesters outside Defra’s Westminster offices, supported Burnham’s stance and called for the comprehensive nationalization of the entire industry.
The discussion arose following a petition for a referendum on public ownership of the water sector, with activists like Ash Smith from Windrush Against Sewage Pollution highlighting environmental concerns. Peter Hammond, another campaigner, stressed the need to eliminate profit motives driving water companies to neglect infrastructure upgrades.
Defra countered the calls for nationalization, warning of the exorbitant costs and potential deterioration in service quality. The government emphasized ongoing reforms to enhance regulatory oversight and transparency, aiming to rebuild customer trust and safeguard the environment through stringent inspections and accountability measures.