Guildford MP Says She Knows What Needs To Be Done To Fix Sewage Scandal

Published on: 26 Oct, 2024
Updated on: 29 Oct, 2024

By Martin Giles

Guildford’s MP Zöe Franklin (Lib Dem) has responded to the government’s announcement of a new review of the privatised water industry, repeating the Liberal Democrats’ long-standing calls for the regulator OFWAT to be replaced.

The government has announced a new Independent Water Commission, which it says will deliver the biggest review of the industry since privatisation.

Thames Water secures short-term financial lifeline

Ms Franklin’s statement was issued as Thames Water revealed that they had gained a financial “stay of execution” by raising an extra £3 billion in emergency funding from creditors, at apparently 10 per cent interest. But this is only estimated to give them a financial lifeline until October next year.

Thames Water’s huge debts have led to speculation it could be taken over by the government, although this would not affect any supplies.

One in four people in the UK, including those in Guildford and Godalming, rely on Thames for their supply and its customers are facing a steep rise in bills.

In July, the company had told water regulator Ofwat that it wanted to increase annual bills by 23 per cent between 2025 and 2030. Since then, Thames has said it needed to raise them by 53 per cent. There has been speculation that Ofwat will agree to an increased percentage price rise although not necessarily the percentage Thames Water is asking for.

Earlier this month it was announced that an independent “monitor”, L E K. Consulting, to report on the progress of Thames Water against its equity raise and transformation plans, has been appointed by Ofwat. The appointment of a monitor was one of the key elements of the package of commitments from Thames Water, confirmed in August to remedy its licence breach on losing its investment grade credit ratings.

Election commitment

Zöe Franklin made a commitment when elected in July to campaign against the depositing of sewage into local waterways.

Wild swimmers in the River Wey into which, at times, sewage continues to be deposited.

The Liberal Democrats argue there should be more urgency in dealing with the sewage scandal and with systemic failures of the water industry.

Ms Franklin said: “We need far more urgency from the government if we are to stop Thames Water polluting our rivers and waterways as soon as we can.

“I am encouraged to see the new government showing commitment to tackling the appalling mess left by 14 years of Conservative decline. I am furious that the water companies under the Conservative Government were able to put profiteering before serving us, and the environment. But I am very disappointed not to see a more urgent plan.

“We already know what the immediate problems are, and we already know what needs to be done in the short term. We need a new regulator which will have the powers it needs, and to review the way it works with other bodies, like the Environment Agency.

“I welcome this thorough review of the water industry, leading to what I hope will be a considered and practical way forward for improving infrastructure and stopping sewage pollution. But there is action that can be taken now, and I am disappointed that the government has stopped short of taking more urgent action.”

Responding to Zöe Franklin’s statement, Thom Van Every, chair of Guildford Conservatives, said: “The Conservatives have always worked to deliver cleaner waterways and related environments both in words and actions.

Thom Van Every, chair of the Guildford Conservatives

“It was the Conservatives who announced a ban on water company bosses’ bonuses, linked shareholder dividends to environmental performance, quadrupled water company inspections, fast-tracked investments to cut spills and launched a whistleblowing portal for water company workers to report breaches.

“And it was the previous Conservative administration in Guildford that enabled the new Sewage Treatment Works at the Weyside Urban Development, due for completion in 2026, which will provide increased storm capacity. It is only Conservative administrations that have a record of action.

“By contrast, our local MP offers empty words and no action. She was not even in the Chamber to hear the recent statement from the Labour Environment Secretary. In fact, the only Surrey MP who was present to ask a question about Thames Water was Conservative MP Dr Ben Spencer.”

Ramsey Nagaty, chair of the Guildford Greenbelt Group, was also critical. He said:”Zoe states what is obvious to anyone aware of the mess the water industry is in and the quality of our water, pollution of our rivers and frequent discharges and sewerage back up that are more frequently happening.

Ramsey Nagaty

“The whole purpose apart from political dogma of water privatisation was to obtain investment in updating the infrastructure without adding to Government debt.

“Sadly, the failure of all Governments since to adequately control the water companies and empower the regulator leaves us in this current position which with climate change will only get worse.”

“Zöe Franklin fails to say what the Lib Dem solution is. Yes the regulator and Environment Agency (EA) need to work together but the regulator needs stronger powers and the Agency more funding and resources.

“She also fails to say who should pay. Should it be shareholders and investors, managers who have received huge salaries and bonuses, the Government, or taxpayers, consumers and bill payers?

“Thames Water bosses say its new £3 billion lifeline proposals will ‘enable us to continue with the planned investment and maintenance of our infrastructure in order to continue to meet customers’ needs, and our environmental responsibilities.’

“Is this likely? TW have more than £15 billion in debts and has been in urgent talks with lenders and shareholders about putting its finances on a more secure footing but it will be a difficult period in which to resolve pressing infrastructure requirements.

“I note that Zoe does not call for caps on salaries, bonuses and dividends. Are the Lib Dems happy for the customers to foot the bill?

“Yet again what appears as a sensible, well-meaning Lib Dem statement fails to provide the detail.”