𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

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The Prime Minster has unveiled plans for new laws to pave the way for public ownership of failing water firms, and vowed a 10-year path to a “very different water system” in the UK.

In his speech at the Labour Party conference, Andy Burnham said Environment Secretary Dame Angela Eagle would present a “strengthened Water Bill to Parliament”.

“The centrepiece of that Bill will be this: the repeal of Margaret Thatcher’s ideological ban on public ownership of water companies,” he said.

It raises the spectre of a possible temporary nationalisation of debt-laden Thames Water as the Government looks to decide on a £10 billion rescue takeover put forward by lenders for the UK’s biggest water supplier.

The Government has remained tight-lipped on any plans for a so-called special administration regime for Thames Water, despite the company warning it only has enough money until the year end.

The Department for the Environment, Food and Rural Affairs has recently confirmed all options were still under review.

Mr Burnham told the Labour conference: “Water is a symbol of what has gone wrong with Britain – a service where the shareholders never lose and the public never win, from which some have syphoned out easy money while the public picked up the bill for the sewage in our seas. It stinks.”

He said the new water bill will “start a 10-year journey to a very different water system, it will strengthen public control, mayors will have new powers to hold water companies to account, with tougher consequences for those which repeatedly fail. It will close the loopholes used to pay excessive bonuses”.

“Where private companies serve the public interest, we will support them – but the consequences will be clear for those who do not, including taking back control or ownership,” he added.

Under the current Water Act 1989, there are limits on government ownership of shares in major water and sewerage companies.

These limits vary between 1% and 3%, depending on the company.

Cat Hobbs, director of public ownership campaign We Own It, repeated calls for Thames Water to be nationalised urgently.

She said: “Repealing the ban on public ownership of water companies is a welcome step in the right direction, but it is far from meeting the scale of the crisis.

“Thames Water should have been in special administration yesterday.

“It is in £20 billion of debt and teetering on the brink of financial collapse.

“The only option to keep it privatised is to hand it over to a group of US hedge funds.

“How can this Government be serious about their promise to reverse Thatcher’s legacy of privatisation, if they are not urgently bringing it into public hands?”

Mr Burnham said Dame Angela will also launch a review into loopholes in the ban on water executive bonuses after it was revealed recently that some companies with poor performance have been able to side-step the rules.

The Government will set out further details for its new 10-year plan later this year, with changes to be delivered under the new water bill.