Water industry review unlikely to spark required change, claims Feargal Sharkey
But former Undertones frontman Sharkey, who has become a leading campaigner for water companies to clean up their act, said he fears the highly anticipated report will be a 'flat pancake'.
He told the PA news agency: 'We were promised that the report will bring us champagne – but it will just be a saucer of milk.'
Sharkey, who has given evidence to MPs on the need for reform and has spoken at numerous public and trade union meetings, said he does not believe 'much will happen' as a result of the report's findings.
'Sir Jon's job is to make the current system better, but so many things have not been considered in his review, such as the ownership of the water companies.
'I also don't think you can talk about abolishing Ofwat without considering the future of the Environment Agency – and taking a long, hard look at the Environment Department (Defra), as well as the lack of action from government ministers for many years. They are just as culpable.'
Sharkey said governments have had the power to punish water companies over sewage pollution, or the 'scandal' of paying huge bonuses to bosses, but had chosen not to use them for years.
He believes the public and customers have been treated with 'contempt' by water companies for years despite outrage over sewage pollution of rivers and waterways.
He added the fact that the review had been held was a victory for the many small community groups across the country set up to tackle the crisis.
The review was commissioned by the UK and Welsh governments as part of their response to systemic industry failures, which include rising bills, record sewage spills and debt-ridden company finances, although ministers have ruled out nationalising companies.
A Government spokesperson pointed out that unfair bonuses have been banned for senior executives at six water companies under new measures which came into force last month.
The Government said at the time that transformative change across the water sector was needed to clean up rivers, lakes and seas, and modernise the sector for decades to come.
Under the rules, companies are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
a few seconds ago
- Daily Mirror
Ofwat scrapped as water industry to be overseen by new watchdog
The Government called it the biggest overhaul of the water sector since privatisation but campaigners criticised the plans saying it creates an 'illusion of change' Water regulator Ofwat will be scrapped and replaced to overhaul the "broken" system, Environment Secretary Steve Reed has said. The body is among changes recommended in a long-awaited Independent Water Commission review launched by Jon Cunliffe which also include the abolishment of Ofwat, the industry watchdog for England and Wales. It will be replaced by a regulator with supervisory powers, similar to oversight of banks after the financial crash and experts would be appointed to work inside water companies and ensure they are obeying the law and improving the environment. While the Government called it the biggest overhaul of the water sector since privatisation, campaigners criticised the plans saying it creates an 'illusion of change' and is not the transformation needed. The review was also slammed for leaving out a recommendation of public ownership which some experts say is the only way to stop millions being siphoned off for huge CEO salaries and shareholder dividends and instead to invest into ending sewage dumping and fixing leaks. Co-leader of the Green Party, Adrian Ramsay MP, said: "Expecting a different form of regulation to fix the water industry is, frankly, rearranging the deck chairs on the Titanic. Not only that but the majority of the public are going to be expected to pay more in bills, as we watch the industry continue to sink under the failed model of privatisation.' Scrapping Ofwat will be the biggest overhaul with one regulator established where there has until now been four. Steve Reed says the new body will oversee investment and maintenance for customers so that families are "never again hit by the shocking bill hikes we saw last year". Along with scrapping Ofwat, the government has confirmed it will immediately sign up to four more of the report's recommendations - which leaves another 83 to consider. The new ombudsman, replacing the Consumer Council for Water (CCW), will have strengthened legal powers to help consumers who face problems from water companies, such as sewage floods in their gardens and taps running dry owing to burst pipes. There's much to pick through in the 465-page report - but here are the key points: *OFWAT There are currently four separate regulators responsible for the water industry, a complex, tangled system of confusion. It is a merry-go-round of regulators blaming each other for breaking this country's water system. Sir Jon makes it clear that pretty much all sides are to blame for the state of the sector. "The underlying fact is we have not managed this well, and no one comes out of this with very much glory - not government, not the water companies and not the regulators," he said. But it's the role of the regulators that comes under most scrutiny. Scrapping Ofwat, something the government has now confirmed it will do, and would mark a major shake-up in the way water companies are held to account. *SEWAGE We now have a much better idea of how many times sewage is spilled into our rivers and seas, which were not routinely monitored even a decade ago. But the Water Commission recommends reforming what's called "operator self-monitoring" – where water companies monitor and report pollution and sewage incidents to the regulator. The review doesn't recommend making monitoring entirely the responsibility of the regulator over water companies, citing high costs. But it does say that the regulators should develop a stronger approach to monitoring, including greater automation, third-party checks and "intelligence-led inspections". *OWNERSHIP The review says the regulator should also have more say in who owns water companies and introduce a "new regime to make senior executives directly accountable, The sector also needs new measures to attract long-term investors and better oversight of company finances, it adds. But some campaigners are furious that the review was never allowed to consider what they see as the fundamental problem - that it is in private, not public hands. Sir Jon Cunliffe has repeatedly said that underinvestment for years in our water infrastructure now means that massive funding is required, which could put significant burden on households. To ease this pressure, he makes two recommendations, including the compulsory introduction of smart metering. This would work in a similar way to how energy meters currently work, where people would be charged for the water they use rather than paying a flat fee. More than 60% of households have a meter already. This normally gets read manually once a year, whereas smart meters track water use in real time. Currently only 12% of households have smart meters. As well as reducing costs for users of less water, it could help in driving down demand across the country, Cunliffe says. Increasing demand for water is putting pressure on water supplies and infrastructure. The report reads: "By 2055, it is anticipated there could be an additional 8 million people living in England, and public water supply could experience a shortfall of up to 5 billion litres per day." Water minister Emma Hardy said it's clear that the water system is broken". She said the report is "stage three" in a "revolution" of the water sector, following changes to the law which banned bonuses for water bosses and the introduction of criminal liability for failures. She welcomed the report but refused to confirm exactly how many of its 88 recommendations the government will adopt. Instead, she said ministers plan to study them throughout the summer, before introducing a new water bill next year. In a speech the Secretary of State for the Environment, Steve Reed pledged to strengthen regulation, clean up the country's rivers and protect the public from soaring water bills. He said: 'Our water industry is broken. That is why this Government will fix our broken regulatory system so the failures of the past never happen again. But River Action slammed the report accusing it of failing to propose the bold reform urgently needed to fix the UK's crumbling water system and said it offers 'the illusion of change – not real change.' CEO of River Action James Wallace said, 'This was a once-in-a-generation opportunity to reset a broken and corrupted system. Instead, the Commission blinked. After three decades of privatisation, there is no evidence it can work. The report diagnoses symptoms but avoids the cure, appeasing the vulture capital markets and failing to propose alternative public-benefit investment, ownership and governance models that have been proven across Europe. ' 'We needed a credible plan to rescue Britain's rivers, lakes, and seas – and a clear pathway to bring failing companies like Thames Water into public control. Instead, we've been handed vague policy nudges that leave the current failed privatised water company model intact. When raw sewage is pouring into our waterways and reservoirs run dry, tinkering with regulatory half-measures simply isn't enough to restore public trust. 'The Government must act now with a powerful statement of intent by putting our biggest polluter - Thames Water - into Special Administration to send a warning shot across the stained bows of the Sewage Armada. Anything less will signal the UK is open to yet more corporate takeover. Our water is our life-blood and not for sale.' Giles Bristow, Chief Executive, Surfers Against Sewage added: 'Look past the glossy veneer of today's Independent Water Commission recommendations and you'll see it utterly fails to prioritise public benefit over private profit. This is not transformational reform, this is putting lipstick on a pig – and you can bet the champagne is flowing in water company boardrooms across the land. Prime Minister, you must abandon the dangerous fantasy that the current privatised water industry can be patched up – it can't, and the public knows it. Your party was elected on a pledge to clean up our rivers and coasts; now deliver on that promise, and go far beyond these half measures.'
Reuters
a few seconds ago
- Reuters
UK to create new water regulator amid crisis at Thames Water
LONDON, July 21 (Reuters) - Britain will create a new powerful regulator for its water industry following public fury over sewage spills, accepting the key proposal of an independent report that also suggested easing up on pollution fines to prevent companies from collapsing. The Labour government, which promised major reforms for the debt-laden industry when it was elected last year, said the new system combining several different regulators in one would better protect the environment, investors and consumers. The privatised water sector in England and Wales has sparked a public outcry by dumping record levels of sewage into rivers and lakes following years of under-investment, at the same time as paying big executive bonuses and dividends. But the government faces a tricky task in turning round an industry where high debts have left some companies struggling for survival. Symbolising the failure of the sector, Thames Water, the country's biggest water supplier with 16 million customers and 17 billion pounds ($23 billion) of debt, is teetering on the brink of nationalisation, and warning that it cannot pay the sewage fines it is facing. Former Bank of England Deputy Governor Jon Cunliffe, who led a review of the sector published on Monday, said a new powerful regulator should replace several bodies and that a formal turnaround regime should be established to give struggling companies space to recover under "regulatory forbearance". Environment minister Steve Reed said he had agreed to abolish financial watchdog Ofwat as part of the regulatory overhaul, with a new consultation and legislation to be proposed later this year. But asked if Thames Water could be given breathing space on fines - a key demand of its bondholders who have proposed taking over the company in a last ditch effort to avoid nationalisation - Reed said the current legislation did not allow for that. "We're going to publish a white paper in the autumn, which will be our response to Jon's report today, and then consult, but as things stand, Thames need to resolve the situation themselves as a stand-alone, private company." Thames Water has warned it could collapse next year without new investment, as it faces 1.4 billion pounds in pollution fines and penalties over the next five years. While Cunliffe's proposals are the biggest shake-up of the sector since it was privatised in 1989, critics said they did not go far enough. Environmental campaigners want more radical change, such as the whole industry nationalised. "Abolishing Ofwat and replacing it with a shinier regulator won't stop sewage dumping or profiteering," said Giles Bristow, the CEO of campaign group Surfers Against Sewage. Cunliffe's remit did not allow him to consider nationalising the water sector. Reed said that would cost 100 billion pounds, take money away from health and education, and lead to legal battles that would delay any improvements. Under plans already set out by Ofwat, British water companies will get more than 100 billion pounds of investment in the next five years to respond to population growth and climate change, funded by an average 36% increase in customer bills - a huge rise that Reed told reporters was a one-off. On Thames, Reed said the government was prepared for special administration - a form of temporary nationalisation - but that would put Thames's debt on the national balance sheet, a situation it can ill afford. "My hope and expectation is that the creditors will come to an agreement themselves," he added. A source close to a Thames bondholder welcomed the recognition that regulatory support was required. ($1 = 0.7460 pounds)
Rhyl Journal
29 minutes ago
- Rhyl Journal
Russia launches major aerial attack on Kyiv
The attack killed two people and wounded 15, including a 12-year-old, Ukrainian President Volodymyr Zelensky said. In Kyiv's Shevchenkivskyi district, a drone struck the entrance to a subway station where people had taken cover. Videos posted on social media showed the station platform engulfed by smoke, with dozens of people inside. Kyiv mayor Vitali Klitschko said the station had to be ventilated in what he called an 'enhanced mode'. The heaviest strikes hit Kyiv's Darnytskyi district, where a nursery, supermarket and warehouse facilities caught fire. The hours-long drone and missile assault on Kyiv overnight into Monday underscored the urgency of Ukraine's need for further Western military aid, especially in air defence, a week after Mr Trump said deliveries would arrive in Ukraine within days. The virtual meeting will be led by British Defence Secretary John Healey and his German counterpart Boris Pistorius. Mr Healey said US defence secretary Pete Hegseth and Nato leader Mark Rutte, as well as Nato's Supreme Allied Commander Europe, General Alexus Grynkewich, will attend the meeting of the Ukraine Defence Contact Group. Moscow has intensified its long-range attacks on Ukrainian cities, and analysts say the barrages are likely to escalate as Russian drone production expands. In a shift of tone towards Russia, the US president last week gave Moscow a 50-day deadline to agree to a ceasefire or face tougher sanctions. At Monday's meeting, Mr Healey was expected to urge Ukraine's Western partners to launch a coincidental '50-day drive' to get Kyiv the weapons it needs to fight Russia's bigger army and force Russian President Vladimir Putin to the negotiating table, the UK Government said in a statement. Mr Trump's arms plan, announced a week ago, involves European nations sending American weapons to Ukraine via Nato – either from existing stockpiles or buying and donating new ones. The US president indicated discussions were partly focused on advanced Patriot air defence systems and said a week ago that deliveries would begin 'within days'. But last week various senior officials suggested no transfers had yet taken place. Gen Grynkewich told The Associated Press on Thursday that 'preparations are under way' for weapons transfers to Ukraine while US ambassador to Nato Matthew Whitaker said he could not give a time frame. Germany has said it offered to finance two new Patriot systems for Ukraine and raised the possibility of supplying systems it already owns and having them replaced by the US. But delivery could take time, German Chancellor Friedrich Merz suggested, because 'they have to be transported, they have to be set up; that is not a question of hours, it is a question of days, perhaps weeks'. Other Patriot systems could come thanks to Switzerland, whose defence ministry said on Thursday it was informed by the US Defence Department that it will 'reprioritise the delivery' of five previously ordered systems to support Ukraine. While Ukraine waits for Patriots, a senior Nato official said the alliance is still co-ordinating the delivery of other military aid – such as ammunition and artillery rounds – which includes aid from the US that was briefly paused. Mr Zelensky said on Saturday that his officials have proposed a new round of peace talks this week. Russian state media on Sunday reported that no date has yet been set for the negotiations, but said that Istanbul would probably remain the host city. The Kremlin spokesman said on Sunday that Russia is open to peace with Ukraine, but achieving its goals remains a priority. The overnight Russian barrage of Kyiv began shortly after midnight and continued until around 6am. Residents of the capital were kept awake by machine gun fire, buzzing drone engines, and multiple loud explosions. It was the first major attack on Kyiv since Mr Trump's special envoy to Ukraine Keith Kellogg arrived in the city last Monday. Russia halted strikes on Kyiv during his visit. Ukraine's air force said Russia launched 426 Shahed and decoy drones overnight into Monday, as well as 24 missiles of various types. It said 200 drones were intercepted with 203 more jammed or lost from radars. Ukraine, meanwhile, continued to deploy its domestically produced long-range drones. Russia's Ministry of Defence said that its forces shot down 74 Ukrainian drones overnight, with almost a third of them destroyed close to the Russian capital. Twenty-three drones were shot down in the Moscow region, the ministry said, 15 of which were intercepted over the city itself.
