Latest news with #sewagespills
Yahoo
2 days ago
- Business
- Yahoo
'Pure greed': MPs demand Southern Water CEO refuses 'massive payout'
MPs have accused the CEO of Southern Water of "pure greed" and urged Lawrence Gosden to refuse a 'massive payout' after it emerged that his salary was set to double to £1.4m. The 19 Labour MPs who represent constituents served by Southern Water said they were "appalled" by the "shameful and blatant" attempt by the company to get around a bonus ban. In a letter, they listed recent failures including "major flooding," "sewage spills" and "eye-watering bill hikes of 46.7%," as reasons not to reward the firm's boss. The MPs wrote: "Customers will be shocked that while they are being asked to pay more, you will be laughing all the way to the bank. "We urge you to do the right thing and decline this disgraceful payment for failure." Mr Gosden was awarded £691,000 under a two-year long-term incentive plan on top of his current salary of £687,000. This is despite Southern Water being banned from paying bonuses after a serious sewage leak in the New Forest in Hampshire last year. It comes as the Environment Secretary Steve Reed announced that new legislation would rule out these types of pay increases in future. Speaking over the weekend, Mr Reed described the pay rise as "outrageous" and called on Mr Gosden to turn it down. He told the BBC: "I don't think Southern Water has performed well enough for that kind of pay increase to be merited." Read more:Labour to eliminate unauthorised sewage spillages in 10 years Southern Water has previously defended the decision, saying they have not paid out bonuses and have made record investments in order to turn around the failing business. The company has been approached for comment.
Sky News
2 days ago
- Business
- Sky News
'Pure greed': MPs demand Southern Water CEO refuses 'massive payout'
MPs have accused the CEO of Southern Water of "pure greed" and urged Lawrence Gosden to refuse a 'massive payout' after it emerged that his salary was set to double to £1.4m. The 19 Labour MPs who represent constituents served by Southern Water said they were "appalled" by the "shameful and blatant" attempt by the company to get around a bonus ban. In a letter, they listed recent failures including "major flooding," "sewage spills" and "eye-watering bill hikes of 46.7%," as reasons not to reward the firm's boss. The MPs wrote: "Customers will be shocked that while they are being asked to pay more, you will be laughing all the way to the bank. "We urge you to do the right thing and decline this disgraceful payment for failure." Mr Gosden was awarded £691,000 under a two-year long-term incentive plan on top of his current salary of £687,000. This is despite Southern Water being banned from paying bonuses after a serious sewage leak in the New Forest in Hampshire last year. It comes as the Environment Secretary Steve Reed announced that new legislation would rule out these types of pay increases in future. 3:21 Speaking over the weekend, Mr Reed described the pay rise as "outrageous" and called on Mr Gosden to turn it down. He told the BBC: "I don't think Southern Water has performed well enough for that kind of pay increase to be merited." Southern Water has previously defended the decision, saying they have not paid out bonuses and have made record investments in order to turn around the failing business.
Sky News
2 days ago
- Business
- Sky News
'Pure greed': MPs demand Southern Water SEO refuses 'massive payout'
MPs have accused the CEO of Southern Water of "pure greed" and urged Lawrence Gosden to refuse a 'massive payout' after it emerged that his salary was set to double to £1.4m. The 19 Labour MPs who represent constituents served by Southern Water said they were "appalled" by the "shameful and blatant" attempt by the company to get around a bonus ban. In a letter, they listed recent failures including "major flooding," "sewage spills" and "eye-watering bill hikes of 46.7%," as reasons not to reward the firm's boss. The MPs wrote: "Customers will be shocked that while they are being asked to pay more, you will be laughing all the way to the bank. "We urge you to do the right thing and decline this disgraceful payment for failure." Mr Gosden was awarded £691,000 under a two-year long-term incentive plan on top of his current salary of £687,000. This is despite Southern Water being banned from paying bonuses after a serious sewage leak in the New Forest in Hampshire last year. It comes as the Environment Secretary Steve Reed announced that new legislation would rule out these types of pay increases in future. 3:21 Speaking over the weekend, Mr Reed described the pay rise as "outrageous" and called on Mr Gosden to turn it down. He told the BBC: "I don't think Southern Water has performed well enough for that kind of pay increase to be merited." Southern Water has previously defended the decision, saying they have not paid out bonuses and have made record investments in order to turn around the failing business.
BBC News
2 days ago
- Politics
- BBC News
Devon and Cornwall campaigners' mixed response to water overhaul
Environmental campaigners and industry stakeholders have given mixed responses to the government's announcement that water regulator Ofwat will be scrapped and Secretary Steve Reed said the overhaul, which follows an independent review, would "prevent the abuses of the past" and bring together fragmented oversight into a more accountable Pearson from water cleanliness advocates Friends of the Dart cautiously welcomed the move, calling the proposed ombudsman "a powerful tool for change."Campaign group, Cornwall-based Surfers Against Sewage (SAS), condemned the report as insufficient and cosmetic, claiming it was "putting lipstick on a pig". New water ombudsman will tackle leaks and overchargingFive key takeaways from the landmark water sector reviewWill the water industry proposals make any difference?Water bills will 'never again' jump as high, claims minister The Water Commission review, led by former Bank of England deputy governor Sir Jon Cunliffe, was set up in response to growing public concern about sewage spills and rising Pearson said: "We often hear people complaining that South West Water are effectively marking their own homework at the moment."She believes sustained investment and government-backed enforcement and needed for significant improvements to river health."What we need to see is not just identifying the problems, but consistent action towards resolving them," she said. "We need the right thing to be done, and we need it to be done methodically and with a long-term view." 'Taken for fools' Giles Bristow, chief executive of SAS, said the review "utterly fails to prioritise public benefit over private profit". "Only one path forward remains: a full, systemic transformation that ends the ruthless pursuit of profit and puts the public good at the heart of our water services," he the group welcomed the call for a national strategy, Mr Bristow dismissed the regulator overhaul as said: "We won't be taken for fools. Abolishing Ofwat and replacing it with a shinier regulator won't stop sewage dumping or profiteering if the finance and ownership structures stay the same." South West Water said it welcomed the report "and its focus on shaping a stronger water sector for the future"."The proposals outlined today reflect the importance of long-term strategic planning, local accountability, and better environmental and public health outcomes," it said."We are particularly supportive of efforts to update regulation, strengthen asset health, and introduce clearer national direction through a long-term water strategy." Analysis from BBC South West environment correspondent Kirk England "From sea swimmers to clean water campaigners, many will be hoping that Sir Jon Cunliffe's review will lead to change, particularly on tackling sewage spills."About a third of England's designated bathing waters are here in the South West."In 2024, although the overall number of spills by South West Water dropped slightly, to 56,000, the duration of those spills rose to 544,000 hours, up from 531,000 in 2023."South West Water has welcomed the publication of the Independent Water Commission's final report and has already said it is investing to tackle sewage discharges."But there are fears the proposed measures don't go far enough and will not lead to what so many people have told me they want to see - a significant and sustained reduction in sewage discharges into rivers and the sea."
Reuters
2 days ago
- Business
- 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)
