WE MUST DEFEND OUR WATER.

Another great letter from Leah.

Thames Water is collapsing under a mountain of debt and the other nine English water companies are in similar hock.

English consumers pay the highest water charges, leaks are rife and waterways are full of excrement. Privatisation was sold to the public as an efficiency measure – you’ll pay less for better quality water. The government knew it was a lie. It was a multi-billion-pound wealth transfer from consumers to shareholders. 

Shares were priced well below value to guarantee a successful sale. People cashed out their profits and the firms were snapped up by private equity, institutional investors and large foreign infrastructure firms. Ever since, companies have been loaded with debt to enable large shareholder returns while investors have been exposed to minimal risk and a flaccid Ofwat passively watched. The FT admitted that privatisation was little more than an organised rip-off.^[1]

How did Scotland dodge this bullet? Over 90% of Scots opposed water privatisation. So, in March 1994, Strathclyde Regional Council organised the biggest council referendum ever held. People were asked, “Do you agree with the government’s proposal for the future of water and sewerage services?” Over 70% of eligible voters turned out and 97.2% said NO. The UK Government dared not proceed with less than 3% support. Scotland’s water stayed in public hands, which is why our water is cheaper and cleaner than England’s. 

But London got its revenge. The Tories abolished Strathclyde Regional Council in 1996, probably because it stood up to the UK government. 

Westminster is coming for our water again, just as it came for our oil and renewables. To stop the theft, the Scottish People must reclaim their voice and restore their sovereignty.

Yours sincerely,

Leah Gunn Barrett

SAD FACT

I have just learnt that on the day it was privatised Thames Water was debt free. It has now run up £14 billion worth of debt largely through dividends for shareholders and by paying huge bonuses to its executives.