Paul Davies MP: speeches

Speeches

• 14 Sept 2026 · Water Sector: Public Ownership · Hansard source

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  I absolutely agree. Many of us are now customers of Thames Water; I have Yorkshire Water and Thames Water. I am sad to say that I have not been impressed as a customer with either, but what has happened to that gentleman is just not acceptable. There are practical steps that the Government can take now. One option is for the Department for Environment, Food and Rural Affairs to conduct a feasibility study of alternative models to ensure that public ownership has been given due, fair and full consideration. I understand that previously the Department has cited a total cost of £100 billion for full nationalisation, which it based on the regulatory capital value of the sector. However, that approach has been widely criticised as misleading for failing to represent the accurate market value of a company. For example, Thames Water’s RCV is more than £20 billion, yet the 2025 rescue bid from Kohlberg Kravis Roberts & Co., before it walked away, valued the equity at around £4 billion because the company’s debts had all but wiped out the value of the capital base. A feasibility study would provide full transparency and accuracy. It is also true that the Government face a more imminent crisis with the likely collapse of Thames Water. Here there are several options, including a special administration regime. Although that is technically a temporary form of nationalisation, it would allow the Government to test the waters for more far-reaching reform. Without an SAR water companies will know that, no matter how bad it gets, there is no real sanction. The credibility of the regulation will be fundamentally undermined. In the spirit of devolution we must strive for a water sector that is decentralised, democratic and that serves the interests of our communities. There are strong precedents for that. Some hon. Members may be familiar with the example of Berlin’s water utility, which was re-municipalised following a grassroots campaign in the early 2010s. That was driven by demands for greater transparency and accountability, issues that have already been raised several times in interventions in this debate. Today, Berlin’s water provision is managed by a 16-person board with eight shareholder representatives appointed by the state of Berlin and eight employee representatives elected through workforce representation mechanisms. International evidence shows that long-term democratic involvement in running our water sector is essential to rebuild trust and to secure stronger outcomes. It also has practical benefits. The cost of regulation will fall when information becomes open and transparent, and it will provide a lasting guarantee that water is run in the interests of the public, not those of the private sector. At its heart, this debate is about the right of the public to have their say over one of the most basic and essential services. If we are serious about setting a new political path, as the Prime Minister has said, we must heed the call of campaigners such as Ash and deliver a water system that is innovative and sustainable to underpin the essential infrastructure of our economy and the health of our nations. We must be brave in our approach. We need to look at history and the decisions of past Governments. We do not remember small-scale reforms or tinkering with a broken system. We remember those who had the courage to rewire the state and deliver lasting change. This Government now face that moment. They must choose whether to preserve a failed model or to deliver a system that is stronger and more accountable. The choice is clear: it is time to put water back into public ownership.

• 14 Sept 2026 · Water Sector: Public Ownership · Hansard source

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  Again, as I run through my speech, my hon. Friend will see the position that I am taking on public ownership. I absolutely agree that it beggars belief to see money being siphoned off from the water sector into private hands. As has already been mentioned, many shareholders are not even in the UK while our citizens are suffering badly. The £22 billion earmarked for shareholder returns alone would help address water poverty, which 1.8 million households faced between 2024-25. Look across the water: Paris took water back into public hands in 2010. Once that move was made, a range of social subsidies were introduced to help safeguard access to water for all. Crucially, public ownership is essential if we want to restore public trust. Last year, the Consumer Council for Water’s annual survey found that trust in the water sector had hit an all-time low. The high cost of bills, repeated violations of environmental standards and continued enrichment of company bosses has left the public disillusioned.

• 14 Sept 2026 · Water Sector: Public Ownership · Hansard source

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  I absolutely agree, and under this Government work has been taking place to ensure that we have control over our vital services in the UK. The Government are aware of the failures; their response so far has been to tighten regulation of the sector. In January, Ministers published a White Paper titled “A New Vision for Water”, which was broadly in line with the recommendations made by the Independent Water Commission, also known as the Cunliffe commission. The commission was tasked with establishing key changes to improve the water sector regulatory system, including the creation of a stronger integrated water regulator that is more streamlined and more closely embedded in the affairs of the water companies; regional planning systems; a new water ombudsman; a clearer national strategy through revamped strategic policy statements to regulators; and national targets.

• 14 Sept 2026 · Water Sector: Public Ownership · Hansard source

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  I absolutely agree. As a former councillor, I have sat on many planning committees and in many instances I was extremely frustrated by the lack of engagement or, where there was engagement, by it not being up to the standard needed. I believe the move into public ownership would help us resolve that. Regulation alone cannot fix the crisis of confidence and, as we all know, the Government’s ban on bonuses for water companies that fail to meet high standards has been widely bypassed, with reports indicating that bosses’ total pay actually increased in the past year. Even when under an intense spotlight from academics and campaigners such as Ash, the industry is willing to blatantly outwit regulation. To rebuild trust, the public must know for certain that their bills are being used to fund services, not profits.