WAR ON THE WATER RATS
Pledge to nationalise the industry, reduce bills & sack fatcat bosses
JOHN McDonnell yesterday vowed to axe greedy water bosses and plough profits back into the industry to slash soaring bills.
Outlining Labour’s bid to nationalise utilities, the Shadow Chancellor said: “We are ending the profiteering in dividends and vast executive salaries.”
JOHN McDonnell yesterday vowed to end the culture of greed in utility firms that rewards fatcat bosses while shafting staff and customers.
The Shadow Chancellor promised to privatise the industry and plough all profits back into it instead of lining the pockets of chief executives and shareholders.
Mr McDonnell’s first target in Labour’s war on profiteers was water companies, which paid out £18billion in dividends while bills have soared by 40% in real terms since privatisation in 1989.
He said highly paid bosses will be axed after nationalisation and their jobs advertised on much lower wages in a bid to bridge the growing pay gap between them and their workers.
With leader Jeremy Corbyn at his side, Mr McDonnell told Labour’s annual conference in Liverpool: “We are ending the profiteering in dividends, vast executive salaries, and excessive interest payments.
“Surpluses will be reinvested in water infrastructure and staff, or used to reduce bills. Real investment will allow the highest environmental standards.
“This would put this essential service back in the hands of local councils, workers and customers.
“Water bills have risen 40% in real terms since privatisation. Water companies receive more in tax credits than they pay in tax.
“Each day enough water to meet the needs of 20 million people is lost due to leakages.
“With figures like that, we can’t afford not to take them back.”
Shareholders in the existing private companies would be compensated with bonds.
STAGNATING
But payments could be slashed if there was evidence of asset-stripping, pension fund deficits or state subsidies.
The nationalised industry would be run by Regional Water Authorities made up of councillors and worker, consumer and environmental reps.
Campaign group We Own It welcomed Mr McDonnell’s vow. Director Cat Hobbs said: “The private water industry has got away with ripping us off for nearly 30 years. The game is up.”
Water UK insisted bills are “roughly where they were 20 years ago in real terms” despite the official 40% rise figure from the Office for National Statistics and stagnating wages.
A spokesman added: “Since privatisation, the water industry has invested around £150billion to improve services and it is planned to increase to £10billion a year.”
Mr McDonnell also set out plans for a Public and Community Ownership Unit in the Treasury to handle the planned nationalisation of water, energy, rail and mail.
He confirmed a bid to put workers on boards and to hand 10% of private firms’ equity to staff, who stand to make dividends of up to £500.
And bosses’ wages would be capped at a 20-to-one pay ratio between the highest and lowestearning staff in public bodies.
Mr McDonnell turned his sights on mega-rich tax-avoiding firms. He told them: “The game is over. We are coming for you.”