The water industry shows how the state indulges corporations to the detriment of society. By Prem Sika*.
Since 1989, water companies have been the subject of over 1,100 criminal convictions, but governments are content for them to control the industry.
Anyone trying to understand how the state indulges corporations to the detriment of society need look no further than the water industry in England and Wales. This poster-child of predatory capitalism routinely dumps raw sewage in rivers, seas and lakes; creating health hazards, destroying marine life and biodiversity. Shareholders profited by £380 for every hour of sewage dumping in 2023.
Successive governments have permitted companies to fleece people. Customers’ bills have risen by over 363% since privatisation in 1989. No new reservoirs have been built since 1989 and investment in ramshackle infrastructure has been neglected. The companies have paid over £85bn in dividends since privatisation in 1989, and run up debts of over £70bn. Around 35p in every pound of customer bills goes on interest and shareholder dividends.
* Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward.
