Labour could have chosen the public interest over the profit motive, as it set about its promised reorganisation of the water industry in England and Wales. Polling last year showed a higher level of support for publicly owned water companies than railways. Yet while train companies are being renationalised as contracts expire, ministers ruled out a reversal of 1989’s water privatisation before they commissioned Sir Jon Cunliffe, a former central banker, to report on how they could improve this failing industry through tougher regulation.
This newspaper regrets that the question of ownership was taken off the table. Water is among the most precious of all natural resources and the pro‑market logic for the sell-off was bogus. In the absence of competition, regional monopolies were created and, in the decades since, businesses have enriched themselves while failing to fulfil their responsibilities. No other European government has followed suit in offloading vital infrastructure including pipes and reservoirs, and enabling investors to extract wealth by loading up balance sheets with debt.
