Water companies were cast less as underperforming utilities than as firms asking the public to keep rewarding failure. Voters tied leaks to sewage, pollution, shortages and rising bills, treating dividends and bonuses as a test of accountability rather than a technical matter of corporate finance.
The floor’s most-respected Yes case linked missed leakage targets and environmental damage to a blunt conclusion: “it is intolerable to reward companies that are damaging the country”. Other Yes voices wanted executive pay frozen, dividends stopped and the companies brought under public control, though one offered a temporary brake — “only for one year, then small ones based on improvements”.
The No case was narrower and more financial. One voter warned that “Lots of pension funds rely on dividends”, while another said stopping them would “instantly bankrupt them” and leave the taxpayer with the recovery bill; the proposed alternative was to turn regulatory fines into equity and dilute investors. Yes argued from consequence and accountability, No from the risk of making the public pay twice.
That disagreement opened onto the larger question of privatisation itself. The chamber’s strongest ownership argument was stark — “The private ownership model has seriously failed here” — alongside calls to nationalise or mutualise the firms, let failed owners bear the loss, cancel debts and replace a regulator voters regarded as ineffective.
The room did not merely vote to withhold rewards; it voted to make payment conditional on repair. The unresolved question was whether that discipline belongs inside private ownership or points beyond it.
7 Opinions
Lots of pension funds rely on dividends. Maybe should split the question as bonuses should be
In any normal industry if a company fails the owners & bosses pay for the consequences. Let them go bust & then government can buy them back for pound! The Tories privatised the PUBLIC (that's a clue) utilities, simply because they saw them as a long term buisness opportunity! Yes they gave out public shares, BUT they knew they & their cronies would quite quickly buy them all up. Then the grift started.. Borrowing to pay outraged dividends & hiking prices for the public.
Just nationalise, or mutually, them The private ownership model has seriously failed here.
Over the past 10 years, £5m per day is paid out in bonus & dividends (£18.12bn) while leak reduction has not met targets. Sewage spills are at a rate of 1 EVERY 1.4 mins. Whilst we face such shortages, environmental damage & pollution, it is intolerable to reward companies that are damaging the country with such disregard.
Stopping dividends would instantly bankrupt them, as they couldn't satisfy their investment deals, that would leave the taxpayer paying for the recovery. Better to make their fines from the regulator paid in equity, and dilute their institutional investors, which would stop failing targets and getting fined being treated as a cost of doing business.
But only for one year, then small ones based on improvements.
Bonuses& dividends should stop and exec pay frozen until these co's are brought in under public control and they meet meaningful target around water management, sewage management, water security and resilience and waterway cleanliness. And get rid of offwat to as its useless. And cancel the debts.