Agenda item
Motion A: Sewage pollution and Thames Water - Proposed by Councillor Lidia Arciszewska
In 2024 Thames Water discharged raw sewage from their storm overflow tanks into West Oxfordshire rivers for 27.4 thousand hours, that is a 25% increase on discharges in the previous year and on average 1,600 hours of spilling from each of the WO Sewage Treatment Works. [To put it in perspective 1,400 hrs is equivalent to about two months.] Year on year increasing levels of untreated sewage are being discharged. These spills take place following even slight rain, although TW have permits to discharge raw sewage ONLY under exceptional circumstances.
Consequently, the current ecological status of West Oxfordshire rivers is catastrophic. Once beautiful and bountiful with vibrant life our rivers are now murky, dull and lifeless.
Moreover, we have a number of perennial problem areas in the villages across West Oxfordshire, where sewage notoriously backs up the residents’ toilets, spills into their gardens, roads, public spaces and fields. All because the sewerage network is often overwhelmed following decades of underinvestment.
The Council has committed to reducing sewage pollution of our rivers and waterways and engaged with Thames Water during regular discussions. We have had some great successes. However, the problems with Thames Water are fundamental and their resolution is far above of what the local authority can do.
Since Thames Water was privatised in 1989, the company has enjoyed great profits, and paid their shareholders, 80% of whom are overseas, some handsome dividends. It has also been rewarding their CEOs with enormous salaries and bonuses. At the same time the company has been ‘sweating’ the assets and cutting down staff numbers. Moreover, it managed to accumulate £18bn in debts. With this amount of debt the company is in no position to make necessary investments to get our rivers clean. It is estimated that Thames Water needs about £23bn to bring its crumbling infrastructure to the required capacity. The lack of this infrastructure will hold back the ambitions of the government to build the homes that we need.
Thames Water is currently trying to get a further £3bn loan at an eye watering 9.75% interest and with hefty service charges. Just before Christmas OFWAT agreed for the company to increase its customers’ bills by 35% by 2030, though most of the increases will take place in the next couple of years. If TW get the loan, 46% of each customer bill payments will be funding Thames Water debt interest payments. This is not acceptable.
The only way out of the current impasse is for the Government to place Thames Water into a Special Administration Regime and consider moving it into a non-profit or community benefit company.
The Council resolves:
1. Ask the Council Leader to write to Secretary of State for Environment, Food and Rural Affairs, Steve Reed, to request that Thames Water be put into a Special Administration Regime and then moved to a non-profit corporation or community benefit company.
Minutes:
Cllr Arciszewska proposed the motion, as amended (and circulated in the supplementary pack) and with a minor alteration explained at the meeting to change the words “above of what the local authority can do” to “beyond the powers of the local authority”.
Councillor Rosie Pearson, seconded the motion as altered by the proposer, Councillor Pearson highlighted personal experiences with sewage issues in her local ward and felt that Thames Water had prioritised financial gain over improving and maintaining infrastructure, particularly in terms of outdated pipes.
The motion being proposed now read as follows:
“In 2024 Thames Water discharged raw sewage from their storm overflow tanks into West Oxfordshire rivers for 27.4 thousand hours, that is a 25% increase on discharges in the previous year and on average 1,600 hours of spilling from each of the WO Sewage Treatment Works. [To put it in perspective 1,400 hrs is equivalent to about two months.] Year on year increasing levels of untreated sewage are being discharged. These spills take place following even slight rain, although TW have permits to discharge raw sewage ONLY under exceptional circumstances.
Consequently, the current ecological status of West Oxfordshire rivers is catastrophic. Once beautiful and bountiful with vibrant life our rivers are now murky, dull and lifeless.
Moreover, we have a number of perennial problem areas in the villages across West Oxfordshire, where sewage notoriously backs up the residents’ toilets, spills into their gardens, roads, public spaces and fields. All because the sewerage network is often overwhelmed following decades of underinvestment.
The Council has committed to reducing sewage pollution of our rivers and waterways and engaged with Thames Water during regular discussions. We have had some great successes. However, the problems with Thames Water are fundamental and their resolution is far beyond the powers of the local authority.
Since Thames Water was privatised in 1989, the company has enjoyed great profits, and paid their shareholders, 80% of whom are overseas, some handsome dividends. It has also been rewarding their CEOs with enormous salaries and bonuses. At the same time the company has been ‘sweating’ the assets and cutting down staff numbers. Moreover, it managed to accumulate £18bn in debts. With this amount of debt the company is in no position to make necessary investments to get our rivers clean. It is estimated that Thames Water needs about £23bn to bring its crumbling infrastructure to the required capacity. The lack of this infrastructure will hold back the ambitions of the government to build the homes that we need.
Thames Water is currently trying to get a further £3bn loan at an eye watering 9.75% interest and with hefty service charges. Just before Christmas OFWAT agreed for the company to increase its customers’ bills by 35% by 2030, though most of the increases will take place in the next couple of years. If TW get the loan, 46% of each customer bill payments will be funding Thames Water debt interest payments. This is not acceptable.
The only way out of the current impasse is for the Government to place Thames Water into a Special Administration Regime.
The Council resolves to ask the Council Leader to write to Secretary of State for Environment, Food and Rural Affairs, Steve Reed, to request that Thames Water be put into a Special Administration Regime.”
In debating the item, the following points were raised by Members;
· The record of Thames Water was criticised, referencing issues with management of the organisation, as well as public safety and damage to the environment through discharging raw sewage into rivers.
· A member stated that the organisation should be brought into public ownership.
· The Member of Parliament for Witney had put forward amendments to the Water (Special Measures) Bill, which included measures such as pollution reduction but these had not been included in the bill. A new bill was excepted, and it was hoped that some of these ideas would be included. Campaigning work around this was also highlighted.
· Staff working for Thames Water had important expertise and were thanked for their good work, but the governance of the organisation was questioned. It was felt that taking the organisation into Special Administration would protect the environment.
· Residents were not provided with a choice of providers, so it was stated that the company functioned as a monopoly.
· The pricing of the lending being proposed by creditors indicated that the organisation was in probable collapse.
· The District’s health and wellbeing was a priority for the Council, the motion would ensure a sustainable future for the district. While the Council did not have direct power over the governance of Thames Water, it was felt it could influence Government to make change.
· The Council had held several meetings to negotiate with Thames Water but some members felt that this had not worked to resolve the matters raised through the debate.
· One Member highlighted that they did not think that the financial management of a private organisation was for a matter for the Government to interfere with.
· It was important to work on the issue of cleaner rivers on a cross-party basis.
The motion was put to a vote and was agreed by Council.
Resolved that:
1. The Council resolves to ask the Council Leader to write to Secretary of State for Environment, Food and Rural Affairs, Steve Reed, to request that Thames Water be put into a Special Administration Regime.
Voting record - For 44, against 0, abstentions 0, did not vote 1
Supporting documents: