Defra Minister Steve Reed has told the House of Commons Environment, Food and Rural Affairs Committee that it is up to Thames Water to solve their issues of financial resilience and not for Government to tell a private company how to manage their finances.
Defra Minister Steve Reed has told the House of Commons Environment, Food and Rural Affairs Committee that it is up to Thames Water to solve their issues of financial resilience and not for Government to tell a private company how to manage their finances.
The comment comes in a letter dated 17th January from the Minister to Alistair Carmichael MP Chair of the EFRA Committee following his meeting with the Committee in November to discuss the work of the department. The letter is in response to questions subsequently raised by the Committee and additional information asked for during the session.
Commenting on the Committee’s request for the assessment Defra has made of the potential impact of the collapse of Thames Water on the public finances, and the steps the Department is taking to prepare, the letter says:
“Government and Ofwat are carefully monitoring the situation, and Ofwat is working closely with the company to strengthen their long-term financial resilience within the context of its licence and broader statutory obligations. The company remains stable.
“Customers need not be concerned about any increased disruption to their water supply or wastewater services because of the financial position of their water company. The provision of water and wastewater services will continue.
“It is for the company to solve their issues of financial resilience. It is not for Government to tell a private company how to manage their finances. Water companies are commercial entities, and it would be inappropriate to comment further on the specific situation of any individual company.”
Other issues addressed in Steve Redd’s wide-ranging letter include the aims for the aims for the Dan Corry review into Defra's regulators – he writes:
“Dan Corry is conducting an internal review on whether the inherited regulatory landscape is fit for purpose, and will develop recommendations to ensure that the Department’s regulation is driving economic growth while protecting the environment.
He is focussing on:
- whether Defra regulators are equipped to drive economic growth, secure private sector investment and protect the environment.
- the customer and stakeholder experience of regulation, including the impact on those who are regulated; and
- the efficiency of regulation, whether the current regulatory landscape involves any duplication and contradiction, and if there are opportunities to make improvements.
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