London Assembly Green Party Member
12 October 2006
Water sale opposed
Responding to news that Thames Water has been taken over by the company Macquarie for around £8billion, Darren Johnson, a London Assembly Green Party member said:
"Londoners are faced with more uncertainty over the capital's water supply following the sale of Thames Water. What are the new company's attitudes to the investment needed to tackle leakages, conserve water and stop raw sewage being dumped in the Thames? We have absolutely no idea. What we can be sure of is that, once again, the demands of shareholders will come before the needs of customers and the needs of the environment. Rather than let the new owners take control it's time for Thames Water to be brought back into public ownership, properly accountable to Londoners through the GLA."
Notes to Editors
1) A group led by Australian investment bank Macquarie Bank Ltd. won the battle to buy utility Thames Water for 4.8 billion pounds. The deal for Thames, owned by German utility RWE AG, runs to 8 billion pounds including the assumption of 3.2 billion pounds of net debt.
2) Last year Thames Water put up its profits by 21%, before reporting a surge in profits of 31%, it also announced it was to cut 25% of its staff.
3) Between 2000 and 2003 £500m in profits were taken out of Thames Water by the parent company RWE.