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S. E. A. Statements

Water privatisation will lead to more poverty

Thursday 12th August 2004

  The Socialist Environmental Alliance has condemned plans, announced this week by Minister John Spellar, to privatise water and sewerage services and make them self-financing by 2008/09. The SEA says "the Minister's statement is very misleading. Only when you read the small print do you realise that this Government Owned Company, or GoCo, is in fact privatisation.  The company will be set up the same as any company, with all or most of the shares owned by the government. But the shares can be sold off to private companies whenever it suits the government, without any need for further legislation. 

Indeed, the Minister says that he intends to investigate the role that the private sector can play in the new water company which, he says, will "help deliver value for money in the delivery and financing of services, and to 'reduce the level of charges borne by customers'.

SEA spokesperson, Colm Bryce, says "all the evidence from England is that the involvement of the private sector pushes up the level of charges, since the private sector is only interested in profit. Meanwhile, over 700 jobs will be lost to the public sector. Workers whose jobs have been privatised will know what that means ­ worse wages and working conditions and lower pensions on retirement.

The SEA claim that the result will be widespread water poverty.  "Across England, Scotland and Wales, water charges have risen so that those living on low incomes have to spend as much as 15 percent of their income on water. Given the low level of wages and benefits in the North of Ireland, that is a frightening prospect", said Mr. Bryce.

"Last year at Westminster, the Dept. of Environment, Food and Rural Affairs revealed that almost one in five households owe money to water companies. A letter from Minister Spellar, leaked to the papers in June, said that those on benefits here will be given a 25 percent reduction on their water charges. That will still amount to £6 or £8 a week that people will have to find from their benefits. Many more children going to bed hungry in order to pay for water," claimed the SEA spokesperson.  

"We are already paying for our water through the rates. The SEA will continue to oppose the introduction of this double tax on water. We are involved in the Don't Pay, Won't Pay campaign and urge all our supporters to refuse to pay for water twice and to resist further privatisation of our public services.





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