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The Independent UK
The Independent UK
National
Rebecca Speare-Cole

Independent water commission chair denies probe into reforms is ‘tinkering’

The Independent Water Commission is tasked to carry out the largest review of the sector since privatisation (PA) - (PA Wire)

The chair of the Independent Water Commission has defended his ongoing probe into the water sector reforms.

Sir Jon Cunliffe addressed recent criticism that he has been “tinkering” with the industry’s deep-rooted issues as he was quizzed by MPs on Tuesday.

The Independent Water Commission was tasked by the UK and Welsh governments to carry out the largest review of the sector since privatisation in the face of widespread public anger over pollution, bills and bosses’ bonuses although ministers ruled out nationalising water companies.

The final report is expected in mid-July but earlier this month, the commission published an interim report which said the industry needs a “fundamental reset”.

But this initial paper was criticised for not going far enough to deliver recommendations that would engender a complete industry overhaul.

The Government outlined the scope of the probe to focus on what changes could be made within the current privatised regulated ownership model rather than considering a wholesale shift to other models such as not-for-profit or nationalisation.

Giles Bristow, chief executive of Surfers Against Sewage, said the interim report was tinkering around the edges and he called for the commission’s final recommendations to “end pollution for profit” as well as “reshape the water industry to put public health and environment first”.

Asked by MPs if the review is “tinkering” given the broken culture found across the sector, Sir Jon said: “No I don’t accept it at all. I just don’t, I’m sorry.

“First of all, you wouldn’t expect me to think, to accept, that this was a report that was tinkering.

“But just moving past that… I do not think the problems you see in the culture of the water companies that you’ve identified, and the problems we’ve seen in performance, are the inevitable consequence of the ownership model that we have.”

Sir Jon continued to say the commission will look at other ownership models, such as not-for-profit, and make recommendations where companies are feasibly able to make a transition without public spending.

Challenged on how he can assure MPs he will look at other models of ownership given the current failures, he said the commission could do so only in certain circumstances.

“But what we won’t do is say: ‘We need to move the whole sector to a different model’ for two reasons,” he said.

Sir Jon outlined that he is not sure how the sector can do this without large public spending to buy the assets but also that he has not found a “strong correlation” between models and outcomes.

“It’s not tinkering, it’s trying to be evidence-based,” he said.

His comments come after the Environment, Food and Rural Affairs Committee released its own report into the sector on Tuesday morning, which concluded the industry is “failing” while water firms are “deaf to the crisis” it is facing.

The MPs also argued the Government “should feel able to use its temporary nationalisation powers” when needed.

Sir Jon was also questioned about criticism that the review is not truly independent from the Government due to Environment Department staff helping to carry out the work.

In response, he said: “I’d like to put this on the record, if I can chair.

“I’ve been given a secretariat of high-quality Defra officials.

“I have not felt in any way that I am being channelled down any particular route outside of my terms of reference and I’d also say that they are incredibly hard-working, and they are in seeker after truth mode.”

He added that while the commission has had to draw on some departmental expertise, the recommendations “will be my own”.

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