Neo-liberalism is the all-powerful but questionable belief that self-serving men, competing against each other for filthy lucre, unrestrained by any external force outside of the market, and totally unregulated, will lead to the best of all possible worlds.
Privatisation is the handmaiden of neoliberalism.
Only two countries, Chile and England & Wales, have privatised their water industries.
Privatisation has clearly failed in the case of water.
The crucial proof of this is that since going private in 1991, the 12 water companies in England and Wales have built up debts of £60billion, while they have handed out something like £56-78billion to their shareholders. This is not a brilliant, not even a clever, business plan. It is a worthless business plan, worthy of Donald Trump on a bad day.
Meanwhile, the work of the Water Companies, their responsibility to treat sewage before it reaches the environment, is failing. There was a certain amount of improvement in water quality until 2012-2015, but now water quality changes are static or getting worse.
Meanwhile water bills are increasing. About 30% of the average bill is to pay the company’s debts, and another 20% goes to pay shareholders. Some of the 50% remaining is there, rightly and legitimately, to pay for the services rendered in supplying clean drinkable water, and removing and treating sewage. A small amount, ostensibly the latest increase granted by Ofwat, is to pay for infrastructure improvements, for improvements to ancient, leaking pipes, and for separation of water presently carried in Combined Sewer Outfalls.
Water bills should be to pay for services rendered. The massive infrastructure changes should be paid for by general taxation, and by wealth taxes imposed on the super-rich.
If we aim to improve water quality, Step One depends on de-privatising the water industry. How it is done, whether through mutuals, or non-profits, or nationalisation, is a matter for constructive discussion, but water must be taken back into public ownership.
Privatisation of water must end, and neoliberalism must be rolled back.