Thames Tideway Tunnel

EDM number 1078 in 2012-13, proposed by Simon Hughes on 13/02/2013.
Categorised under the topics of Construction industry, Financial services, Taxation, Water and Water industry.

That this House notes the proposed increase of 80 in Thames Water bills indefinitely to fund the Thames Tideway Tunnel, which means a rise of 24 per cent in the current average water bill for Thames Water customers; further notes that the Government is considering underwriting the scheme, which will leave taxpayers liable for the risks of the tunnel construction; is concerned that Thames Water does not have the financial strength to finance the construction of the Thames Tideway Tunnel with its own resources; further notes that over the last five years Thames Water has paid dividends of 1.18 billion to its owners and that in the last two years dividends have exceeded profit, causing Thames Water to borrow money in order to pay out dividends; further notes that since being bought by the Macquarie Infrastructure Fund long-term debt in Thames Water has increased by 4 billion which has been used primarily to pay off debts owed by the holding companies rather than invest in the water and sewerage network; further notes that this increased borrowing has lowered Thames Water's tax liability so that the company has not paid corporation tax in two years; further notes that the Macquarie Infrastructure Fund which controls Thames Water is based in an offshore tax haven; believes that the taxpayer and Thames Water's 13 million customers should not pay for Thames Water's irresponsible financial management; and calls on the Government and Ofwat to require a substantial contribution from Thames Water's shareholders towards all measures to clean up the Thames.

This motion has been signed by a total of 10 MPs.