In an electronic mail despatched to different utility CEOs which she describes as “sensitive” and “highly confidential”, the £4 million a 12 months Garfield asks them to hitch an “off-the-record roundtable” with Will Hutton, the Observer journalist finest recognized for books vital of capitalism together with The State We’re In.
Her transfer comes as water firms face the specter of being re-nationalised, a long time after they had been privatised as one among Margaret Thatcher ’s free market reforms.
She writes: “Whilst it is clear Labour will not include nationalisation in its next manifesto, they are also not keen on entering into the election race championing the status quo. The leadership thinks there is room for improvement and, politically, there is significant pressure to ‘do something’ about utilities.”
She provides: “One idea we believe might be attractive to the Labour leadership is re-purposing utilities and utility networks into a new breed of declared social purpose companies – companies that remain privately owned, who absolutely can (and should) make a profit, but ones that also have a special duty to take a long-term view.”
Garfield, one among a handful of feminine bosses of FTSE 100 firms, warns her colleagues: “The Labour leadership is aware we are soft testing various ideas but have asked us to keep it highly confidential so please don’t forward this email.”
Ministers are already discussing plans to grab management of Thames Water within the wake of intense criticism over fears of a monetary collapse that noticed the abrupt exit this week of CEO Sarah Bentley. Utility bosses are involved that others might be subsequent.
Garfield says that utility sectors akin to water, vitality and telecoms, ought to have “clear social purpose” whereas remaining extremely worthwhile.
Bills for all utilities have soared these days. Garfield takes a swipe at former PM Liz Truss within the electronic mail: “The UK is entering a period of heavy investment in infrastructure (£650bn over the next 10 years, according to some reports) and the last thing we want to do is push-up (Truss-style) the cost of investment.”
On Labour, she says her new taskforce ought to, “Seek to ensure that any manifesto commitment emphasises the importance of independent economic regulation, something to which investors attach huge weight”.
Not the entire CEOs she contacted are supportive of her plans. One mentioned bluntly, “this is not our problem, it is hers”.
Severn Trent has been approached for remark.
Severn Trent is among the largest water firms within the UK, supplying almost 5 million houses. It has 7000 employees and a inventory market worth of £6.5 billion.
The agency has reported sturdy income this 12 months however admitted it ought to have given sewage leaks “much more attention and acted faster”.
Read the textual content of the complete electronic mail beneath
