Water firms could be let off pollution fines as part of government overhaul

"The environment secretary, Emma Reynolds, hailed the changes as once-in-a-generation reforms featuring tough oversight, real accountability and no more excuses. Campaigners called the proposed move to soften the approach to fines desperate, and said the government was letting companies off the hook. Under the plans, there would be a new turnaround regime to force companies that are failing, either financially or in terms of sewage pollution and water outages, to fix their problems faster. The government said this would give stability to investors."

"The Guardian understands the white paper, which will be published on Tuesday and was not made available to journalists in advance, will include provisions for the regulator to step in and manage fines so a company does not collapse. This could include deferring penalties, or letting the company off certain payments. A source at the Department for Environment, Food and Rural Affairs said the aim is for every water company to eventually pay their fines."

"Richard Benwell, CEO of Wildlife and Countryside Link, said: If a company is fined because it's done something wrong. It should either make restitution or the polluter should pay. He added: It sounds like a desperate play to be off the hook at the last minute, and companies should think about that when they are engaging in unlawful actions and failing in their public environmental interest duties."

Government proposals would let regulators manage or defer fines for water companies to prevent corporate collapse while requiring failing companies to fix sewage pollution, outages, or financial problems more rapidly. A new turnaround regime would force underperforming companies to improve operations and give investors greater stability. Provisions could include deferring penalties or waiving certain payments, with the stated aim that every company eventually pays fines. Thames Water has faced creditor pressure to be excused from future penalties after a £120m fine for sewage breaches. Campaigners argue that polluters should pay restitution and that easing fines undermines accountability.

Read at www.theguardian.com