Canada warns UK over Thames Water nationalisation plan

Summarised from 2 outlets · Updated 14 Oct, 13:03 · Archive

Canada has warned that nationalising Thames Water without compensation could threaten future foreign investment in the UK and undermine its reputation as a stable destination for overseas capital. The warning reflects concerns from Canadian officials about potential losses for international investors, with Ottawa cautioning that expropriation of privately owned assets without compensation could jeopardise further investment in the UK economy.

Thames Water serves about 16 million customers in England and is wrestling with £20 billion in debt while facing mounting public outrage over sewage spills. A consortium of more than 100 financial institutions, including the Royal Bank of Canada, has proposed a £16 billion rescue package that would involve writing off around a third of Thames Water's debt in exchange for ownership.

Canada's intervention is linked to concerns over Prime Minister Andy Burnham's stance on the private sector. Mr Burnham has pledged to 'end neo-liberalism' and reverse the privatisation and deregulation policies introduced under Margaret Thatcher. Mark Carney, former governor of the Bank of England, met the Prime Minister on a visit to Liverpool last month. Canadian pension funds and banks have invested tens of billions in UK infrastructure, including utilities, and many creditors fear that a government takeover could leave them with heavy losses.

How it is being reported

• Canada issues stark warning to UK over public ownership of Thames WaterCanada has issued a stark warning to the UK over the nationalisation of Thames Water.Oxford Mail · 14 Oct, 05:00
• Canada issues stark warning to UK over public ownership of Thames WaterCanada has issued a stark warning to the UK over the nationalisation of Thames Water.Oxfordshire Guardian · 14 Oct, 05:00

In this story: Canada · Thames Water · Andy Burnham · Mark Carney · Royal Bank of Canada · UK · Margaret Thatcher · Ottawa

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