Don’t turn your backs on positive relationships, water industry tells banks
Posted: Monday 30th March 2009
This is no time for bankers to hold back on relationships that have long proved their worth to water investors and customers, Water UK said recently.
Speaking to an audience of investors, regulators and senior industry personnel, Water UK Chief Executive Pamela Taylor said: "Companies have spent years building excellent working relationships with the banks. What we need at this point is banks willing to lend to this sector, not holding back on the relationship. My message today is clear – if you want our long-term successful relationships to continue, make sure that you deliver."
In a wide-ranging speech, Pamela Taylor also called on government and water regulators to remember the true purpose of regulation: to ensure that customers get the right service, at the right price, through the right mix of incentives.
"Now the pressure is on, government and regulators might be tempted to forget this, for example, by taking an aggressive attitude to company price proposals; emphasising sticks more than carrots; or putting a disproportionate effort into freeing up markets, when many are asking if freer markets are automatically better in every situation."
Pamela Taylor proposed a 'back to basics' strategy for the industry based on recognising that customers and investors have a common interest in ensuring long-term certainty for investment in what really matters: the quality and resilience of the service.
"This is a strategy which I hope everyone will support. It can take us out of the downturn in shape to support a reviving economy and give the sector the sustainable future it wants and the country needs."
