‘Morally bankrupt’ Yorkshire Water bosses must go, says Tom Gordon MP, as pollution soars and offshore payments continue

Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough, has renewed his call for Yorkshire Water chief executive Nicola Shaw to resign after the company’s annual report, published earlier this week, revealed a sharp rise in pollution and fresh offshore payments to senior executives.

The report shows pollution incidents rose by 72 per cent in twelve months, from 151 to 260. The company has incurred £88.8m in penalties from Ofwat for missing performance targets and expects to be downgraded by the Environment Agency to a one-star rating, the lowest possible, in October.

Despite this record, the accounts confirm Ms Shaw has received a further payment from Yorkshire Water’s Jersey-registered parent company, Kelda Holdings, on top of her Yorkshire Water remuneration. They also reveal that chief financial officer Martin Gee and his predecessor Paul Inman have received six-figure sums from Kelda.

Ms Shaw and Mr Gee declined six-figure bonuses this year - payments which would in any case have been caught by the Government’s bonus ban once the Environment Agency’s one-star rating is confirmed. Meanwhile, the company paid £81m in dividends to its foreign shareholders as its debt passed £7.5bn and revenues rose to £1.6bn on the back of higher customer bills.

Tom Gordon MP said:

“This latest report confirms what the people of Yorkshire have known for years:  Yorkshire Water are morally bankrupt.

“Pollution incidents up 72 per cent in a single year, £88.8m in penalties from Ofwat, and a one-star rating from the Environment Agency on the way - yet the company still found millions in dividends for its foreign shareholders all while debt soared and customers’ bills went up.

“And the offshore payments continue, with it now confirmed Jersey-based Kelda Holdings made similar payments to finance chiefs too. To the public these appear to be bonuses by the back door.

“I have already called on Nicola Shaw to resign, and every page of this report strengthens that case. She should go – and if she won’t, Ofwat must take another look at these Kelda payments. Yorkshire deserves so much better.”