Thames Water has “withdrawn” plans to pay senior bosses large bonuses linked to the water company securing a £3 billion emergency loan, Environment Secretary Steve Reed has said.
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00:00Thames Water has spent much of the last few months subject to public outrage.
00:07They've been drowned in controversies from seeking permission to raise future water bills above what's been previously granted.
00:17They've been subject to pollution and environmental concerns and criticised for paying out immense bonuses to senior directors,
00:28all while they attempt to tackle a substantial £19 billion debt problem.
00:34The company was due to go bust in March, but was granted a last-minute £3 billion loan so it could continue operating.
00:46Thames Water plans to pay senior bosses further bonuses.
00:50This was set to amount to 50% of senior bosses' salaries, leading to them to get £1 million on top of their annual salaries and regular bonuses.
01:02However, these proposals have now been dropped after an Environment, Food and Rural Affairs Committee session with MPs on Tuesday.
01:12Downing Street said on Tuesday that Thames Water bosses should not be receiving bonuses.
01:21Environment Secretary Steve Reid said that Thames Water had been, quote-unquote,
01:27trying to circumvent upcoming rules that can ban water companies from paying bonuses
01:33by calling their bonuses something different so they continue to pay them.
01:39He added that it was the wrong thing to do.