Thames recruits Labour peer as chair designate

(by Karma Loveday)

Lord John Hutton would chair the Thames Water board, if the London & Valley Water Consortium acquisition and recapitalisation is allowed to proceed.

Mike McTighe, who has been leading the recapitalisation proposal, would be vice-chair and would play a hands-on role in the operational transformation, including chairing a new Thames Water Turnaround Committee. The announcements followed earlier outline board appointments for a revamped Thames.

Lord Hutton served as MP for Barrow and Furness from 1992 to 2010, holding several Cabinet positions under Tony Blair and Gordon Brown, including secretary of state for work and pensions, business and defence. After leaving public office, he led the 2011 Independent Public Service Pensions Commission, and subsequently chaired major industry bodies including the Nuclear Industry Association, Energy UK and Make UK. He has held key board and advisory positions across the energy, defence and infrastructure sectors, including as chair of the Association of Infrastructure Investors, chair of London Luton Airport, and non-executive Director of Scottish Power Energy Networks. 

In his capacity as Thames chair, Lord Hutton would oversee a ten-year turnaround, at least £10bn of new capital, and the running of the company like a PLC from day one – with the ambition to return the company to the London Stock Exchange once the turnaround has taken effect.

There has been no further detail on the Government’s plans for Thames. Last week, The Guardian reported that prime minister Andy Burnham had asked officials for “more radical options” for the firm, given it will act as a key test of his public control of essentials pledge. These options reportedly include those that would involve public money and going to court.