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3.6 Government intervention

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Question 1

Extract B

Aqua Anglia boss paid £1.1 million amid infrastructure disputes

The Chief Executive of Aqua Anglia, a private-sector water utility company facing persistent criticism for sewage discharges and infrastructure neglect, received £1.1 million in total compensation last year. This has intensified public calls for the nationalisation of the water industry and the imposition of a maximum wage cap for top executives in regulated utilities. In contrast, the average base salary for a field maintenance technician at Aqua Anglia is £31,200, although specialized drainage divers can earn up to £44,500.

Over the past year, service reliability has declined as the company attempted to resolve a tense industrial dispute involving potential strike action. Representative trade unions are strongly opposing the company's proposals to outsource emergency repair operations to third-party contractors and reduce crew sizes for underground maintenance, which unions argue will seriously compromise employee safety during lone-working procedures.

Question

Assess whether complete nationalisation of the water industry would protect its employees.

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3.6 Government intervention Questions

  1. A Level
  2. /Economics
  3. /3.6 Government intervention