WATER UK
Community benefits
‘Turbo-consumerism’ is implicated in the worst economic crisis for generations.
Barrie Clarke asks if it is time for a new definition of the consumer interest
M
any of Britain’s decision-makers are
in a funk about how to drag the
nation out of its economic hole.
There seem to be two camps. One – call them
pragmatists – want a return to growth, quickly.
The other – reformers – says it would be crazy
to go back to ways that have caused such
mayhem. Who should get the vote of public
service companies in general and water
companies in particular?
From most perspectives, this is easy. Long
recessions hurt people and the economy and
threaten democracy. The business of public
service, like all business, works best in stable
conditions. If the main need is swift action (and
it is) let us get on and do what it takes. The
pragmatists have it, and we can only hope that
quantitative easing, car scrappage and the other
interventions restore sustainable demand before
too much damage is done. And yet if you have
even slight misgivings about a rapid return to
‘business as usual’, one theme in the current
debate might interest you. It concerns links
between the crash, financial markets, and the
real economy and offers food for thought about
consumer policy. It goes like this. interest. The only focus now is individual need society, not the consumer. It is not an individual
met by low prices, cheap debt and shopping service and not easily included in the popular
Flawed economics therapy; in future it should be wider and definition of consumer interest.
The global collapse was caused by flawed include the value to individuals of community Perhaps it would be better to put more
economic policy as well as reckless financial activity and services. emphasis on the benefit to the individual of
doings. Differences of approach between the big Even as pragmatists, this version of events service provided to the community. This may be
economies led ‘creditor’ nations to invest in may make us think. Everyone in the community a big ask for the consumer lobby and politicians
securities created by banks in ‘debtor’ countries. has a citizen’s right to clean water, a right of a used to claiming that people have a right to
The flow of funds kept interest rates low and different order from consumer rights as normally more and more for less and less. Regulators may
economies humming. When the securities understood. Yet the way the service is presented have a different perspective, but whatever
proved insecure, the house came down. and promoted makes little of this difference. happens, the industry cannot do it alone. A
Confidence in the self-correcting capacity of Companies, regulators and government are determination by the whole sector to explain
‘efficient’ markets was shattered. The united in putting the consumer at the heart of better would be needed.
consequences were devastating – for finance but water service planning and investment. Short-term, pragmatism may win the day. But
also real-world goods and services. Customers pay, so this is right and should the issue is on the table. Last month, the
Loose interest rate policy caused a boom – continue, because despite big achievements, president-elect of the Institution of Civil
great for everyone who gained from above-trend there is more to do in customer service. Engineers explained how he saw the boom.
growth year after year, but politically almost “We’ve ended up in the last few years on a raft
impossible for the authorities to stop. Rampant Sovereign or divine of consumerism and neglected our basic
consumerism was implicated in the collapse. But while consumer rights may be sovereign infrastructure. The future is about providing
they are not divine. Post-crash this may make a infrastructure for a civilised society and that
Turbo-consumerism difference. The Consumer Council for Water is depends on things such as water supply,
On this analysis no wonder there is pressure for aware of the problem without, perhaps, wastewater treatment and drainage.” (2) ■■■
reform. What one writer calls ‘turbo- appreciating its implications. It asks why the bclarke@water.org.uk
consumerism’ is accused of everything from industry does not do more to explain how its
destroying communities and undermining customers’ money is used. The answer is that a 1) Neal Lawson, ‘All Consuming’, Penguin, 2009
democracy to trashing the environment (1). great deal is done, but the task is problematic 2) Professor Paul Jowitt, BBC R4, ‘The World This
There are calls for a new definition of consumer because much of the work is undertaken for Weekend’, 16 August 2009
22 Water & Wastewater Treatment September 2009