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| Q1 |
Has there been or will there be any review of:-
1) security in view of the recent rise in terrorist activity in England?
2) the long-term effects of climate change on security of supply such as flooding, drought and temperature changes?
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| Q2 |
I would welcome the Board's view on the adequacy of future water supplies vis-á-vis reservoirs and their opinion on having a national water grid with all other water suppliers.
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| Q3 |
In the view of the possibility of water shortages, has the Board considered approaching local authorities to utilise sea water supplies through desalination plants?
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| Q4 |
I should like to begin by stating that I have never belonged to any pressure group. However, I am concerned at the enforced addition of fluoride to our drinking water and believe that the possible consequential commercial risks have not been fully considered. Previous examples of commercial risk are thalidomide, mad cow disease, asbestos and tobacco which have resulted in major financial costs for the organisations involved. Recently there have been reports and research in the US which shows strong evidence that fluoride is, in some cases, a contributing factor to bone cancer. Many parents ensure their children brush their teeth regularly but it has been alleged that the lowest social economic groups do not as they are unable to afford the cost of toothpaste. However, there is anecdotal evidence that the children of such families do not drink water as part of their diet either directly or as tea or coffee. They prefer carbonated drinks, particularly the colas which have a very corrosive affect on the teeth. To be cynical, perhaps such drinks should, therefore, contain fluoride. One can of Coca Cola from Tesco in a pack of six costs £2.19 which equates to 36.5p per can, and a tube of value brand fluoride toothpaste from the same supermarket costs 21p. The drink lasts five minutes at most and is repeated many times a week, a tube of toothpaste lasts about a month hence the cost argument is fallacious. In view of the above, perhaps the Board would state as to whether they are acting under Government dictate. I trust that the water industry has not in effect been reduced to a group of Pavlovian poodles working at the Government's behest.
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| Q5 |
My question is also on the same issue raised by the last question. Is the Board aware that thanks to its collaboration with West Midland's health services in adjusting the natural fluoride content in water to its optimum level of one part per million, children in those parts of the region benefiting from fluoridation schemes continue to enjoy the lowest levels of tooth decay in the country with as many as seven or eight out of ten children in those areas having no tooth decay at all.
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| Q6 |
Is the Board aware that, according to opinion research conducted for the NHS by polling companies such as NOP, GALLUP and MORI over the past 25 years, between two thirds and three quarters of the general public support the fluoridation of water supplies to reduce tooth decay.
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| Q7 |
1) What percentage of domestic customers are now currently using water meters? What is the policy of the Board to encourage domestic customers to transfer to using water meters? What publicity does the Board intend to use to increase the use of the meters across consumers, both domestic and industrial?
2) Why has it taken so far 29 days for your authority to issue the bills for a meter reading in our part of Stourbridge taken on 28 June? I have endeavoured three times to catch your customer services; it's a tragedy nobody answers.
3) Assuming that the price of water will continue to increase, what notice will the Board give to all customers, especially those using domestic water meters of such increases. The price increase for the half year ending December was not notified to anybody in advance and I wait with trepidation, the bill when it arrives probably in August.
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| Q8 |
1) Would you please tell us how many pollution incidents have occurred in the last three years from Severn Trent waste water treatment centres? This wasn't answered last year so can you please answer it this year and provide figures? How many have been reported to the Environment Agency? How many incidents have not been reported to the Environment Agency and why not? Surely an environmentally friendly company should report all incidents.
2) Severn Trent has had a lot of bad press over the last two years. What are you doing about it to restore Severn Trent's reputation?
3) Last year, PricewaterhouseCoopers did not attend and give its reports to the AGM – why not?
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| Q9 |
In the interests of saving money and environmental friendliness, would the Company consider sending shareholders a consolidated tax voucher in respect of their dividends once a year?
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| Q10 |
I have been a shareholder in your Company for several years but last year was the first time I was able to come to your AGM at the NEC. I was able to talk to your predecessor, Sir David Arculus, and I posed him the question that my broker had said that I ought to sell my shares and what did he think of it and we raised one or two queries. The query on water - the fact that all the main drainage is in a very bad state of repair - not your fault as it's from hundreds of years ago - and that's going to cost a lot of money. There is a question of the deficits on the pension funds. There is also the question of the Ofwat determination. May I just say that we both agreed to keep on for another year and that has proved to be the correct decision; the share price according to my written notes in May 2004 was £8.17 and the mid-price last night was £9.80. In addition you have paid us a dividend so perhaps we did the right thing. Nevertheless the whole of the Stock Market has gone up so perhaps the share price ought to have gone up as well.
Regarding the Ofwat determination, you seem to have accepted that, but some bad publicity has been published. The Financial Mail on Sunday last week said "Severn Trent Finance Chief says he will quit as Regulator is told to speed up enquiry." It also says "Wilson is at the centre of the Ofwat allegations revealed by the Financial Mail last November" that the Company "massaged figures to trick Ofwat into allowing it to boost water bills." It says at the end of the article that the Company could face tough questioning on this issue at your AGM. I haven't heard anything yet but you never know. Perhaps it isn't important, the Financial Mail on Sunday has a circulation of some two million copies and perhaps you might like to take the opportunity, or Mr Wilson might like to take the opportunity, - is he quitting as a result of the Ofwat investigation?
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| Q11 |
1) Last year, four executives out of five resigned (80%), why did so many resign? Were they pushed? If so, why? The Board is put there by the shareholders to run the Company on their behalf and continuity is important; we are beginning to lose that continuity. I come along this morning; another executive director is going to resign. What is the cause of this rash of resignations? What is happening?
2) On page 1 of the Annual Report, I read that group profit before tax and exceptional items dropped by 4.4% and group turnover went up by 3.3%. So in spite of running hard we did not even stand still but went backwards. Furthermore, earnings per share dropped from 61.4 to 55.6 – a drop of 9.4%. A performance which earlier on today you did say was satisfactory. I would say that this is not an outstanding performance and is the second such result in three years. However, executive directors received bonuses of £819,000 including £394,000 for those who resigned. I'm sure they were paid correctly in accordance with the bonus scheme, therefore I question whether such a scheme which rewards poor performance is appropriate. Will you take urgent steps to revise this scheme so that it rewards only good or outstandingly good performance?
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| Q12 |
I congratulate you for appointing two ladies, one is a Non-Executive Director and the other one is a Director. You have now realised the importance of women in this country. They have played a major part in the World War when they were looking after our wounded soldiers and they were looking after the families. You realise that those people who were here are those people who have heard these stories and they have seen on the television their part in the War was excellent and without them we could not have won the war. That is one thing that you have realised, I am glad that you have appointed two ladies on your Board. That is very good news, you are now willing to do it and hope you will go on to do it. Number two, your appointment as the Chairman, Sir Egan, you have become the Chairman of this Board, I hope you will do well and we will support you in all respects. I also want to congratulate Martin Flower who became the Deputy Chairman, and I hope it is a launching pad to become Sir in the near future. Also, "Sir" Colin Matthews, I have met him, he is a very nice gentleman. If you speak to them they will satisfy all your requirements if you speak nicely to them. Third thing that I have seen is that there is a negative point though it is not that negative, that we have got diversity and we are rich. It is a small country but we have accommodated them and there is a richness of diversity and we welcome it and you have also to look that we have got such a big experience of newly educated people here in this country. You should take them as well in your Board, they are highly qualified and they are young people who have been brought up educated and also working for the nation. We must take pride in that they are doing so well and we should take them on our Board at appropriate times. I don't say that you should take the bad ones, you should take the best ones, they are the best.
Another thing that I have to say is that the time for the meeting is not appropriate for some of the people. It is appropriate for those people who come from the Birmingham area but it is not appropriate for those people who come from Nottingham, Dudley and other places. It is difficult for them to travel in the morning and there is so much traffic and more over, when they come here they are hungry and they can't do anything here, they are just sitting here waiting for the lunch time and we are just putting them here waiting for our question to finish and they want to rush to the dinner table. Yesterday we had a wonderful sumptuous dinner here and after the dinner we had quite a cordial meeting here. We should have this meeting at 12.00 after lunch, not before lunch so that they can travel and eat here and then they can have lunch and then they can sit for the meeting for a long time.
Finally, congratulations for those people who are the foot soldiers of your Company. I congratulate them and I appreciate their efforts. They came here before 9.00am, they arranged everything, they are the foot soldiers – without them we cannot run the Company. Last year they were given very little, this time I expect them to receive a gin and tonic and also bonuses because they are working hard, especially the language signers here. I congratulate the Board and the people who are listening to me very patiently, I hope they are waiting for the lunch now and I hope we get a sumptuous lunch.
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