Speeches by Gardiner.

“The additional cost that you are factoring in will come from the fines the Environment Agency levies against you for those additional inspections that they have promised to fulfil.”

“That is what I was asking.”

“How much is that assessment of the additional penalties from the EA?”

“If you can write to us on that, thank you. The revised regulatory business plan that you are developing requires a reduction in penalties from Ofwat, does it not?”

“If Ofwat refuses to reduce those penalties, is the equity investment still on the table from KKR?”

“If not, will it be too late to go back to the other potential investors that you have excluded from the process, or would it result in a special administration regime?”

“Are they? Are the others still there? Are they still keen and showing interest?”

“In fact, under the new Water (Special Measures) Bill they have the right to recover that and to make sure it is not the public that are paying the bill. The High Court judge said that he might have refused to sanction the plan from the outset if the, “Eye-watering level of the adviser’s fees had been clear up front.” W…”

“Why do you think the judge said that he might have refused to sanction the plan from the outset if he had known those costs were so high?”

“No, I do not think he did because as you say, Sir Adrian, he had perused all the data by this stage and then he came to a conclusion that actually he would not have gone down that road had he realised that at the beginning. That is what he said.”

“It rather suggests that he believed that so much money, so much money, could have been being spent in, let us call it more productive ways, directly addressing the concerns.”

“Indeed. What was the purpose of the Civil Immunity Clause in the original loan agreement?”

“Why was there a Civil Immunity Clause in the original loan agreement? Do you have to write to us on that one also?”

“Will you have to write to us on that one also?”

“No. She was talking about the board as well, you know that.”

“More specifically about you three.”

“I am sure Hansard will tell us who is right.”

“Could I make a mention of my Register of Members’ Financial Interests? Sir Adrian, we have crossed swords before.”

“Indeed. I do not want to incur the wrath of the Chair, so I have formulated my questions to you in such a way that they do not demand an explanation; they only demand an answer, and usually that answer can be either one word or a very short sentence. So let us see what I can do to oblige.”

“That is why I have tried to do it that way, Chair. The £3 billion of debt funding that you arranged is in two tranches of £1.5 billion, is it not?”