As long as the shareholders don't suffer.

[Psamathe]

Interesting report. Government keep claiming it too expensive to nationalise the water companies but sounds like that might not be the case

Public ownership of England’s water companies could cost close to zero, says thinktank
Exclusive: Common Wealth report argues debt, pollution and underinvestment justify process known as special administration
...
Writing for the thinktank, Ewan McGaughey, professor of law at King’s College London, said that while a figure of £99bn was commonly cited as the cost of taking over the industry in England, this was based on an estimate from a thinktank paid for by water companies.
...
It goes on to say that when debt levels of water companies are taken into account, for example Thames Water is about £20bn in debt, it would be possible for the government to argue that their appropriate value in law was notably less, even close to zero.
...

Ian

 

[C R]

Interesting report. Government keep claiming it too expensive to nationalise the water companies but sounds like that might not be the case

Ian

You misunderstand, it is too expensive for the VCs, they may have to go without two of their fortnightly holidays.

 

[Psamathe]

Creditors prepared tio invest but

Creditors admitted their plan hinges on a considerable leniency from Ofwat, the government’s water regulator for England and Wales, over future fines for environmental failings.

The creditors have requested that Ofwat set Thames Water lower environmental standards – and even for it to let the water company off without fines for past breaches of its licences and permits.
(from https://www.theguardian.com/busines...r-up-5bn-as-part-of-emergency-turnaround-plan)

(My bold)
To me this beggars belief. I think the only viable way forward is full public ownership. We're paying for it anyway so why not own it and operate it as a utility rather than a source of profits/dividends.

Ian

 

[icowden]

To me this beggars belief. I think the only viable way forward is full public ownership. We're paying for it anyway so why not own it and operate it as a utility rather than a source of profits/dividends.

Agreed. There is very strong evidence that the current regime just allows foreign companies to extract all of the taxpayers money. UK water companies all have £bns of debt because the value was extracted by parent companies in the form of dividends. Thames Water has a £14.3bn debt but has paid out £7.2bn in dividends .

https://www.theguardian.com/busines...w-privatisation-drained-thames-waters-coffers

Govt should nationalise and tell the owning company they can keep the debt.

 

[Psamathe]

Govt should nationalise and tell the owning company they can keep the debt.

My thought was to fine them maximum amount for every illegal violation until they are bankrupt they buy the now worthless company for 1p. But even doing it by maybe more reputable means it still looks like it won't cost much (see above Yesterday at 11:19. But Labour seem determined to use the valuations as presented by the Water Companies themselves and no surprise, that's a lot of money. No idea why Labour are so ready to listen to vested interests and paid lobbyists rather than independent experts (maybe because independent experts don't hand them free concert or football tickets, buy them clothes, etc.?)

Ian

 

[icowden]

No idea why Labour are so ready to listen to vested interests and paid lobbyists rather than independent experts (maybe because independent experts don't hand them free concert or football tickets, buy them clothes, etc.?)

They do seem to have forgotten that they are the party that is supposed to not engage with lobbyists and nationalise things without caring about the private companies.

 

[Ian H]

I'd be happy for Starmer to be dragged, kicking and screaming, down the nationalisation route