"I need more debt to sort out my debt pile."
FFS! This is beyond just the company it extends to those who enable them.
The analogy of a leaky bath which is leaking faster than the taps can fill it is all too apt. I suppose they are banking on the 'too big to be allowed to fail' gambit, plus a government not wanting to have to finance all the repairs and infrastructure stuff that privatisation was supposed to deliver.
To me, we (water customers) are going to be paying for the infrastructure either through direct water bills or through general Government tatxation. Investors will want to be repaid with interest and only way Water Companies have to get money to repay them is from us.plus a government not wanting to have to finance all the repairs and infrastructure stuff that privatisation was supposed to deliver.
To me, we (water customers) are going to be paying for the infrastructure either through direct water bills or through general Government tatxation. Investors will want to be repaid with interest and only way Water Companies have to get money to repay them is from us.
Government can borrow money far far cheaper than Water Companies (far far lower risk of default) so it would probably cost us less in the long term if these companies are re-nationalised. Plus we could be more confident our money will not be passed to senior staff who caused this massive failure yet seem to still get unbelievable bonuses.
Whilst I agree at the same time our unfit for purpose economic system is no excuse for destroying our environment, turning our rivers into open sewers, loading us all with massive indirect debt we will ultimately have to pay-off with massive interest - the debt and interest of the Water Companies that can only be paid off from us consumer and our water bills.Yeah, but then the screwed-up nature of financial reporting is that even though that would be cheaper, the incentive is to keep all this capital stuff off government figures, hence all the crap about PFIs etc.
Whilst I agree at the same time our unfit for purpose economic system is no excuse for destroying our environment, turning our rivers into open sewers, loading us all with massive indirect debt we will ultimately have to pay-off with massive interest - the debt and interest of the Water Companies that can only be paid off from us consumer and our water bills.
Think the biggest advantage of goverment ownership or "private ownership with limits modeled after the dutch Water companies i spoke about before is that there are no investors who het promised unrealistic profits/payouts or mother companies that pull all the money out. It would just be an basic water company preferably with limits to what his top staff may earn as well.To me, we (water customers) are going to be paying for the infrastructure either through direct water bills or through general Government tatxation. Investors will want to be repaid with interest and only way Water Companies have to get money to repay them is from us.
Government can borrow money far far cheaper than Water Companies (far far lower risk of default) so it would probably cost us less in the long term if these companies are re-nationalised. Plus we could be more confident our money will not be passed to senior staff who caused this massive failure yet seem to still get unbelievable bonuses.