Water, water everywhere
It tells you all you need to know about the complete scandalous mess of water privatisation that Thames Water has been bailed out by its owners with a £500 million loan, not fresh cash a loan. That it being run by the former head of Ofwat, its regulator, and that wants to increase water bills by 40% above inflation by 2030.
According to the FT the government has the company under a careful watch in case it goes bust and needs nationalising.
What happened to all the billions that Thames has been paid over the years, the huge debts it built up and the assets it inherited? The company and its owners have run circles around its regulators and the government and syphoned off all the money. This latest loan is charging 8% interest, 8% to a company that owns large swathes of London real estate and has an income stream that it can predict for years?
Apparently the loan is to an unregulated holding company that then gives the money to Thames Water, presumably leaving Ofwat powerless. But how did it allow Thames to be owned and run like this in the first place?
There is no point in an enquiry about what has gone wrong, this has all been perfectly legal. The state gave away a huge asset for pennies and the private sector made billions while the regulator looked on.
Meanwhile the far right libertarian loons will tell us that this is capitalism at work and nationalisation is a disaster.
A more practical view might be, monopolies which run essential services are too important to be run like this.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media