What to think?
I am in a situation that regular readers may be shocked by, I cannot make up my mind.
Thames Water has received an offer from Suez and Covalis Capital, an investor in infrastructure, with the UK government holding a golden share.
The idea is that Suez, the French water giant might actually be able to run a water company, which seems to be beyond many British managers and companies.
But the plan is also to sell off parts of the business before floating the rump of Thames on the Stock Exchange. This smells suspiciously like asset stripping a struggling business.
I am always amazed at the ability of City whizz kids to earn millions for creating huge companies and then get paid even more for splitting them up or bailing them out. And let’s face it people don’t invest in company’s like Thames if they don’t think there is a killing to be made somewhere, even though billions have been stripped out of it already.
I would have more faith in the outcome if I thought Ofwat had the ability to analyse this deal properly, but its track record tells me it was captured by the industry years ago and just doesn’t have the resources or strength to investigate what is going on and decide whether it is in the public’s interest or not.
So it is down to the government which would probably like a plausible solution that doesn’t involve it lending Thames billions from its coffers.
Which means I probably think we are going to get stitched up again, always a safe default decision when talking about British utilities, although I am happy to be proved wrong.
From Jonty Bloom Media Ltd
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
I am astounded! But I can understand your dilemma.
Personally, I detect a decomposing rat. Thatcherite privatization has been an economic disaster surpassed, possibly, only by Brexit.
Water, and other monopolistic utilities, have to be repatriated where necessary, and brought back into some kind of public ownership. There is no rational case for allowing their takeover by yet another offshore enterprise.
The main selling point in the privatisation of public utilities and services was essentially, "get more and better for less". And buy shares in the privatised companies to become owners.
In essence it wasn't dissimilar to the Brexit selling points of, "unleashing UK's potential" and "broad sunny uplands" as a result of a "bonfire of red tape" and ceasing UK's contribution to the EU budget. Then we will regain our sovereignty and control over our borders.
Basically, something for nothing along with gaining ownership and control of something that we already owned and controlled anyway.
Are the UK public and political class ever going to learn that "something for nothing" invariably costs a damn sight more than if you just pay to fund it properly up front.
For all our UK sense of entitlement and self-proclaimed superiority over the "Johnny Foreigners" across the Channel, we are champion suckers for this repeated "something for nothing" scam.