You'll have to laugh
The water companies are apparently lobbying Ofwat for higher prices for their customers on the grounds that otherwise they cannot pay big enough dividends. Yes, I know I did say you’d have to laugh.
I suppose there are some shareholders who bought into the water industry expecting huge dividends and the ability to increase prices for ever, but it is to be hoped that those days are over. The industry has been milked dry, by foreign banks, hedge funds and the like and anyone with shares now has been left holding the baby.
Let us be clear, because I doubt very much whether Ofwat will be, the industry can pay dividends when the water is clean, leaks are under control, sewerage is kept in sewerage farms and new infrastructure has been built; and not before.
If the shareholders don’t like it they can give the shares to the government.
But it does say a lot about the entitlement of capitalism these days that they even think this is a reasonable argument. It helps explain why their bosses are still on huge salaries and bonuses.
They think capitalism is a one way street, because it has been for decades.
Well it isn’t.
From Jonty Bloom Media Ltd
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
But the pensioner whose pension funds is a shareholder. Nothing is that simple