plan for collapse of Thames Water

[Jack_green]

it cost 7.5bn to privatise all the water companies in 1989

This is how much money thames water paid out in dividends since then



literally one water company paid out almost as much dividends in 32 years as the whole sell off raised... I wonder how much thames water was privatised for, could have been as little as 500m-1billion right, what a massive earner that has been...

I wonder what the total combined dividends of all water companies in England and Wales has been since 1989

I bet its at least 50-100billion the treasury missed out on thanks to the tory privatisation of our services.

how is that good value for the tax payer? especially if we have to buy them back, then pick up the cost of under investment and decades of neglect

The guardian has some really good graphs about thames water

In charts: how privatisation drained Thames Water’s coffers

Decades of underinvestment and bumper dividends have left the firm debt-laden and under investigation

www.theguardian.com

I'll post the graphs to save people a click

Spoiler: Click me for images

Spoilered to keep the thread scroll friendly

I wonder how much cash they got from the government over the years.

Bust by summer.

 

[arknor]

I wonder how much cash they got from the government over the years.

What sticks out from the Guardian Graphs is.
The water companies were privatised in 1989
Thames water paid out 400mil in dividends during 1990....
It was then sold again in 2001 but during 96-99 it paid out well over 2 billion in dividends?
I wonder what happened in 2006/7
another massive dividend of over 600mil



It literally looks like it was undervalued and sold in 1989, asset stripped and the proceeds given as dividends.
Then a few years before they sell on the company they asset strip another 2 billion....

Capitalism just works

 

[Jack_green]

What sticks out from the Guardian Graphs is.
The water companies were privatised in 1989
Thames water paid out 400mil in dividends during 1990....
It was then sold again in 2001 but during 96-99 it paid out well over 2 billion in dividends?
I wonder what happened in 2006/7
another massive dividend of over 600mil



It literally looks like it was undervalued and sold in 1989, asset stripped and the proceeds given as dividends.
Then a few years before they sell on the company they asset strip another 2 billion....

Capitalism just works

Include all the land they sold off.

 

[jpaul]

Question is how the government prevents, looking on, investors in other water companies running for the hills and demanding exorbitant bond interest rates spiralling them into failure,
what would Kier Don Quixote do.

 

[b0rn2sk8]

Why would they do that?

They’d literally collapse the company that they have money in and inevitably lose some of it. You do come out with some nonsense sometimes.

 

[StriderX]

The board of Thames Water needs to be charged with sabotaging the country's infrastructure.

 

[jpaul]

Why would they do that?

They’d literally collapse the company that they have money in and inevitably lose some of it. You do come out with some nonsense sometimes.

keep -up ;
if the government, as suggested, leaves (thames) investors with 40% of their investment , what do you think happens for other marginal water companies tomorrow

 

[413x]

The entire Thames water is a great example of how useless our country is at managing core infrastructure.

I saw calls for 56pc bill increases. It's absolutely vile. Over here dwr cymru has its issues. But at least it's not for profit.

 

[smilertoo]

The UK government 'privatised' nearly everything, yet has been giving them all support ever since while they pay out divdends.

 

[GreatAuk]

The board of Thames Water needs to be charged with sabotaging the country's infrastructure.

What have they actually done wrong? The unsustainable dividends seem to have ended 7 years ago, and since then it's only been a matter of time before either the level of debt begins to spiral ending in bankruptcy or the regulator gives them permission to either reduce investment or increase prices significantly.

Basically all of the current board have been appointed much more recently than that.

 

[Jack_green]

The UK government 'privatised' nearly everything, yet has been giving them all support ever since while they pay out divdends.

That the other problem, privatisation was supposed to end tax payers support, provide cheap bills and increase efficiency.
None of that came true.

 

[arknor]

What have they actually done wrong? The unsustainable dividends seem to have ended 7 years ago

yea after the company was milked dry...

as you say unsustainable..... should never have been allowed to happen.

profits should have been capped at like 5%... supermarkets were doing 2-4% profits for decades fine.

They clearly won't invest in infrastructure and then we end up with sewage everywhere

 

[StriderX]

What have they actually done wrong? The unsustainable dividends seem to have ended 7 years ago, and since then it's only been a matter of time before either the level of debt begins to spiral ending in bankruptcy or the regulator gives them permission to either reduce investment or increase prices significantly.

Basically all of the current board have been appointed much more recently than that.

That they're merely holding the bag of prior malfeasance is irrelevant to me, the country's establishment is in desperate need of some forceful reminders that they're allegiance is to this country and not merely their pockets. Some public flogging may go a long way in reorganising their priorities.