Raising prices and asking for a hand out because dividends have been paid out is the same as to pay out, in the end.
plan for collapse of Thames Water
- Thread starter Mrwong
- Start date
Yup, but those in power etc don't care.
Make a profit? Keep it private.
Rack up a debt? Keep it public.
Nothing will change, they are all on the gravy train.
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Caporegime
Nothing will happen. It will get taken under state control then once made profitable again will be sold off to private investors at way undervalued shares.
Is it because of dividends? Despite what you think investors don't like losing money so running a business into the ground doesn't usually make much sense. Clearly more has happened here.
The principle investors clearly haven't lost any money, It's just been a vulture capitalist merry-go-round of bleeding the asset dry. The musics stopped and there is nothing left.
Except they generally haven't lost money have they?
Banks bailed out constantly, even car manufacturers have been saved from the fate they deserve and so naturally the vultures think they're invincible.
Soldato
It is, the combined debt of the privatised water companies is almost exactly the same as the combine dicidends paid since privatisation, no water company paying a dividend should be allowed to significantly increase bills doubly so if they are failing in their basic duties.
Soldato
I honestly despair. This country needs to just stop servicing investors and paying attention to the customers. It's beyond a joke now.
Thing is just shouting dividends shields the real culprits, the governments that have allowed this. Painting the investors as the bad guys is just such an easy deflection for those in power that nothing will change because of it.
Soldato
Yes, weak governments, weak regulators, weak licensing agreements are the primary fault.
BUT it's a close secondary that monopoly based privates companies (and seemingly share-holders) with a captive customer-base have operated a strategy which has ripped TW to shreds. There was a happy median here which allowed for both investment and conservative profits but nah let's milk it dead. It's pretty weird.
Soldato
Wow; that article is hilarious. On one hand it seems preposterous SWW can make such claims but then on the other what's the bet some legalese nonsense proscribed in EA owned or water-way licensing agreements does indeed absolve water companies of the responsibility for clean water-ways and outlets to sea!
Public has no right to swim in sea, claims firm that dumped sewage at bathing spot
As South West Water defends a court action from a Devon swimmer, it also claims it has no legal duty to keep waters cleaninews.co.uk
They are taking the
Almost exactly what capitalism is designed to do tbh. They've maximised returns for shareholders. Job done - don't blame a dog when it barks!
Soldato
Sounds like you should consider voting green. They want to nationalise utilities and clean up the seas and rivers.
Soldato
A somewhat subverted idea of capitalism if maximising profits at the expense of collapsing said company, when considering its monopoly is effectively a perpetuity of customers / profits. Then again, capitalism and monopolisation should not co-exist.
Why not both? Why are companies seen as a force of nature, free from the restraints of morality?
There’s multiple problems here - from the whole concept of privatising vital national infrastructure to yet another regulator with no real teeth to a company willing to destroy the infrastructure of a country to make a quick buck.
Define collapsing though - taps are still allowing water to flow through.
Public has no right to swim in sea, claims firm that dumped sewage at bathing spot
As South West Water defends a court action from a Devon swimmer, it also claims it has no legal duty to keep waters clean
They are taking the
Vile. I wish individuals involved in these company failures could be punished.
Seems a big issue to me the ceos etc get a pay off, and another job and never actually get hit for failure
Soldato
In spirit?
There's enough articles detailing the loans, debt and other malfeasance.