Thames Water

[ks.234]

The imminent collapse of Thames water is yet another example of the failure of Privatisation.

Not just Thames

How many more examples of a failed policy will be needed before we get a different policy?

 

[farfromthesun]

It’s insane. I read they borrowed £52bn and paid out £70bn + in dividends whilst polluting our waterways.

 

[alanbeeb]

https://www.theguardian.com/environ...c-anger-could-finally-sink-uk-water-companies

What the actual ****. They borrowed money to pay dividends and bonuses. Not from profits, but BORROWED money! What sort of business model is that? Absolute madness. I cannot believe this happened in a country that supposedly has functioning government and business regulation.

But it did.

 

[Ellenor]

I'm disgusted. There should be jail sentences dished out for these fraudsters but it won't happen

 

[ks.234]

It’s insane. I read they borrowed £52bn and paid out £70bn + in dividends whilst polluting our waterways.

Yes. Totally immoral

 

[flatpopely]

It’s insane. I read they borrowed £52bn and paid out £70bn + in dividends whilst polluting our waterways.

Dividends are illegal if the company is not in profit.

 

[paulfromcamden]

Macquarie loading Thames Water up with debt and paying it to themselves as divis is classic asset stripping.

And they paid sod all corporation tax while they were doing it.

I see it's going into 'temporary' public administration any day now. I'm guessing there will be an almighty bailout shortly afterwards - no one is going to buy a company that f*cked unless it's billions of debt are written off.

My guess is once it's finances are sorted at our expense it will be sold of for pennies to another bunch of crooks and we start all over again.

 

[notaclue]

It’s insane. I read they borrowed £52bn and paid out £70bn + in dividends whilst polluting our waterways.

Also insane how little coverage this massive issue has received in the media before today.

Perhaps if Meghan and Harry had taken a ill-judged submarine trip in a Thames Water reservoir we might have had some coverage...

 

[droodzilla]

Dividends are illegal if the company is not in profit.

Irrelevant. A company with a shitload of debt can still make a profit (for a while, at least).

 

[Ponty]

And they paid sod all corporation tax while they were doing it.

Firstly, I agree it’s scandalous. WTF were the regulators doing? To pay divs, you first have to make profit and pay CT on that profit.

 

[flatpopely]

Irrelevant. A company with a shitload of debt can still make a profit (for a while, at least).

I think my statement was quite clear.

 

[droodzilla]

I think my statement was quite clear.

It was, but I fail to see its relevance to the post before it, and to this thread generally.

 

[droodzilla]

Macquarie loading Thames Water up with debt and paying it to themselves as divis is classic asset stripping.

And they paid sod all corporation tax while they were doing it.

I see it's going into 'temporary' public administration any day now. I'm guessing there will be an almighty bailout shortly afterwards - no one is going to buy a company that f*cked unless it's billions of debt are written off.

My guess is once it's finances are sorted at our expense it will be sold of for pennies to another bunch of crooks and we start all over again.

Yup. Socialism for wealthy crooks; capitalism at its most feral for the plebs.

 

[paulfromcamden]

WTF were the regulators doing?

Question for Jonson Cox perhaps. I get the feeling the people running the water companies and the people regulating the water companies are BFFs.

If you couched my job as chairman of Ofwat as simply a regulator, then yes it could be dull. But the water industry was in a bit of a meltdown situation in 2012 and several colleagues suggested I applied for the position. In truth, I never thought I’d be appointed – poacher turned gamekeeper. Now I’m using my private sector skills within a monopoly, aiming to simulate competitive market situations and keep this massive industry on its toes.

https://www.jbs.cam.ac.uk/insight/2015/jonson-cox-chairman-of-ofwat/

 

[Ponty]

Question for Jonson Cox perhaps. I get the feeling the people running the water companies and the people regulating the water companies are BFFs.

If you couched my job as chairman of Ofwat as simply a regulator, then yes it could be dull. But the water industry was in a bit of a meltdown situation in 2012 and several colleagues suggested I applied for the position. In truth, I never thought I’d be appointed – poacher turned gamekeeper. Now I’m using my private sector skills within a monopoly, aiming to simulate competitive market situations and keep this massive industry on its toes.

https://www.jbs.cam.ac.uk/insight/2015/jonson-cox-chairman-of-ofwat/

Irrespective of what he did or didn’t do, where’s the corporate governance?

 

[AV8]

I hope United Utilities go the same way as Thames Water hopefully does, by that I mean maybe re-nationalised, not sure what it will all entail at the moment as I have not read too much about the current situation with Thames if they go under, but something needs to be done surely for all of these water companies. United Utilities are an absolute disgrace up here.

 

[kensalriser]

No buyer of a business out of bankruptcy has to assume liabilities, so why would the public purse have to underwrite Thames Water's liabilities? Entities shouldn't have loaned money to a failing enterprise if they weren't prepared to lose it.

 

[Rodrat]

There will be massive backhanders and the tax payer will foot the bill.

 

[ks.234]

There will be massive backhanders and the tax payer will foot the bill.

The ‘taxpayer’ has been footing the bill for privatisation for decades

 

[paulfromcamden]

The ‘taxpayer’ has been footing the bill for privatisation for decades

And the consumer - 20% of your water bill is interest payments on corporate debt.