Anti captalism post

SMASH THE MARKETS! 

I hope that caught your attention 

As I was walking the doggies this morning I was ruminating on the plight of the water utilities here in the UK.

Thatch sold them into private ownership in '80's or '90's. It was not without controversy. In my humble opinion it was not a sound choice. In my eyes the water utilites occupy that hallowed ground currently inhabited by the NHS (just hanging on) and the armed forces. An area where by no government can sit by and let private ownership and "markets" decide what level of service is appropriate etc. Although if we hadn't ditched the Conservatives when we did I believe Wagner mercenaries would soon of been putting boots on the ground in all sorts of places like the Falklands to Northern Ireland. Just think of all the pensions and NI contributions it would save!

I digress

Why shouldn't we have sold off the water companies? Well the water companies provide a solid healthcare function that is the basis of all life in the modern world. Access to clean water and safe disposal of nasty human effluent. It is such a basic human need - just go and search out countries where it is not universally available and see what you get. The provision of sound sanitation is so fundamental to civilisation it cannot be left in the hands of profiteers. At some point there is a compromise to be had. Where does a profit making company decide that profit or lack of outweighs the public need? At what point do they consider a service to be too costly? 

There is nothing to compromise on here. We need safe water. It should not be under discussion. Just get it seen to. 

The argument seemed to be that it is just a service like gas or telephone and a private company will do it better and cheaper so as to make a profit.

The lesson of Thames Water is that, whilst we were all sleeping, these companies got sold to all kinds of hedge and sovereign funds. These companies of which Thames was one, used their customer base as leverage on enormous loans that then could be paid out as dividends to these investors. Whilst the customer bore the brunt and paid the interest. 

This is all Legal and above board. 

The problem is now that Thames Water (All the water companies have to comply but Thames is the one that hit the news) have to comply with new legislation about how waste is treated - the government would like them do have a go at sewage treatment for a bit - Thames cannot use its power of credit to offset the cost because they are already in it up to their necks. So they turned to their customers. Who were told that if you want us to carry out our statutory obligation to treat your sewage you are going to have to pay for it (again as it is included as part of your water charge already) and it is going to cost you dearly because we have got ourselves in hock up to our neck so that we can pay faceless financial types enormous dividends. 

At this point it might be pointed out to me that quite a lot of pension companies are involved in all this and it is helping pay for (Some ) peoples pensions. Does not exclude the fact that these companies have been bled to a point where they cannot use the tools at their disposal (borrowing money) to carry out their work. It has already been spent on people who have provided nothing in return.

Thames Water was ordered by OFWAT or the government to approach their investors and say " Can we have some of that free money back please?" they didn't get an overwhelming response!

So the Thames Water customers are going to end up paying a whole lot more for their essential service because Thames Water was more interested in making a profit for investers than actually doing the job it is supposed to do.

A m vccv xore compelling argument for a return to public ownership I cannot think of.

Public ownership is not a panacea to all the worlds problems. However the decision process is different. As a public service it would concern itself purely with doing its job. It may have to join a lengthy queue for funds and jostle with the likes of His Majesties finest plus the NHS but the outcome would be on the basis of need and not profit. 

The drive for privatisation was a reaction to the industrial relations or lack of from the 1970's. We live in a different world now. The NHS believe it or not gives good value. Not without problems but think of the world without it? 

Water companies could be the same.