Water OMG!

It was a fascinating day in Southampton at the Labour Party #NewEconomics conference on Saturday.

What stuck with me the most was being presented with the evidence behind the complete and ongoing rip-off and harm done by the privatisation of water. The pictures below are all from the talk by Dr Kate Baylis (SOAS University of London). I really hope she doesn’t mind – I’m just so cross and worried about this – I need to get it out there!

The amazing ‘denseness’ of the company structures. This web of companies is just one of the water conglomerates – Southern Water. The yellow highlighted company is the only part of the structure that is regulated. 

The fact that these water lords own *all the assets* – every last pipe and tap and pump and filter system. Unlike the railways where at least Network Rail has been kept whole. The debt they have loaded on includes the cost of buying the company in the first place – the amount of actual equity (ie shareholders funds) has dropped.

The water suppliers have a complete monopoly on all the customers in a defined region. They have ‘securitised’ future water bills (ie borrowed against them). So the money we will pay on our bills for water in several years time has already been used up. Does that bode well?

England is out on a limb internationally by having privatised water. Water in the US is 85% publicly owned and managed. When states do privatise they use fixed term management contracts, not give away the infrastructure itself.

So what does our water bill pay for? 26.8% return on capital (dividends to shareholders) and just 3% tax.

And finally, what does all that do to affordability? Guess…

 

The upper line is the average annual water bill. The line below it is average hourly earnings. The crunch date where the lines diverge is 2010. I expect there’s data now for dates beyond 2012 – would be interesting to see it.

Anyway, rant over for now. Vote Labour, get our water back! (not to mention the railways, energy and the rest)

Advertisements
This entry was posted in Just Me, Policy, Thinking. Bookmark the permalink.

One Response to Water OMG!

  1. Voting Labour may seem the right thing to do but is this action or re-action simply another expedience to delay the inevitable. ‘We the masses’ walk (and have always walked), a tightrope between what must be done immediately and what ‘appears’ to serve our self-interests in matters we are ‘indulged’ the ‘appearance’ of a choice over. Don’t vote in a rigged control system. Don’t submit to the ‘language’ and ‘patterns’ of a tyranny that requires only that you comply. Do resist. Do share. Do commune with those who value a spirit of TRUTH awareness. Our compliance and alignment with the bonds that control every aspect of our free-will, are the greatest threat we face today. Allow peaceful, loving, and aware, non-compliance to dwell in your heart. We ARE the people and WE will prevail, if we can SIMPLY allow ourselves to be guided by this PRINCIPAL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s